ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 71-0918189 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Common Stock, par value $0.01 per share | NASDAQ Global Select Market |
(Title of each class) | (Name of each exchange on which registered) |
Large accelerated filer | ¨ | Accelerated filer | ý | Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
PART I. | |||
Cautionary Statement Regarding Forward-Looking Statements | |||
Item 1. | Business | ||
Item 1A. | Risk Factors | ||
Item 1B. | Unresolved Staff Comments | ||
Item 2. | Properties | ||
Item 3. | Legal Proceedings | ||
Item 4. | Mine Safety Disclosures | ||
PART II. | |||
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | ||
Item 6. | Selected Financial Data | ||
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | ||
Item 8. | Financial Statements and Supplementary Data | ||
Item 9. | Changes In and Disagreements with Accountants on Accounting and Financial Disclosure | ||
Item 9A. | Disclosure Controls and Procedures | ||
Item 9B. | Other Matters. | 52 | |
PART III. | |||
Item 10. | Directors, Executive Officers and Corporate Governance | ||
Item 11. | Executive Compensation | ||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | ||
Item 13. | Certain Relationships and Related Transactions, and Director Independence | ||
Item 14. | Principal Accounting Fees and Services | ||
PART IV. | |||
Item 15. | Exhibits, and Financial Statement Schedules | ||
Signatures | |||
Exhibit Index |
PART I |
• | our expectations regarding financial condition or results of operations for periods after December 31, 2015; |
• | our critical accounting policies; |
• | our business strategies and our ability to grow our business; |
• | our participation in the Medicare and Medicaid programs; |
• | the reimbursement levels of Medicare and other third-party payors; |
• | the prompt receipt of payments from Medicare and other third-party payors; |
• | our future sources of and needs for liquidity and capital resources; |
• | the effect of any changes in market rates on our operating and cash flows; |
• | our ability to obtain financing; |
• | our ability to make payments as they become due; |
• | the outcomes of various routine and non-routine governmental reviews, audits and investigations; |
• | our expansion strategy, the successful integration of recent acquisitions and, if necessary, the ability to relocate or restructure our current facilities; |
• | the value of our proprietary technology; |
• | the impact of legal proceedings; |
• | our insurance coverage; |
• | the costs of medical supplies; |
• | our competitors and our competitive advantages; |
• | our ability to attract and retain valuable employees; |
• | the price of our stock; |
• | our compliance with environmental, health and safety laws and regulations; |
• | our compliance with health care laws and regulations; |
• | our compliance with Securities and Exchange Commission laws and regulations and Sarbanes-Oxley requirements; |
• | the impact of federal and state government regulation on our business; and |
• | the impact of changes in or future interpretations of fraud, anti-kickback or other laws. |
Item 1. | Business. |
Year Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Home health services | $ | 613,188 | $ | 564,966 | $ | 523,512 | ||||||
Hospice services | 85,854 | 67,621 | 56,172 | |||||||||
Community-based services | 41,202 | 27,698 | 3,207 | |||||||||
Facility-based services | 76,122 | 73,347 | 75,392 | |||||||||
Consolidated net service revenue | $ | 816,366 | $ | 733,632 | $ | 658,283 |
• | wound care and dressing changes, |
• | cardiac rehabilitation, |
• | infusion therapy, |
• | pain management, |
• | pharmaceutical administration, |
• | skilled observation and assessment, and |
• | patient education. |
Number of license leasing agreements | 2015 Current Monthly Fee | Increase in Monthly Fee | Initial Termination Dates | |||
1 | $18,375 | 5% increase every three years | 2017 with a 2 year automatic renewal | |||
1 | Based on net quarterly projections with an annual cap of $423,000. | None | 2015 with a 1 year automatic renewal | |||
1 | Based on net quarterly projections with an annual cap of $208,000. | None | 2015 with a 1 year automatic renewal |
• | performance improvement audits; |
• | Joint Commission accreditation; |
• | state and regulatory surveys; |
• | publicly reported quality data; and |
• | patient perception of care. |
• | ongoing education of staff and quarterly continuous quality improvement meetings at each of our agencies, facilities and principal executive offices; |
• | monthly comprehensive audits of patient charts performed at each of our agencies and facilities; |
• | at least annually, a comprehensive survey readiness assessment on each of our agencies and facilities; |
• | review of Home Health Compare scores; |
• | assessment of patient’s and/or family member’s perception of care using Press Ganey, SHP and Deyta; and |
• | assessment of infection control practices and risk events. |
• | our Chief Compliance Officer reports to and has direct oversight by the Audit Committee of the Board of Directors; |
• | our compliance department has its own operating budget; and |
• | our compliance department has the authority to independently investigate any compliance or ethical concerns, including, when deemed necessary, the authority to interview any company personnel, access any company property (including electronic communications) and engage counsel to assist in any investigation. |
• | drafting and revising the Company’s policies and procedures related to compliance and ethics issues; |
• | reviewing, making recommended revisions, disseminating and tracking attestations to our Code of Conduct and Ethics; |
• | measuring compliance with our policies and procedures, Code of Conduct and Ethics and legal and regulatory requirements related to the Medicare and Medicaid programs and other government healthcare programs, laws and regulations; |
• | developing and providing compliance-related training and education to all of our employees and, as appropriate, directors, contractors and other representatives and agents, including new-hire compliance training for all new employees, annual compliance training for all employees, sales compliance training to all members of our sales team, billing compliance training to all members of our billing and revenue cycle team and other job-specific and role-based compliance training of certain employees; |
• | performing an annual company-wide risk assessment; |
• | implementing an annual compliance auditing and monitoring work plan and performing and following up on various risk-based auditing and monitoring activities, including both clinical and non-clinical auditing and monitoring activities at the corporate level and at the local agency/facility level; |
• | developing, implementing and overseeing our Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) privacy and security compliance program; |
• | monitoring, responding to and overseeing the resolution of issues and concerns raised through our anonymous compliance hotline; |
• | monitoring, responding to and resolving all compliance and ethics-related issues and concerns raised through any other form of communication; |
• | ensuring that we take appropriate corrective and disciplinary action when noncompliant or improper conduct is identified; and |
• | monitoring, measuring and reporting on the Company’s compliance with its corporate integrity agreement with the Office of Inspector General of the Department of Health and Human Services (“OIG”), including, without limitation, reviewing, revising and distributing the Code of Conduct and Ethics and compliance-related policies and procedures, reviewing revising and distributing all required training, assisting the independent review organization with its review procedures, overseeing the |
• | Routine Care. Care that is not classified under any of the other levels of care, such as the work of nurses, social workers or home health aides. |
• | General Inpatient Care. Pain control or acute or chronic symptom management that cannot be managed in a setting other than an inpatient Medicare certified facility, such as a hospital, skilled nursing facility or hospice inpatient facility. |
• | Continuous Home Care. Care for patients experiencing a medical crisis that requires nursing services to achieve palliation and symptom control, if the agency provides a minimum of eight hours of care within a 24-hour period. |
• | Respite Care. Short-term, inpatient care to give temporary relief to the caregiver who regularly provides care to the patient. |
• | Short Stay Outlier Policy. CMS has established a modified payment methodology for Medicare patients with a length-of-stay less than or equal to five-sixths of the geometric average length-of-stay for that particular MS-LTC-DRG, referred to as a short stay outlier, or “SSO.” When LTACH-PPS was established, SSO cases were paid based on the lesser of (1) 120% of the average cost of the case; (2) 120% of the LTC-DRG specific per diem amount multiplied by the patient’s length-of-stay; or (3) the full LTC-DRG payment. CMS modified the payment methodology for discharges occurring on or after July 1, 2006, which changed the limitation in clause (1) above to reduce payment for SSO cases to 100% (rather than 120%) of the average cost of the case, and also added a fourth limitation, potentially further limiting payment for SSO cases at a per diem rate derived from blending 120% of the MS-LTC-DRG specific per diem amount with a per diem rate based on the general acute care hospital inpatient prospective payment system, or “IPPS”. Under this methodology, as a patient’s length-of-stay increases, the percentage of the per diem amount based upon the IPPS component will decrease and the percentage based on the MS-LTC-DRG component will increase. |
• | High Cost Outliers. Some cases are extraordinarily costly, producing losses that may be too large for healthcare providers to offset. Cases with unusually high costs, referred to as “high cost outliers,” receive a payment adjustment to reflect the additional resources utilized. CMS provides an additional payment if the estimated costs for the patient exceed the adjusted MS-LTC-DRG payment plus a fixed-loss amount that is established in the annual payment rate update. |
• | Interrupted Stays. An interrupted stay occurs when an LTACH patient is admitted upon discharge to a general acute care hospital, inpatient rehab facility (“IRF”), skilled nursing facility or a swing-bed hospital and returns to the same LTACH within a specified period of time. If the length-of-stay at the receiving provider is equal to or less than the applicable fixed period of time, it is considered to be an interrupted stay case and is treated as a single discharge for the purposes of payment to the LTACH. |
• | Medicare and Medicaid participation and reimbursement regulations; |
• | the federal Anti-Kickback Statute and similar state laws; |
• | the federal Stark Law and similar state laws; |
• | false claims laws and regulations; |
• | HIPAA; |
• | laws and regulations imposing civil monetary penalties; |
• | environmental health and safety laws; |
• | licensing laws and regulations; and |
• | laws and regulations governing certificates of need and permits of approval. |
• | for physician services that the person or entity knew or should have known were rendered by a person who was unlicensed, or by a person who misrepresented either their qualifications in obtaining their license, or their certification in a medical specialty; |
• | for services furnished by a person who was, at the time the claim was made, excluded from the program to which the claim was made; or |
• | that show a pattern of medically unnecessary items or services. |
Item 1A. | Risk Factors. |
• | administrative or legislative changes to the base rates under the applicable prospective payment systems; |
• | the reduction or elimination of annual rate increases; |
• | the imposition or increase by Medicare of mechanisms shifting more responsibility for a portion of payment to beneficiaries, such as co-payments; |
• | adjustments to the relative components of the wage index used in determining reimbursement rates; |
• | changes to case mix or therapy thresholds; |
• | the reclassification of home health resource groups or long-term care diagnosis-related groups; or |
• | further limitations on referrals to long-term acute care hospitals from host hospitals. |
• | licensure and certificates of need and permits of approval; |
• | coding and billing for services; |
• | conduct of operations, including financial relationships among health care providers, Medicare fraud and abuse and physician self-referral; |
• | maintenance and protection of records, including HIPAA; |
• | environmental protection, health and safety; |
• | certification of additional agencies or facilities by the Medicare program; and |
• | payment for services. |
• | the investment interest offered is not based upon actual or expected referrals by the hospital or physician; |
• | our joint venture partners are not required to make or influence referrals to the joint venture; |
• | at the time the joint venture is formed, each hospital or physician joint venture partner is required to make an actual capital contribution to the joint venture equal to the fair market value of his or her investment interest and is at risk to lose his or her investment; |
• | neither we nor the joint venture entity lends funds to or guarantees a loan to the hospital or physician to acquire interests in the joint venture; and |
• | distributions to our joint venture partners are based solely on their equity interests and are not affected by referrals from the hospital or physician. |
• | incur more debt; |
• | redeem or repurchase stock, pay dividends or make other distributions; |
• | make certain investments; |
• | create liens; |
• | enter into transactions with affiliates; |
• | make unapproved acquisitions; |
• | merge or consolidate; |
• | transfer or sell assets; and/or |
• | make fundamental changes in our corporate existence and principal business. |
• | adverse changes in our estimates as a result of changes in payor mix and related collection rates; |
• | inability to collect funds due to missed filing deadlines or inability to prove that timely filings were made; |
• | adverse changes in the economy generally exceeding our expectations; or |
• | unanticipated changes in reimbursement from Medicare, Medicaid and private insurance companies. |
• | a staggered Board of Directors; |
• | limitations on persons authorized to call a special meeting of stockholders; |
• | the authorization of undesignated preferred stock, the terms of which may be established and shares of which may be issued without stockholder approval; and |
• | advance notice procedures required for stockholders to nominate candidates for election as directors or to bring matters before an annual meeting of stockholders. |
Item 1B. | Unresolved Staff Comments. |
Item 2. | Properties. |
Home health services | Hospice services | Community-based services | Facility-based services | |||||
Louisiana | 43 | 7 | — | 11 | ||||
Mississippi | 34 | 10 | — | — | ||||
Tennessee | 32 | 2 | 1 | — | ||||
Kentucky | 30 | — | 5 | — | ||||
Alabama | 27 | 6 | — | — | ||||
Arkansas | 19 | 5 | — | — | ||||
West Virginia | 17 | 3 | — | — | ||||
Illinois | 9 | — | — | — | ||||
Maryland | 9 | — | 1 | — | ||||
Texas | 9 | — | — | — | ||||
Washington | 9 | 4 | 1 | — | ||||
Georgia | 8 | 9 | — | — | ||||
Missouri | 6 | 3 | 2 | — | ||||
California | 4 | — | — | — | ||||
Colorado | 4 | — | — | — | ||||
Idaho | 4 | 2 | — | — | ||||
Oregon | 4 | — | — | — | ||||
Virginia | 4 | — | — | — | ||||
Arizona | 2 | — | — | — | ||||
Florida | 2 | — | — | — | ||||
North Carolina | 2 | 1 | 3 | — | ||||
Ohio | 2 | — | — | — | ||||
Rhode Island | 1 | — | — | — | ||||
South Carolina | 1 | 4 | — | — | ||||
Wisconsin | 1 | — | — | — | ||||
283 | 56 | 13 | 11 |
Item 3. | Legal Proceedings. |
Item 4. | Mine Safety Disclosures. |
PART II |
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
High | Low | |||||||
2015 | ||||||||
Fourth Quarter | $ | 49.16 | $ | 42.97 | ||||
Third Quarter | 51.12 | 36.95 | ||||||
Second Quarter | 40.61 | 30.15 | ||||||
First Quarter | 34.40 | 28.88 | ||||||
High | Low | |||||||
2014 | ||||||||
Fourth Quarter | $ | 31.46 | $ | 22.74 | ||||
Third Quarter | 25.77 | 21.30 | ||||||
Second Quarter | 22.30 | 19.90 | ||||||
First Quarter | 24.59 | 21.80 |
Item 6. | Selected Financial Data. |
Year Ended December 31, | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Consolidated Statements of Operations Data: | ||||||||||||||||||||
Net service revenue | $ | 816,366 | $ | 733,632 | $ | 658,283 | $ | 637,569 | $ | 633,872 | ||||||||||
Gross margin | 335,488 | 298,857 | 274,819 | 271,817 | 281,526 | |||||||||||||||
Operating income (loss) | 66,343 | 45,486 | 46,737 | 54,305 | (6,382 | ) | ||||||||||||||
Income (loss) from continuing operations | 41,650 | 28,752 | 29,146 | 35,428 | (3,651 | ) | ||||||||||||||
Net income (loss) available to LHC Group, Inc.’s common stockholders | 32,335 | 21,837 | 22,342 | 27,440 | (13,244 | ) | ||||||||||||||
Net income (loss) attributable to LHC Group Inc.’s common stockholders per basic share: | $ | 1.86 | $ | 1.27 | $ | 1.31 | $ | 1.54 | $ | (0.73 | ) | |||||||||
Net income (loss) attributable to LHC Group Inc.’s common stockholders per diluted share: | $ | 1.84 | $ | 1.26 | $ | 1.30 | $ | 1.53 | $ | (0.73 | ) | |||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 17,405,379 | 17,229,026 | 17,049,794 | 17,853,321 | 18,265,118 | |||||||||||||||
Diluted | 17,547,531 | 17,315,333 | 17,132,751 | 17,899,195 | 18,265,118 | |||||||||||||||
As of December 31, | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Consolidated Balance Sheet Data: | ||||||||||||||||||||
Cash | $ | 6,139 | $ | 531 | $ | 14,014 | $ | 9,720 | $ | 256 | ||||||||||
Total assets | 566,054 | 491,739 | 422,226 | 386,894 | 396,376 | |||||||||||||||
Total debt | 98,784 | 61,008 | 23,212 | 19,500 | 34,820 | |||||||||||||||
Total LHC Group, Inc. stockholders’ equity | 354,582 | 318,639 | 293,009 | 268,181 | 263,683 |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Type of Segment | 2015 | 2014 | 2013 | ||||||
Home health services | 75.1 | % | 77.0 | % | 79.5 | % | |||
Hospice services | 10.5 | 9.2 | 8.5 | ||||||
Community-based services | 5.1 | 3.8 | 0.5 | ||||||
Facility-based services | 9.3 | 10.0 | 11.5 | ||||||
100.0 | % | 100.0 | % | 100.0 | % |
Home Health Agencies | Hospice Agencies | Community -based Agencies | Long-Term Acute Care Hospitals | |||||||||
Total at January 1, 2013 | 233 | 32 | 6 | 9 | ||||||||
Developed | — | — | 1 | — | ||||||||
Acquired | 23 | 2 | — | — | ||||||||
Divested/Merged | — | — | — | — | ||||||||
Total at January 1, 2014 | 256 | 34 | 7 | 9 | ||||||||
Developed | 3 | 1 | — | — | ||||||||
Acquired | 40 | 6 | 6 | — | ||||||||
Divested/Merged | (22 | ) | (3 | ) | (1 | ) | (1 | ) | ||||
Total at January 1, 2015 | 277 | 38 | 12 | 8 | ||||||||
Developed | — | 2 | — | — | ||||||||
Acquired | 9 | 17 | 2 | — | ||||||||
Divested/Merged | (6 | ) | (1 | ) | (1 | ) | — | |||||
Total at December 31, 2015 | 280 | 56 | 13 | 8 |
• | reduced the market basket adjustment to be determined by CMS for each of 2011, 2012 and 2013 by 1%; |
• | instituted a full productivity adjustment beginning in 2015; and |
• | re-based the base payment rate for Medicare beginning in 2014 and phasing in over a four year period. |
• | The national, standardized 60-day episode payment rate increased from $2,869.27 in 2014 to $2,961.38 in 2015. This is a net 3.2% increase in standardized rate, due to application of (1) a wage index budget neutrality factor (+.24%) and (2) a case mix budget neutrality factor (+3.66%) to the 2014 standard rate which is offset by a recalibration of the case mix, then subtracting the rebasing adjustment of -$80.95 (2.82% of 2014 rates), then applying the net market basket adjustment of +2.1% (Market Basket =+2.6%, Productivity Adjustment =-0.5%). |
• | The 2013 Office of Management and Budget ("OMB") core-based statistical area ("CBSA") designations for calculating wage indexes were adopted. The proposed rule updated the HHA wage index using a 50/50 blend of the existing CBSA designations and the new CBSA designations outlined in a February 28, 2013, Office of Management and Budget bulletin, respectively. Nationally, 37 counties shifted from urban to rural and 105 counties shifted from rural to urban. |
• | The face-to-face narrative requirement was eliminated. CMS will only consider medical records from the patient's certifying physician or discharging facility in determining initial eligibility for Medicare's home health benefit. Physician claims for certification/re-certification of eligibility (not the face-to-face encounter visit) will be considered a non-covered service if the HHA claim was non-covered because the patient was ineligible for the home health benefit. |
• | The scheduling and administration of therapy reassessments were modified to every 30 calendar days as opposed to tracking and counting therapy visits, especially for multiple-discipline therapy episodes. |
• | The 3% rural add-on will only apply to counties that are classified as rural under the 2013 CBSA designations. Nationally, 37 counties will shift from urban to rural and pick up the rural add-on, and 105 counties will shift from rural to urban and will lose the rural add-on, but may offset some of that loss by a positive increase in wage index. |
• | CMS also made several minor policy changes, which will not affect reimbursement. |
Description | Rate per patient day | ||
Routine Home Care | $ | 159.34 | |
Continuous Home Care | $ | 929.91 | |
Full Rate = 24 hours of care | |||
$38.75 = hourly rate | |||
Inpatient Respite Care | $ | 164.81 | |
General Inpatient Care | $ | 708.77 |
Description | Rate per patient day | ||
Routine Home Care (October 1, 2015 through December 31, 2015) | $ | 161.89 | |
Routine Home Care days 1-60 (effective January 1, 2016) | $ | 186.84 | |
Routine Home Care days 60+ (effective January 1, 2016) | $ | 146.83 | |
Continuous Home Care | $ | 944.79 | |
Full Rate = 24 hours of care | |||
$39.37 = hourly rate | |||
Inpatient Respite Care | $ | 167.45 | |
General Inpatient Care | $ | 720.11 |
• | Medicare discharges from LTACHs will continue to be paid at full LTACH-PPS rates if |
