Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

7. SEGMENT INFORMATION

Our operations involve servicing patients through our two reportable business segments: home health and hospice. Our home health segment delivers a wide range of services in the home of individuals who may be recovering from surgery, have a chronic disability or terminal illness or need assistance with the essential activities of daily living. Our hospice segment provides palliative care and comfort to terminally ill patients and their families. The "other" column in the following tables consists of costs relating to corporate support functions that are not directly attributable to a specific segment.

Management evaluates performance and allocates resources based on the operating income of the reportable segments, which exclude corporate expenses, but includes revenues and all other costs directly attributable to the specific segment. Segment assets are not reviewed by the company's chief operating decision maker and therefore are not disclosed below. The following table summarizes our segment information for the periods indicated (amounts in millions):

	For the Three-Month Period Ended September 30,  2011
	Home Health			Hospice		Other			Total
Net service revenue	$	310.4		$	64.5	$	—		$	374.9
Cost of service, excluding depreciation and amortization		170.7			35.0		—			205.7
General and administrative expenses		74.5			12.5		51.0			138.0
Provision for doubtful accounts		4.0			0.6		—			4.6
Depreciation and amortization		3.7			0.2		5.9			9.8
Goodwill and other intangibles impairment charge		574.1			—		—			574.1
Operating expenses		827.0			48.3		56.9			932.2
Operating income (loss)	$	(516.6	)	$	16.2	$	(56.9	)	$	(557.3	)
	For the Three-Month Period Ended September 30, 2010
	Home Health			Hospice		Other			Total
Net service revenue	$	368.5		$	36.2	$	—		$	404.7
Cost of service, excluding depreciation and amortization		186.2			20.1		—			206.3
General and administrative expenses		92.0			9.4		45.8			147.2
Provision for doubtful accounts		5.1			0.2		—			5.3
Depreciation and amortization		3.8			0.2		4.8			8.8
Operating expenses		287.1			29.9		50.6			367.6
Operating income (loss)	$	81.4		$	6.3	$	(50.6	)	$	37.1
	For the Nine-Month Period Ended September 30, 2011
	Home Health			Hospice		Other			Total
Net service revenue	$	962.3		$	150.6	$	—		$	1,112.9
Cost of service, excluding depreciation and amortization		509.1			80.9		—			590.0
General and administrative expenses		224.7			30.3		146.8			401.8
Provision for doubtful accounts		9.4			0.5		—			9.9
Depreciation and amortization		10.7			0.5		17.7			28.9
Goodwill and other intangibles impairment charge		574.1			—		—			574.1
Operating expenses		1,328.0			112.2		164.5			1,604.7
Operating income (loss)	$	(365.7	)	$	38.4	$	(164.5	)	$	(491.8	)
	For the Nine-Month Period Ended September 30, 2010
	Home Health			Hospice		Other			Total
Net service revenue	$	1,137.0		$	103.0	$	—		$	1,240.0
Cost of service, excluding depreciation and amortization		563.9			55.8		—			619.7
General and administrative expenses		269.4			25.1		131.3			425.8
Provision for doubtful accounts		12.9			1.2		—			14.1
Depreciation and amortization		11.3			0.4		13.6			25.3
Operating expenses		857.5			82.5		144.9			1,084.9
Operating income (loss)	$	279.5		$	20.5	$	(144.9	)	$	155.1