DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2012

DISCONTINUED OPERATIONS

4. DISCONTINUED OPERATIONS

As part of our ongoing management of our portfolio of care centers, we review each care center’s current financial performance, market penetration, forecasted market growth and the impact of proposed CMS payment revisions. As a result of our review, we exited three home health care centers and consolidated one home health care center during 2012.

During 2011, we consolidated 27 home health care centers and five hospice care centers with care centers servicing the same markets, closed 27 home health care centers and two hospice care centers and discontinued the start-up process associated with two prospective unopened home health care centers.

In accordance with applicable accounting guidance, the care centers which were closed in 2012 (three home health care centers) and closed in 2011 (27 home health care centers and two hospice care centers) are presented as discontinued operations in our condensed consolidated financial statements.

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

	For the  Three-Month Periods Ended June 30,						For the Six-Month Periods  Ended June 30,
	2012			2011			2012			2011
Net revenues	$	(0.1	)	$	5.3		$	0.1		$	10.3
(Loss) before income taxes		(0.2	)		(2.1	)		(2.0	)		(4.8	)
Income tax benefit		0.1			0.8			0.8			1.9
Discontinued operations, net of tax	$	(0.1	)	$	(1.3	)	$	(1.2	)	$	(2.9	)