Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'LHCG | ' |
Entity Registrant Name | 'LHC Group, Inc | ' |
Entity Central Index Key | '0001303313 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 17,602,664 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $443 | $9,720 |
Receivables: | ' | ' |
Patient accounts receivable, less allowance for uncollectible accounts of $13,995 and $11,863, respectively | 92,423 | 83,951 |
Other receivables | 746 | 589 |
Amounts due from governmental entities | 1,223 | 1,596 |
Total receivables, net | 94,392 | 86,136 |
Deferred income taxes | 11,098 | 7,671 |
Prepaid income taxes | 3,125 | 7,436 |
Prepaid expenses | 6,175 | 6,818 |
Other current assets | 4,774 | 2,949 |
Total current assets | 120,007 | 120,730 |
Property, building and equipment, net of accumulated depreciation of $39,320 and $34,331, respectively | 30,561 | 29,531 |
Goodwill | 194,893 | 169,150 |
Intangible assets, net of accumulated amortization of $3,357 and $2,985, respectively | 63,199 | 62,042 |
Other assets | 5,373 | 5,441 |
Total assets | 414,033 | 386,894 |
Current liabilities: | ' | ' |
Accounts payable and other accrued liabilities | 19,254 | 14,897 |
Salaries, wages, and benefits payable | 25,134 | 29,890 |
Self insurance reserve | 6,868 | 5,444 |
Amounts due to governmental entities | 3,975 | 4,979 |
Total current liabilities | 55,231 | 55,210 |
Deferred income taxes | 29,036 | 25,129 |
Income tax payable | 3,415 | 3,415 |
Revolving credit facility | 24,000 | 19,500 |
Note payable | 1,138 | ' |
Total liabilities | 112,820 | 103,254 |
Noncontrolling interest - redeemable | 11,467 | 11,426 |
LHC Group, Inc. stockholders' equity: | ' | ' |
Common stock - $0.01 par value; 40,000,000 shares authorized; 21,783,323 and 21,578,772 shares issued in 2013 and 2012, respectively | 218 | 216 |
Treasury stock - 4,690,392 and 4,653,039 shares at cost, respectively | -34,640 | -33,846 |
Additional paid-in capital | 102,761 | 100,619 |
Retained earnings | 218,565 | 201,192 |
Total LHC Group, Inc. stockholders' equity | 286,904 | 268,181 |
Noncontrolling interest - non-redeemable | 2,842 | 4,033 |
Total equity | 289,746 | 272,214 |
Total liabilities and equity | $414,033 | $386,894 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Patient accounts receivable, allowance for uncollectible accounts | $13,995 | $11,863 |
Property, building and equipment, accumulated depreciation | 39,320 | 34,331 |
Intangible assets, accumulated amortization | $3,357 | $2,985 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 21,783,323 | 21,578,772 |
Treasury stock at cost, shares | 4,690,392 | 4,653,039 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net service revenue | $164,748 | $158,926 | $493,003 | $475,742 |
Cost of service revenue | 97,966 | 91,234 | 288,223 | 273,311 |
Gross margin | 66,782 | 67,692 | 204,780 | 202,431 |
Provision for bad debts | 2,708 | 2,987 | 9,833 | 8,395 |
General and administrative expenses | 53,047 | 52,464 | 158,827 | 154,313 |
Other intangibles impairment charge | ' | 650 | ' | 650 |
Operating income | 11,027 | 11,591 | 36,120 | 39,073 |
Interest expense | -430 | -405 | -1,555 | -972 |
Non-operating income | 54 | 94 | 184 | 108 |
Income before income taxes and noncontrolling interest | 10,651 | 11,280 | 34,749 | 38,209 |
Income tax expense | 3,782 | 3,388 | 12,236 | 12,706 |
Net income | 6,869 | 7,892 | 22,513 | 25,503 |
Less net income attributable to noncontrolling interests | 1,572 | 1,556 | 5,140 | 5,463 |
Net income attributable to LHC Group, Inc.'s common stockholders | $5,297 | $6,336 | $17,373 | $20,040 |
Earnings per share - basic: | ' | ' | ' | ' |
Net income attributable to LHC Group, Inc.'s common stockholders | $0.31 | $0.36 | $1.02 | $1.11 |
Earnings per share - diluted: | ' | ' | ' | ' |
Net income attributable to LHC Group, Inc.'s common stockholders | $0.31 | $0.36 | $1.02 | $1.10 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic | 17,083,201 | 17,656,842 | 17,035,541 | 18,121,217 |
Diluted | 17,182,013 | 17,726,819 | 17,109,675 | 18,160,489 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $) | Total | Common Stock [Member] | Treasury [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Non-controlling Interest Non Redeemable [Member] | |
In Thousands, except Share data | |||||||
Balance at Dec. 31, 2012 | $272,214 | $216 | ($33,846) | $100,619 | $201,192 | $4,033 | |
Balance, shares at Dec. 31, 2012 | ' | 21,578,772 | -4,653,039 | ' | ' | ' | |
Net income | 18,272 | [1] | ' | ' | ' | 17,373 | 899 |
Transfer of noncontrolling interest | -1,342 | ' | ' | ' | ' | -1,342 | |
Purchase of additional controlling interest | -1,267 | ' | ' | -1,267 | ' | ' | |
Noncontrolling interest distributions | -748 | ' | ' | ' | ' | -748 | |
Nonvested stock compensation | 2,879 | ' | ' | 2,879 | ' | ' | |
Issuance of vested stock, Shares | ' | 175,721 | ' | ' | ' | ' | |
Treasury shares redeemed to pay income tax | -794 | ' | -794 | ' | ' | ' | |
Treasury shares redeemed to pay income tax, shares | 37,353 | ' | -37,353 | ' | ' | ' | |
Excess tax benefits - vesting nonvested stock | -38 | ' | ' | -38 | ' | ' | |
Issuance of common stock under Employee Stock Purchase Plan | 570 | 2 | ' | 568 | ' | ' | |
Issuance of common stock under Employee Stock Purchase Plan, shares | ' | 28,830 | ' | ' | ' | ' | |
Balances at Sep. 30, 2013 | $289,746 | $218 | ($34,640) | $102,761 | $218,565 | $2,842 | |
Balance, shares at Sep. 30, 2013 | ' | 21,783,323 | -4,690,392 | ' | ' | ' | |
[1] | Net income excludes net income attributable to noncontrolling interest-redeemable of $4.2 million during the nine months ending September 30, 2013. Noncontrolling interest-redeemable is reflected outside of permanent equity on the condensed consolidated balance sheets. See Note 9 of the Notes to Condensed Consolidated Financial Statements. |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Statement Of Stockholders Equity [Abstract] | ' |
Net income attributable to noncontrolling interest-redeemable | $4,200 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ' | ' |
Net income | $22,513 | $25,503 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization expense | 5,958 | 5,801 |
Provision for bad debts | 9,833 | 8,395 |
Stock-based compensation expense | 2,879 | 3,398 |
Deferred income taxes | 480 | 1,552 |
Loss on sale of assets | 17 | 100 |
Other intangibles impairment charge | ' | 650 |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' |
Receivables | -18,462 | -7,084 |
Prepaid expenses and other assets | -1,114 | 2,247 |
Prepaid income taxes | 4,262 | 13,960 |
Accounts payable and accrued expenses | 645 | -6,597 |
Net amounts due to/from governmental entities | -631 | 135 |
Net cash provided by operating activities | 26,380 | 48,060 |
Investing activities | ' | ' |
Purchases of property, building and equipment | -5,997 | -6,508 |
Proceeds from sale of assets | ' | 25 |
Cash paid for acquisitions, primarily goodwill and intangible assets | -26,920 | -6,764 |
Net cash (used in) investing activities | -32,917 | -13,247 |
Financing activities | ' | ' |
Proceeds from line of credit | 64,500 | 173,562 |
Payments on line of credit | -60,000 | -183,297 |
Proceeds from employee stock purchase plan | 570 | 587 |
Proceeds from debt issuance | 1,138 | ' |
Noncontrolling interest distributions | -6,286 | -6,582 |
Excess tax benefits from vesting of restricted stock | 11 | ' |
Redemption of treasury shares | -794 | ' |
Purchase of additional controlling interest | -1,879 | -126 |
Payments on repurchase of common stock | ' | -19,017 |
Sale of noncontrolling interest | ' | 80 |
Net cash (used in) financing activities | -2,740 | -34,793 |
Change in cash | -9,277 | 20 |
Cash at beginning of period | 9,720 | 256 |
Cash at end of period | 443 | 276 |
Supplemental disclosures of cash flow information | ' | ' |
Interest paid | 1,523 | 972 |
Income taxes paid | $18,123 | $8,644 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Organization | ' |
1. Organization | |
LHC Group, Inc. (the “Company”) is a health care provider specializing in the post-acute continuum of care primarily for Medicare beneficiaries. The Company provides home-based services, primarily through home nursing agencies and hospices, and facility-based services, primarily through long-term acute care hospitals (“LTACHs”). As of September 30, 2013, the Company, through its wholly- and majority-owned subsidiaries, equity joint ventures and controlled affiliates, operated 310 service providers in 26 states within the domestic United States. | |
Unaudited Interim Financial Information | |
The condensed consolidated balance sheets as of September 30, 2013 and December 31, 2012, and the related condensed consolidated statements of income for the three and nine months ended September 30, 2013 and 2012, condensed consolidated statement of changes in equity for the nine months ended September 30, 2013, condensed consolidated statements of cash flows for the nine months ended September 30, 2013 and 2012 and related notes (collectively, these financial statements and the related notes are referred to herein as the “interim financial information”) have been prepared by the Company. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been included. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | |
Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted from the interim financial information presented. This report should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 as filed with the Securities and Exchange Commission (the “SEC”) on March 18, 2013, which includes information and disclosures not included herein. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
2. Significant Accounting Policies | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Critical Accounting Policies | |||||||||||||||||
The Company’s most critical accounting policies relate to the principles of consolidation, revenue recognition and accounts receivable and allowances for uncollectible accounts. | |||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The condensed consolidated financial statements include all subsidiaries and entities controlled by the Company. Control is defined by the Company as ownership of a majority of the voting interest of an entity. The condensed consolidated financial statements include entities in which the Company receives a majority of the entities’ expected residual returns, absorbs a majority of the entities’ expected losses, or both, as a result of ownership, contractual or other financial interests in the entity. Third party equity interests in the consolidated joint ventures are reflected as noncontrolling interests in the Company’s condensed consolidated financial statements. | |||||||||||||||||
The following table summarizes the percentage of net service revenue earned by type of ownership or relationship the Company had with the operating entity: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Equity joint ventures | 48.1 | % | 49.1 | % | 48.9 | % | 48.7 | % | |||||||||
Wholly-owned subsidiaries | 49.3 | % | 48.1 | % | 48.4 | % | 48.5 | % | |||||||||
License leasing arrangements | 1.8 | % | 1.9 | % | 1.9 | % | 1.9 | % | |||||||||
Management services | 0.8 | % | 0.9 | % | 0.8 | % | 0.9 | % | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
All significant intercompany accounts and transactions have been eliminated in the Company’s accompanying condensed consolidated financial statements. Business combinations accounted for under the acquisition method have been included in the condensed consolidated financial statements from the respective dates of acquisition. | |||||||||||||||||
The following describes the Company’s consolidation policy with respect to its various ventures excluding wholly-owned subsidiaries: | |||||||||||||||||
Equity Joint Ventures | |||||||||||||||||
The members of the Company’s equity joint ventures participate in profits and losses in proportion to their equity interests. The Company consolidates these entities as the Company has voting control over the entities. The Company typically owns a majority equity interest ranging from 51% to 91% in these joint ventures. | |||||||||||||||||
License Leasing Arrangements | |||||||||||||||||
The Company, through wholly-owned subsidiaries, leases home health licenses necessary to operate certain of its home nursing agencies. As with its wholly-owned subsidiaries, the Company owns 100% of the equity of these entities and consolidates them based on such ownership. | |||||||||||||||||
Management Services | |||||||||||||||||
