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Significant Payors
12 Months Ended
Dec. 31, 2021
Significant Payors [Abstract]  
Significant Payors

14. Significant Payors

For 2021, 2020 and 2019, the Company’s revenue by payor type was as follows:

 

 

 

Personal Care

 

 

 

 

For the Years Ended December 31,

 

 

 

 

2021

 

 

 

2020

 

 

 

2019

 

 

 

 

Amount

(in Thousands)

 

 

% of

Segment

Net

Service

Revenues

 

 

 

Amount

(in Thousands)

 

 

% of

Segment

Net

Service

Revenues

 

 

 

Amount

(in Thousands)

 

 

% of

Segment

Net

Service

Revenues

 

 

State, local and other governmental programs

 

$

338,325

 

 

 

49.3

 

%

 

$

324,670

 

 

 

50.2

 

%

 

$

303,479

 

 

 

52.2

 

%

Managed care organizations

 

 

311,801

 

 

 

45.5

 

 

 

 

287,032

 

 

 

44.3

 

 

 

 

239,559

 

 

 

41.3

 

 

Private pay

 

 

19,991

 

 

 

2.9

 

 

 

 

20,398

 

 

 

3.2

 

 

 

 

21,765

 

 

 

3.7

 

 

Commercial insurance

 

 

9,820

 

 

 

1.4

 

 

 

 

9,991

 

 

 

1.5

 

 

 

 

9,204

 

 

 

1.6

 

 

Other

 

 

5,917

 

 

 

0.9

 

 

 

 

5,142

 

 

 

0.8

 

 

 

 

6,721

 

 

 

1.2

 

 

Total personal care segment net service revenues

 

$

685,854

 

 

 

100.0

 

%

 

$

647,233

 

 

 

100.0

 

%

 

$

580,728

 

 

 

100.0

 

%

 

 

 

Hospice

 

 

 

 

For the Years Ended December 31,

 

 

 

 

2021

 

 

 

2020

 

 

 

2019

 

 

 

 

Amount

(in Thousands)

 

 

% of Segment

Net Service

Revenues

 

 

 

Amount

(in Thousands)

 

 

% of Segment

Net Service

Revenues

 

 

 

Amount

(in Thousands)

 

 

% of Segment

Net Service

Revenues

 

 

Medicare

 

$

142,086

 

 

 

93.3

 

%

 

$

94,068

 

 

 

92.9

 

%

 

$

49,649

 

 

 

92.6

 

%

Managed care organizations

 

 

5,664

 

 

 

3.7

 

 

 

 

4,931

 

 

 

4.9

 

 

 

 

2,768

 

 

 

5.2

 

 

Other

 

 

4,503

 

 

 

3.0

 

 

 

 

2,298

 

 

 

2.2

 

 

 

 

1,184

 

 

 

2.2

 

 

Total hospice segment net service revenues

 

$

152,253

 

 

 

100.0

 

%

 

$

101,297

 

 

 

100.0

 

%

 

$

53,601

 

 

 

100.0

 

%

 

 

 

Home Health

 

 

 

 

For the Years Ended December 31,

 

 

 

 

2021

 

 

 

2020

 

 

 

2019

 

 

 

 

Amount

(in Thousands)

 

 

% of Segment

Net Service

Revenues

 

 

 

Amount

(in Thousands)

 

 

% of Segment

Net Service

Revenues

 

 

 

Amount

(in Thousands)

 

 

% of Segment

Net Service

Revenues

 

 

Medicare

 

$

20,700

 

 

 

78.4

 

%

 

$

12,765

 

 

 

78.6

 

%

 

$

11,218

 

 

 

77.6

 

%

Managed care organizations

 

 

4,457

 

 

 

16.9

 

 

 

 

3,188

 

 

 

19.6

 

 

 

 

2,942

 

 

 

20.3

 

 

Other

 

 

1,235

 

 

 

4.7

 

 

 

 

292

 

 

 

1.8

 

 

 

 

302

 

 

 

2.1

 

 

Total home health segment net service revenues

 

$

26,392

 

 

 

100.0

 

%

 

$

16,245

 

 

 

100.0

 

%

 

$

14,462

 

 

 

100.0

 

%

 

The Company derives a significant amount of its revenue from its operations in Illinois, New Mexico and New York. The percentages of segment revenue for each of these significant states for 2021, 2020 and 2019 were as follows:

 

 

 

Personal Care

 

 

 

 

For the Years Ended December 31,

 

 

 

 

2021

 

 

 

2020

 

 

 

2019

 

 

 

 

Amount

(in Thousands)

 

 

% of

Segment

Net

Service

Revenues

 

 

 

Amount

(in Thousands)

 

 

% of

Segment

Net

Service

Revenues

 

 

 

Amount

(in Thousands)

 

 

% of

Segment

Net

Service

Revenues

 

 

Illinois

 

$

328,619

 

 

 

47.9

 

%

 

$

288,326

 

 

 

44.6

 

%

 

