Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Concentration of Net Operating Revenues and Net Patient Service Accounts Receivable by Payor and Payor Class

Our inpatient rehabilitation segment derived its Net operating revenues from the following payor sources:

	For the Year Ended December 31,
	2016		2015		2014
Medicare	73.3	%	73.2	%	73.9	%
Medicare Advantage	7.7	%	7.9	%	7.5	%
Managed care	11.2	%	11.1	%	11.3	%
Medicaid	3.0	%	2.5	%	1.8	%
Other third-party payors	1.8	%	2.0	%	1.8	%
Workers’ compensation	1.0	%	1.1	%	1.2	%
Patients	0.6	%	0.7	%	1.0	%
Other income	1.4	%	1.5	%	1.5	%
Total	100.0	%	100.0	%	100.0	%

Our home health and hospice segment derived its Net operating revenues from the following payor sources:

	For the Year Ended December 31,
	2016		2015		2014
Medicare	82.9	%	83.7	%	96.9	%
Medicare Advantage	8.7	%	7.7	%	0.7	%
Managed care	3.9	%	3.0	%	1.1	%
Medicaid	4.3	%	5.5	%	—	%
Other third-party payors	—	%	—	%	1.0	%
Workers’ compensation	—	%	—	%	0.3	%
Patients	0.1	%	0.1	%	—	%
Other income	0.1	%	—	%	—	%
Total	100.0	%	100.0	%	100.0	%

We derived consolidated Net operating revenues from the following payor sources:

	For the Year Ended December 31,
	2016		2015		2014
Medicare	75.2	%	74.9	%	74.1	%
Medicare Advantage	7.9	%	7.9	%	7.4	%
Managed care	9.8	%	9.8	%	11.2	%
Medicaid	3.2	%	3.0	%	1.8	%
Other third-party payors	1.4	%	1.7	%	1.8	%
Workers' compensation	0.8	%	0.9	%	1.2	%
Patients	0.5	%	0.6	%	1.0	%
Other income	1.2	%	1.2	%	1.5	%
Total	100.0	%	100.0	%	100.0	%

The concentration of net patient service accounts receivable by payor class, as a percentage of total net patient service accounts receivable, is as follows:

	As of December 31,
	2016		2015
Medicare	73.0	%	70.5	%
Managed care and other discount plans, including Medicare Advantage	18.5	%	19.7	%
Medicaid	2.7	%	2.9	%
Other third-party payors	3.3	%	4.1	%
Workers' compensation	1.6	%	1.9	%
Patients	0.9	%	0.9	%
Total	100.0	%	100.0	%

Useful Lives of Property and Equipment

Useful lives are generally as follows:

	Years
Buildings	10 to 30
Leasehold improvements	2 to 15
Vehicles	5
Furniture, fixtures, and equipment	2 to 10
Assets under capital lease obligations:
Real estate	15 to 25
Vehicles	3
Equipment	3 to 5

Property and equipment consists of the following (in millions):

	As of December 31,
	2016			2015
Land	$	125.3		$	113.3
Buildings	1,601.4			1,521.1
Leasehold improvements	115.2			96.2
Vehicles	11.8			10.0
Furniture, fixtures, and equipment	425.3			392.7
	2,279.0			2,133.3
Less: Accumulated depreciation and amortization	(982.4		)	(874.3		)
	1,296.6			1,259.0
Construction in progress	95.2			51.1
Property and equipment, net	$	1,391.8		$	1,310.1

Estimated Useful Lives and Amortization Basis of Other Finite-lived Intangible Assets

The range of estimated useful lives and the amortization basis for our intangible assets, excluding goodwill, are generally as follows:

	Estimated Useful Life and Amortization Basis
Certificates of need	10 to 30 years using straight-line basis
Licenses	10 to 20 years using straight-line basis
Noncompete agreements	1 to 18 years using straight-line basis
Trade names:
Encompass	indefinite-lived asset
All other	1 to 20 years using straight-line basis
Internal-use software	3 to 7 years using straight-line basis
Market access assets	20 years using accelerated basis

The following table provides information regarding our other intangible assets (in millions):

	Gross Carrying Amount		Accumulated Amortization			Net
Certificates of need:
2016	$	98.6	$	(12.9	)	$	85.7
2015	93.9		(6.9		)	87.0
Licenses:
2016	$	142.0	$	(62.1	)	$	79.9
2015	138.9		(53.7		)	85.2
Noncompete agreements:
2016	$	62.2	$	(47.3	)	$	14.9
2015	58.0		(37.0		)	21.0
Trade name - Encompass:
2016	$	135.2	$	—		$	135.2
2015	135.2		—			135.2
Trade names - all other:
2016	$	34.6	$	(13.9	)	$	20.7
2015	32.9		(11.5		)	21.4
Internal-use software:
2016	$	181.4	$	(110.2	)	$	71.2
2015	155.7		(90.5		)	65.2
Market access assets:
2016	$	13.2	$	(9.5	)	$	3.7
2015	13.2		(8.8		)	4.4
Total intangible assets:
2016	$	667.2	$	(255.9	)	$	411.3
2015	627.8		(208.4		)	419.4

Estimated Basis of Other Indefinite-lived Intangible Assets

The range of estimated useful lives and the amortization basis for our intangible assets, excluding goodwill, are generally as follows:

	Estimated Useful Life and Amortization Basis
Certificates of need	10 to 30 years using straight-line basis
Licenses	10 to 20 years using straight-line basis
Noncompete agreements	1 to 18 years using straight-line basis
Trade names:
Encompass	indefinite-lived asset
All other	1 to 20 years using straight-line basis
Internal-use software	3 to 7 years using straight-line basis
Market access assets	20 years using accelerated basis