AlerisLife (ALR) 10-Q 10 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 07, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	FIVE STAR QUALITY CARE INC
Entity Central Index Key	1,159,281
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		49,046,115
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 22,016	$ 20,988
Accounts receivable, net of allowance of $4,371 and $3,416 at March 31, 2015 and December 31, 2014, respectively	38,499	38,814
Due from related persons	11,569	12,641
Investments in available for sale securities, of which $9,506 and $8,352 are restricted as of March 31, 2015 and December 31, 2014, respectively	25,352	23,436
Restricted cash	4,468	2,945
Prepaid and other current assets	20,705	21,494
Assets of discontinued operations	1,840	1,463
Total current assets	124,449	121,781
Property and equipment, net	357,118	357,186
Equity investment of an investee	6,904	6,827
Restricted cash	3,477	2,170
Restricted investments in available for sale securities	15,222	19,835
Goodwill and other intangible assets	25,694	25,904
Other long term assets	2,590	1,270
Total assets	535,454	534,973
Current liabilities:
Revolving credit facilities	35,000	35,000
Accounts payable and accrued expenses	89,653	85,606
Accrued compensation and benefits	44,286	34,171
Due to related persons	19,413	20,338
Mortgage notes payable	1,381	1,786
Accrued real estate taxes	11,042	11,282
Security deposits and current portion of continuing care contracts	7,074	7,235
Other current liabilities	25,527	19,470
Liabilities of discontinued operations	1,348	504
Total current liabilities	234,724	215,392
Accrued expenses	4,161	3,606
Long term liabilities:
Mortgage notes payable	43,281	49,373
Continuing care contracts	1,467	1,370
Accrued self-insurance obligations	33,407	37,268
Other long term liabilities	4,400	4,788
Total long term liabilities	$ 82,555	$ 92,799
Commitments and contingencies
Shareholders' equity:
Common stock, par value $.01: 75,000,000 shares authorized, 48,996,115 and 48,997,315 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively	$ 490	$ 490
Additional paid in capital	357,839	357,051
Accumulated deficit	(143,661)	(134,449)
Accumulated other comprehensive income	3,507	3,690
Total shareholders' equity	218,175	226,782
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 535,454	$ 534,973

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowance (in dollars)	$ 4,832	$ 3,416
Investments in available for sale securities, restricted (in dollars)	$ 10,279	$ 8,352
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	49,046,115	48,997,315
Common stock, shares outstanding	49,046,115	48,997,315

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Senior living revenue	$ 277,935	$ 275,388	$ 553,108	$ 547,169
Management fee revenue	2,699	2,433	5,222	4,858
Reimbursed costs incurred on behalf of managed communities	61,635	54,978	117,912	109,183
Total revenues	342,269	332,799	676,242	661,210
Operating expenses:
Senior living wages and benefits	136,351	134,179	269,604	266,962
Other senior living operating expenses	71,245	70,334	143,470	143,151
Costs incurred on behalf of managed communities	61,635	54,978	117,912	109,183
Rent expense	49,657	49,203	99,285	98,277
General and administrative	18,181	16,574	36,163	36,322
Depreciation and amortization	8,123	7,975	16,218	15,251
Total operating expenses	345,192	333,243	682,652	669,146
Operating loss	(2,923)	(444)	(6,410)	(7,936)
Interest, dividend and other income	243	213	463	409
Interest and other expense	(1,137)	(1,261)	(2,491)	(2,479)
(Loss) gain on early extinguishment of debt	692		692
Gain on sale of available for sale securities reclassified from other comprehensive income	18	13	38	326
Loss from continuing operations before income taxes and equity in earnings (loss) of an investee	(3,107)	(1,479)	(7,708)	(9,680)
(Provision for) benefit from income taxes	(280)	364	(584)	2,795
Equity in earnings (loss) of an investee	23	118	95	21
Loss from continuing operations	(3,364)	(997)	(8,197)	(6,864)
Loss from discontinued operations	(546)	(894)	(1,015)	(1,786)
Net loss	$ (3,910)	$ (1,891)	$ (9,212)	$ (8,650)
Weighted average shares outstanding- basic and diluted	48,399	48,013	48,382	48,007
Basic and diluted loss per share from:
Continuing operations	$ (0.07)	$ (0.02)	$ (0.17)	$ (0.14)
Discontinued operations	(0.01)	(0.02)	(0.02)	(0.04)
Net loss per share - basic and diluted	$ (0.08)	$ (0.04)	$ (0.19)	$ (0.18)

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net loss	$ (3,910)	$ (1,891)	$ (9,212)	$ (8,650)
Other comprehensive income (loss):
Unrealized gain on investments in available for sale securities, net of tax of $0 and $155, respectively	(576)	268	(126)	521
Equity in unrealized gain of an investee, net of tax	(64)	22	(19)	41
Realized gain on investments in available for sale securities reclassified and included in net loss, net of tax of $0 and $119, respectively	(18)	(8)	(38)	(202)
Other comprehensive income	(658)	282	(183)	360
Comprehensive loss	$ (4,568)	$ (1,609)	$ (9,395)	$ (8,290)

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unrealized gain on investments in available for sale securities tax	$ 0	$ 163	$ 0	$ 318
Realized gain in investments in available for sale securities reclassified and included in net loss, tax provision (benefit)	$ 0	$ 5	$ 0	$ 124

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (9,212)	$ (8,650)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization	16,496	15,774
Gain on early extinguishment of debt	(742)
Loss from discontinued operations before income tax	1,015	2,757
Gain on sale of available for sale securities	(38)	(326)
Loss on disposal of property and equipment	56
Equity in (earnings) loss of an investee	(95)	(21)
Stock-based compensation	788	559
Deferred income taxes		(4,756)
Provision for losses on receivables	2,880	2,607
Changes in assets and liabilities:
Accounts receivable	(2,565)	(4,255)
Prepaid expenses and other assets	(627)	1,832
Accounts payable and accrued expenses	4,081	15,096
Accrued compensation and benefits	10,115	8,096
Due to related persons, net	448	2,742
Other current and long term liabilities	1,358	3,569
Cash provided by operating activities	23,958	35,024
Cash flows from investing activities:
Deposits into restricted cash and investment accounts, net	(2,830)	7,900
Acquisition of property and equipment	(25,175)	(28,906)
Purchase of available for sale securities	(298)	(13,585)
Investment in an investee		(825)
Acquisition of senior living communities, net of liabilities assumed		(5,926)
Proceeds from sale of property and equipment to Senior Housing Properties Trust	8,902	17,423
Proceeds from sale of available for sale securities	2,817	8,225
Cash (used in) provided by investing activities	(16,584)	(15,694)
Cash flows from financing activities:
Proceeds from borrowings on credit facilities	5,000	5,000
Repayments of borrowings on credit facilities	(5,000)	(20,000)
Repayments of mortgage notes payable	(5,498)	(621)
Payment of deferred financing fees	(300)
Cash used in financing activities	(5,798)	(15,621)
Cash flows from discontinued operations:
Net cash (used in) provided by operating activities	(536)	7,748
Net cash used in investing activities	(12)
Net cash flows (used in) provided by discontinued operations	(548)	7,748
Change in cash and cash equivalents	1,028	11,457
Cash and cash equivalents at beginning of period	20,988	23,628
Cash and cash equivalents at end of period	22,016	35,085
Supplemental cash flow information:
Cash paid for interest	2,088	1,599
Cash paid (refunded) for income taxes, net	750	749
Non-cash activities:
Issuance of common stock	$ 206
Real estate acquisition		(15,518)
Assumption of mortgage note payable		$ 15,518

