Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | LHCG | ||
Entity Registrant Name | LHC Group, Inc. | ||
Entity Central Index Key | 1,303,313 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 17,972,512 | ||
Entity Public Float | $ 496.8 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 6,139 | $ 531 |
Receivables: | ||
Patient accounts receivable, less allowance for uncollectible accounts of $26,712 and $18,582, respectively | 110,350 | 97,498 |
Other receivables | 2,093 | 1,334 |
Amounts due from governmental entities | 1,081 | 1,164 |
Total receivables, net | 113,524 | 99,996 |
Deferred income taxes | 0 | 11,381 |
Prepaid income taxes | 1,949 | 3,093 |
Prepaid expenses | 10,833 | 8,724 |
Other current assets | 5,835 | 3,777 |
Receivable from Insurance Carrier | 550 | 7,850 |
Total current assets | 138,830 | 135,352 |
Property, building and equipment, net of accumulated depreciation of $38,907 and $44,683, respectively | 38,096 | 34,787 |
Goodwill | 290,694 | 240,019 |
Intangible assets, net of accumulated amortization of $8,496 and $6,560, respectively | 96,405 | 79,685 |
Other assets | 2,029 | 1,896 |
Total assets | 566,054 | 491,739 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 24,586 | 19,278 |
Salaries, wages and benefits payable | 28,098 | 22,466 |
Self insurance reserve | 9,636 | 6,559 |
Current portion of long-term debt | 241 | 230 |
Amounts due to governmental entities | 7,055 | 4,459 |
Legal settlement payable | 550 | 7,850 |
Total current liabilities | 70,166 | 60,842 |
Deferred income taxes | 23,729 | 33,592 |
Income tax payable | 3,415 | 3,415 |
Revolving credit facility | 98,000 | 60,000 |
Long-term debt, less current portion | 543 | 778 |
Total liabilities | 195,853 | 158,627 |
Noncontrolling interest-redeemable | 12,408 | 11,517 |
LHC Group, Inc. stockholders' equity: | ||
Common stock - $0.01 par value: 40,000,000 shares authorized; 22,224,423 and 22,015,211 shares issued in 2015 and 2014, respectively | 222 | 220 |
Treasury stock - 4,776,560 and 4,734,363 shares at cost, respectively | (37,139) | (35,660) |
Additional paid-in capital | 113,793 | 108,708 |
Retained earnings | 277,706 | 245,371 |
Total LHC Group, Inc. stockholders' equity | 354,582 | 318,639 |
Nonredeemable Noncontrolling Interest | 3,211 | 2,956 |
Total stockholders' equity | 357,793 | 321,595 |
Total liabilities and stockholders' equity | $ 566,054 | $ 491,739 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Patient accounts receivable, allowance for uncollectible accounts | $ 26,712 | $ 18,582 |
Property, building and equipment, accumulated depreciation | 38,907 | 44,683 |
Intangible assets, accumulated amortization | $ 8,496 | $ 6,560 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 22,224,423 | 22,015,211 |
Treasury stock at cost, shares | 4,776,560 | 4,734,363 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||||||||||
Net service revenue | $ 218,993 | $ 204,122 | $ 200,172 | $ 193,079 | $ 193,371 | $ 187,713 | $ 188,867 | $ 163,681 | $ 816,366 | $ 733,632 | $ 658,283 |
Cost of service revenue | 480,878 | 434,775 | 383,464 | ||||||||
Gross margin | 90,053 | 83,249 | 83,533 | 78,653 | 80,579 | 74,591 | 77,340 | 66,347 | 335,488 | 298,857 | 274,819 |
Provision for bad debts | 19,243 | 15,780 | 13,929 | ||||||||
General and administrative expenses | 248,629 | 233,945 | 213,633 | ||||||||
Impairment of intangibles and other | 1,273 | 3,646 | 520 | ||||||||
Operating income | 66,343 | 45,486 | 46,737 | ||||||||
Interest expense | (2,302) | (2,486) | (1,995) | ||||||||
Non-operating income | (457) | (265) | (263) | ||||||||
Income from continuing operations before income taxes and noncontrolling interests | 64,498 | 43,265 | 45,005 | ||||||||
Income tax expense | 22,848 | 14,513 | 15,859 | ||||||||
Income from continuing operations | 41,650 | 28,752 | 29,146 | ||||||||
Less net income attributable to noncontrolling interests | 9,315 | 6,915 | 6,804 | ||||||||
Net Income Attributable to LHC Group Inc.'s Common Stockholders | $ 7,735 | $ 8,845 | $ 8,950 | $ 6,805 | $ 5,534 | $ 6,174 | $ 6,061 | $ 4,068 | $ 32,335 | $ 21,837 | $ 22,342 |
Earnings Per Share - Basic: | |||||||||||
Net income attributable to LHC Group, Inc.' common stockholders | $ 0.44 | $ 0.51 | $ 0.51 | $ 0.39 | $ 0.32 | $ 0.36 | $ 0.35 | $ 0.24 | $ 1.86 | $ 1.27 | $ 1.31 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Net income attributable to LHC Group, Inc.' common stockholders | $ 0.44 | $ 0.50 | $ 0.51 | $ 0.39 | $ 0.32 | $ 0.36 | $ 0.35 | $ 0.24 | $ 1.84 | $ 1.26 | $ 1.30 |
Weighted Average Shares Outstanding: | |||||||||||
Basic | 17,447,691 | 17,436,731 | 17,410,971 | 17,322,791 | 17,274,677 | 17,260,078 | 17,233,264 | 17,148,043 | 17,405,379 | 17,229,026 | 17,049,794 |
Diluted | 17,647,483 | 17,610,953 | 17,529,100 | 17,489,483 | 17,419,423 | 17,356,916 | 17,277,224 | 17,268,716 | 17,547,531 | 17,315,333 | 17,132,751 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Non-controlling Interest Non Redeemable [Member] | Total Equity [Member] | Non-Controlling Interest - Redeemable [Member] | Net Income (Loss) [Member] |
Balances, Amount at Dec. 31, 2012 | $ 216 | $ (33,846) | $ 100,619 | $ 201,192 | $ 4,033 | $ 272,214 | $ 11,426 | ||
Balances, Shares at Dec. 31, 2012 | 21,578,772 | 4,653,039 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 22,342 | 1,244 | 23,586 | 5,560 | |||||
Income from continuing operations | $ 29,146 | $ 29,146 | |||||||
Noncontrolling interest | $ 0 | 0 | 608 | ||||||
Noncontrolling interest distributions | (1,060) | (1,060) | (7,066) | ||||||
Purchase of additional controlling interest | (1,267) | (1,267) | (612) | ||||||
Nonvested Stock Compensation | 3,886 | 3,886 | |||||||
Issuance of vested stock | 184,403 | ||||||||
Treasury shares redeemed to pay income tax | $ (869) | (869) | |||||||
Treasury shares redeemed to pay income tax, shares | (40,608) | (40,608) | |||||||
Excess tax benefits-vesting nonvested stock | (50) | (50) | |||||||
Issuance of common stock under Employee Stock Purchase Plan | $ 2 | 784 | 786 | ||||||
Shares Issued during Period (Shares) | 38,459 | 38,459 | |||||||
Transfer of noncontrolling interest | (1,342) | (1,342) | 1,342 | ||||||
Balances, Amount at Dec. 31, 2013 | $ 218 | $ (34,715) | 103,972 | 223,534 | 2,875 | 295,884 | 11,258 | ||
Balances, Shares at Dec. 31, 2013 | 21,801,634 | 4,693,647 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 21,837 | 1,214 | 23,051 | 5,701 | |||||
Income from continuing operations | $ 28,752 | 28,752 | |||||||
Noncontrolling interest | 138 | 138 | 130 | ||||||
Noncontrolling interest distributions | (1,271) | (1,271) | (5,572) | ||||||
Purchase of additional controlling interest | (359) | (359) | 0 | ||||||
Sale of noncontrolling interest | 161 | 161 | |||||||
Nonvested Stock Compensation | 4,094 | 4,094 | |||||||
Issuance of vested stock | 177,272 | ||||||||
Treasury shares redeemed to pay income tax | $ (945) | (945) | |||||||
Treasury shares redeemed to pay income tax, shares | (40,716) | (40,716) | |||||||
Excess tax benefits-vesting nonvested stock | 60 | 60 | |||||||
Issuance of common stock under Employee Stock Purchase Plan | $ 2 | 780 | 782 | ||||||
Shares Issued during Period (Shares) | 36,305 | 36,305 | |||||||
Balances, Amount at Dec. 31, 2014 | $ 321,595 | $ 220 | $ (35,660) | 108,708 | 245,371 | 2,956 | 321,595 | 11,517 | |
Balances, Shares at Dec. 31, 2014 | 22,015,211 | 4,734,363 | |||||||
Ending Balance, Treasury Shares at Dec. 31, 2014 | (4,734,363) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 32,335 | 1,737 | 34,072 | 7,578 | |||||
Income from continuing operations | $ 41,650 | $ 41,650 | |||||||
Noncontrolling interest | 155 | 155 | 0 | ||||||
Noncontrolling interest distributions | (1,637) | (1,637) | (6,687) | ||||||
Stock options exercised, Shares | 9,500 | 9,500 | |||||||
Stock options exercised | 144 | 144 | |||||||
Purchase of additional controlling interest | (275) | (275) | |||||||
Nonvested Stock Compensation | 4,225 | 4,225 | |||||||
Issuance of vested stock | 176,989 | ||||||||
Treasury shares redeemed to pay income tax | $ (1,479) | (1,479) | |||||||
Treasury shares redeemed to pay income tax, shares | (42,197) | (42,197) | |||||||
Excess tax benefits-vesting nonvested stock | (211) | (211) | |||||||
Issuance of common stock under Employee Stock Purchase Plan | $ 2 | 780 | 782 | ||||||
Shares Issued during Period (Shares) | 22,723 | 22,723 | |||||||
Balances, Amount at Dec. 31, 2015 | $ 357,793 | $ 222 | $ (37,139) | $ 113,793 | $ 277,706 | $ 3,211 | $ 357,793 | $ 12,408 | |
Balances, Shares at Dec. 31, 2015 | 22,224,423 | 4,776,560 | |||||||
Ending Balance, Treasury Shares at Dec. 31, 2015 | (4,776,560) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Income from continuing operations | $ 41,650 | $ 28,752 | $ 29,146 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and Amortization Expense | 11,955 | 9,571 | 8,325 |
Provision for bad debts | 19,243 | 15,780 | 13,929 |
Stock-based compensation expense | 4,225 | 4,094 | 3,886 |
Deferred income taxes | 1,518 | 2,402 | 2,351 |
Impairment of intangibles and other | 1,990 | 3,650 | 520 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Receivables | (27,951) | (16,372) | (18,961) |
Prepaid expenses and other assets | (3,793) | 191 | (749) |
Prepaid income taxes | 441 | 911 | 3,299 |
Accounts payable and accrued expenses | 10,526 | (10,460) | 4,395 |
Net amounts due to/from governmental entities | 130 | 138 | (226) |
Net cash provided by (used in) operating activities | 59,934 | 38,657 | 45,915 |
Investing activities | |||
Cash paid for acquisitions, primarily goodwill and intangible assets | (70,572) | (73,933) | (26,920) |
Purchases of property, building and equipment | (13,283) | (8,105) | (8,343) |
Net cash (used in) investing activities | (83,855) | (82,038) | (35,263) |
Financing activities | |||
Proceeds from line of credit | 83,000 | 75,000 | 73,000 |
Payments on line of credit | (45,000) | (37,000) | (70,500) |
Excess tax benefits from vesting of restricted stock | 914 | 124 | 18 |
Proceeds from issuance of common stock under ESPP | 782 | 782 | 786 |
Proceeds from debt issuance | 0 | 0 | 1,212 |
Payments on debt | (233) | (202) | 0 |
Noncontrolling interest distributions | (8,324) | (6,843) | (8,126) |
Payments of deferred financing fees | 0 | (852) | 0 |
Purchase of Additional Controlling Interest | (275) | (359) | (1,879) |
Sale of noncontrolling interest | 0 | 193 | 0 |
Redemption of treasury stock to pay income tax | (1,479) | (945) | (869) |
Proceeds from Stock Options Exercised | 144 | 0 | 0 |
Net cash provided by (used in) financing activities | 29,529 | 29,898 | (6,358) |
Change in cash | 5,608 | (13,483) | 4,294 |
Cash at beginning of period | 531 | 14,014 | |
Cash at end of period | 6,139 | 531 | 14,014 |
Supplemental disclosures of cash flow information | |||
Interest paid | 1,870 | 2,461 | 1,961 |
Income taxes paid | $ 20,361 | $ 11,781 | $ 21,606 |
CONSOLIDATED STATEMENTS OF CAS7
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Licenses capitalized pay for purchases of property, building and equipment | $ 2,700 |
Treasury Stock [Member] | |
Treasury shares redeemed to pay income tax | $ 1,479 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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 health services, hospice services, community-based services, and facility-based services, the latter primarily through long-term acute care hospitals ("LTACHs"). As of December 31, 2015 , the Company, through its wholly and majority-owned subsidiaries, equity joint ventures and controlled affiliates, operated 363 service providers in 25 states within the continental United States. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“US 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. The most significant estimates relate to revenue recognition, collectability of accounts receivable and impairment tests of goodwill and other indefinite-lived intangible assets. A description of the significant accounting policies and a discussion of the significant estimates and judgments associated with such policies are described below. Principles of Consolidation The consolidated financial statements include all subsidiaries and entities controlled by the Company. Control is defined by the Company as ownership of a majority of the voting interest of an entity. Third party equity interests in the consolidated joint ventures are reflected as noncontrolling interests in the Company’s consolidated financial statements. The following table summarizes the percentage of net service revenue earned by type of ownership or relationship the Company had with the operating entity for the periods presented for the years ending December 31: Ownership type 2015 2014 2013 Wholly owned subsidiaries 55.2 % 53.5 % 48.8 % Equity joint ventures 42.9 43.9 48.5 License leasing arrangements 1.0 1.8 1.9 Management services 0.9 0.8 0.8 100.0 % 100.0 % 100.0 % All significant inter-company accounts and transactions have been eliminated in consolidation. All business combinations accounted for as purchases have been included in the consolidated financial statements from the respective dates of acquisition. The following discussion describes the Company’s consolidation policy with respect to its various ventures excluding wholly owned subsidiaries: Equity Joint Ventures A majority of the Company’s equity joint ventures are structured as limited liability companies in which the Company typically owns a majority equity interest ranging from 51% to 91% . Each member of all but one of the Company’s equity joint ventures participates in profits and losses in proportion to their equity interests. The Company has one equity joint venture partner whose participation in losses is limited. The Company consolidates these entities as the Company has the obligation to absorb losses of the entities and the right to receive benefits from the entities and generally has voting control over the entities. License Leasing Arrangements The Company, through wholly owned subsidiaries, leases home health licenses necessary to operate certain of its home nursing and hospice agencies. As with 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 operations of certain agencies and facilities. The Company does not consolidate these agencies or facilities, as the Company does not have an ownership interest and does not have an obligation to absorb losses of the entities or the right to receive the benefits from the entities other than management fees. Revenue Recognition The Company reports net service revenue at the estimated net realizable amount due from Medicare, Medicaid and others for services rendered. The Company assesses the patient's ability to pay for their healthcare services at the time of patient admission based on the Company's verification of the patient's insurance coverage under the Medicare, Medicaid and other commercial or managed care insurance programs. All such payors contribute to the net service revenue of the Company's home health 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 years ending December 31: Payor 2015 2014 2013 Medicare 74.5 % 75.9 % 79.8 % Medicaid 1.5 1.4 1.4 Other 24.0 22.7 18.8 100.0 % 100.0 % 100.0 % The percentage of net service revenue contributed from each reporting segment was as follows for the years ending December 31: Segment 2015 2014 2013 Home health services 75.1 % 77.0 % 79.5 % Hospice services 10.5 9.2 8.5 Community-based services 5.1 3.8 0.5 Facility-based services 9.3 10.0 11.5 100.0 % 100.0 % 100.0 % Medicare Home Health Services The Company’s home nursing Medicare patients are classified into one of 153 home health resource groups prior to receiving services. Based on this 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. Management estimates the impact of these payment adjustments based on historical experience and records this estimate during the period the services are rendered. The Company’s payment is also adjusted for geographic wage differences. In calculating the Company’s reported net service revenue from home nursing services, the Company adjusts the prospective Medicare payments by an estimate of the 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 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 programs 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. Beginning with cap year ended October 1, 2014, CMS implemented a new process requiring hospice providers to self-report their cap liabilities and remit applicable payment by March 31 of the following year. Facility-Based Services Long-Term Acute Care Services. The Company is reimbursed by Medicare for services provided under the long-term acute care hospital (“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. Managed care and other payors reimburse the Company in a manner similar to either Medicare or Medicaid. Accordingly, the Company recognizes revenue from managed care and other payors in the same manner as the Company recognizes revenue from Medicare or Medicaid. Management Services The Company records management services revenue as services are provided in accordance with the various management services agreements to which the Company is a party. As described in the management services agreements, the Company provides billing, management and other consulting services suited to and designed for the efficient operation of the applicable home nursing agency. The Company is responsible for the costs associated with the locations and personnel required for the provision of services. The Company is compensated based on a percentage of cash collections for one management service agreement and reimbursed for operating expenses plus a percentage of operating net income for two management service agreements. 