• | the patient spent at least three days in a short-term care hospital ("STCH") intensive care unit ("ICU") during a STCH stay that immediately preceded the LTACH stay, or |
• | the patient was on a ventilator for more than 96 hours in the LTACH (based on the MS-LTACH DRG assigned) and had a STCH stay immediately preceding the LTACH stay. |
• | Also, the LTACH discharge cannot have a principal diagnosis that is psychiatric or rehabilitation. |
• | All other Medicare discharges from LTACHs will be paid at a new “site neutral” rate, which is the lesser of: |
• | the IPPS comparable per diem amount determined using the formula in the short-stay outlier regulation at 42 C.F.R. § 412.529(d)(4) plus applicable outlier payments, or |
• | 100% of the estimated cost of the services involved. |
• | The above new payment policy will not be effective until LTACH cost reporting periods beginning on or after October 1, 2015, and the site neutral payment rate will be phased-in over two years. |
• | For cost reporting periods beginning on or after October 1, 2015, discharges paid at the site neutral payment rate or by a Medicare Advantage plan (Part C) will be excluded from the LTACH average length-of-stay (“ALOS”) calculation. |
• | For cost reporting periods beginning in fiscal year 2016 and later, CMS will notify LTACHs of their “LTACH discharge payment percentage” (i.e., the number of discharges not paid at the site neutral payment rate divided by the total number of discharges). |
• | For cost reporting periods beginning in fiscal year 2020 and later, LTACHs with less than 50% of their discharges paid at the full LTACH-PPS rates will be switched to payment under the IPPS for all discharges in subsequent cost reporting periods. However, CMS will set up a process for LTACHs to seek reinstatement of LTACH-PPS rates for applicable discharges. |
• | MedPAC will study the impact of the above changes on quality of care, use of hospice and other post-acute care settings, different types of LTACHs and growth in Medicare spending on LTACHs. MedPAC is to submit a report to Congress with any recommendations by June 30, 2019. The report is to also include MedPAC's assessment of whether the 25 Percent rule should continue to be applied. |
• | 25 Percent rule relief for freestanding LTACHs, HWHs and satellite facilities will be extended without interruption for cost reporting periods beginning on or after December 29, 2007. The 25 Percent rule is scheduled to become effective: (i) for freestanding LTACHs for cost reporting periods beginning on or after July 1, 2016, and (ii) for HWHs and satellite facilities for cost reporting periods beginning on or after October 1, 2016. Grandfathered HWHs will be permanently exempt from the 25 Percent rule. CMS must report to Congress by December 18, 2015 on whether the 25 Percent rule should continue to be applied. |
• | The moratorium on new LTACH facilities and increases in LTACH beds will be renewed for the period from April 1, 2014 to September 30, 2017. Although the introductory language only refers to a moratorium extension for LTACH bed increases, the amendment to the Medicare, Medicaid, and SCHIP Extension Act ("MMSEA") would extend both moratoriums. No exceptions will apply during this extension of the moratoriums. The original rule renewed the moratorium for the period beginning January 1, 2015; however, a provision with HR4302 accelerated the moratorium period beginning on April 1, 2014. |
• | Not later than October 1, 2015, CMS will establish a new functional status quality measure for change in mobility of ventilator patients. |
• | As part of the fiscal year 2015 or 2016 rulemaking, CMS is to study payment rates and regulations that apply to the special category of neoplastic disease LTACHs and may adjust such payment rates. |
Three Months Ended March 31, 2015 | Three Months Ended June 30, 2015 | Three Months Ended September 30, 2015 | Three Months Ended December 31, 2015 | |||||||||
Home Health Services: | ||||||||||||
Average census | 36,450 | 36,834 | 36,858 | 37,060 | ||||||||
Average Medicare census | 27,235 | 27,336 | 27,278 | 27,432 | ||||||||
Admissions | 35,965 | 35,211 | 35,772 | 36,249 | ||||||||
Medicare admissions | 24,875 | 23,862 | 24,114 | 24,060 | ||||||||
Hospice Services: | ||||||||||||
Average census | 1,357 | 1,446 | 1,528 | 2,360 | ||||||||
Average Medicare census | 1,256 | 1,328 | 1,411 | 2,205 | ||||||||
Admissions | 1,481 | 1,497 | 1,584 | 2,225 | ||||||||
Medicare admissions | 1,285 | 1,316 | 1,379 | 1,935 | ||||||||
Patient days | 122,179 | 131,565 | 140,592 | 217,157 | ||||||||
Community-based Services: | ||||||||||||
Billable hours | 294,016 | 316,598 | 318,995 | 307,781 | ||||||||
LTACHs: | ||||||||||||
Patient days | 16,162 | 15,393 | 15,422 | 14,450 | ||||||||
Three Months Ended March 31, 2014 | Three Months Ended June 30, 2014 | Three Months Ended September 30, 2014 | Three Months Ended December 31, 2014 | |||||||||
Home Health Services: | ||||||||||||
Average census | 32,988 | 36,450 | 35,974 | 36,153 | ||||||||
Average Medicare census | 24,938 | 27,080 | 26,615 | 26,781 | ||||||||
Admissions | 30,913 | 33,850 | 33,962 | 34,329 | ||||||||
Medicare admissions | 21,141 | 22,975 | 22,970 | 23,404 | ||||||||
Hospice Services: | ||||||||||||
Average census | 1,223 | 1,371 | 1,389 | 1,387 | ||||||||
Average Medicare census | 1,124 | 1,259 | 1,271 | 1,282 | ||||||||
Admissions | 1,232 | 1,426 | 1,476 | 1,412 | ||||||||
Medicare admissions | 1,065 | 1,267 | 1,272 | 1,252 | ||||||||
Patient days | 110,043 | 124,744 | 127,832 | 127,633 | ||||||||
Community-based Services: | ||||||||||||
Billable hours | 41,064 | 274,234 | 291,301 | 304,618 | ||||||||
LTACHs: | ||||||||||||
Patient days | 16,462 | 14,939 | 15,362 | 15,589 |
Year Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Consolidated Services Data: | ||||||||||||
Net service revenue | $ | 816,366 | $ | 733,632 | $ | 658,283 | ||||||
Cost of service revenue | 480,878 | 434,775 | 383,464 | |||||||||
Gross margin | 335,488 | 298,857 | 274,819 | |||||||||
Provision for bad debts | 19,243 | 15,780 | 13,929 | |||||||||
General and administrative expenses | 248,629 | 233,945 | 213,633 | |||||||||
Impairment of intangibles and other | 1,273 | 3,646 | 520 | |||||||||
Operating income | 66,343 | 45,486 | 46,737 | |||||||||
Interest expense | (2,302 | ) | (2,486 | ) | (1,995 | ) |
Non-operating income | 457 | 265 | 263 | |||||||||
Income tax expense | 22,848 | 14,513 | 15,859 | |||||||||
Income attributable to noncontrolling interests | 9,315 | 6,915 | 6,804 | |||||||||
Net income available to LHC Group, Inc.’s common stockholders. | $ | 32,335 | $ | 21,837 | $ | 22,342 |
Year Ended December 31, | |||||||||
2015 | 2014 | 2013 | |||||||
Consolidated Services Data: | |||||||||
Cost of service revenue | 58.9 | % | 59.3 | % | 58.3 | % | |||
Gross margin | 41.1 | 40.7 | 41.7 | ||||||
Provision for bad debts | 2.4 | 2.2 | 2.1 | ||||||
General and administrative expenses | 30.5 | 31.9 | 32.5 | ||||||
Impairment of intangibles and other | 0.2 | 0.5 | 0.1 | ||||||
Operating income | 8.1 | 6.2 | 7.1 | ||||||
Interest expense | (0.3 | ) | (0.3 | ) | (0.3 | ) | |||
Non-operating income | 0.1 | — | — | ||||||
Income tax expense | 41.4 | 39.9 | 41.5 | ||||||
Income attributable to noncontrolling interests | 1.1 | 0.9 | 1.0 | ||||||
Net income attributable to LHC Group, Inc.’s common stockholders | 4.0 | 3.0 | 3.4 |
Type of Segment | 2015 | 2014 | ||||
Home health services | 75.1 | % | 77.0 | % | ||
Hospice services | 10.5 | 9.2 | ||||
Community-based services | 5.1 | 3.8 | ||||
Facility-based services | 9.3 | 10.0 | ||||
100.0 | % | 100.0 | % |
Same Store (1) | De Novo (2) | Organic (3) | Organic Growth (Loss)% | Acquired (4) | Total | Total Growth (Loss) % | |||||||||||||
Home Health Services | |||||||||||||||||||
Revenue | $ | 588,003 | $ | 2,105 | $ | 590,108 | 4.5 | % | $ | 23,080 | $ | 613,188 | 8.5 | % |
Revenue Medicare | $ | 452,136 | 1,542 | $ | 453,678 | 3.5 | 19,515 | $ | 473,193 | 7.9 | |||||||||
New admissions | 137,041 | 507 | 137,548 | 3.4 | 5,649 | 143,197 | 7.6 | ||||||||||||
New Medicare admissions | 92,290 | 339 | 92,629 | 2.4 | 4,282 | 96,911 | 7.1 | ||||||||||||
Average census | 35,216 | 132 | 35,348 | 0.1 | 1,404 | 36,752 | 4.1 | ||||||||||||
Average Medicare census | 26,114 | 92 | 26,206 | (0.5 | ) | 1,091 | 27,297 | 3.6 | |||||||||||
Home health episodes | 184,774 | 610 | 185,384 | 1.4 | 5,824 | 191,208 | 4.5 | ||||||||||||
Hospice Services | |||||||||||||||||||
Revenue | $ | 71,620 | $ | 1,809 | $ | 73,429 | 8.6 | $ | 12,425 | $ | 85,854 | 27.1 | |||||||
Revenue Medicare | $ | 66,378 | 1,783 | $ | 68,161 | 9.0 | 11,685 | $ | 79,846 | 27.8 | |||||||||
New admissions | 5,952 | 46 | 5,998 | 8.2 | 789 | 6,787 | 22.4 | ||||||||||||
New Medicare admissions | 5,191 | 45 | 5,236 | 7.8 | 679 | 5,915 | 21.8 | ||||||||||||
Average census | 1,284 | 34 | 1,318 | (1.9 | ) | 357 | 1,675 | 24.7 | |||||||||||
Average Medicare census | 1,184 | 33 | 1,217 | (1.5 | ) | 336 | 1,553 | 25.8 | |||||||||||
Patient days | 514,496 | 12,440 | 526,936 | 7.5 | 84,557 | 611,493 | 24.7 | ||||||||||||
Community-based Services | |||||||||||||||||||
Revenue | $ | 31,797 | $ | 180 | $ | 31,977 | 15.4 | % | $ | 9,225 | $ | 41,202 | 48.8 | % | |||||
Billable hours | 947,395 | 5,844 | 953,239 | 4.6 | % | 260,630 | 1,213,869 | 33.2 | % | ||||||||||
Facility-Based Services | |||||||||||||||||||
LTACHs | |||||||||||||||||||
Revenue | $ | 72,668 | $ | — | $ | 72,668 | — | $ | — | $ | 72,668 | 3.2 | % | ||||||
Patient days | 61,427 | — | 61,427 | — | — | 61,427 | (1.5 | ) |
2015 | 2014 | ||||||||||
Home health services | |||||||||||
Salaries, wages and benefits | $ | 320,548 | 52.3 | % | $ | 295,340 | 52.3 | % | |||
Transportation | 21,056 | 3.4 | 21,463 | 3.8 | |||||||
Supplies and services | 13,146 | 2.1 | 13,053 | 2.3 | |||||||
Total | $ | 354,750 | 57.9 | % | $ | 329,856 | 58.4 | % | |||
Hospice services | |||||||||||
Salaries, wages and benefits | $ | 35,022 | 40.8 | % | $ | 27,263 | 40.3 | % | |||
Transportation | 3,638 | 4.2 | 3,027 | 4.5 | |||||||
Supplies and services | 12,246 | 14.3 | 9,514 | 14.1 | |||||||
Total | $ | 50,906 | 59.3 | % | $ | 39,804 | 58.9 | % |
Community-based services | |||||||||||
Salaries, wages and benefits | 28,525 | 69.2 | % | $ | 19,287 | 69.63 | % | ||||
Transportation | 263 | 0.6 | 170 | 0.61 | |||||||
Supplies and services | 288 | 0.7 | 154 | 0.56 | |||||||
Total | $ | 29,076 | 70.5 | % | $ | 19,611 | 70.8 | % | |||
Facility-based services | |||||||||||
Salaries, wages and benefits | $ | 29,898 | 39.3 | % | $ | 30,047 | 41.0 | % | |||
Transportation | 240 | 0.3 | 281 | 0.4 | |||||||
Supplies and services | 16,008 | 21.0 | 15,176 | 20.1 | |||||||
Total | $ | 46,146 | 60.6 | % | $ | 45,504 | 62.0 | % |
2015 | 2014 | ||||||||||
Home health services | |||||||||||
General and administrative | $ | 182,651 | 29.8 | % | $ | 180,364 | 31.9 | % | |||
Depreciation and amortization | 8,484 | 1.4 | 6,917 | 1.2 | |||||||
Total | $ | 191,135 | 31.2 | % | $ | 187,281 | 33.1 | % | |||
Hospice services | |||||||||||
General and administrative | $ | 24,973 | 29.1 | % | $ | 17,796 | 26.3 | % | |||
Depreciation and amortization | 1,544 | 1.8 | 1,086 | 1.6 | |||||||
Total | $ | 26,517 | 30.9 | % | $ | 18,882 | 27.9 | % | |||
Community-based services | |||||||||||
General and administrative | $ | 8,350 | 20.3 | % | $ | 6,445 | 23.3 | % | |||
Depreciation | 156 | 0.4 | 106 | 0.4 | |||||||
Total | $ | 8,506 | 20.7 | % | $ | 6,551 | 23.7 | % | |||
Facility-based services | |||||||||||
General and administrative | $ | 20,702 | 27.2 | % | $ | 19,769 | 27.0 | % | |||
Depreciation and amortization | 1,769 | 2.3 | 1,462 | 2.0 | |||||||
Total | $ | 22,471 | 29.5 | % | $ | 21,231 | 28.9 | % |
Type of Segment | 2014 | 2013 | ||||
Home health services | 77.0 | % | 79.5 | % | ||
Hospice services | 9.2 | 8.5 | ||||
Community-based services | 3.8 | 0.5 | ||||
Facility-based services | 10.0 | 11.5 | ||||
100.0 | % | 100.0 | % |
Same Store (1) | De Novo (2) | Organic (3) | Organic Growth (Loss)% | Acquired (4) | Total | Total Growth (Loss) % | |||||||||||||
Home health services | |||||||||||||||||||
Revenue | $ | 530,640 | $ | — | $ | 530,640 | 1.4 | % | $ | 34,404 | $ | 565,044 | 7.9 | % | |||||
Revenue Medicare | $ | 412,544 | — | $ | 412,544 | (0.4 | ) | $ | 25,940 | $ | 438,484 | 5.9 | |||||||
New admissions | 123,659 | — | 123,659 | 1.6 | 9,395 | 133,054 | 9.3 | ||||||||||||
New Medicare admissions | 84,489 | — | 84,489 | 1.2 | 6,001 | 90,490 | 8.4 |
Average census | 32,891 | — | 32,891 | (3.5 | ) | 2,408 | 35,299 | 3.6 | |||||||||||
Average Medicare census | 24,774 | — | 24,774 | (4.1 | ) | 1,562 | 26,336 | 1.9 | |||||||||||
Episodes | 172,472 | 172,472 | 0.9 | 10,424 | 182,896 | 7.0 | |||||||||||||
Hospice services | |||||||||||||||||||
Revenue | $ | 63,502 | $ | — | $ | 63,502 | 13.1 | $ | 4,119 | $ | 67,621 | 20.4 | |||||||
Revenue Medicare | $ | 58,687 | — | $ | 58,687 | 12.7 | $ | 3,841 | $ | 62,528 | 20.1 | ||||||||
New admissions | 5,159 | — | 5,159 | 4.9 | 387 | 5,546 | 12.8 | ||||||||||||
New Medicare admissions | 4,506 | — | 4,506 | 6.8 | 350 | 4,856 | 15.1 | ||||||||||||
Average census | 1,262 | — | 1,262 | 10.5 | 81 | 1,343 | 17.5 | ||||||||||||
Average Medicare census | 1,158 | — | 1,158 | 11.0 | 77 | 1,235 | 18.3 | ||||||||||||
Patient days | 460,798 | — | 460,798 | 10.5 | 29,454 | 490,252 | 17.5 | ||||||||||||
Community-based services | |||||||||||||||||||
Revenue | $ | 3,902 | $ | 273 | 4,175 | 30.2 | $ | 23,523 | 27,698 | 763.7 | |||||||||
Billable hours | 910,964 | 34 | 910,998 | 493.3 | 219 | 911,217 | 493.4 | ||||||||||||
Facility-based services | |||||||||||||||||||
LTACHs | |||||||||||||||||||
Revenue | $ | 70,442 | $ | — | $ | 70,442 | (2.0 | ) | $ | 70,442 | (2.0 | ) | |||||||
Patient days | 62,352 | — | 62,352 | 0.8 | — | 62,352 | 0.8 |
2014 | 2013 | ||||||||||
Home health services | |||||||||||
Salaries, wages and benefits | $ | 295,340 | 52.3 | % | $ | 269,016 | 51.4 | % | |||
Transportation | 21,463 | 3.8 | 21,443 | 4.1 | |||||||
Supplies and services | 13,053 | 2.3 | 12,130 | 2.3 | |||||||
Total | $ | 329,856 | 58.4 | % | $ | 302,589 | 57.8 | % | |||
Hospice services | |||||||||||
Salaries, wages and benefits | $ | 27,263 | 40.3 | % | $ | 23,512 | 41.9 | % | |||
Transportation | 3,027 | 4.5 | 2,745 | 4.9 | |||||||
Supplies and services | 9,514 | 14.1 | 7,955 | 14.1 | |||||||
Total | $ | 39,804 | 58.9 | % | $ | 34,212 | 60.9 | % | |||
Community-based services | |||||||||||
Salaries, wages and benefits | $ | 19,287 | 69.6 | % | $ | 2,339 | 72.9 | % | |||
Transportation | 170 | 0.6 | 39 | 1.2 | |||||||
Supplies and services | 154 | 0.6 | 20 | 0.6 |
Total | $ | 19,611 | 70.8 | % | $ | 2,398 | 74.7 | % | |||
Facility-based services | |||||||||||
Salaries, wages and benefits | $ | 30,047 | 41.0 | % | $ | 28,772 | 38.2 | % | |||
Transportation | 281 | 0.4 | 301 | 0.4 | |||||||
Supplies and services | 15,176 | 20.1 | 15,192 | 20.2 | |||||||
Total | $ | 45,504 | 62.0 | % | $ | 44,265 | 58.7 | % |
2014 | 2013 | ||||||||||
Home health services | |||||||||||
General and administrative | $ | 180,364 | 31.9 | % | $ | 168,881 | 32.3 | % | |||
Depreciation and amortization | 6,917 | 1.2 | 6,175 | 1.2 | |||||||
Total | $ | 187,281 | 33.1 | % | $ | 175,056 | 33.4 | % | |||
Hospice services | |||||||||||
General and administrative | $ | 17,796 | 26.3 | % | $ | 15,335 | 27.3 | % | |||
Depreciation and amortization | 1,086 | 1.6 | 875 | 1.6 | |||||||
Total | $ | 18,882 | 27.9 | % | $ | 16,210 | 28.9 | % | |||
Community-based services | |||||||||||
General and administrative | $ | 6,445 | 23.3 | % | $ | 972 | 30.3 | % | |||
Depreciation and amortization | 106 | 0.4 | 46 | 1.4 | |||||||
Total | $ | 6,551 | 23.7 | % | $ | 1,018 | 31.7 | % | |||
Facility-based services | |||||||||||
General and administrative | $ | 19,769 | 27.0 | % | $ | 20,121 | 26.7 | % | |||
Depreciation and amortization | 1,462 | 2.0 | 1,228 | 1.6 | |||||||
Total | $ | 21,231 | 28.9 | % | $ | 21,349 | 28.3 | % |
• | Operating Results – Our net income has a significant effect on our operating cash flows. Any significant increase or decrease in our net income could have a material effect on our operating cash flows. |
• | Timing of Acquisitions – We use a portion of our operating and/or financing cash flows for acquisitions. When the acquisitions occur at or near the end of a period, our cash outflows significantly increase. |
• | Timing of Payroll – Our employees are paid bi-weekly on Fridays. Operating cash flows decline in reporting periods that end on a Friday. |
• | Self Insurance Plan Funding – We are self-funded for health insurance and workers compensation insurance. Any significant changes in the amount of insurance claims submitted could have a direct effect on our operating cash flows. |
Year Ended December 31, | ||||||||
2015 | 2014 | |||||||
Net cash provided by (used in): | ||||||||
Operating activities | $ | 59,934 | $ | 38,657 | ||||
Investing activities | (83,855 | ) | (82,038 | ) | ||||
Financing activities | 29,529 | 29,898 |
Leverage Ratio | Eurodollar Margin | Base Rate Margin | Commitment Fee Rate | ||||||
≤ 1.00:1.00 | 1.75 | % | 0.75 | % | 0.225 | % | |||
>1.00:1.00 ≤ 1.50:100 | 2.00 | % | 1.00 | % | 0.250 | % | |||
>1.50:1.00 ≤ 2.00:1.00 | 2.25 | % | 1.25 | % | 0.300 | % | |||
>2.00:1.00 | 2.50 | % | 1.50 | % | 0.375 | % |
Payment Due by Period | ||||||||||||||||||||
Contractual Cash Obligation | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||||||
Long-term debt | $ | 98,784 | $ | 241 | $ | 516 | $ | 98,027 | $ | — | ||||||||||
Operating leases | 55,232 | 25,207 | 17,832 | 6,661 | 5,532 | |||||||||||||||
Total contractual cash obligations | $ | 154,016 | $ | 25,448 | $ | 18,348 | $ | 104,688 | $ | 5,532 |
Ownership type | 2015 | 2014 | 2013 | ||||||
Wholly owned subsidiaries | 55.2 | % | 53.5 | % | 48.8 | % | |||
Equity joint ventures | 42.9 | 43.9 | 48.5 | ||||||
License leasing arrangements | 1.0 | 1.8 | 1.9 | ||||||
Management services | 0.9 | 0.8 | 0.8 | ||||||
100.0 | % | 100.0 | % | 100.0 | % |
Payor | 2015 | 2014 | 2013 | ||||||
Medicare | 74.5 | % | 75.9 | % | 79.8 | % | |||
Medicaid | 1.5 | 1.4 | 1.4 |
Other | 24.0 | 22.7 | 18.8 | ||||||
100.0 | % | 100.0 | % | 100.0 | % |
Type of segment | 2015 | 2014 | 2013 | ||||||
Home health services | 75.1 | % | 77.0 | % | 79.5 | % | |||
Hospice services | 10.5 | 9.2 | 8.5 | ||||||
Community-based services | 5.1 | 3.8 | 0.5 | ||||||
Facility-based services | 9.3 | 10.0 | 11.5 | ||||||
100.0 | % | 100.0 | % | 100.0 | % |
Payor | 0-90 | 91-180 | 181-365 | Over 365 | Total | |||||||||||||||
Medicare | $ | 65,910 | $ | 8,244 | $ | 4,971 | $ | 4,960 | $ | 84,085 | ||||||||||
Medicaid | 2,994 | 1,033 | 903 | 561 | 5,491 | |||||||||||||||
Other | 26,794 | 7,248 | 7,699 | 5,745 | 47,486 | |||||||||||||||
Total | $ | 95,698 | $ | 16,525 | $ | 13,573 | $ | 11,266 | $ | 137,062 |
Payor | 0-90 | 91-180 | 181-365 | Over 365 | Total | |||||||||||||||
Medicare | $ | 51,919 | $ | 7,945 | $ | 6,142 | $ | 2,131 | $ | 68,137 | ||||||||||
Medicaid | 2,039 | 761 | 666 | 250 | 3,716 | |||||||||||||||
Other | 27,375 | 6,253 | 6,164 | 4,435 | 44,227 | |||||||||||||||
Total | $ | 81,333 | $ | 14,959 | $ | 12,972 | $ | 6,816 | $ | 116,080 |
Beginning of Year Balance | Additions | Deductions | End of Year Balance | |||||||||||||
Year ended December 31: | ||||||||||||||||
2015 | $ | 18,582 | $ | 19,243 | $ | 11,113 | $ | 26,712 | ||||||||
2014 | 14,334 | 15,780 | 11,532 | 18,582 | ||||||||||||
2013 | 11,863 | 13,929 | 11,458 | 14,334 |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 8. | Financial Statements and Supplementary Data. |
Item 9. | Changes In and Disagreements with Accountants on Accounting and Financial Disclosure. |
Item 9A. | Disclosure Controls and Procedures. |
Item 9B. | Other Matters. |
PART III |
Item 10. | Directors, Executive Officers and Corporate Governance. |
Item 11. | Executive Compensation. |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
(a) | (b) | (c) | ||||||||
Plan Category | Number of Shares to be Issued Upon Exercise of Outstanding Options, Warrants, and Rights | Weighted-Average Exercise Price of Outstanding Price of Outstanding Rights | Number of Shares Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column a) | |||||||
Equity compensation plans approved by Stockholders: | 5,500 | $ | 20.09 | 704,797 | ||||||
Equity compensation plans not approved by Stockholders: | — | — | — | |||||||
Total | 5,500 | $ | 20.09 | 704,797 |
Item 13. | Certain Relationships and Related Transactions, and Director Independence. |
Item 14. | Principal Accounting Fees and Services. |
PART IV |
Item 15. | Exhibits, Financial Statement Schedules. |
Report of Independent Registered Public Accounting Firm | F-1 |
Consolidated Balance Sheets as of December 31, 2015 and 2014 | F-2 |
For each of the years in the three-year period ended December 31, 2015 | |
Consolidated Statements of Income | F-3 |
Consolidated Statements of Changes in Equity | F-4 |
Consolidated Statements of Cash Flows | F-5 |
Notes to the Consolidated Financial Statements | F-6 |
As of December 31, | ||||||||
2015 | 2014 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 6,139 | $ | 531 | ||||
Receivables: | ||||||||
Patient accounts receivable, less allowance for uncollectible accounts of $26,712 and $18,582, respectively | 110,350 | 97,498 | ||||||
Other receivables | 2,093 | 1,334 | ||||||
Amounts due from governmental entities | 1,081 | 1,164 | ||||||
Total receivables, net | 113,524 | 99,996 | ||||||
Deferred income taxes | — | 11,381 | ||||||
Prepaid income taxes | 1,949 | 3,093 | ||||||
Prepaid expenses | 10,833 | 8,724 | ||||||
Other current assets | 5,835 | 3,777 | ||||||
Receivable due from insurance carrier | 550 | 7,850 | ||||||
Total current assets | 138,830 | 135,352 | ||||||
Property, building and equipment, net of accumulated depreciation of $38,907 and $44,683, respectively | 38,096 | 34,787 | ||||||
Goodwill | 290,694 | 240,019 | ||||||
Intangible assets, net of accumulated amortization of $8,496 and $6,560, respectively | 96,405 | 79,685 | ||||||
Other assets | 2,029 | 1,896 | ||||||
Total assets | $ | 566,054 | $ | 491,739 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and other accrued liabilities | $ | 24,586 | $ | 19,278 | ||||
Salaries, wages and benefits payable | 28,098 | 22,466 | ||||||
Self insurance reserves | 9,636 | 6,559 | ||||||
Current portion of long-term debt | 241 | 230 | ||||||
Amounts due to governmental entities | 7,055 | 4,459 | ||||||
Legal settlement payable | 550 | 7,850 | ||||||
Total current liabilities | 70,166 | 60,842 | ||||||
Deferred income taxes | 23,729 | 33,592 | ||||||
