Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 30, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
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 | ' | 17,789,101 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $12,027 | $14,014 |
Receivables: | ' | ' |
Patient accounts receivable, less allowance for uncollectible accounts of $16,176 and $14,334, respectively | 98,932 | 88,964 |
Other receivables | 2,361 | 608 |
Amounts due from governmental entities | 990 | 1,234 |
Total receivables, net | 102,283 | 90,806 |
Deferred income taxes | 9,817 | 9,251 |
Prepaid income taxes | 3,497 | 4,069 |
Prepaid expenses | 8,657 | 6,966 |
Other current assets | 4,137 | 4,449 |
Receivable due from insurance carrier | 7,850 | ' |
Total current assets | 148,268 | 129,555 |
Property, building and equipment, net of accumulated depreciation of $44,258 and $40,935, respectively | 32,929 | 31,052 |
Goodwill | 229,462 | 194,893 |
Intangible assets, net of accumulated amortization of $5,461 and $4,518, respectively | 83,973 | 62,184 |
Other assets | 2,993 | 4,542 |
Total assets | 497,625 | 422,226 |
Current liabilities: | ' | ' |
Accounts payable and other accrued liabilities | 18,718 | 17,217 |
Salaries, wages, and benefits payable | 37,648 | 31,927 |
Self-insurance reserve | 6,610 | 5,862 |
Current portion of long-term debt | 225 | 249 |
Amounts due to governmental entities | 3,746 | 4,391 |
Legal settlement payable | 7,850 | ' |
Total current liabilities | 74,797 | 59,646 |
Deferred income taxes | 30,470 | 29,060 |
Income tax payable | 3,415 | 3,415 |
Revolving credit facility | 69,000 | 22,000 |
Long-term debt, less current portion | 896 | 963 |
Total liabilities | 178,578 | 115,084 |
Noncontrolling interest - redeemable | 11,263 | 11,258 |
LHC Group, Inc. stockholders' equity: | ' | ' |
Common stock - $0.01 par value; 40,000,000 shares authorized; 21,983,432 and 21,801,634 shares issued in 2014 and 2013, respectively | 219 | 218 |
Treasury stock - 4,730,511 and 4,693,647 shares at cost, respectively | -35,565 | -34,715 |
Additional paid-in capital | 106,549 | 103,972 |
Retained earnings | 233,663 | 223,534 |
Total LHC Group, Inc. stockholders' equity | 304,866 | 293,009 |
Noncontrolling interest - non-redeemable | 2,918 | 2,875 |
Total equity | 307,784 | 295,884 |
Total liabilities and equity | $497,625 | $422,226 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Patient accounts receivable, allowance for uncollectible accounts | $16,176 | $14,334 |
Property, building and equipment, accumulated depreciation | 44,258 | 40,935 |
Intangible assets, accumulated amortization | $5,461 | $4,518 |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized | 40,000,000 | 40,000,000 |
Common stock, issued | 21,983,432 | 21,801,634 |
Treasury stock at cost, shares | 4,730,511 | 4,693,647 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net service revenue | $188,867 | $166,302 | $352,548 | $328,255 |
Cost of service revenue | 111,527 | 97,009 | 208,861 | 190,257 |
Gross margin | 77,340 | 69,293 | 143,687 | 137,998 |
Provision for bad debts | 4,363 | 3,208 | 7,725 | 7,125 |
General and administrative expenses | 59,614 | 54,157 | 114,226 | 105,780 |
Operating income | 13,363 | 11,928 | 21,736 | 25,093 |
Interest expense | -830 | -700 | -1,218 | -1,125 |
Non-operating income (loss) | -109 | 65 | -76 | 130 |
Income before income taxes and noncontrolling interest | 12,424 | 11,293 | 20,442 | 24,098 |
Income tax expense | 4,352 | 3,918 | 7,275 | 8,454 |
Net income | 8,072 | 7,375 | 13,167 | 15,644 |
Less net income attributable to noncontrolling interests | 2,011 | 1,585 | 3,038 | 3,568 |
Net income attributable to LHC Group, Inc.'s common stockholders | $6,061 | $5,790 | $10,129 | $12,076 |
Earnings per share - basic and diluted: | ' | ' | ' | ' |
Net income attributable to LHC Group, Inc.'s common stockholders | $0.35 | $0.34 | $0.59 | $0.71 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic | 17,233,264 | 17,055,619 | 17,190,070 | 17,011,306 |
Diluted | 17,277,224 | 17,127,017 | 17,268,556 | 17,088,463 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) (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 | |||||||
Beginning balance, Amount at Dec. 31, 2013 | $295,884 | $218 | ($34,715) | $103,972 | $223,534 | $2,875 | |
Beginning balance, Treasury Shares at Dec. 31, 2013 | -4,693,647 | ' | -4,693,647 | ' | ' | ' | |
Beginning balance, Shares at Dec. 31, 2013 | ' | 21,801,634 | ' | ' | ' | ' | |
Net income | 10,683 | [1] | ' | ' | ' | 10,129 | 554 |
Sale of noncontrolling interest | 161 | ' | ' | 161 | ' | ' | |
Purchase of noncontrolling interest | -95 | ' | ' | -95 | ' | ' | |
Noncontrolling interest distributions | -511 | ' | ' | ' | ' | -511 | |
Nonvested stock compensation | 2,069 | ' | ' | 2,069 | ' | ' | |
Issuance of vested stock, Shares | ' | 163,886 | ' | ' | ' | ' | |
Treasury shares redeemed to pay income tax | -850 | ' | -850 | ' | ' | ' | |
Treasury shares redeemed to pay income tax, Shares | -36,864 | ' | -36,864 | ' | ' | ' | |
Excess tax benefits - vesting nonvested stock | 52 | ' | ' | 52 | ' | ' | |
Issuance of common stock under Employee Stock Purchase Plan | 391 | 1 | ' | 390 | ' | ' | |
Issuance of common stock under Employee Stock Purchase Plan, Shares | ' | 17,912 | ' | ' | ' | ' | |
Ending balance, Amount at Jun. 30, 2014 | $307,784 | $219 | ($35,565) | $106,549 | $233,663 | $2,918 | |
Ending balance, Shares at Jun. 30, 2014 | ' | 21,983,432 | ' | ' | ' | ' | |
Ending balance, Treasury Shares at Jun. 30, 2014 | -4,730,511 | ' | -4,730,511 | ' | ' | ' | |
[1] | Net income excludes net income attributable to noncontrolling interest-redeemable of $2.6 million during the six months ending June 30, 2014. 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 (Unaudited) (Parenthetical) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Statement Of Stockholders Equity [Abstract] | ' |
Net income attributable to noncontrolling interest-redeemable | $2.50 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities | ' | ' |
Net income | $13,167 | $15,644 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization expense | 4,413 | 3,830 |
Provision for bad debts | 7,725 | 7,125 |
Stock-based compensation expense | 2,069 | 1,895 |
Deferred income taxes | 844 | 1,270 |
Gain on sale of assets | 144 | 15 |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' |
Receivables | -8,625 | -10,837 |
Prepaid expenses and other assets | -301 | -1,519 |
Prepaid income taxes | 512 | 3,479 |
Accounts payable and accrued expenses | 4,249 | 7,600 |
Net amounts due to/from governmental entities | -401 | -432 |
Net cash provided by operating activities | 23,796 | 28,070 |
Investing activities | ' | ' |
Purchases of property, building and equipment | -3,419 | -3,569 |
Cash paid for acquisitions, primarily goodwill and intangible assets | -65,103 | -26,920 |
Net cash (used in) investing activities | -68,522 | -30,489 |
Financing activities | ' | ' |
Proceeds from line of credit | 68,000 | 55,000 |
Payments on line of credit | -21,000 | -49,500 |
Proceeds from employee stock purchase plan | 391 | 392 |
Proceeds from debt issuance | ' | 567 |
Payments on debt | -91 | ' |
Noncontrolling interest distributions | -3,122 | -4,352 |
Payment of deferred financing fees | -799 | ' |
Excess tax benefits from vesting of restricted stock | 112 | 11 |
Redemption of treasury shares | -850 | -755 |
Purchase of additional controlling interest | -95 | -1,618 |
Sale of noncontrolling interest | 193 | ' |
Net cash provided by (used in) financing activities | 42,739 | -255 |
Change in cash | -1,987 | -2,674 |
Cash at beginning of period | 14,014 | 9,720 |
Cash at end of period | 12,027 | 7,046 |
Supplemental disclosures of cash flow information | ' | ' |
Interest paid | 1,177 | 1,125 |
Income taxes paid | $6,064 | $14,376 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2014 | |
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 community based service agencies, hospice services and facility-based services, primarily through long-term acute care hospitals (“LTACHs”). As of June 30, 2014, the Company, through its wholly- and majority-owned subsidiaries, equity joint ventures and controlled affiliates, operated 338 service providers in 25 states within the continental United States. | |
Unaudited Interim Financial Information | |
The condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013, and the related condensed consolidated statements of income for the three and six months ended June 30, 2014 and 2013, condensed consolidated statement of changes in equity for the six months ended June 30, 2014, condensed consolidated statements of cash flows for the six months ended June 30, 2014 and 2013 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 six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | |
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, 2013 as filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2014, which includes information and disclosures not included herein. |
Significant_Accounting_Policie
Significant Accounting Policies | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 interim financial information includes 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 interim financial information includes 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 interim financial information. | |||||||||||||||||
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 | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Wholly-owned subsidiaries | 54.5 | % | 49 | % | 52 | % | 47.9 | % | |||||||||
Equity joint ventures | 42.9 | 48.3 | 45.3 | 49.3 | |||||||||||||
License leasing arrangements | 1.8 | 1.9 | 1.9 | 1.9 | |||||||||||||
Management services | 0.8 | 0.8 | 0.8 | 0.9 | |||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
All significant intercompany accounts and transactions have been eliminated in the Company’s accompanying interim financial information. Business combinations accounted for under the acquisition method have been included in the interim financial information 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 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 in, and does not have an obligation to absorb losses of, the entities that own the agencies and facilities or the right to receive the benefits from those entities. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