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, Medicaid, 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. Because Medicare is the Company’s primary payor, the credit risk associated with receivables from other payors is limited. The Company believes the credit risk associated with its Medicare accounts, which have historically exceed 55.0% 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 significant concentrations of receivables from any particular payor that would subject it to any significant credit risk in the collection of accounts receivable. The amount of 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 that 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 RAPs received for that episode will be recouped by Medicare from any other Medicare claims in process for that particular provider. The RAP and final claim must then be resubmitted. For subsequent episodes of care contiguous with the first episode for a particular patient, the Company submits a RAP for 50% instead of 60% of the estimated reimbursement. The Company’s Medicare population is paid at a prospectively set amount that can be determined at the time services are rendered. The Company’s Medicaid reimbursement is based on a predetermined fee schedule applied to each individual service we provide. The Company’s managed care contracts are structured similar to either the Medicare or Medicaid payment methodologies. Because of its payor mix, the Company is able to calculate its actual amount due at the patient level and adjust the gross charges down to the actual amount at the time of billing. This negates the need to record an estimated contractual allowance when reporting net service revenue for each reporting period. Business Combination The Company accounts for business combinations using the acquisition method. The assets typically acquired consist primarily of Medicare licenses, trade names, certificates of need and/or a non-compete agreement. The assets acquired and liabilities assumed, if any, are measured at fair value on the acquisition date using the appropriate valuation method. The noncontrolling interest associated with joint venture acquisitions is also measured and recorded at fair value as of the acquisition date. The residual purchase price is recorded as goodwill. The operations of the acquisitions are included in the consolidated financial statements from their respective dates of acquisition. Goodwill and Intangible Assets The Company performs its annual impairment review of goodwill at November 30, and when a triggering event occurs between annual impairment tests. For 2015, the Company performed a qualitative assessment of goodwill and determined that it is not more likely than not that the fair values of its reporting units are less than the carrying amounts. The Company has not recognized any goodwill impairment charges in 2015, 2014 or 2013 related to the annual impairment testing. During the twelve months ended December 31, 2015 and 2014, the Company recognized a disposal of $0.4 million and $0.2 million , respectively, of goodwill associated with the closure of underperforming locations. Included in intangible assets are definite-lived assets subject to amortization such as non-compete agreements and defensive assets, which are defined as trade names that are not actively used. Amortization of definite-lived intangible assets is calculated on a straight-line basis over the estimated useful lives of the related assets, ranging from two to five years. The Company also has indefinite-lived assets that are not subject to amortization expense such as trade names, certificates of need and licenses to conduct specific operations within geographic markets. The Company has concluded that trade names, certificates of need and licenses have indefinite lives, because there are no legal, regulatory, contractual, economic or other factors that would limit the useful life of these intangible assets and the Company intends to renew and operate the certificates of need and licenses and use the trade names indefinitely. These indefinite-lived intangible assets are reviewed annually for impairment or more frequently if circumstances indicate impairment may have occurred. To determine whether an indefinite-lived intangible asset is impaired, the Company performs a qualitative assessment to support the conclusion that the indefinite-lived intangible asset is not impaired. Based on the results of that qualitative assessment, the Company may perform a quantitative test. The Company utilizes a relief-from-royalty method in its quantitative impairment test of trade names. Under this method, the fair value of the trade name is determined by calculating the present value of the after-tax cost savings associated with owning the trade names and, therefore, not having to pay royalties for use over its estimated useful life. The Company utilizes the replacement cost approach in its quantitative impairment test for certificates of need and licenses. Under this method, assumptions are made about the cost to replace the certificates of need and licenses. During the twelve months ended December 31, 2015, 2014 and 2013, the Company recorded impairment charges related to indefinite-lived intangible assets of $0.6 million , $2.0 million and $0.5 million , respectively. During the twelve months ended December 31, 2015 and 2014, the Company recognized $0.3 million and $1.4 million , respectively, of disposal costs related to other indefinite-lived intangible assets associated with the closure of underperforming locations. Due to/from Governmental Entities The Company’s LTACHs are reimbursed for certain activities based on tentative rates. The amounts recorded in due to/from governmental entities on the Company’s consolidated balance sheets relate to settled and open cost reports that are subject to the completion of audits and the issuance of final assessments. Final reimbursement is determined based on submission of annual cost reports and audits by the fiscal intermediary. Adjustments are accrued on an estimated basis in the period the related services were rendered and further adjusted as final settlements are determined. These adjustments are accounted for as changes in estimates. Additionally, reimbursements received in excess of hospice cap amounts are recorded in this account. Property, Building and Equipment Property, building and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the individual assets. The estimated useful life of buildings is 39 years , while the estimated useful lives of transportation equipment and furniture and other equipment range from 3 to 10 years . The useful life for leasehold improvements is the shorter of the lease term or the expected life of the leasehold improvement. Assets that are sold or retired are written off and any gain or losses are recorded in operating income. Routine repairs and maintenance costs are expensed as incurred. Property, building and equipment are reviewed whenever events or changes in circumstances occur that indicate possible impairment. There were no impairments recognized during the periods ended December 31, 2015 , 2014 or 2013 . The following table describes the Company’s components of property, building and equipment for the years ended December 31, 2015 and 2014 (amounts in thousands): 2015 2014 Land $ 2,033 $ 543 Building and improvements 10,026 9,238 Transportation equipment 6,912 6,191 Fixed equipment 3,373 3,661 Office furniture and medical equipment 54,659 59,837 77,003 79,470 Less accumulated depreciation 38,907 44,683 $ 38,096 $ 34,787 Depreciation expense for the years ended December 31, 2015 , 2014 and 2013 was $10.0 million , $7.5 million and $6.9 million , respectively, which was recorded in general and administrative expenses. Noncontrolling Interest The nonredeemable interest held by third parties in subsidiaries owned or controlled by the Company is reported on the consolidated balance sheets as noncontrolling interest as a component of stockholders’ equity. Redeemable interest held by third parties in subsidiaries owned or controlled by the Company is reported on the consolidated balance sheets outside of permanent equity. All noncontrolling interest reported in the consolidated statements of income reflects the respective interests in the income or loss after income taxes of the subsidiaries attributable to the other parties, the effect of which is removed from the net income attributable to the Company. Stock-Based Compensation The Company grants restricted stock or restricted stock units to employees and members of its Board of Directors as a form of compensation. The expense for such awards is based on the grant date fair value of the award and is recognized on a straight-line basis over the requisite service period. See Note 7 to these consolidated financial statements. Earnings Per Share The following table sets forth shares used in the computation of basic and diluted per share information for the years ended December 31, 2015 , 2014 and 2013 : 2015 2014 2013 Weighted average number of shares outstanding for basic per share calculation 17,405,379 17,229,026 17,049,794 Effect of dilutive potential shares: Options 3,663 4,284 4,058 Nonvested restricted stock 138,488 82,023 78,899 Adjusted weighted average shares for diluted per share calculation 17,547,531 17,315,333 17,132,751 Antidilutive shares 200,525 173,360 182,225 Recently Issued Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-9, Revenue from Contracts with Customers, ("ASU 2014-9") 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. ASU 2014-9 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 adoption 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 2014-9 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. On November 20, 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, ("ASU 2015-17") which requires an entity with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The new standard is effective for the Company on January 1, 2017; however, early adoption is permitted. The Company is electing to early adopt the new standard effective December 31, 2015. The standard permits the use of prospective transition and, as such, prior periods were not adjusted in the Company's financial statements. |
Acquisitions and Disposals
Acquisitions and Disposals | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and Disposals | 3. Acquisitions and Disposals 2015 Acquisitions On October 1, 2015, the Company acquired 100% of the membership interests of Halcyon Healthcare, LLC ("Halcyon"). Halcyon has 16 hospice locations throughout Alabama, Mississippi, and South Carolina. On November 11, 2015, the Company acquired 100% of the assets of Nurses' Registry and Home Health Corporation, LLC ("Nurses Registry"). Nurses Registry has five locations, four home health agencies and one community-based services agency, located in Kentucky. The goodwill associated with Halcyon and Nurses Registry was $47.2 million . In addition, the Company acquired the majority-ownership of five home health agencies, one hospice agency, and one community-based services agency during the twelve months ended December 31, 2015. The total aggregate purchase prices for the Company's acquisitions were $71.4 million , of which $70.1 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 $0.4 million in acquisition-related costs, which was recorded in general and administrative expenses. The Company’s home health services segment, hospice services segment, and community-based services segment recognized aggregate goodwill of $7.1 million , $43.3 million , and $0.6 million , respectively. 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 acquisitions were accounted for under the acquisition method of accounting, and, accordingly, the accompanying financial information includes the results of operations of the acquired entities from the dates of acquisition. 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 their fair value at the acquisition dates and the noncontrolling interest acquired (amounts in thousands): Consideration Cash $ 70,123 Fair value of total consideration transferred 70,123 Recognized amounts of identifiable assets acquired and liabilities assumed Trade name 6,530 Certificates of needs/licenses 11,609 Other identifiable intangible assets 953 Cash 700 Accounts receivable 4,202 Fixed assets 521 Accounts payable (1,389 ) Other assets and (liabilities), net (3,937 ) Total identifiable assets 19,189 Noncontrolling interest 152 Goodwill, including noncontrolling interest of $36 $ 51,086 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. Trade names are valued using the relief from royalty method, a form of the income approach. Certificates of needs are valued using the replacement cost approach based on registration fees and opportunity costs. Licenses are valued based on the estimated direct costs associated with recreating the asset, including opportunity costs based on an income approach. In the case of states with a moratorium in place, the licenses are valued using the multi period excess earnings method. The other identifiable assets include non-compete agreements that are amortized over the life of the agreements, ranging from one to three years . Noncontrolling interest is valued at fair value by applying a discount to the value of the acquired entity for lack of control. The Company has conducted a preliminary assessment of deferred income tax accounting and the calculation of the final net working capital adjustment and has recognized provision amounts in it is initial accounting for the acquisition of Halcyon for all identified liabilities in accordance with the requirements of ASC Topic 805. However, the Company is continuing its review of these matters during the measurement period, and if new information obtained about facts and circumstances that existed at the acquisition date identified adjustments to the assets and liabilities initially recognized, the acquisition accounting will be revised to reflect the resulting adjustments to the provisional amounts initially recognized. The following table contains unaudited pro forma consolidated income statement information assuming the 2015 acquisitions closed January 1, 2014 (amount in thousands, except earnings per share): 2015 2014 Net service revenue $ 868,075 $ 789,761 Operating income 67,520 45,671 Net income 33,044 21,949 Basic earnings per share 1.90 1.27 Diluted earnings per share 1.88 1.27 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. 