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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Concentration of Net Operating Revenues by Payor

Our Net operating revenues disaggregated by payor source and segment are as follows (in millions):


	Inpatient Rehabilitation						Home Health and Hospice						Consolidated
	Year Ended December 31,						Year Ended December 31,						Year Ended December 31,
	2021		2020		2019		2021		2020		2019		2021		2020		2019
Medicare	$	2,589.7	$	2,375.5	$	2,537.3	$	906.5	$	896.0	$	920.0	$	3,496.2	$	3,271.5	$	3,457.3
Medicare Advantage	609.6		544.9		375.5		117.4		116.2		111.9		727.0		661.1		487.4
Managed care	484.5		371.4		342.7		65.4		47.8		39.1		549.9		419.2		381.8
Medicaid	163.1		140.1		110.3		15.5		15.6		18.4		178.6		155.7		128.7
Other third-party payors	46.0		43.0		43.4		—		—		—		46.0		43.0		43.4
Workers’ compensation	23.1		21.5		29.2		0.3		1.0		1.0		23.4		22.5		30.2
Patients	19.3		19.2		23.3		0.8		0.9		0.6		20.1		20.1		23.9
Other income	79.7		50.6		51.3		0.7		0.7		1.0		80.4		51.3		52.3
Total	$	4,015.0	$	3,566.2	$	3,513.0	$	1,106.6	$	1,078.2	$	1,092.0	$	5,121.6	$	4,644.4	$	4,605.0

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

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


	As of December 31,
	2021		2020
Medicare	63.6	%	66.5	%
Managed care and other discount plans, including Medicare Advantage	27.4	%	25.0	%
Medicaid	3.7	%	3.7	%
Other third-party payors	2.6	%	2.7	%
Workers' compensation	1.5	%	1.2	%
Patients	1.2	%	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

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


	As of December 31,
	2021		2020
Land	$	259.8	$	217.2
Buildings	2,632.8		2,357.0
Leasehold improvements	254.1		232.5
Vehicles	35.0		33.9
Furniture, fixtures, and equipment	606.1		537.9
	3,787.8		3,378.5
Less: Accumulated depreciation and amortization	(1,539.4)		(1,374.4)
	2,248.4		2,004.1
Construction in progress	353.2		202.5
Property and equipment, net	$	2,601.6	$	2,206.6

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:
2021	$	204.5	$	(68.8)	$	135.7
2020	197.3		(54.5)		142.8
Licenses:
2021	$	194.5	$	(121.0)	$	73.5
2020	187.9		(107.4)		80.5
Noncompete agreements:
2021	$	78.5	$	(69.0)	$	9.5
2020	75.2		(65.8)		9.4
Trade name - Encompass:
2021	$	135.2	$	—	$	135.2
2020	135.2		—		135.2
Trade names - all other:
2021	$	45.0	$	(27.0)	$	18.0
2020	44.3		(25.5)		18.8
Internal-use software:
2021	$	209.0	$	(164.9)	$	44.1
2020	184.2		(141.4)		42.8
Market access assets:
2021	$	13.2	$	(11.7)	$	1.5
2020	13.2		(11.4)		1.8
Total intangible assets:
2021	$	879.9	$	(462.4)	$	417.5
2020	837.3		(406.0)		431.3

Estimated Basis of Other Indefinite-lived Intangible Assets