The Company reports net service revenue at the estimated net realizable amount due from Medicare, Medicaid and others for services rendered. All such payors contribute to the net service revenue of the Company’s home-based services, hospice 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 six months ended June 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Payor: | |||||||||||||||||
Medicare | 75.3 | % | 79.7 | % | 76.9 | % | 79.5 | % | |||||||||
Medicaid | 1.4 | 1.5 | 1.3 | 1.5 | |||||||||||||
Other | 23.3 | 18.8 | 21.8 | 19 | |||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
The percentage of net service revenue contributed from each reporting segment for the three and six months ended June 30, 2014 and 2013 was as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Home-based services | 81.7 | % | 79.8 | % | 80.3 | % | 79.7 | % | |||||||||
Hospice services | 9 | 8.3 | 9.1 | 8.2 | |||||||||||||
Facility-based services | 9.3 | 11.9 | 10.6 | 12.1 | |||||||||||||
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. The 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 | |||||||||||||||||
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 based upon a predetermined fee schedule or an episodic basis, depending on the terms of the applicable contract. Accordingly, the Company recognizes revenue from managed care and other payors in the same manner as the Company recognizes revenue from Medicare or Medicaid. | |||||||||||||||||
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 58% 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 services to the Medicare population are paid at prospectively set amounts 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 provide for payments based upon a predetermined fee schedule or an episodic basis, depending on the terms of the applicable contract. 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 | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average number of shares outstanding for basic per share calculation | 17,233,264 | 17,055,619 | 17,190,070 | 17,011,306 | |||||||||||||
Effect of dilutive potential shares: | |||||||||||||||||
Options | 3,750 | 4,032 | 4,031 | 3,937 | |||||||||||||
Nonvested stock | 40,210 | 67,366 | 74,455 | 73,220 | |||||||||||||
Adjusted weighted average shares for diluted per share calculation | 17,277,224 | 17,127,017 | 17,268,556 | 17,088,463 | |||||||||||||
Anti-dilutive shares | 187,179 | 39,756 | 210,570 | 180,966 | |||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||
FASB issued Accounting Standards Update 2014-08 Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU”) in April 2014. The ASU changed the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on a Company’s operations and financial results. The ASU also requires additional disclosures for discontinued operations. The ASU is effective for annual periods beginning after December 15, 2014 and for interim periods within those years; early adoption is permitted but only for disposals that have not been reported in financial statements previously issued or available for issuance. The Company adopted this guidance during the three months ended June 30, 2014. | |||||||||||||||||
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Acquisitions_and_Disposals
Acquisitions and Disposals | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
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 32 home-based agencies and five hospice agencies during the six months ended June 30, 2014. The Company maintains an ownership interest in the acquired businesses as set forth below: | |||||||||||||
Acquired Businesses | Ownership | State of Operations | Acquisition | ||||||||||
Percentage | Date | ||||||||||||
EAMC — Lanier Home Health | 75 | % | Alabama | 2/1/14 | |||||||||
Lifeline Home Health | 100 | % | Kentucky | 2/1/14 | |||||||||
Louisiana Hospice & Palliative Care of New Orleans | 100 | % | Louisiana | 3/1/14 | |||||||||
West Virginia Home Health | 100 | % | West Virginia | 4/1/14 | |||||||||
St. Joseph’s Hospice | 100 | % | West Virginia | 4/1/14 | |||||||||
Northwestern Illinois Home Health | 100 | % | Illinois | 4/1/14 | |||||||||
Deaconess-Lifeline Home Health | 100 | % | Kentucky | 4/1/14 | |||||||||
Deaconess HomeCare | 100 | % | Mississippi | 4/1/14 | |||||||||
Deaconess HomeCare | 100 | % | Tennessee | 4/1/14 | |||||||||
Deaconess Hospice | 100 | % | Mississippi | 4/1/14 | |||||||||
Elk Valley Health Services, LLC | 100 | % | Tennessee | 4/1/14 | |||||||||
North Carolina Home Health | 100 | % | North Carolina | 5/1/14 | |||||||||
Professional Nursing Services | 100 | % | North Carolina | 5/1/14 | |||||||||
Each of the acquisitions was accounted for under the acquisition method of accounting, and, accordingly, the accompanying interim financial information includes the results of operations of each acquired entity from the date of acquisition. | |||||||||||||
The total aggregate purchase price for the Company’s acquisitions was $65.2 million, of which $65.1 million was paid in cash. 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 $0.7 million in acquisition-related costs, which was recorded in general and administrative expenses. | |||||||||||||
The Company’s home-based services segment recognized aggregate goodwill of $31.2 million for the acquisitions and hospice services segment recognized aggregate goodwill of $3.4 million. 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 | $ | 65,103 | |||||||||||
Fair value of total consideration transferred | $ | 65,103 | |||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||||||||
Trade name | $ | 19,680 | |||||||||||
Certificates of need/license | 2,822 | ||||||||||||
Other identifiable intangible assets | 337 | ||||||||||||
Accounts receivable | 10,821 | ||||||||||||
Fixed assets | 379 | ||||||||||||
Accounts payable | (1,170 | ) | |||||||||||
Other assets and (liabilities), net | (2,287 | ) | |||||||||||
Total identifiable assets acquired and liabilities assumed | $ | 30,582 | |||||||||||
Noncontrolling interest | $ | 98 | |||||||||||
Goodwill, including noncontrolling interest of $38 | $ | 34,619 | |||||||||||
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. | |||||||||||||
The net service revenue of the Deaconess and Elk Valley acquisition from the acquisition date through June 30, 2014 was $17.9 million and contributed a net income of $0.1 million. The following pro forma information presents the combined results of operations of the Company and Deaconess and Elk Valley for the six months ended June 30, 2014 and 2013 as if the acquisition occurred on January 1, 2013 (amounts in thousands, except earnings per share): | |||||||||||||
Six months ended June 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Net service revenue | $ | 370,089 | $ | 364,393 | |||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | 10,104 | 12,574 | |||||||||||
Earnings per share — basic and diluted | $ | 0.59 | $ | 0.74 | |||||||||
The pro forma information presented above includes adjustments for (i) depreciation expense, (ii) amortization of identifiable intangible assets, (iii) income tax provision using the Company’s effective tax rate and (iv) estimate of additional costs to provide administrative costs for these locations. This pro forma information is presented for illustrative purposes only and may not be indicative of the results of operations that would have actually occurred. In addition, future results may vary significantly from the results reflected in the pro forma information. | |||||||||||||
Sale of Membership Interest in Company’s Subsidiary | |||||||||||||
During the six months ended June 30, 2014, the Company sold membership interests in one equity joint venture. The total sale price was $0.2 million. | |||||||||||||
Purchase of Membership Interest in Company’s Subsidiary | |||||||||||||
During the six months ended June 30, 2014, the Company purchased additional membership interests in one equity joint venture. The total purchase price for the additional membership interests was $95,000, which resulted in the Company reducing additional paid in capital by the full purchase price. |
Goodwill_and_Intangibles
Goodwill and Intangibles | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill and Intangibles | ' | ||||||||||||||||||||
4. Goodwill and Intangibles | |||||||||||||||||||||
The changes in recorded goodwill by reporting unit for the six months ended June 30, 2014 were as follows (amounts in thousands): | |||||||||||||||||||||
Home-Based | Community- | Hospice | Facility-Based | Total | |||||||||||||||||
Reporting unit | Based | Reporting Unit | Reporting Unit | ||||||||||||||||||
Reporting Unit | |||||||||||||||||||||
Balances as of December 31, 2013 | $ | 173,574 | $ | 265 | $ | 9,463 | $ | 11,591 | $ | 194,893 | |||||||||||
Goodwill from acquisitions | 14,314 | 16,874 | 3,393 | — | 34,581 | ||||||||||||||||
Goodwill related to noncontrolling interests | 38 | — | — | — | 38 | ||||||||||||||||
Goodwill related to disposal | (50 | ) | — | — | — | (50 | ) | ||||||||||||||
Balances as of June 30, 2014 | $ | 187,876 | $ | 17,139 | $ | 12,856 | $ | 11,591 | $ | 229,462 | |||||||||||
Intangible assets consisted of the following as of June 30, 2014 and December 31, 2013 (amounts in thousands): | |||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||
Estimated useful life | Gross | Accumulated | Net | ||||||||||||||||||
carrying | amortization | carrying | |||||||||||||||||||
amount | amount | ||||||||||||||||||||
Indefinite-lived assets: | |||||||||||||||||||||
Trade names | Indefinite | $ | 64,372 | — | $ | 64,372 | |||||||||||||||
Certificates of need/licenses | Indefinite | 13,343 | — | 13,343 | |||||||||||||||||
Indefinite-lived balance at end of period | $ | 77,715 | — | $ | 77,715 | ||||||||||||||||
Definite-lived assets: | |||||||||||||||||||||
Trade names | 3 months — 5 years | $ | 7,537 | $ | (1,852 | ) | $ | 5,685 | |||||||||||||
Non-compete agreements | 3 months — 2 years | 4,158 | (3,609 | ) | 549 | ||||||||||||||||
Favorable leases | 1 year — 3 years | 24 | — | 24 | |||||||||||||||||
Definite-lived balance at end of period | $ | 11,719 | $ | (5,461 | ) | $ | 6,258 | ||||||||||||||