2014 Acquisitions The total aggregate purchase price for the Company’s acquisitions, which closed in the twelve months ended December 31, 2014, was $75.5 million , of which $73.9 million was paid in cash. The purchase prices are determined based on an analysis of comparable acquisitions and the target market’s potential future cash flows. The company paid $1.0 million in acquisition-related costs, which was recorded in general and administrative expenses. The Company’s home health services segment, hospice services segment, and community-based services segment recognized aggregate goodwill of $22.9 million , $5.3 million , and $17.1 million , respectively. 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. |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles, Net | The following table summarizes changes in goodwill by reporting unit during the twelve months ended December 31, 2015 and 2014 (amounts in thousands): Home health reporting unit Hospice reporting unit Community- based reporting unit Facility-based reporting unit Total Balance as of December 31, 2013 $ 173,574 $ 9,463 $ 265 $ 11,591 $ 194,893 Goodwill from acquisitions 22,809 5,330 17,074 — 45,213 Goodwill related to noncontrolling interests 113 — — — 113 Goodwill related to disposal (200 ) — — — (200 ) Balance as of December 31, 2014 $ 196,296 $ 14,793 $ 17,339 $ 11,591 $ 240,019 Goodwill from acquisitions 7,069 43,343 638 — 51,050 Goodwill related to noncontrolling interests 14 — 22 — 36 Goodwill related to disposal (384 ) — (27 ) — (411 ) Balance as of December 31, 2015 $ 202,995 $ 58,136 $ 17,972 $ 11,591 $ 290,694 The Company determined that there was no impairment for the goodwill of any reporting units as of December 31, 2015, 2014 and 2013 based on the Company's annual impairment testing; however, the Company did record $0.4 million and $0.2 million of disposal of goodwill during the years ended December 31, 2015 and 2014, respectively, due to the closure of underperforming locations. This was recorded in impairment of intangibles and other. The Company performed an impairment analysis on its indefinite-lived intangible assets related to the Company's trade names, licenses and certificates of need to determine the fair values as of November 30, 2015 and 2014. Lower revenue expectations caused by payor contract changes and projected Medicare reimbursement cuts reduced the fair values of certain intangible assets below their carrying values. Based on that analysis, the Company recorded an impairment charge of $0.6 million , $2.0 million , and $0.5 million for the years ended December 31, 2015, 2014 and 2013, respectively, which was recorded in impairment of intangibles and other. The following tables summarize the changes in intangible assets during the twelve months ended December 31, 2015 and 2014 (amounts in thousands): December 31, 2015 Remaining useful life Gross carrying amount Accumulated amortization Net carrying amount Indefinite-lived assets : Trade names Indefinite $ 60,762 $ — $ 60,762 Certificates of need/licenses Indefinite 29,807 — 29,807 Total 90,569 — 90,569 Amortizing assets: Trade names 2 months – 5 years 8,985 (4,385 ) 4,600 Non-compete agreements 3 months – 2 years 5,347 (4,111 ) 1,236 Total 14,332 (8,496 ) 5,836 Balance at December 31, 2015 $ 104,901 $ (8,496 ) $ 96,405 December 31, 2014 Remaining useful life Gross carrying amount Accumulated amortization Net carrying amount Indefinite-lived assets : Trade names Indefinite $ 54,732 $ — $ 54,732 Certificates of need/licenses Indefinite 19,058 — 19,058 Total $ 73,790 $ — $ 73,790 Amortizing assets: Trade names 2 months – 5 years $ 8,230 $ (2,797 ) $ 5,433 Non-compete agreements 3 months – 3 years 4,225 (3,763 ) 462 Total 12,455 (6,560 ) 5,895 Balance at December 31, 2014 $ 86,245 $ (6,560 ) $ 79,685 Intangible assets of $66.4 million , net of accumulated amortization, related to the home health services segment, $21.8 million related to the hospice segment, $7.3 million related to the community-based services segment and $0.9 million related to the facility-based services segment as of December 31, 2015. Amortization for the years ended December 31, 2015 , 2014 and 2013 was $1.9 million , $2.1 million and $1.5 million , respectively, which was recorded in general and administrative expenses. Disposal of Intangible Assets in Company ’ s Subsidiary During the twelve months ended December 31, 2015 and 2014, the Company disposed of intangible assets for underperforming providers in the home health segment. The loss on the disposal of these providers was $0.3 million and $1.4 million , respectively, which was recorded in impairment of intangibles and other. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 5. Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred taxes are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax laws that will be in effect when the differences are expected to reverse. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2015 and 2014 were as follows (amounts in thousands): 2015 2014 Deferred tax assets: Allowance for uncollectible accounts $ 9,048 $ 6,397 Accrued employee benefits 5,260 4,195 Stock compensation 1,068 1,228 Accrued self-insurance 2,517 2,526 Acquisition costs 1,651 1,510 Net operating loss carry forward 983 927 Intangible asset impairment 43 49 Uncertain tax position—state tax portion 215 215 Uncertain tax position - interest expense 254 186 Other 93 121 Valuation allowance (44 ) (44 ) Deferred tax assets $ 21,088 $ 17,310 Deferred tax liabilities: Amortization of intangible assets (35,355 ) (29,370 ) Tax depreciation in excess of book depreciation (8,201 ) (7,994 ) Prepaid expenses (655 ) (697 ) Non-accrual experience accounting method (606 ) (1,459 ) Deferred tax liabilities (44,817 ) (39,520 ) Net deferred tax liability $ (23,729 ) $ (22,210 ) Based on the Company’s historical pattern of taxable income, the Company believes it will produce sufficient income in the future to realize its deferred income tax assets. Management provides a valuation allowance for any net deferred tax assets when it is more likely than not that a portion of such net deferred tax assets will not be recovered. The components of the Company’s income tax expense from continuing operations, less noncontrolling interest, were as follows (amounts in thousands): 2015 2014 2013 Current: Federal $ 18,094 $ 10,195 $ 11,962 State 3,232 1,916 1,546 21,326 12,111 13,508 Deferred: Federal 1,389 2,187 1,448 State 133 215 903 1,522 2,402 2,351 Total income tax expense $ 22,848 $ 14,513 $ 15,859 A reconciliation of the difference between the federal statutory tax rate and the Company's effective tax rate for income taxes for each period is as follows: 2015 2014 2013 Federal statutory tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 3.9 3.5 3.5 Nondeductible expenses 2.5 2.3 3.1 Credits and other — (0.9 ) — Effective tax rate 41.4 % 39.9 % 41.6 % A reconciliation of the differences between income tax expense on net income attributable to the Company, computed at the federal statutory rate and provisions for income taxes for each period is as follows (amounts in thousands): 2015 2014 2013 Income taxes computed at federal statutory tax rate $ 19,314 $ 12,723 $ 13,360 State income taxes, net of federal benefit 2,184 1,407 1,641 Nondeductible expenses 1,352 766 1,022 Other items 278 (99 ) 101 Income tax credits (280 ) (284 ) (265 ) Total income tax expense $ 22,848 $ 14,513 $ 15,859 The Company is subject to both federal tax and state income tax for jurisdictions within which it operates. Within these jurisdictions, the Company is open to examination for tax years ended after December 31, 2011. As of December 31, 2015, $3.4 million was recorded in income tax payable as an unrecognized tax benefit 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 31, 2014, the Internal Revenue Service ("IRS") issued a notice of proposed adjustment asserting that a portion of the original tax deduction claimed by the Company associated with the settlement of the United States of America should be disallowed. The Company is currently appealing this proposed adjustment with the IRS Appeals. The Company intends to vigorously defend its original position of the deductibility of the full settlement on its 2011 tax return. A reconciliation of the total amounts of unrecognized tax benefits follows (amounts in thousands): Total unrecognized tax benefits as of December 31, 2014 $ 3,415 Increases (decreases) in unrecognized tax benefits as a result of: Tax positions taken during the current period — Total unrecognized tax benefits as of December 31, 2015 $ 3,415 The Company recognizes interest and penalties related to uncertain tax positions in interest expense and general and administrative expenses, respectively. During the years ended December 31, 2015, 2014 and 2013, the Company recognized $0.2 million each year in interest expense, and recorded an accrued liability of interest payments related to uncertain tax positions. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 6. 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 expiration date of the Credit Agreement is June 18, 2019 . Revolving loans under the Credit Agreement bear interest at either a (1) 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 (2) Eurodollar rate plus a margin ranging from 1.75% to 2.5% per annum. Swing line loans bear interest at the Base Rate. Borrowings under a Base Rate or Eurodollar Rate may be outstanding at any time; however, there shall not be more than 15 Eurodollar borrowings outstanding at any given 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 December 31, 2015 was 4.50% and the Eurodollar rate was 2.42% . As of December 31, 2015 , the interest rate on outstanding borrowings was 2.24% . As of December 31, 2015 the Company had $98.0 million drawn and letters of credit in the amount of $9.8 million outstanding under the credit facility. At December 31, 2014 , the Company had $60.0 million drawn and letters of credit in the amount of $7.1 million outstanding under the credit facility. The scheduled principal payments on long-term debt for each of the five years subsequent to December 31, 2015 is as follows (amounts in thousands): Year Principal payment amount 2016 $ 241 2017 256 2018 260 2019 98,027 2020 — Total $ 98,784 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 7. Stockholders’ Equity Stock Repurchase Program In October 2010, the Company’s Board of Directors authorized a program to repurchase shares of the Company’s common stock, par value $0.01 per share, from time to time, in an amount not to exceed $50.0 million (“Stock Repurchase Program”). During the twelve months ended December 31, 2015, 2014 and 2013, no shares were repurchased. In accordance with the terms of the Stock Repurchase Program, it expired on September 4, 2015. Equity Based Awards At the Company’s 2010 Annual Meeting of Stockholders, the stockholders of the Company approved the Company’s 2010 Long Term Incentive Plan (the “2010 Incentive Plan”). The 2010 Incentive Plan is administered by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”). A total of 1,500,000 shares of the Company’s common stock are reserved and 491,037 shares are 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. The Compensation Committee will determine the exercise price for non-statutory stock options, which cannot be less than the fair market value of the Company's common stock as of the date of grant. In the event of a change of control as defined in the 2010 Incentive Plan, all restricted periods and restrictions imposed on non-performance based restricted stock awards will lapse and outstanding options will become immediately exercisable in full. Share Based Compensation Stock Options The following table represents stock options activity for the year ended December 31, 2015: Number of Shares Weighted Average Exercise Price Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at January 1, 2015 15,000 $ 16.88 1.0 year $ 214,575 Options granted — — — — Options exercised (9,500 ) 15.21 — — Options forfeited or expired — — — — Options outstanding at December 31, 2015 5,500 $ 20.09 0.5 years $ — Options exercisable at December 31, 2015 5,500 $ 20.09 0.5 years $ 140,470 All options are fully vested and exercisable at December 31, 2015. There were no options granted and no compensation expense related to stock options grants recorded in the years ended December 31, 2015, 2014 or 2013. Nonvested Stock The Company issues stock-based compensation to employees in the form of nonvested stock, which is an award of common stock subject to certain restrictions. The awards, which the Company calls nonvested shares, generally vest over a five year period, conditioned on continued employment for the full incentive period. Compensation expense for the nonvested stock is recognized for the awards that are expected to vest. The expense is based on the fair value of the awards on the date of grant recognized on a straight-line basis over the requisite service period, which generally relates to the vesting period. During 2015, 2014 and 2013, respectively, 182,865 , 172,545 and 198,243 nonvested shares were granted to employees pursuant to the 2010 Incentive Plan. The Company also issues nonvested stock to its independent directors of the Company’s Board of Directors. During 2015, 2014 and 2013, respectively, 16,200 , 26,900 and 24,300 nonvested shares of stock were granted to the independent directors under the 2005 Director Compensation Plan. The shares issued under the 2005 Director Compensation Plan were drawn from the 1,500,000 shares reserved for issuance under the 2010 Incentive Plan. The shares fully vest one year from the date of the grant, except for grants provided to new directors, which vest one-third on the date of grant and one-third on each of the first two anniversaries of the grant date. The fair value of nonvested shares is determined based on the closing trading price of the Company’s shares on the grant date. The weighted average grant date fair values of nonvested shares granted during the years ended December 31, 2015, 2014 and 2013 were $34.06 , $23.59 and $21.45 , respectively. The following table represents the nonvested stock activity for the year ended