Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company identifies its segments according to how the chief operating decision maker evaluates financial performance and allocates resources. The Company’s reportable segments consist of the critical illness recovery hospital segment, rehabilitation hospital segment, outpatient rehabilitation segment, and Concentra segment. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Other activities include the Company’s corporate shared services, certain investments, and employee leasing services provided to related parties affiliated through the Company’s equity method investments. For the years ended December 31, 2021 and 2022, the Company’s other activities also include other operating income related to the recognition of payments received under the Provider Relief Fund for health care related expenses and loss of revenue attributable to the coronavirus disease 2019 (“COVID-19”). Refer to Note 21 – CARES Act for further information.

The Company evaluates the performance of its segments based on Adjusted EBITDA. Adjusted EBITDA is defined as earnings excluding interest, income taxes, depreciation and amortization, gain (loss) on early retirement of debt, stock compensation expense, gain (loss) on sale of businesses, and equity in earnings (losses) of unconsolidated subsidiaries. The Company has provided additional information regarding its reportable segments, such as total assets, which contributes to the understanding of the Company and provides useful information to the users of the consolidated financial statements.

The following tables summarize selected financial data for the Company’s reportable segments.

	For the Year Ended December 31, 2021
	Critical Illness Recovery Hospital		Rehabilitation Hospital		Outpatient Rehabilitation		Concentra		Other		Total
	(in thousands)
Revenue	$	2,246,772	$	849,340	$	1,084,361	$	1,732,041	$	292,001	$	6,204,515
Adjusted EBITDA	267,993		184,704		138,275		389,616		(33,229)		947,359
Total assets	2,304,116		1,194,136		1,348,316		2,275,345		238,258		7,360,171
Capital expenditures	65,690		13,003		36,301		46,787		18,756		180,537

	For the Year Ended December 31, 2022
	Critical Illness Recovery Hospital		Rehabilitation Hospital		Outpatient Rehabilitation		Concentra		Other		Total
	(in thousands)
Revenue	$	2,234,132	$	916,763	$	1,125,282	$	1,724,359	$	333,002	$	6,333,538
Adjusted EBITDA	111,344		198,034		101,860		334,337		(98,712)		646,863
Total assets	2,484,542		1,200,767		1,371,123		2,281,647		327,214		7,665,293
Capital expenditures	79,524		14,426		40,677		45,983		9,762		190,372

	For the Year Ended December 31, 2023
	Critical Illness Recovery Hospitals		Rehabilitation Hospitals		Outpatient Rehabilitation		Concentra		Other		Total
	(in thousands)
Revenue	$	2,299,773	$	979,585	$	1,188,914	$	1,838,081	$	357,705	$	6,664,058
Adjusted EBITDA	246,015		221,875		111,868		361,334		(133,667)		807,425
Total assets	2,496,886		1,233,888		1,380,447		2,330,206		248,204		7,689,631
Capital expenditures	93,036		21,922		38,776		69,340		6,126		229,200

A reconciliation of Adjusted EBITDA to income before income taxes is as follows:

	For the Year Ended December 31, 2021
	Critical Illness Recovery Hospital		Rehabilitation Hospital		Outpatient Rehabilitation		Concentra		Other		Total
	(in thousands)
Adjusted EBITDA	$	267,993	$	184,704	$	138,275	$	389,616	$	(33,229)
Depreciation and amortization	(53,094)		(27,677)		(29,592)		(82,210)		(10,072)
Stock compensation expense	—		—		—		(2,142)		(28,798)
Income (loss) from operations	$	214,899	$	157,027	$	108,683	$	305,264	$	(72,099)	$	713,774
Equity in earnings of unconsolidated subsidiaries											44,428
Gain on sale of businesses											2,155
Interest income											5,350
Interest expense											(135,985)
Income before income taxes											$	629,722

	For the Year Ended December 31, 2022
	Critical Illness Recovery Hospital		Rehabilitation Hospital		Outpatient Rehabilitation		Concentra		Other		Total
	(in thousands)
Adjusted EBITDA	$	111,344	$	198,034	$	101,860	$	334,337	$	(98,712)
Depreciation and amortization	(61,565)		(27,814)		(32,663)		(73,667)		(10,116)
Stock compensation expense	—		—		—		(2,141)		(35,614)
Income (loss) from operations	$	49,779	$	170,220	$	69,197	$	258,529	$	(144,442)	$	403,283
Equity in earnings of unconsolidated subsidiaries											26,407
Interest expense											(169,111)
Income before income taxes											$	260,579

	For the Year Ended December 31, 2023
	Critical Illness Recovery Hospital		Rehabilitation Hospital		Outpatient Rehabilitation		Concentra		Other		Total
	(in thousands)
Adjusted EBITDA	$	246,015	$	221,875	$	111,868	$	361,334	$	(133,667)
Depreciation and amortization	(63,865)		(28,055)		(35,210)		(73,051)		(8,561)
Stock compensation expense	—		—		—		(651)		(43,158)
Income (loss) from operations	$	182,150	$	193,820	$	76,658	$	287,632	$	(185,386)	$	554,874
Loss on early retirement of debt											(14,692)
Equity in earnings of unconsolidated subsidiaries											40,813
Interest expense											(198,639)
Income before income taxes											$	382,356