Balance at June 30, 2014 | $ | 89,434 | $ | (5,461 | ) | $ | 83,973 | ||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Estimated useful life | Gross | Accumulated | Net | ||||||||||||||||||
carrying | amortization | carrying | |||||||||||||||||||
amount | amount | ||||||||||||||||||||
Indefinite-lived assets: | |||||||||||||||||||||
Trade names | Indefinite | $ | 46,707 | — | $ | 46,707 | |||||||||||||||
Certificates of need/licenses | Indefinite | 10,540 | — | 10,540 | |||||||||||||||||
Indefinite-lived balance at end of period | $ | 57,247 | — | $ | 57,247 | ||||||||||||||||
Definite-lived assets: | |||||||||||||||||||||
Trade names | 3 months — 5 years | $ | 5,625 | $ | (1,055 | ) | $ | 4,570 | |||||||||||||
Non-compete agreements | 3 months — 2 years | 3,830 | (3,463 | ) | 367 | ||||||||||||||||
Definite-lived balance at end of period | $ | 9,455 | $ | (4,518 | ) | $ | 4,937 | ||||||||||||||
Balance at December 31, 2013 | $ | 66,702 | $ | (4,518 | ) | $ | 62,184 | ||||||||||||||
Intangible assets of $77.3 million, net of accumulated amortization, were related to the home-based services segment, $5.6 were related to the hospice segment and $1.0 million were related to the facility-based services segment as of June 30, 2014. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
5. Debt | |
Credit Facility | |
On June 18, 2014, the Company entered into a Credit Agreement (the “Credit Agreement”) with Capital One, National Association, which provides a senior, secured revolving line of credit commitment with a maximum principal borrowing limit of $225.0 million and a letter of credit sub-limit equal to $15.0 million. The Credit Agreement replaces the Third Amended and Restated Credit Agreement with Capital One, National Association, dated August 31, 2012. The expiration date of the Credit Agreement is June 18, 2019. Revolving loans under the Credit Agreement bear interest at either a Base Rate, which is defined as a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate in effect on such day plus 0.5% (b) the Prime Rate in effect on such day and (c) the Eurodollar Rate for a one month interest period on such day plus 1.0%, plus a margin ranging from 0.75% to 1.5% per annum or Eurodollar rate plus a margin ranging from 1.75% to 2.5% per annum. Swing line loans bear interest at the Base Rate. The Company is limited to 15 Eurodollar borrowings outstanding at the same time. The Company is required to pay a commitment fee for the unused commitments at rates ranging from 0.225% to 0.375% per annum depending upon the Company’s consolidated Leverage Ratio, as defined in the Credit Agreement. The Base Rate at June 30, 2014 was 4.25% and the Eurodollar rate was 2.15%. | |
As of June 30, 2014 and December 31, 2013, respectively, the Company had $69.0 million and $22.0 million drawn and letters of credit totaling $6.7 million outstanding under its credit facilities with Capital One, National Association. | |
As of June 30, 2014, the Company had $149.3 million available for borrowing under the Credit Agreement with Capital One, National Association. | |
Promissory Note | |
On January 7, 2014, the Company entered into a promissory note with American Bank & Trust Company in an aggregate principal amount of $1.2 million. The promissory note matures on January 6, 2019. Principal payments of $20,000 are due monthly over a period of 60 months. The interest rate on the promissory note is a fixed rate of 4.50%. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
6. Income Taxes | |
As of June 30, 2014, 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. On July 30, 2014, the Internal Revenue Service (“IRS”) issued a notice of proposed adjustment that a portion of the original tax deduction claimed by the Company associated with the settlement with the United States of America would be disallowed by the IRS. The Company intends to fully cooperate with the IRS in its review of this matter and to vigorously defend its original position of the deductibility of the full settlement amount on its 2011 tax return. |
Stockholders_Equity
Stockholder's Equity | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
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 are 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 six months ended June 30, 2014, the Company’s independent directors were granted 23,400 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 six months ended June 30, 2014, employees were granted 172,545 nonvested shares of common stock pursuant to the 2010 Incentive Plan. The shares 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 six months ended June 30, 2014 was $23.56. | |||||||||
The following table represents the nonvested stock activity for the six months ended June 30, 2014: | |||||||||
Number of | Weighted | ||||||||
Shares | average grant | ||||||||
date fair value | |||||||||
Nonvested shares outstanding as of December 31, 2013 | 506,467 | $ | 22.08 | ||||||
Granted | 195,945 | $ | 23.56 | ||||||
Vested | (165,349 | ) | $ | 21.92 | |||||
Forfeited | (2,175 | ) | $ | 24.88 | |||||
Nonvested shares outstanding as of June 30, 2014 | 534,888 | $ | 22.56 | ||||||
During the six months ended June 30, 2014, an independent director of the Company received a share based award, which will be settled in cash at March 1, 2015. The amount of such cash payment will equal the fair market value of 2,600 shares on the settlement date. | |||||||||
As of June 30, 2014, there was $9.9 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 3.42 years. The total fair value of shares of common stock vested during the six months ended June 30, 2014 and 2013 was $3.6 million for each period. 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 $2.1 million and $1.9 million of compensation expense related to nonvested stock grants in the six months ended June 30, 2014 and 2013, 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. In 2013, the Company adopted the Amended and Restated Employee Stock Purchase Plan, which issued an additional 250,000 shares of common stock to the plan. | |||||||||
The table below details the shares of common stock issued during 2014: | |||||||||
Number of | Per share | ||||||||
Shares | price | ||||||||
Shares available as of December 31, 2013 | 272,788 | ||||||||
Shares issued during three months ended March 31, 2014 | 8,025 | $ | 22.84 | ||||||
Shares issued during three months ended June 30, 2014 | 9,887 | $ | 20.96 | ||||||
Shares available as of June 30, 2014 | 254,876 | ||||||||
Stock Options | |||||||||
As of June 30, 2014, 15,000 options were issued and exercisable. During the six months ended June 30, 2014, 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 six months ended June 30, 2014, the Company redeemed 36,864 shares of common stock valued at $0.9 million, related to these tax obligations. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
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 interim financial information. | |
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 requested documents related to the Company’s agencies in Oregon, Washington and Idaho. The Company produced the requested documents and cooperated fully with the OIG’s review. The Company later learned that the OIG review resulted from a qui tam action filed by a relator under the whistleblower provisions of the federal False Claims Act. On March 7, 2014, the United States District Court for the Western District of Washington granted the government’s motion to decline intervention in the relator’s action, the relator’s complaint was unsealed, and the relator voluntarily dismissed the complaint. This matter is now closed. | |
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, as 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. 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. On June 16, 2014, following mediation, the parties entered into a Stipulation of Settlement. On June 17, 2014, Lead Plaintiff filed an Unopposed Motion for Preliminary Approval of Class Action Settlement, which is presently pending. If approved, as part of the settlement, the Company’s insurance carrier will fund the entire $7.9 million settlement amount. The Company’s balance sheet reflects the entire settlement in current assets as a receivable due from insurance carrier and correspondingly reflects the entire settlement in current liabilities as a legal settlement payable. | |
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-JTT-CMH. 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. | |
On December 30, 2013, a related 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 of the Western District of Louisiana, styled McCormack v. Myers, et al., Case No. 6:13-cv-03301-JTT-CMH. The action was brought derivatively on the Company’s behalf and the Company was also named as a nominal defendant. Plaintiff generally alleges that the individual defendants breached their fiduciary duties owed to the Company and wasted corporate assets. Plaintiff also alleges that the Company’s Chairman and Chief Executive Officer caused false and misleading statements to be issued in violation of Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder and that the Company’s Directors are control persons under Section 20(a) of the Exchange Act. The complaint also alleges claims for insider selling, misappropriation of information and unjust enrichment against the Company’s Chairman and Chief Executive Officer and the Company’s former President and Chief Operating Officer. | |
On March 25, 2014, the McCormack derivative action was consolidated with the related Plummer derivative action described above and stayed pending the conclusion of expert discovery in the related City of Omaha shareholder securities class action described above. The parties are presently discussing future case scheduling. The Company believes these claims are without merit and intends to defend this consolidated lawsuit vigorously. The Company cannot predict the outcome or effect of this consolidated 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 above described lawsuits could result in substantial financial penalties or awards against the Company. At this time, the Company cannot predict the ultimate outcome of these matters or the potential range of damages, if any. | |
Joint Venture Buy/Sell Provisions | |