December 31, 2015: Number of Shares Weighted Average Grant Date Fair Value Nonvested shares outstanding at January 1, 2015 524,287 $ 22.56 Granted 199,065 34.06 Vested (177,887 ) 23.28 Forfeited (18,374 ) 20.57 Nonvested shares outstanding at December 31, 2015 527,091 $ 26.64 As of December 31, 2015, there was $9.5 million of total unrecognized compensation cost related to non-vested shares granted. That cost is expected to be recognized over the weighted average period of 2.96 years . The total fair value of shares vested in the year ended December 31, 2015 was $4.1 million and the total fair value of shares vested in the years December 31, 2014 and 2013 was $3.9 million each. The Company records compensation expense related to non-vested share awards at the grant date for shares that are awarded fully vested and over the vesting term on a straight line basis for shares that vest over time. The Company has recorded $4.2 million , $4.1 million and $3.9 million in compensation expense related to non-vested stock grants in the years ended December 31, 2015, 2014 and 2013, respectively. Employee Stock Purchase Plan In 2006, the Company adopted the Employee Stock Purchase Plan allowing eligible employees to purchase the Company’s common stock at 95% of the market price on the last day of each calendar quarter. There were 250,000 shares reserved for the plan. On June 20, 2013, the Amended and Restated Employee Stock Purchase Plan was approved by the Company’s stockholders. As a result of the amendment, the Employee Stock Purchase Plan was modified as follows: • An additional 250,000 shares of common stock were authorized for issuance over the term of the Employee Stock Purchase Plan. • The term of the Employee Stock Purchase Plan was extended from January 1, 2016 to January 1, 2023. The following table represents the shares issued during 2015, 2014 and 2013 under the Employee Stock Purchase Plan: Number of Shares Weighted Average Per Share Price Shares available as of January 1, 2012 61,247 Additional shares authorized for issuance 250,000 Shares issued in 2013 38,459 $ 20.39 Shares issued in 2014 36,305 $ 21.49 Shares issued in 2015 22,723 $ 34.37 Shares available as of December 31, 2015 213,760 Treasury Stock In conjunction with the vesting of the non-vested shares of stock, recipients incur personal income tax obligations. The Company allows the recipients to turn in shares of common stock to satisfy those personal tax obligations. The Company redeemed 42,197 , 40,716 and 40,608 shares of common stock related to these tax obligations during the years ended December 31, 2015, 2014 and 2013, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases | 8. Leases In certain instances, state laws may prohibit the sale of a home nursing agency or hospitals may be reluctant to sell their home health agencies. In these instances, the Company, through its wholly owned subsidiaries, enters into a lease agreement for a Medicare and Medicaid license, as well as the associated provider number to provide home health or hospice services. As of December 31, 2015 , the Company had three license lease arrangements to operate four home nursing agencies and three hospice agencies. One of the leases was entered into in 2007 and expires in 2017 . Expense related to this lease was $0.2 million for each of the years ended December 31, 2015 , 2014 , and 2013 , respectively. Payment due under this lease is $0.2 million in 2016. Two of the leases were amended during 2010 to extend the lease terms to one year with an automatic renewal clause of four years . Expense related to these leases was $0.5 million , $0.4 million , and $0.3 million for the years ended December 31, 2015, 2014 and 2013 , respectively. The lease payments associated with these leases are based on a percentage of quarterly net profits; therefore, the future payments will vary with the future profits. The Company leases office space and equipment at its various locations. Many of the leases contain renewal options with varying terms and conditions. Management expects that in the normal course of business, expiring leases will be renewed or, upon making a decision to relocate, replaced by leases for new locations. Operating lease terms range from three to ten years . Rent expense includes insurance, maintenance, and other costs as required by the lease. Total rental expense was $20.7 million , $21.1 million and $17.2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company began participating in a fleet program during 2014. The program allows employees that drive over 12,000 miles on an annual basis to qualify for a vehicle; all participation is voluntary. The individual operating leases are for a minimum of 12 months . Fleet expense was $7.2 million and $3.6 million for the years ended December 31, 2015 and 2014. Future minimum rental commitments under non-cancelable operating leases are as follows (amounts in thousands): Year Total 2016 $ 25,207 2017 11,066 2018 6,766 2019 4,052 2020 2,609 Thereafter 5,532 $ 55,232 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Defined Contribution Plan Disclosure [Text Block] | 9. Employee Benefit Plan Defined Contribution Plan The Company sponsors a 401(k) plan for all eligible employees. The plan allows participants to contribute up to $18,000 in 2015, tax deferred (subject to IRS guidelines). The plan also allows discretionary Company contributions as determined by the Company’s Board of Directors. Effective January 1, 2006, the Company implemented a discretionary match of up to two percent of participating employee contributions. The employer contribution will vest 20% after two years and 20% each additional year until it is fully vested in year six . Contribution expense to the Company was $5.4 million , $4.7 million and $3.7 million in the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. 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 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-1609-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, alleging violations of Sections 10(b), 20(a) and 20A of the Securities Exchange Act of 1934, as amended. On June 16, 2014, following mediation, the parties entered into a Stipulation of Settlement. On August 5, 2014, the District Court entered an Order Preliminarily Approving Settlement and Providing for Notice. On March 3, 2015, the District Court entered its Judgments adopting the Report and Recommendation previously issued and dismissing the action with prejudice. The time for appeal has passed and no appeals were filed. This matter is now concluded. The Company's insurance carrier has funded the entire $7.9 million settlement amount. 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-2899-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-3301-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 Plummer derivative action described above and stayed. On October 7, 2015, the parties entered into a Stipulation of Settlement. On October 19, 2015, Plaintiffs filed an Unopposed Motion for Preliminary Approval of Proposed Derivative Settlement. On October 26, 2015, the District Court entered an Order Preliminarily Approving Settlement in the amount of $0.6 million . On January 11, 2016, the District Court entered its Order and Final Judgment approving the settlement and dismissing the consolidated action with prejudice. The Company's insurance carrier has funded the entire settlement amount, which was immediately releasable to Plaintiffs' counsel on January 11, 2016. 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. 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. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 11. Segment Information The Company’s segments consist of home health services, hospice services, community-based services, and facility-based services. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. During the first quarter of 2015, the Company had a change in the composition of segments due to the community-based services meeting the criteria of qualitative thresholds established by ASC 280, Segment Reporting . Prior period segment data has been restated to reflect the newly reportable segment. Community-based services were previously included in home-based services. The following tables summarize the Company’s segment information for the twelve months ended December 31, 2015 , 2014 and 2013 (amounts in thousands): Year Ended December 31, 2015 Home health services Hospice services Community-based services Facility-based services Total Net service revenue $ 613,188 $ 85,854 $ 41,202 $ 76,122 $ 816,366 Cost of service revenue 354,750 50,906 29,076 46,146 480,878 Provision for bad debts 15,736 1,002 1,816 689 19,243 General and administrative expenses 191,135 26,517 8,506 22,471 248,629 Impairment of intangibles and other 1,245 — 28 — 1,273 Operating income 50,322 7,429 1,776 6,816 66,343 Interest expense (1,819 ) (253 ) (23 ) (207 ) (2,302 ) Non-operating income 397 38 3 19 457 Income from continuing operations before income taxes and noncontrolling interests 48,900 7,214 1,756 6,628 64,498 Income tax expense 17,173 2,541 787 2,347 22,848 Income from continuing operations 31,727 4,673 969 4,281 41,650 Less net income (loss) attributable to noncontrolling interests 7,424 1,077 (144 ) 958 9,315 Net income attributable to LHC Group, Inc.’s common stockholders $ 24,303 $ 3,596 $ 1,113 $ 3,323 $ 32,335 Total assets $ 394,392 $ 101,641 $ 31,235 $ 38,786 $ 566,054 Year Ended December 31, 2014 Home health services Hospice services Community-based services Facility-based services Total Net service revenue $ 564,966 $ 67,621 $ 27,698 $ 73,347 $ 733,632 Cost of service revenue 329,856 39,804 19,611 45,504 434,775 Provision for bad debts 13,072 909 873 926 15,780 General and administrative expenses 187,281 18,882 6,551 21,231 233,945 Impairment of intangibles and other 3,269 202 — 175 3,646 Operating income 31,488 7,824 663 5,511 45,486 Interest expense (1,969 ) (249 ) (19 ) (249 ) (2,486 ) Non-operating income 201 43 2 19 265 Income from continuing operations before income taxes and noncontrolling interests 29,720 7,618 646 5,281 43,265 Income tax expense 10,999 1,955 105 1,454 14,513 Income from continuing operations 18,721 5,663 541 3,827 28,752 Less net income attributable to noncontrolling interests 5,121 1,122 (36 ) 708 6,915 Net income attributable to LHC Group, Inc.’s common stockholders $ 13,600 $ 4,541 $ 577 $ 3,119 $ 21,837 Total assets $ 386,511 $ 34,847 $ 34,027 $ 36,354 $ 491,739 Year Ended December 31, 2013 Home health services Hospice services Community-based services Facility-based services Total Net service revenue $ 523,512 $ 56,172 $ 3,207 $ 75,392 $ 658,283 Cost of service revenue 302,589 34,212 2,398 44,265 383,464 Provision for bad debts 11,623 1,215 5 1,086 13,929 General and administrative expenses 175,056 16,210 1,018 21,349 213,633 Impairment of intangibles and other 344 175 — 1 520 Operating income (loss) 33,900 4,360 (214 ) 8,691 46,737 Interest expense (1,591 ) (200 ) (9 ) (195 ) (1,995 ) Non-operating income 142 26 — 95 263 Income (loss) from continuing operations before income taxes and noncontrolling interests 32,451 4,186 (223 ) 8,591 45,005 Income tax expense (benefit) 12,634 1,797 (89 ) 1,517 15,859 Income (loss) from continuing operations 19,817 2,389 (134 ) 7,074 29,146 Less net income attributable to noncontrolling interests 4,596 956 — 1,252 6,804 Net income (loss) attributable to LHC Group, Inc.’s common stockholders $ 15,221 $ 1,433 $ (134 ) $ 5,822 $ 22,342 Total assets $ 355,858 $ 28,557 $ 1,242 $ 36,569 $ 422,226 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 12. Fair Value of Financial Instruments The carrying amounts of the Company’s cash, receivables, accounts payable and accrued liabilities approximate their fair values. The estimated fair value of intangible assets was calculated using level 3 inputs based on the present value of anticipated future benefits. For the year ended December 31, 2015 , the carrying value of the Company’s long-term debt approximates fair value as the interest rates approximates current rates. |
Allowance for Uncollectible Acc
Allowance for Uncollectible Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Allowance for Uncollectible Accounts | 13. Allowance for Uncollectible Accounts The following table summarizes the activity and ending balances in the allowance for uncollectible accounts for the twelve months ended December 31, 2015 , 2014 and 2013 (amounts in thousands): Year Beginning of Year Balance Additions Deductions End of Year Balance 2015 $ 18,582 $ 19,243 $ 11,113 $ 26,712 2014 14,334 15,780 11,532 18,582 2013 11,863 13,929 11,458 14,334 |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | 14. Concentration of Risk The Company’s Louisiana facilities accounted for approximately 21.0% , 22.7% and 26.0% of net service revenue during the years ended December 31, 2015 , 2014 and 2013 , respectively. Any material change in the current economic or competitive conditions in Louisiana could have a disproportionate effect on the Company’s overall business results. |
Unaudited Summarized Quarterly
Unaudited Summarized Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Summarized Quarterly Financial Information | 15. Unaudited Summarized Quarterly Financial Information The following table represents the Company’s unaudited quarterly results of operations (amounts in thousands, except share data): First Quarter 2015 Second Quarter 2015 Third Quarter 2015 Fourth Quarter 2015 Net service revenue $ 193,079 $ 200,172 $ 204,122 $ 218,993 Gross margin 78,653 83,533 83,249 90,053 Net income attributable to LHC Group, Inc.’s common stockholders 6,805 8,950 8,845 7,735 Basic earnings per share: Net income attributable to LHC Group, Inc.’s common stockholders $ 0.39 $ 0.51 $ 0.51 $ 0.44 Diluted earnings per share: Net income attributable to LHC Group, Inc.’s common stockholders $ 0.39 $ 0.51 $ 0.50 $ 0.44 Weighted average shares outstanding: Basic 17,322,791 17,410,971 17,436,731 17,447,691 Diluted 17,489,483 17,529,100 17,610,953 17,647,483 First Quarter 2014 Second Quarter 2014 Third Quarter 2014 Fourth Quarter 2014 Net service revenue $ 163,681 $ 188,867 $ 187,713 $ 193,371 Gross margin 66,347 77,340 74,591 80,579 Net income attributable to LHC Group, Inc.’s common stockholders 4,068 6,061 6,174 5,534 Basic earnings per share: Net income attributable to LHC Group, Inc.’s common stockholders $ 0.24 $ 0.35 $ 0.36 $ 0.32 Diluted earnings per share: Net income attributable to LHC Group, Inc.’s common stockholders $ 0.24 $ 0.35 $ 0.36 $ 0.32 Weighted average shares outstanding: Basic 17,148,043 17,233,264 17,260,078 17,274,677 Diluted 17,268,716 17,277,224 17,356,916 17,419,423 Because of the method used to calculate per share amounts, quarterly per share amounts may not necessarily total to the per share amounts for the entire year. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“US 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. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include all subsidiaries and entities controlled by the Company. Control is defined by the Company as ownership of a majority of the voting interest of an entity. Third party equity interests in the consolidated joint ventures are reflected as noncontrolling interests in the Company’s consolidated financial statements. The following table summarizes the percentage of net service revenue earned by type of ownership or relationship the Company had with the operating entity for the periods presented for the years ending December 31: Ownership type 2015 2014 2013 Wholly owned subsidiaries 55.2 % 53.5 % 48.8 % Equity joint ventures 42.9 43.9 48.5 License leasing arrangements 1.0 1.8 1.9 Management services 0.9 0.8 0.8 100.0 % 100.0 % 100.0 % All significant inter-company accounts and transactions have been eliminated in consolidation. All business combinations accounted for as purchases have been included in the consolidated financial statements from the respective dates of acquisition. The following discussion describes the Company’s consolidation policy with respect to its various ventures excluding wholly owned subsidiaries: Equity Joint Ventures A majority of the Company’s equity joint ventures are structured as limited liability companies in which the Company typically owns a majority equity interest ranging from 51% to 91% . Each member of all but one of the Company’s equity joint ventures participates in profits and losses in proportion to their equity interests. The Company has one equity joint venture partner whose participation in losses is limited. The Company consolidates these entities as the Company has the obligation to absorb losses of the entities and the right to receive benefits from the entities and generally has voting control over the entities. License Leasing Arrangements The Company, through wholly owned subsidiaries, leases home health licenses necessary to operate certain of its home nursing and hospice agencies. As with 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 operations of certain agencies and facilities. The Company does not consolidate these agencies or facilities, as the Company does not have an ownership interest and does not have an obligation to absorb losses of the entities or the right to receive the benefits from the entities other than management fees. |
