SUBSEQUENT EVENT

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENT

SUBSEQUENT EVENTS

Novel Coronavirus Pandemic ("COVID-19")

In March 2020, the World Health Organization declared COVID-19 a pandemic. As a healthcare at home company, we have been and will continue to be impacted by the effects of COVID-19; however, we remain committed to carrying out our mission of caring for our patients. We will continue to closely monitor the impact of COVID-19 on all aspects of our business, including the impacts to our employees, patients and suppliers; however, at this time, we are unable to estimate the ultimate impact the pandemic will have on our consolidated financial condition, results of operations or cash flows.

On March 27, 2020, the bipartisan Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was signed into legislation. The CARES Act provides for $100 billion to healthcare providers, including hospitals on the front lines of the COVID-19 pandemic. Of this total allocated amount, $30 billion was distributed immediately to providers based on their proportionate share of Medicare fee-for-service reimbursements in 2019. Healthcare providers must sign an attestation confirming receipt of the funds and agree to the terms and conditions of payment. We received approximately $100 million from the first $30 billion of funds distributed to healthcare providers in April 2020. Consistent with the terms and conditions for receipt of the payment, we will utilize the funds to cover lost revenue and health care costs related to COVID-19, and we will properly and fully document the use of these funds in required quarterly reports to the U.S. Department of Health and Human Services ("HHS").

In order to properly attest to receipt of our payment, we are seeking clarity from HHS regarding the formula utilized to determine our receipt of funds and the total amount of funds available to us to be used towards lost revenue and health care expenses related to COVID-19. At this time, we have fully separated these funds into their own account and will not be utilizing any of them until additional clarity is received from HHS.

On April 24, 2020, HHS distributed an additional $20 billion in funds to healthcare providers. We did not receive, nor apply, for any additional funds from this second distribution.

Acquisitions

On April 23, 2020, we signed a definitive agreement to acquire Homecare Preferred Choice, Inc., doing business as AseraCare Hospice ("AseraCare Hospice"), a national hospice care provider with 44 locations, for a purchase price of $235 million in cash, inclusive of $32 million in payments related to the present value of the tax benefits created through the transaction (subject to customary adjustments at closing for working capital, cash indebtedness and transaction expenses). We will not use any of the funds we received from the CARES Act to fund the acquisition.