$

247,524

 

 

 

42.6

 

%

New York

 

 

99,732

 

 

 

14.5

 

 

 

 

115,510

 

 

 

17.8

 

 

 

 

108,403

 

 

 

18.7

 

 

New Mexico

 

 

97,784

 

 

 

14.3

 

 

 

 

86,618

 

 

 

13.4

 

 

 

 

75,666

 

 

 

13.0

 

 

All other states

 

 

159,719

 

 

 

23.3

 

 

 

 

156,779

 

 

 

24.2

 

 

 

 

149,135

 

 

 

25.7

 

 

Total personal care segment net service revenues

 

$

685,854

 

 

 

100.0

 

%

 

$

647,233

 

 

 

100.0

 

%

 

$

580,728

 

 

 

100.0

 

%

 

 

 

 

Hospice

 

 

 

 

For the Years Ended December 31,

 

 

 

 

2021

 

 

 

2020

 

 

 

2019

 

 

 

 

Amount

(in Thousands)

 

 

% of Segment

Net Service

Revenues

 

 

 

Amount

(in Thousands)

 

 

% of Segment

Net Service

Revenues

 

 

 

Amount

(in Thousands)

 

 

% of Segment

Net Service

Revenues

 

 

Ohio

 

$

61,415

 

 

 

40.3

 

%

 

$

 

 

 

 

%

 

$

 

 

 

 

%

New Mexico

 

 

36,063

 

 

 

23.7

 

 

 

 

42,648

 

 

 

42.1

 

 

 

 

38,790

 

 

 

72.4

 

 

All other states

 

 

54,775

 

 

 

36.0

 

 

 

 

58,649

 

 

 

57.9

 

 

 

 

14,811

 

 

 

27.6

 

 

Total hospice segment net service revenues

 

$

152,253

 

 

 

100.0

 

%

 

$

101,297

 

 

 

100.0

 

%

 

$

53,601

 

 

 

100.0

 

%

 

With the acquisition of Queen City Hospice, the Company expanded its hospice services in the state of Ohio.

 

 

 

Home Health

 

 

 

 

For the Years Ended December 31,

 

 

 

 

2021

 

 

 

2020

 

 

 

2019

 

 

 

 

Amount

(in Thousands)

 

 

% of Segment

Net Service

Revenues

 

 

 

Amount

(in Thousands)

 

 

% of Segment

Net Service

Revenues

 

 

 

Amount

(in Thousands)

 

 

% of Segment

Net Service

Revenues

 

 

New Mexico

 

$

24,735

 

 

 

93.7

 

%

 

$

16,245

 

 

 

100.0

 

%

 

$

14,462

 

 

 

100.0

 

%

Illinois

 

 

1,657

 

 

 

6.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total home health segment net service revenues

 

$

26,392

 

 

 

100.0

 

%

 

$

16,245

 

 

 

100.0

 

%

 

$

14,462

 

 

 

100.0

 

%

 

With the acquisition of Summit, the Company expanded its home health services in the state of Illinois.

A substantial portion of the Company’s revenue and accounts receivable are derived from services performed for state and local governmental agencies. We derive a significant amount of our net service revenues in Illinois, which represented 38.2%, 37.7% and 38.2% of our net service revenues for the years ended December 31, 2021, 2020 and 2019, respectively. The Illinois Department on Aging, the largest payor program for the Company’s Illinois personal care operations, accounted for 21.4%, 23.0% and 25.3% of the Company’s net service revenues for 2021, 2020 and 2019, respectively.

The related receivables due from the Illinois Department on Aging represented 16.1% and 15.9% of the Company’s net accounts receivable at December 31, 2021 and 2020, respectively.

In 2019, New York initiated a new Request For Offer (“RFO”) process to competitively procure CDPAP fiscal intermediaries. The Company was not selected in the initial RFO process. We submitted a formal protest in response to the selection process, which was filed and accepted in March 2021, but have not yet received a response to the formal protest. The Company recognized approximately $42 million and $3 million in net service revenue and operating income, respectively, from the program for the year ended December 31, 2021.

The New York fiscal year 2022 state budget included a provision to add additional fiscal intermediaries (one or two entities per county with specified population sizes, plus entities that meet various other requirements) to those awarded contracts as a Lead Fiscal Intermediary under the initial RFO process, based on the scoring of the original RFO. As scoring of RFOs was not publicly released, it is unknown at this time if the Company’s score ranked high enough to qualify for these additional awards. The Company has submitted a response to the survey issued by the New York Department of Health to determine the additional contract awards. The New York Department of Health published an anticipated contract start date for all awards to be no earlier than November 1, 2021, but has not yet announced the exact start date. No later than the contract start date, we will be required to begin transitioning patients within the CDPAP to a fiscal intermediary that has been awarded a contract and cease providing services to those patients. The Company continues to consider other arrangements and to pursue our protest of the award. Given the uncertainty surrounding the program, the Company has suspended materially all of its new patient admissions under the New York CDPAP program.