Discontinued Operations

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements [Abstract]

Discontinued Operations

(5) Discontinued Operations

The results of operations of assets to be disposed of, disposed assets and the losses related to these divestitures have been classified as discontinued operations for all periods presented in the accompanying consolidated income statements as their operations and cash flows have been (or will be) eliminated from our ongoing operations and we will not have any significant continuing involvement in their operations after their disposal.

During the nine months ended September 30, 2011, we disposed of a Maryland skilled nursing center in our Inpatient Services segment, whose results have been reclassified to discontinued operations for all periods presented in accordance with GAAP.  The disposition, which was effective on August 1, 2011, resulted in cash proceeds to us of $1.8 million, net of the payoff of the $5.2 million mortgage payable for the center.  During August 2011, we also divested two hospice operations in Oklahoma for a nominal price plus the assumption of certain liabilities by the buyer. The disposition resulted in a net loss of $0.7 million, net of related tax benefit.

A summary of the discontinued operations for the periods presented is as follows (in thousands):

			For the Three Months Ended
			September 30, 2011									September 30, 2010
			Inpatient									Inpatient
			Services			Other			Total			Services			Other			Total
Net operating revenues		$	823		$	-		$	823		$	2,865		$	-		$	2,865
Loss from discontinued operations, net (1)		$	(1,029	)	$	(11	)	$	(1,040	)	$	(468	)	$	(9	)	$	(477	)
(1)	Net of related tax benefit of $679 and $307, respectively

			For the Nine Months Ended
			September 30, 2011									September 30, 2010
			Inpatient									Inpatient
			Services			Other			Total			Services			Other			Total
Net operating revenues		$	5,813		$	-		$	5,813		$	8,442		$	-		$	8,442
Loss from discontinued operations, net (1)		$	(1,764	)	$	(30	)	$	(1,794	)	$	(1,674	)	$	(60	)	$	(1,734	)
(1)	Net of related tax benefit of $1,203 and $721, respectively