Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

7. SEGMENT INFORMATION

Our operations involve servicing patients through our two reportable business segments: home health and hospice. Our home health segment delivers a wide range of services in the home of individuals who may be recovering from surgery, have a chronic disability or terminal illness or need assistance with the essential activities of daily living. Our hospice segment provides palliative care and comfort to terminally ill patients and their families. The "other" column in the following tables consists of costs relating to corporate support functions that are not directly attributable to a specific segment.

Management evaluates performance and allocates resources based on the operating income of the reportable segments, which exclude corporate expenses, but includes revenues and all other costs directly attributable to the specific segment. Segment assets are not reviewed by the company's chief operating decision maker and therefore are not disclosed below. The following table summarizes our segment information for the periods indicated (amounts in millions):

	For the Three-Month Period Ended June 30, 2011
	Home Health		Hospice			Other			Total
Net service revenue	$	326.4	$	47.3		$	—		$	373.7
Cost of service, excluding depreciation and amortization		167.6		25.5			—			193.1
General and administrative expenses		73.5		9.7			47.6			130.8
Provision for doubtful accounts		2.2		(0.1	)		—			2.1
Depreciation and amortization		3.8		0.2			5.7			9.7
Operating expenses		247.1		35.3			53.3			335.7
Operating income	$	79.3	$	12.0		$	(53.3	)	$	38.0
	For the Three-Month Period Ended June 30, 2010
	Home Health		Hospice			Other			Total
Net service revenue	$	388.0	$	34.3		$	—		$	422.3
Cost of service, excluding depreciation and amortization		190.7		18.6			—			209.3
General and administrative expenses		91.1		7.9			45.1			144.1
Provision for doubtful accounts		4.0		0.5			—			4.5
Depreciation and amortization		3.9		0.1			4.3			8.3
Operating expenses		289.7		27.1			49.4			366.2
Operating income	$	98.3	$	7.2		$	(49.4	)	$	56.1
	For the Six-Month Period Ended June 30, 2011
	Home Health		Hospice			Other			Total
Net service revenue	$	651.9	$	86.1		$	—		$	738.0
Cost of service, excluding depreciation and amortization		338.4		45.9			—			384.3
General and administrative expenses		150.2		17.8			95.8			263.8
Provision for doubtful accounts		5.4		(0.1	)		—			5.3
Depreciation and amortization		7.0		0.3			11.8			19.1
Operating expenses		501.0		63.9			107.6			672.5
Operating income	$	150.9	$	22.2		$	(107.6	)	$	65.5
	For the Six-Month Period Ended June 30, 2010
	Home Health		Hospice			Other			Total
Net service revenue	$	768.5	$	66.8		$	—		$	835.3
Cost of service, excluding depreciation and amortization		377.7		35.7			—			413.4
General and administrative expenses		177.4		15.7			85.5			278.6
Provision for doubtful accounts		7.8		1.0			—			8.8
Depreciation and amortization		7.5		0.2			8.8			16.5
Operating expenses		570.4		52.6			94.3			717.3
Operating income	$	198.1	$	14.2		$	(94.3	)	$	118.0