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. The Company assesses the patient's ability to pay for their healthcare services at the time of patient admission based on the Company's verification of the patient's insurance coverage under the Medicare, Medicaid and other commercial or managed care insurance programs. All such payors contribute to the net service revenue of the Company's home health 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 years ending December 31: Payor 2015 2014 2013 Medicare 74.5 % 75.9 % 79.8 % Medicaid 1.5 1.4 1.4 Other 24.0 22.7 18.8 100.0 % 100.0 % 100.0 % The percentage of net service revenue contributed from each reporting segment was as follows for the years ending December 31: Segment 2015 2014 2013 Home health services 75.1 % 77.0 % 79.5 % Hospice services 10.5 9.2 8.5 Community-based services 5.1 3.8 0.5 Facility-based services 9.3 10.0 11.5 100.0 % 100.0 % 100.0 % Medicare Home Health Services The Company’s home nursing Medicare patients are classified into one of 153 home health resource groups prior to receiving services. Based on this 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. Management estimates the impact of these payment adjustments based on historical experience and records this estimate during the period the services are rendered. The Company’s payment is also adjusted for geographic wage differences. In calculating the Company’s reported net service revenue from home nursing services, the Company adjusts the prospective Medicare payments by an estimate of the 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 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 programs 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. Beginning with cap year ended October 1, 2014, CMS implemented a new process requiring hospice providers to self-report their cap liabilities and remit applicable payment by March 31 of the following year. Facility-Based Services Long-Term Acute Care Services. The Company is reimbursed by Medicare for services provided under the long-term acute care hospital (“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. Managed care and other payors reimburse the Company in a manner similar to either Medicare or Medicaid. Accordingly, the Company recognizes revenue from managed care and other payors in the same manner as the Company recognizes revenue from Medicare or Medicaid. Management Services The Company records management services revenue as services are provided in accordance with the various management services agreements to which the Company is a party. As described in the management services agreements, the Company provides billing, management and other consulting services suited to and designed for the efficient operation of the applicable home nursing agency. The Company is responsible for the costs associated with the locations and personnel required for the provision of services. The Company is compensated based on a percentage of cash collections for one management service agreement and reimbursed for operating expenses plus a percentage of operating net income for two management service agreements. |
Account 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, Medicaid, 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. Because Medicare is the Company’s primary payor, the credit risk associated with receivables from other payors is limited. The Company believes the credit risk associated with its Medicare accounts, which have historically exceed 55.0% 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 significant concentrations of receivables from any particular payor that would subject it to any significant credit risk in the collection of accounts receivable. The amount of 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 that 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 RAPs received for that episode will be recouped by Medicare from any other Medicare claims in process for that particular provider. The RAP and final claim must then be resubmitted. For subsequent episodes of care contiguous with the first episode for a particular patient, the Company submits a RAP for 50% instead of 60% of the estimated reimbursement. The Company’s Medicare population is paid at a prospectively set amount that can be determined at the time services are rendered. The Company’s Medicaid reimbursement is based on a predetermined fee schedule applied to each individual service we provide. The Company’s managed care contracts are structured similar to either the Medicare or Medicaid payment methodologies. Because of its payor mix, the Company is able to calculate its actual amount due at the patient level and adjust the gross charges down to the actual amount at the time of billing. This negates the need to record an estimated contractual allowance when reporting net service revenue for each reporting period. |
Business Combinations Policy | Business Combination The Company accounts for business combinations using the acquisition method. The assets typically acquired consist primarily of Medicare licenses, trade names, certificates of need and/or a non-compete agreement. The assets acquired and liabilities assumed, if any, are measured at fair value on the acquisition date using the appropriate valuation method. The noncontrolling interest associated with joint venture acquisitions is also measured and recorded at fair value as of the acquisition date. The residual purchase price is recorded as goodwill. The operations of the acquisitions are included in the consolidated financial statements from their respective dates of acquisition. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company performs its annual impairment review of goodwill at November 30, and when a triggering event occurs between annual impairment tests. For 2015, the Company performed a qualitative assessment of goodwill and determined that it is not more likely than not that the fair values of its reporting units are less than the carrying amounts. The Company has not recognized any goodwill impairment charges in 2015, 2014 or 2013 related to the annual impairment testing. During the twelve months ended December 31, 2015 and 2014, the Company recognized a disposal of $0.4 million and $0.2 million , respectively, of goodwill associated with the closure of underperforming locations. Included in intangible assets are definite-lived assets subject to amortization such as non-compete agreements and defensive assets, which are defined as trade names that are not actively used. Amortization of definite-lived intangible assets is calculated on a straight-line basis over the estimated useful lives of the related assets, ranging from two to five years. The Company also has indefinite-lived assets that are not subject to amortization expense such as trade names, certificates of need and licenses to conduct specific operations within geographic markets. The Company has concluded that trade names, certificates of need and licenses have indefinite lives, because there are no legal, regulatory, contractual, economic or other factors that would limit the useful life of these intangible assets and the Company intends to renew and operate the certificates of need and licenses and use the trade names indefinitely. These indefinite-lived intangible assets are reviewed annually for impairment or more frequently if circumstances indicate impairment may have occurred. To determine whether an indefinite-lived intangible asset is impaired, the Company performs a qualitative assessment to support the conclusion that the indefinite-lived intangible asset is not impaired. Based on the results of that qualitative assessment, the Company may perform a quantitative test. The Company utilizes a relief-from-royalty method in its quantitative impairment test of trade names. Under this method, the fair value of the trade name is determined by calculating the present value of the after-tax cost savings associated with owning the trade names and, therefore, not having to pay royalties for use over its estimated useful life. The Company utilizes the replacement cost approach in its quantitative impairment test for certificates of need and licenses. Under this method, assumptions are made about the cost to replace the certificates of need and licenses. During the twelve months ended December 31, 2015, 2014 and 2013, the Company recorded impairment charges related to indefinite-lived intangible assets of $0.6 million , $2.0 million and $0.5 million , respectively. |
Due To And Due From Governmental Entities | Due to/from Governmental Entities The Company’s LTACHs are reimbursed for certain activities based on tentative rates. The amounts recorded in due to/from governmental entities on the Company’s consolidated balance sheets relate to settled and open cost reports that are subject to the completion of audits and the issuance of final assessments. Final reimbursement is determined based on submission of annual cost reports and audits by the fiscal intermediary. Adjustments are accrued on an estimated basis in the period the related services were rendered and further adjusted as final settlements are determined. These adjustments are accounted for as changes in estimates. Additionally, reimbursements received in excess of hospice cap amounts are recorded in this account. |
Property, Plant and Equipment | Property, Building and Equipment Property, building and equipment are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the individual assets. The estimated useful life of buildings is 39 years , while the estimated useful lives of transportation equipment and furniture and other equipment range from 3 to 10 years . The useful life for leasehold improvements is the shorter of the lease term or the expected life of the leasehold improvement. Assets that are sold or retired are written off and any gain or losses are recorded in operating income. Routine repairs and maintenance costs are expensed as incurred. Property, building and equipment are reviewed whenever events or changes in circumstances occur that indicate possible impairment. There were no impairments recognized during the periods ended December 31, 2015 , 2014 or 2013 . The following table describes the Company’s components of property, building and equipment for the years ended December 31, 2015 and 2014 (amounts in thousands): 2015 2014 Land $ 2,033 $ 543 Building and improvements 10,026 9,238 Transportation equipment 6,912 6,191 Fixed equipment 3,373 3,661 Office furniture and medical equipment 54,659 59,837 77,003 79,470 Less accumulated depreciation 38,907 44,683 $ 38,096 $ 34,787 Depreciation expense for the years ended December 31, 2015 , 2014 and 2013 was $10.0 million , $7.5 million and $6.9 million , respectively, which was recorded in general and administrative expenses. |
Noncontrolling Interest | Noncontrolling Interest The nonredeemable interest held by third parties in subsidiaries owned or controlled by the Company is reported on the consolidated balance sheets as noncontrolling interest as a component of stockholders’ equity. Redeemable interest held by third parties in subsidiaries owned or controlled by the Company is reported on the consolidated balance sheets outside of permanent equity. All noncontrolling interest reported in the consolidated statements of income reflects the respective interests in the income or loss after income taxes of the subsidiaries attributable to the other parties, the effect of which is removed from the net income attributable to the Company. |
Share-based Compensation, Option and Incentive Plans | Stock-Based Compensation The Company grants restricted stock or restricted stock units to employees and members of its Board of Directors as a form of compensation. The expense for such awards is based on the grant date fair value of the award and is recognized on a straight-line basis over the requisite service period. See Note 7 to these consolidated financial statements. |
Earnings Per Share | Earnings Per Share The following table sets forth shares used in the computation of basic and diluted per share information for the years ended December 31, 2015 , 2014 and 2013 : 2015 2014 2013 Weighted average number of shares outstanding for basic per share calculation 17,405,379 17,229,026 17,049,794 Effect of dilutive potential shares: Options 3,663 4,284 4,058 Nonvested restricted stock 138,488 82,023 78,899 Adjusted weighted average shares for diluted per share calculation 17,547,531 17,315,333 17,132,751 Antidilutive shares 200,525 173,360 182,225 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-9, Revenue from Contracts with Customers, ("ASU 2014-9") 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. ASU 2014-9 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 adoption 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 2014-9 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. On November 20, 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, ("ASU 2015-17") which requires an entity with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The new standard is effective for the Company on January 1, 2017; however, early adoption is permitted. The Company is electing to early adopt the new standard effective December 31, 2015. The standard permits the use of prospective transition and, as such, prior periods were not adjusted in the Company's financial statements. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 for the periods presented for the years ending December 31: Ownership type 2015 2014 2013 Wholly owned subsidiaries 55.2 % 53.5 % 48.8 % Equity joint ventures 42.9 43.9 48.5 License leasing arrangements 1.0 1.8 1.9 Management services 0.9 0.8 0.8 100.0 % 100.0 % 100.0 % |
