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Subsequent Events
6 Months Ended
Jun. 30, 2011
Notes to Financial Statements [Abstract]  
Subsequent Events
(8)  Subsequent Events

On July 29, 2011, the Centers for Medicare and Medicaid Services ("CMS") released its final rule for skilled nursing facilities for the 2012 federal fiscal year, which commences on October 1, 2011.  In the final rule, CMS adjusted Medicare payment rates to correct what it perceives is a lack of parity between RUGs III and RUGs IV.   CMS created the RUGs IV system to be budget neutral, but its analysis of billing data from the first eight months of implementation, October 1, 2010 to May 31, 2011, indicated that the RUGs IV system reimburses at a higher level overall than the RUGs III system.  CMS calculated that the aggregate increase in payments was 12.6%.  After the application of the market basket increase of 2.7% and the productivity adjustment of 1.0%, the net decrease in rates is 11.1%.  The final rule also contains technical changes related to group therapy and Minimum Data Set 3.0 scheduling that may impact the categorization of patients and related payment rates.  CMS has not estimated the impact related to these changes.  We are evaluating the potential net impact of the CMS final rule on our operations (principally the Inpatient Services business) as well as on our financial position, future earnings and corresponding cash flows, which could result in an impairment of our existing goodwill balance.

In addition, we are currently in discussion with the staff of the Securities and Exchange Commission  regarding the determination of our operating segments.  We believe that our determination of our operating segments under GAAP is appropriate. However, it is possible that the outcome of this discussion could require us to change how we define and disclose our operating segments. It is also possible that a change in how we define our operating segments would impact our reporting units which may impact any goodwill impairment testing and potentially result in a noncash goodwill impairment charge of up to $348 million (which represents our entire goodwill balance) on a pre-tax basis. This potential noncash goodwill impairment charge, if any, would not impact our operating cash flows as it is noncash in nature.