Income tax payable | 3,415 | 3,415 | ||||||
Revolving credit facility | 98,000 | 60,000 | ||||||
Long-term debt, less current portion | 543 | 778 | ||||||
Total liabilities | 195,853 | 158,627 | ||||||
Noncontrolling interest-redeemable | 12,408 | 11,517 | ||||||
Stockholders’ equity: | ||||||||
LHC Group, Inc. stockholders’ equity: | ||||||||
Common stock – $0.01 par value: 40,000,000 shares authorized; 22,224,423 and 22,015,211 shares issued in 2015 and 2014, respectively | 222 | 220 | ||||||
Treasury stock – 4,776,560 and 4,734,363 shares at cost, respectively | (37,139 | ) | (35,660 | ) | ||||
Additional paid-in capital | 113,793 | 108,708 | ||||||
Retained earnings | 277,706 | 245,371 | ||||||
Total LHC Group, Inc. stockholders’ equity | 354,582 | 318,639 | ||||||
Noncontrolling interest – non-redeemable | 3,211 | 2,956 | ||||||
Total stockholders’ equity | 357,793 | 321,595 | ||||||
Total liabilities and stockholders’ equity | $ | 566,054 | $ | 491,739 |
For the year ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Net service revenue | $ | 816,366 | $ | 733,632 | $ | 658,283 | ||||||
Cost of service revenue | 480,878 | 434,775 | 383,464 | |||||||||
Gross margin | 335,488 | 298,857 | 274,819 | |||||||||
Provision for bad debts | 19,243 | 15,780 | 13,929 | |||||||||
General and administrative expenses | 248,629 | 233,945 | 213,633 | |||||||||
Impairment of intangibles and other | 1,273 | 3,646 | 520 | |||||||||
Operating income | 66,343 | 45,486 | 46,737 | |||||||||
Interest expense | (2,302 | ) | (2,486 | ) | (1,995 | ) | ||||||
Non-operating income | 457 | 265 | 263 | |||||||||
Income from continuing operations before income taxes and noncontrolling interests | 64,498 | 43,265 | 45,005 | |||||||||
Income tax expense | 22,848 | 14,513 | 15,859 | |||||||||
Income from continuing operations | 41,650 | 28,752 | 29,146 | |||||||||
Less net income attributable to noncontrolling interests | 9,315 | 6,915 | 6,804 | |||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 32,335 | $ | 21,837 | $ | 22,342 | ||||||
Earnings per share - basic: | ||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 1.86 | $ | 1.27 | $ | 1.31 | ||||||
Earnings per share - diluted: | ||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 1.84 | $ | 1.26 | $ | 1.30 | ||||||
Weighted average shares outstanding: | ||||||||||||
Basic | 17,405,379 | 17,229,026 | 17,049,794 | |||||||||
Diluted | 17,547,531 | 17,315,333 | 17,132,751 |
LHC Group, Inc. | Noncontrolling interest -non- redeemable | Total equity | Non controlling interest - redeemable | Net income | ||||||||||||||||||||||||||||||||
Common Stock | Additional paid-in capital | Retained earnings | ||||||||||||||||||||||||||||||||||
Issued | Treasury | |||||||||||||||||||||||||||||||||||
Amount | Shares | Amount | Shares | |||||||||||||||||||||||||||||||||
Balances at December 31, 2012 | $ | 216 | 21,578,772 | (33,846 | ) | 4,653,039 | $ | 100,619 | $ | 201,192 | $ | 4,033 | $ | 272,214 | $ | 11,426 | ||||||||||||||||||||
Net income | — | — | — | — | — | 22,342 | 1,244 | 23,586 | 5,560 | 29,146 | ||||||||||||||||||||||||||
Transfer of noncontrolling interest | (1,342 | ) | (1,342 | ) | 1,342 | |||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | — | — | 608 | |||||||||||||||||||||||||||
Noncontrolling interest distributions | — | — | — | — | — | — | (1,060 | ) | (1,060 | ) | (7,066 | ) | ||||||||||||||||||||||||
Purchase of additional controlling interest | — | — | — | — | (1,267 | ) | — | — | (1,267 | ) | (612 | ) | ||||||||||||||||||||||||
Nonvested stock compensation | — | — | — | — | 3,886 | — | — | 3,886 | — | |||||||||||||||||||||||||||
Issuance of vested stock | — | 184,403 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Treasury shares redeemed to pay income tax | — | — | (869 | ) | 40,608 | — | — | — | (869 | ) | — | |||||||||||||||||||||||||
Excess tax benefits-vesting nonvested stock | — | — | — | — | (50 | ) | — | — | (50 | ) | — | |||||||||||||||||||||||||
Issuance of common stock under Employee Stock Purchase Plan | 2 | 38,459 | — | — | 784 | — | — | 786 | — | |||||||||||||||||||||||||||
Balances at December 31, 2013 | $ | 218 | 21,801,634 | $ | (34,715 | ) | 4,693,647 | $ | 103,972 | $ | 223,534 | $ | 2,875 | $ | 295,884 | $ | 11,258 | |||||||||||||||||||
Net income | — | — | — | — | — | 21,837 | 1,214 | 23,051 | 5,701 | 28,752 | ||||||||||||||||||||||||||
Acquired noncontrolling interest | — | — | — | — | — | — | 138 | 138 | 130 | |||||||||||||||||||||||||||
Sale of noncontrolling interest | — | — | — | — | 161 | 161 | ||||||||||||||||||||||||||||||
Noncontrolling interest distributions | — | — | — | — | — | — | (1,271 | ) | (1,271 | ) | (5,572 | ) | ||||||||||||||||||||||||
Purchase of additional controlling interest | — | — | — | — | (359 | ) | — | — | (359 | ) | — | |||||||||||||||||||||||||
Nonvested stock compensation | — | — | — | — | 4,094 | — | — | 4,094 | — | |||||||||||||||||||||||||||
Issuance of vested stock | — | 177,272 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Treasury shares redeemed to pay income tax | — | — | (945 | ) | 40,716 | — | — | — | (945 | ) | — | |||||||||||||||||||||||||
Excess tax benefits-vesting nonvested stock | — | — | — | — | 60 | — | — | 60 | — | |||||||||||||||||||||||||||
Issuance of common stock under Employee Stock Purchase Plan | 2 | 36,305 | — | — | 780 | — | — | 782 | — | |||||||||||||||||||||||||||
Balances at December 31, 2014 | $ | 220 | 22,015,211 | $ | (35,660 | ) | 4,734,363 | $ | 108,708 | $ | 245,371 | $ | 2,956 | $ | 321,595 | $ | 11,517 | |||||||||||||||||||
Net income | — | — | — | — | — | 32,335 | 1,737 | 34,072 | 7,578 | 41,650 | ||||||||||||||||||||||||||
Acquired noncontrolling interest | — | — | — | — | — | — | 155 | 155 | — | |||||||||||||||||||||||||||
Purchase of additional controlling interest | — | — | — | — | (275 | ) | — | — | (275 | ) | ||||||||||||||||||||||||||
Noncontrolling interest distributions | — | — | — | — | — | — | (1,637 | ) | (1,637 | ) | (6,687 | ) | ||||||||||||||||||||||||
Stock options exercised | — | 9,500 | — | — | 144 | — | — | 144 | ||||||||||||||||||||||||||||
Nonvested stock compensation | — | — | — | — | 4,225 | — | — | 4,225 | ||||||||||||||||||||||||||||
Issuance of vested stock | — | 176,989 | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Treasury shares redeemed to pay income tax | — | — | (1,479 | ) | 42,197 | — | — | (1,479 | ) | |||||||||||||||||||||||||||
Excess tax benefits-vesting nonvested stock | — | — | — | — | 211 | — | — | 211 | ||||||||||||||||||||||||||||
Issuance of common stock under Employee Stock Purchase Plan | 2 | 22,723 | — | — | 780 | — | — | 782 | ||||||||||||||||||||||||||||
Balances at December 31, 2015 | $ | 222 | 22,224,423 | $ | (37,139 | ) | 4,776,560 | $ | 113,793 | $ | 277,706 | $ | 3,211 | $ | 357,793 | $ | 12,408 |
For the Year Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Operating activities | ||||||||||||
Net income | $ | 41,650 | $ | 28,752 | $ | 29,146 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization expense | 11,955 | 9,571 | 8,325 | |||||||||
Provision for bad debts | 19,243 | 15,780 | 13,929 | |||||||||
Stock-based compensation expense | 4,225 | 4,094 | 3,886 | |||||||||
Deferred income taxes | 1,518 | 2,402 | 2,351 | |||||||||
Impairment of intangibles and other | 1,990 | 3,650 | 520 | |||||||||
Changes in operating assets and liabilities, net of acquisitions: | ||||||||||||
Receivables | (27,951 | ) | (16,372 | ) | (18,961 | ) | ||||||
Prepaid expenses and other assets | (3,793 | ) | 191 | (749 | ) | |||||||
Prepaid income taxes | 441 | 911 | 3,299 | |||||||||
Accounts payable and accrued expenses | 10,526 | (10,460 | ) | 4,395 | ||||||||
Net amounts due to/from governmental entities | 130 | 138 | (226 | ) | ||||||||
Net cash provided by operating activities | 59,934 | 38,657 | 45,915 | |||||||||
Investing activities | ||||||||||||
Cash paid for acquisitions, primarily goodwill and intangible assets | (70,572 | ) | (73,933 | ) | (26,920 | ) | ||||||
Purchases of property, building and equipment | (13,283 | ) | (8,105 | ) | (8,343 | ) | ||||||
Net cash (used in) investing activities | (83,855 | ) | (82,038 | ) | (35,263 | ) | ||||||
Financing activities | ||||||||||||
Proceeds from line of credit | 83,000 | 75,000 | 73,000 | |||||||||
Payments on line of credit | (45,000 | ) | (37,000 | ) | (70,500 | ) | ||||||
Excess tax benefits from vesting of restricted stock | 914 | 124 | 18 | |||||||||
Proceeds from issuance of common stock under ESPP | 782 | 782 | 786 | |||||||||
Proceeds from debt issuance | — | — | 1,212 | |||||||||
Payments on debt | (233 | ) | (202 | ) | — | |||||||
Noncontrolling interest distributions | (8,324 | ) | (6,843 | ) | (8,126 | ) | ||||||
Payment of deferred financing fees | — | (852 | ) | — | ||||||||
Purchase of additional controlling interest | (275 | ) | (359 | ) | (1,879 | ) | ||||||
Sale of noncontrolling interest | — | 193 | — | |||||||||
Redemption of treasury stock to pay income tax | (1,479 | ) | (945 | ) | (869 | ) | ||||||
Proceeds from exercise of stock options | 144 | — | — | |||||||||
Net cash provided by (used in) financing activities | 29,529 | 29,898 | (6,358 | ) | ||||||||
Change in cash | 5,608 | (13,483 | ) | 4,294 | ||||||||
Cash at beginning of period | 531 | 14,014 | 9,720 | |||||||||
Cash at end of period | $ | 6,139 | $ | 531 | $ | 14,014 | ||||||
Supplemental disclosures of cash flow information | ||||||||||||
Interest paid | $ | 1,870 | $ | 2,461 | $ | 1,961 | ||||||
Income taxes paid | $ | 20,361 | $ | 11,781 | $ | 21,606 |
Ownership type | 2015 | 2014 | 2013 | ||||||
Wholly owned subsidiaries | 55.2 | % | 53.5 | % | 48.8 | % | |||
Equity joint ventures | 42.9 | 43.9 | 48.5 | ||||||
License leasing arrangements | 1.0 | 1.8 | 1.9 | ||||||
Management services | 0.9 | 0.8 | 0.8 | ||||||
100.0 | % | 100.0 | % | 100.0 | % |
Payor | 2015 | 2014 | 2013 | ||||||
Medicare | 74.5 | % | 75.9 | % | 79.8 | % | |||
Medicaid | 1.5 | 1.4 | 1.4 | ||||||
Other | 24.0 | 22.7 | 18.8 | ||||||
100.0 | % | 100.0 | % | 100.0 | % |
Segment | 2015 | 2014 | 2013 | ||||||
Home health services | 75.1 | % | 77.0 | % | 79.5 | % | |||
Hospice services | 10.5 | 9.2 | 8.5 | ||||||
Community-based services | 5.1 | 3.8 | 0.5 | ||||||
Facility-based services | 9.3 | 10.0 | 11.5 | ||||||
100.0 | % | 100.0 | % | 100.0 | % |
2015 | 2014 |
Land | $ | 2,033 | $ | 543 | ||||
Building and improvements | 10,026 | 9,238 | ||||||
Transportation equipment | 6,912 | 6,191 | ||||||
Fixed equipment | 3,373 | 3,661 | ||||||
Office furniture and medical equipment | 54,659 | 59,837 | ||||||
77,003 | 79,470 | |||||||
Less accumulated depreciation | 38,907 | 44,683 | ||||||
$ | 38,096 | $ | 34,787 |
2015 | 2014 | 2013 | |||||||
Weighted average number of shares outstanding for basic per share calculation | 17,405,379 | 17,229,026 | 17,049,794 | ||||||
Effect of dilutive potential shares: | |||||||||
Options | 3,663 | 4,284 | 4,058 | ||||||
Nonvested restricted stock | 138,488 | 82,023 | 78,899 | ||||||
Adjusted weighted average shares for diluted per share calculation | 17,547,531 | 17,315,333 | 17,132,751 | ||||||
Antidilutive shares | 200,525 | 173,360 | 182,225 |
Consideration | ||||
Cash | $ | 70,123 | ||
Fair value of total consideration transferred | 70,123 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Trade name | 6,530 | |||
Certificates of needs/licenses | 11,609 | |||
Other identifiable intangible assets | 953 | |||
Cash | 700 | |||
Accounts receivable | 4,202 | |||
Fixed assets | 521 | |||
Accounts payable | (1,389 | ) | ||
Other assets and (liabilities), net | (3,937 | ) | ||
Total identifiable assets | 19,189 | |||
Noncontrolling interest | 152 | |||
Goodwill, including noncontrolling interest of $36 | $ | 51,086 |
2015 | 2014 | ||||||||
Net service revenue | $ | 868,075 | $ | 789,761 | |||||
Operating income | 67,520 | 45,671 | |||||||
Net income | 33,044 | 21,949 | |||||||
Basic earnings per share | 1.90 | 1.27 | |||||||
Diluted earnings per share | 1.88 | 1.27 |
Home health reporting unit | Hospice reporting unit | Community- based reporting unit | Facility-based reporting unit | Total | ||||||||||||||||
Balance as of December 31, 2013 | $ | 173,574 | $ | 9,463 | $ | 265 | $ | 11,591 | $ | 194,893 | ||||||||||
Goodwill from acquisitions | 22,809 | 5,330 | 17,074 | — | 45,213 | |||||||||||||||
Goodwill related to noncontrolling interests | 113 | — | — | — | 113 | |||||||||||||||
Goodwill related to disposal | (200 | ) | — | — | — | (200 | ) | |||||||||||||
Balance as of December 31, 2014 | $ | 196,296 | $ | 14,793 | $ | 17,339 | $ | 11,591 | $ | 240,019 | ||||||||||
Goodwill from acquisitions | 7,069 | 43,343 | 638 | — | 51,050 | |||||||||||||||
Goodwill related to noncontrolling interests | 14 | — | 22 | — | 36 | |||||||||||||||
Goodwill related to disposal | (384 | ) | — | (27 | ) | — | (411 | ) | ||||||||||||
Balance as of December 31, 2015 | $ | 202,995 | $ | 58,136 | $ | 17,972 | $ | 11,591 | $ | 290,694 |
December 31, 2015 | ||||||||||||||
Remaining useful life | Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||||
Indefinite-lived assets: | ||||||||||||||
Trade names | Indefinite | $ | 60,762 | $ | — | $ | 60,762 | |||||||
Certificates of need/licenses | Indefinite | 29,807 | — | 29,807 | ||||||||||
Total | 90,569 | — | 90,569 | |||||||||||
Amortizing assets: | ||||||||||||||
Trade names | 2 months – 5 years | 8,985 | (4,385 | ) | 4,600 | |||||||||
Non-compete agreements | 3 months – 2 years | 5,347 | (4,111 | ) | 1,236 | |||||||||
Total | 14,332 | (8,496 | ) | 5,836 | ||||||||||
Balance at December 31, 2015 | $ | 104,901 | $ | (8,496 | ) | $ | 96,405 |
December 31, 2014 | ||||||||||||||
Remaining useful life | Gross carrying amount | Accumulated amortization | Net carrying amount | |||||||||||
Indefinite-lived assets: | ||||||||||||||
Trade names | Indefinite | $ | 54,732 | $ | — | $ | 54,732 | |||||||
Certificates of need/licenses | Indefinite | 19,058 | — | 19,058 | ||||||||||
Total | $ | 73,790 | $ | — | $ | 73,790 | ||||||||
Amortizing assets: | ||||||||||||||
Trade names | 2 months – 5 years | $ | 8,230 | $ | (2,797 | ) | $ | 5,433 | ||||||
Non-compete agreements | 3 months – 3 years | 4,225 | (3,763 | ) | 462 | |||||||||
Total | 12,455 | (6,560 | ) | 5,895 | ||||||||||
Balance at December 31, 2014 | $ | 86,245 | $ | (6,560 | ) | $ | 79,685 |
2015 | 2014 | |||||||
Deferred tax assets: | ||||||||
Allowance for uncollectible accounts | $ | 9,048 | $ | 6,397 | ||||
Accrued employee benefits | 5,260 | 4,195 |
Stock compensation | 1,068 | 1,228 | ||||||
Accrued self-insurance | 2,517 | 2,526 | ||||||
Acquisition costs | 1,651 | 1,510 | ||||||
Net operating loss carry forward | 983 | 927 | ||||||
Intangible asset impairment | 43 | 49 | ||||||
Uncertain tax position—state tax portion | 215 | 215 | ||||||
Uncertain tax position - interest expense | 254 | 186 | ||||||
Other | 93 | 121 | ||||||
Valuation allowance | (44 | ) | (44 | ) | ||||
Deferred tax assets | $ | 21,088 | $ | 17,310 | ||||
Deferred tax liabilities: | ||||||||
Amortization of intangible assets | (35,355 | ) | (29,370 | ) | ||||
Tax depreciation in excess of book depreciation | (8,201 | ) | (7,994 | ) | ||||
Prepaid expenses | (655 | ) | (697 | ) | ||||
Non-accrual experience accounting method | (606 | ) | (1,459 | ) | ||||
Deferred tax liabilities | (44,817 | ) | (39,520 | ) | ||||
Net deferred tax liability | $ | (23,729 | ) | $ | (22,210 | ) |
2015 | 2014 | 2013 | ||||||||||
Current: | ||||||||||||
Federal | $ | 18,094 | $ | 10,195 | $ | 11,962 | ||||||
State | 3,232 | 1,916 | 1,546 | |||||||||
21,326 | 12,111 | 13,508 | ||||||||||
Deferred: | ||||||||||||
Federal | 1,389 | 2,187 | 1,448 | |||||||||
State | 133 | 215 | 903 | |||||||||
1,522 | 2,402 | 2,351 | ||||||||||
Total income tax expense | $ | 22,848 | $ | 14,513 | $ | 15,859 |
2015 | 2014 | 2013 | |||||||
Federal statutory tax rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State income taxes, net of federal benefit | 3.9 | 3.5 | 3.5 | ||||||
Nondeductible expenses | 2.5 | 2.3 | 3.1 | ||||||
Credits and other | — | (0.9 | ) | — | |||||
Effective tax rate | 41.4 | % | 39.9 | % | 41.6 | % |
2015 | 2014 | 2013 | ||||||||||
Income taxes computed at federal statutory tax rate | $ | 19,314 | $ | 12,723 | $ | 13,360 | ||||||
State income taxes, net of federal benefit | 2,184 | 1,407 | 1,641 | |||||||||
Nondeductible expenses | 1,352 | 766 | 1,022 | |||||||||
Other items | 278 | (99 | ) | 101 |
Income tax credits | (280 | ) | (284 | ) | (265 | ) | ||||||
Total income tax expense | $ | 22,848 | $ | 14,513 | $ | 15,859 |
Total unrecognized tax benefits as of December 31, 2014 | $ | 3,415 | |
Increases (decreases) in unrecognized tax benefits as a result of: | |||
Tax positions taken during the current period | — | ||
Total unrecognized tax benefits as of December 31, 2015 | $ | 3,415 |
Year | Principal payment amount | |||
2016 | $ | 241 | ||
2017 | 256 | |||
2018 | 260 | |||
2019 | 98,027 | |||
2020 | — | |||
Total | $ | 98,784 |
Number of Shares | Weighted Average Exercise Price | Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||
Options outstanding at January 1, 2015 | 15,000 | $ | 16.88 | 1.0 year | $ | 214,575 | ||||||||
Options granted | — | — | — | — | ||||||||||
Options exercised | (9,500 | ) | 15.21 | — | — | |||||||||
Options forfeited or expired | — | — | — | — | ||||||||||
Options outstanding at December 31, 2015 | 5,500 | $ | 20.09 | 0.5 years | $ | — | ||||||||
Options exercisable at December 31, 2015 | 5,500 | $ | 20.09 | 0.5 years | $ | 140,470 |
Number of Shares | Weighted Average Grant Date Fair Value | ||||||
Nonvested shares outstanding at January 1, 2015 | 524,287 | $ | 22.56 | ||||
Granted | 199,065 | 34.06 | |||||
Vested | (177,887 | ) | 23.28 | ||||
Forfeited | (18,374 | ) | 20.57 | ||||
Nonvested shares outstanding at December 31, 2015 | 527,091 | $ | 26.64 |
• | An additional 250,000 shares of common stock were authorized for issuance over the term of the Employee Stock Purchase Plan. |
• | The term of the Employee Stock Purchase Plan was extended from January 1, 2016 to January 1, 2023. |
Number of Shares | Weighted Average Per Share Price | ||||||
Shares available as of January 1, 2012 | 61,247 | ||||||
Additional shares authorized for issuance | 250,000 | ||||||
Shares issued in 2013 | 38,459 | $ | 20.39 | ||||
Shares issued in 2014 | 36,305 | $ | 21.49 | ||||
Shares issued in 2015 | 22,723 | $ | 34.37 | ||||
Shares available as of December 31, 2015 | 213,760 |
Year | Total | |||
2016 | $ | 25,207 | ||
2017 | 11,066 | |||
2018 | 6,766 | |||
2019 | 4,052 | |||
2020 | 2,609 | |||
Thereafter | 5,532 | |||
$ | 55,232 |
Year Ended December 31, 2015 | ||||||||||||||||||||
Home health services | Hospice services | Community-based services | Facility-based services | Total | ||||||||||||||||
Net service revenue | $ | 613,188 | $ | 85,854 | $ | 41,202 | $ | 76,122 | $ | 816,366 | ||||||||||
Cost of service revenue | 354,750 | 50,906 | 29,076 | 46,146 | 480,878 | |||||||||||||||
Provision for bad debts | 15,736 | 1,002 | 1,816 | 689 | 19,243 | |||||||||||||||
General and administrative expenses | 191,135 | 26,517 | 8,506 | 22,471 | 248,629 | |||||||||||||||
Impairment of intangibles and other | 1,245 | — | 28 | — | 1,273 | |||||||||||||||
Operating income | 50,322 | 7,429 | 1,776 | 6,816 | 66,343 | |||||||||||||||
Interest expense | (1,819 | ) | (253 | ) | (23 | ) | (207 | ) | (2,302 | ) | ||||||||||
Non-operating income | 397 | 38 | 3 | 19 | 457 | |||||||||||||||
Income from continuing operations before income taxes and noncontrolling interests | 48,900 | 7,214 | 1,756 | 6,628 | 64,498 | |||||||||||||||
Income tax expense | 17,173 | 2,541 | 787 | 2,347 | 22,848 | |||||||||||||||
Income from continuing operations | 31,727 | 4,673 | 969 | 4,281 | 41,650 | |||||||||||||||
Less net income (loss) attributable to noncontrolling interests | 7,424 | 1,077 | (144 | ) | 958 | 9,315 | ||||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 24,303 | $ | 3,596 | $ | 1,113 | $ | 3,323 | $ | 32,335 | ||||||||||
Total assets | $ | 394,392 | $ | 101,641 | $ | 31,235 | $ | 38,786 | $ | 566,054 |
Year Ended December 31, 2014 | ||||||||||||||||||||
Home health services | Hospice services | Community-based services | Facility-based services | Total | ||||||||||||||||
Net service revenue | $ | 564,966 | $ | 67,621 | $ | 27,698 | $ | 73,347 | $ | 733,632 | ||||||||||
Cost of service revenue | 329,856 | 39,804 | 19,611 | 45,504 | 434,775 | |||||||||||||||
Provision for bad debts | 13,072 | 909 | 873 | 926 | 15,780 | |||||||||||||||
General and administrative expenses | 187,281 | 18,882 | 6,551 | 21,231 | 233,945 | |||||||||||||||
Impairment of intangibles and other | 3,269 | 202 | — | 175 | 3,646 | |||||||||||||||
Operating income | 31,488 | 7,824 | 663 | 5,511 | 45,486 | |||||||||||||||
Interest expense | (1,969 | ) | (249 | ) | (19 | ) | (249 | ) | (2,486 | ) | ||||||||||
Non-operating income | 201 | 43 | 2 | 19 | 265 | |||||||||||||||
Income from continuing operations before income taxes and noncontrolling interests | 29,720 | 7,618 | 646 | 5,281 | 43,265 | |||||||||||||||
Income tax expense | 10,999 | 1,955 | 105 | 1,454 | 14,513 | |||||||||||||||
Income from continuing operations | 18,721 | 5,663 | 541 | 3,827 | 28,752 | |||||||||||||||
Less net income attributable to noncontrolling interests | 5,121 | 1,122 | (36 | ) | 708 | 6,915 | ||||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 13,600 | $ | 4,541 | $ | 577 | $ | 3,119 | $ | 21,837 | ||||||||||
Total assets | $ | 386,511 | $ | 34,847 | $ | 34,027 | $ | 36,354 | $ | 491,739 |
Year Ended December 31, 2013 | ||||||||||||||||||||
Home health services | Hospice services | Community-based services | Facility-based services | Total | ||||||||||||||||
Net service revenue | $ | 523,512 | $ | 56,172 | $ | 3,207 | $ | 75,392 | $ | 658,283 | ||||||||||
Cost of service revenue | 302,589 | 34,212 | 2,398 | 44,265 | 383,464 | |||||||||||||||
Provision for bad debts | 11,623 | 1,215 | 5 | 1,086 | 13,929 | |||||||||||||||
General and administrative expenses | 175,056 | 16,210 | 1,018 | 21,349 | 213,633 | |||||||||||||||
Impairment of intangibles and other | 344 | 175 | — | 1 | 520 | |||||||||||||||
Operating income (loss) | 33,900 | 4,360 | (214 | ) | 8,691 | 46,737 | ||||||||||||||
Interest expense | (1,591 | ) | (200 | ) | (9 | ) | (195 | ) | (1,995 | ) |
Non-operating income | 142 | 26 | — | 95 | 263 | |||||||||||||||
Income (loss) from continuing operations before income taxes and noncontrolling interests | 32,451 | 4,186 | (223 | ) | 8,591 | 45,005 | ||||||||||||||
Income tax expense (benefit) | 12,634 | 1,797 | (89 | ) | 1,517 | 15,859 | ||||||||||||||