Most of the Company’s joint ventures include a buy/sell option that grants to the Company and its joint venture partners the right to require the other 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. The Company has not received notice from any joint venture partners of their intent to exercise the terms of the buy/sell agreement nor has the Company notified any joint venture partners of its intent to exercise the terms of the buy/sell agreement. | |
Compliance | |
The 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 | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
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 applicable joint venture 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 six months ended June 30, 2014 (amounts in thousands): | |||||
Balance as of December 31, 2013 | $ | 11,258 | |||
Net income attributable to noncontrolling interest-redeemable | 2,484 | ||||
Noncontrolling interest-redeemable distributions | (2,611 | ) | |||
Sale of noncontrolling interest | 32 | ||||
Purchase of noncontrolling interest | 100 | ||||
Balance as of June 30, 2014 | $ | 11,263 | |||
Allowance_for_Uncollectible_Ac
Allowance for Uncollectible Accounts | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
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, 2013 | $ | 14,334 | |||
Additions | 7,725 | ||||
Deductions | (5,883 | ) | |||
Balance as of June 30, 2014 | $ | 16,176 | |||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2014 | |
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 because of their short maturity. The estimated fair value of intangible assets acquired was calculated using level 3 inputs based on the present value of anticipated future benefits. For the six months ended June 30, 2014, the carrying value of the Company’s long-term debt approximates fair value as the interest rates approximates current rates. |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
12. Segment Information | |||||||||||||||||
During the first quarter of 2014, the Company had a change in the composition of segments due to the hospice services meeting the criteria of quantitative thresholds established by ASC 280, Segment Reporting. Prior-period segment data has been restated to reflect the newly reportable segment in which hospice services were previously included in home-based services. | |||||||||||||||||
The Company’s reportable segments consist of home-based services, hospice services and facility-based services. Home-based services include home nursing services and community based 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. | |||||||||||||||||
The following tables summarize the Company’s segment information for the three and six months ended June 30, 2014 and 2013 (amounts in thousands): | |||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
Home- | Hospice- | Facility- | Total | ||||||||||||||
Based | Services | Based | |||||||||||||||
Services | Services | ||||||||||||||||
Net service revenue | $ | 154,260 | $ | 17,068 | $ | 17,539 | $ | 188,867 | |||||||||
Cost of service revenue | 90,223 | 10,151 | 11,153 | 111,527 | |||||||||||||
Provision for bad debts | 4,068 | 93 | 202 | 4,363 | |||||||||||||
General and administrative expenses | 49,612 | 4,791 | 5,211 | 59,614 | |||||||||||||
Operating income | 10,357 | 2,033 | 973 | 13,363 | |||||||||||||
Interest expense | (664 | ) | (83 | ) | (83 | ) | (830 | ) | |||||||||
Non-operating income | (114 | ) | 2 | 3 | (109 | ) | |||||||||||
Income before income taxes and noncontrolling interest | 9,579 | 1,952 | 893 | 12,424 | |||||||||||||
Income tax expense | 3,436 | 530 | 386 | 4,352 | |||||||||||||
Net income | 6,143 | 1,422 | 507 | 8,072 | |||||||||||||
Less net income attributable to noncontrolling interests | 1,537 | 335 | 139 | 2,011 | |||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 4,606 | $ | 1,087 | $ | 368 | $ | 6,061 | |||||||||
Total assets | $ | 425,254 | $ | 35,530 | $ | 36,841 | $ | 497,625 | |||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||
Home- | Hospice- | Facility- | Total | ||||||||||||||
Based | Services | Based | |||||||||||||||
Services | Services | ||||||||||||||||
Net service revenue | $ | 132,638 | $ | 13,906 | $ | 19,758 | $ | 166,302 | |||||||||
Cost of service revenue | 77,624 | 8,628 | 10,757 | 97,009 | |||||||||||||
Provision for bad debts | 2,657 | 211 | 340 | 3,208 | |||||||||||||
General and administrative expenses | 44,624 | 4,143 | 5,390 | 54,157 | |||||||||||||
Operating income | 7,733 | 924 | 3,271 | 11,928 | |||||||||||||
Interest expense | (567 | ) | (63 | ) | (70 | ) | (700 | ) | |||||||||
Non-operating income | 35 | 3 | 27 | 65 | |||||||||||||
Income before income taxes and noncontrolling interest | 7,201 | 864 | 3,228 | 11,293 | |||||||||||||
Income tax expense | 3,140 | 413 | 365 | 3,918 | |||||||||||||
Net income | 4,061 | 451 | 2,863 | 7,375 | |||||||||||||
Less net income attributable to noncontrolling interests | 973 | 243 | 369 | 1,585 | |||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 3,088 | $ | 208 | $ | 2,494 | $ | 5,790 | |||||||||
Total assets | $ | 351,657 | $ | 27,030 | $ | 36,701 | $ | 415,388 | |||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||
Home- | Hospice- | Facility- | Total | ||||||||||||||
Based | Services | Based | |||||||||||||||
Services | Services | ||||||||||||||||
Net service revenue | $ | 282,940 | $ | 32,290 | $ | 37,318 | $ | 352,548 | |||||||||
Cost of service revenue | 166,667 | 19,048 | 23,146 | 208,861 | |||||||||||||
Provision for bad debts | 6,722 | 198 | 805 | 7,725 | |||||||||||||
General and administrative expenses | 94,156 | 9,238 | 10,832 | 114,226 | |||||||||||||
Operating income | 15,395 | 3,806 | 2,535 | 21,736 | |||||||||||||
Interest expense | (974 | ) | (122 | ) | (122 | ) | (1,218 | ) | |||||||||
Non-operating income | (87 | ) | 5 | 6 | (76 | ) | |||||||||||
Income before income taxes and noncontrolling interest | 14,334 | 3,689 | 2,419 | 20,442 | |||||||||||||
Income tax expense | 5,729 | 876 | 670 | 7,275 | |||||||||||||
Net income | 8,605 | 2,813 | 1,749 | 13,167 | |||||||||||||
Less net income attributable to noncontrolling interests | 2,144 | 536 | 358 | 3,038 | |||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 6,461 | $ | 2,277 | $ | 1,391 | $ | 10,129 | |||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||
Home- | Hospice- | Facility- | Total | ||||||||||||||
Based | Services | Based | |||||||||||||||
Services | Services | ||||||||||||||||
Net service revenue | $ | 261,714 | $ | 26,817 | $ | 39,724 | $ | 328,255 | |||||||||
Cost of service revenue | 151,159 | 16,683 | 22,415 | 190,257 | |||||||||||||
Provision for bad debts | 5,676 | 469 | 980 | 7,125 | |||||||||||||
General and administrative expenses | 87,046 | 7,893 | 10,841 | 105,780 | |||||||||||||
Operating income | 17,833 | 1,772 | 5,488 | 25,093 | |||||||||||||
Interest expense | (920 | ) | (97 | ) | (108 | ) | (1,125 | ) | |||||||||
Non-operating income | 61 | 18 | 51 | 130 | |||||||||||||
Income before income taxes and noncontrolling interest | 16,974 | 1,693 | 5,431 | 24,098 | |||||||||||||
Income tax expense | 6,965 | 675 | 814 | 8,454 | |||||||||||||
Net income | 10,009 | 1,018 | 4,617 | 15,644 | |||||||||||||
Less net income attributable to noncontrolling interests | 2,340 | 475 | 753 | 3,568 | |||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 7,669 | $ | 543 | $ | 3,864 | $ | 12,076 | |||||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ' |
Supplemental Cash Flow Information | ' |
13. Supplemental Cash Flow Information | |
During the six months ended June 30, 2014, $1.5 million of licenses associated with the Company’s Point of Care technology were capitalized as additions to property, building and equipment. These licenses were purchased during the twelve months ended December 31, 2010 and previously recorded in other assets on the balance sheet. |
Subsequent_Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
14. Subsequent Event | |
On July 14, 2014, the Company entered into a definitive asset purchase agreement with Life Care Home Health, Inc. and its operating subsidiaries, to purchase 14 home health agencies across seven states for $10.0 million is cash. The transaction is expected to close on September 1, 2014, subject to customary closing conditions. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 interim financial information includes 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 interim financial information includes 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 interim financial information. | |||||||||||||||||
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 | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Wholly-owned subsidiaries | 54.5 | % | 49 | % | 52 | % | 47.9 | % | |||||||||
Equity joint ventures | 42.9 | 48.3 | 45.3 | 49.3 | |||||||||||||
License leasing arrangements | 1.8 | 1.9 | 1.9 | 1.9 | |||||||||||||
Management services | 0.8 | 0.8 | 0.8 | 0.9 | |||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
All significant intercompany accounts and transactions have been eliminated in the Company’s accompanying interim financial information. Business combinations accounted for under the acquisition method have been included in the interim financial information 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 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 in, and does not have an obligation to absorb losses of, the entities that own the agencies and facilities or the right to receive the benefits from those entities. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
The Company reports net service revenue at the estimated net realizable amount due from Medicare, Medicaid and others for services rendered. All such payors contribute to the net service revenue of the Company’s home-based services, hospice 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 six months ended June 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Payor: | |||||||||||||||||
Medicare | 75.3 | % | 79.7 | % | 76.9 | % | 79.5 | % | |||||||||
Medicaid | 1.4 | 1.5 | 1.3 | 1.5 | |||||||||||||
Other | 23.3 | 18.8 | 21.8 | 19 | |||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | ||||||||||