Basis of Presentation and Organ

Basis of Presentation and Organization	6 Months Ended
	Jun. 30, 2015
Basis of Presentation and Organization
Basis of Presentation and Organization	Note 1. Basis of Presentation and Organizatio n General The accompanying condensed consolidated financial statements of Five Star Quality Care, Inc. and its subsidiaries, or we, us or our, are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles for complete financial statements have been condensed or omitted. We believe the disclosures made are adequate to make the information presented not misleading. However, the accompanying financial statements should be read in conjunction with the financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2014, or our Annual Report. In the opinion of our management, all adjustments, which include only normal recurring adjustments, considered necessary for a fair presentation have been included. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. Our operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. We operate senior living communities, including independent living communities, assisted living communities and skilled nursing facilities, or SNFs. As of June 30, 2015, we operated 272 senior living communities located in 32 states with 31,267 living units, including 241 primarily independent and assisted living communities with 28,460 living units and 31 SNFs with 2,807 living units. As of June 30, 2015, we owned and operated 31 communities ( 3,064 living units), we leased and operated 181 communities ( 20,035 living units) and we managed 60 communities ( 8,168 living units). Our 272 senior living communities, as of June 30, 2015, included 10,626 independent living apartments, 15,457 assisted living suites and 5,184 skilled nursing units. The foregoing numbers exclude: (i) one assisted living community with 32 living units that we own which is being offered for sale and is classified as a discontinued operation; and (ii) three SNFs with a total of 167 living units that we lease from Senior Housing Properties Trust or its subsidiaries, or SNH, that are being offered for sale and are classified as discontinued operations. Segment Information We have two operating segments: senior living communities and rehabilitation and wellness. In the senior living community segment, we operate for our own account or manage for the account of third parties independent living communities, assisted living communities and SNFs that are subject to centralized oversight and provide housing and services to elderly residents. Our rehabilitation and wellness operating segment does not meet any of the quantitative thresholds of a reportable segment as prescribed under Financial Accounting Standards Board, or FASB, Accounting Standards Codification TM , or ASC, Topic 280, and therefore we have determined that our business is comprised of one reportable segment, senior living. All of our operations and assets are located in the United States, except for the operations of our Cayman Islands organized captive insurance company subsidiary, which participates in our workers’ compensation, professional liability and automobile insurance programs.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2015
Recent Accounting Pronouncements
Recent Accounting Pronouncements	Note 2. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update, or ASU, No. 2014 ‑09, Revenue from Contracts with Customers , which outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This ASU clarifies the principles for recognizing revenue by, among other things, removing inconsistencies in revenue requirements, improving comparability of revenue recognition practices across entities and industries and providing improved disclosure requirements. In July 2015, the FASB approved a one year deferral of the effective date for this ASU to interim and annual reporting periods beginning after December 15, 2017; however, early adoption at the original effective date is still permitted. We are currently evaluating the impact that the adoption of this ASU will have on our consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), which excludes investments measured at net asset value, as a practical expedient for fair value, from the fair value hierarchy. This ASU is effective for interim and annual reporting periods beginning after December 15, 2015, and requires retrospective application, with early adoption permitted. The implementation of this ASU is not expected to have a material impact to the disclosures in our consolidated financial statements.

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2015
Property and Equipment
Property and Equipment	Note 3. Property and Equipment Property and equipment consists of the following: June 30, December 31, 2015 2014 Land $ $ Buildings and improvements Furniture, fixtures and equipment Property and equipment, at cost Accumulated depreciation Property and equipment, net $ $ We recorded depreciation expense relating to our property and equipment of $8,110 and $7,290 for the three months ended June 30, 2015 and 2014, respectively, and $15,978 and $14,283 for the six months ended June 30, 2015 and 2014, respectively. We review the carrying value of long lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If there is an indication that the carrying value of an asset is not recoverable, we determine the amount of impairment loss, if any, by comparing the historical carrying value of the asset to its estimated fair value. We determine estimated fair value based on input from market participants, our experience selling similar assets, market conditions and internally developed cash flow models that our assets or asset groups are expected to generate. We did not record impairment charges to any of our long lived assets in continuing operations for the three and six months ended June 30, 2015 or 2014. As of June 30, 2015, we had $8,205 of assets included in our property and equipment that we expect to request that SNH purchase from us for an increase in future rent; however, we are not obligated to make these sales and SNH is not obligated to fund such amounts. In March 2015, we entered into an agreement to acquire two independent living communities with 68 and 84 living units, respectively, located in Tennessee for an aggregate purchase price of approximately $26,000 , including the assumption of approximately $17,000 of mortgage debt. We expect to fund this acquisition with cash on hand and borrowings under our secured revolving credit facility. We currently expect this transaction to close during 2015. However, this acquisition is subject to various conditions; accordingly, we can provide no assurance that we will acquire these communities, that the acquisition will not be delayed or that the terms of this acquisition will not change.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	6 Months Ended
	Jun. 30, 2015
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income	Note 4. Accumulated Other Comprehensive Income The following table details the changes in accumulated other comprehensive income, net of tax, for the six months ended June 30, 2015: Equity Investment of an Investee Investments in Available for Sale Securities Accumulated Other Comprehensive Income Balance at January 1, 2015 $ $ $ Unrealized gain on investments, net of tax — Equity in unrealized gain of an investee — Reclassification adjustment: Realized gain on investments, net of tax — Balance at March 31, 2015 $ $ Unrealized loss on investments, net of tax — Equity in unrealized loss of an investee — Reclassification adjustment: Realized gain on investments, net of tax — Balance at June 30, 2015 $ $ Accumulated other comprehensive income represents the unrealized appreciation of our investments, net of tax, and our share of other comprehensive income of Affiliates Insurance Company, or AIC.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	Note 5. Income Taxes For the six months ended June 30, 2015, we recognized tax expense from our continuing operations of $584; we did not recognize any tax expense or benefit from our discontinued operations. As of December 31, 2014, our federal net operating loss carry forwards, which are scheduled to begin expiring in 2026 if unused, were approximately $112,182 and our tax credit carry forwards, which begin expiring in 2022 if unused, were approximately $17,191 . We have an additional $333 of federal net operating loss carry forwards not included in the $112,182 , that are attributable to unvested stock grants which will be recorded as an increase to additional paid in capital after they are realized in accordance with FASB ASC Topic 718. Our net operating loss carry forwards and tax credit carry forwards are subject to possible audits and adjustments by the Internal Revenue Service. During the year ended December 31, 2014, we determined it was more likely than not that our net deferred tax assets would not be realized and concluded that a full valuation allowance was required. In the future, if we believe that we will more likely than not realize the benefit of these deferred tax assets, we will adjust our valuation allowance and recognize an income tax benefit, which may affect our results of operations.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share
Earnings Per Share	Note 6. Earnings Per Share We computed basic earnings per common share, or EPS, for the three and six months ended June 30, 2015 and 2014 using the weighted average number of shares of our common stock, $.01 par value per share, or our common shares, outstanding during the periods. Diluted EPS reflects the more dilutive earnings per common share amount calculated using the two class method or the treasury stock method. The effect of our unvested restricted shares for the three and six months ended June 30, 2015 and 2014 was not included in the calculation of diluted EPS because to do so would have been antidilutive. The following table provides a reconciliation of loss from continuing operations and loss from discontinued operations and the number of common shares used in the computations of diluted EPS: Three Months Ended June 30, 2015 2014 Income Per Income Per (loss) Shares Share (loss) Shares Share Loss from continuing operations $ $ $ $ Dilutive effect of unvested restricted shares — — — — Diluted loss from continuing operations $ $ $ $ Diluted loss from discontinued operations $ $ $ $ Six Months Ended June 30, 2015 2014 Income Per Income Per (loss) Shares Share (loss) Shares Share Loss from continuing operations $ $ $ $ Dilutive effect of unvested restricted shares — — — — Diluted loss from continuing operations $ $ $ $ Diluted loss from discontinued operations $ $ $ $

