SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2014

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.

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. Corporate expenses consist of cost relating to our executive management and corporate and administrative support functions that are not directly attributable to a specific segment. Corporate and administrative support functions represent primarily information services, accounting, finance, billing and collections, legal, compliance, risk management, procurement, marketing, clinical administration, training, human resource benefits and administration. 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 Period Ended September 30, 2014
		Home Health		Hospice		Other		Total
Net service revenue	$	237.2	$	63.1	$	0.0	$	300.3
Cost of service, excluding depreciation and amortization		137.4		32.8		0.0		170.2
General and administrative expenses		63.1		14.1		26.0		103.2
Provision for doubtful accounts		4.1		0.1		0.0		4.2
Depreciation and amortization		2.1		0.5		3.9		6.5
Operating expenses		206.7		47.5		29.9		284.1
Operating income (loss)	$	30.5	$	15.6	$	(29.9)	$	16.2
	For the Three-Month Period Ended September 30, 2013
		Home Health		Hospice		Other		Total
Net service revenue	$	236.8	$	64.5	$	0.0	$	301.3
Cost of service, excluding depreciation and amortization		140.7		34.5		0.0		175.2
General and administrative expenses		74.3		16.1		25.6		116.0
Provision for doubtful accounts		2.7		1.2		0.0		3.9
Depreciation and amortization		2.5		0.5		5.9		8.9
U.S. Department of Justice settlement		0.0		0.0		150.0		150.0
Other intangibles impairment charge		1.5		0.0		0.0		1.5
Operating expenses		221.7		52.3		181.5		455.5
Operating income (loss)	$	15.1	$	12.2	$	(181.5)	$	(154.2)
	For the Nine-Month Period Ended September 30, 2014
		Home Health		Hospice		Other		Total
Net service revenue	$	717.4	$	186.6	$	0.0	$	904.0
Cost of service, excluding depreciation and amortization		420.7		99.0		0.0		519.7
General and administrative expenses		206.4		44.3		86.8		337.5
Provision for doubtful accounts		11.8		1.5		0.0		13.3
Depreciation and amortization		7.0		1.6		13.5		22.1
Other intangibles impairment charge		1.2		1.0		0.0		2.2
Operating expenses		647.1		147.4		100.3		894.8
Operating income (loss)	$	70.3	$	39.2	$	(100.3)	$	9.2
	For the Nine-Month Period Ended September 30, 2013
		Home Health		Hospice		Other		Total
Net service revenue	$	749.3	$	196.5	$	0.0	$	945.8
Cost of service, excluding depreciation and amortization		434.5		104.2		0.0		538.7
General and administrative expenses		230.4		49.2		77.6		357.2
Provision for doubtful accounts		7.6		4.8		0.0		12.4
Depreciation and amortization		7.8		1.6		18.9		28.3
U.S. Department of Justice settlement		0.0		0.0		150.0		150.0
Other intangibles impairment charge		3.8		0.0		0.0		3.8
Operating expenses		684.1		159.8		246.5		1,090.4
Operating income (loss)	$	65.2	$	36.7	$	(246.5)	$	(144.6)