The percentage of net service revenue contributed from each reporting segment for the three and six months ended June 30, 2014 and 2013 was as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Home-based services | 81.7 | % | 79.8 | % | 80.3 | % | 79.7 | % | |||||||||
Hospice services | 9 | 8.3 | 9.1 | 8.2 | |||||||||||||
Facility-based services | 9.3 | 11.9 | 10.6 | 12.1 | |||||||||||||
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. The 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 | |||||||||||||||||
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 based upon a predetermined fee schedule or an episodic basis, depending on the terms of the applicable contract. Accordingly, the Company recognizes revenue from managed care and other payors in the same manner as the Company recognizes revenue from Medicare or Medicaid. | |||||||||||||||||
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 58% 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 services to the Medicare population are paid at prospectively set amounts 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 provide for payments based upon a predetermined fee schedule or an episodic basis, depending on the terms of the applicable contract. 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 | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average number of shares outstanding for basic per share calculation | 17,233,264 | 17,055,619 | 17,190,070 | 17,011,306 | |||||||||||||
Effect of dilutive potential shares: | |||||||||||||||||
Options | 3,750 | 4,032 | 4,031 | 3,937 | |||||||||||||
Nonvested stock | 40,210 | 67,366 | 74,455 | 73,220 | |||||||||||||
Adjusted weighted average shares for diluted per share calculation | 17,277,224 | 17,127,017 | 17,268,556 | 17,088,463 | |||||||||||||
Anti-dilutive shares | 187,179 | 39,756 | 210,570 | 180,966 | |||||||||||||
Recently Issued Accounting Pronouncements | ' | ||||||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||
FASB issued Accounting Standards Update 2014-08 Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU”) in April 2014. The ASU changed the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on a Company’s operations and financial results. The ASU also requires additional disclosures for discontinued operations. The ASU is effective for annual periods beginning after December 15, 2014 and for interim periods within those years; early adoption is permitted but only for disposals that have not been reported in financial statements previously issued or available for issuance. The Company adopted this guidance during the three months ended June 30, 2014. | |||||||||||||||||
On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Wholly-owned subsidiaries | 54.5 | % | 49 | % | 52 | % | 47.9 | % | |||||||||
Equity joint ventures | 42.9 | 48.3 | 45.3 | 49.3 | |||||||||||||
License leasing arrangements | 1.8 | 1.9 | 1.9 | 1.9 | |||||||||||||
Management services | 0.8 | 0.8 | 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 six months ended June 30, 2014 and 2013: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Payor: | |||||||||||||||||
Medicare | 75.3 | % | 79.7 | % | 76.9 | % | 79.5 | % | |||||||||
Medicaid | 1.4 | 1.5 | 1.3 | 1.5 | |||||||||||||
Other | 23.3 | 18.8 | 21.8 | 19 | |||||||||||||
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 six months ended June 30, 2014 and 2013 was as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Home-based services | 81.7 | % | 79.8 | % | 80.3 | % | 79.7 | % | |||||||||
Hospice services | 9 | 8.3 | 9.1 | 8.2 | |||||||||||||
Facility-based services | 9.3 | 11.9 | 10.6 | 12.1 | |||||||||||||
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 | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average number of shares outstanding for basic per share calculation | 17,233,264 | 17,055,619 | 17,190,070 | 17,011,306 | |||||||||||||
Effect of dilutive potential shares: | |||||||||||||||||
Options | 3,750 | 4,032 | 4,031 | 3,937 | |||||||||||||
Nonvested stock | 40,210 | 67,366 | 74,455 | 73,220 | |||||||||||||
Adjusted weighted average shares for diluted per share calculation | 17,277,224 | 17,127,017 | 17,268,556 | 17,088,463 | |||||||||||||
Anti-dilutive shares | 187,179 | 39,756 | 210,570 | 180,966 |
Acquisitions_and_Disposals_Tab
Acquisitions and Disposals (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Schedule of Acquired Entities | ' | ||||||||||||
The Company maintains an ownership interest in the acquired businesses as set forth below: | |||||||||||||
Acquired Businesses | Ownership | State of Operations | Acquisition | ||||||||||
Percentage | Date | ||||||||||||
EAMC — Lanier Home Health | 75 | % | Alabama | 2/1/14 | |||||||||
Lifeline Home Health | 100 | % | Kentucky | 2/1/14 | |||||||||
Louisiana Hospice & Palliative Care of New Orleans | 100 | % | Louisiana | 3/1/14 | |||||||||
West Virginia Home Health | 100 | % | West Virginia | 4/1/14 | |||||||||
St. Joseph’s Hospice | 100 | % | West Virginia | 4/1/14 | |||||||||
Northwestern Illinois Home Health | 100 | % | Illinois | 4/1/14 | |||||||||
Deaconess-Lifeline Home Health | 100 | % | Kentucky | 4/1/14 | |||||||||
Deaconess HomeCare | 100 | % | Mississippi | 4/1/14 | |||||||||
Deaconess HomeCare | 100 | % | Tennessee | 4/1/14 | |||||||||
Deaconess Hospice | 100 | % | Mississippi | 4/1/14 | |||||||||
Elk Valley Health Services, LLC | 100 | % | Tennessee | 4/1/14 | |||||||||
North Carolina Home Health | 100 | % | North Carolina | 5/1/14 | |||||||||
Professional Nursing Services | 100 | % | North Carolina | 5/1/14 | |||||||||
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 | $ | 65,103 | |||||||||||
Fair value of total consideration transferred | $ | 65,103 | |||||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||||||||||
Trade name | $ | 19,680 | |||||||||||
Certificates of need/license | 2,822 | ||||||||||||
Other identifiable intangible assets | 337 | ||||||||||||
Accounts receivable | 10,821 | ||||||||||||
Fixed assets | 379 | ||||||||||||
Accounts payable | (1,170 | ) | |||||||||||
Other assets and (liabilities), net | (2,287 | ) | |||||||||||
Total identifiable assets acquired and liabilities assumed | $ | 30,582 | |||||||||||
Noncontrolling interest | $ | 98 | |||||||||||
Goodwill, including noncontrolling interest of $38 | $ | 34,619 | |||||||||||
Summary of Unaudited Pro Forma Information in Combined Results of Operations | ' | ||||||||||||
The following unaudited pro forma information presents the combined results of operations of the Company and Deaconess for the six months ended June 30, 2014 and 2013 as if the acquisition occurred on January 1, 2013 (amounts in thousands, except earnings per share): | |||||||||||||
Six months ended June 30, | |||||||||||||
2014 | 2013 | ||||||||||||
Net service revenue | $ | 370,089 | $ | 364,393 | |||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | 10,104 | 12,574 | |||||||||||
Earnings per share — basic and diluted | $ | 0.59 | $ | 0.74 |
Goodwill_and_Intangibles_Table
Goodwill and Intangibles (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Changes in Recorded Goodwill by Reporting Unit | ' | ||||||||||||||||||||
The changes in recorded goodwill by reporting unit for the six months ended June 30, 2014 were as follows (amounts in thousands): | |||||||||||||||||||||
Home-Based | Community- | Hospice | Facility-Based | Total | |||||||||||||||||
Reporting unit | Based | Reporting Unit | Reporting Unit | ||||||||||||||||||
Reporting Unit | |||||||||||||||||||||
Balances as of December 31, 2013 | $ | 173,574 | $ | 265 | $ | 9,463 | $ | 11,591 | $ | 194,893 | |||||||||||
Goodwill from acquisitions | 14,314 | 16,874 | 3,393 | — | 34,581 | ||||||||||||||||
Goodwill related to noncontrolling interests | 38 | — | — | — | 38 | ||||||||||||||||
Goodwill related to disposal | (50 | ) | — | — | — | (50 | ) | ||||||||||||||
Balances as of June 30, 2014 | $ | 187,876 | $ | 17,139 | $ | 12,856 | $ | 11,591 | $ | 229,462 | |||||||||||
Summary of Changes in Intangible Assets | ' | ||||||||||||||||||||
Intangible assets consisted of the following as of June 30, 2014 and December 31, 2013 (amounts in thousands): | |||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||
Estimated useful life | Gross | Accumulated | Net | ||||||||||||||||||
carrying | amortization | carrying | |||||||||||||||||||
amount | amount | ||||||||||||||||||||
Indefinite-lived assets: | |||||||||||||||||||||
Trade names | Indefinite | $ | 64,372 | — | $ | 64,372 | |||||||||||||||
Certificates of need/licenses | Indefinite | 13,343 | — | 13,343 | |||||||||||||||||
Indefinite-lived balance at end of period | $ | 77,715 | — | $ | 77,715 | ||||||||||||||||
Definite-lived assets: | |||||||||||||||||||||
Trade names | 3 months — 5 years | $ | 7,537 | $ | (1,852 | ) | $ | 5,685 | |||||||||||||
Non-compete agreements | 3 months — 2 years | 4,158 | (3,609 | ) | 549 | ||||||||||||||||
Favorable leases | 1 year — 3 years | 24 | — | 24 | |||||||||||||||||
Definite-lived balance at end of period | $ | 11,719 | $ | (5,461 | ) | $ | 6,258 | ||||||||||||||
Balance at June 30, 2014 | $ | 89,434 | $ | (5,461 | ) | $ | 83,973 | ||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Estimated useful life | Gross | Accumulated | Net | ||||||||||||||||||
carrying | amortization | carrying | |||||||||||||||||||
amount | amount | ||||||||||||||||||||
Indefinite-lived assets: | |||||||||||||||||||||
Trade names | Indefinite | $ | 46,707 | — | $ | 46,707 | |||||||||||||||
Certificates of need/licenses | Indefinite | 10,540 | — | 10,540 | |||||||||||||||||
Indefinite-lived balance at end of period | $ | 57,247 | — | $ | 57,247 | ||||||||||||||||
Definite-lived assets: | |||||||||||||||||||||
Trade names | 3 months — 5 years | $ | 5,625 | $ | (1,055 | ) | $ | 4,570 | |||||||||||||
Non-compete agreements | 3 months — 2 years | 3,830 | (3,463 | ) | 367 | ||||||||||||||||
Definite-lived balance at end of period | $ | 9,455 | $ | (4,518 | ) | $ | 4,937 | ||||||||||||||
Balance at December 31, 2013 | $ | 66,702 | $ | (4,518 | ) | $ | 62,184 | ||||||||||||||
Stockholders_Equity_Tables
Stockholder's Equity (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
Nonvested Stock Activity | ' | ||||||||
The following table represents the nonvested stock activity for the six months ended June 30, 2014: | |||||||||
Number of | Weighted | ||||||||
Shares | average grant | ||||||||