Fair Values of Assets and Liabi

Fair Values of Assets and Liabilities	6 Months Ended
	Jun. 30, 2015
Fair Values of Assets and Liabilities
Fair Values of Assets and Liabilities	Note 7. Fair Values of Assets and Liabilities Our assets recorded at fair value have been categorized based upon a fair value hierarchy in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures. We apply the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets and quoted prices in inactive markets. Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. Recurring Fair Value Measures The tables below present the assets measured at fair value at June 30, 2015 and December 31, 2014 categorized by the level of inputs used in the valuation of each asset. As of June 30, 2015 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Assets Inputs Inputs Description Total (Level 1) (Level 2) (Level 3) Cash equivalents (1) $ $ $ — $ — Available for sale securities: (2) Equity securities Financial services industry — — REIT industry — — Other — — Total equity securities — — Debt securities International bond fund (3) — — High yield fund (4) — — Industrial bonds — — Government bonds — Financial bonds — — Other — — Total debt securities — Total available for sale securities — Total $ $ $ $ — As of December 31, 2014 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Assets Inputs Inputs Description Total (Level 1) (Level 2) (Level 3) Cash equivalents (1) $ $ $ — $ — Available for sale securities: (2) Equity securities Financial services industry — — REIT industry — — Other — — Total equity securities — — Debt securities International bond fund (3) — — High yield fund (4) — — Industrial bonds — — Government bonds — Financial bonds — — Other — — Total debt securities — Total available for sale securities — Total $ $ $ $ — (1) Cash equivalents, consisting of short term, highly liquid investments and money market funds held principally for obligations arising from our self insurance programs. Cash equivalents are reported on our balance sheet as cash and cash equivalents and current and long term restricted cash. Cash equivalents include $5,626 and $2,792 of balances that are restricted at June 30, 2015 and December 31, 2014, respectively. (2) Investments in available for sale securities are reported on our balance sheet as current and long term investments in available for sale securities and are reported at fair value of $25,352 and $15,222 , respectively, at June 30, 2015, and $23,436 and $19,835 , respectively, at December 31, 2014. Our investments in available for sale securities had amortized costs of $38,440 and $40,974 as of June 30, 2015 and December 31, 2014, respectively, had unrealized gains of $2,400 and $2,455 as of June 30, 2015 and December 31, 2014, respectively, and had unrealized losses of $266 and $157 as of June 30, 2015 and December 31, 2014, respectively. At June 30, 2015, 27 of the securities we hold, with a fair value of $7,494 , have been in a loss position for less than 12 months and nine of the securities we hold, with a fair value of $1,469 , have been in a loss position for greater than 12 months. We do not believe these securities are impaired primarily because they have not been in a loss position for an extended period of time, the financial conditions of the issuers of these securities remain strong with solid fundamentals, or we intend to hold these securities until recovery, and other factors that support our conclusion that the loss is temporary. During the six months ended June 30, 2015 and 2014, we received gross proceeds of $2,817 and $8,225 , respectively, in connection with the sales of available for sale securities and recorded gross realized gains totaling $38 and $349 , respectively, and gross realized losses totaling $0 and $23 , respectively. We record gains and losses on the sales of our available for sale securities using the specific identification method. (3) The investment strategy of this fund is to invest principally in fixed income securities. The fund invests in such securities or investment vehicles as it considers appropriate to achieve the fund’s investment objective, which is to provide an above average rate of total return while attempting to limit investment risk by investing in a diversified portfolio of U.S. dollar investment grade fixed income securities. There are no unfunded commitments and the investment can be redeemed weekly. (4) The investment strategy of this fund is to invest principally in fixed income securities. The fund invests in such securities or investment vehicles as it considers appropriate to achieve the fund’s investment objective, which is to provide an above average rate of total return while attempting to limit investment risk by investing in a diversified portfolio of primarily fixed income securities issued by companies with below investment grade ratings. There are no unfunded commitments and the investment can be redeemed weekly. During the six months ended June 30, 2015, we did not change the type of inputs used to determine the fair value of any of our assets and liabilities that we measure at fair value. Accordingly, there were no transfers of assets or liabilities between levels of the fair value hierarchy during the six months ended June 30, 2015. The carrying values of accounts receivable and accounts payable approximate fair value as of June 30, 2015 and December 31, 2014. The carrying value and fair value of our mortgage notes payable were $44,662 and $48,199 , respectively, as of June 30, 2015 and $51,159 and $56,099 , respectively, as of December 31, 2014, and are categorized in Level 3 of the fair value hierarchy in their entirety. We estimate the fair values of our mortgage notes payable by using discounted cash flow analyses and currently prevailing market terms as of the measurement date. Non-Recurring Fair Value Measures We review the carrying value of long lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset or asset group may not be recoverable. See Note 3 for a discussion of fair value measurements related to impairments of our long lived assets. We evaluate the recoverability of goodwill or other intangible assets in the fourth quarter of each fiscal year, or more frequently if events or changes in circumstances indicate that goodwill or other intangible assets may be impaired. As of October 1, 2014, we evaluated our goodwill for impairment and determined that the fair value of our reporting units exceeded their carrying values on that date. As of June 30, 2015, no events or changes in circumstances had occurred since October 1, 2014 that would trigger the need for an additional impairment review. Goodwill was valued primarily using discounted cash flow models that incorporate assumptions for each reporting unit’s short and long term revenue growth rates, operating margins, and discount rates, which represent our best estimates of current and forecasted market conditions, current cost structure, and the implied rate of return that management believes a market participant would require for an investment in a company having similar risks and business characteristics to the reporting unit being assessed. The fair value of assets held for sale is determined based on the use of appraisals, input from market participants, our experience selling similar assets and/or internally developed cash flow models, all of which are considered to be Level 3 fair value measurements.