The Company has various management services agreements under which the Company manages certain operations of agencies and facilities. The Company does not consolidate these agencies or facilities because the Company does not have an ownership interest and does not have an obligation to absorb losses of the entities or the right to receive the benefits from the entities. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
The Company reports net service revenue at the estimated net realizable amount due from Medicare, Medicaid, commercial insurance, managed care payors, patients and others for services rendered. All payors contribute to both the home-based services and facility-based services. | |||||||||||||||||
The following table sets forth the percentage of net service revenue earned by category of payor for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Payor: | |||||||||||||||||
Medicare | 80.3 | % | 77.2 | % | 79.8 | % | 77.9 | % | |||||||||
Medicaid | 1.3 | % | 1.7 | % | 1.4 | % | 1.9 | % | |||||||||
Other | 18.4 | % | 21.1 | % | 18.8 | % | 20.2 | % | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
The percentage of net service revenue contributed from each reporting segment for the three and nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Home-based services | 89.2 | % | 88.3 | % | 88.3 | % | 88.3 | % | |||||||||
Facility-based services | 10.8 | % | 11.7 | % | 11.7 | % | 11.7 | % | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
Medicare | |||||||||||||||||
Home-Based Services | |||||||||||||||||
Home Nursing Services. The Company’s home nursing Medicare patients are classified into one of 153 home health resource groups prior to receiving services. Based on the patient’s home health resource group, the Company is entitled to receive a standard prospective Medicare payment for delivering care over a 60-day period referred to as an episode. The Company recognizes revenue based on the number of days elapsed during an episode of care within the reporting period. | |||||||||||||||||
Final payments from Medicare may reflect one of four retroactive adjustments to ensure the adequacy and effectiveness of the total reimbursement: (a) an outlier payment if the patient’s care was unusually costly; (b) a low utilization adjustment if the number of visits was fewer than five; (c) a partial payment if the patient transferred to another provider before completing the episode; or (d) a payment adjustment based upon the level of therapy services required in the population base. In calculating net service revenue, management estimates the impact of these payment adjustments based on historical experience and records this estimate as the services are rendered using the expected level of services that will be provided and the schedule of those services or a historical average of prior adjustments. | |||||||||||||||||
Hospice Services. The Company is paid by Medicare under a per diem payment system. The Company receives one of four predetermined daily or hourly rates based upon the level of care the Company furnished. The Company records net service revenue from hospice services based on the daily or hourly rate and recognizes revenue as hospice services are provided. | |||||||||||||||||
Hospice payments are also subject to an inpatient cap and an overall Medicare payment cap. Inpatient cap relates to individual programs receiving more than 20% of its total Medicare reimbursement from inpatient care services and the overall Medicare payment cap relates to individual providers receiving reimbursements in excess of a “cap amount,” calculated by multiplying the number of beneficiaries during the period by a statutory amount that is indexed for inflation. The determination for each cap is made annually based on the 12-month period ending on October 31 of each year. The Company monitors its limits on a provider-by-provider basis and records an estimate of its liability for reimbursements received in excess of the cap amount. Annually, the Company receives notification of whether any of its hospice providers have exceeded either cap. Adjustments resulting from these notifications have not been material. | |||||||||||||||||
Facility-Based Services | |||||||||||||||||
Long-Term Acute Care Services. The Company is reimbursed by Medicare for services provided under the LTACH prospective payment system. Each patient is assigned a long-term care diagnosis-related group. The Company is paid a predetermined fixed amount intended to reflect the average cost of treating a Medicare patient classified in that particular long-term care diagnosis-related group. For selected patients, the amount may be further adjusted based on length of stay and facility-specific costs, as well as in instances where a patient is discharged and subsequently re-admitted, among other factors. The Company calculates the adjustment based on a historical average of these types of adjustments for claims paid. Similar to other Medicare prospective payment systems, the rate is also adjusted for geographic wage differences. Revenue is recognized for the Company’s LTACHs as services are provided. | |||||||||||||||||
Medicaid, managed care and other payors | |||||||||||||||||
The Company’s Medicaid reimbursement is based on a predetermined fee schedule applied to each service provided. Therefore, revenue is recognized for Medicaid services as services are provided based on this fee schedule. The Company’s managed care and other payors reimburse the Company in a manner similar to either Medicare or Medicaid. Accordingly, the Company recognizes revenue from managed care and other payors in the same manner as the Company recognizes revenue from Medicare or Medicaid. | |||||||||||||||||
Management Services | |||||||||||||||||
The Company records management services revenue as such services are provided in accordance with the various management services agreements to which the Company is a party. As described in the management services agreements, the Company provides billing, management and other consulting services suited to and designed for the efficient operation of the applicable home nursing agency. The Company is responsible for the costs associated with the locations and personnel required for the provision of services. The Company is compensated based on two management fee structures. One management fee structure is based on a percentage of cash collections, while the second management fee structure is based on reimbursement of operating expenses plus a percentage of operating net income. | |||||||||||||||||
Accounts Receivable and Allowances for Uncollectible Accounts | |||||||||||||||||
The Company reports accounts receivable net of estimated allowances for uncollectible accounts and adjustments. Accounts receivable are uncollateralized and primarily consist of amounts due from Medicare, other third-party payors, and patients. To provide for accounts receivable that could become uncollectible in the future, the Company establishes an allowance for uncollectible accounts to reduce the carrying amount of such receivables to their estimated net realizable value. The credit risk for other concentrations of receivables is limited due to the significance of Medicare as the primary payor. The Company believes the credit risk associated with its Medicare accounts, which have historically exceeded 60% of its patient accounts receivable, is limited due to (i) the historical collection rate from Medicare and (ii) the fact that Medicare is a U.S. government payor. The Company does not believe that there are any other concentrations of receivables from any particular payor that would subject it to any significant credit risk in the collection of accounts receivable. | |||||||||||||||||
The provision for bad debts is based upon the Company’s assessment of historical and expected net collections, business and economic conditions and trends in government reimbursement. Uncollectible accounts are written off when the Company has determined the account will not be collected. | |||||||||||||||||
A portion of the estimated Medicare prospective payment system reimbursement from each submitted home nursing episode is received in the form of a request for anticipated payment (“RAP”). The Company submits a RAP for 60% of the estimated reimbursement for the initial episode at the start of care. The full amount of the episode is billed after the episode has been completed. The RAP received for that particular episode is deducted from the final payment. If a final bill is not submitted within the greater of 120 days from the start of the episode, or 60 days from the date the RAP was paid, any RAP received for that episode will be recouped by Medicare from any other Medicare claims in process for that particular provider. The RAP and final claim must then be resubmitted. For subsequent episodes of care contiguous with the first episode for a particular patient, the Company submits a RAP for 50% instead of 60% of the estimated reimbursement. | |||||||||||||||||
The Company’s Medicare population is paid at a prospectively set amount that can be determined at the time services are rendered. The Company’s Medicaid reimbursement is based on a predetermined fee schedule applied to each individual service it provides. The Company’s managed care contracts and contracts with other payors are structured similar to either the Medicare or Medicaid payment methodologies. Because of its payor mix, the Company is able to calculate its actual amount due at the patient level and adjust the gross charges down to the actual amount at the time of billing. This negates the need to record an estimated contractual allowance when reporting net service revenue for each reporting period. | |||||||||||||||||
Other Significant Accounting Policies | |||||||||||||||||
Earnings Per Share | |||||||||||||||||
Basic per share information is computed by dividing the relevant amounts from the condensed consolidated statements of income by the weighted-average number of shares outstanding during the period, under the treasury stock method. Diluted per share information is also computed using the treasury stock method, by dividing the relevant amounts from the condensed consolidated statements of income by the weighted-average number of shares outstanding plus potentially dilutive shares. | |||||||||||||||||
The following table sets forth shares used in the computation of basic and diluted per share information: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average number of shares outstanding for basic per share calculation | 17,083,201 | 17,656,842 | 17,035,541 | 18,121,217 | |||||||||||||
Effect of dilutive potential shares: | |||||||||||||||||
Options | 4,208 | 1,935 | 4,032 | 1,849 | |||||||||||||
Nonvested stock | 94,604 | 68,042 | 70,102 | 37,423 | |||||||||||||
Adjusted weighted average shares for diluted per share calculation | 17,182,013 | 17,726,819 | 17,109,675 | 18,160,489 | |||||||||||||
Anti-dilutive shares | 94,299 | 176,641 | 181,648 | 348,595 |
Acquisitions_and_Disposals
Acquisitions and Disposals | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Business Combinations [Abstract] | ' | ||||||||||
Acquisitions and Disposals | ' | ||||||||||
3. Acquisitions and Disposals | |||||||||||
Pursuant to the Company’s strategy for becoming the leading provider of post-acute health care services in the United States, the Company acquired the home-based service line of Addus HomeCare, which consisted of 19 home health agencies and one hospice agency, during the nine months ended September 30, 2013. Additionally, in separate acquisitions, the Company acquired one hospice agency and four home health agencies. The Company maintains an ownership interest in the acquired entities as set forth below: | |||||||||||
Acquired Entity | Ownership | State of Operations | Acquisition | ||||||||
Percentage | Date | ||||||||||
LHCG XXXVII, LLC (d/b/a Addus HealthCare) | 90 | % | Illinois | 3/1/13 | |||||||
LHCG XXXVIII, LLC (d/b/a Addus HealthCare) | 90 | % | California | 3/1/13 | |||||||
LHCG XLII, LLC (d/b/a/ Arkansas HomeCare) | 100 | % | Arkansas | 3/1/13 | |||||||
LHCG XLI, LLC (d/b/a South Carolina HomeCare) | 100 | % | South Carolina | 3/1/13 | |||||||
LHCG XXXIX, LLC (d/b/a Addus HealthCare) | 100 | % | Nevada | 3/1/13 | |||||||
LHCG XXXIV, LLC (d/b/a Alabama Hospice Care of Mobile) | 100 | % | Alabama | 4/1/13 | |||||||
LHCG XL, LLC (d/b/a Georgia Home Health) | 100 | % | Georgia | 7/1/13 | |||||||
Acquired Entity | Ownership | State of Operations | Acquisition | ||||||||
Percentage | Date | ||||||||||
LHCG XXVII, LLC (d/b/a Pennsylvania Home Health) | 100 | % | Pennsylvania | 7/1/13 | |||||||
LHCG XLVIII, LLC (d/b/a Minnesota Home Health) | 100 | % | Minnesota | 7/1/13 | |||||||