Income (loss) from continuing operations | 19,817 | 2,389 | (134 | ) | 7,074 | 29,146 | ||||||||||||||
Less net income attributable to noncontrolling interests | 4,596 | 956 | — | 1,252 | 6,804 | |||||||||||||||
Net income (loss) attributable to LHC Group, Inc.’s common stockholders | $ | 15,221 | $ | 1,433 | $ | (134 | ) | $ | 5,822 | $ | 22,342 | |||||||||
Total assets | $ | 355,858 | $ | 28,557 | $ | 1,242 | $ | 36,569 | $ | 422,226 |
Year | Beginning of Year Balance | Additions | Deductions | End of Year Balance | ||||||||||||
2015 | $ | 18,582 | $ | 19,243 | $ | 11,113 | $ | 26,712 | ||||||||
2014 | 14,334 | 15,780 | 11,532 | 18,582 | ||||||||||||
2013 | 11,863 | 13,929 | 11,458 | 14,334 |
First Quarter 2015 | Second Quarter 2015 | Third Quarter 2015 | Fourth Quarter 2015 | |||||||||||||
Net service revenue | $ | 193,079 | $ | 200,172 | $ | 204,122 | $ | 218,993 | ||||||||
Gross margin | 78,653 | 83,533 | 83,249 | 90,053 | ||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | 6,805 | 8,950 | 8,845 | 7,735 | ||||||||||||
Basic earnings per share: | ||||||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 0.39 | $ | 0.51 | $ | 0.51 | $ | 0.44 | ||||||||
Diluted earnings per share: | ||||||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 0.39 | $ | 0.51 | $ | 0.50 | $ | 0.44 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 17,322,791 | 17,410,971 | 17,436,731 | 17,447,691 | ||||||||||||
Diluted | 17,489,483 | 17,529,100 | 17,610,953 | 17,647,483 |
First Quarter 2014 | Second Quarter 2014 | Third Quarter 2014 | Fourth Quarter 2014 | |||||||||||||
Net service revenue | $ | 163,681 | $ | 188,867 | $ | 187,713 | $ | 193,371 | ||||||||
Gross margin | 66,347 | 77,340 | 74,591 | 80,579 | ||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | 4,068 | 6,061 | 6,174 | 5,534 | ||||||||||||
Basic earnings per share: | ||||||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 0.24 | $ | 0.35 | $ | 0.36 | $ | 0.32 | ||||||||
Diluted earnings per share: | ||||||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 0.24 | $ | 0.35 | $ | 0.36 | $ | 0.32 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 17,148,043 | 17,233,264 | 17,260,078 | 17,274,677 | ||||||||||||
Diluted | 17,268,716 | 17,277,224 | 17,356,916 | 17,419,423 |
LHC GROUP, INC. | ||
March 3, 2016 | /s/ KEITH G. MYERS | |
Keith G. Myers | ||
Chief Executive Officer |
Signature | Title | Date | ||
/s/ KEITH G. MYERS Keith G. Myers | Chief Executive Officer and Chairman of the Board of Directors | March 3, 2016 | ||
/s/ DIONNE E. VIATOR Dionne E. Viator | Executive Vice President, Chief Financial Officer, Principal Accounting Officer | March 3, 2016 | ||
/s/ MONICA F. AZARE Monica F. Azare | Director | March 3, 2016 | ||
/s/ JOHN B. BREAUX John B. Breaux | Director | March 3, 2016 | ||
/s/ JOHN L. INDEST John L. Indest | Director | March 3, 2016 | ||
/s/ GEORGE A. LEWIS George A. Lewis | Director | March 3, 2016 | ||
/s/ RONALD T. NIXON Ronald T. Nixon | Director | March 3, 2016 | ||
/s/ CHRISTOPHER S. SHACKELTON Christopher S. Shackelton | Director | March 3, 2016 | ||
/s/ W.J. “BILLY” TAUZIN W.J. “Billy” Tauzin | Director | March 3, 2016 | ||
/s/ KENNETH E. THORPE Kenneth E. Thorpe | Director | March 3, 2016 | ||
/s/ BRENT TURNER Brent Turner | Director | March 3, 2016 | ||
/s/ DAN S. WILFORD Dan S. Wilford | Director | March 3, 2016 |
Exhibit Number | Description of Exhibits | |
3.1 | Certificate of Incorporation of LHC Group, Inc. (previously filed as Exhibit 3.1 to LHC Group’s Form S-1/A (File No. 333-120792) filed on February 14, 2005). | |
3.2 | Bylaws of LHC Group, Inc., as amended on December 3, 2007 (previously filed as Exhibit 3.2 to LHC Group’s Form 10-Q for the quarterly period ended March 31, 2008, filed on May 9, 2008). | |
4.1 | Specimen Stock Certificate of LHC Group’s Common Stock, par value $0.01 per share (previously filed as Exhibit 4.1 to LHC Group’s Form S-1/A (File No. 333-120792) filed on February 14, 2005). | |
10.1+ | LHC 2003 Key Employee Equity Participation Plan (previously filed as Exhibit 10.3 to LHC Group’s Form S-1 (File No. 333-120792) filed on November 26, 2004). | |
10.2+ | LHC Group, Inc. 2005 Long-Term Incentive Plan (previously filed as Exhibit 10.4 to the Form S-1/A (File No. 333-120792) filed on February 14, 2005). | |
10.3+ | LHC Group, Inc. 2010 Long-Term Incentive Plan (previously filed as Exhibit 10.1 to LHC Group’s Form 10-Q for the quarterly period ended June 30, 2010, filed on August 6, 2010). | |
10.4+ | LHC Group, Inc. Second Amended and Restated 2005 Non-Employee Directors Compensation Plan (previously filed as Exhibit 10.4 to LHC Group's Form 10-K for the year ended December 31, 2014, filed on March 11, 2015). | |
10.5+ | Form of Indemnity Agreement between LHC Group and directors and certain officers (previously filed as Exhibit 10.10 to the Form S-1/A (File No. 333-120792) filed on February 14, 2005). | |
10.6+ | LHC Group, Inc. 2006 Employee Stock Purchase Plan (previously filed as Exhibit 99.2 to LHC Group’s Form 8-K filed on June 16, 2006). | |
10.7 | Settlement Agreement among the United States of America, LHC Group, Inc. and certain of its subsidiaries and relator, dated September 29, 2011 (previously filed as Exhibit 10.1 to LHC Group’s Form 8-K filed on September 30, 2011). | |
10.8 | Corporate Integrity Agreement between the Office of Inspector General of the Department of Health and Human Services and LHC Group, Inc., dated September 29, 2011 (previously filed as Exhibit 10.2 to LHC Group’s Form 8-K filed on September 30, 2011). | |
10.9 | Credit Agreement, dated as of June 18, 2014, among LHC Group, Inc., Capital One, National Association, as administrative agent, sole bookrunner, sole lead arranger, and a lender, JPMorgan Chase Bank, N.A., Regions Bank and Compass Bank, as co-syndication agents and lenders, and Whitney Bank, as a lender (previously filed as Exhibit 10.1 to LHC Group's Form 8-K filed on June 23, 2014). | |
10.10+ | Amended and Restated Employment Agreement between Donald D. Stelly and LHC Group, Inc. dated August 19, 2013 (previously filed as Exhibit 10.1 to the Form 8-K filed August 19, 2013). | |
10.11+ | Amended and Restated Employment Agreement between Keith G. Myers and LHC Group, Inc. dated April 1, 2014 (previously filed as Exhibit 10.1 to the Form 8-K filed April 4, 2014). | |
10.12+ | Employment Agreement between Dionne E. Viator and LHC Group, Inc. dated December 3, 2014 (previously filed as Exhibit 10.1 to the Form 8-K filed December 4, 2014). |
10.13+ | Amendment to LHC Group, Inc. Second Amended and Restated 2005 Non-Employee Directors Compensation Plan, effective January 20, 2015. (previously filed as Exhibit 10.1 to LHC Group's Form 10-Q filed on May 7, 2015). | |
10.14+ | Amended and Restated Employment Agreement between Joshua L. Proffitt and LHC Group, Inc. dated August 7, 2015 (previously filed as Exhibit 10.2 to the Form 10-Q filed November 5, 2015) |
21.1 | Subsidiaries of the Registrant. | |
23.1 | Consent of KPMG LLP. | |
31.1 | Certification of Keith G. Myers, Chief Executive Officer pursuant to Rule 13a- 14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of Dionne E. Viator, Chief Financial Officer pursuant to Rule 13a- 14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1* | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Schema Document | |
101.CAL | XBRL Calculation Linkbase Document | |
101.DEF | XBRL Definition Linkbase Document | |
101.LAB | XBRL Label Linkbase Document | |
101.PRE | XBRL Presentation Linkbase Document |
+ | Indicates a management contract or compensatory plan. |
Company | Domestic State |
Able Home Health, Inc. | Alabama |
Alabama Health Care Group, LLC | Alabama |
Athens-Limestone HomeCare, LLC | Alabama |
Baptist Home Health, LLC | Alabama |
Camden HomeCare, LLC | Alabama |
Clay County Hospital HomeCare, LLC | Alabama |
Coosa Valley HomeCare, LLC | Alabama |
East Alabama Medical Center HomeCare, LLC | Alabama |
Fayette Medical Center HomeCare, LLC | Alabama |
Gulf Homecare, Inc. | Alabama |
HGA HomeCare, LLC | Alabama |
Infirmary Home Health Agency, Inc. | Alabama |
LHCG LI, LLC | Alabama |
LHCG LXIV, LLC | Alabama |
LHCG XXII, LLC | Alabama |
LHCG XXIX, LLC | Alabama |
LHCG XXXIV, LLC | Alabama |
Marion Regional HomeCare, LLC | Alabama |
Medical Centers HomeCare, LLC | Alabama |
Mizell Memorial Hospital HomeCare, LLC | Alabama |
Southeast Alabama HomeCare, LLC | Alabama |
Thomas Home Health, LLC | Alabama |
Arizona Health Care Group, LLC | Arizona |
LHCG LVI, LLC | Arizona |
AHCG Management, LLC | Arkansas |
Arkansas Health Care Group, LLC | Arkansas |
Arkansas HomeCare of Forrest City, LLC | Arkansas |
Arkansas HomeCare of Fulton, LLC | Arkansas |
Arkansas HomeCare of Hot Springs, LLC | Arkansas |
CMC Home Health and Hospice, LLC | Arkansas |
Dallas County Medical Center HomeCare, LLC | Arkansas |
Eureka Springs Hospital HomeCare, LLC | Arkansas |
Eureka Springs Hospital Hospice, LLC | Arkansas |
Hospice of Central Arkansas, LLC | Arkansas |
Jefferson Regional HomeCare, LLC | Arkansas |
LHCG LXVIII, LLC | Arkansas |
LHCG XLII, LLC. | Arkansas |
Mena Medical Center Home Health, LLC | Arkansas |
Mena Medical Center Hospice, LLC | Arkansas |
Patient’s Choice Hospice, LLC | Arkansas |
Southwest Arkansas HomeCare, LLC | Arkansas |
California Health Care Group, LLC | California |
LHCG XXXVIII, LLC | California |
Colorado Health Care Group, LLC | Colorado |
LHCG LVII, LLC | Colorado |
Compassionate Hospice of Georgia, Inc. | Delaware |
Halcyon Healthcare, LLC | Delaware |
LHC Group, Inc. | Delaware |
River West Home Care, LLC | Delaware |
Halcyon Hospice of Aiken, LLC | Florida |
LHC Health Care Group of Florida, LLC | Florida |
LHCG XIX, LLC | Florida |
Lifeline Home Health Care of Lady Lake, LLC | Florida |
Lifeline Home Health Care of Lakeland, LLC | Florida |
Lifeline Home Health Care of Marathon, LLC | Florida |
Lifeline Home Health Care of Port Charlotte, LLC | Florida |
Munroe Regional HomeCare, LLC | Florida |
Altus Hospice of Georgia, LLC | Georgia |
Compassionate Healthcare Management Group, LLC | Georgia |
Floyd HomeCare, LLC | Georgia |
Georgia Health Care Group, LLC | Georgia |
Georgia HomeCare of Harris, LLC | Georgia |
Grace Hospice, LLC | Georgia |
LHCG XL, LLC | Georgia |
Northwest Georgia Home Health, LLC | Georgia |
Idaho Health Care Group, LLC | Idaho |
LHCG XVII, LLC | Idaho |
LHCG XXI, LLC | Idaho |
Illinois Health Care Group, LLC | Illinois |
Illinois Home Health Care, LLC | Illinois |
Illinois LIV, LLC | Illinois |
LHCG XXXVII, LLC | Illinois |
Kentucky Health Care Group, LLC | Kentucky |
Kentucky Home Health Care, LLC | Kentucky |
Kentucky HomeCare of Henderson, LLC | Kentucky |
Kentucky LV, LLC | Kentucky |
LHC HomeCare-Lifeline, LLC | Kentucky |
LHCG LXX, LLC | Kentucky |
LHCG LXXI, LLC | Kentucky |
LHCG XLVI, LLC | Kentucky |
LHCG XXIII, LLC | Kentucky |
Lifeline HomeCare of Salem, LLC | Kentucky |
Lifeline Home Health Care of Bowling Green, LLC | Kentucky |
Lifeline Home Health Care of Fulton, LLC | Kentucky |
Lifeline Home Health Care of Hopkinsville, LLC | Kentucky |
Lifeline Home Health Care of Lexington, LLC | Kentucky |
Lifeline Home Health Care of Russellville, LLC | Kentucky |
Lifeline Home Health Care of Somerset, LLC | Kentucky |
Lifeline Private Duty Services of Kentucky, LLC | Kentucky |
Lifeline Rockcastle Home Health, LLC | Kentucky |
Twin Lakes Home Health Agency, LLC | Kentucky |
AAA Home Health, Inc. | Louisiana |
Acadian HomeCare, LLC | Louisiana |
Acadian HomeCare of New Iberia, LLC | Louisiana |
Acadian Home Health Care Services, LLC | Louisiana |
Acadian Physical Therapy Services, LLC | Louisiana |
Baton Rouge HomeCare, LLC | Louisiana |
Beauregard Memorial Hospital HomeCare, LLC | Louisiana |
Hood Home Health Service, LLC | Louisiana |
LHC Group Employee Hardship Relief Fund | Louisiana |
LHC Group Pharmaceutical Services, LLC | Louisiana |
LHC Physician Services, LLC | Louisiana |
LHC Real Estate I, LLC | Louisiana |
LHCG-II, LLC. | Louisiana |
LHCG LXXII, LLC | Louisiana |
LHCG LXVII, LLC | Louisiana |
LHCG V, LLC | Louisiana |
LHCG VI, LLC | Louisiana |
LHCG VIII, LLC | Louisiana |
LHCG X, LLC | Louisiana |
LHCG XII, LLC | Louisiana |
LHCG XIII, LLC | Louisiana |
LHCG XIV, LLC | Louisiana |
LHCG XLIII, LLC | Louisiana |
LHCG XLIV, LLC | Louisiana |
LHCG XV, LLC | Louisiana |
LHCG XVI, LLC | Louisiana |
LLC-I, LLC | Louisiana |
LLC-II, LLC | Louisiana |
Louisiana Extended Care Hospital of Kenner, LLC | Louisiana |
Louisiana Health Care Group, LLC | Louisiana |
Louisiana HomeCare of Delhi, LLC | Louisiana |
Louisiana HomeCare of Kenner, LLC | Louisiana |
Louisiana HomeCare of Lutcher, LLC | Louisiana |
Louisiana HomeCare of Minden, LLC | Louisiana |
Louisiana HomeCare of Miss-Lou, LLC | Louisiana |
Louisiana HomeCare of Monroe, LLC | Louisiana |
Louisiana HomeCare of North Louisiana, LLC | Louisiana |
Louisiana HomeCare of Northwest Louisiana, LLC | Louisiana |
Louisiana HomeCare of Plaquemine, LLC | Louisiana |
Louisiana HomeCare of Raceland, LLC | Louisiana |
Louisiana HomeCare of Slidell, LLC | Louisiana |
Louisiana Home Health of Hammond, LLC | Louisiana |
Louisiana Home Health of Houma, LLC | Louisiana |
Louisiana Hospice and Palliative Care, LLC | Louisiana |
Louisiana Hospice Group, LLC | Louisiana |
Louisiana Physical Therapy, LLC | Louisiana |
Oak Shadows of Jennings, LLC | Louisiana |
Palmetto Express, LLC | Louisiana |
Patient’s Choice Hospice and Palliative Care of Louisiana, LLC | Louisiana |
Richardson Medical Center HomeCare, LLC | Louisiana |
St. James HomeCare, LLC | Louisiana |
St. Landry Family Healthcare, LLC | Louisiana |
Southeast Louisiana HomeCare, LLC | Louisiana |
Specialty Extended Care Hospital of Monroe, LLC | Louisiana |
Texas Health Care Group Holdings, LLC | Louisiana |
The Hospice Promise Foundation | Louisiana |
Tri-Parish Community HomeCare, LLC | Louisiana |
Vital Hospice, Inc. | Louisiana |
FirstCall Health Services, Inc. | Maryland |
HomeCall, Inc. | Maryland |
Maryland Health Care Group, LLC | Maryland |
LHCG LVIII, LLC | Massachusetts |
Massachusetts Health Care Group, LLC | Massachusetts |
LHCG XLVIII, LLC | Minnesota |
Minnesota Health Care Group, LLC | Minnesota |
Able Home Health, Inc. | Mississippi |
Community Hospice, LLC | Mississippi |
Cornerstone Palliative and Hospice, LLC | Mississippi |
Covenant Palliative and Hospice, LLC | Mississippi |
LHCG XXVI, LLC | Mississippi |
Leaf River Home Health Care, LLC | Mississippi |
Mississippi Health Care Group, LLC | Mississippi |
Mississippi HomeCare, LLC | Mississippi |
Mississippi HomeCare of Jackson II, LLC | Mississippi |
Picayune HomeCare, LLC | Mississippi |
South Mississippi Home Health, Inc. | Mississippi |
South Mississippi Home Health, Inc. - Region I | Mississippi |
South Mississippi Home Health, Inc. - Region II | Mississippi |
South Mississippi Home Health, Inc. - Region III | Mississippi |
Access Hospice, LLC | Missouri |
LHCG LXIX, LLC | Missouri |
LHCG LXV, LLC | Missouri |
LHCG XXV, LLC | Missouri |
Missouri Health Care Group, LLC | Missouri |
Southwest Missouri HomeCare, LLC | Missouri |
Nebraska Health Care Group, LLC | Nebraska |
Assured Capital Partners, Inc. | Nevada |
LHCG XXXIX, LLC | Nevada |
Nevada Health Care Group, LLC. | Nevada |
Cape Fear Valley HomeCare and Hospice, LLC | North Carolina |
LHCG L, LLC | North Carolina |
North Carolina Health Care Group, LLC | North Carolina |
Ohio Health Care Group, LLC | Ohio |
Ohio HomeCare, LLC | Ohio |
Craig General Home Health, LLC | Oklahoma |
Oklahoma Health Care Group, LLC | Oklahoma |
Oregon Health Care Group, LLC | Oregon |
Salem HomeCare, LLC | Oregon |
Three Rivers HomeCare, LLC | Oregon |
LHCG XXVII, LLC | Pennsylvania |
Pennsylvania Health Care Group Holdings, LLC | Pennsylvania |
LHCG LIX, LLC | Rhode Island |
Rhode Island Health Care Group, LLC | Rhode Island |
LHCG XLI, LLC | South Carolina |
South Carolina Health Care Group, LLC | South Carolina |
Cedar Creek Home Health Care Agency, LLC | Tennessee |
Elk Valley Health Services, LLC | Tennessee |
Elk Valley Home Health Care Agency, LLC | Tennessee |
Elk Valley Professional Affiliates, Inc. | Tennessee |
Gericare, LLC | Tennessee |
HMC Home Health, LLC | Tennessee |
LHC HomeCare of Tennessee, LLC | Tennessee |
LHCG LXII, LLC | Tennessee |
Lifeline Home Health Care of Springfield, LLC | Tennessee |
Lifeline Home Health Care of Union City, LLC | Tennessee |
Lifeline of West Tennessee, LLC | Tennessee |
Medical Center Home Health, LLC | Tennessee |
Morristown Hamblen HomeCare & Hospice, LLC | Tennessee |
Tennessee Health Care Group, LLC | Tennessee |
University of TN Medical Center Home Care Services, LLC | Tennessee |
West Tennessee HomeCare, LLC | Tennessee |
Woods Home Health, LLC | Tennessee |
GSHS Home Health, LP. | Texas |
Home Care Connections, Inc. | Texas |
LHCG XXXIII, LLC | Texas |
Marshall HomeCare, LP. | Texas |
Red River HomeCare, LLC | Texas |
Rivercrest Home Health Care, Inc. | Texas |
Texas Health Care Group, LLC | Texas |
Texas Health Care Group of Texarkana, LLC | Texas |
Texas Health Care Group of The Golden Triangle, LLC | Texas |
LHCG LX, LLC | Utah |
Utah Health Care Group, LLC | Utah |
Virginia Health Care Group, LLC | Virginia |
Virginia HomeCare, LLC | Virginia |
LHCG LXIII, LLC | Washington |
Northeast Washington Home Health, Inc. | Washington |
Northwest Healthcare Alliance, Inc. | Washington |
Washington Health Care Group, LLC | Washington |
Washington HomeCare and Hospice of Central Basin, LLC | Washington |
Boone Memorial HomeCare, LLC | West Virginia |
Grant Memorial HomeCare and Hospice, LLC | West Virginia |
Home Care Plus, Inc. | West Virginia |
Housecalls Home Health & Hospice, LLC | West Virginia |
Jackson County Home Health, LLC | West Virginia |
LHC HomeCare of West Virginia, LLC | West Virginia |
LHC Physician Services of West Virginia, LLC | West Virginia |
LHCG LII, LLC | West Virginia |
Mountaineer HomeCare, LLC | West Virginia |
Preston Memorial HomeCare, LLC | West Virginia |
Princeton Community HomeCare, LLC | West Virginia |
Roane HomeCare, LLC | West Virginia |
St. Mary’s Medical Center Home Health Services, LLC | West Virginia |
West Virginia Health Care Group, LLC | West Virginia |
West Virginia HomeCare, LLC | West Virginia |
Wetzel County HomeCare, LLC | West Virginia |
LHCG XLVII, LLC | Wisconsin |
Wisconsin Health Care Group, LLC | Wisconsin |
/s/ Keith G. Myers |
Keith G. Myers Chief Executive Officer (Principal executive officer) |
/s/ Dionne E. Viator |
Dionne E. Viator Executive Vice President and Chief Financial Officer (Principal financial officer) |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Keith G. Myers |
Keith G. Myers Chief Executive Officer (Principal executive officer) |
/s/ Dionne E. Viator |
Dionne E. Viator Executive Vice President and Chief Financial Officer (Principal financial officer) |
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Feb. 29, 2016 |
Jun. 30, 2015 |
|
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | LHCG | ||
Entity Registrant Name | LHC Group, Inc. | ||
Entity Central Index Key | 0001303313 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 17,972,512 | ||
Entity Public Float | $ 496.8 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Patient accounts receivable, allowance for uncollectible accounts | $ 26,712 | $ 18,582 |
Property, building and equipment, accumulated depreciation | 38,907 | 44,683 |
Intangible assets, accumulated amortization | $ 8,496 | $ 6,560 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 22,224,423 | 22,015,211 |
Treasury stock at cost, shares | 4,776,560 | 4,734,363 |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Statement [Abstract] | |||||||||||
Net service revenue | $ 218,993 | $ 204,122 | $ 200,172 | $ 193,079 | $ 193,371 | $ 187,713 | $ 188,867 | $ 163,681 | $ 816,366 | $ 733,632 | $ 658,283 |
Cost of service revenue | 480,878 | 434,775 | 383,464 | ||||||||
Gross margin | 90,053 | 83,249 | 83,533 | 78,653 | 80,579 | 74,591 | 77,340 | 66,347 | 335,488 | 298,857 | 274,819 |
Provision for bad debts | 19,243 | 15,780 | 13,929 | ||||||||
General and administrative expenses | 248,629 | 233,945 | 213,633 | ||||||||
Impairment of intangibles and other | 1,273 | 3,646 | 520 | ||||||||
Operating income | 66,343 | 45,486 | 46,737 | ||||||||
Interest expense | (2,302) | (2,486) | (1,995) | ||||||||
Non-operating income | (457) | (265) | (263) | ||||||||
Income from continuing operations before income taxes and noncontrolling interests | 64,498 | 43,265 | 45,005 | ||||||||
Income tax expense | 22,848 | 14,513 | 15,859 | ||||||||
Income from continuing operations | 41,650 | 28,752 | 29,146 | ||||||||
Less net income attributable to noncontrolling interests | 9,315 | 6,915 | 6,804 | ||||||||
Net Income Attributable to LHC Group Inc.'s Common Stockholders | $ 7,735 | $ 8,845 | $ 8,950 | $ 6,805 | $ 5,534 | $ 6,174 | $ 6,061 | $ 4,068 | $ 32,335 | $ 21,837 | $ 22,342 |
Earnings Per Share - Basic: | |||||||||||
Net income attributable to LHC Group, Inc.' common stockholders | $ 0.44 | $ 0.51 | $ 0.51 | $ 0.39 | $ 0.32 | $ 0.36 | $ 0.35 | $ 0.24 | $ 1.86 | $ 1.27 | $ 1.31 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Net income attributable to LHC Group, Inc.' common stockholders | $ 0.44 | $ 0.50 | $ 0.51 | $ 0.39 | $ 0.32 | $ 0.36 | $ 0.35 | $ 0.24 | $ 1.84 | $ 1.26 | $ 1.30 |
Weighted Average Shares Outstanding: | |||||||||||
Basic | 17,447,691 | 17,436,731 | 17,410,971 | 17,322,791 | 17,274,677 | 17,260,078 | 17,233,264 | 17,148,043 | 17,405,379 | 17,229,026 | 17,049,794 |
Diluted | 17,647,483 | 17,610,953 | 17,529,100 | 17,489,483 | 17,419,423 | 17,356,916 | 17,277,224 | 17,268,716 | 17,547,531 | 17,315,333 | 17,132,751 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Licenses capitalized pay for purchases of property, building and equipment | $ 2,700 |
Treasury Stock [Member] | |
Treasury shares redeemed to pay income tax | $ 1,479 |
Organization |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization LHC Group, Inc. (the “Company”) is a health care provider specializing in the post-acute continuum of care primarily for Medicare beneficiaries. The Company provides home health services, hospice services, community-based services, and facility-based services, the latter primarily through long-term acute care hospitals ("LTACHs"). As of December 31, 2015, the Company, through its wholly and majority-owned subsidiaries, equity joint ventures and controlled affiliates, operated 363 service providers in 25 states within the continental United States. |