date fair value | |||||||||
Nonvested shares outstanding as of December 31, 2013 | 506,467 | $ | 22.08 | ||||||
Granted | 195,945 | $ | 23.56 | ||||||
Vested | (165,349 | ) | $ | 21.92 | |||||
Forfeited | (2,175 | ) | $ | 24.88 | |||||
Nonvested shares outstanding as of June 30, 2014 | 534,888 | $ | 22.56 | ||||||
Shares of Common Stock Issued During 2014 Under Employee Stock Purchase Plan | ' | ||||||||
The table below details the shares of common stock issued during 2014: | |||||||||
Number of | Per share | ||||||||
Shares | price | ||||||||
Shares available as of December 31, 2013 | 272,788 | ||||||||
Shares issued during three months ended March 31, 2014 | 8,025 | $ | 22.84 | ||||||
Shares issued during three months ended June 30, 2014 | 9,887 | $ | 20.96 | ||||||
Shares available as of June 30, 2014 | 254,876 | ||||||||
Noncontrolling_interest_Tables
Noncontrolling interest (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Noncontrolling Interest [Abstract] | ' | ||||
Summary of Activity of Noncontrolling Interest-Redeemable | ' | ||||
The following table summarizes the activity of noncontrolling interest-redeemable for the six months ended June 30, 2014 (amounts in thousands): | |||||
Balance as of December 31, 2013 | $ | 11,258 | |||
Net income attributable to noncontrolling interest-redeemable | 2,484 | ||||
Noncontrolling interest-redeemable distributions | (2,611 | ) | |||
Sale of noncontrolling interest | 32 | ||||
Purchase of noncontrolling interest | 100 | ||||
Balance as of June 30, 2014 | $ | 11,263 | |||
Allowance_for_Uncollectible_Ac1
Allowance for Uncollectible Accounts (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||
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, 2013 | $ | 14,334 | |||
Additions | 7,725 | ||||
Deductions | (5,883 | ) | |||
Balance as of June 30, 2014 | $ | 16,176 | |||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
The following tables summarize the Company’s segment information for the three and six months ended June 30, 2014 and 2013 (amounts in thousands): | |||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||
Home- | Hospice- | Facility- | Total | ||||||||||||||
Based | Services | Based | |||||||||||||||
Services | Services | ||||||||||||||||
Net service revenue | $ | 154,260 | $ | 17,068 | $ | 17,539 | $ | 188,867 | |||||||||
Cost of service revenue | 90,223 | 10,151 | 11,153 | 111,527 | |||||||||||||
Provision for bad debts | 4,068 | 93 | 202 | 4,363 | |||||||||||||
General and administrative expenses | 49,612 | 4,791 | 5,211 | 59,614 | |||||||||||||
Operating income | 10,357 | 2,033 | 973 | 13,363 | |||||||||||||
Interest expense | (664 | ) | (83 | ) | (83 | ) | (830 | ) | |||||||||
Non-operating income | (114 | ) | 2 | 3 | (109 | ) | |||||||||||
Income before income taxes and noncontrolling interest | 9,579 | 1,952 | 893 | 12,424 | |||||||||||||
Income tax expense | 3,436 | 530 | 386 | 4,352 | |||||||||||||
Net income | 6,143 | 1,422 | 507 | 8,072 | |||||||||||||
Less net income attributable to noncontrolling interests | 1,537 | 335 | 139 | 2,011 | |||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 4,606 | $ | 1,087 | $ | 368 | $ | 6,061 | |||||||||
Total assets | $ | 425,254 | $ | 35,530 | $ | 36,841 | $ | 497,625 | |||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||
Home- | Hospice- | Facility- | Total | ||||||||||||||
Based | Services | Based | |||||||||||||||
Services | Services | ||||||||||||||||
Net service revenue | $ | 132,638 | $ | 13,906 | $ | 19,758 | $ | 166,302 | |||||||||
Cost of service revenue | 77,624 | 8,628 | 10,757 | 97,009 | |||||||||||||
Provision for bad debts | 2,657 | 211 | 340 | 3,208 | |||||||||||||
General and administrative expenses | 44,624 | 4,143 | 5,390 | 54,157 | |||||||||||||
Operating income | 7,733 | 924 | 3,271 | 11,928 | |||||||||||||
Interest expense | (567 | ) | (63 | ) | (70 | ) | (700 | ) | |||||||||
Non-operating income | 35 | 3 | 27 | 65 | |||||||||||||
Income before income taxes and noncontrolling interest | 7,201 | 864 | 3,228 | 11,293 | |||||||||||||
Income tax expense | 3,140 | 413 | 365 | 3,918 | |||||||||||||
Net income | 4,061 | 451 | 2,863 | 7,375 | |||||||||||||
Less net income attributable to noncontrolling interests | 973 | 243 | 369 | 1,585 | |||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 3,088 | $ | 208 | $ | 2,494 | $ | 5,790 | |||||||||
Total assets | $ | 351,657 | $ | 27,030 | $ | 36,701 | $ | 415,388 | |||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||
Home- | Hospice- | Facility- | Total | ||||||||||||||
Based | Services | Based | |||||||||||||||
Services | Services | ||||||||||||||||
Net service revenue | $ | 282,940 | $ | 32,290 | $ | 37,318 | $ | 352,548 | |||||||||
Cost of service revenue | 166,667 | 19,048 | 23,146 | 208,861 | |||||||||||||
Provision for bad debts | 6,722 | 198 | 805 | 7,725 | |||||||||||||
General and administrative expenses | 94,156 | 9,238 | 10,832 | 114,226 | |||||||||||||
Operating income | 15,395 | 3,806 | 2,535 | 21,736 | |||||||||||||
Interest expense | (974 | ) | (122 | ) | (122 | ) | (1,218 | ) | |||||||||
Non-operating income | (87 | ) | 5 | 6 | (76 | ) | |||||||||||
Income before income taxes and noncontrolling interest | 14,334 | 3,689 | 2,419 | 20,442 | |||||||||||||
Income tax expense | 5,729 | 876 | 670 | 7,275 | |||||||||||||
Net income | 8,605 | 2,813 | 1,749 | 13,167 | |||||||||||||
Less net income attributable to noncontrolling interests | 2,144 | 536 | 358 | 3,038 | |||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 6,461 | $ | 2,277 | $ | 1,391 | $ | 10,129 | |||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||
Home- | Hospice- | Facility- | Total | ||||||||||||||
Based | Services | Based | |||||||||||||||
Services | Services | ||||||||||||||||
Net service revenue | $ | 261,714 | $ | 26,817 | $ | 39,724 | $ | 328,255 | |||||||||
Cost of service revenue | 151,159 | 16,683 | 22,415 | 190,257 | |||||||||||||
Provision for bad debts | 5,676 | 469 | 980 | 7,125 | |||||||||||||
General and administrative expenses | 87,046 | 7,893 | 10,841 | 105,780 | |||||||||||||
Operating income | 17,833 | 1,772 | 5,488 | 25,093 | |||||||||||||
Interest expense | (920 | ) | (97 | ) | (108 | ) | (1,125 | ) | |||||||||
Non-operating income | 61 | 18 | 51 | 130 | |||||||||||||
Income before income taxes and noncontrolling interest | 16,974 | 1,693 | 5,431 | 24,098 | |||||||||||||
Income tax expense | 6,965 | 675 | 814 | 8,454 | |||||||||||||
Net income | 10,009 | 1,018 | 4,617 | 15,644 | |||||||||||||
Less net income attributable to noncontrolling interests | 2,340 | 475 | 753 | 3,568 | |||||||||||||
Net income attributable to LHC Group, Inc.’s common stockholders | $ | 7,669 | $ | 543 | $ | 3,864 | $ | 12,076 | |||||||||
Organization_Additional_Inform
Organization - Additional Information (Detail) | Jun. 30, 2014 |
State | |
ServiceProvider | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
Number of service providers operated | 338 |
Number of states in which Company operates | 25 |
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 | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Health Care Organization, Revenue [Abstract] | ' | ' | ' | ' |
Percentage of net service revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Wholly-owned subsidiaries [Member] | ' | ' | ' | ' |
Health Care Organization, Revenue [Abstract] | ' | ' | ' | ' |
Percentage of net service revenue | 54.50% | 49.00% | 52.00% | 47.90% |
Equity joint ventures [Member] | ' | ' | ' | ' |
Health Care Organization, Revenue [Abstract] | ' | ' | ' | ' |
Percentage of net service revenue | 42.90% | 48.30% | 45.30% | 49.30% |
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% | 0.80% | 0.80% | 0.90% |
Significant_Accounting_Policie4
Significant Accounting Policies - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
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 | 58.00% |
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 | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
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 | 75.30% | 79.70% | 76.90% | 79.50% |
Medicaid [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Percentage of net service revenue | 1.40% | 1.50% | 1.30% | 1.50% |
Other [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Percentage of net service revenue | 23.30% | 18.80% | 21.80% | 19.00% |
Significant_Accounting_Policie6
Significant Accounting Policies - Percentage of Net Service Revenue Contributed from Each Reporting Segment (Detail) (Sales Revenue, Segment [Member]) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
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 | 81.70% | 79.80% | 80.30% | 79.70% |
Hospice-based services [Member] | ' | ' | ' | ' |
Health Care Organization, Revenue [Abstract] | ' | ' | ' | ' |
Percentage of net service revenue | 9.00% | 8.30% | 9.10% | 8.20% |
Facility-based services [Member] | ' | ' | ' | ' |
Health Care Organization, Revenue [Abstract] | ' | ' | ' | ' |
Percentage of net service revenue | 9.30% | 11.90% | 10.60% | 12.10% |
Significant_Accounting_Policie7
Significant Accounting Policies - Shares Used in Computation of Basic and Diluted Per Share Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Weighted average shares outstanding: | ' | ' | ' | ' |
Weighted average number of shares outstanding for basic per share calculation | 17,233,264 | 17,055,619 | 17,190,070 | 17,011,306 |
Effect of dilutive potential shares: | ' | ' | ' | ' |
Options | 3,750 | 4,032 | 4,031 | 3,937 |
Nonvested stock | 40,210 | 67,366 | 74,455 | 73,220 |
Adjusted weighted average shares for diluted per share calculation | 17,277,224 | 17,127,017 | 17,268,556 | 17,088,463 |
Anti-dilutive shares | 187,179 | 39,756 | 210,570 | 180,966 |
Acquisitions_and_Disposals_Add
Acquisitions and Disposals - Additional Information (Detail) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
JointVenture | ||
Business Acquisition [Line Items] | ' | ' |
Total purchase price for acquisitions | $65,200,000 | ' |
Cash paid for acquisitions, primarily goodwill and intangible assets | 65,103,000 | 26,920,000 |
Proceeds from sale of additional ownership interests in joint ventures | 200,000 | ' |
Purchase price to acquire additional ownership interests in joint ventures | 95,000 | ' |
Number of joint ventures in which additional ownership interests were acquired | 1 | ' |