LHCG XLVII, LLC (d/b/a Wisconsin Home Health) | 100 | % | Wisconsin | 7/1/13 | |||||||
Each of the acquisitions was accounted for under the acquisition method of accounting, and accordingly, the accompanying condensed consolidated financial statements include the results of operations of each acquired entity from the date of acquisition. | |||||||||||
The total aggregate purchase price for the Company’s acquisitions was $27.3 million, of which $26.9 million was paid in cash and $380,000 in assumed liabilities. The purchase prices are determined based on the Company’s analysis of comparable acquisitions and the target market’s potential future cash flows. The Company paid $569,000 in acquisition-related costs, which was recorded in general and administrative expenses. | |||||||||||
The Company’s home-based services segment recognized aggregate goodwill of $25.7 million for the acquisitions, including $622,000 of noncontrolling goodwill. Goodwill generated from the acquisitions was recognized based on the expected contributions of each acquisition to the overall corporate strategy. The Company expects its portion of goodwill to be fully tax deductible. The following table summarizes the aggregate consideration paid for the acquisitions and the amounts of the assets acquired and liabilities assumed at the acquisition dates, as well as the fair value at the acquisition dates of the noncontrolling interest acquired (all amounts are in thousands): | |||||||||||
Consideration | |||||||||||
Cash | $ | 26,920 | |||||||||
Fair value of total consideration transferred | $ | 26,920 | |||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||||||
Trade name | $ | 1,177 | |||||||||
Certificate of need/license | 598 | ||||||||||
Other identifiable intangible assets | 331 | ||||||||||
Other assets and (liabilities), net | (321 | ) | |||||||||
Total identifiable assets | $ | 1,785 | |||||||||
Noncontrolling interest | $ | 608 | |||||||||
Goodwill, including noncontrolling interest of $622 | $ | 25,743 | |||||||||
Trade names, certificates of need and licenses are indefinite-lived assets and, therefore, not subject to amortization. Acquired trade names that are not being used actively are amortized over the estimated useful life on the straight line basis. The other identifiable assets include non-compete agreements that are amortized over the life of the agreements ranging from two to five years. Noncontrolling interest is valued at fair value by applying a discount to the value of the acquired entity for lack of control. The fair value of the acquired intangible assets is preliminary pending the final valuation of those assets. | |||||||||||
Purchase of Membership Interest in Company’s Subsidiary | |||||||||||
During the nine months ended September 30, 2013, the Company purchased additional membership interests in six of its equity joint ventures. The total purchase price for the additional ownership from these equity transactions was $1.9 million, resulting in the Company reducing noncontrolling interest-redeemable by $612,000 and additional paid in capital by $1.3 million. | |||||||||||
Goodwill_and_Intangibles
Goodwill and Intangibles | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Goodwill and Intangibles | ' | ||||||||||||||||
4. Goodwill and Intangibles | |||||||||||||||||
The changes in recorded goodwill by segment for the nine months ended September 30, 2013 were as follows (amounts in thousands): | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | |||||||||||||||||
Home-based services segment: | |||||||||||||||||
Balance at beginning of period | $ | 157,559 | |||||||||||||||
Goodwill from acquisitions | 25,121 | ||||||||||||||||
Goodwill related to noncontrolling interest | 622 | ||||||||||||||||
Balance as of September 30, 2013 | $ | 183,302 | |||||||||||||||
Facility-based services segment: | |||||||||||||||||
Balance at beginning of period | $ | 11,591 | |||||||||||||||
Balance as of September 30, 2013 | $ | 11,591 | |||||||||||||||
Consolidated balance as of September 30, 2013 | $ | 194,893 | |||||||||||||||
The following table summarizes the changes in intangible assets during the nine months ended September 30, 2013 (amounts in thousands): | |||||||||||||||||
Trade Names | Certificate of | Other | Total | ||||||||||||||
Need/ | Intangibles | ||||||||||||||||
License | |||||||||||||||||
Balance as of December 31, 2012 | $ | 51,408 | $ | 10,100 | $ | 534 | $ | 62,042 | |||||||||
Additions | 1,177 | 598 | 331 | 2,106 | |||||||||||||
Amortization | (569 | ) | — | (380 | ) | (949 | ) | ||||||||||
Balance as of September 30, 2013 | $ | 52,016 | $ | 10,698 | $ | 485 | $ | 63,199 | |||||||||
Intangible assets of $62.1 million, net of accumulated amortization, were related to the home-based services segment and $1.1 million were related to the facility-based services segment as of September 30, 2013. | |||||||||||||||||
During the nine months ended September 30, 2013, the Company determined there was no impairment of goodwill in any reporting unit nor certain intangible assets. During the nine months ended September 30, 2012, the Company recorded an impairment change related to certain intangible assets of $650,000. | |||||||||||||||||
Credit_Facility
Credit Facility | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Credit Facility | ' |
5. Credit Facility | |
As of September 30, 2013 and December 31, 2012, respectively, the Company had $24.0 million and $19.5 million drawn and letters of credit totaling $6.2 million and $6.0 million outstanding under the Company’s credit agreement with Capital One, National Association. The interest rate for borrowings under its credit facility is a function of the prime rate (base rate) or London Interbank Offered Rate (“LIBOR”) as elected by the Company, plus the applicable margin based on the Leverage Ratio, as defined in the credit agreement. The interest rate at September 30, 2013 was 4.25%. | |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
6. Income Taxes | |
As of September 30, 2013, an unrecognized tax benefit of $3.4 million was recorded in income tax payable, which, if recognized, would decrease the Company’s effective tax rate. All of the Company’s unrecognized tax benefit is due to the settlement with the United States of America, which was announced September 30, 2011. | |
Stockholders_Equity
Stockholder's Equity | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Equity [Abstract] | ' | ||||||||
Stockholder's Equity | ' | ||||||||
7. Stockholder’s Equity | |||||||||
Equity Based Awards | |||||||||
The 2010 Long Term Incentive Plan (the “2010 Incentive Plan”) is administered by the Compensation Committee of the Company’s Board of Directors. A total of 1,500,000 shares of the Company’s common stock is reserved and available for issuance pursuant to awards granted under the 2010 Incentive Plan. A variety of discretionary awards for employees, officers, directors and consultants are authorized under the 2010 Incentive Plan, including incentive or non-qualified statutory stock options and nonvested stock. All awards must be evidenced by a written award certificate which will include the provisions specified by the Compensation Committee of the Board of Directors. The Compensation Committee determines the exercise price for non-statutory stock options. The exercise price for any option cannot be less than the fair market value of the Company’s common stock as of the date of grant. | |||||||||
Share Based Compensation | |||||||||
Nonvested Stock | |||||||||
During the nine months ended September 30, 2013, the Company’s independent directors were granted 24,300 nonvested shares of common stock under the 2005 Director Compensation Plan. The shares were drawn from the 1,500,000 shares of common stock reserved and available for issuance under the 2010 Incentive Plan. The shares vest 100% on the one year anniversary date. During the nine months ended September 30, 2013, employees were granted 181,648 nonvested shares of common stock pursuant to the 2010 Incentive Plan. The shares generally vest over a five year period, conditioned on continued employment for the full incentive period. The fair value of nonvested shares of common stock is determined based on the closing trading price of the Company’s common stock on the grant date. The weighted average grant date fair value of nonvested shares of common stock granted during the nine months ended September 30, 2013 was $21.21. | |||||||||
The following table represents the nonvested stock activity for the nine months ended September 30, 2013: | |||||||||
Number of | Weighted | ||||||||
Shares | average grant | ||||||||
date fair value | |||||||||
Nonvested shares outstanding as of December 31, 2012 | 486,061 | $ | 22.33 | ||||||
Granted | 205,948 | $ | 21.21 | ||||||
Vested | (175,721 | ) | $ | 21.82 | |||||
Nonvested shares outstanding as of September 30, 2013 | 516,288 | $ | 22.05 | ||||||
During the nine months ended September 30, 2013, an independent director of the Company received a share based award, which will be settled in cash at March 1, 2014. The amount of such cash payment will equal the fair market value of 2,700 shares on the settlement date. | |||||||||
As of September 30, 2013, there was $8.5 million of total unrecognized compensation cost related to nonvested shares of common stock granted. That cost is expected to be recognized over the weighted average period of 3.28 years. The total fair value of shares of common stock vested during the nine months ended September 30, 2013 and 2012 was $3.8 million and $3.5 million, respectively. The Company records compensation expense related to nonvested stock awards at the grant date for shares of common stock that are awarded fully vested, and over the vesting term on a straight line basis for shares of common stock that vest over time. The Company recorded $2.9 million and $3.4 million of compensation expense related to nonvested stock grants in the nine months ended September 30, 2013 and 2012, respectively. | |||||||||
Employee Stock Purchase Plan | |||||||||
In 2006, the Company adopted the Employee Stock Purchase Plan whereby eligible employees may purchase the Company’s common stock at 95% of the market price on the last day of the calendar quarter. There were 250,000 shares of common stock initially reserved for the plan. | |||||||||
On June 20, 2013, the Amended and Restated Employee Stock Purchase Plan was approved by the Company’s stockholders. | |||||||||
As a result of the amendment, the Employee Stock Purchase Plan was modified as follows: | |||||||||
• | An additional 250,000 shares of common stock were authorized for issuance over the term of the Employee Stock Purchase Plan. | ||||||||
• | The term of the Employee Stock Purchase Plan was extended from January 1, 2016 to January 1, 2023. | ||||||||
The table below details the shares of common stock issued during 2013: | |||||||||
Number of | Per share | ||||||||
Shares | price | ||||||||
Shares available as of December 31, 2012 | 61,247 | ||||||||
Additional shares authorized for issuance | 250,000 | ||||||||
Shares issued during three months ended March 31, 2013 | 8,845 | $ | 20.24 | ||||||
Shares issued during three months ended June 30, 2013 | 10,385 | $ | 20.43 | ||||||
Shares issued during three months ended September 30, 2013 | 9,600 | $ | 18.6 | ||||||
Shares available as of September 30, 2013 | 282,417 | ||||||||
Stock Options | |||||||||
As of September 30, 2013, 15,000 options were issued and exercisable. During the nine months ended September 30, 2013, no options were exercised or forfeited and no options were granted. | |||||||||
Treasury Stock | |||||||||
In conjunction with the vesting of the nonvested shares of common stock, recipients incur personal income tax obligations. The Company allows the recipients to turn in shares of common stock to satisfy minimum tax obligations. During the nine months ended September 30, 2013, the Company redeemed 37,353 shares of common stock valued at $794,000, related to these tax obligations. | |||||||||
Stock Repurchase Program | |||||||||
In October 2010, the Company’s Board of Directors authorized a share repurchase program to repurchase shares of the Company’s common stock, from time to time, in an amount not to exceed $50.0 million (“the Stock Repurchase Program”). The Company anticipates that it will finance any future such repurchases made under the Stock Repurchase Program with cash from general corporate funds or draws under its credit facility. The Company may repurchase shares of common stock in open market purchases or in privately negotiated transactions in accordance with applicable securities laws, rules and regulations. The timing and extent to which the Company repurchases its shares will depend upon market conditions and other corporate considerations. | |||||||||