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 years ending December 31: Payor 2015 2014 2013 Medicare 74.5 % 75.9 % 79.8 % Medicaid 1.5 1.4 1.4 Other 24.0 22.7 18.8 100.0 % 100.0 % 100.0 % |
Percentage Of Net Service Revenue Contributed From Each Reporting Segment | The percentage of net service revenue contributed from each reporting segment was as follows for the years ending December 31: Segment 2015 2014 2013 Home health services 75.1 % 77.0 % 79.5 % Hospice services 10.5 9.2 8.5 Community-based services 5.1 3.8 0.5 Facility-based services 9.3 10.0 11.5 100.0 % 100.0 % 100.0 % |
Property, Plant and Equipment | The following table describes the Company’s components of property, building and equipment for the years ended December 31, 2015 and 2014 (amounts in thousands): 2015 2014 Land $ 2,033 $ 543 Building and improvements 10,026 9,238 Transportation equipment 6,912 6,191 Fixed equipment 3,373 3,661 Office furniture and medical equipment 54,659 59,837 77,003 79,470 Less accumulated depreciation 38,907 44,683 $ 38,096 $ 34,787 |
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 for the years ended December 31, 2015 , 2014 and 2013 : 2015 2014 2013 Weighted average number of shares outstanding for basic per share calculation 17,405,379 17,229,026 17,049,794 Effect of dilutive potential shares: Options 3,663 4,284 4,058 Nonvested restricted stock 138,488 82,023 78,899 Adjusted weighted average shares for diluted per share calculation 17,547,531 17,315,333 17,132,751 Antidilutive shares 200,525 173,360 182,225 |
Acquisitions and Disposals (Tab
Acquisitions and Disposals (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule Of Purchase Price Allocations Table | 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 their fair value at the acquisition dates and the noncontrolling interest acquired (amounts in thousands): Consideration Cash $ 70,123 Fair value of total consideration transferred 70,123 Recognized amounts of identifiable assets acquired and liabilities assumed Trade name 6,530 Certificates of needs/licenses 11,609 Other identifiable intangible assets 953 Cash 700 Accounts receivable 4,202 Fixed assets 521 Accounts payable (1,389 ) Other assets and (liabilities), net (3,937 ) Total identifiable assets 19,189 Noncontrolling interest 152 Goodwill, including noncontrolling interest of $36 $ 51,086 |
Pro Forma Consolidated Income Statement Information | The following table contains unaudited pro forma consolidated income statement information assuming the 2015 acquisitions closed January 1, 2014 (amount in thousands, except earnings per share): 2015 2014 Net service revenue $ 868,075 $ 789,761 Operating income 67,520 45,671 Net income 33,044 21,949 Basic earnings per share 1.90 1.27 Diluted earnings per share 1.88 1.27 |
Goodwill and Other Intangible26
Goodwill and Other Intangibles, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes changes in goodwill by reporting unit during the twelve months ended December 31, 2015 and 2014 (amounts in thousands): Home health reporting unit Hospice reporting unit Community- based reporting unit Facility-based reporting unit Total Balance as of December 31, 2013 $ 173,574 $ 9,463 $ 265 $ 11,591 $ 194,893 Goodwill from acquisitions 22,809 5,330 17,074 — 45,213 Goodwill related to noncontrolling interests 113 — — — 113 Goodwill related to disposal (200 ) — — — (200 ) Balance as of December 31, 2014 $ 196,296 $ 14,793 $ 17,339 $ 11,591 $ 240,019 Goodwill from acquisitions 7,069 43,343 638 — 51,050 Goodwill related to noncontrolling interests 14 — 22 — 36 Goodwill related to disposal (384 ) — (27 ) — (411 ) Balance as of December 31, 2015 $ 202,995 $ 58,136 $ 17,972 $ 11,591 $ 290,694 |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class Table | December 31, 2015 Remaining useful life Gross carrying amount Accumulated amortization Net carrying amount Indefinite-lived assets : Trade names Indefinite $ 60,762 $ — $ 60,762 Certificates of need/licenses Indefinite 29,807 — 29,807 Total 90,569 — 90,569 Amortizing assets: Trade names 2 months – 5 years 8,985 (4,385 ) 4,600 Non-compete agreements 3 months – 2 years 5,347 (4,111 ) 1,236 Total 14,332 (8,496 ) 5,836 Balance at December 31, 2015 $ 104,901 $ (8,496 ) $ 96,405 December 31, 2014 Remaining useful life Gross carrying amount Accumulated amortization Net carrying amount Indefinite-lived assets : Trade names Indefinite $ 54,732 $ — $ 54,732 Certificates of need/licenses Indefinite 19,058 — 19,058 Total $ 73,790 $ — $ 73,790 Amortizing assets: Trade names 2 months – 5 years $ 8,230 $ (2,797 ) $ 5,433 Non-compete agreements 3 months – 3 years 4,225 (3,763 ) 462 Total 12,455 (6,560 ) 5,895 Balance at December 31, 2014 $ 86,245 $ (6,560 ) $ 79,685 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2015 and 2014 were as follows (amounts in thousands): 2015 2014 Deferred tax assets: Allowance for uncollectible accounts $ 9,048 $ 6,397 Accrued employee benefits 5,260 4,195 Stock compensation 1,068 1,228 Accrued self-insurance 2,517 2,526 Acquisition costs 1,651 1,510 Net operating loss carry forward 983 927 Intangible asset impairment 43 49 Uncertain tax position—state tax portion 215 215 Uncertain tax position - interest expense 254 186 Other 93 121 Valuation allowance (44 ) (44 ) Deferred tax assets $ 21,088 $ 17,310 Deferred tax liabilities: Amortization of intangible assets (35,355 ) (29,370 ) Tax depreciation in excess of book depreciation (8,201 ) (7,994 ) Prepaid expenses (655 ) (697 ) Non-accrual experience accounting method (606 ) (1,459 ) Deferred tax liabilities (44,817 ) (39,520 ) Net deferred tax liability $ (23,729 ) $ (22,210 ) |
Income Tax Expense (benefit) from Continuing operations, Less Noncontrolling Interest | The components of the Company’s income tax expense from continuing operations, less noncontrolling interest, were as follows (amounts in thousands): 2015 2014 2013 Current: Federal $ 18,094 $ 10,195 $ 11,962 State 3,232 1,916 1,546 21,326 12,111 13,508 Deferred: Federal 1,389 2,187 1,448 State 133 215 903 1,522 2,402 2,351 Total income tax expense $ 22,848 $ 14,513 $ 15,859 |
Statutory Rate and Provisions for Income Taxes | A reconciliation of the differences between income tax expense on net income attributable to the Company, computed at the federal statutory rate and provisions for income taxes for each period is as follows (amounts in thousands): 2015 2014 2013 Income taxes computed at federal statutory tax rate $ 19,314 $ 12,723 $ 13,360 State income taxes, net of federal benefit 2,184 1,407 1,641 Nondeductible expenses 1,352 766 1,022 Other items 278 (99 ) 101 Income tax credits (280 ) (284 ) (265 ) Total income tax expense $ 22,848 $ 14,513 $ 15,859 A reconciliation of the difference between the federal statutory tax rate and the Company's effective tax rate for income taxes for each period is as follows: 2015 2014 2013 Federal statutory tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 3.9 3.5 3.5 Nondeductible expenses 2.5 2.3 3.1 Credits and other — (0.9 ) — Effective tax rate 41.4 % 39.9 % 41.6 % |
Total amounts of Unrecognized Tax | A reconciliation of the total amounts of unrecognized tax benefits follows (amounts in thousands): Total unrecognized tax benefits as of December 31, 2014 $ 3,415 Increases (decreases) in unrecognized tax benefits as a result of: Tax positions taken during the current period — Total unrecognized tax benefits as of December 31, 2015 $ 3,415 |
Debt Schedule of Long-Term Debt
Debt Schedule of Long-Term Debt Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | The scheduled principal payments on long-term debt for each of the five years subsequent to December 31, 2015 is as follows (amounts in thousands): Year Principal payment amount 2016 $ 241 2017 256 2018 260 2019 98,027 2020 — Total $ 98,784 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table represents stock options activity for the year ended December 31, 2015: Number of Shares Weighted Average Exercise Price Average Remaining Contractual Term Aggregate Intrinsic Value Options outstanding at January 1, 2015 15,000 $ 16.88 1.0 year $ 214,575 Options granted — — — — Options exercised (9,500 ) 15.21 — — Options forfeited or expired — — — — Options outstanding at December 31, 2015 5,500 $ 20.09 0.5 years $ — Options exercisable at December 31, 2015 5,500 $ 20.09 0.5 years $ 140,470 |
Nonvested Stock Activity | The following table represents the nonvested stock activity for the year ended December 31, 2015: Number of Shares Weighted Average Grant Date Fair Value Nonvested shares outstanding at January 1, 2015 524,287 $ 22.56 Granted 199,065 34.06 Vested (177,887 ) 23.28 Forfeited (18,374 ) 20.57 Nonvested shares outstanding at December 31, 2015 527,091 $ 26.64 |
Summary of Shares Issued Under Employee Stock Purchase Plan | The following table represents the shares issued during 2015, 2014 and 2013 under the Employee Stock Purchase Plan: Number of Shares Weighted Average Per Share Price Shares available as of January 1, 2012 61,247 Additional shares authorized for issuance 250,000 Shares issued in 2013 38,459 $ 20.39 Shares issued in 2014 36,305 $ 21.49 Shares issued in 2015 22,723 $ 34.37 Shares available as of December 31, 2015 213,760 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum rental commitments under non-cancelable operating leases are as follows (amounts in thousands): Year Total 2016 $ 25,207 2017 11,066 2018 6,766 2019 4,052 2020 2,609 Thereafter 5,532 $ 55,232 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables summarize the Company’s segment information for the twelve months ended December 31, 2015 , 2014 and 2013 (amounts in thousands): Year Ended December 31, 2015 Home health services Hospice services Community-based services Facility-based services Total Net service revenue $ 613,188 $ 85,854 $ 41,202 $ 76,122 $ 816,366 Cost of service revenue 354,750 50,906 29,076 46,146 480,878 Provision for bad debts 15,736 1,002 1,816 689 19,243 General and administrative expenses 191,135 26,517 8,506 22,471 248,629 Impairment of intangibles and other 1,245 — 28 — 1,273 Operating income 50,322 7,429 1,776 6,816 66,343 Interest expense (1,819 ) (253 ) (23 ) (207 ) (2,302 ) Non-operating income 397 38 3 19 457 Income from continuing operations before income taxes and noncontrolling interests 48,900 7,214 1,756 6,628 64,498 Income tax expense 17,173 2,541 787 2,347 22,848 Income from continuing operations 31,727 4,673 969 4,281 41,650 Less net income (loss) attributable to noncontrolling interests 7,424 1,077 (144 ) 958 9,315 Net income attributable to LHC Group, Inc.’s common stockholders $ 24,303 $ 3,596 $ 1,113 $ 3,323 $ 32,335 Total assets $ 394,392 $ 101,641 $ 31,235 $ 38,786 $ 566,054 Year Ended December 31, 2014 Home health services Hospice services Community-based services Facility-based services Total Net service revenue $ 564,966 $ 67,621 $ 27,698 $ 73,347 $ 733,632 Cost of service revenue 329,856 39,804 19,611 45,504 434,775 Provision for bad debts 13,072 909 873 926 15,780 General and administrative expenses 187,281 18,882 6,551 21,231 233,945 Impairment of intangibles and other 3,269 202 — 175 3,646 Operating income 31,488 7,824 663 5,511 45,486 Interest expense (1,969 ) (249 ) (19 ) (249 ) (2,486 ) Non-operating income 201 43 2 19 265 Income from continuing operations before income taxes and noncontrolling interests 29,720 7,618 646 5,281 43,265 Income tax expense 10,999 1,955 105 1,454 14,513 Income from continuing operations 18,721 5,663 541 3,827 28,752 Less net income attributable to noncontrolling interests 5,121 1,122 (36 ) 708 6,915 Net income attributable to LHC Group, Inc.’s common stockholders $ 13,600 $ 4,541 $ 577 $ 3,119 $ 21,837 Total assets $ 386,511 $ 34,847 $ 34,027 $ 36,354 $ 491,739 Year Ended December 31, 2013 Home health services Hospice services Community-based services Facility-based services Total Net service revenue $ 523,512 $ 56,172 $ 3,207 $ 75,392 $ 658,283 Cost of service revenue 302,589 34,212 2,398 44,265 383,464 Provision for bad debts 11,623 1,215 5 1,086 13,929 General and administrative expenses 175,056 16,210 1,018 21,349 213,633 Impairment of intangibles and other 344 175 — 1 520 Operating income (loss) 33,900 4,360 (214 ) 8,691 46,737 Interest expense (1,591 ) (200 ) (9 ) (195 ) (1,995 ) Non-operating income 142 26 — 95 263 Income (loss) from continuing operations before income taxes and noncontrolling interests 32,451 4,186 (223 ) 8,591 45,005 Income tax expense (benefit) 12,634 1,797 (89 ) 1,517 15,859 Income (loss) from continuing operations 19,817 2,389 (134 ) 7,074 29,146 Less net income attributable to noncontrolling interests 4,596 956 — 1,252 6,804 Net income (loss) attributable to LHC Group, Inc.’s common stockholders $ 15,221 $ 1,433 $ (134 ) $ 5,822 $ 22,342 Total assets $ 355,858 $ 28,557 $ 1,242 $ 36,569 $ 422,226 |
Allowance for Uncollectible A32
Allowance for Uncollectible Accounts Activity and Ending Balances (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Allowance for Credit Losses on Financing Receivables | The following table summarizes the activity and ending balances in the allowance for uncollectible accounts for the twelve months ended December 31, 2015 , 2014 and 2013 (amounts in thousands): Year Beginning of Year Balance Additions Deductions End of Year Balance 2015 $ 18,582 $ 19,243 $ 11,113 $ 26,712 2014 14,334 15,780 11,532 18,582 2013 11,863 13,929 11,458 14,334 |
Unaudited Summarized Quarterl33
Unaudited Summarized Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Results of Operations | The following table represents the Company’s unaudited quarterly results of operations (amounts in thousands, except share data): First Quarter 2015 Second Quarter 2015 Third Quarter 2015 Fourth Quarter 2015 Net service revenue $ 193,079 $ 200,172 $ 204,122 $ 218,993 Gross margin 78,653 83,533 83,249 90,053 Net income attributable to LHC Group, Inc.’s common stockholders 6,805 8,950 8,845 7,735 Basic earnings per share: Net income attributable to LHC Group, Inc.’s common stockholders $ 0.39 $ 0.51 $ 0.51 $ 0.44 Diluted earnings per share: Net income attributable to LHC Group, Inc.’s common stockholders $ 0.39 $ 0.51 $ 0.50 $ 0.44 Weighted average shares outstanding: Basic 17,322,791 17,410,971 17,436,731 17,447,691 Diluted 17,489,483 17,529,100 17,610,953 17,647,483 First Quarter 2014 Second Quarter 2014 Third Quarter 2014 Fourth Quarter 2014 Net service revenue $ 163,681 $ 188,867 $ 187,713 $ 193,371 Gross margin 66,347 77,340 74,591 80,579 Net income attributable to LHC Group, Inc.’s common stockholders 4,068 6,061 6,174 5,534 Basic earnings per share: Net income attributable to LHC Group, Inc.’s common stockholders $ 0.24 $ 0.35 $ 0.36 $ 0.32 Diluted earnings per share: Net income attributable to LHC Group, Inc.’s common stockholders $ 0.24 $ 0.35 $ 0.36 $ 0.32 Weighted average shares outstanding: Basic 17,148,043 17,233,264 17,260,078 17,274,677 Diluted 17,268,716 17,277,224 17,356,916 17,419,423 |
Organization (Details)
Organization (Details) | Dec. 31, 2015ServiceProviderState |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number Of Service Providers | ServiceProvider | 363 |
Number of States in which Entity Operates | State | 25 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Percentage of Net Service Revenue Earned by Type of Ownership or relationship with Operating Entity (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Health Care organization, Revenue [Abstract] | |||