Home-based services [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Number of entities acquired | 32 | ' |
Goodwill Recognized | 31,200,000 | ' |
General and Administrative Expense [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Acquisition-related costs | 700,000 | ' |
Hospice-based services [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Number of entities acquired | 5 | ' |
Goodwill Recognized | 3,400,000 | ' |
Deaconess HomeCare, LLC [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business acquisition, net revenues | 17,900,000 | ' |
Business acquisition, net income | $100,000 | ' |
Minimum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Estimated useful life | '2 years | ' |
Maximum [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Estimated useful life | '5 years | ' |
Acquisitions_and_Disposals_Sch
Acquisitions and Disposals - Schedule of Acquired Entities (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
EAMC - Lanier Home Health [Member] | ' |
Business Acquisition [Line Items] | ' |
Ownership Percentage | 75.00% |
State of Operations | 'Alabama |
Acquisition Date | 1-Feb-14 |
Lifeline Home Health [Member] | ' |
Business Acquisition [Line Items] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Kentucky |
Acquisition Date | 1-Feb-14 |
Louisiana Hospice and Palliative Care of New Orleans [Member] | ' |
Business Acquisition [Line Items] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Louisiana |
Acquisition Date | 1-Mar-14 |
West Virginia Home Health [Member] | ' |
Business Acquisition [Line Items] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'West Virginia |
Acquisition Date | 1-Apr-14 |
St. Joseph's Hospice [Member] | ' |
Business Acquisition [Line Items] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'West Virginia |
Acquisition Date | 1-Apr-14 |
North Western Illinois Home Health [Member] | ' |
Business Acquisition [Line Items] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Illinois |
Acquisition Date | 1-Apr-14 |
Deaconess Lifeline Home Health [Member] | ' |
Business Acquisition [Line Items] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Kentucky |
Acquisition Date | 1-Apr-14 |
Deaconess Home Care [Member] | ' |
Business Acquisition [Line Items] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Mississippi |
Acquisition Date | 1-Apr-14 |
Deaconess Home Care 1 [Member] | ' |
Business Acquisition [Line Items] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Tennessee |
Acquisition Date | 1-Apr-14 |
Deaconess Hospice [Member] | ' |
Business Acquisition [Line Items] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Mississippi |
Acquisition Date | 1-Apr-14 |
Elk Valley Health Services LLC [Member] | ' |
Business Acquisition [Line Items] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'Tennessee |
Acquisition Date | 1-Apr-14 |
North Carolina Home Health [Member] | ' |
Business Acquisition [Line Items] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'North Carolina |
Acquisition Date | 1-May-14 |
Professional Nursing Services [Member] | ' |
Business Acquisition [Line Items] | ' |
Ownership Percentage | 100.00% |
State of Operations | 'North Carolina |
Acquisition Date | 1-May-14 |
Acquisitions_and_Disposals_Sch1
Acquisitions and Disposals - Schedule of Aggregate Consideration Paid and Recognized Identified Assets Acquired and Liabilities Assumed (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Consideration | ' | ' |
Cash paid for acquisitions, primarily goodwill and intangible assets | $65,103 | $26,920 |
Fair value of total consideration transferred | 65,103 | ' |
Recognized amounts of identifiable assets acquired and liabilities assumed | ' | ' |
Accounts receivable | 10,821 | ' |
Fixed assets | 379 | ' |
Accounts payable | -1,170 | ' |
Other assets and (liabilities), net | -2,287 | ' |
Total identifiable assets acquired and liabilities assumed | 30,582 | ' |
Noncontrolling interest | 98 | ' |
Goodwill, including noncontrolling interest of $38 | 34,619 | ' |
Certificate of Need/Licenses [Member] | ' | ' |
Recognized amounts of identifiable assets acquired and liabilities assumed | ' | ' |
Business acquisition, purchase price allocation, Intangible Assets | 2,822 | ' |
Trade Names [Member] | ' | ' |
Recognized amounts of identifiable assets acquired and liabilities assumed | ' | ' |
Business acquisition, purchase price allocation, Intangible Assets | 19,680 | ' |
Other identifiable intangible assets [Member] | ' | ' |
Recognized amounts of identifiable assets acquired and liabilities assumed | ' | ' |
Business acquisition, purchase price allocation, Intangible Assets | $337 | ' |
Acquisitions_and_Disposals_Sch2
Acquisitions and Disposals - Schedule of Aggregate Consideration Paid and Recognized Identified Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Business Acquisition [Line Items] | ' |
Noncontrolling interest | $98 |
Home health entity [Member] | ' |
Business Acquisition [Line Items] | ' |
Noncontrolling interest | $38 |
Acquisitions_and_Disposals_Sum
Acquisitions and Disposals - Summary of Unaudited Pro Forma Information in Combined Results of Operations (Detail) (USD $) | 6 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Business Acquisition Pro Forma Information [Abstract] | ' | ' |
Net service revenue | $370,089 | $364,393 |
Net income attributable to LHC Group, Inc.'s common stockholders | $10,104 | $12,574 |
Earnings per share - basic and diluted | $0.59 | $0.74 |
Goodwill_and_Intangibles_Sched
Goodwill and Intangibles - Schedule of Changes in Recorded Goodwill by Reporting Unit (Detail) (USD $) | 6 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Home-Based Reporting unit [Member] | Community-Based Reporting Unit [Member] | Hospice Reporting Unit [Member] | Facility-Based Reporting Unit [Member] | Facility-Based Reporting Unit [Member] | ||
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | $194,893 | $173,574 | $265 | $9,463 | $11,591 | $11,591 |
Goodwill from acquisitions | 34,619 | 14,314 | 16,874 | 3,393 | ' | ' |
Goodwill related to noncontrolling interests | 38 | 38 | ' | ' | ' | ' |
Goodwill related to disposal | -50 | -50 | ' | ' | ' | ' |
Balance at end of period | $229,462 | $187,876 | $17,139 | $12,856 | $11,591 | $11,591 |
Goodwill_and_Intangibles_Summa
Goodwill and Intangibles- Summary of Changes in Intangible Assets (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Finite And Infinite Lived Intangible Assets [Line Items] | ' | ' |
Indefinite-lived assets, carrying amount | $77,715 | $57,247 |
Definite-lived assets, gross carrying amount | 11,719 | 9,455 |
Intangible assets, gross carrying amount | 89,434 | 66,702 |
Definite-lived assets, accumulated amortization | 5,461 | 4,518 |
Intangible assets, accumulated amortization ending balance | -5,461 | -4,518 |
Definite-lived assets, net carrying amount | 6,258 | 4,937 |
Intangible assets, net carrying amount | 83,973 | 62,184 |
Certificate of Need/Licenses [Member] | ' | ' |
Finite And Infinite Lived Intangible Assets [Line Items] | ' | ' |
Indefinite-lived assets, carrying amount | 13,343 | 10,540 |
Minimum [Member] | ' | ' |
Finite And Infinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '2 years | ' |
Maximum [Member] | ' | ' |
Finite And Infinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '5 years | ' |
Trade Names [Member] | ' | ' |
Finite And Infinite Lived Intangible Assets [Line Items] | ' | ' |
Indefinite-lived assets, carrying amount | 64,372 | 46,707 |
Definite-lived assets, gross carrying amount | 7,537 | 5,625 |
Definite-lived assets, accumulated amortization | 1,852 | 1,055 |
Definite-lived assets, net carrying amount | 5,685 | 4,570 |
Trade Names [Member] | Minimum [Member] | ' | ' |
Finite And Infinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '3 months | '3 months |
Trade Names [Member] | Maximum [Member] | ' | ' |
Finite And Infinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '5 years | '5 years |
Non-compete Agreements [Member] | ' | ' |
Finite And Infinite Lived Intangible Assets [Line Items] | ' | ' |
Definite-lived assets, gross carrying amount | 4,158 | 3,830 |
Definite-lived assets, accumulated amortization | 3,609 | 3,463 |
Definite-lived assets, net carrying amount | 549 | 367 |
Non-compete Agreements [Member] | Minimum [Member] | ' | ' |
Finite And Infinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '3 months | '3 months |
Non-compete Agreements [Member] | Maximum [Member] | ' | ' |
Finite And Infinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '2 years | '2 years |
Favorable Leases [Member] | ' | ' |
Finite And Infinite Lived Intangible Assets [Line Items] | ' | ' |
Definite-lived assets, gross carrying amount | 24 | ' |
Definite-lived assets, net carrying amount | $24 | ' |
Favorable Leases [Member] | Minimum [Member] | ' | ' |
Finite And Infinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '1 year | ' |
Favorable Leases [Member] | Maximum [Member] | ' | ' |
Finite And Infinite Lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life | '3 years | ' |
Goodwill_and_Intangibles_Addit
Goodwill and Intangibles - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Intangible assets net of accumulated amortization | $83,973 | $62,184 |
Home-based services [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Intangible assets net of accumulated amortization | 77,300 | ' |
Hospice-based services [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Intangible assets net of accumulated amortization | 5,600 | ' |
Facility-based services [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Intangible assets net of accumulated amortization | $1,000 | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | |||||||||
Jun. 30, 2014 | Jun. 18, 2014 | Dec. 31, 2013 | Jan. 07, 2014 | Jun. 30, 2014 | Jun. 18, 2014 | Jun. 18, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 18, 2014 | Jun. 18, 2014 | Jun. 18, 2014 | Jun. 18, 2014 | Jun. 18, 2014 | Jun. 18, 2014 | |
Promissory Note [Member] | Promissory Note [Member] | Federal Funds Rate [Member] | Eurodollar [Member] | Eurodollar [Member] | Base Rate [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | ||||
