Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

4. DISCONTINUED OPERATIONS

As part of our ongoing management of our portfolio of care centers, we conducted a review of our care centers' operating performance during 2011. Our review considered their current financial performance, market penetration, forecasted market growth and the impact of the proposed 2012 CMS payment revision. As a result of our review, we committed to a plan to exit 63 care centers during the fourth quarter of 2011. Of the 63 care centers, we consolidated 27 operating home health care centers and five operating hospice care centers with care centers servicing the same markets, closed 27 operating home health care centers and two operating hospice care center and discontinued the start-up process associated with two prospective unopened home health care centers.

During 2010, we consolidated 59 operating home health care centers and three operating hospice care centers with care centers servicing the same markets, closed 19 operating home health care centers and four operating hospice care centers and discontinued the start-up process associated with 41 prospective unopened home health care centers and six prospective unopened hospice locations which were incurring expenses. See Note 13 for additional information regarding our exit activities.

In accordance with applicable accounting guidance the care centers which were closed in 2011 (27 operating home health care centers and two operating hospice care centers) and closed in 2010 (19 operating home health care centers and four operating hospice care centers) are presented as discontinued operations in our consolidated financial statements.

Net revenues and operating results for the periods presented for the care centers closed is as follows (dollars in millions):

	For the Years Ended December 31,
	2011			2010			2009
Net revenues	$	15.4			30.5			29.1
(Loss) before income taxes		(11.4	)		(16.9	)		(7.0	)
Income tax benefit		4.4			6.6			2.7
Discontinued operations, net of tax	$	(7.0	)	$	(10.3	)	$	(4.3	)