Indebtedness

Indebtedness	6 Months Ended
	Jun. 30, 2015
Indebtedness
Indebtedness	Note 8. Indebtedness We have a $25,000 revolving secured line of credit, or our Credit Agreement, that is available for general business purposes, including acquisitions. The maturity date of our Credit Agreement is March 18, 2016. Borrowings under our Credit Agreement typically bear interest at LIBOR plus a premium of 250 basis points, or 2.69% as of June 30, 2015. We are also required to pay a quarterly commitment fee of 0.35 % per annum on the unused part of our borrowing availability under the Credit Agreement. We may draw, repay and redraw funds until maturity, and no principal repayment is due until maturity. We made no borrowings under our Credit Agreement during either of the six months ended June 30, 2015 and 2014 and, as of June 30, 2015, we had no amounts outstanding under our Credit Agreement. We incurred interest expense and other associated costs related to our Credit Agreement of $48 for each of the three months ended June 30, 2015 and 2014, and $96 for each of the six months ended June 30, 2015 and 2014. We are the borrower under our Credit Agreement and certain of our subsidiaries guarantee our obligations under our Credit Agreement, which is secured by our and our guarantor subsidiaries’ accounts receivable and related collateral. Our Credit Agreement provides for acceleration of payment of all amounts outstanding upon the occurrence and continuation of certain events of default, including a change of control of us, which includes termination of our business management agreement with Reit Management & Research LLC, or RMR LLC. We also have a $150,000 secured revolving credit facility, or our Credit Facility, that is available for general business purposes, including acquisitions. In April 2015, we exercised our option to extend the maturity date of our Credit Facility to April 13, 2016; we paid a fee of $300 in connection with this extension. Subject to the payment of an extension fee and meeting certain other conditions, we have the option to further extend the maturity date of our Credit Facility to April 13, 2017. Borrowings under our Credit Facility typically bear interest at LIBOR plus a premium of 250 basis points, or 2.69% as of June 30, 2015. We are also required to pay a quarterly commitment fee of 0.35% per annum on the unused part of our borrowing availability under our Credit Facility. We may draw, repay and redraw funds until maturity, and no principal repayment is due until maturity. The weighted average interest rate for borrowings under our Credit Facility was 2.74% and 2.79% for the six months ended June 30, 2015 and 2014, respectively. As of June 30, 2015, we had $35,000 outstanding under our Credit Facility. We incurred interest expense and other associated costs related to our Credit Facility of $404 and $542 for the three months ended June 30, 2015 and 2014, respectively, and $1,013 and $1,135 for the six months ended June 30, 2015 and 2014, respectively. We are the borrower under our Credit Facility, and certain of our subsidiaries guarantee our obligations under our Credit Facility, which is secured by real estate mortgages on 15 senior living communities with 1,549 living units owned by our guarantor subsidiaries and our guarantor subsidiaries’ accounts receivable and related collateral. Our Credit Facility provides for acceleration of payment of all amounts outstanding upon the occurrence and continuation of certain events of default, including a change of control of us. Our Credit Agreement and our Credit Facility contain a number of financial and other covenants, including covenants that restrict our ability to incur indebtedness or to pay dividends or make other distributions under certain circumstances and require us to maintain financial ratios and a minimum net worth. On March 13, 2015, we and the lenders under our Credit Agreement entered into Amendment No. 3 to the Credit and Security Agreement, which amended the defined term for EBITDA set forth in the Credit Agreement by excluding from the calculation of EBITDA certain costs associated with Medicare compliance deficiencies and made certain changes to the representations and warranties in the Credit Agreement to except certain failures to comply with Medicare billing, recordkeeping, reporting and related practices from events which may otherwise cause our default. At June 30, 2015, four of our senior living communities were encumbered by mortgage notes with an aggregate outstanding principal balance of $44,662 : (1) two of our communities were encumbered by Federal National Mortgage Association, or FNMA, mortgage notes and (2) two of our communities were encumbered by Federal Home Loan Mortgage Corporation, or FMCC, mortgage notes. These mortgages contain FNMA and FMCC standard mortgage covenants, respectively. We recorded a mortgage premium in connection with our assumption of the FNMA and FMCC mortgage notes as part of our acquisitions of the encumbered communities in order to record the assumed mortgage notes at their estimated fair value. We are amortizing the mortgage premiums as a reduction of interest expense until the maturity of the respective mortgage notes. The weighted average interest rate on these four notes was 6.48% as of June 30, 2015. Payments of principal and interest are due monthly under these mortgage notes until maturities at varying dates ranging from June 2018 to September 2032. We incurred mortgage interest expense, including premium amortization, of $683 and $671 for the three months ended June 30, 2015 and 2014, respectively, and $1,381 and $1,248 for the six months ended June 30, 2015 and 2014, respectively. Our mortgages require m onthly payments into escrows for taxes, insurance and property replacement funds; withdrawals from these escrows require applicable FNMA and FMCC approvals. In June 2015, we prepaid a mortgage note that had a principal balance of $4,873 and required interest at the contracted rate of 8.99% per annum . In connection with this repayment, we recorded a gain of $692 on early extinguishment of debt, net of unamortized premiums and a 1% prepayment penalty, in the second quarter of 2015. As of June 30, 2015, we believe we were in compliance with all applicable covenants under our Credit Agreement, Credit Facility and mortgages. See Note 3 for information regarding mortgage debt we expect to assume in connection with our pending acquisition of two independent living communities.

Off Balance Sheet Arrangements

Off Balance Sheet Arrangements	6 Months Ended
	Jun. 30, 2015
Off Balance Sheet Arrangements
Off Balance Sheet Arrangements	Note 9. Off Balance Sheet Arrangements We have pledged our accounts receivable and certain other assets, with a carrying value, as of June 30, 2015, of $13,742 , arising from our operation of 26 properties owned by SNH and leased to us to secure SNH’s borrowings from its lender, FNMA. As of June 30, 2015, we had no other off balance sheet arrangements that have had or that we expect would be reasonably likely to have a future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Related Person Transactions

Related Person Transactions	3 Months Ended
	Jun. 30, 2015
Related Person Transactions
Related Person Transactions	Note 10. Related Person Transactions We have relationships and historical and continuing transactions with SNH, RMR LLC and others related to them, including other companies to which RMR LLC provides management services and which have directors, trustees and officers who are also directors or officers of us or RMR LLC. For further information about these and other such relationships and certain other related person transactions, please refer to our Annual Report . SNH: We were formerly a 100% owned subsidiary of SNH until SNH spun us out to its shareholders in 2001. As of June 30, 2015, SNH owned 4,235,000 of our common shares, representing approximately 8.6% of our outstanding common shares, and SNH is our largest shareholder. As of June 30 , 2015, we leased 180 senior living communities from SNH. Our total minimum annual rent payable to SNH as of June 30 , 2015 and 2014 was $191,397 and $190,867 , respectively , excluding percentage rent. Our total rent expense under our leases with SNH, net of lease inducement amortization, was $48,973 and $48,822 for the three months ended June 30, 2015 and 2014, respectively, and $97,915 and $97,581 for the six months ended June 30, 2015 and 2014, respectively, which amounts included estimated percentage rent of $1,393 and $1,403 for the three months ended June 30, 2015 and 2014, respectively, and $2,824 and $2,819 for of the six months ended June 30, 2015 and 2014, respectively. As of June 30 , 2015 and December 31, 2014, we had outstanding rent due and payable to SNH of $17,286 and $17,310 , respectively. During the six months ended June 30 , 2015 and 2014, pursuant to the terms of our leases with SNH, we sold $8,902 and $17,423 , respectively, of improvements made to properties leased from SNH, and, as a result, our annual rent payable to SNH increased by approximately $717 and $1,395 , respectively . As of June 30 , 2015, our property and equipment included $8,205 for similar improvements we have made to properties we lease from SNH that we typically request that SNH purchase from us for an increase in future rent; however, we are not obligated to make these sales and SNH is not obligated to fund such amounts. In February 2015, SNH acquired a land parcel adjacent to a senior living community we lease from SNH for $490 . This property was added to the lease for that senior living community and our annual rent payable to SNH increased by $39 as a result . In February 2015, we and SNH sold a vacant assisted living communi ty located in Pennsylvania for $250 , and as a result of this sale, our annual minimum rent payable to SNH decreased by $23 in accordance with the terms of the applicable lease. In July 2015, we and SNH sold a SNF located in Iowa with 12 living units for $155 , and as a result of this sale, our annual minimum rent payable to SNH decreased by $16 in accordance with the terms of the applicable lease. In August 2015, we and SNH sold a SNF located in Wisconsin with 39 living units for $850 , and as a result of this sale, our annual minimum rent payable to SNH decreased by $85 in accordance with the terms of the applicable lease. As of June 30 , 2015, we managed 60 sen ior living communities for SNH; as of June 30, 2014, we managed 44 senior living communities for SNH. Pursuant to these management agreements with SNH, we earned management fees of $2,699 and $2,433 for the three months ended June 30, 2015 and 2014, respectively, and $5,222 and $4,858 for the six months ended June 30, 2015 and 2014, respectively. In May 2015, we began managing pursuant to 14 separate management agreements 14 senior living communities that SNH acquired at that time. The economic terms of these management agreements are substantially similar to our other management agreements with SNH for senior living communities including assisted living units. Also in May 2015, SNH acquired a senior living community with 40 private pay independent living units located in Georgia. This senior living community is adjacent to another community that we manage for SNH. The operations of this community and the community already managed are conducted as a single integrated community under the same management agreement. Pursuant to our management agreement with D&R Yonkers LLC, we earned management fees o f $54 and $59 for the three months ended June 30, 2015 and 2014, respectively, and $108 and $119 for the six months ended June 30, 2015 and 2014, respectively. SNH’s executive officers are the principals of D&R Yonkers LLC, which was established in order to accommodate certain state licensing requirements. RMR LLC: Pursuant to our business management agreement with RMR LLC , we recognized business management fees of $2,142 and $2,134 , and information sys tem service charges of $0 and $1,384 , for the three months ended June 30 , 201 5 and 2014, respectively, and business management fees of $4,269 and $4,140 , and information system service charges of $0 and $2,903 , for the six months ended June 30, 2015 and 2014, respectively. These amounts are included in general and administrative expenses in our condensed consolid ated statements of operations. On March 16, 2015, we and RMR LLC entered into an amended and restated business management agreement, which was approved by our Compensation Committee, comprised solely of our Independent Directors. As amended, RMR LLC may terminate the business management agreement upon 120 days’ written notice, and we continue to have the right to terminate the business management agreement upon 60 days’ written notice, subject to approval by a majority vote of our Independent Directors. As amended, if we terminate or do not renew the business management agreement other than for cause, as defined, we are obligated to pay RMR LLC a termination fee equal to 2.875 times the sum of the annual base management fee and the annual internal audit services expense, which amounts are based on averages during the 24 consecutive calendar months prior to the date of notice of termination or nonrenewal. If we terminate for cause, as defined, no termination fee is payable. Also, as amended, RMR LLC agrees to provide certain transition services to us for 120 days following termination by us or notice of termination by RMR LLC . Our rent expense for our headquarters that we le ase from an affiliate of R eit Management & Research Trust, or RMR Trust, was $436 and $317 for the three months ended June 30, 2015 and 2014, respectively, and $847 and $672 for the six months ended June 30, 2015 and 2014, respectively. RMR Trust is an owner of RMR LLC, our manager. AIC : As of June 30 , 2015, o ur investment in AIC had a carrying value of $6,904 . We recognized income of $23 and $118 related to our investment in AIC for the three months ended June 30, 2015 and 2014, respectively, and $95 and $21 for the six months ended June 30, 2015 and 2014, respectively. Our other comprehensive (loss) income includes unrealized (losses) gains on securities held for sale which are owned by AIC of $(64) and $22 for the three months ended June 30, 2015 and 2014, respectively, and $(19) and $41 for the six months ended June 30, 2015 and 2014, respectively. In June 2015, we and the other shareholders of AIC renewed our participation in an insurance program arranged by AIC. In connection with that renewal, we purchased a three year combined property insurance policy providing $500,000 of coverage annually with the premium to be paid annually and a one year combined policy providing terrorism coverage of $200,000 for our properties. We currently expect to pay aggregate annual premiums, including taxes and fees, of approximately $4,067 in connection with these policies for the policy year ending June 30, 2016, which amount may be adjusted from time to time as we acquire and dispose of properties that are included in this insurance program.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2015
Discontinued Operations
Discontinued Operations	Note 11. Discontinued Operations In June 2013, we decided to offer for sale one assisted living community we own with 32 living units. We are in the process of offering this community for sale. As of June 30, 2015, we had three senior living communities that we leased from SNH which were being offered for sale and included in our discontinued operations. Please see Note 10 for a discussion of the sale of two of these senior living communities in discontinued operations subsequent to June 30, 2015. We can provide no assurance that we will be able to sell the senior living community that we are offering for sale, or that we and SNH will be able to sell the remaining senior living community that we lease from SNH that i s being offered for sale, or what the terms or timing of any sales may be. We have reclassified our condensed consolidated balance sheets and condensed consolidated statements of operations for all periods presented to show the financial position and results of operations of our senior living communities that have been sold or are expected to be sold as discontinued. Below is a summary of the operating results of these discontinued operations included in the condensed consolidated financial statements for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues $ $ $ $ Expenses Benefit from income taxes — — Loss from discontinued operations $ $ $ $