Summary of Significant Accounting Policies |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenue and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates relate to revenue recognition, collectability of accounts receivable and impairment tests of goodwill and other indefinite-lived intangible assets. A description of the significant accounting policies and a discussion of the significant estimates and judgments associated with such policies are described below. Principles of Consolidation The consolidated financial statements include all subsidiaries and entities controlled by the Company. Control is defined by the Company as ownership of a majority of the voting interest of an entity. Third party equity interests in the consolidated joint ventures are reflected as noncontrolling interests in the Company’s consolidated financial statements. The following table summarizes the percentage of net service revenue earned by type of ownership or relationship the Company had with the operating entity for the periods presented for the years ending December 31:
All significant inter-company accounts and transactions have been eliminated in consolidation. All business combinations accounted for as purchases have been included in the consolidated financial statements from the respective dates of acquisition. The following discussion describes the Company’s consolidation policy with respect to its various ventures excluding wholly owned subsidiaries: Equity Joint Ventures A majority of the Company’s equity joint ventures are structured as limited liability companies in which the Company typically owns a majority equity interest ranging from 51% to 91%. Each member of all but one of the Company’s equity joint ventures participates in profits and losses in proportion to their equity interests. The Company has one equity joint venture partner whose participation in losses is limited. The Company consolidates these entities as the Company has the obligation to absorb losses of the entities and the right to receive benefits from the entities and generally has voting control over the entities. License Leasing Arrangements The Company, through wholly owned subsidiaries, leases home health licenses necessary to operate certain of its home nursing and hospice agencies. As with wholly owned subsidiaries, the Company owns 100% of the equity of these entities and consolidates them based on such ownership. Management Services The Company has various management services agreements under which the Company manages operations of certain agencies and facilities. The Company does not consolidate these agencies or facilities, as the Company does not have an ownership interest and does not have an obligation to absorb losses of the entities or the right to receive the benefits from the entities other than management fees. Revenue Recognition The Company reports net service revenue at the estimated net realizable amount due from Medicare, Medicaid and others for services rendered. The Company assesses the patient's ability to pay for their healthcare services at the time of patient admission based on the Company's verification of the patient's insurance coverage under the Medicare, Medicaid and other commercial or managed care insurance programs. All such payors contribute to the net service revenue of the Company's home health services, hospice services and facility-based services. The following table sets forth the percentage of net service revenue earned by category of payor for the years ending December 31:
The percentage of net service revenue contributed from each reporting segment was as follows for the years ending December 31:
Medicare Home Health Services The Company’s home nursing Medicare patients are classified into one of 153 home health resource groups prior to receiving services. Based on this home health resource group, the Company is entitled to receive a standard prospective Medicare payment for delivering care over a 60-day period referred to as an episode. The Company recognizes revenue based on the number of days elapsed during an episode of care within the reporting period. Final payments from Medicare may reflect one of four retroactive adjustments to ensure the adequacy and effectiveness of the total reimbursement: (a) an outlier payment if the patient’s care was unusually costly; (b) a low utilization adjustment if the number of visits was fewer than five; (c) a partial payment if the patient transferred to another provider before completing the episode; or (d) a payment adjustment based upon the level of therapy services required in the population base. Management estimates the impact of these payment adjustments based on historical experience and records this estimate during the period the services are rendered. The Company’s payment is also adjusted for geographic wage differences. In calculating the Company’s reported net service revenue from home nursing services, the Company adjusts the prospective Medicare payments by an estimate of the adjustments. Hospice Services The Company is paid by Medicare under a per diem payment system. The Company receives one of four predetermined daily or hourly rates based upon the level of care the Company furnished. The Company records net service revenue from hospice services based on the daily or hourly rate and recognizes revenue as hospice services are provided. Hospice payments are subject to an inpatient cap and an overall Medicare payment cap. The inpatient cap relates to individual programs receiving more than 20% of its total Medicare reimbursement from inpatient care services and the overall Medicare payment cap relates to individual programs receiving reimbursements in excess of a “cap amount,” calculated by multiplying the number of beneficiaries during the period by a statutory amount that is indexed for inflation. The determination for each cap is made annually based on the 12 -month period ending on October 31 of each year. The Company monitors its limits on a provider-by-provider basis and records an estimate of its liability for reimbursements received in excess of the cap amount. Annually, the Company receives notification of whether any of its hospice providers have exceeded either cap. Beginning with cap year ended October 1, 2014, CMS implemented a new process requiring hospice providers to self-report their cap liabilities and remit applicable payment by March 31 of the following year. Facility-Based Services Long-Term Acute Care Services. The Company is reimbursed by Medicare for services provided under the long-term acute care hospital (“LTACH”) prospective payment system. Each patient is assigned a long-term care diagnosis-related group. The Company is paid a predetermined fixed amount intended to reflect the average cost of treating a Medicare patient classified in that particular long-term care diagnosis-related group. For selected patients, the amount may be further adjusted based on length-of-stay and facility-specific costs, as well as in instances where a patient is discharged and subsequently re-admitted, among other factors. The Company calculates the adjustment based on a historical average of these types of adjustments for claims paid. Similar to other Medicare prospective payment systems, the rate is also adjusted for geographic wage differences. Revenue is recognized for the Company’s LTACHs as services are provided. Medicaid, managed care and other payors The Company’s Medicaid reimbursement is based on a predetermined fee schedule applied to each service provided. Therefore, revenue is recognized for Medicaid services as services are provided based on this fee schedule. Managed care and other payors reimburse the Company in a manner similar to either Medicare or Medicaid. Accordingly, the Company recognizes revenue from managed care and other payors in the same manner as the Company recognizes revenue from Medicare or Medicaid. Management Services The Company records management services revenue as services are provided in accordance with the various management services agreements to which the Company is a party. As described in the management services agreements, the Company provides billing, management and other consulting services suited to and designed for the efficient operation of the applicable home nursing agency. The Company is responsible for the costs associated with the locations and personnel required for the provision of services. The Company is compensated based on a percentage of cash collections for one management service agreement and reimbursed for operating expenses plus a percentage of operating net income for two management service agreements. Accounts Receivable and Allowances for Uncollectible Accounts The Company reports accounts receivable net of estimated allowances for uncollectible accounts and adjustments. Accounts receivable are uncollateralized and primarily consist of amounts due from Medicare, Medicaid, other third-party payors, and patients. To provide for accounts receivable that could become uncollectible in the future, the Company establishes an allowance for uncollectible accounts to reduce the carrying amount of such receivables to their estimated net realizable value. Because Medicare is the Company’s primary payor, the credit risk associated with receivables from other payors is limited. The Company believes the credit risk associated with its Medicare accounts, which have historically exceed 55.0% of its patient accounts receivable, is limited due to (i) the historical collection rate from Medicare and (ii) the fact that Medicare is a U.S. government payor. The Company does not believe that there are any other significant concentrations of receivables from any particular payor that would subject it to any significant credit risk in the collection of accounts receivable. The amount of the provision for bad debts is based upon the Company’s assessment of historical and expected net collections, business and economic conditions and trends in government reimbursement. Uncollectible accounts are written off when the Company has determined that the account will not be collected. A portion of the estimated Medicare prospective payment system reimbursement from each submitted home nursing episode is received in the form of a request for anticipated payment (“RAP”). The Company submits a RAP for 60% of the estimated reimbursement for the initial episode at the start of care. The full amount of the episode is billed after the episode has been completed. The RAP received for that particular episode is deducted from the final payment. If a final bill is not submitted within the greater of 120 days from the start of the episode, or 60 days from the date the RAP was paid, any RAPs received for that episode will be recouped by Medicare from any other Medicare claims in process for that particular provider. The RAP and final claim must then be resubmitted. For subsequent episodes of care contiguous with the first episode for a particular patient, the Company submits a RAP for 50% instead of 60% of the estimated reimbursement. The Company’s Medicare population is paid at a prospectively set amount that can be determined at the time services are rendered. The Company’s Medicaid reimbursement is based on a predetermined fee schedule applied to each individual service we provide. The Company’s managed care contracts are structured similar to either the Medicare or Medicaid payment methodologies. Because of its payor mix, the Company is able to calculate its actual amount due at the patient level and adjust the gross charges down to the actual amount at the time of billing. This negates the need to record an estimated contractual allowance when reporting net service revenue for each reporting period. Business Combination The Company accounts for business combinations using the acquisition method. The assets typically acquired consist primarily of Medicare licenses, trade names, certificates of need and/or a non-compete agreement. The assets acquired and liabilities assumed, if any, are measured at fair value on the acquisition date using the appropriate valuation method. The noncontrolling interest associated with joint venture acquisitions is also measured and recorded at fair value as of the acquisition date. The residual purchase price is recorded as goodwill. The operations of the acquisitions are included in the consolidated financial statements from their respective dates of acquisition. Goodwill and Intangible Assets The Company performs its annual impairment review of goodwill at November 30, and when a triggering event occurs between annual impairment tests. For 2015, the Company performed a qualitative assessment of goodwill and determined that it is not more likely than not that the fair values of its reporting units are less than the carrying amounts. The Company has not recognized any goodwill impairment charges in 2015, 2014 or 2013 related to the annual impairment testing. During the twelve months ended December 31, 2015 and 2014, the Company recognized a disposal of $0.4 million and $0.2 million, respectively, of goodwill associated with the closure of underperforming locations. Included in intangible assets are definite-lived assets subject to amortization such as non-compete agreements and defensive assets, which are defined as trade names that are not actively used. Amortization of definite-lived intangible assets is calculated on a straight-line basis over the estimated useful lives of the related assets, ranging from two to five years. The Company also has indefinite-lived assets that are not subject to amortization expense such as trade names, certificates of need and licenses to conduct specific operations within geographic markets. The Company has concluded that trade names, certificates of need and licenses have indefinite lives, because there are no legal, regulatory, contractual, economic or other factors that would limit the useful life of these intangible assets and the Company intends to renew and operate the certificates of need and licenses and use the trade names indefinitely. These indefinite-lived intangible assets are reviewed annually for impairment or more frequently if circumstances indicate impairment may have occurred. To determine whether an indefinite-lived intangible asset is impaired, the Company performs a qualitative assessment to support the conclusion that the indefinite-lived intangible asset is not impaired. Based on the results of that qualitative assessment, the Company may perform a quantitative test. The Company utilizes a relief-from-royalty method in its quantitative impairment test of trade names. Under this method, the fair value of the trade name is determined by calculating the present value of the after-tax cost savings associated with owning the trade names and, therefore, not having to pay royalties for use over its estimated useful life. The Company utilizes the replacement cost approach in its quantitative impairment test for certificates of need and licenses. Under this method, assumptions are made about the cost to replace the certificates of need and licenses. During the twelve months ended December 31, 2015, 2014 and 2013, the Company recorded impairment charges related to indefinite-lived intangible assets of $0.6 million, $2.0 million and $0.5 million, respectively. During the twelve months ended December 31, 2015 and 2014, the Company recognized $0.3 million and $1.4 million, respectively, of disposal costs related to other indefinite-lived intangible assets associated with the closure of underperforming locations. Due to/from Governmental Entities The Company’s LTACHs are reimbursed for certain activities based on tentative rates. The amounts recorded in due to/from governmental entities on the Company’s consolidated balance sheets relate to settled and open cost reports that are subject to the completion of audits and the issuance of final assessments. Final reimbursement is determined based on submission of annual cost reports and audits by the fiscal intermediary. Adjustments are accrued on an estimated basis in the period the related services were rendered and further adjusted as final settlements are determined. These adjustments are accounted for as changes in estimates. Additionally, reimbursements received in excess of hospice cap amounts are recorded in this account. Property, Building and Equipment Property, building and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the individual assets. The estimated useful life of buildings is 39 years, while the estimated useful lives of transportation equipment and furniture and other equipment range from 3 to 10 years. The useful life for leasehold improvements is the shorter of the lease term or the expected life of the leasehold improvement. Assets that are sold or retired are written off and any gain or losses are recorded in operating income. Routine repairs and maintenance costs are expensed as incurred. Property, building and equipment are reviewed whenever events or changes in circumstances occur that indicate possible impairment. There were no impairments recognized during the periods ended December 31, 2015, 2014 or 2013. The following table describes the Company’s components of property, building and equipment for the years ended December 31, 2015 and 2014 (amounts in thousands):
Depreciation expense for the years ended December 31, 2015, 2014 and 2013 was $10.0 million, $7.5 million and $6.9 million, respectively, which was recorded in general and administrative expenses. Noncontrolling Interest The nonredeemable interest held by third parties in subsidiaries owned or controlled by the Company is reported on the consolidated balance sheets as noncontrolling interest as a component of stockholders’ equity. Redeemable interest held by third parties in subsidiaries owned or controlled by the Company is reported on the consolidated balance sheets outside of permanent equity. All noncontrolling interest reported in the consolidated statements of income reflects the respective interests in the income or loss after income taxes of the subsidiaries attributable to the other parties, the effect of which is removed from the net income attributable to the Company. Stock-Based Compensation The Company grants restricted stock or restricted stock units to employees and members of its Board of Directors as a form of compensation. The expense for such awards is based on the grant date fair value of the award and is recognized on a straight-line basis over the requisite service period. See Note 7 to these consolidated financial statements. Earnings Per Share The following table sets forth shares used in the computation of basic and diluted per share information for the years ended December 31, 2015, 2014 and 2013:
Recently Issued Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-9, Revenue from Contracts with Customers, ("ASU 2014-9") which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-9 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-9 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. On November 20, 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, ("ASU 2015-17") which requires an entity with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The new standard is effective for the Company on January 1, 2017; however, early adoption is permitted. The Company is electing to early adopt the new standard effective December 31, 2015. The standard permits the use of prospective transition and, as such, prior periods were not adjusted in the Company's financial statements. |
Acquisitions and Disposals |
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Acquisitions and Disposals | 3. Acquisitions and Disposals 2015 Acquisitions On October 1, 2015, the Company acquired 100% of the membership interests of Halcyon Healthcare, LLC ("Halcyon"). Halcyon has 16 hospice locations throughout Alabama, Mississippi, and South Carolina. On November 11, 2015, the Company acquired 100% of the assets of Nurses' Registry and Home Health Corporation, LLC ("Nurses Registry"). Nurses Registry has five locations, four home health agencies and one community-based services agency, located in Kentucky. The goodwill associated with Halcyon and Nurses Registry was $47.2 million. In addition, the Company acquired the majority-ownership of five home health agencies, one hospice agency, and one community-based services agency during the twelve months ended December 31, 2015. The total aggregate purchase prices for the Company's acquisitions were $71.4 million, of which $70.1 million was paid in cash. The purchase prices are determined based on the Company's analysis of comparable acquisitions and the target market's potential future cash flows. The Company paid $0.4 million in acquisition-related costs, which was recorded in general and administrative expenses. The Company’s home health services segment, hospice services segment, and community-based services segment recognized aggregate goodwill of $7.1 million, $43.3 million, and $0.6 million, respectively. Goodwill generated from the acquisitions was recognized based on the expected contributions of each acquisition to the overall corporate strategy. The Company expects its portion of goodwill to be fully tax deductible. The acquisitions were accounted for under the acquisition method of accounting, and, accordingly, the accompanying financial information includes the results of operations of the acquired entities from the dates of acquisition. The following table summarizes the aggregate consideration paid for the acquisitions and the amounts of the assets acquired and liabilities assumed at the acquisition dates, as well as their fair value at the acquisition dates and the noncontrolling interest acquired (amounts in thousands):