Percentage of Net Service Revenue | 100.00% | 100.00% | 100.00% |
Wholly-owned Subsidiaries [Member] | |||
Health Care organization, Revenue [Abstract] | |||
Percentage of Net Service Revenue | 55.20% | 53.50% | 48.80% |
Equity Joint Ventures [Member] | |||
Health Care organization, Revenue [Abstract] | |||
Percentage of Net Service Revenue | 42.90% | 43.90% | 48.50% |
License Leasing Arrangements [Member] | |||
Health Care organization, Revenue [Abstract] | |||
Percentage of Net Service Revenue | 1.00% | 1.80% | 1.90% |
Management Services [Member] | |||
Health Care organization, Revenue [Abstract] | |||
Percentage of Net Service Revenue | 0.90% | 0.80% | 0.80% |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Percentage of Net Service Revenue Earned by Category of Payor (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | |||
Percentage of net service revenue | 100.00% | 100.00% | 100.00% |
Medicare [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of net service revenue | 74.50% | 75.90% | 79.80% |
Medicaid [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of net service revenue | 1.50% | 1.40% | 1.40% |
Other [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of net service revenue | 24.00% | 22.70% | 18.80% |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Percentage of Net Service Revenue Contributed from Each Reporting Segment (Detail) - Sales Revenue, Segment [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Health Care Organization, Revenue [Abstract] | |||
Percentage of net service revenue | 100.00% | 100.00% | 100.00% |
Home health services [Member] | |||
Health Care Organization, Revenue [Abstract] | |||
Percentage of net service revenue | 75.10% | 77.00% | 79.50% |
Hospice Entity [Member] | |||
Health Care Organization, Revenue [Abstract] | |||
Percentage of net service revenue | 10.50% | 9.20% | 8.50% |
Community-Based Services [Member] | |||
Health Care Organization, Revenue [Abstract] | |||
Percentage of net service revenue | 5.10% | 3.80% | 0.50% |
Facility-based services [Member] | |||
Health Care Organization, Revenue [Abstract] | |||
Percentage of net service revenue | 9.30% | 10.00% | 11.50% |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Components of Property, Building and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | $ 77,003 | $ 79,470 |
Less accumulated depreciation | 38,907 | 44,683 |
Property, Plant and Equipment, Net | 38,096 | 34,787 |
Land [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | 2,033 | 543 |
Building and improvements [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | 10,026 | 9,238 |
Transportation equipment [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | 6,912 | 6,191 |
Fixed equipment [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | 3,373 | 3,661 |
Office furniture and medical equipment [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | $ 54,659 | $ 59,837 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Shares Used in Computation of Basic and Diluted Per Share Information (Detail) - shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted Average Shares Outstanding: | |||||||||||
Weighted average number of shares outstanding for basic per share calculation | 17,447,691 | 17,436,731 | 17,410,971 | 17,322,791 | 17,274,677 | 17,260,078 | 17,233,264 | 17,148,043 | 17,405,379 | 17,229,026 | 17,049,794 |
Effect of dilutive potential shares: | |||||||||||
Options | 3,663 | 4,284 | 4,058 | ||||||||
Nonvested Stock Awards | 138,488 | 82,023 | 78,899 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted (shares) | 17,647,483 | 17,610,953 | 17,529,100 | 17,489,483 | 17,419,423 | 17,356,916 | 17,277,224 | 17,268,716 | 17,547,531 | 17,315,333 | 17,132,751 |
Antidilutive shares | 200,525 | 173,360 | 182,225 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)GrouptimePeriodicRate | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
License Leasing Arrangements | 100.00% | ||
Number of Medicare home health resource groups | Group | 153 | ||
Number of days from date RAP paid to submit final Medicare bill | 60 days | ||
Low utilization adjustment visits | time | 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 | 55.00% | ||
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% | ||
Disposal Group, Including Discontinued Operation, Goodwill | $ 0.4 | $ 0.2 | |
Loss on impairment of intangible assets | 0.6 | 2 | $ 0.5 |
Disposal Group, Including Discontinued Operation, Intangible Assets, Net | 0.3 | 1.4 | |
Depreciation expense | $ 10 | $ 7.5 | $ 6.9 |
Selected Hospice, Periodic Rate Used to Calculate Revenue | PeriodicRate | 1 | ||
Number of Hospice, Periodic Rates Used to Calculate Revenue | PeriodicRate | 4 | ||
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% | ||
Building [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 39 years | ||
Transportation, Furniture And Other Equipment [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Transportation, Furniture And Other Equipment [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 10 years |
Acquisitions and Disposals - Sc
Acquisitions and Disposals - Schedule of Aggregate Consideration Paid and Recognized Identified Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Consideration | $ 70,572 | $ 73,933 | $ 26,920 |
2015 Acquisitions [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value of total consideration transferred | 71,400 | ||
Consideration | 70,123 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Cash | 700 | ||
Account Receivable | 4,202 | ||
Fixed Assets | 521 | ||
Accounts Payable | (1,389) | ||
Other Assets and (Liabilities), Net | (3,937) | ||
Total Identifiable Assets | 19,189 | ||
Noncontrolling Interest | 152 | ||
Goodwill Including Noncontrolling Interest of $36 | 51,086 | ||
2015 Acquisitions [Member] | Licensing Agreements [Member] | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Business Combination recognized Identifiable Assets Acquired and Liabilities Assumed Indefinite and Finite Live Intangibles | 11,609 | ||
2015 Acquisitions [Member] | Trade Names [Member] | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Business acquisition, purchase price allocation, Intangible Assets | 6,530 | ||
2015 Acquisitions [Member] | Other Identifiable Intangible Assets [Member] | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Business acquisition, purchase price allocation, Intangible Assets | $ 953 |
Acquisitions and Disposals - Pr
Acquisitions and Disposals - Proforma Consolidated Income Statement Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Net Service Revenue | $ 868,075 | $ 789,761 |
Operating income | 67,520 | 45,671 |
Net income | $ 33,044 | $ 21,949 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 1.88 | $ 1.27 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 1.90 | $ 1.27 |
Acquisitions and Disposals - Ad
Acquisitions and Disposals - Additional Information (Detail) $ in Thousands | Nov. 11, 2015Agency | Dec. 31, 2015USD ($)Agency | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Oct. 01, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Intangible Assets, Net (Excluding Goodwill) | $ 96,405 | $ 79,685 | |||
Goodwill Current Year Acquisition | 290,694 | 240,019 | $ 194,893 | ||
Total purchase price for acquisitions | 75,500 | ||||
Cash | 70,572 | 73,933 | 26,920 | ||
Gain (Loss) on Disposition of Intangible Assets | $ (300) | (1,400) | |||
Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated useful life | 1 year | ||||
Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Estimated useful life | 3 years | ||||
Community-Based Services [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible Assets, Net (Excluding Goodwill) | $ 7,300 | ||||
Home Health Reporting Unit [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill Current Year Acquisition | 202,995 | 196,296 | 173,574 | ||
Goodwill Recognized | 22,900 | ||||
Community Based Reporting Unit [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill Current Year Acquisition | 17,972 | 17,339 | 265 | ||
Goodwill Recognized | 17,100 | ||||
Hospice Reporting Unit [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill Current Year Acquisition | $ 58,136 | 14,793 | $ 9,463 | ||
Goodwill Recognized | 5,300 | ||||
General and Administrative Expense [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition-related cost | $ 1,000 | ||||
Halcyon Healthcare [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership Percentage | 100.00% | ||||
Number of entities acquired | Agency | 16 | ||||
Nurses Registry [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership Percentage | 100.00% | ||||
Number of entities acquired | Agency | 5 | ||||
Goodwill Current Year Acquisition | $ 47,200 | ||||
Nurses Registry [Member] | Home Health Reporting Unit [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of entities acquired | Agency | 4 | ||||
Nurses Registry [Member] | Community Based Reporting Unit [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of entities acquired | Agency | 1 | ||||
Other Agencies Acquired | Home Health Reporting Unit [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of entities acquired | Agency | 5 | ||||
Other Agencies Acquired | Community Based Reporting Unit [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of entities acquired | Agency | 1 | ||||
Other Agencies Acquired | Hospice Reporting Unit [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of entities acquired | Agency | 1 | ||||
2015 Acquisitions [Member] | |||||
Business Acquisition [Line Items] | |||||
Total consideration transferred | $ 71,400 | ||||
Cash | 70,123 | ||||
2015 Acquisitions [Member] | Home Health Reporting Unit [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill Recognized | 7,100 | ||||
2015 Acquisitions [Member] | Community Based Reporting Unit [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill Recognized | 600 | ||||
2015 Acquisitions [Member] | Hospice Reporting Unit [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill Recognized | 43,300 | ||||
2015 Acquisitions [Member] | General and Administrative Expense [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Acquisition Related Costs | $ 400 |
Goodwill and Other Intangible44
Goodwill and Other Intangibles, Net - Schedule of Changes in Goodwill by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 240,019 | $ 194,893 |
Goodwill from acquisitions | 51,050 | 45,213 |
Goodwill related to noncontrolling interests | 36 | 113 |
Goodwill related to disposal | (411) | (200) |
Balance at end of period | 290,694 | 240,019 |
Home Health Reporting Unit [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 196,296 | 173,574 |
Goodwill from acquisitions | 7,069 | 22,809 |
Goodwill related to noncontrolling interests | 14 | 113 |
Goodwill related to disposal | (384) | (200) |
Balance at end of period | 202,995 | 196,296 |
Hospice Reporting Unit [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 14,793 | 9,463 |
Goodwill from acquisitions | 43,343 | 5,330 |
Goodwill related to noncontrolling interests | 0 | 0 |
Goodwill related to disposal | 0 | 0 |
Balance at end of period | 58,136 | 14,793 |
Community Based Reporting Unit [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 17,339 | 265 |
Goodwill from acquisitions | 638 | 17,074 |
Goodwill related to noncontrolling interests | 22 | 0 |
Goodwill related to disposal | (27) | 0 |
Balance at end of period | 17,972 | 17,339 |
Facility Based Reporting Unit [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 11,591 | 11,591 |
Goodwill from acquisitions | 0 | 0 |
Goodwill related to noncontrolling interests | 0 | 0 |
Goodwill related to disposal | 0 | 0 |
Balance at end of period | $ 11,591 | $ 11,591 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles Net - Summary of Changes in Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived assets, carrying amount | $ 90,569 | $ 73,790 |
Definite-lived assets, gross carrying amount | 14,332 | 12,455 |
Intangible assets, gross carrying amount | 104,901 | 86,245 |
Definite-lived assets, accumulated amortization | (8,496) | (6,560) |
Intangible assets, accumulated amortization ending balance | (8,496) | (6,560) |
Definite-lived assets, net carrying amount | 5,836 | 5,895 |
Intangible assets, net carrying amount | $ 96,405 | 79,685 |
Minimum [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 1 year | |
Maximum [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Estimated useful life | 3 years | |
Trade Names [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived assets, carrying amount | $ 60,762 | 54,732 |
Definite-lived assets, gross carrying amount | 8,985 | 8,230 |
Definite-lived assets, accumulated amortization | (4,385) | (2,797) |
Definite-lived assets, net carrying amount | 4,600 | 5,433 |
Noncompete Agreements [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Definite-lived assets, gross carrying amount | 5,347 | 4,225 |
Definite-lived assets, accumulated amortization | (4,111) | (3,763) |
Definite-lived assets, net carrying amount | 1,236 | 462 |
Licensing Agreements [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived assets, carrying amount | $ 29,807 | $ 19,058 |
Goodwill and Other Intangible46
Goodwill and Other Intangibles, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Disposal Group, Including Discontinued Operation, Goodwill | $ 400 | $ 200 | |
Intangible Assets, Net (Excluding Goodwill) | 96,405 | 79,685 | |
Amortization | 1,900 | 2,100 | $ 1,500 |
Loss on disposition of intangible asset | 300 | 1,400 | |
Impairment of Intangible Assets (Excluding Goodwill) | 600 | $ 2,000 | $ 500 |
Home-based services [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | 66,400 | ||
Hospice Entity [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | 21,800 | ||
Community-Based Services [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | 7,300 | ||
Facility-based services [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 900 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | $ 9,048 | $ 6,397 |
Accrued employee benefits | 5,260 | 4,195 |
Stock compensation | 1,068 | 1,228 |
Accrued self-insurance | 2,517 | 2,526 |
Acquisition costs | 1,651 | 1,510 |
Net operating loss carry forward | 983 | 927 |
Intangible asset impairment | 43 | 49 |
Uncertain tax position-state tax portion | 215 | 215 |
Deferred Tax Assets, Interest Expense | 254 | 186 |
Other | 93 | 121 |
Valuation allowance | (44) | (44) |
Deferred tax assets | 21,088 | 17,310 |
Deferred tax liabilities: | ||
Amortization of intangible assets | (35,355) | (29,370) |
Tax depreciation in excess of book depreciation | (8,201) | (7,994) |
Prepaid expenses | (655) | (697) |
Non-accrual experience accounting method | (606) | (1,459) |
Deferred tax liabilities | (44,817) | (39,520) |
Net deferred tax liability | $ (23,729) | $ (22,210) |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) from Continuing Operations, Less Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 18,094 | $ 10,195 | $ 11,962 |
State | 3,232 | 1,916 | 1,546 |
Total Current | 21,326 | 12,111 | 13,508 |
Deferred: | |||
Federal | 1,389 | 2,187 | 1,448 |
State | 133 | 215 | 903 |
Total Deferred | 1,522 | 2,402 | 2,351 |
Total Income Tax Expense (Benefit) | $ 22,848 | $ 14,513 | $ 15,859 |
Income Taxes - Statutory Rate a
Income Taxes - Statutory Rate and Provisions for Income Taxes Percent (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal Statutory Tax Rate | 35.00% | 35.00% | 35.00% |
State Income Taxes, net of federal benefit | 3.90% | 3.50% | 3.50% |