Legal Proceedings and Claims

Legal Proceedings and Claims	6 Months Ended
	Jun. 30, 2015
Legal Proceedings and Claims
Legal Proceedings and Claims	Note 12. Legal Proceedings and Claims We have been, are currently, and expect in the future to be involved in claims, lawsuits, and regulatory and other governmental audits, investigations and proceedings arising in the ordinary course of our business, some of which may involve material amounts. Also, the defense and resolution of these claims, lawsuits, and regulatory and other governmental audits, investigations and proceedings may require us to incur significant expense. We account for claims and litigation losses in accordance with ASC Topic 450, Contingencies, or ASC 450. Under ASC 450, loss contingency provisions are recorded for probable and estimable losses at our best estimate of a loss or, when a best estimate cannot be made, at our estimate of the minimum loss. These estimates are often developed prior to knowing the amount of the ultimate loss, require the application of considerable judgment, and are refined as additional information becomes known. Accordingly, we are often initially unable to develop a best estimate of loss and therefore the estimated minimum loss amount, which could be zero , is recorded; and then, as information becomes known, the minimum loss amount is updated, as appropriate. A minimum or best estimate amount may be increased or decreased when events result in a changed expectation. As previously disclosed, as a result of our compliance program to review medical records related to our Medicare billing practices, during 2014 we discovered potentially inadequate documentation and other issues at one of our leased SNFs. This compliance review was not initiated in response to any specific complaint or allegation, but was a review of the type that we periodically undertake to test our own compliance with applicable Medicare billing rules. As a result of these discoveries, in February 2015, we made a voluntary disclosure of deficiencies to the United States Department of Health and Human Services Office of the Inspector General, or the OIG, pursuant to the OIG’s Provider Self-Disclosure Protocol. We completed our investigation and assessment of these matters and submitted a final supplemental disclosure to the OIG in May 2015. At December 31, 2014, we had accrued a revenue reserve of $4,333 for historical Medicare repayments that we expect to repay as a result of these deficiencies. For the quarter ended March 31, 2015, this revenue reserve was increased by $2,400 so it now totals $6,733 . In addition, we have recorded expense for additional costs we incurred or expect to incur, including OIG imposed penalties, as a result of this matter totaling $3,606 for the year ending December 31, 2014, and $1,856 and $4,161 for the three and six months ending June 30, 2015, respectively, of which $5,070 remains accrued and not paid at June 30, 2015. As part of the OIG’s Self-Disclosure Protocol, we expect that the OIG will review and evaluate our investigation and assessment of these deficiencies. The OIG may not agree with our assessment and also may require additional investigation and assessment of these deficiencies and additional deficiencies may be discovered as a result, which could increase our liability to the OIG and other costs. Potential losses associated with any such disagreement or with such additional investigation and assessment and/or additional compliance deficiencies are reasonably possible but cannot be reasonably estimated at this time. We are defendants in a lawsuit filed in the Superior Court of Maricopa County, Arizona by the estate of a former resident of a senior living community operated by us. The complaint asserts claims against us for pain and suffering as a result of improper treatment constituting violations of the Arizona Adult Protective Services Act and wrongful death. In May 2015, the jury rendered a decision in our favor on the wrongful death claim, and against us on the remaining claims, returning verdicts awarding damages of approximately $19.2 million, which consisted of $2.5 million for pain and suffering and the remainder in punitive damages. Although we cannot predict the ultimate outcome of this claim, we believe the jury’s verdicts were wrong and the result of significant trial error. We intend to vigorously pursue our position in post trial motions, and, if those motions are unsuccessful, on appeal. I n accordance with ASC 450, we have determined that losses beyond costs already incurred in defending the lawsuit are not probable at this time and it is not possible to reasonably estimate any such liability for this case, and therefore, we have not recorded a reserve for this matter .