Instruments | Eurodollar [Member] | Base Rate [Member] | Eurodollar [Member] | Base Rate [Member] | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum principal borrowing amount | ' | $225,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit, sub-limit amount | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility scheduled to expire | 18-Jun-19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility interest rate | ' | ' | ' | ' | ' | 0.50% | 1.00% | 2.15% | 4.25% | ' | 1.75% | 0.75% | ' | 2.50% | 1.50% |
Line of credit facility, borrowing outstanding | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, description | '(a) the Federal Funds Rate in effect on such day plus 0.5% (b) the Prime Rate in effect on such day and (c) the Eurodollar Rate for a one month interest period on such day plus 1.0%, plus a margin ranging from 0.75% to 1.5% per annum or Eurodollar rate plus a margin ranging from 1.75% to 2.5% per annum. Swing line loans bear interest at the Base Rate. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee rates for unused commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.23% | ' | ' | 0.38% | ' | ' |
Line of credit facility drawn | 69,000,000 | ' | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letter of credit outstanding | 6,700,000 | ' | 6,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available credit under agreement | 149,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Promissory note aggregate principal amount | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Promissory note maturity date | ' | ' | ' | ' | 6-Jan-19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Promissory note principal payment | ' | ' | ' | $20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Promissory note frequency of periodic payment | ' | ' | ' | ' | '60 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Promissory note interest rate percentage | ' | ' | ' | 4.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Income Tax Disclosure [Abstract] | ' |
Tax payable as an unrecognized tax benefit | $3.40 |
Stockholders_Equity_Additional
Stockholder's Equity - Additional Information (Detail) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Stockholders' Equity Note [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 | $23.56 | ' |
Share based award, settled in cash | 2,600 | ' |
Share based payment description | 'The amount of such cash payment will equal the fair market value of 2,600 shares on the settlement date. | ' |
Total unrecognized compensation cost related to nonvested shares of common stock granted | $9,900,000 | ' |
Weighted average period of cost recognized | '3 years 5 months 1 day | ' |
Total fair value of shares of common stock vested | 3,600,000 | 3,600,000 |
Compensation expense related to nonvested stock grants | 2,100,000 | 1,900,000 |
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 | 36,864 | ' |
Treasury shares redeemed to pay income tax | $850,000 | ' |
Director [Member] | ' | ' |
Stockholders' Equity Note [Abstract] | ' | ' |
Non vested stock grants to Independent director | 23,400 | ' |
Director Period of Vested Shares | '1 year | ' |
Employee [Member] | ' | ' |
Stockholders' Equity Note [Abstract] | ' | ' |
Nonvested stock grants to employees | 172,545 | ' |
Shareholders_Equity_Nonvested_
Shareholders' Equity - Nonvested Stock Activity (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Nonvested shares outstanding, Number of Shares, Beginning Balance | 506,467 |
Granted, Number of Shares | 195,945 |
Vested, Number of Shares | -165,349 |
Forfeited, Number of Shares | -2,175 |
Nonvested shares outstanding, Number of Shares, Ending Balance | 534,888 |
Nonvested shares outstanding, Weighted average grant date fair value, Beginning Balance | $22.08 |
Granted, Weighted average grant date fair value | $23.56 |
Vested, Weighted average grant date fair value | $21.92 |
Forfeited, Weighted average grant date fair value | $24.88 |
Nonvested shares outstanding, Weighted average grant date fair value, Ending Balance | $22.56 |
Stockholders_Equity_Shares_of_
Stockholder's Equity - Shares of Common Stock Issued During 2014 Under Employee Stock Purchase Plan (Detail) (USD $) | 3 Months Ended | |
Jun. 30, 2014 | Mar. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Shares available, Beginning balance | ' | 272,788 |
Shares issued during period | 9,887 | 8,025 |
Shares available, Ending Balance | 254,876 | ' |
Shares issued during period, Per share price | $20.96 | $22.84 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Commitments And Contingencies Disclosure [Abstract] | ' |
Settlement amount | $7.90 |
Period of joint venture buy/sell option | '30 days |
Noncontrolling_interest_Summar
Noncontrolling interest - Summary of Activity of Noncontrolling Interest-Redeemable (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Noncontrolling Interest [Abstract] | ' |
Noncontrolling interest-redeemable, Beginning balance | $11,258 |
Net income attributable to noncontrolling interest-redeemable | 2,484 |
Noncontrolling interest-redeemable distributions | -2,611 |
Sale of noncontrolling interest | 32 |
Purchase of noncontrolling interest | 100 |
Noncontrolling interest-redeemable, Ending balance | $11,263 |
Allowance_for_Uncollectible_Ac2
Allowance for Uncollectible Accounts - Allowance for Uncollectible Accounts Activity and Ending Balances (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Allowance For Uncollectible Accounts [Abstract] | ' | ' | ' | ' |
Beginning balance | ' | ' | $14,334 | ' |
Additions | 4,363 | 3,208 | 7,725 | 7,125 |
Deductions | ' | ' | -5,883 | ' |
Ending balance | $16,176 | ' | $16,176 | ' |
Segment_Information_Segment_In
Segment Information - Segment Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ' | ' | ' | ' | ' |
Net service revenue | $188,867 | $166,302 | $352,548 | $328,255 | ' |
Cost of service revenue | 111,527 | 97,009 | 208,861 | 190,257 | ' |
Provision for bad debts | 4,363 | 3,208 | 7,725 | 7,125 | ' |
General and administrative expenses | 59,614 | 54,157 | 114,226 | 105,780 | ' |
Operating income | 13,363 | 11,928 | 21,736 | 25,093 | ' |
Interest expense | -830 | -700 | -1,218 | -1,125 | ' |
Non-operating income | -109 | 65 | -76 | 130 | ' |
Income before income taxes and noncontrolling interest | 12,424 | 11,293 | 20,442 | 24,098 | ' |
Income tax expense | 4,352 | 3,918 | 7,275 | 8,454 | ' |
Net income | 8,072 | 7,375 | 13,167 | 15,644 | ' |
Less net income attributable to noncontrolling interests | 2,011 | 1,585 | 3,038 | 3,568 | ' |
Net income attributable to LHC Group, Inc.'s common stockholders | 6,061 | 5,790 | 10,129 | 12,076 | ' |
Total assets | 497,625 | 415,388 | 497,625 | 415,388 | 422,226 |
Home-based services [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ' | ' | ' | ' | ' |
Net service revenue | 154,260 | 132,638 | 282,940 | 261,714 | ' |
Cost of service revenue | 90,223 | 77,624 | 166,667 | 151,159 | ' |
Provision for bad debts | 4,068 | 2,657 | 6,722 | 5,676 | ' |
General and administrative expenses | 49,612 | 44,624 | 94,156 | 87,046 | ' |
Operating income | 10,357 | 7,733 | 15,395 | 17,833 | ' |
Interest expense | -664 | -567 | -974 | -920 | ' |
Non-operating income | -114 | 35 | -87 | 61 | ' |
Income before income taxes and noncontrolling interest | 9,579 | 7,201 | 14,334 | 16,974 | ' |
Income tax expense | 3,436 | 3,140 | 5,729 | 6,965 | ' |
Net income | 6,143 | 4,061 | 8,605 | 10,009 | ' |
Less net income attributable to noncontrolling interests | 1,537 | 973 | 2,144 | 2,340 | ' |
Net income attributable to LHC Group, Inc.'s common stockholders | 4,606 | 3,088 | 6,461 | 7,669 | ' |
Total assets | 425,254 | 351,657 | 425,254 | 351,657 | ' |
Hospice-based services [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ' | ' | ' | ' | ' |
Net service revenue | 17,068 | 13,906 | 32,290 | 26,817 | ' |
Cost of service revenue | 10,151 | 8,628 | 19,048 | 16,683 | ' |
Provision for bad debts | 93 | 211 | 198 | 469 | ' |
General and administrative expenses | 4,791 | 4,143 | 9,238 | 7,893 | ' |
Operating income | 2,033 | 924 | 3,806 | 1,772 | ' |
Interest expense | -83 | -63 | -122 | -97 | ' |
Non-operating income | 2 | 3 | 5 | 18 | ' |
Income before income taxes and noncontrolling interest | 1,952 | 864 | 3,689 | 1,693 | ' |
Income tax expense | 530 | 413 | 876 | 675 | ' |
Net income | 1,422 | 451 | 2,813 | 1,018 | ' |
Less net income attributable to noncontrolling interests | 335 | 243 | 536 | 475 | ' |
Net income attributable to LHC Group, Inc.'s common stockholders | 1,087 | 208 | 2,277 | 543 | ' |
Total assets | 35,530 | 27,030 | 35,530 | 27,030 | ' |
Facility-based services [Member] | ' | ' | ' | ' | ' |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ' | ' | ' | ' | ' |
Net service revenue | 17,539 | 19,758 | 37,318 | 39,724 | ' |
Cost of service revenue | 11,153 | 10,757 | 23,146 | 22,415 | ' |
Provision for bad debts | 202 | 340 | 805 | 980 | ' |
General and administrative expenses | 5,211 | 5,390 | 10,832 | 10,841 | ' |
Operating income | 973 | 3,271 | 2,535 | 5,488 | ' |
Interest expense | -83 | -70 | -122 | -108 | ' |
Non-operating income | 3 | 27 | 6 | 51 | ' |
Income before income taxes and noncontrolling interest | 893 | 3,228 | 2,419 | 5,431 | ' |
Income tax expense | 386 | 365 | 670 | 814 | ' |
Net income | 507 | 2,863 | 1,749 | 4,617 | ' |
Less net income attributable to noncontrolling interests | 139 | 369 | 358 | 753 | ' |
Net income attributable to LHC Group, Inc.'s common stockholders | 368 | 2,494 | 1,391 | 3,864 | ' |
Total assets | $36,841 | $36,701 | $36,841 | $36,701 | ' |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Supplemental Cash Flow Elements [Abstract] | ' |
Licenses capitalized pay for purchases of property, building and equipment | $1.50 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 6 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 14, 2014 | Jul. 14, 2014 |
Subsequent Event [Member] | Subsequent Event [Member] | |||
States | Home Health Agencies [Member] | |||
Location | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Acquisition price paid in cash | $65,103 | $26,920 | $10,000 | ' |
Number of locations in which the company will add following the close of the acquisition | ' | ' | ' | 14 |
Number of states in which the company will add following the close of the acquisition | ' | ' | 7 | ' |
Expected closing date of acquisition | ' | ' | 1-Sep-14 | ' |