Trade names, certificates of need and licenses are indefinite-lived assets and, therefore, not subject to amortization. Acquired trade names that are not being used actively are amortized over the estimated useful life on the straight line basis. Trade names are valued using the relief from royalty method, a form of the income approach. Certificates of needs are valued using the replacement cost approach based on registration fees and opportunity costs. Licenses are valued based on the estimated direct costs associated with recreating the asset, including opportunity costs based on an income approach. In the case of states with a moratorium in place, the licenses are valued using the multi period excess earnings method. The other identifiable assets include non-compete agreements that are amortized over the life of the agreements, ranging from one to three years. Noncontrolling interest is valued at fair value by applying a discount to the value of the acquired entity for lack of control. The Company has conducted a preliminary assessment of deferred income tax accounting and the calculation of the final net working capital adjustment and has recognized provision amounts in it is initial accounting for the acquisition of Halcyon for all identified liabilities in accordance with the requirements of ASC Topic 805. However, the Company is continuing its review of these matters during the measurement period, and if new information obtained about facts and circumstances that existed at the acquisition date identified adjustments to the assets and liabilities initially recognized, the acquisition accounting will be revised to reflect the resulting adjustments to the provisional amounts initially recognized. The following table contains unaudited pro forma consolidated income statement information assuming the 2015 acquisitions closed January 1, 2014 (amount in thousands, except earnings per share):
The pro forma information presented above includes adjustments for (i) depreciation expense, (ii) amortization of identifiable intangible assets, (iii) income tax provision using the Company’s effective tax rate and (iv) estimate of additional costs to provide administrative costs for these locations. This pro forma information is presented for illustrative purposes only and may not be indicative of the results of operations that would have actually occurred. In addition, future results may vary significantly from the results reflected in the pro forma information. 2014 Acquisitions The total aggregate purchase price for the Company’s acquisitions, which closed in the twelve months ended December 31, 2014, was $75.5 million, of which $73.9 million was paid in cash. The purchase prices are determined based on an analysis of comparable acquisitions and the target market’s potential future cash flows. The company paid $1.0 million in acquisition-related costs, which was recorded in general and administrative expenses. The Company’s home health services segment, hospice services segment, and community-based services segment recognized aggregate goodwill of $22.9 million, $5.3 million, and $17.1 million, respectively. Goodwill generated from the acquisitions was recognized based on the expected contributions of each acquisition to the overall corporate strategy. The Company expects its portion of goodwill to be fully tax deductible. |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangibles, Net | The following table summarizes changes in goodwill by reporting unit during the twelve months ended December 31, 2015 and 2014 (amounts in thousands):
The Company determined that there was no impairment for the goodwill of any reporting units as of December 31, 2015, 2014 and 2013 based on the Company's annual impairment testing; however, the Company did record $0.4 million and $0.2 million of disposal of goodwill during the years ended December 31, 2015 and 2014, respectively, due to the closure of underperforming locations. This was recorded in impairment of intangibles and other. The Company performed an impairment analysis on its indefinite-lived intangible assets related to the Company's trade names, licenses and certificates of need to determine the fair values as of November 30, 2015 and 2014. Lower revenue expectations caused by payor contract changes and projected Medicare reimbursement cuts reduced the fair values of certain intangible assets below their carrying values. Based on that analysis, the Company recorded an impairment charge of $0.6 million, $2.0 million, and $0.5 million for the years ended December 31, 2015, 2014 and 2013, respectively, which was recorded in impairment of intangibles and other. The following tables summarize the changes in intangible assets during the twelve months ended December 31, 2015 and 2014 (amounts in thousands):
Intangible assets of $66.4 million, net of accumulated amortization, related to the home health services segment, $21.8 million related to the hospice segment, $7.3 million related to the community-based services segment and $0.9 million related to the facility-based services segment as of December 31, 2015. Amortization for the years ended December 31, 2015, 2014 and 2013 was $1.9 million, $2.1 million and $1.5 million, respectively, which was recorded in general and administrative expenses. Disposal of Intangible Assets in Company’s Subsidiary During the twelve months ended December 31, 2015 and 2014, the Company disposed of intangible assets for underperforming providers in the home health segment. The loss on the disposal of these providers was $0.3 million and $1.4 million, respectively, which was recorded in impairment of intangibles and other. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax | 5. Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred taxes are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax laws that will be in effect when the differences are expected to reverse. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2015 and 2014 were as follows (amounts in thousands):
Based on the Company’s historical pattern of taxable income, the Company believes it will produce sufficient income in the future to realize its deferred income tax assets. Management provides a valuation allowance for any net deferred tax assets when it is more likely than not that a portion of such net deferred tax assets will not be recovered. The components of the Company’s income tax expense from continuing operations, less noncontrolling interest, were as follows (amounts in thousands):
A reconciliation of the difference between the federal statutory tax rate and the Company's effective tax rate for income taxes for each period is as follows:
A reconciliation of the differences between income tax expense on net income attributable to the Company, computed at the federal statutory rate and provisions for income taxes for each period is as follows (amounts in thousands):
The Company is subject to both federal tax and state income tax for jurisdictions within which it operates. Within these jurisdictions, the Company is open to examination for tax years ended after December 31, 2011. As of December 31, 2015, $3.4 million was recorded in income tax payable as an unrecognized tax benefit which, if recognized, would decrease the Company’s effective tax rate. All of the Company's unrecognized tax benefit is due to the settlement with the United States of America, which was announced September 30, 2011. On July 31, 2014, the Internal Revenue Service ("IRS") issued a notice of proposed adjustment asserting that a portion of the original tax deduction claimed by the Company associated with the settlement of the United States of America should be disallowed. The Company is currently appealing this proposed adjustment with the IRS Appeals. The Company intends to vigorously defend its original position of the deductibility of the full settlement on its 2011 tax return. A reconciliation of the total amounts of unrecognized tax benefits follows (amounts in thousands):
The Company recognizes interest and penalties related to uncertain tax positions in interest expense and general and administrative expenses, respectively. During the years ended December 31, 2015, 2014 and 2013, the Company recognized $0.2 million each year in interest expense, and recorded an accrued liability of interest payments related to uncertain tax positions. |
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Debt | 6. Debt Credit Facility On June 18, 2014, the Company entered into a Credit Agreement (the “Credit Agreement”) with Capital One, National Association, which provides a senior, secured revolving line of credit commitment with a maximum principal borrowing limit of $225.0 million and a letter of credit sub-limit equal to $15.0 million. The expiration date of the Credit Agreement is June 18, 2019. Revolving loans under the Credit Agreement bear interest at either a (1) Base Rate, which is defined as a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate in effect on such day plus 0.5% (b) the Prime Rate in effect on such day and (c) the Eurodollar Rate for a one month interest period on such day plus 1.0%, plus a margin ranging from 0.75% to 1.5% per annum or (2) Eurodollar rate plus a margin ranging from 1.75% to 2.5% per annum. Swing line loans bear interest at the Base Rate. Borrowings under a Base Rate or Eurodollar Rate may be outstanding at any time; however, there shall not be more than 15 Eurodollar borrowings outstanding at any given time. The Company is required to pay a commitment fee for the unused commitments at rates ranging from 0.225% to 0.375% per annum depending upon the Company’s consolidated Leverage Ratio, as defined in the Credit Agreement. The Base Rate at December 31, 2015 was 4.50% and the Eurodollar rate was 2.42%. As of December 31, 2015, the interest rate on outstanding borrowings was 2.24%. As of December 31, 2015 the Company had $98.0 million drawn and letters of credit in the amount of $9.8 million outstanding under the credit facility. At December 31, 2014, the Company had $60.0 million drawn and letters of credit in the amount of $7.1 million outstanding under the credit facility. The scheduled principal payments on long-term debt for each of the five years subsequent to December 31, 2015 is as follows (amounts in thousands):
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Stockholders' Equity |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | 7. Stockholders’ Equity Stock Repurchase Program In October 2010, the Company’s Board of Directors authorized a program to repurchase shares of the Company’s common stock, par value $0.01 per share, from time to time, in an amount not to exceed $50.0 million (“Stock Repurchase Program”). During the twelve months ended December 31, 2015, 2014 and 2013, no shares were repurchased. In accordance with the terms of the Stock Repurchase Program, it expired on September 4, 2015. Equity Based Awards At the Company’s 2010 Annual Meeting of Stockholders, the stockholders of the Company approved the Company’s 2010 Long Term Incentive Plan (the “2010 Incentive Plan”). The 2010 Incentive Plan is administered by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”). A total of 1,500,000 shares of the Company’s common stock are reserved and 491,037 shares are available for issuance pursuant to awards granted under the 2010 Incentive Plan. A variety of discretionary awards for employees, officers, directors and consultants are authorized under the 2010 Incentive Plan, including incentive or non-qualified statutory stock options and nonvested stock. All awards must be evidenced by a written award certificate which will include the provisions specified by the Compensation Committee. The Compensation Committee will determine the exercise price for non-statutory stock options, which cannot be less than the fair market value of the Company's common stock as of the date of grant. In the event of a change of control as defined in the 2010 Incentive Plan, all restricted periods and restrictions imposed on non-performance based restricted stock awards will lapse and outstanding options will become immediately exercisable in full. Share Based Compensation Stock Options The following table represents stock options activity for the year ended December 31, 2015:
All options are fully vested and exercisable at December 31, 2015. There were no options granted and no compensation expense related to stock options grants recorded in the years ended December 31, 2015, 2014 or 2013. Nonvested Stock The Company issues stock-based compensation to employees in the form of nonvested stock, which is an award of common stock subject to certain restrictions. The awards, which the Company calls nonvested shares, generally vest over a five year period, conditioned on continued employment for the full incentive period. Compensation expense for the nonvested stock is recognized for the awards that are expected to vest. The expense is based on the fair value of the awards on the date of grant recognized on a straight-line basis over the requisite service period, which generally relates to the vesting period. During 2015, 2014 and 2013, respectively, 182,865, 172,545 and 198,243 nonvested shares were granted to employees pursuant to the 2010 Incentive Plan. The Company also issues nonvested stock to its independent directors of the Company’s Board of Directors. During 2015, 2014 and 2013, respectively, 16,200, 26,900 and 24,300 nonvested shares of stock were granted to the independent directors under the 2005 Director Compensation Plan. The shares issued under the 2005 Director Compensation Plan were drawn from the 1,500,000 shares reserved for issuance under the 2010 Incentive Plan. The shares fully vest one year from the date of the grant, except for grants provided to new directors, which vest one-third on the date of grant and one-third on each of the first two anniversaries of the grant date. The fair value of nonvested shares is determined based on the closing trading price of the Company’s shares on the grant date. The weighted average grant date fair values of nonvested shares granted during the years ended December 31, 2015, 2014 and 2013 were $34.06, $23.59 and $21.45, respectively. The following table represents the nonvested stock activity for the year ended December 31, 2015:
As of December 31, 2015, there was $9.5 million of total unrecognized compensation cost related to non-vested shares granted. That cost is expected to be recognized over the weighted average period of 2.96 years. The total fair value of shares vested in the year ended December 31, 2015 was $4.1 million and the total fair value of shares vested in the years December 31, 2014 and 2013 was $3.9 million each. The Company records compensation expense related to non-vested share awards at the grant date for shares that are awarded fully vested and over the vesting term on a straight line basis for shares that vest over time. The Company has recorded $4.2 million, $4.1 million and $3.9 million in compensation expense related to non-vested stock grants in the years ended December 31, 2015, 2014 and 2013, respectively. Employee Stock Purchase Plan In 2006, the Company adopted the Employee Stock Purchase Plan allowing eligible employees to purchase the Company’s common stock at 95% of the market price on the last day of each calendar quarter. There were 250,000 shares reserved for the plan. On June 20, 2013, the Amended and Restated Employee Stock Purchase Plan was approved by the Company’s stockholders. As a result of the amendment, the Employee Stock Purchase Plan was modified as follows:
The following table represents the shares issued during 2015, 2014 and 2013 under the Employee Stock Purchase Plan:
Treasury Stock In conjunction with the vesting of the non-vested shares of stock, recipients incur personal income tax obligations. The Company allows the recipients to turn in shares of common stock to satisfy those personal tax obligations. The Company redeemed 42,197, 40,716 and 40,608 shares of common stock related to these tax obligations during the years ended December 31, 2015, 2014 and 2013, respectively. |
Leases |
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Leases | 8. Leases In certain instances, state laws may prohibit the sale of a home nursing agency or hospitals may be reluctant to sell their home health agencies. In these instances, the Company, through its wholly owned subsidiaries, enters into a lease agreement for a Medicare and Medicaid license, as well as the associated provider number to provide home health or hospice services. As of December 31, 2015, the Company had three license lease arrangements to operate four home nursing agencies and three hospice agencies. One of the leases was entered into in 2007 and expires in 2017. Expense related to this lease was $0.2 million for each of the years ended December 31, 2015, 2014, and 2013, respectively. Payment due under this lease is $0.2 million in 2016. Two of the leases were amended during 2010 to extend the lease terms to one year with an automatic renewal clause of four years. Expense related to these leases was $0.5 million, $0.4 million, and $0.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. The lease payments associated with these leases are based on a percentage of quarterly net profits; therefore, the future payments will vary with the future profits. The Company leases office space and equipment at its various locations. Many of the leases contain renewal options with varying terms and conditions. Management expects that in the normal course of business, expiring leases will be renewed or, upon making a decision to relocate, replaced by leases for new locations. Operating lease terms range from three to ten years. Rent expense includes insurance, maintenance, and other costs as required by the lease. Total rental expense was $20.7 million, $21.1 million and $17.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. The Company began participating in a fleet program during 2014. The program allows employees that drive over 12,000 miles on an annual basis to qualify for a vehicle; all participation is voluntary. The individual operating leases are for a minimum of 12 months. Fleet expense was $7.2 million and $3.6 million for the years ended December 31, 2015 and 2014. Future minimum rental commitments under non-cancelable operating leases are as follows (amounts in thousands):
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Employee Benefit Plan |
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Text Block [Abstract] | |
Defined Contribution Plan Disclosure [Text Block] | 9. Employee Benefit Plan Defined Contribution Plan The Company sponsors a 401(k) plan for all eligible employees. The plan allows participants to contribute up to $18,000 in 2015, tax deferred (subject to IRS guidelines). The plan also allows discretionary Company contributions as determined by the Company’s Board of Directors. Effective January 1, 2006, the Company implemented a discretionary match of up to two percent of participating employee contributions. The employer contribution will vest 20% after two years and 20% each additional year until it is fully vested in year six. Contribution expense to the Company was $5.4 million, $4.7 million and $3.7 million in the years ended December 31, 2015, 2014 and 2013, respectively. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Contingencies The Company is involved in various legal proceedings arising in the ordinary course of business. Although the results of litigation cannot be predicted with certainty, management believes the outcome of pending litigation will not have a material adverse effect, after considering the effect of the Company’s insurance coverage, on the Company’s interim financial information. On June 13, 2012, a putative shareholder securities class action was filed against the Company and its Chairman and Chief Executive Officer in the United States District Court for the Western District of Louisiana, styled City of Omaha Police & Fire Retirement System v. LHC Group, Inc., et al., Case No. 6:12-cv-1609-JTT-CMH. The action was filed on behalf of LHC shareholders who purchased shares of the Company’s common stock between July 30, 2008 and October 26, 2011, alleging violations of Sections 10(b), 20(a) and 20A of the Securities Exchange Act of 1934, as amended. On June 16, 2014, following mediation, the parties entered into a Stipulation of Settlement. On August 5, 2014, the District Court entered an Order Preliminarily Approving Settlement and Providing for Notice. On March 3, 2015, the District Court entered its Judgments adopting the Report and Recommendation previously issued and dismissing the action with prejudice. The time for appeal has passed and no appeals were filed. This matter is now concluded. The Company's insurance carrier has funded the entire $7.9 million settlement amount. On October 18, 2013, a derivative complaint was filed by a purported Company shareholder against certain of the Company’s current and former executive officers, employees and members of its Board of Directors in the United States District Court for the Western District of Louisiana, styled Plummer v. Myers, et al., Case No. 6:13-cv-2899-JTT-CMH. The action was brought derivatively on behalf of the Company, which is also named as a nominal defendant. Plaintiff generally alleges that the individual defendants breached their fiduciary duties owed to the Company. The complaint also alleges claims for insider selling and unjust enrichment against the Company’s Chairman and Chief Executive Officer and the Company’s former President and Chief Operating Officer. On December 30, 2013, a related derivative complaint was filed by a purported Company shareholder against certain of the Company’s current and former executive officers, employees and members of its Board of Directors in the United States District Court of the Western District of Louisiana, styled McCormack v. Myers, et al., Case No. 6:13-cv-3301-JTT-CMH. The action was brought derivatively on the Company’s behalf and the Company was also named as a nominal defendant. Plaintiff generally alleges that the individual defendants breached their fiduciary duties owed to the Company and wasted corporate assets. Plaintiff also alleges that the Company’s Chairman and Chief Executive Officer caused false and misleading statements to be issued in violation of Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder and that the Company’s Directors are control persons under Section 20(a) of the Exchange Act. The complaint also alleges claims for insider selling, misappropriation of information and unjust enrichment against the Company’s Chairman and Chief Executive Officer and the Company’s former President and Chief Operating Officer. On March 25, 2014, the McCormack derivative action was consolidated with the Plummer derivative action described above and stayed. On October 7, 2015, the parties entered into a Stipulation of Settlement. On October 19, 2015, Plaintiffs filed an Unopposed Motion for Preliminary Approval of Proposed Derivative Settlement. On October 26, 2015, the District Court entered an Order Preliminarily Approving Settlement in the amount of $0.6 million. On January 11, 2016, the District Court entered its Order and Final Judgment approving the settlement and dismissing the consolidated action with prejudice. The Company's insurance carrier has funded the entire settlement amount, which was immediately releasable to Plaintiffs' counsel on January 11, 2016. The Company's balance sheet reflects the entire settlement in current assets as a receivable due from insurance carrier and correspondingly reflects the entire settlement in current liabilities as a legal settlement payable. Joint Venture Buy/Sell Provisions Most of the Company’s joint ventures include a buy/sell option that grants to the Company and its joint venture partners the right to require the other joint venture party to either purchase all of the exercising member’s membership interests or sell to the exercising member all of the non-exercising member’s membership interest, at the non-exercising member’s option, within 30 days of the receipt of notice of the exercise of the buy/sell option. In some instances, the purchase price is based on a multiple of the historical or future earnings before income taxes and depreciation and amortization of the equity joint venture at the time the buy/sell option is exercised. In other instances, the buy/sell purchase price will be negotiated by the partners and subject to a fair market valuation process. The Company has not received notice from any joint venture partners of their intent to exercise the terms of the buy/sell agreement nor has the Company notified any joint venture partners of its intent to exercise the terms of the buy/sell agreement. Compliance The laws and regulations governing the Company’s operations, along with the terms of participation in various government programs, regulate how the Company does business, the services offered and its interactions with patients and the public. These laws and regulations, and their interpretations, are subject to frequent change. Changes in existing laws or regulations, or their interpretations, or the enactment of new laws or regulations could materially and adversely affect the Company’s operations and financial condition. The Company is subject to various routine and non-routine governmental reviews, audits and investigations. In recent years, federal and state civil and criminal enforcement agencies have heightened and coordinated their oversight efforts related to the health care industry, including referral practices, cost reporting, billing practices, joint ventures and other financial relationships among health care providers. Violation of the laws governing the Company’s operations, or changes in the interpretation of those laws, could result in the imposition of fines, civil or criminal penalties, and/or termination of the Company’s rights to participate in federal and state-sponsored programs and suspension or revocation of the Company’s licenses. The Company believes that it is in material compliance with all applicable laws and regulations. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | 11. Segment Information The Company’s segments consist of home health services, hospice services, community-based services, and facility-based services. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. During the first quarter of 2015, the Company had a change in the composition of segments due to the community-based services meeting the criteria of qualitative thresholds established by ASC 280, Segment Reporting. Prior period segment data has been restated to reflect the newly reportable segment. Community-based services were previously included in home-based services. The following tables summarize the Company’s segment information for the twelve months ended December 31, 2015, 2014 and 2013 (amounts in thousands):
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Fair Value of Financial Instruments |
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Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 12. Fair Value of Financial Instruments The carrying amounts of the Company’s cash, receivables, accounts payable and accrued liabilities approximate their fair values. The estimated fair value of intangible assets was calculated using level 3 inputs based on the present value of anticipated future benefits. For the year ended December 31, 2015, the carrying value of the Company’s long-term debt approximates fair value as the interest rates approximates current rates. |
Allowance for Uncollectible Accounts |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Uncollectible Accounts | 13. Allowance for Uncollectible Accounts The following table summarizes the activity and ending balances in the allowance for uncollectible accounts for the twelve months ended December 31, 2015, 2014 and 2013 (amounts in thousands):
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Concentration of Risk |
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Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | 14. Concentration of Risk The Company’s Louisiana facilities accounted for approximately 21.0%, 22.7% and 26.0% of net service revenue during the years ended December 31, 2015, 2014 and 2013, respectively. Any material change in the current economic or competitive conditions in Louisiana could have a disproportionate effect on the Company’s overall business results. |
Unaudited Summarized Quarterly Financial Information |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Summarized Quarterly Financial Information | 15. Unaudited Summarized Quarterly Financial Information The following table represents the Company’s unaudited quarterly results of operations (amounts in thousands, except share data):
Because of the method used to calculate per share amounts, quarterly per share amounts may not necessarily total to the per share amounts for the entire year. |
Summary of Significant Accounting Policies (Policies) |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenue and expenses during the reporting period. Actual results could differ from those estimates. |
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Principles of Consolidation | Principles of Consolidation The consolidated financial statements include all subsidiaries and entities controlled by the Company. Control is defined by the Company as ownership of a majority of the voting interest of an entity. Third party equity interests in the consolidated joint ventures are reflected as noncontrolling interests in the Company’s consolidated financial statements. The following table summarizes the percentage of net service revenue earned by type of ownership or relationship the Company had with the operating entity for the periods presented for the years ending December 31:
All significant inter-company accounts and transactions have been eliminated in consolidation. All business combinations accounted for as purchases have been included in the consolidated financial statements from the respective dates of acquisition. The following discussion describes the Company’s consolidation policy with respect to its various ventures excluding wholly owned subsidiaries: Equity Joint Ventures A majority of the Company’s equity joint ventures are structured as limited liability companies in which the Company typically owns a majority equity interest ranging from 51% to 91%. Each member of all but one of the Company’s equity joint ventures participates in profits and losses in proportion to their equity interests. The Company has one equity joint venture partner whose participation in losses is limited. The Company consolidates these entities as the Company has the obligation to absorb losses of the entities and the right to receive benefits from the entities and generally has voting control over the entities. License Leasing Arrangements The Company, through wholly owned subsidiaries, leases home health licenses necessary to operate certain of its home nursing and hospice agencies. As with wholly owned subsidiaries, the Company owns 100% of the equity of these entities and consolidates them based on such ownership. Management Services The Company has various management services agreements under which the Company manages operations of certain agencies and facilities. The Company does not consolidate these agencies or facilities, as the Company does not have an ownership interest and does not have an obligation to absorb losses of the entities or the right to receive the benefits from the entities other than management fees. |
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Revenue Recognition | Revenue Recognition The Company reports net service revenue at the estimated net realizable amount due from Medicare, Medicaid and others for services rendered. The Company assesses the patient's ability to pay for their healthcare services at the time of patient admission based on the Company's verification of the patient's insurance coverage under the Medicare, Medicaid and other commercial or managed care insurance programs. All such payors contribute to the net service revenue of the Company's home health services, hospice services and facility-based services. The following table sets forth the percentage of net service revenue earned by category of payor for the years ending December 31:
The percentage of net service revenue contributed from each reporting segment was as follows for the years ending December 31:
Medicare Home Health Services The Company’s home nursing Medicare patients are classified into one of 153 home health resource groups prior to receiving services. Based on this home health resource group, the Company is entitled to receive a standard prospective Medicare payment for delivering care over a 60-day period referred to as an episode. The Company recognizes revenue based on the number of days elapsed during an episode of care within the reporting period. Final payments from Medicare may reflect one of four retroactive adjustments to ensure the adequacy and effectiveness of the total reimbursement: (a) an outlier payment if the patient’s care was unusually costly; (b) a low utilization adjustment if the number of visits was fewer than five; (c) a partial payment if the patient transferred to another provider before completing the episode; or (d) a payment adjustment based upon the level of therapy services required in the population base. Management estimates the impact of these payment adjustments based on historical experience and records this estimate during the period the services are rendered. The Company’s payment is also adjusted for geographic wage differences. In calculating the Company’s reported net service revenue from home nursing services, the Company adjusts the prospective Medicare payments by an estimate of the adjustments. Hospice Services The Company is paid by Medicare under a per diem payment system. The Company receives one of four predetermined daily or hourly rates based upon the level of care the Company furnished. The Company records net service revenue from hospice services based on the daily or hourly rate and recognizes revenue as hospice services are provided. Hospice payments are subject to an inpatient cap and an overall Medicare payment cap. The inpatient cap relates to individual programs receiving more than 20% of its total Medicare reimbursement from inpatient care services and the overall Medicare payment cap relates to individual programs receiving reimbursements in excess of a “cap amount,” calculated by multiplying the number of beneficiaries during the period by a statutory amount that is indexed for inflation. The determination for each cap is made annually based on the 12 -month period ending on October 31 of each year. The Company monitors its limits on a provider-by-provider basis and records an estimate of its liability for reimbursements received in excess of the cap amount. Annually, the Company receives notification of whether any of its hospice providers have exceeded either cap. Beginning with cap year ended October 1, 2014, CMS implemented a new process requiring hospice providers to self-report their cap liabilities and remit applicable payment by March 31 of the following year. Facility-Based Services Long-Term Acute Care Services. The Company is reimbursed by Medicare for services provided under the long-term acute care hospital (“LTACH”) prospective payment system. Each patient is assigned a long-term care diagnosis-related group. The Company is paid a predetermined fixed amount intended to reflect the average cost of treating a Medicare patient classified in that particular long-term care diagnosis-related group. For selected patients, the amount may be further adjusted based on length-of-stay and facility-specific costs, as well as in instances where a patient is discharged and subsequently re-admitted, among other factors. The Company calculates the adjustment based on a historical average of these types of adjustments for claims paid. Similar to other Medicare prospective payment systems, the rate is also adjusted for geographic wage differences. Revenue is recognized for the Company’s LTACHs as services are provided. Medicaid, managed care and other payors The Company’s Medicaid reimbursement is based on a predetermined fee schedule applied to each service provided. Therefore, revenue is recognized for Medicaid services as services are provided based on this fee schedule. Managed care and other payors reimburse the Company in a manner similar to either Medicare or Medicaid. Accordingly, the Company recognizes revenue from managed care and other payors in the same manner as the Company recognizes revenue from Medicare or Medicaid. Management Services The Company records management services revenue as services are provided in accordance with the various management services agreements to which the Company is a party. As described in the management services agreements, the Company provides billing, management and other consulting services suited to and designed for the efficient operation of the applicable home nursing agency. The Company is responsible for the costs associated with the locations and personnel required for the provision of services. The Company is compensated based on a percentage of cash collections for one management service agreement and reimbursed for operating expenses plus a percentage of operating net income for two management service agreements. |
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Account Receivable and Allowances for Uncollectible Accounts | Accounts Receivable and Allowances for Uncollectible Accounts The Company reports accounts receivable net of estimated allowances for uncollectible accounts and adjustments. Accounts receivable are uncollateralized and primarily consist of amounts due from Medicare, Medicaid, other third-party payors, and patients. To provide for accounts receivable that could become uncollectible in the future, the Company establishes an allowance for uncollectible accounts to reduce the carrying amount of such receivables to their estimated net realizable value. Because Medicare is the Company’s primary payor, the credit risk associated with receivables from other payors is limited. The Company believes the credit risk associated with its Medicare accounts, which have historically exceed 55.0% of its patient accounts receivable, is limited due to (i) the historical collection rate from Medicare and (ii) the fact that Medicare is a U.S. government payor. The Company does not believe that there are any other significant concentrations of receivables from any particular payor that would subject it to any significant credit risk in the collection of accounts receivable. The amount of the provision for bad debts is based upon the Company’s assessment of historical and expected net collections, business and economic conditions and trends in government reimbursement. Uncollectible accounts are written off when the Company has determined that the account will not be collected. A portion of the estimated Medicare prospective payment system reimbursement from each submitted home nursing episode is received in the form of a request for anticipated payment (“RAP”). The Company submits a RAP for 60% of the estimated reimbursement for the initial episode at the start of care. The full amount of the episode is billed after the episode has been completed. The RAP received for that particular episode is deducted from the final payment. If a final bill is not submitted within the greater of 120 days from the start of the episode, or 60 days from the date the RAP was paid, any RAPs received for that episode will be recouped by Medicare from any other Medicare claims in process for that particular provider. The RAP and final claim must then be resubmitted. For subsequent episodes of care contiguous with the first episode for a particular patient, the Company submits a RAP for 50% instead of 60% of the estimated reimbursement. The Company’s Medicare population is paid at a prospectively set amount that can be determined at the time services are rendered. The Company’s Medicaid reimbursement is based on a predetermined fee schedule applied to each individual service we provide. The Company’s managed care contracts are structured similar to either the Medicare or Medicaid payment methodologies. Because of its payor mix, the Company is able to calculate its actual amount due at the patient level and adjust the gross charges down to the actual amount at the time of billing. This negates the need to record an estimated contractual allowance when reporting net service revenue for each reporting period. |
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Business Combinations Policy | Business Combination The Company accounts for business combinations using the acquisition method. The assets typically acquired consist primarily of Medicare licenses, trade names, certificates of need and/or a non-compete agreement. The assets acquired and liabilities assumed, if any, are measured at fair value on the acquisition date using the appropriate valuation method. The noncontrolling interest associated with joint venture acquisitions is also measured and recorded at fair value as of the acquisition date. The residual purchase price is recorded as goodwill. The operations of the acquisitions are included in the consolidated financial statements from their respective dates of acquisition. |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company performs its annual impairment review of goodwill at November 30, and when a triggering event occurs between annual impairment tests. For 2015, the Company performed a qualitative assessment of goodwill and determined that it is not more likely than not that the fair values of its reporting units are less than the carrying amounts. The Company has not recognized any goodwill impairment charges in 2015, 2014 or 2013 related to the annual impairment testing. During the twelve months ended December 31, 2015 and 2014, the Company recognized a disposal of $0.4 million and $0.2 million, respectively, of goodwill associated with the closure of underperforming locations. Included in intangible assets are definite-lived assets subject to amortization such as non-compete agreements and defensive assets, which are defined as trade names that are not actively used. Amortization of definite-lived intangible assets is calculated on a straight-line basis over the estimated useful lives of the related assets, ranging from two to five years. The Company also has indefinite-lived assets that are not subject to amortization expense such as trade names, certificates of need and licenses to conduct specific operations within geographic markets. The Company has concluded that trade names, certificates of need and licenses have indefinite lives, because there are no legal, regulatory, contractual, economic or other factors that would limit the useful life of these intangible assets and the Company intends to renew and operate the certificates of need and licenses and use the trade names indefinitely. These indefinite-lived intangible assets are reviewed annually for impairment or more frequently if circumstances indicate impairment may have occurred. To determine whether an indefinite-lived intangible asset is impaired, the Company performs a qualitative assessment to support the conclusion that the indefinite-lived intangible asset is not impaired. Based on the results of that qualitative assessment, the Company may perform a quantitative test. The Company utilizes a relief-from-royalty method in its quantitative impairment test of trade names. Under this method, the fair value of the trade name is determined by calculating the present value of the after-tax cost savings associated with owning the trade names and, therefore, not having to pay royalties for use over its estimated useful life. The Company utilizes the replacement cost approach in its quantitative impairment test for certificates of need and licenses. Under this method, assumptions are made about the cost to replace the certificates of need and licenses. During the twelve months ended December 31, 2015, 2014 and 2013, the Company recorded impairment charges related to indefinite-lived intangible assets of $0.6 million, $2.0 million and $0.5 million, respectively. |
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Due To And Due From Governmental Entities | Due to/from Governmental Entities The Company’s LTACHs are reimbursed for certain activities based on tentative rates. The amounts recorded in due to/from governmental entities on the Company’s consolidated balance sheets relate to settled and open cost reports that are subject to the completion of audits and the issuance of final assessments. Final reimbursement is determined based on submission of annual cost reports and audits by the fiscal intermediary. Adjustments are accrued on an estimated basis in the period the related services were rendered and further adjusted as final settlements are determined. These adjustments are accounted for as changes in estimates. Additionally, reimbursements received in excess of hospice cap amounts are recorded in this account. |