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2015
Property and Equipment
Schedule of property and equipment	June 30, December 31, 2015 2014 Land $ $ Buildings and improvements Furniture, fixtures and equipment Property and equipment, at cost Accumulated depreciation Property and equipment, net $ $

Accumulated Other Comprehensi21

Accumulated Other Comprehensive Income (Tables)	6 Months Ended
	Jun. 30, 2015
Accumulated Other Comprehensive Income
Schedule of changes in accumulated other comprehensive income, net of tax	Equity Investment of an Investee Investments in Available for Sale Securities Accumulated Other Comprehensive Income Balance at January 1, 2015 $ $ $ Unrealized gain on investments, net of tax — Equity in unrealized gain of an investee — Reclassification adjustment: Realized gain on investments, net of tax — Balance at March 31, 2015 $ $ Unrealized loss on investments, net of tax — Equity in unrealized loss of an investee — Reclassification adjustment: Realized gain on investments, net of tax — Balance at June 30, 2015 $ $

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share
Schedule of reconciliation of income from continuing operations and income (loss) from discontinued operations and the number of common shares used in the computations of diluted EPS	Three Months Ended June 30, 2015 2014 Income Per Income Per (loss) Shares Share (loss) Shares Share Loss from continuing operations $ $ $ $ Dilutive effect of unvested restricted shares — — — — Diluted loss from continuing operations $ $ $ $ Diluted loss from discontinued operations $ $ $ $ Six Months Ended June 30, 2015 2014 Income Per Income Per (loss) Shares Share (loss) Shares Share Loss from continuing operations $ $ $ $ Dilutive effect of unvested restricted shares — — — — Diluted loss from continuing operations $ $ $ $ Diluted loss from discontinued operations $ $ $ $

Fair Values of Assets and Lia23

Fair Values of Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Values of Assets and Liabilities
Schedule of assets and liabilities measured at fair value on a recurring and non recurring basis, categorized by the level of inputs used in the valuation of each asset	As of June 30, 2015 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Assets Inputs Inputs Description Total (Level 1) (Level 2) (Level 3) Cash equivalents (1) $ $ $ — $ — Available for sale securities: (2) Equity securities Financial services industry — — REIT industry — — Other — — Total equity securities — — Debt securities International bond fund (3) — — High yield fund (4) — — Industrial bonds — — Government bonds — Financial bonds — — Other — — Total debt securities — Total available for sale securities — Total $ $ $ $ — As of December 31, 2014 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Assets Inputs Inputs Description Total (Level 1) (Level 2) (Level 3) Cash equivalents (1) $ $ $ — $ — Available for sale securities: (2) Equity securities Financial services industry — — REIT industry — — Other — — Total equity securities — — Debt securities International bond fund (3) — — High yield fund (4) — — Industrial bonds — — Government bonds — Financial bonds — — Other — — Total debt securities — Total available for sale securities — Total $ $ $ $ — (1) Cash equivalents, consisting of short term, highly liquid investments and money market funds held principally for obligations arising from our self insurance programs. Cash equivalents are reported on our balance sheet as cash and cash equivalents and current and long term restricted cash. Cash equivalents include $5,626 and $2,792 of balances that are restricted at June 30, 2015 and December 31, 2014, respectively. (2) Investments in available for sale securities are reported on our balance sheet as current and long term investments in available for sale securities and are reported at fair value of $25,352 and $15,222 , respectively, at June 30, 2015, and $23,436 and $19,835 , respectively, at December 31, 2014. Our investments in available for sale securities had amortized costs of $38,440 and $40,974 as of June 30, 2015 and December 31, 2014, respectively, had unrealized gains of $2,400 and $2,455 as of June 30, 2015 and December 31, 2014, respectively, and had unrealized losses of $266 and $157 as of June 30, 2015 and December 31, 2014, respectively. At June 30, 2015, 27 of the securities we hold, with a fair value of $7,494 , have been in a loss position for less than 12 months and nine of the securities we hold, with a fair value of $1,469 , have been in a loss position for greater than 12 months. We do not believe these securities are impaired primarily because they have not been in a loss position for an extended period of time, the financial conditions of the issuers of these securities remain strong with solid fundamentals, or we intend to hold these securities until recovery, and other factors that support our conclusion that the loss is temporary. During the six months ended June 30, 2015 and 2014, we received gross proceeds of $2,817 and $8,225 , respectively, in connection with the sales of available for sale securities and recorded gross realized gains totaling $38 and $349 , respectively, and gross realized losses totaling $0 and $23 , respectively. We record gains and losses on the sales of our available for sale securities using the specific identification method. (3) The investment strategy of this fund is to invest principally in fixed income securities. The fund invests in such securities or investment vehicles as it considers appropriate to achieve the fund’s investment objective, which is to provide an above average rate of total return while attempting to limit investment risk by investing in a diversified portfolio of U.S. dollar investment grade fixed income securities. There are no unfunded commitments and the investment can be redeemed weekly. (4) The investment strategy of this fund is to invest principally in fixed income securities. The fund invests in such securities or investment vehicles as it considers appropriate to achieve the fund’s investment objective, which is to provide an above average rate of total return while attempting to limit investment risk by investing in a diversified portfolio of primarily fixed income securities issued by companies with below investment grade ratings. There are no unfunded commitments and the investment can be redeemed weekly.

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2015
Discontinued Operations
Summary of the operating results of discontinued operations included in the financial statements	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues $ $ $ $ Expenses Benefit from income taxes — — Loss from discontinued operations $ $ $ $

Organization and Business (Deta

Organization and Business (Details)	6 Months Ended
	Jun. 30, 2015itemstatesegmentproperty	May. 31, 2015property	Jun. 30, 2014property
Segment Information
Number of operating segments | segment	2
Senior living communities
Real estate properties
Number of properties operated | property	272
Number of states in which real estate properties are located | state	32
Number of living units in properties operated	31,267
Number of properties owned and operated | property	31
Number of living units in properties owned and operated	3,064
Number of properties leased and operated | property	181
Number of units in properties leased and operated	20,035
Number of properties managed | property	60
Number of units in properties managed	8,168
Independent and assisted living communities
Real estate properties
Number of properties operated | property	241
Number of living units in properties operated	28,460
SNF
Real estate properties
Number of properties operated | property	31
Number of living units in properties operated	2,807
Independent living apartment
Real estate properties
Number of living units in properties operated	10,626
Assisted living suites
Real estate properties
Number of living units in properties operated	15,457
Skilled nursing units
Real estate properties
Number of living units in properties operated	5,184
Assisted living communities
Real estate properties
Number of real estate properties classified as discontinued operations | property	1
Number of units in real estate property classified as discontinued operations	32
SNH | Senior living communities
Real estate properties
Number of properties leased and operated | property	180
Number of properties managed | property	60	14	44
SNH | SNF
Real estate properties
Number of real estate properties classified as discontinued operations | property	3
SNH | Assisted living communities
Real estate properties
Number of living units in properties owned and operated	167

Property and Equipment (Details

Property and Equipment (Details) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2015USD ($)community	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)community	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Property and Equipment
Property and equipment, gross		$ 485,656		$ 485,656		$ 469,790
Accumulated depreciation		(128,538)		(128,538)		(112,604)
Property and equipment, net		357,118		357,118		357,186
Depreciation expense		8,110	$ 7,290	15,978	$ 14,283
Assumption of mortgage debt					$ 15,518
SNH
Property and Equipment
Assets held for sale for increased rent pursuant to the terms of leases with SNH		8,205		8,205
Land
Property and Equipment
Property and equipment, gross		24,172		24,172		24,172
Building and Improvements
Property and Equipment
Property and equipment, gross		312,347		312,347		308,779
Furniture, fixtures and equipment
Property and Equipment
Property and equipment, gross		$ 149,137		$ 149,137		$ 136,839
Tennessee
Property and Equipment
Aggregate purchase price of properties acquired, excluding closing costs	$ 26,000
Assumption of mortgage debt	$ 17,000
Tennessee | Independent living community
Property and Equipment
Number of independent living communities acquired | community	2			2
Tennessee | Independent living community one
Property and Equipment
Number of living units in properties acquired | community	68
Tennessee | Independent living community two
Property and Equipment
Number of living units in properties acquired | community	84

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Mar. 31, 2015
Changes in accumulated other comprehensive income
Balance at the beginning of the period	$ 4,165	$ 3,690
Unrealized gain (loss) on investments, net of tax	(576)	450
Equity interest in an investee's unrealized gain (loss) on investments	(64)	45
Realized gain on investments, net of tax	(18)	(20)
Balance at the end of the period	3,507	4,165
Equity Investment in Affiliates Insurance Company
Changes in accumulated other comprehensive income
Balance at the beginning of the period	95	50
Equity interest in an investee's unrealized gain (loss) on investments	(64)	45
Balance at the end of the period	31	95
Investments in Available for Sale Securities
Changes in accumulated other comprehensive income
Balance at the beginning of the period	4,070	3,640
Unrealized gain (loss) on investments, net of tax	(576)	450
Realized gain on investments, net of tax	(18)	(20)
Balance at the end of the period	$ 3,476	$ 4,070