The Company uses the cost method to account for the repurchase of common stock and the average cost method to account for reissuance of treasury shares. During the nine months ended September 30, 2013, no shares have been repurchased or reissued from treasury shares. The remaining dollar value of shares authorized to be purchased under the Stock Repurchase Program was $22.5 million as of September 30, 2013. | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
8. Commitments and Contingencies | |
Contingencies | |
The Company is involved in various legal proceedings arising in the ordinary course of business. Although the results of litigation cannot be predicted with certainty, management believes the outcome of pending litigation will not have a material adverse effect, after considering the effect of the Company’s insurance coverage, on the Company’s condensed consolidated financial statements. | |
On October 17, 2011, the Company received a subpoena from the Department of Health and Human Services Office of Inspector General (the “OIG”). The subpoena requests documents related to the Company’s agencies in Oregon, Washington and Idaho. The Company is continuing to produce the requested documents and is cooperating with the OIG’s review in this matter. The Company cannot predict the outcome or effect of this review, if any, on the Company’s business. | |
On June 13, 2012, a putative shareholder securities class action was filed against the Company and its Chairman and Chief Executive Officer in the United States District Court for the Western District of Louisiana, styled City of Omaha Police & Fire Retirement System v. LHC Group, Inc., et al., Case No. 6:12-cv-01609-JTT-CMH. The action was filed on behalf of LHC shareholders who purchased shares of the Company’s common stock between July 30, 2008 and October 26, 2011. Plaintiff generally alleges that the defendants caused false and misleading statements to be issued in violation of Section 10(b) of the Securities Exchange Act of 1934, amended (“the Exchange Act”) and Rule 10b-5 promulgated thereunder and that the Company’s Chairman and Chief Executive Officer is a control person under Section 20(a) of the Exchange Act. On November 2, 2012, Lead Plaintiff City of Omaha Police & Fire Retirement System filed an Amended Complaint for Violations of the Federal Securities Laws (“the Amended Complaint”) on behalf of the same putative class of LHC shareholders as the original Complaint. In addition to claims under Sections 10(b) and 20(a) of the Exchange Act, the Amended Complaint added a claim against the Chairman and Chief Executive Officer for violation of Section 20A of the Exchange Act. The Company believes these claims are without merit and intends to defend this lawsuit vigorously. On December 17, 2012, the Company and the Chairman and Chief Executive Officer filed a motion to dismiss the Amended Complaint, which was denied by Order dated March 15, 2013. The parties are presently conducting fact discovery. The Company cannot predict the outcome or effect of this lawsuit, if any, on the Company’s financial condition and results of operations. | |
On October 18, 2013, a derivative complaint was filed by a purported Company shareholder against certain of the Company’s current and former executive officers, employees and members of its Board of Directors in the United States District Court for the Western District of Louisiana, styled Plummer v. Myers, et al., Case No. 6:13-cv-02899. The action was brought derivatively on behalf of the Company, which is also named as a nominal defendant. Plaintiff generally alleges that the individual defendants breached their fiduciary duties owed to the Company. The complaint also alleges claims for insider selling and unjust enrichment against the Company’s Chairman and Chief Executive Officer and the Company’s former President and Chief Operating Officer. The Company believes these claims are without merit and intends to defend this lawsuit vigorously. The Company cannot predict the outcome or effect of this lawsuit, if any, on the Company’s financial condition and results of operations. | |
Except as discussed above, the Company is not aware of any pending or threatened investigations involving allegations of potential wrongdoing. | |
Any negative findings in the investigations or lawsuits described above could result in substantial financial penalties or awards against the Company or exclusion from future participation in the Medicare and Medicaid programs. At this time, the Company cannot predict the ultimate outcome of these inquiries or the potential range of damages, if any. | |
Joint Venture Buy/Sell Provisions | |
Several of the Company’s equity joint ventures include a buy/sell option that grants to the Company and its equity joint venture partners the right to require the other equity joint venture party to either purchase all of the exercising member’s membership interests or sell to the exercising member all of the non-exercising member’s membership interest, at the non-exercising member’s option, within 30 days of the receipt of notice of the exercise of the buy/sell option. In some instances, the purchase price is based on a multiple of the historical or future earnings before income taxes and depreciation and amortization of the equity joint venture at the time the buy/sell option is exercised. In other instances, the buy/sell purchase price will be negotiated by the partners and subject to a fair market valuation process. | |
Compliance | |
Certain laws and regulations governing the Company’s operations, along with the terms of participation in various government programs, regulate how the Company does business, the services offered and its interactions with patients and the public. These laws and regulations and their interpretations, are subject to frequent change. Changes in existing laws or regulations, or their interpretations, or the enactment of new laws or regulations could materially and adversely affect the Company’s operations and financial condition. | |
The Company is subject to various routine and non-routine governmental reviews, audits and investigations. In recent years, federal and state civil and criminal enforcement agencies have heightened and coordinated their oversight efforts related to the health care industry, including referral practices, cost reporting, billing practices, joint ventures and other financial relationships among health care providers. Violation of the laws governing the Company’s operations, or changes in the interpretation of those laws, could result in the imposition of fines, civil or criminal penalties, and/or termination of the Company’s rights to participate in federal and state-sponsored programs and suspension or revocation of the Company’s licenses. The Company believes that it is in material compliance with all applicable laws and regulations. | |
Noncontrolling_interest
Noncontrolling interest | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Noncontrolling Interest [Abstract] | ' | ||||
Noncontrolling interest | ' | ||||
9. Noncontrolling interest | |||||
Noncontrolling Interest-Redeemable | |||||
A majority of the Company’s equity joint venture agreements include a provision that requires the Company to purchase the noncontrolling partner’s interest upon the occurrence of certain triggering events, such as death or bankruptcy of the partner or the partner’s exclusion from the Medicare or Medicaid programs. These triggering events and the related repurchase provisions are specific to each individual equity joint venture; if the repurchase provision is triggered in any one equity joint venture, the remaining equity joint ventures would not be impacted. Upon the occurrence of a triggering event, the Company would be required to purchase the noncontrolling partner’s interest at either the fair value or the book value at the time of purchase as stated in the agreement. Historically, no triggering event has occurred, and the Company believes the likelihood of a triggering event occurring is remote. The Company has never been required to purchase the noncontrolling interest of any of its equity joint venture partners. According to authoritative guidance, redeemable noncontrolling interests must be reported outside of permanent equity on the consolidated balance sheet in instances where there is a repurchase provision with a triggering event that is outside the control of the Company. | |||||
The following table summarizes the activity of noncontrolling interest-redeemable for the nine months ended September 30, 2013 (amounts in thousands): | |||||
Balance as of December 31, 2012 | $ | 11,426 | |||
Net income attributable to noncontrolling interest-redeemable | 4,241 | ||||
Noncontrolling interest-redeemable distributions | (5,538 | ) | |||
Transfer of noncontrolling interest | 1,342 | ||||
Acquired noncontrolling interest (1) | 608 | ||||
Purchase of additional controlling interest | (612 | ) | |||
Balance as of September 30, 2013 | $ | 11,467 | |||
-1 | The noncontrolling interest balance at December 31, 2012 included a preliminary fair value of the noncontrolling interest acquired in 2012. The valuation was finalized and recorded during the nine months ended September 30, 2013. |
Allowance_for_Uncollectible_Ac
Allowance for Uncollectible Accounts | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||
Allowance for Uncollectible Accounts | ' | ||||
10. Allowance for Uncollectible Accounts | |||||
The following table summarizes the activity and ending balances in the allowance for uncollectible accounts (amounts in thousands): | |||||
Balance as of December 31, 2012 | $ | 11,863 | |||
Additions and expenses | 9,833 | ||||
Deductions | (7,701 | ) | |||
Balance as of September 30, 2013 | $ | 13,995 | |||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value of Financial Instruments | ' |
11. Fair Value of Financial Instruments | |
The carrying amounts of the Company’s cash, receivables, accounts payable and accrued liabilities approximate their fair values. For the nine months ended September 30, 2013, the carrying value of the Company’s long-term debt approximates fair value as the interest rates approximate current rates. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
12. Segment Information | |||||||||||||
The Company’s segments consist of home-based services and facility-based services. Home-based services include home nursing services and hospice services. Facility-based services include long-term acute care services. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. | |||||||||||||
A reclassification has been made to the three and nine months ended September 30, 2012 segment information to reclassify $400,000 of other intangibles impairment charge, $162,400 of income tax expense and $400,000 reduction of assets to the facility-based services segment. The amount was previously recorded in home-based services segment; however, the transactions are specific to the facility-based services segment. | |||||||||||||
The following tables summarize the Company’s segment information for the three and nine months ended September 30, 2013 and 2012 (amounts in thousands): | |||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||
Home- | Facility- | Total | |||||||||||
Based | Based | ||||||||||||
Services | Services | ||||||||||||
Net service revenue | $ | 146,910 | $ | 17,838 | $ | 164,748 | |||||||
Cost of service revenue | 87,082 | 10,884 | 97,966 | ||||||||||
Provision for bad debts | 2,651 | 57 | 2,708 | ||||||||||
General and administrative expenses | 47,969 | 5,078 | 53,047 | ||||||||||
Operating income | 9,208 | 1,819 | 11,027 | ||||||||||
Interest expense | (387 | ) | (43 | ) | (430 | ) | |||||||
Non-operating income | 36 | 18 | 54 | ||||||||||
Income before income taxes and noncontrolling interest | 8,857 | 1,794 | 10,651 | ||||||||||
Income tax expense | 3,422 | 360 | 3,782 | ||||||||||
Net income | 5,435 | 1,434 | 6,869 | ||||||||||
Less net income attributable to noncontrolling interests | 1,279 | 293 | 1,572 | ||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 4,156 | $ | 1,141 | $ | 5,297 | |||||||
Total assets | $ | 379,340 | $ | 34,693 | $ | 414,033 | |||||||
Three Months Ended September 30, 2012 | |||||||||||||
Home- | Facility- | Total | |||||||||||
Based | Based | ||||||||||||
Services | Services | ||||||||||||
Net service revenue | $ | 140,256 | $ | 18,670 | $ | 158,926 | |||||||