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Property, Plant and Equipment | Property, Building and Equipment Property, building and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the individual assets. The estimated useful life of buildings is 39 years, while the estimated useful lives of transportation equipment and furniture and other equipment range from 3 to 10 years. The useful life for leasehold improvements is the shorter of the lease term or the expected life of the leasehold improvement. Assets that are sold or retired are written off and any gain or losses are recorded in operating income. Routine repairs and maintenance costs are expensed as incurred. Property, building and equipment are reviewed whenever events or changes in circumstances occur that indicate possible impairment. There were no impairments recognized during the periods ended December 31, 2015, 2014 or 2013. The following table describes the Company’s components of property, building and equipment for the years ended December 31, 2015 and 2014 (amounts in thousands):
Depreciation expense for the years ended December 31, 2015, 2014 and 2013 was $10.0 million, $7.5 million and $6.9 million, respectively, which was recorded in general and administrative expenses. |
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Noncontrolling Interest | Noncontrolling Interest The nonredeemable interest held by third parties in subsidiaries owned or controlled by the Company is reported on the consolidated balance sheets as noncontrolling interest as a component of stockholders’ equity. Redeemable interest held by third parties in subsidiaries owned or controlled by the Company is reported on the consolidated balance sheets outside of permanent equity. All noncontrolling interest reported in the consolidated statements of income reflects the respective interests in the income or loss after income taxes of the subsidiaries attributable to the other parties, the effect of which is removed from the net income attributable to the Company. |
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Share-based Compensation, Option and Incentive Plans | Stock-Based Compensation The Company grants restricted stock or restricted stock units to employees and members of its Board of Directors as a form of compensation. The expense for such awards is based on the grant date fair value of the award and is recognized on a straight-line basis over the requisite service period. See Note 7 to these consolidated financial statements. |
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Earnings Per Share | Earnings Per Share The following table sets forth shares used in the computation of basic and diluted per share information for the years ended December 31, 2015, 2014 and 2013:
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Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-9, Revenue from Contracts with Customers, ("ASU 2014-9") which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-9 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-9 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. On November 20, 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, ("ASU 2015-17") which requires an entity with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The new standard is effective for the Company on January 1, 2017; however, early adoption is permitted. The Company is electing to early adopt the new standard effective December 31, 2015. The standard permits the use of prospective transition and, as such, prior periods were not adjusted in the Company's financial statements. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of Net Service Revenue Earned By Type Of Ownership Or Relationship With Operating Entity | The following table summarizes the percentage of net service revenue earned by type of ownership or relationship the Company had with the operating entity for the periods presented for the years ending December 31:
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Percentage Of Net Service Revenue Earned By Category Of Payor | The following table sets forth the percentage of net service revenue earned by category of payor for the years ending December 31:
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Percentage Of Net Service Revenue Contributed From Each Reporting Segment | The percentage of net service revenue contributed from each reporting segment was as follows for the years ending December 31:
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Property, Plant and Equipment | The following table describes the Company’s components of property, building and equipment for the years ended December 31, 2015 and 2014 (amounts in thousands):
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Shares Used in Computation of Basic and Diluted per Share Information | The following table sets forth shares used in the computation of basic and diluted per share information for the years ended December 31, 2015, 2014 and 2013:
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Acquisitions and Disposals (Tables) |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Purchase Price Allocations Table | The following table summarizes the aggregate consideration paid for the acquisitions and the amounts of the assets acquired and liabilities assumed at the acquisition dates, as well as their fair value at the acquisition dates and the noncontrolling interest acquired (amounts in thousands):
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Pro Forma Consolidated Income Statement Information | The following table contains unaudited pro forma consolidated income statement information assuming the 2015 acquisitions closed January 1, 2014 (amount in thousands, except earnings per share):
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Goodwill and Other Intangibles, Net (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table summarizes changes in goodwill by reporting unit during the twelve months ended December 31, 2015 and 2014 (amounts in thousands):
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Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class Table |
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2015 and 2014 were as follows (amounts in thousands):
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Income Tax Expense (benefit) from Continuing operations, Less Noncontrolling Interest | The components of the Company’s income tax expense from continuing operations, less noncontrolling interest, were as follows (amounts in thousands):
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Statutory Rate and Provisions for Income Taxes | A reconciliation of the differences between income tax expense on net income attributable to the Company, computed at the federal statutory rate and provisions for income taxes for each period is as follows (amounts in thousands):
A reconciliation of the difference between the federal statutory tax rate and the Company's effective tax rate for income taxes for each period is as follows:
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Total amounts of Unrecognized Tax | A reconciliation of the total amounts of unrecognized tax benefits follows (amounts in thousands):
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Debt Schedule of Long-Term Debt Instruments (Tables) |
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Schedule of Maturities of Long-term Debt [Table Text Block] | The scheduled principal payments on long-term debt for each of the five years subsequent to December 31, 2015 is as follows (amounts in thousands):
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Stockholders' Equity (Tables) |
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Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table represents stock options activity for the year ended December 31, 2015:
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Nonvested Stock Activity | The following table represents the nonvested stock activity for the year ended December 31, 2015:
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Summary of Shares Issued Under Employee Stock Purchase Plan | The following table represents the shares issued during 2015, 2014 and 2013 under the Employee Stock Purchase Plan:
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum rental commitments under non-cancelable operating leases are as follows (amounts in thousands):
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Segment Information (Tables) |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables summarize the Company’s segment information for the twelve months ended December 31, 2015, 2014 and 2013 (amounts in thousands):
|
Allowance for Uncollectible Accounts Activity and Ending Balances (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | The following table summarizes the activity and ending balances in the allowance for uncollectible accounts for the twelve months ended December 31, 2015, 2014 and 2013 (amounts in thousands):
|
Unaudited Summarized Quarterly Financial Information (Tables) |
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Quarterly Results of Operations | The following table represents the Company’s unaudited quarterly results of operations (amounts in thousands, except share data):
|
Organization (Details) |
Dec. 31, 2015
ServiceProvider
State
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number Of Service Providers | ServiceProvider | 363 |
Number of States in which Entity Operates | State | 25 |
Summary of Significant Accounting Policies - Percentage of Net Service Revenue Earned by Type of Ownership or relationship with Operating Entity (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Health Care organization, Revenue [Abstract] | |||
Percentage of Net Service Revenue | 100.00% | 100.00% | 100.00% |
Wholly-owned Subsidiaries [Member] | |||
Health Care organization, Revenue [Abstract] | |||
Percentage of Net Service Revenue | 55.20% | 53.50% | 48.80% |
Equity Joint Ventures [Member] | |||
Health Care organization, Revenue [Abstract] | |||
Percentage of Net Service Revenue | 42.90% | 43.90% | 48.50% |
License Leasing Arrangements [Member] | |||
Health Care organization, Revenue [Abstract] | |||
Percentage of Net Service Revenue | 1.00% | 1.80% | 1.90% |
Management Services [Member] | |||
Health Care organization, Revenue [Abstract] | |||
Percentage of Net Service Revenue | 0.90% | 0.80% | 0.80% |
Summary of Significant Accounting Policies - Percentage of Net Service Revenue Earned by Category of Payor (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Significant Accounting Policies [Line Items] | |||
Percentage of net service revenue | 100.00% | 100.00% | 100.00% |
Medicare [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of net service revenue | 74.50% | 75.90% | 79.80% |
Medicaid [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of net service revenue | 1.50% | 1.40% | 1.40% |
Other [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of net service revenue | 24.00% | 22.70% | 18.80% |
Summary of Significant Accounting Policies - Percentage of Net Service Revenue Contributed from Each Reporting Segment (Detail) - Sales Revenue, Segment [Member] |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Health Care Organization, Revenue [Abstract] | |||
Percentage of net service revenue | 100.00% | 100.00% | 100.00% |
Home health services [Member] | |||
Health Care Organization, Revenue [Abstract] | |||
Percentage of net service revenue | 75.10% | 77.00% | 79.50% |
Hospice Entity [Member] | |||
Health Care Organization, Revenue [Abstract] | |||
Percentage of net service revenue | 10.50% | 9.20% | 8.50% |
Community-Based Services [Member] | |||
Health Care Organization, Revenue [Abstract] | |||
Percentage of net service revenue | 5.10% | 3.80% | 0.50% |
Facility-based services [Member] | |||
Health Care Organization, Revenue [Abstract] | |||
Percentage of net service revenue | 9.30% | 10.00% | 11.50% |
Summary of Significant Accounting Policies - Components of Property, Building and Equipment (Detail) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | $ 77,003 | $ 79,470 |
Less accumulated depreciation | 38,907 | 44,683 |
Property, Plant and Equipment, Net | 38,096 | 34,787 |
Land [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | 2,033 | 543 |
Building and improvements [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | 10,026 | 9,238 |
Transportation equipment [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | 6,912 | 6,191 |
Fixed equipment [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | 3,373 | 3,661 |
Office furniture and medical equipment [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | $ 54,659 | $ 59,837 |
Summary of Significant Accounting Policies - Shares Used in Computation of Basic and Diluted Per Share Information (Detail) - shares |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Weighted Average Shares Outstanding: | |||||||||||
Weighted average number of shares outstanding for basic per share calculation | 17,447,691 | 17,436,731 | 17,410,971 | 17,322,791 | 17,274,677 | 17,260,078 | 17,233,264 | 17,148,043 | 17,405,379 | 17,229,026 | 17,049,794 |
Effect of dilutive potential shares: | |||||||||||
Options | 3,663 | 4,284 | 4,058 | ||||||||
Nonvested Stock Awards | 138,488 | 82,023 | 78,899 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted (shares) | 17,647,483 | 17,610,953 | 17,529,100 | 17,489,483 | 17,419,423 | 17,356,916 | 17,277,224 | 17,268,716 | 17,547,531 | 17,315,333 | 17,132,751 |
Antidilutive shares | 200,525 | 173,360 | 182,225 |
Acquisitions and Disposals - Proforma Consolidated Income Statement Information (Detail) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Business Acquisition, Pro Forma Information [Abstract] | ||
Net Service Revenue | $ 868,075 | $ 789,761 |
Operating income | 67,520 | 45,671 |
Net income | $ 33,044 | $ 21,949 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 1.88 | $ 1.27 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 1.90 | $ 1.27 |
Goodwill and Other Intangibles, Net - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Indefinite-lived Intangible Assets [Line Items] | |||
Disposal Group, Including Discontinued Operation, Goodwill | $ 400 | $ 200 | |
Intangible Assets, Net (Excluding Goodwill) | 96,405 | 79,685 | |
Amortization | 1,900 | 2,100 | $ 1,500 |
Loss on disposition of intangible asset | 300 | 1,400 | |
Impairment of Intangible Assets (Excluding Goodwill) | 600 | $ 2,000 | $ 500 |
Home-based services [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | 66,400 | ||
Hospice Entity [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | 21,800 | ||
Community-Based Services [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | 7,300 | ||
Facility-based services [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 900 |
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Deferred tax assets: | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | $ 9,048 | $ 6,397 |
Accrued employee benefits | 5,260 | 4,195 |
Stock compensation | 1,068 | 1,228 |
Accrued self-insurance | 2,517 | 2,526 |
Acquisition costs | 1,651 | 1,510 |
Net operating loss carry forward | 983 | 927 |
Intangible asset impairment | 43 | 49 |
Uncertain tax position-state tax portion | 215 | 215 |
Deferred Tax Assets, Interest Expense | 254 | 186 |
Other | 93 | 121 |
Valuation allowance | (44) | (44) |
Deferred tax assets | 21,088 | 17,310 |
Deferred tax liabilities: | ||
Amortization of intangible assets | (35,355) | (29,370) |
Tax depreciation in excess of book depreciation | (8,201) | (7,994) |
Prepaid expenses | (655) | (697) |
Non-accrual experience accounting method | (606) | (1,459) |
Deferred tax liabilities | (44,817) | (39,520) |
Net deferred tax liability | $ (23,729) | $ (22,210) |
Income Taxes - Income Tax Expense (Benefit) from Continuing Operations, Less Noncontrolling Interest (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Current: | |||
Federal | $ 18,094 | $ 10,195 | $ 11,962 |
State | 3,232 | 1,916 | 1,546 |
Total Current | 21,326 | 12,111 | 13,508 |
Deferred: | |||
Federal | 1,389 | 2,187 | 1,448 |
State | 133 | 215 | 903 |
Total Deferred | 1,522 | 2,402 | 2,351 |
Total Income Tax Expense (Benefit) | $ 22,848 | $ 14,513 | $ 15,859 |
Income Taxes - Statutory Rate and Provisions for Income Taxes Percent (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal Statutory Tax Rate | 35.00% | 35.00% | 35.00% |
State Income Taxes, net of federal benefit | 3.90% | 3.50% | 3.50% |
Nondeductible Expense | 2.50% | 2.30% | 3.10% |
Credits and other | (0.00%) | (0.90%) | (0.00%) |
Effective Tax Rate | 41.40% | 39.90% | 41.60% |
Income Taxes Income Taxes- Statutory Rate and Provisions for Income Taxes (Detail) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Income Tax Disclosure [Abstract] | |||
Income taxes computed at federal statutory tax rate | $ 19,314 | $ 12,723 | $ 13,360 |
State income taxes, net of federal benefit | 2,184 | 1,407 | 1,641 |
Nondeductible expenses | 1,352 | 766 | 1,022 |
Other items | 278 | (99) | 101 |
Income tax credit | (280) | (284) | (265) |
Total Income Tax Expense (Benefit) | $ 22,848 | $ 14,513 | $ 15,859 |
Income Taxes - Additional Information (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Income Tax Disclosure [Abstract] | |
Tax payable as an unrecognized tax benefit | $ 3.4 |
Interest Expense For Unrecognized Tax Position | $ 0.2 |
Income Taxes - Total Amounts of Unrecognized Tax (Detail) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 3,415 | $ 3,415 |
Increases (decreases) in unrecognized tax benefits as a result of: | ||
Tax positions taken during the current period | $ 0 |
Debt - Schedule of Principal Payments on Long-Term Debt (Detail) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
2016 | $ 241 |
2017 | 256 |
2018 | 260 |
2019 | 98,027 |
2020 | 0 |
Total | $ 98,784 |
Shareholders' Equity- Nonvested Stock Activity (Detail) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Equity [Abstract] | |||
Nonvested Shares Outstanding, Number of Shares, Beginning Balance | 524,287 | ||
Granted, Number of Shares | 199,065 | ||
Vested, Number of Shares | 177,887 | ||
Forfeited, Number of Shares | 18,374 | ||
Nonvested Shares Outstanding, Number of Shares, Ending Balance | 527,091 | 524,287 | |
Nonvested Shares Outstanding, Weighted Average Grant Date Fair Value, Beginning Balance | $ 22.56 | ||
Grants, Weighted Average Grant Date Fair Value | 34.06 | $ 23.59 | $ 21.45 |
Vested, Weighted Average Grant Date Fair Value | 23.28 | ||
Forfeited, Weighted Average Grant Date Fair Value | 20.57 | ||
Nonvested Shares Outstanding, Weighted Average Grant Date Fair Value, Ending Balance | $ 26.64 | $ 22.56 |
Stockholders' Equity- Shares of Common Stock Issued During 2014 under Employee Stock Purchase Plan (Details) - $ / shares |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2011 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares Available, Beginning Balance | 213,760 | 61,247 | ||
Shares Authorized for Issuance | 250,000 | 250,000 | ||
Shares Issued during Period (Shares) | 22,723 | 36,305 | 38,459 | |
Shares Available, Ending Balance | 213,760 | 61,247 | ||
Shares Issued during Period (per Share Price) | $ 34.37 | $ 21.49 | $ 20.39 |
Leases - Additional information (Detail) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
|
Number Of License Lease Arrangements | 3 | ||
Home nursing agencies | 4 | ||
Hospice agencies | 3 | ||
Operating Leases Start Period | 2007 | ||
Operating Leases Expiration Period | 2017 | ||
Operating Leases, Rent Expense | $ 20,700 | $ 21,100 | $ 17,200 |
Operating Lease Period Minimum | 3 years | ||
Operating Lease Period Maximum | 10 years | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 25,207 | ||
Minimum Miles Required per Year for the Fleet Lease | 12,000 | ||
Minimum Period of the Fleet Lease | 12 months | ||
Fleet Lease's Expense | $ 7,200 | 3,600 | |
Lease Agreement For License | $ 500 | $ 400 | |
Minimum [Member] | |||
Operating Lease Period | 1 year | ||
Maximum [Member] | |||
Operating Lease Period | 4 years | ||
Lease 1 [Member] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 200 | ||
Lease Agreement For License | $ 200 | ||
Lease 2 [Member] | |||
Lease Agreement For License | $ 300 |
Leases - Future Minimum Rental Commitments Under Non-cancelable Operating Leases (Detail) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2016 | $ 25,207 |
2017 | 11,066 |
2018 | 6,766 |
2019 | 4,052 |
2020 | 2,609 |
Thereafter | 5,532 |
Operating Leases, Future Minimum Payments Due, Total | $ 55,232 |
Employee Benefit Plan - Additional Information (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Participants contribution | $ 18,000 | ||
Employer contribution | 2.00% | ||
Employer contribution | 20.00% | ||
Initial vesting period of employer contribution | 2 years | ||
Full vesting period of employer contribution | 6 years | ||
Contribution expenses | $ 5,400,000 | $ 4,700,000 | $ 3,700,000 |
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Receivable from Insurance Carrier | $ 550 | $ 7,850 | |
Joint Venture Buy Sell Option Period | 30 days |
Allowance for Uncollectible Accounts - Allowance for Uncollectible Accounts Activity and Ending Balances (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 18,582 | $ 14,334 | |
Additions | (19,243) | (15,780) | $ (13,929) |
Deductions | 11,113 | 11,532 | 11,458 |
Ending balance | $ 26,712 | $ 18,582 | $ 14,334 |
Concentration of Risk - Additional Information (Detail) |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|
Risks and Uncertainties [Abstract] | |||
Percentage Of Net Service Revenue Accounted By Facility | 21.00% | 22.70% | 26.00% |
Unaudited Summarized Quarterly Financial Information - Unaudited Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net service revenue | $ 218,993 | $ 204,122 | $ 200,172 | $ 193,079 | $ 193,371 | $ 187,713 | $ 188,867 | $ 163,681 | $ 816,366 | $ 733,632 | $ 658,283 |
Gross margin | 90,053 | 83,249 | 83,533 | 78,653 | 80,579 | 74,591 | 77,340 | 66,347 | 335,488 | 298,857 | 274,819 |
Net Income Attributable to LHC Group Inc.'s Common Stockholders | $ 7,735 | $ 8,845 | $ 8,950 | $ 6,805 | $ 5,534 | $ 6,174 | $ 6,061 | $ 4,068 | $ 32,335 | $ 21,837 | $ 22,342 |
Earnings Per Share - Basic: | |||||||||||
Net income attributable to LHC Group, Inc.' common stockholders | $ 0.44 | $ 0.51 | $ 0.51 | $ 0.39 | $ 0.32 | $ 0.36 | $ 0.35 | $ 0.24 | $ 1.86 | $ 1.27 | $ 1.31 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Net income attributable to LHC Group, Inc.' common stockholders | $ 0.44 | $ 0.50 | $ 0.51 | $ 0.39 | $ 0.32 | $ 0.36 | $ 0.35 | $ 0.24 | $ 1.84 | $ 1.26 | $ 1.30 |
Weighted Average Shares Outstanding: | |||||||||||
Basic | 17,447,691 | 17,436,731 | 17,410,971 | 17,322,791 | 17,274,677 | 17,260,078 | 17,233,264 | 17,148,043 | 17,405,379 | 17,229,026 | 17,049,794 |
Diluted | 17,647,483 | 17,610,953 | 17,529,100 | 17,489,483 | 17,419,423 | 17,356,916 | 17,277,224 | 17,268,716 | 17,547,531 | 17,315,333 | 17,132,751 |
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