Income Taxes (Detail)

Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
(Provision) benefit for income taxes	$ 280	$ (364)	$ 584	$ (2,795)
Tax benefit recognized from discontinued operations		$ (498)		$ (971)
Tax credit carry forward, which begins to expire in 2022 if unused					$ 17,191
Federal
Net operating loss carry forward, which begins to expire in 2026 if unused					112,182
Net operating losses that are attributable to unvested stock grants					$ 333

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Earnings Per Share
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Income (loss)
(Loss) income from continuing operations	$ (3,364)	$ (997)	$ (8,197)	$ (6,864)
Diluted (loss) income from continuing operations	(3,364)	(997)	(8,197)	(6,864)
Diluted income (loss) from discontinued operations	$ (546)	$ (894)	$ (1,015)	$ (1,786)
Shares
(Loss) income from continuing operations (in shares)	48,399	48,013	48,382	48,007
Diluted (loss) income from continuing operations (in shares)	48,399	48,013	48,382	48,007
Diluted loss from discontinued operations (in shares)	48,399	48,013	48,382	48,007
Per Share
(Loss) income from continuing operations (in dollars per share)	$ (0.07)	$ (0.02)	$ (0.17)	$ (0.14)
Diluted (loss) income from continuing operations (in dollars per share)	(0.07)	(0.02)	(0.17)	(0.14)
Diluted loss from discontinued operations (in dollars per share)	$ (0.01)	$ (0.02)	$ (0.02)	$ (0.04)

Fair Values of Assets and Lia30

Fair Values of Assets and Liabilities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Fair Values of Assets and Liabilities
Restricted cash equivalents	$ 5,626		$ 2,792
Available for sale securities, current	25,352		23,436
Long term investments in available for sale securities	15,222		19,835
Amortized cost of available for sale securities	38,440		40,974
Unrealized gains on available for sale securities	2,400		2,455
Unrealized losses on available for sale securities	$ 266		157
Number of available for sale securities in a loss position less than 12 months | item	27
Fair value of securities which are in loss position for less than 12 months	$ 7,494
Number of available for sale securities in a loss position 12 months or longer | item	9
Fair value of securities which are in loss position for greater than 12 months	$ 1,469
Gross proceeds from sale of available for sale securities	2,817	$ 8,225
Gross realized gains recorded on sale of available for sale securities	38	349
Gross realized losses recorded on sale of available for sale securities	0	$ 23
Total
Fair Values of Assets and Liabilities
Cash equivalents	7,640		4,632
Available for sale securities	40,574		43,271
Total	48,214		47,903
Total | Equity securities
Fair Values of Assets and Liabilities
Available for sale securities	8,152		8,230
Total | Financial services industry
Fair Values of Assets and Liabilities
Available for sale securities	4,127		4,059
Total | REIT industry
Fair Values of Assets and Liabilities
Available for sale securities	254		330
Total | Other
Fair Values of Assets and Liabilities
Available for sale securities	3,771		3,841
Total | Debt securities
Fair Values of Assets and Liabilities
Available for sale securities	32,422		35,041
Total | International bond fund
Fair Values of Assets and Liabilities
Available for sale securities	2,397		2,385
Total | High yield fund
Fair Values of Assets and Liabilities
Available for sale securities	2,401		2,352
Total | Industrial bonds
Fair Values of Assets and Liabilities
Available for sale securities	6,013		6,577
Total | Government bonds
Fair Values of Assets and Liabilities
Available for sale securities	9,871		11,371
Total | Financial bonds
Fair Values of Assets and Liabilities
Available for sale securities	2,669		2,704
Total | Other
Fair Values of Assets and Liabilities
Available for sale securities	9,071		9,652
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Values of Assets and Liabilities
Cash equivalents	7,640		4,632
Available for sale securities	13,077		13,913
Total	20,717		18,545
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities
Fair Values of Assets and Liabilities
Available for sale securities	8,152		8,230
Quoted Prices in Active Markets for Identical Assets (Level 1) | Financial services industry
Fair Values of Assets and Liabilities
Available for sale securities	4,127		4,059
Quoted Prices in Active Markets for Identical Assets (Level 1) | REIT industry
Fair Values of Assets and Liabilities
Available for sale securities	254		330
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other
Fair Values of Assets and Liabilities
Available for sale securities	3,771		3,841
Quoted Prices in Active Markets for Identical Assets (Level 1) | Debt securities
Fair Values of Assets and Liabilities
Available for sale securities	4,925		5,683
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government bonds
Fair Values of Assets and Liabilities
Available for sale securities	4,925		5,683
Significant Other Observable Inputs (Level 2)
Fair Values of Assets and Liabilities
Available for sale securities	27,497		29,358
Total	27,497		29,358
Significant Other Observable Inputs (Level 2) | Debt securities
Fair Values of Assets and Liabilities
Available for sale securities	27,497		29,358
Significant Other Observable Inputs (Level 2) | International bond fund
Fair Values of Assets and Liabilities
Available for sale securities	2,397		2,385
Significant Other Observable Inputs (Level 2) | High yield fund
Fair Values of Assets and Liabilities
Available for sale securities	2,401		2,352
Significant Other Observable Inputs (Level 2) | Industrial bonds
Fair Values of Assets and Liabilities
Available for sale securities	6,013		6,577
Significant Other Observable Inputs (Level 2) | Government bonds
Fair Values of Assets and Liabilities
Available for sale securities	4,946		5,688
Significant Other Observable Inputs (Level 2) | Financial bonds
Fair Values of Assets and Liabilities
Available for sale securities	2,669		2,704
Significant Other Observable Inputs (Level 2) | Other
Fair Values of Assets and Liabilities
Available for sale securities	$ 9,071		$ 9,652

Fair Values of Assets and Lia31

Fair Values of Assets and Liabilities (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Carrying value and fair value
Transfers of assets between Level 1 to Level 2	$ 0
Transfers of assets between Level 2 to Level 1	0
Mortgage notes payable	43,281	$ 49,373
Level 3
Carrying value and fair value
Mortgage notes payable	48,199	56,099
Carrying value
Carrying value and fair value
Mortgage notes payable	$ 44,662	$ 51,159

Indebtedness (Details)