Cost of service revenue | 80,579 | 10,655 | 91,234 | ||||||||||
Provision for bad debts | 2,669 | 318 | 2,987 | ||||||||||
General and administrative expenses | 47,110 | 5,354 | 52,464 | ||||||||||
Other intangibles impairment charge | 250 | 400 | 650 | ||||||||||
Operating income | 9,648 | 1,943 | 11,591 | ||||||||||
Interest expense | (364 | ) | (41 | ) | (405 | ) | |||||||
Non-operating income | 74 | 20 | 94 | ||||||||||
Income before income taxes and noncontrolling interest | 9,358 | 1,922 | 11,280 | ||||||||||
Income tax expense | 3,213 | 175 | 3,388 | ||||||||||
Net income | 6,145 | 1,747 | 7,892 | ||||||||||
Less net income attributable to noncontrolling interests | 1,308 | 248 | 1,556 | ||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 4,837 | $ | 1,499 | $ | 6,336 | |||||||
Total assets | $ | 352,941 | $ | 34,557 | $ | 387,498 | |||||||
Nine Months Ended September 30, 2013 | |||||||||||||
Home- | Facility- | Total | |||||||||||
Based | Based | ||||||||||||
Services | Services | ||||||||||||
Net service revenue | $ | 435,441 | $ | 57,562 | $ | 493,003 | |||||||
Cost of service revenue | 254,924 | 33,299 | 288,223 | ||||||||||
Provision for bad debts | 8,796 | 1,037 | 9,833 | ||||||||||
General and administrative expenses | 142,908 | 15,919 | 158,827 | ||||||||||
Operating income | 28,813 | 7,307 | 36,120 | ||||||||||
Interest expense | (1,404 | ) | (151 | ) | (1,555 | ) | |||||||
Non-operating income | 115 | 69 | 184 | ||||||||||
Income before income taxes and noncontrolling interest | 27,524 | 7,225 | 34,749 | ||||||||||
Income tax expense | 11,062 | 1,174 | 12,236 | ||||||||||
Net income | 16,462 | 6,051 | 22,513 | ||||||||||
Less net income attributable to noncontrolling interests | 4,094 | 1,046 | 5,140 | ||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 12,368 | $ | 5,005 | $ | 17,373 | |||||||
Nine Months Ended September 30, 2012 | |||||||||||||
Home- | Facility- | Total | |||||||||||
Based | Based | ||||||||||||
Services | Services | ||||||||||||
Net service revenue | $ | 419,847 | $ | 55,895 | $ | 475,742 | |||||||
Cost of service revenue | 240,347 | 32,964 | 273,311 | ||||||||||
Provision for bad debts | 7,626 | 769 | 8,395 | ||||||||||
General and administrative expenses | 137,902 | 16,411 | 154,313 | ||||||||||
Other intangibles impairment charge | 250 | 400 | 650 | ||||||||||
Operating income | 33,722 | 5,351 | 39,073 | ||||||||||
Interest expense | (874 | ) | (98 | ) | (972 | ) | |||||||
Non-operating income | 77 | 31 | 108 | ||||||||||
Income before income taxes and noncontrolling interest | 32,925 | 5,284 | 38,209 | ||||||||||
Income tax expense | 11,641 | 1,065 | 12,706 | ||||||||||
Net income | 21,284 | 4,219 | 25,503 | ||||||||||
Less net income attributable to noncontrolling interests | 4,826 | 637 | 5,463 | ||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 16,458 | $ | 3,582 | $ | 20,040 | |||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Critical Accounting Policies | ' | ||||||||||||||||
Critical Accounting Policies | |||||||||||||||||
The Company’s most critical accounting policies relate to the principles of consolidation, revenue recognition and accounts receivable and allowances for uncollectible accounts. | |||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The condensed consolidated financial statements include all subsidiaries and entities controlled by the Company. Control is defined by the Company as ownership of a majority of the voting interest of an entity. The condensed consolidated financial statements include entities in which the Company receives a majority of the entities’ expected residual returns, absorbs a majority of the entities’ expected losses, or both, as a result of ownership, contractual or other financial interests in the entity. Third party equity interests in the consolidated joint ventures are reflected as noncontrolling interests in the Company’s condensed consolidated financial statements. | |||||||||||||||||
The following table summarizes the percentage of net service revenue earned by type of ownership or relationship the Company had with the operating entity: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Equity joint ventures | 48.1 | % | 49.1 | % | 48.9 | % | 48.7 | % | |||||||||
Wholly-owned subsidiaries | 49.3 | % | 48.1 | % | 48.4 | % | 48.5 | % | |||||||||
License leasing arrangements | 1.8 | % | 1.9 | % | 1.9 | % | 1.9 | % | |||||||||
Management services | 0.8 | % | 0.9 | % | 0.8 | % | 0.9 | % | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
All significant intercompany accounts and transactions have been eliminated in the Company’s accompanying condensed consolidated financial statements. Business combinations accounted for under the acquisition method have been included in the condensed consolidated financial statements from the respective dates of acquisition. | |||||||||||||||||
The following describes the Company’s consolidation policy with respect to its various ventures excluding wholly-owned subsidiaries: | |||||||||||||||||
Equity Joint Ventures | |||||||||||||||||
The members of the Company’s equity joint ventures participate in profits and losses in proportion to their equity interests. The Company consolidates these entities as the Company has voting control over the entities. The Company typically owns a majority equity interest ranging from 51% to 91% in these joint ventures. | |||||||||||||||||
License Leasing Arrangements | |||||||||||||||||
The Company, through wholly-owned subsidiaries, leases home health licenses necessary to operate certain of its home nursing agencies. As with its wholly-owned subsidiaries, the Company owns 100% of the equity of these entities and consolidates them based on such ownership. | |||||||||||||||||
Management Services | |||||||||||||||||
The Company has various management services agreements under which the Company manages certain operations of agencies and facilities. The Company does not consolidate these agencies or facilities because the Company does not have an ownership interest and does not have an obligation to absorb losses of the entities or the right to receive the benefits from the entities. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
The Company reports net service revenue at the estimated net realizable amount due from Medicare, Medicaid, commercial insurance, managed care payors, patients and others for services rendered. All payors contribute to both the home-based services and facility-based services. | |||||||||||||||||
The following table sets forth the percentage of net service revenue earned by category of payor for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Payor: | |||||||||||||||||
Medicare | 80.3 | % | 77.2 | % | 79.8 | % | 77.9 | % | |||||||||
Medicaid | 1.3 | % | 1.7 | % | 1.4 | % | 1.9 | % | |||||||||
Other | 18.4 | % | 21.1 | % | 18.8 | % | 20.2 | % | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
The percentage of net service revenue contributed from each reporting segment for the three and nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Home-based services | 89.2 | % | 88.3 | % | 88.3 | % | 88.3 | % | |||||||||
Facility-based services | 10.8 | % | 11.7 | % | 11.7 | % | 11.7 | % | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
Medicare | |||||||||||||||||
Home-Based Services | |||||||||||||||||
Home Nursing Services. The Company’s home nursing Medicare patients are classified into one of 153 home health resource groups prior to receiving services. Based on the patient’s home health resource group, the Company is entitled to receive a standard prospective Medicare payment for delivering care over a 60-day period referred to as an episode. The Company recognizes revenue based on the number of days elapsed during an episode of care within the reporting period. | |||||||||||||||||
Final payments from Medicare may reflect one of four retroactive adjustments to ensure the adequacy and effectiveness of the total reimbursement: (a) an outlier payment if the patient’s care was unusually costly; (b) a low utilization adjustment if the number of visits was fewer than five; (c) a partial payment if the patient transferred to another provider before completing the episode; or (d) a payment adjustment based upon the level of therapy services required in the population base. In calculating net service revenue, management estimates the impact of these payment adjustments based on historical experience and records this estimate as the services are rendered using the expected level of services that will be provided and the schedule of those services or a historical average of prior adjustments. | |||||||||||||||||
Hospice Services. The Company is paid by Medicare under a per diem payment system. The Company receives one of four predetermined daily or hourly rates based upon the level of care the Company furnished. The Company records net service revenue from hospice services based on the daily or hourly rate and recognizes revenue as hospice services are provided. | |||||||||||||||||
Hospice payments are also subject to an inpatient cap and an overall Medicare payment cap. Inpatient cap relates to individual programs receiving more than 20% of its total Medicare reimbursement from inpatient care services and the overall Medicare payment cap relates to individual providers receiving reimbursements in excess of a “cap amount,” calculated by multiplying the number of beneficiaries during the period by a statutory amount that is indexed for inflation. The determination for each cap is made annually based on the 12-month period ending on October 31 of each year. The Company monitors its limits on a provider-by-provider basis and records an estimate of its liability for reimbursements received in excess of the cap amount. Annually, the Company receives notification of whether any of its hospice providers have exceeded either cap. Adjustments resulting from these notifications have not been material. | |||||||||||||||||
Facility-Based Services | |||||||||||||||||
Long-Term Acute Care Services. The Company is reimbursed by Medicare for services provided under the LTACH prospective payment system. Each patient is assigned a long-term care diagnosis-related group. The Company is paid a predetermined fixed amount intended to reflect the average cost of treating a Medicare patient classified in that particular long-term care diagnosis-related group. For selected patients, the amount may be further adjusted based on length of stay and facility-specific costs, as well as in instances where a patient is discharged and subsequently re-admitted, among other factors. The Company calculates the adjustment based on a historical average of these types of adjustments for claims paid. Similar to other Medicare prospective payment systems, the rate is also adjusted for geographic wage differences. Revenue is recognized for the Company’s LTACHs as services are provided. | |||||||||||||||||
Medicaid, managed care and other payors | |||||||||||||||||
The Company’s Medicaid reimbursement is based on a predetermined fee schedule applied to each service provided. Therefore, revenue is recognized for Medicaid services as services are provided based on this fee schedule. The Company’s managed care and other payors reimburse the Company in a manner similar to either Medicare or Medicaid. Accordingly, the Company recognizes revenue from managed care and other payors in the same manner as the Company recognizes revenue from Medicare or Medicaid. | |||||||||||||||||
Management Services | |||||||||||||||||
The Company records management services revenue as such services are provided in accordance with the various management services agreements to which the Company is a party. As described in the management services agreements, the Company provides billing, management and other consulting services suited to and designed for the efficient operation of the applicable home nursing agency. The Company is responsible for the costs associated with the locations and personnel required for the provision of services. The Company is compensated based on two management fee structures. One management fee structure is based on a percentage of cash collections, while the second management fee structure is based on reimbursement of operating expenses plus a percentage of operating net income. | |||||||||||||||||
Accounts Receivable and Allowances for Uncollectible Accounts | ' | ||||||||||||||||
Accounts Receivable and Allowances for Uncollectible Accounts | |||||||||||||||||
