DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 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 closed three home health care centers and consolidated five home health care centers and four hospice care centers with care centers servicing the same markets 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.

During 2010, we consolidated 59 home health care centers and three hospice care centers with care centers servicing the same markets, closed 19 home health care centers and four hospice care centers and discontinued the start-up process associated with 41 prospective unopened home health care centers and six prospective unopened hospice care centers 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 2012 (three home health care centers), 2011 (27 home health care centers and two hospice care centers) and 2010 (19 home health care centers and four hospice care centers) are presented as discontinued operations in our consolidated financial statements.

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

	For the Years Ended December 31,
	2012			2011			2010
Net revenues	$	0.1		$	17.4		$	33.2
(Loss) before income taxes		(2.1	)		(12.3	)		(17.7	)
Income tax benefit		0.8			4.8			6.9
Discontinued operations, net of tax	$	(1.3	)	$	(7.5	)	$	(10.8	)