Indebtedness (Details) $ in Thousands	1 Months Ended			3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)propertyitem	Apr. 30, 2015USD ($)	Mar. 31, 2015community	Jun. 30, 2015USD ($)propertyitem	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)communitypropertyitem	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Indebtedness
Mortgage notes payable outstanding principal balance	$ 43,281			$ 43,281		$ 43,281		$ 49,373
Amount borrowed during the period						5,000	$ 5,000
Gain, net of related unamortized costs, on early extinguishment of debt				$ 692		$ 692
Standby letters of credit
Indebtedness
Extension Fee		$ 300
Senior living communities
Indebtedness
Number of properties operated | property	272			272		272
Credit Agreement
Indebtedness
Maximum borrowing capacity	$ 25,000			$ 25,000		$ 25,000
Basis spread (as a percent)						2.50%
Interest rate at period end (as a percent)	2.69%			2.69%		2.69%
Quarterly commitment fee on the unused part of borrowing availability (as a percent)						0.35%
Principal repayment						$ 0
Amount borrowed during the period						0
Amount outstanding under credit facility	$ 0			$ 0		0
Interest expense and other associated costs incurred				48	$ 48	$ 96	$ 96
Credit Agreement | LIBOR
Indebtedness
Variable rate basis						LIBOR
Credit Facility
Indebtedness
Maximum borrowing capacity	$ 150,000			$ 150,000		$ 150,000
Basis spread (as a percent)						2.50%
Interest rate at period end (as a percent)	2.69%			2.69%		2.69%
Quarterly commitment fee on the unused part of borrowing availability (as a percent)						0.35%
Amount outstanding under credit facility	$ 35,000			$ 35,000		$ 35,000
Weighted average interest rate (as a percent)	2.74%			2.74%	2.79%	2.74%	2.79%
Interest expense and other associated costs incurred				$ 404	$ 542	$ 1,013	$ 1,135
Credit Facility | Senior living communities
Indebtedness
Number of real estate properties securing borrowings on the new credit facility | property	15			15		15
Number of units in real estate properties securing borrowings on the new credit facility | item	1,549			1,549		1,549
Credit Facility | LIBOR
Indebtedness
Variable rate basis						LIBOR
Mortgage notes
Indebtedness
Mortgage notes payable outstanding principal balance	$ 4,873			$ 4,873		$ 4,873
Interest rate (as a percent)	8.99%			8.99%		8.99%
Gain, net of related unamortized costs, on early extinguishment of debt	$ 692
Weighted average interest rate (as a percent)	6.48%			6.48%		6.48%
Interest expense and other associated costs incurred				$ 683	$ 671	$ 1,381	$ 1,248
Prepayment penalty (in percent)				1.00%
Mortgage notes | FNMA
Indebtedness
Number of real estate properties mortgaged | property	2			2		2
Mortgage notes | FMCC
Indebtedness
Number of real estate properties mortgaged | property	2			2		2
Mortgage notes | Senior living communities
Indebtedness
Mortgage notes payable outstanding principal balance	$ 44,662			$ 44,662		$ 44,662
Number of real estate properties mortgaged | property	4			4		4
Tennessee | Independent living community
Indebtedness
Number of independent living communities acquired | community			2			2

Off Balance Sheet Arrangement (

Off Balance Sheet Arrangement (Details) - Jun. 30, 2015 $ in Thousands	USD ($)property
Off Balance Sheet Arrangements
Carrying value of accounts receivable and other assets pledged	$ 13,742
Number of properties leased from SNH on which pledge arises | property	26
Off balance sheet arrangements, liability	$ 0

Related Person Transactions (De

Related Person Transactions (Details) $ in Thousands	1 Months Ended				3 Months Ended		6 Months Ended
	Aug. 31, 2015USD ($)facility	Jul. 31, 2015USD ($)facility	May. 31, 2015propertyitem	Feb. 28, 2015USD ($)	Jun. 30, 2015USD ($)propertyitemshares	Jun. 30, 2014USD ($)property	Jun. 30, 2015USD ($)propertyitemshares	Jun. 30, 2014USD ($)property	Dec. 31, 2014USD ($)	Jun. 30, 2013property
Related person transactions
Management fee revenue					$ 2,699	$ 2,433	$ 5,222	$ 4,858
Assisted living communities
Related person transactions
Number of properties to be sold | property										1
D&R Yonkers LLC
Related person transactions
Management fee revenue					$ 54	59	$ 108	119
Senior living communities
Related person transactions
Number of real estate properties leased | property					181		181
Number of properties managed | property					60		60
Number of units in properties managed | item					8,168		8,168
SNH
Related person transactions
Ownership percentage by former parent					100.00%		100.00%
Number of shares owned | shares					4,235,000		4,235,000
Percentage of outstanding common shares owned					8.60%		8.60%
Real estate improvements sold							$ 8,902
Assets held for sale for increased rent pursuant to the terms of leases with SNH					$ 8,205		$ 8,205
SNH | Assisted living communities
Related person transactions
Number of real estate properties offered for sale classified as discontinued operations | item					3		3
SNH | Senior living communities
Related person transactions
Number of real estate properties leased | property					180		180
Total minimum annual rent payable					$ 191,397	190,867	$ 191,397	190,867
Rent expense under leases, net of lease inducement amortization					48,973	48,822	97,915	97,581
Rent expense under leases, estimated percentage rent					1,393	$ 1,403	2,824	2,819
Outstanding rent due and payable					17,286		17,286		$ 17,310
Real estate improvements sold								17,423
Gross amount paid on acquisition				$ 490
Increase (decrease) in annual lease rent payable				39			717	$ 1,395
Assets held for sale for increased rent pursuant to the terms of leases with SNH					$ 8,205		$ 8,205
Number of properties managed | property			14		60	44	60	44
Management fee revenue					$ 2,699	$ 2,433	$ 5,222	$ 4,858
SNH | Senior living communities | Pennsylvania
Related person transactions
Decrease in annual lease rent payable				23
Sales price				$ 250
SNH | Senior living communities | Georgia
Related person transactions
Living units acqired | item			40
SNH | Skilled nursing facilities | Subsequent event Member | Iowa
Related person transactions
Increase (decrease) in annual lease rent payable		$ (16)
Number of units in real estate property sold | facility		12
Sales price		$ 155
SNH | Skilled nursing facilities | Subsequent event Member | Wisconsin
Related person transactions
Increase (decrease) in annual lease rent payable	$ (85)
Number of units in real estate property sold | facility	39
Sales price	$ 850

Related Person Transactions (35

Related Person Transactions (Details 2) $ in Thousands	Mar. 16, 2015	Jun. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Related person transactions
Utilities and real estate taxes			$ 49,657	$ 49,203	$ 99,285	$ 98,277
Equity investment of an investee		$ 6,904	6,904		6,904		$ 6,827
Income (loss) arising from investment			23	118	95	21
Other comprehensive income (loss)			(64)	22	(19)	41
RMR
Related person transactions
Business management fees			2,142	2,134	4,269	4,140
Administrative and information system service fees			0	1,384	0	2,903
Period before which notice is required for termination of business management agreement	120 days
Period before which notice is required for termination of business management agreement with Independent Director approval	60 days
Termination fee factor	2.875
Number consecutive months for average fees and expenses
Period of transition services provided by related party after termination of agreement	120 days
Rent expense under leases			436	317	847	672
AIC
Related person transactions
Equity investment of an investee		$ 6,904	6,904		6,904
Income (loss) arising from investment			23	118	95	21
Other comprehensive income (loss)			$ (64)	$ 22	$ (19)	$ 41
Period for which property insurance coverage		3 years
Coverage of property insurance		$ 500,000
Terrorism property insurance term		1 year
Terrorism coverage of property insurance		$ 200,000
Property insurance premium		$ 4,067

Discontinued Operations (Detail

Discontinued Operations (Details) - Geographical [Domain] - Subsequent Event Type [Domain] $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Jun. 30, 2013propertyitem
Summary of the operating results of discontinued operations
Revenues	$ 1,082	$ 6,302	$ 3,686	$ 13,803
Expenses	(1,628)	(7,694)	(4,701)	(16,560)
(Provision for) benefit from income taxes		498		971
(Loss) income from discontinued operations	$ (546)	$ (894)	$ (1,015)	$ (1,786)
Assisted living communities
Discontinued Operations
Number of properties to be sold | property					1
Number of living units in property to be sold | item					32
Assisted living communities | SNH
Discontinued Operations
Number of real estate properties offered for sale classified as discontinued operations | item	3		3

Legal Proceedings and Claims (D

Legal Proceedings and Claims (Details) $ in Thousands	1 Months Ended	6 Months Ended
	May. 31, 2015USD ($)	Jun. 30, 2015USD ($)item	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Litigation Settlement
Estimated minimum loss		$ 0
Number of leased SNFs with potentially inadequate documentation | item		1
Revenue reserve for payment of historical Medicare obligations		$ 6,733		$ 4,333
Additional revenue reserve for payment of historical Medicare obligations			$ 2,400
Accrued costs and penalties expected to incur related to the compliance assessment		4,161		$ 3,606
Accrued costs and penalties expected to incur related to the compliance assessment not yet paid		$ 5,070
Estate of Doris L. Cote
Litigation Settlement
Damages awarded	$ 19,200
Damages awarded for pain and suffering	$ 2,500