The Company reports accounts receivable net of estimated allowances for uncollectible accounts and adjustments. Accounts receivable are uncollateralized and primarily consist of amounts due from Medicare, other third-party payors, and patients. To provide for accounts receivable that could become uncollectible in the future, the Company establishes an allowance for uncollectible accounts to reduce the carrying amount of such receivables to their estimated net realizable value. The credit risk for other concentrations of receivables is limited due to the significance of Medicare as the primary payor. The Company believes the credit risk associated with its Medicare accounts, which have historically exceeded 60% of its patient accounts receivable, is limited due to (i) the historical collection rate from Medicare and (ii) the fact that Medicare is a U.S. government payor. The Company does not believe that there are any other concentrations of receivables from any particular payor that would subject it to any significant credit risk in the collection of accounts receivable. | |||||||||||||||||
The provision for bad debts is based upon the Company’s assessment of historical and expected net collections, business and economic conditions and trends in government reimbursement. Uncollectible accounts are written off when the Company has determined the account will not be collected. | |||||||||||||||||
A portion of the estimated Medicare prospective payment system reimbursement from each submitted home nursing episode is received in the form of a request for anticipated payment (“RAP”). The Company submits a RAP for 60% of the estimated reimbursement for the initial episode at the start of care. The full amount of the episode is billed after the episode has been completed. The RAP received for that particular episode is deducted from the final payment. If a final bill is not submitted within the greater of 120 days from the start of the episode, or 60 days from the date the RAP was paid, any RAP received for that episode will be recouped by Medicare from any other Medicare claims in process for that particular provider. The RAP and final claim must then be resubmitted. For subsequent episodes of care contiguous with the first episode for a particular patient, the Company submits a RAP for 50% instead of 60% of the estimated reimbursement. | |||||||||||||||||
The Company’s Medicare population is paid at a prospectively set amount that can be determined at the time services are rendered. The Company’s Medicaid reimbursement is based on a predetermined fee schedule applied to each individual service it provides. The Company’s managed care contracts and contracts with other payors are structured similar to either the Medicare or Medicaid payment methodologies. Because of its payor mix, the Company is able to calculate its actual amount due at the patient level and adjust the gross charges down to the actual amount at the time of billing. This negates the need to record an estimated contractual allowance when reporting net service revenue for each reporting period. | |||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Earnings Per Share | |||||||||||||||||
Basic per share information is computed by dividing the relevant amounts from the condensed consolidated statements of income by the weighted-average number of shares outstanding during the period, under the treasury stock method. Diluted per share information is also computed using the treasury stock method, by dividing the relevant amounts from the condensed consolidated statements of income by the weighted-average number of shares outstanding plus potentially dilutive shares. | |||||||||||||||||
The following table sets forth shares used in the computation of basic and diluted per share information: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average number of shares outstanding for basic per share calculation | 17,083,201 | 17,656,842 | 17,035,541 | 18,121,217 | |||||||||||||
Effect of dilutive potential shares: | |||||||||||||||||
Options | 4,208 | 1,935 | 4,032 | 1,849 | |||||||||||||
Nonvested stock | 94,604 | 68,042 | 70,102 | 37,423 | |||||||||||||
Adjusted weighted average shares for diluted per share calculation | 17,182,013 | 17,726,819 | 17,109,675 | 18,160,489 | |||||||||||||
Anti-dilutive shares | 94,299 | 176,641 | 181,648 | 348,595 |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Percentage of Net Service Revenue Earned by Type of Ownership or Relationship with Operating Entity | ' | ||||||||||||||||
The following table summarizes the percentage of net service revenue earned by type of ownership or relationship the Company had with the operating entity: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Equity joint ventures | 48.1 | % | 49.1 | % | 48.9 | % | 48.7 | % | |||||||||
Wholly-owned subsidiaries | 49.3 | % | 48.1 | % | 48.4 | % | 48.5 | % | |||||||||
License leasing arrangements | 1.8 | % | 1.9 | % | 1.9 | % | 1.9 | % | |||||||||
Management services | 0.8 | % | 0.9 | % | 0.8 | % | 0.9 | % | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
Percentage of Net Service Revenue Earned by Category of Payor | ' | ||||||||||||||||
The following table sets forth the percentage of net service revenue earned by category of payor for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Payor: | |||||||||||||||||
Medicare | 80.3 | % | 77.2 | % | 79.8 | % | 77.9 | % | |||||||||
Medicaid | 1.3 | % | 1.7 | % | 1.4 | % | 1.9 | % | |||||||||
Other | 18.4 | % | 21.1 | % | 18.8 | % | 20.2 | % | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
Percentage of Net Service Revenue Contributed from Each Reporting Segment | ' | ||||||||||||||||
The percentage of net service revenue contributed from each reporting segment for the three and nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Home-based services | 89.2 | % | 88.3 | % | 88.3 | % | 88.3 | % | |||||||||
Facility-based services | 10.8 | % | 11.7 | % | 11.7 | % | 11.7 | % | |||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
Shares Used in Computation of Basic and Diluted Per Share Information | ' | ||||||||||||||||
The following table sets forth shares used in the computation of basic and diluted per share information: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average number of shares outstanding for basic per share calculation | 17,083,201 | 17,656,842 | 17,035,541 | 18,121,217 | |||||||||||||
Effect of dilutive potential shares: | |||||||||||||||||
Options | 4,208 | 1,935 | 4,032 | 1,849 | |||||||||||||
Nonvested stock | 94,604 | 68,042 | 70,102 | 37,423 | |||||||||||||
Adjusted weighted average shares for diluted per share calculation | 17,182,013 | 17,726,819 | 17,109,675 | 18,160,489 | |||||||||||||
Anti-dilutive shares | 94,299 | 176,641 | 181,648 | 348,595 |
Acquisitions_and_Disposals_Tab
Acquisitions and Disposals (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Business Combinations [Abstract] | ' | ||||||||||
Schedule of Acquired Entities | ' | ||||||||||
The Company maintains an ownership interest in the acquired entities as set forth below: | |||||||||||
Acquired Entity | Ownership | State of Operations | Acquisition | ||||||||
Percentage | Date | ||||||||||
LHCG XXXVII, LLC (d/b/a Addus HealthCare) | 90 | % | Illinois | 3/1/13 | |||||||
LHCG XXXVIII, LLC (d/b/a Addus HealthCare) | 90 | % | California | 3/1/13 | |||||||
LHCG XLII, LLC (d/b/a/ Arkansas HomeCare) | 100 | % | Arkansas | 3/1/13 | |||||||
LHCG XLI, LLC (d/b/a South Carolina HomeCare) | 100 | % | South Carolina | 3/1/13 | |||||||
LHCG XXXIX, LLC (d/b/a Addus HealthCare) | 100 | % | Nevada | 3/1/13 | |||||||
LHCG XXXIV, LLC (d/b/a Alabama Hospice Care of Mobile) | 100 | % | Alabama | 4/1/13 | |||||||
LHCG XL, LLC (d/b/a Georgia Home Health) | 100 | % | Georgia | 7/1/13 | |||||||
Acquired Entity | Ownership | State of Operations | Acquisition | ||||||||
Percentage | Date | ||||||||||
LHCG XXVII, LLC (d/b/a Pennsylvania Home Health) | 100 | % | Pennsylvania | 7/1/13 | |||||||
LHCG XLVIII, LLC (d/b/a Minnesota Home Health) | 100 | % | Minnesota | 7/1/13 | |||||||
LHCG XLVII, LLC (d/b/a Wisconsin Home Health) | 100 | % | Wisconsin | 7/1/13 | |||||||
Schedule of Aggregate Consideration Paid and Recognized Identified Assets Acquired and Liabilities Assumed | ' | ||||||||||
The following table summarizes the aggregate consideration paid for the acquisitions and the amounts of the assets acquired and liabilities assumed at the acquisition dates, as well as the fair value at the acquisition dates of the noncontrolling interest acquired (all amounts are in thousands): | |||||||||||
Consideration | |||||||||||
Cash | $ | 26,920 | |||||||||
Fair value of total consideration transferred | $ | 26,920 | |||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||||||
Trade name | $ | 1,177 | |||||||||
Certificate of need/license | 598 | ||||||||||
Other identifiable intangible assets | 331 | ||||||||||
Other assets and (liabilities), net | (321 | ) | |||||||||
Total identifiable assets | $ | 1,785 | |||||||||
Noncontrolling interest | $ | 608 | |||||||||
Goodwill, including noncontrolling interest of $622 | $ | 25,743 |
Goodwill_and_Intangibles_Table
Goodwill and Intangibles (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Changes in Goodwill by Segment | ' | ||||||||||||||||
The changes in recorded goodwill by segment for the nine months ended September 30, 2013 were as follows (amounts in thousands): | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | |||||||||||||||||
Home-based services segment: | |||||||||||||||||
Balance at beginning of period | $ | 157,559 | |||||||||||||||
Goodwill from acquisitions | 25,121 | ||||||||||||||||
Goodwill related to noncontrolling interest | 622 | ||||||||||||||||
Balance as of September 30, 2013 | $ | 183,302 | |||||||||||||||
Facility-based services segment: | |||||||||||||||||
Balance at beginning of period | $ | 11,591 | |||||||||||||||
Balance as of September 30, 2013 | $ | 11,591 | |||||||||||||||
Consolidated balance as of September 30, 2013 | $ | 194,893 | |||||||||||||||
Schedule of Changes in Intangible Assets | ' | ||||||||||||||||
The following table summarizes the changes in intangible assets during the nine months ended September 30, 2013 (amounts in thousands): | |||||||||||||||||
Trade Names | Certificate of | Other | Total | ||||||||||||||
Need/ | Intangibles | ||||||||||||||||
License | |||||||||||||||||
Balance as of December 31, 2012 | $ | 51,408 | $ | 10,100 | $ | 534 | $ | 62,042 | |||||||||
Additions | 1,177 | 598 | 331 | 2,106 | |||||||||||||
Amortization | (569 | ) | — | (380 | ) | (949 | ) | ||||||||||
Balance as of September 30, 2013 | $ | 52,016 | $ | 10,698 | $ | 485 | $ | 63,199 | |||||||||
Stockholders_Equity_Tables
Stockholder's Equity (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Equity [Abstract] | ' | ||||||||
Nonvested Stock Activity | ' | ||||||||
The following table represents the nonvested stock activity for the nine months ended September 30, 2013: | |||||||||
Number of | Weighted | ||||||||
Shares | average grant | ||||||||
date fair value | |||||||||
Nonvested shares outstanding as of December 31, 2012 | 486,061 | $ | 22.33 | ||||||
Granted | 205,948 | $ | 21.21 | ||||||
Vested | (175,721 | ) | $ | 21.82 | |||||
Nonvested shares outstanding as of September 30, 2013 | 516,288 | $ | 22.05 | ||||||
Shares of Common Stock Issued During 2013 Under Employee Stock Purchase Plan | ' | ||||||||
The table below details the shares of common stock issued during 2013: | |||||||||
Number of | Per share | ||||||||
Shares | price | ||||||||
Shares available as of December 31, 2012 | 61,247 | ||||||||
Additional shares authorized for issuance | 250,000 | ||||||||
Shares issued during three months ended March 31, 2013 | 8,845 | $ | 20.24 | ||||||
Shares issued during three months ended June 30, 2013 | 10,385 | $ | 20.43 | ||||||
Shares issued during three months ended September 30, 2013 | 9,600 | $ | 18.6 | ||||||
Shares available as of September 30, 2013 | 282,417 |
Noncontrolling_interest_Tables
Noncontrolling interest (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Noncontrolling Interest [Abstract] | ' | ||||
Summary of Activity of Noncontrolling Interest-Redeemable | ' | ||||
The following table summarizes the activity of noncontrolling interest-redeemable for the nine months ended September 30, 2013 (amounts in thousands): | |||||
Balance as of December 31, 2012 | $ | 11,426 | |||
Net income attributable to noncontrolling interest-redeemable | 4,241 | ||||
Noncontrolling interest-redeemable distributions | (5,538 | ) | |||
Transfer of noncontrolling interest | 1,342 | ||||
Acquired noncontrolling interest (1) | 608 | ||||
Purchase of additional controlling interest | (612 | ) | |||
Balance as of September 30, 2013 | $ | 11,467 | |||
