SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

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 homes 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.

As of June 30, 2013, we classified 34 care centers as held for sale and sold three care centers which are reflected as discontinued operations in accordance with applicable accounting guidance. See Note 3 – Discontinued Operations and Assets Held for Sale for additional information. Prior periods have been reclassified to conform to the current presentation.

Management evaluates performance and allocates resources based on the operating income of the reportable segments, which includes an allocation of corporate expenses directly attributable to the specific segment and 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 (amounts in millions).

	For the Three-Month Periods Ended June 30, 2013
		Home Health		Hospice		Other		Total
Net service revenue	$	248.6	$	64.5	$	0.0	$	313.1
Cost of service, excluding depreciation and amortization		142.0		34.1		0.0		176.1
General and administrative expenses		75.6		15.6		25.7		116.9
Provision for doubtful accounts		3.0		1.6		0.0		4.6
Depreciation and amortization		2.6		0.5		8.6		11.7
Operating expenses		223.2		51.8		34.3		309.3
Operating income (loss)	$	25.4	$	12.7	$	(34.3)	$	3.8
	For the Three-Month Periods Ended June 30, 2012
		Home Health		Hospice		Other		Total
Net service revenue	$	290.6	$	72.5	$	0.0	$	363.1
Cost of service, excluding depreciation and amortization		165.3		37.3		0.0		202.6
General and administrative expenses		81.5		17.8		31.6		130.9
Provision for doubtful accounts		3.9		0.6		0.0		4.5
Depreciation and amortization		3.4		0.3		6.0		9.7
Operating expenses		254.1		56.0		37.6		347.7
Operating income (loss)	$	36.5	$	16.5	$	(37.6)	$	15.4
	For the Six-Month Periods Ended June 30, 2013
		Home Health		Hospice		Other		Total
Net service revenue	$	508.8	$	130.4	$	0.0	$	639.2
Cost of service, excluding depreciation and amortization		291.3		68.9		0.0		360.2
General and administrative expenses		155.1		32.8		52.2		240.1
Provision for doubtful accounts		5.0		3.5		0.0		8.5
Depreciation and amortization		5.3		1.1		15.2		21.6
Operating expenses		456.7		106.3		67.4		630.4
Operating income (loss)	$	52.1	$	24.1	$	(67.4)	$	8.8
	For the Six-Month Periods Ended June 30, 2012
		Home Health		Hospice		Other		Total
Net service revenue	$	578.4	$	140.6	$	0.0	$	719.0
Cost of service, excluding depreciation and amortization		328.5		73.1		0.0		401.6
General and administrative expenses		165.6		34.0		59.7		259.3
Provision for doubtful accounts		8.8		1.4		0.0		10.2
Depreciation and amortization		6.6		0.6		12.3		19.5
Operating expenses		509.5		109.1		72.0		690.6
Operating income (loss)	$	68.9	$	31.5	$	(72.0)	$	28.4