SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2013

Segment Reporting [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 homes 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.

As of September 30, 2013, we classified 28 care centers as held for sale and sold three care centers which are reflected as discontinued operations in accordance with applicable accounting guidance. See Note 3 – Discontinued Operations and Assets Held for Sale for additional information. Prior periods have been reclassified to conform to the current presentation.

Management evaluates performance and allocates resources based on the operating income of the reportable segments, which includes an allocation of corporate expenses directly attributable to the specific segment and 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 (amounts in millions).

	For the Three-Month Periods Ended September 30, 2013
		Home Health		Hospice		Other		Total
Net service revenue	$	237.1	$	64.5	$	0.0	$	301.6
Cost of service, excluding depreciation and amortization		140.9		34.5		0.0		175.4
General and administrative expenses		74.4		16.1		25.5		116.0
Provision for doubtful accounts		2.8		1.2		0.0		4.0
Depreciation and amortization		2.5		0.5		7.5		10.5
U.S. Department of Justice settlement		0.0		0.0		150.0		150.0
Operating expenses		220.6		52.3		183.0		455.9
Operating income (loss)	$	16.5	$	12.2	$	(183.0)	$	(154.3)
	For the Three-Month Periods Ended September 30, 2012
		Home Health		Hospice		Other		Total
Net service revenue	$	290.2	$	74.1	$	0.0	$	364.3
Cost of service, excluding depreciation and amortization		168.9		38.1		0.0		207.0
General and administrative expenses		82.1		18.8		25.8		126.7
Provision for doubtful accounts		4.6		0.9		0.0		5.5
Depreciation and amortization		3.5		0.5		5.8		9.8
Operating expenses		259.1		58.3		31.6		349.0
Operating income (loss)	$	31.1	$	15.8	$	(31.6)	$	15.3
	For the Nine-Month Periods Ended September 30, 2013
		Home Health		Hospice		Other		Total
Net service revenue	$	750.6	$	196.5	$	0.0	$	947.1
Cost of service, excluding depreciation and amortization		435.3		104.2		0.0		539.5
General and administrative expenses		231.0		49.2		77.7		357.9
Provision for doubtful accounts		7.7		4.8		0.0		12.5
Depreciation and amortization		7.8		1.6		22.7		32.1
U.S. Department of Justice settlement		0.0		0.0		150.0		150.0
Operating expenses		681.8		159.8		250.4		1,092.0
Operating income (loss)	$	68.8	$	36.7	$	(250.4)	$	(144.9)
	For the Nine-Month Periods Ended September 30, 2012
		Home Health		Hospice		Other		Total
Net service revenue	$	873.9	$	216.8	$	0.0	$	1,090.7
Cost of service, excluding depreciation and amortization		500.7		112.2		0.0		612.9
General and administrative expenses		249.0		53.2		85.6		387.8
Provision for doubtful accounts		13.4		2.4		0.0		15.8
Depreciation and amortization		10.3		1.1		18.0		29.4
Operating expenses		773.4		168.9		103.6		1,045.9
Operating income (loss)	$	100.5	$	47.9	$	(103.6)	$	44.8