-1 | The noncontrolling interest balance at December 31, 2012 included a preliminary fair value of the noncontrolling interest acquired in 2012. The valuation was finalized and recorded during the nine months ended September 30, 2013. |
Allowance_for_Uncollectible_Ac1
Allowance for Uncollectible Accounts (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||
Allowance for Uncollectible Accounts Activity and Ending Balances | ' | ||||
The following table summarizes the activity and ending balances in the allowance for uncollectible accounts (amounts in thousands): | |||||
Balance as of December 31, 2012 | $ | 11,863 | |||
Additions and expenses | 9,833 | ||||
Deductions | (7,701 | ) | |||
Balance as of September 30, 2013 | $ | 13,995 | |||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
The following tables summarize the Company’s segment information for the three and nine months ended September 30, 2013 and 2012 (amounts in thousands): | |||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||
Home- | Facility- | Total | |||||||||||
Based | Based | ||||||||||||
Services | Services | ||||||||||||
Net service revenue | $ | 146,910 | $ | 17,838 | $ | 164,748 | |||||||
Cost of service revenue | 87,082 | 10,884 | 97,966 | ||||||||||
Provision for bad debts | 2,651 | 57 | 2,708 | ||||||||||
General and administrative expenses | 47,969 | 5,078 | 53,047 | ||||||||||
Operating income | 9,208 | 1,819 | 11,027 | ||||||||||
Interest expense | (387 | ) | (43 | ) | (430 | ) | |||||||
Non-operating income | 36 | 18 | 54 | ||||||||||
Income before income taxes and noncontrolling interest | 8,857 | 1,794 | 10,651 | ||||||||||
Income tax expense | 3,422 | 360 | 3,782 | ||||||||||
Net income | 5,435 | 1,434 | 6,869 | ||||||||||
Less net income attributable to noncontrolling interests | 1,279 | 293 | 1,572 | ||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 4,156 | $ | 1,141 | $ | 5,297 | |||||||
Total assets | $ | 379,340 | $ | 34,693 | $ | 414,033 | |||||||
Three Months Ended September 30, 2012 | |||||||||||||
Home- | Facility- | Total | |||||||||||
Based | Based | ||||||||||||
Services | Services | ||||||||||||
Net service revenue | $ | 140,256 | $ | 18,670 | $ | 158,926 | |||||||
Cost of service revenue | 80,579 | 10,655 | 91,234 | ||||||||||
Provision for bad debts | 2,669 | 318 | 2,987 | ||||||||||
General and administrative expenses | 47,110 | 5,354 | 52,464 | ||||||||||
Other intangibles impairment charge | 250 | 400 | 650 | ||||||||||
Operating income | 9,648 | 1,943 | 11,591 | ||||||||||
Interest expense | (364 | ) | (41 | ) | (405 | ) | |||||||
Non-operating income | 74 | 20 | 94 | ||||||||||
Income before income taxes and noncontrolling interest | 9,358 | 1,922 | 11,280 | ||||||||||
Income tax expense | 3,213 | 175 | 3,388 | ||||||||||
Net income | 6,145 | 1,747 | 7,892 | ||||||||||
Less net income attributable to noncontrolling interests | 1,308 | 248 | 1,556 | ||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 4,837 | $ | 1,499 | $ | 6,336 | |||||||
Total assets | $ | 352,941 | $ | 34,557 | $ | 387,498 | |||||||
Nine Months Ended September 30, 2013 | |||||||||||||
Home- | Facility- | Total | |||||||||||
Based | Based | ||||||||||||
Services | Services | ||||||||||||
Net service revenue | $ | 435,441 | $ | 57,562 | $ | 493,003 | |||||||
Cost of service revenue | 254,924 | 33,299 | 288,223 | ||||||||||
Provision for bad debts | 8,796 | 1,037 | 9,833 | ||||||||||
General and administrative expenses | 142,908 | 15,919 | 158,827 | ||||||||||
Operating income | 28,813 | 7,307 | 36,120 | ||||||||||
Interest expense | (1,404 | ) | (151 | ) | (1,555 | ) | |||||||
Non-operating income | 115 | 69 | 184 | ||||||||||
Income before income taxes and noncontrolling interest | 27,524 | 7,225 | 34,749 | ||||||||||
Income tax expense | 11,062 | 1,174 | 12,236 | ||||||||||
Net income | 16,462 | 6,051 | 22,513 | ||||||||||
Less net income attributable to noncontrolling interests | 4,094 | 1,046 | 5,140 | ||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 12,368 | $ | 5,005 | $ | 17,373 | |||||||
Nine Months Ended September 30, 2012 | |||||||||||||
Home- | Facility- | Total | |||||||||||
Based | Based | ||||||||||||
Services | Services | ||||||||||||
Net service revenue | $ | 419,847 | $ | 55,895 | $ | 475,742 | |||||||
Cost of service revenue | 240,347 | 32,964 | 273,311 | ||||||||||
Provision for bad debts | 7,626 | 769 | 8,395 | ||||||||||
General and administrative expenses | 137,902 | 16,411 | 154,313 | ||||||||||
Other intangibles impairment charge | 250 | 400 | 650 | ||||||||||
Operating income | 33,722 | 5,351 | 39,073 | ||||||||||
Interest expense | (874 | ) | (98 | ) | (972 | ) | |||||||
Non-operating income | 77 | 31 | 108 | ||||||||||
Income before income taxes and noncontrolling interest | 32,925 | 5,284 | 38,209 | ||||||||||
Income tax expense | 11,641 | 1,065 | 12,706 | ||||||||||
Net income | 21,284 | 4,219 | 25,503 | ||||||||||
Less net income attributable to noncontrolling interests | 4,826 | 637 | 5,463 | ||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 16,458 | $ | 3,582 | $ | 20,040 |
Significant_Accounting_Policie3
Significant Accounting Policies - Percentage of Net Service Revenue Earned by Type of Ownership or Relationship with Operating Entity (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Health Care Organization, Revenue [Abstract] | ' | ' | ' | ' |
Percentage of net service revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Equity Joint Ventures [Member] | ' | ' | ' | ' |
Health Care Organization, Revenue [Abstract] | ' | ' | ' | ' |
Percentage of net service revenue | 48.10% | 49.10% | 48.90% | 48.70% |
Wholly-owned Subsidiaries [Member] | ' | ' | ' | ' |
Health Care Organization, Revenue [Abstract] | ' | ' | ' | ' |
Percentage of net service revenue | 49.30% | 48.10% | 48.40% | 48.50% |
License Leasing Arrangements [Member] | ' | ' | ' | ' |
Health Care Organization, Revenue [Abstract] | ' | ' | ' | ' |
Percentage of net service revenue | 1.80% | 1.90% | 1.90% | 1.90% |
Management Services [Member] | ' | ' | ' | ' |
Health Care Organization, Revenue [Abstract] | ' | ' | ' | ' |
Percentage of net service revenue | 0.80% | 0.90% | 0.80% | 0.90% |
Significant_Accounting_Policie4
Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Times | |
Group | |
Summary Of Significant Accounting Policies [Line Items] | ' |
License Leasing Arrangements | 100.00% |
Number of Medicare home health resource groups | 153 |
Number of days from date RAP paid to submit final Medicare bill | '60 days |
Low utilization adjustment visits | 5 |
Minimum percentage of Medicare reimbursement from inpatient care services that subjects individual programs to inpatient cap | 20.00% |
Determination period for hospice Medicare inpatient reimbursement cap | '12 months |
Medicare credit risk for accounts receivable | 60.00% |
Reimbursement for initial episode of care | 60.00% |
Number of days from start of episode to submit final Medicare bill | '120 days |
Reimbursement for subsequent episodes of care | 50.00% |
Minimum [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Equity Joint Ventures, Ownership | 51.00% |
Maximum [Member] | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Equity Joint Ventures, Ownership | 91.00% |
Significant_Accounting_Policie5
Significant Accounting Policies - Percentage of Net Service Revenue Earned by Category of Payor (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Percentage of net service revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Medicare [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Percentage of net service revenue | 80.30% | 77.20% | 79.80% | 77.90% |
Medicaid [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Percentage of net service revenue | 1.30% | 1.70% | 1.40% | 1.90% |
Other [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Percentage of net service revenue | 18.40% | 21.10% | 18.80% | 20.20% |
Significant_Accounting_Policie6
Significant Accounting Policies - Percentage of Net Service Revenue Contributed from each Reporting Segment (Detail) (Sales Revenue, Segment [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Health Care Organization, Revenue [Abstract] | ' | ' | ' | ' |
Percentage of net service revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Home-based services [Member] | ' | ' | ' | ' |
Health Care Organization, Revenue [Abstract] | ' | ' | ' | ' |
Percentage of net service revenue | 89.20% | 88.30% | 88.30% | 88.30% |
Facility-based services [Member] | ' | ' | ' | ' |
Health Care Organization, Revenue [Abstract] | ' | ' | ' | ' |
Percentage of net service revenue | 10.80% | 11.70% | 11.70% | 11.70% |
Significant_Accounting_Policie7
Significant Accounting Policies - Shares used in Computation of Basic and Diluted Per Share Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Weighted average shares outstanding: | ' | ' | ' | ' |
Weighted average number of shares outstanding for basic per share calculation | 17,083,201 | 17,656,842 | 17,035,541 | 18,121,217 |
Effect of dilutive potential shares: | ' | ' | ' | ' |
Options | 4,208 | 1,935 | 4,032 | 1,849 |
Nonvested stock | 94,604 | 68,042 | 70,102 | 37,423 |
Adjusted weighted average shares for diluted per share calculation | 17,182,013 | 17,726,819 | 17,109,675 | 18,160,489 |
Anti-dilutive shares | 94,299 | 176,641 | 181,648 | 348,595 |
Acquisitions_and_Disposals_Add
Acquisitions and Disposals - Additional Information (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Joint_Ventures | |
Business Combination Summary Of Acquisition [Abstract] | ' |
Total purchase price for acquisitions | $27,300,000 |
Acquisition price paid in cash | 26,920,000 |
Acquisition paid in assumed liabilities | 380,000 |
Noncontrolling goodwill | 622,000 |
Purchase price to acquire additional ownership interests in joint ventures | 1,900,000 |
Number of joint ventures in which additional ownership interests were acquired | 6 |
Decrease in noncontrolling interest redeemable | 612,000 |
Reduction in additional paid in capital as a result of the purchase of additional ownership interests | 1,300,000 |
Noncompete Agreements [Member] | Minimum [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Life of the non-compete agreements | '2 years |
Noncompete Agreements [Member] | Maximum [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Life of the non-compete agreements | '5 years |
Home health agencies [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Number of entities acquired | 19 |
Number of additional entities acquired | 4 |
Hospice agency [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Number of entities acquired | 1 |
Number of additional entities acquired | 1 |
General and Administrative Expense [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Acquisition-related costs | 569,000 |
Home-based services segment [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Goodwill Recognized | 25,700,000 |
Noncontrolling goodwill | $622,000 |
Acquisitions_and_Disposals_Sch
Acquisitions and Disposals - Schedule of Acquired Entities (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
LHCG XXXVII, LLC (d/b/a Addus HealthCare) [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Ownership Percentage | 90.00% |
State of Operations | 'Illinois |
Acquisition Date | 1-Mar-13 |
LHCG XXXVIII, LLC (d/b/a Addus HealthCare) [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Ownership Percentage | 90.00% |
State of Operations | 'California |
Acquisition Date | 1-Mar-13 |
LHCG XLII, LLC (d/b/a/ Arkansas HomeCare) [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Arkansas |
Acquisition Date | 1-Mar-13 |
LHCG XLI, LLC (d/b/a South Carolina HomeCare) [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'South Carolina |
Acquisition Date | 1-Mar-13 |
LHCG XXXIX, LLC (d/b/a Addus HealthCare) [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Nevada |
Acquisition Date | 1-Mar-13 |
LHCG XXXIV, LLC (d/b/a Alabama Hospice Care of Mobile) [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Alabama |
Acquisition Date | 1-Apr-13 |
LHCG XL, LLC (d/b/a Georgia Home Health) [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Georgia |
Acquisition Date | 1-Jul-13 |
LHCG XXVII, LLC (d/b/a Pennsylvania Home Health) [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Pennsylvania |
Acquisition Date | 1-Jul-13 |
LHCG XLVIII, LLC (d/b/a Minnesota Home Health) [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Minnesota |
Acquisition Date | 1-Jul-13 |
LHCG XLVII, LLC (d/b/a Wisconsin Home Health) [Member] | ' |
Business Combination Summary Of Acquisition [Abstract] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Wisconsin |