Nondeductible Expense | 2.50% | 2.30% | 3.10% |
Credits and other | (0.00%) | (0.90%) | (0.00%) |
Effective Tax Rate | 41.40% | 39.90% | 41.60% |
Income Taxes Income Taxes- Stat
Income Taxes Income Taxes- Statutory Rate and Provisions for Income Taxes (Detail) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income taxes computed at federal statutory tax rate | $ 19,314 | $ 12,723 | $ 13,360 |
State income taxes, net of federal benefit | 2,184 | 1,407 | 1,641 |
Nondeductible expenses | 1,352 | 766 | 1,022 |
Other items | 278 | (99) | 101 |
Income tax credit | (280) | (284) | (265) |
Total Income Tax Expense (Benefit) | $ 22,848 | $ 14,513 | $ 15,859 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Tax Disclosure [Abstract] | |
Tax payable as an unrecognized tax benefit | $ 3.4 |
Interest Expense For Unrecognized Tax Position | $ 0.2 |
Income Taxes - Total Amounts of
Income Taxes - Total Amounts of Unrecognized Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 3,415 | $ 3,415 |
Increases (decreases) in unrecognized tax benefits as a result of: | ||
Tax positions taken during the current period | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Thousands | Jun. 18, 2014USD ($)Instruments | Sep. 30, 2015 | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 225,000 | |||
Letters Of Credit Sublimit | $ 15,000 | |||
Line of Credit Facility, Expiration Date | Jun. 18, 2019 | |||
Debt Instrument, Interest Rate, Effective Percentage | 2.24% | |||
Line of credit facility drawn | $ 98,000 | $ 60,000 | ||
Letter of credit outstanding | $ 9,800 | $ 7,100 | ||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage of credit fee on unused amount | 0.225% | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage of credit fee on unused amount | 0.375% | |||
Federal Funds Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Eurodollar [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | 2.42% | ||
Number Of Outstanding Debt Instrument | Instruments | 15 | |||
Eurodollar [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||
Eurodollar [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | |||
Base Rate [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||
Base Rate [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Debt - Schedule of Principal Pa
Debt - Schedule of Principal Payments on Long-Term Debt (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |
2,016 | $ 241 |
2,017 | 256 |
2,018 | 260 |
2,019 | 98,027 |
2,020 | 0 |
Total | $ 98,784 |
Shareholders' Equity- Stock Opt
Shareholders' Equity- Stock Options Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | ||
Options Outstanding, Beginning Balance | 15,000 | |
Options Granted, Number of Shares | 0 | |
Stock options exercised, Shares | (9,500) | |
Options Forfeited or Expired, Number of Shares | 0 | |
Options Outstanding, Ending Balance | 5,500 | 15,000 |
Option Exercisable, Number of Shares | 5,500 | |
Options Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 16.88 | |
Options Granted, Weighted Average Exercise Price | 0 | |
Options Exercised, Weighted Average Exercise Price | 15.21 | |
Options Forfeited or Expired in Period, Weighted Average Exercise Price | 0 | |
Options Outstanding, Weighted Average Exercise Price, Ending Balance | 20.09 | $ 16.88 |
Options Exercisable, Weighted Average Exercise Price | $ 20.09 | |
Options Outstanding, Weighted Average Remaining Contractual Term | 6 months | 1 year |
Options Exercisable, Weighted Average Remaining Contractual Term | 6 months | |
Beginning Balance, Aggregate Intrinsic Value | $ 214,575 | |
Ending Balance, Aggregate Intrinsic Value | $ 214,575 | |
Options Exercisable, Aggregate Intrinsic Value | $ 140,470 |
Shareholders' Equity- Nonvested
Shareholders' Equity- Nonvested Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Nonvested Shares Outstanding, Number of Shares, Beginning Balance | 524,287 | ||
Granted, Number of Shares | 199,065 | ||
Vested, Number of Shares | 177,887 | ||
Forfeited, Number of Shares | 18,374 | ||
Nonvested Shares Outstanding, Number of Shares, Ending Balance | 527,091 | 524,287 | |
Nonvested Shares Outstanding, Weighted Average Grant Date Fair Value, Beginning Balance | $ 22.56 | ||
Grants, Weighted Average Grant Date Fair Value | 34.06 | $ 23.59 | $ 21.45 |
Vested, Weighted Average Grant Date Fair Value | 23.28 | ||
Forfeited, Weighted Average Grant Date Fair Value | 20.57 | ||
Nonvested Shares Outstanding, Weighted Average Grant Date Fair Value, Ending Balance | $ 26.64 | $ 22.56 |
Stockholders' Equity- Shares of
Stockholders' Equity- Shares of Common Stock Issued During 2014 under Employee Stock Purchase Plan (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares Available, Beginning Balance | 213,760 | 61,247 | ||
Shares Authorized for Issuance | 250,000 | 250,000 | ||
Shares Issued during Period (Shares) | 22,723 | 36,305 | 38,459 | |
Shares Available, Ending Balance | 213,760 | 61,247 | ||
Shares Issued during Period (per Share Price) | $ 34.37 | $ 21.49 | $ 20.39 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Par value of common stock repurchased | $ 0.01 | $ 0.01 | |
Total amount authorized for repurchase under company's stock repurchase program | $ 50,000,000 | ||
Common stock reserved for issuance | 1,500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 491,037 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | ||
Compensation expense related to stock options | $ 0 | ||
Vesting period of non-vested shares | 5 years | ||
Total unrecognized compensation cost related to nonvested shares of common stock granted | $ 9,500,000 | ||
Weighted average period of cost recognized | 2 years 11 months 14 days | ||
Total fair value of shares of common stock vested | $ 4,100,000 | $ 3,900,000 | |
Compensation expense related to nonvested stock grants | $ 4,200,000 | $ 4,100,000 | $ 3,900,000 |
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 | ||
Shares redeemed to satisfy personal tax obligations | 42,197 | 40,716 | 40,608 |
Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested stock grants to employees | 182,865 | 172,545 | 198,243 |
Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non vested stock grants to Independent director | 16,200 | 26,900 | 24,300 |
Leases - Additional information
Leases - Additional information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Number Of License Lease Arrangements | 3 | ||
Home nursing agencies | 4 | ||
Hospice agencies | 3 | ||
Operating Leases Start Period | 2,007 | ||
Operating Leases Expiration Period | 2,017 | ||
Operating Leases, Rent Expense | $ 20,700 | $ 21,100 | $ 17,200 |
Operating Lease Period Minimum | 3 years | ||
Operating Lease Period Maximum | 10 years | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 25,207 | ||
Minimum Miles Required per Year for the Fleet Lease | 12,000 | ||
Minimum Period of the Fleet Lease | 12 months | ||
Fleet Lease's Expense | $ 7,200 | 3,600 | |
Lease Agreement For License | $ 500 | $ 400 | |
Minimum [Member] | |||
Operating Lease Period | 1 year | ||
Maximum [Member] | |||
Operating Lease Period | 4 years | ||
Lease 1 [Member] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 200 | ||
Lease Agreement For License | $ 200 | ||
Lease 2 [Member] | |||
Lease Agreement For License | $ 300 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Commitments Under Non-cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 25,207 |
2,017 | 11,066 |
2,018 | 6,766 |
2,019 | 4,052 |
2,020 | 2,609 |
Thereafter | 5,532 |
Operating Leases, Future Minimum Payments Due, Total | $ 55,232 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Participants contribution | $ 18,000 | ||
Employer contribution | 2.00% | ||
Employer contribution | 20.00% | ||
Initial vesting period of employer contribution | 2 years | ||
Full vesting period of employer contribution | 6 years | ||
Contribution expenses | $ 5,400,000 | $ 4,700,000 | $ 3,700,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Receivable from Insurance Carrier | $ 550 | $ 7,850 | |
Joint Venture Buy Sell Option Period | 30 days |
Segment Information- Segment In
Segment Information- Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||
Net service revenue | $ 218,993 | $ 204,122 | $ 200,172 | $ 193,079 | $ 193,371 | $ 187,713 | $ 188,867 | $ 163,681 | $ 816,366 | $ 733,632 | $ 658,283 |
Cost of service revenue | 480,878 | 434,775 | 383,464 | ||||||||
Provision for bad debts | 19,243 | 15,780 | 13,929 | ||||||||
General and administrative expenses | 248,629 | 233,945 | 213,633 | ||||||||
Impairment of intangibles and other | 1,273 | 3,646 | 520 | ||||||||
Operating income | 66,343 | 45,486 | 46,737 | ||||||||
Interest expense | (2,302) | (2,486) | (1,995) | ||||||||
Non-operating income | 457 | 265 | 263 | ||||||||
Income from continuing operations before income taxes and noncontrolling interests | 64,498 | 43,265 | 45,005 | ||||||||
Income tax expense | 22,848 | 14,513 | 15,859 | ||||||||
Income from continuing operations | 41,650 | 28,752 | 29,146 | ||||||||
Less net income attributable to noncontrolling interests | 9,315 | 6,915 | 6,804 | ||||||||
Net Income Attributable to LHC Group Inc.'s Common Stockholders | 7,735 | $ 8,845 | $ 8,950 | $ 6,805 | 5,534 | $ 6,174 | $ 6,061 | $ 4,068 | 32,335 | 21,837 | 22,342 |
Total assets | 566,054 | 491,739 | 566,054 | 491,739 | 422,226 | ||||||
Home-based services [Member] | |||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||
Net service revenue | 613,188 | 564,966 | 523,512 | ||||||||
Cost of service revenue | 354,750 | 329,856 | 302,589 | ||||||||
Provision for bad debts | 15,736 | 13,072 | 11,623 | ||||||||
General and administrative expenses | 191,135 | 187,281 | 175,056 | ||||||||
Impairment of intangibles and other | 1,245 | 3,269 | 344 | ||||||||
Operating income | 50,322 | 31,488 | 33,900 | ||||||||
Interest expense | (1,819) | (1,969) | (1,591) | ||||||||
Non-operating income | 397 | 201 | 142 | ||||||||
Income from continuing operations before income taxes and noncontrolling interests | 48,900 | 29,720 | 32,451 | ||||||||
Income tax expense | 17,173 | 10,999 | 12,634 | ||||||||
Income from continuing operations | 31,727 | 18,721 | 19,817 | ||||||||
Less net income attributable to noncontrolling interests | 7,424 | 5,121 | 4,596 | ||||||||
Net Income Attributable to LHC Group Inc.'s Common Stockholders | 24,303 | 13,600 | 15,221 | ||||||||
Total assets | 394,392 | 386,511 | 394,392 | 386,511 | 355,858 | ||||||
Facility-based services [Member] | |||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||
Net service revenue | 76,122 | 73,347 | 75,392 | ||||||||
Cost of service revenue | 46,146 | 45,504 | 44,265 | ||||||||
Provision for bad debts | 689 | 926 | 1,086 | ||||||||
General and administrative expenses | 22,471 | 21,231 | 21,349 | ||||||||
Impairment of intangibles and other | 0 | 175 | 1 | ||||||||
Operating income | 6,816 | 5,511 | 8,691 | ||||||||
Interest expense | (207) | (249) | (195) | ||||||||
Non-operating income | 19 | 19 | 95 | ||||||||
Income from continuing operations before income taxes and noncontrolling interests | 6,628 | 5,281 | 8,591 | ||||||||
Income tax expense | 2,347 | 1,454 | 1,517 | ||||||||
Income from continuing operations | 4,281 | 3,827 | 7,074 | ||||||||
Less net income attributable to noncontrolling interests | 958 | 708 | 1,252 | ||||||||
Net Income Attributable to LHC Group Inc.'s Common Stockholders | 3,323 | 3,119 | 5,822 | ||||||||
Total assets | 38,786 | 36,354 | 38,786 | 36,354 | 36,569 | ||||||
Hospice Entity [Member] | |||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||
Net service revenue | 85,854 | 67,621 | 56,172 | ||||||||
Cost of service revenue | 50,906 | 39,804 | 34,212 | ||||||||
Provision for bad debts | 1,002 | 909 | 1,215 | ||||||||
General and administrative expenses | 26,517 | 18,882 | 16,210 | ||||||||
Impairment of intangibles and other | 0 | 202 | 175 | ||||||||
Operating income | 7,429 | 7,824 | 4,360 | ||||||||
Interest expense | (253) | (249) | (200) | ||||||||
Non-operating income | 38 | 43 | 26 | ||||||||
Income from continuing operations before income taxes and noncontrolling interests | 7,214 | 7,618 | 4,186 | ||||||||
Income tax expense | 2,541 | 1,955 | 1,797 | ||||||||
Income from continuing operations | 4,673 | 5,663 | 2,389 | ||||||||
Less net income attributable to noncontrolling interests | 1,077 | 1,122 | 956 | ||||||||
Net Income Attributable to LHC Group Inc.'s Common Stockholders | 3,596 | 4,541 | 1,433 | ||||||||
Total assets | 101,641 | 34,847 | 101,641 | 34,847 | 28,557 | ||||||
Community-Based Services [Member] | |||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||
Net service revenue | 41,202 | 27,698 | 3,207 | ||||||||
Cost of service revenue | 29,076 | 19,611 | 2,398 | ||||||||
Provision for bad debts | 1,816 | 873 | 5 | ||||||||
General and administrative expenses | 8,506 | 6,551 | 1,018 | ||||||||
Impairment of intangibles and other | 28 | 0 | 0 | ||||||||
Operating income | 1,776 | 663 | (214) | ||||||||
Interest expense | (23) | (19) | (9) | ||||||||
Non-operating income | 3 | 2 | 0 | ||||||||
Income from continuing operations before income taxes and noncontrolling interests | 1,756 | 646 | (223) | ||||||||
Income tax expense | 787 | 105 | (89) | ||||||||
Income from continuing operations | 969 | 541 | (134) | ||||||||
Less net income attributable to noncontrolling interests | (144) | (36) | 0 | ||||||||
Net Income Attributable to LHC Group Inc.'s Common Stockholders | 1,113 | 577 | (134) | ||||||||
Total assets | $ 31,235 | $ 34,027 | $ 31,235 | $ 34,027 | $ 1,242 |
Allowance for Uncollectible A64
Allowance for Uncollectible Accounts - Allowance for Uncollectible Accounts Activity and Ending Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 18,582 | $ 14,334 | |
Additions | (19,243) | (15,780) | $ (13,929) |
Deductions | 11,113 | 11,532 | 11,458 |
Ending balance | $ 26,712 | $ 18,582 | $ 14,334 |
Concentration of Risk - Additio
Concentration of Risk - Additional Information (Detail) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Risks and Uncertainties [Abstract] | |||
Percentage Of Net Service Revenue Accounted By Facility | 21.00% | 22.70% | 26.00% |
Unaudited Summarized Quarterl66
Unaudited Summarized Quarterly Financial Information - Unaudited Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net service revenue | $ 218,993 | $ 204,122 | $ 200,172 | $ 193,079 | $ 193,371 | $ 187,713 | $ 188,867 | $ 163,681 | $ 816,366 | $ 733,632 | $ 658,283 |
Gross margin | 90,053 | 83,249 | 83,533 | 78,653 | 80,579 | 74,591 | 77,340 | 66,347 | 335,488 | 298,857 | 274,819 |
Net Income Attributable to LHC Group Inc.'s Common Stockholders | $ 7,735 | $ 8,845 | $ 8,950 | $ 6,805 | $ 5,534 | $ 6,174 | $ 6,061 | $ 4,068 | $ 32,335 | $ 21,837 | $ 22,342 |
Earnings Per Share - Basic: | |||||||||||
Net income attributable to LHC Group, Inc.' common stockholders | $ 0.44 | $ 0.51 | $ 0.51 | $ 0.39 | $ 0.32 | $ 0.36 | $ 0.35 | $ 0.24 | $ 1.86 | $ 1.27 | $ 1.31 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Net income attributable to LHC Group, Inc.' common stockholders | $ 0.44 | $ 0.50 | $ 0.51 | $ 0.39 | $ 0.32 | $ 0.36 | $ 0.35 | $ 0.24 | $ 1.84 | $ 1.26 | $ 1.30 |
Weighted Average Shares Outstanding: | |||||||||||
Basic | 17,447,691 | 17,436,731 | 17,410,971 | 17,322,791 | 17,274,677 | 17,260,078 | 17,233,264 | 17,148,043 | 17,405,379 | 17,229,026 | 17,049,794 |
Diluted | 17,647,483 | 17,610,953 | 17,529,100 | 17,489,483 | 17,419,423 | 17,356,916 | 17,277,224 | 17,268,716 | 17,547,531 | 17,315,333 | 17,132,751 |