Acquisition Date | 1-Jul-13 |
Acquisitions_and_Disposals_Sch1
Acquisitions and Disposals - Schedule of Aggregate Consideration Paid and Recognized Identified Assets Acquired and Liabilities Assumed (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Consideration | ' |
Cash | $26,920 |
Fair value of total consideration transferred | 26,920 |
Recognized amounts of identifiable assets acquired and liabilities assumed | ' |
Other assets and (liabilities),net | -321 |
Total identifiable assets | 1,785 |
Noncontrolling interest | 608 |
Goodwill, including noncontrolling interest of $622 | 25,743 |
Trade Name [Member] | ' |
Recognized amounts of identifiable assets acquired and liabilities assumed | ' |
Business acquisition, purchase price allocation, Intangible Assets | 1,177 |
Certificate of need/license [Member] | ' |
Recognized amounts of identifiable assets acquired and liabilities assumed | ' |
Business acquisition, purchase price allocation, Intangible Assets | 598 |
Other identifiable intangible assets [Member] | ' |
Recognized amounts of identifiable assets acquired and liabilities assumed | ' |
Business acquisition, purchase price allocation, Intangible Assets | $331 |
Acquisitions_and_Disposals_Sch2
Acquisitions and Disposals - Schedule of Aggregate Consideration Paid and Recognized Identified Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Business Combinations [Abstract] | ' |
Noncontrolling goodwill | $622 |
Goodwill_and_Intangibles_Chang
Goodwill and Intangibles - Changes in Goodwill by Segment (Detail) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Home-based services segment [Member] | Facility-based services segment [Member] | Facility-based services segment [Member] | ||
Goodwill [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | $169,150 | $157,559 | $11,591 | $11,591 |
Goodwill from acquisitions | 25,743 | 25,121 | ' | ' |
Goodwill related to noncontrolling interest | 622 | 622 | ' | ' |
Balance at end of period | $194,893 | $183,302 | $11,591 | $11,591 |
Goodwill_and_Intangibles_Sched
Goodwill and Intangibles - Schedule of Changes in Intangible Assets (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Finite And Indefinite Lived Intangible Assets [Line Items] | ' |
Balance as of December 31, 2012 | $62,042 |
Additions | 2,106 |
Amortization | -949 |
Balance as of September 30, 2013 | 63,199 |
Trade Name [Member] | ' |
Finite And Indefinite Lived Intangible Assets [Line Items] | ' |
Balance as of December 31, 2012 | 51,408 |
Additions | 1,177 |
Amortization | -569 |
Balance as of September 30, 2013 | 52,016 |
Other Intangible Assets [Member] | ' |
Finite And Indefinite Lived Intangible Assets [Line Items] | ' |
Balance as of December 31, 2012 | 534 |
Additions | 331 |
Amortization | -380 |
Balance as of September 30, 2013 | 485 |
Certificate of need/license [Member] | ' |
Finite And Indefinite Lived Intangible Assets [Line Items] | ' |
Balance as of December 31, 2012 | 10,100 |
Additions | 598 |
Balance as of September 30, 2013 | $10,698 |
Goodwill_and_Intangibles_Addit
Goodwill and Intangibles - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Intangible assets net of accumulated amortization | ' | $63,199,000 | ' | $62,042,000 |
Impairment of goodwill | ' | 0 | ' | ' |
Impairment of intangible assets | 650,000 | ' | 650,000 | ' |
Home-based services [Member] | ' | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Intangible assets net of accumulated amortization | ' | 62,100,000 | ' | ' |
Impairment of intangible assets | 250,000 | ' | 250,000 | ' |
Facility-based services [Member] | ' | ' | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Intangible assets net of accumulated amortization | ' | 1,100,000 | ' | ' |
Impairment of intangible assets | $400,000 | ' | $400,000 | ' |
Credit_Facility_Additional_Inf
Credit Facility - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Line of Credit Facility [Abstract] | ' | ' |
Line of credit facility drawn | $24,000,000 | $19,500,000 |
Letter of credit outstanding | $6,200,000 | $6,000,000 |
Line of credit facility Interest rate | 4.25% | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Income Taxes Textual [Abstract] | ' |
Tax payable as an unrecognized tax benefit | $3.40 |
Stockholders_Equity_Additional
Stockholder's Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | |
Oct. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stockholders Equity Textual [Abstract] | ' | ' | ' |
Common stock reserved and available for issuance | ' | 1,500,000 | ' |
Percentage of directors' stock grant vested on one year anniversary date | ' | 100.00% | ' |
Period of Vested Shares | ' | '5 years | ' |
Granted, Weighted average grant date fair value | ' | $21.21 | ' |
Share based award, settled in cash | ' | $2,700 | ' |
Share based payment description | ' | 'The amount of cash payment will equal the fair market value of 2,700 shares on the settlement date | ' |
Total unrecognized compensation cost related to nonvested shares of common stock granted | ' | 8,500,000 | ' |
Weighted average period of cost recognized | ' | '3 years 3 months 11 days | ' |
Total fair value of shares of common stock vested | ' | 3,800,000 | 3,500,000 |
Compensation expense related to nonvested stock grants | ' | 2,900,000 | 3,400,000 |
Price of shares issued under Employee Stock Purchase Plan as a percentage of FMV | ' | 95.00% | ' |
Number of shares reserved for the Employee Stock Purchase Plan | ' | 250,000 | ' |
Additional shares authorized for issuance | ' | 250,000 | ' |
Stock options issued and exercisable | ' | 15,000 | ' |
Options exercised | ' | 0 | ' |
Options forfeited | ' | 0 | ' |
Options granted | ' | 0 | ' |
Shares redeemed to satisfy personal tax obligations | ' | 37,353 | ' |
Values of shares redeemed to satisfy personal tax obligations | ' | 794,000 | ' |
Total amount authorized for repurchase under Company's Stock Repurchase Program | 50,000,000 | ' | ' |
Number of shares of common stock repurchased during period | ' | 0 | ' |
Number of shares of common stock reissued from treasury shares | ' | 0 | ' |
Remaining amount authorized for repurchase under Company's Stock Repurchase Program | ' | $22,500,000 | ' |
Director [Member] | ' | ' | ' |
Stockholders Equity Textual [Abstract] | ' | ' | ' |
Non vested stock grants to Independent director | ' | 24,300 | ' |
Director Period of Vested Shares | ' | '1 year | ' |
Employee [Member] | ' | ' | ' |
Stockholders Equity Textual [Abstract] | ' | ' | ' |
Nonvested stock grants to employees | ' | 181,648 | ' |
Employee Purchase Plan [Member] | ' | ' | ' |
Stockholders Equity Textual [Abstract] | ' | ' | ' |
Additional shares authorized for issuance | ' | 250,000 | ' |
Stockholders_Equity_Nonvested_
Stockholder's Equity - Non-vested Stock Activity (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Nonvested shares outstanding, Number of Shares, Beginning Balance | 486,061 |
Granted, Number of Shares | 205,948 |
Vested, Number of Shares | -175,721 |
Nonvested shares outstanding, Number of Shares, Ending Balance | 516,288 |
Nonvested shares outstanding, Weighted average grant date fair value, Beginning Balance | $22.33 |
Granted, Weighted average grant date fair value | $21.21 |
Vested, Weighted average grant date fair value | $21.82 |
Nonvested shares outstanding, Weighted average grant date fair value, Ending Balance | $22.05 |
Stockholders_Equity_Shares_of_
Stockholder's Equity - Shares of Common Stock Issued During 2013 Under Employee Stock Purchase Plan (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | |
Shares Held In Employee Stock Purchase Plan [Abstract] | ' | ' | ' | ' |
Shares available, Beginning balance | ' | ' | 61,247 | 61,247 |
Additional shares authorized for issuance | ' | ' | ' | 250,000 |
Shares issued during period | 9,600 | 10,385 | 8,845 | ' |
Shares available, Ending Balance | 282,417 | ' | ' | 282,417 |
Shares issued during period, Per share price | $18.60 | $20.43 | $20.24 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Period of joint venture buy/sell option | '30 days |
Noncontrolling_interest_Summar
Non-controlling interest - Summary of Activity of Non-controlling Interest-redeemable (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Noncontrolling Interest [Abstract] | ' |
Noncontrolling interest-redeemable, Beginning balance | $11,426 |
Net income attributable to noncontrolling interest-redeemable | 4,241 |
Noncontrolling interest-redeemable distributions | -5,538 |
Transfer of noncontrolling interest | 1,342 |
Acquired noncontrolling interest | 608 |
Purchase of additional controlling interest | -612 |
Noncontrolling interest-redeemable, Ending balance | $11,467 |
Allowance_for_Uncollectible_Ac2
Allowance for Uncollectible Accounts - Allowance for Uncollectible Accounts Activity and Ending Balances (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Allowance For Uncollectible Accounts [Abstract] | ' | ' | ' | ' |
Beginning balance | ' | ' | $11,863 | ' |
Additions and expenses | 2,708 | 2,987 | 9,833 | 8,395 |
Deductions | ' | ' | -7,701 | ' |
Ending balance | $13,995 | ' | $13,995 | ' |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2012 | Sep. 30, 2012 | |
Segment Reporting Information [Line Items] | ' | ' |
Other intangibles impairment charge | $650,000 | $650,000 |
Facility-based services [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Other intangibles impairment charge | 400,000 | 400,000 |
Income tax expense reclassification | 162,400 | 162,400 |
Reduction of assets | $400,000 | $400,000 |
Segment_Information_Segment_In
Segment Information - Segment Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ' | ' | ' | ' | ' |
Net service revenue | $164,748 | $158,926 | $493,003 | $475,742 | ' |
Cost of service revenue | 97,966 | 91,234 | 288,223 | 273,311 | ' |
Provision for bad debts | 2,708 | 2,987 | 9,833 | 8,395 | ' |
General and administrative expenses | 53,047 | 52,464 | 158,827 | 154,313 | ' |
Other intangibles impairment charge | ' | 650 | ' | 650 | ' |
Operating income | 11,027 | 11,591 | 36,120 | 39,073 | ' |
Interest expense | -430 | -405 | -1,555 | -972 | ' |
Non-operating income | 54 | 94 | 184 | 108 | ' |
Income before income taxes and noncontrolling interest | 10,651 | 11,280 | 34,749 | 38,209 | ' |
Income tax expense | 3,782 | 3,388 | 12,236 | 12,706 | ' |
Net income | 6,869 | 7,892 | 22,513 | 25,503 | ' |
Less net income attributable to noncontrolling interests | 1,572 | 1,556 | 5,140 | 5,463 | ' |
Net income attributable to LHC Group, Inc.'s common stockholders | 5,297 | 6,336 | 17,373 | 20,040 | ' |
Total assets | 414,033 | 387,498 | 414,033 | 387,498 | 386,894 |
Home-based services [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ' | ' | ' | ' | ' |
Net service revenue | 146,910 | 140,256 | 435,441 | 419,847 | ' |
Cost of service revenue | 87,082 | 80,579 | 254,924 | 240,347 | ' |
Provision for bad debts | 2,651 | 2,669 | 8,796 | 7,626 | ' |
General and administrative expenses | 47,969 | 47,110 | 142,908 | 137,902 | ' |
Other intangibles impairment charge | ' | 250 | ' | 250 | ' |
Operating income | 9,208 | 9,648 | 28,813 | 33,722 | ' |
Interest expense | -387 | -364 | -1,404 | -874 | ' |
Non-operating income | 36 | 74 | 115 | 77 | ' |
Income before income taxes and noncontrolling interest | 8,857 | 9,358 | 27,524 | 32,925 | ' |
Income tax expense | 3,422 | 3,213 | 11,062 | 11,641 | ' |
Net income | 5,435 | 6,145 | 16,462 | 21,284 | ' |
Less net income attributable to noncontrolling interests | 1,279 | 1,308 | 4,094 | 4,826 | ' |
Net income attributable to LHC Group, Inc.'s common stockholders | 4,156 | 4,837 | 12,368 | 16,458 | ' |
Total assets | 379,340 | 352,941 | 379,340 | 352,941 | ' |
Facility-based services [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ' | ' | ' | ' | ' |
Net service revenue | 17,838 | 18,670 | 57,562 | 55,895 | ' |
Cost of service revenue | 10,884 | 10,655 | 33,299 | 32,964 | ' |
Provision for bad debts | 57 | 318 | 1,037 | 769 | ' |
General and administrative expenses | 5,078 | 5,354 | 15,919 | 16,411 | ' |
Other intangibles impairment charge | ' | 400 | ' | 400 | ' |
Operating income | 1,819 | 1,943 | 7,307 | 5,351 | ' |
Interest expense | -43 | -41 | -151 | -98 | ' |
Non-operating income | 18 | 20 | 69 | 31 | ' |
Income before income taxes and noncontrolling interest | 1,794 | 1,922 | 7,225 | 5,284 | ' |
Income tax expense | 360 | 175 | 1,174 | 1,065 | ' |
Net income | 1,434 | 1,747 | 6,051 | 4,219 | ' |
Less net income attributable to noncontrolling interests | 293 | 248 | 1,046 | 637 | ' |
Net income attributable to LHC Group, Inc.'s common stockholders | 1,141 | 1,499 | 5,005 | 3,582 | ' |
Total assets | $34,693 | $34,557 | $34,693 | $34,557 | ' |