Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 26, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 18,285,192 | ||
Entity Public Float | $ 1,100 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 2,849 | $ 3,264 |
Receivables: | ||
Patient accounts receivable, less allowance for uncollectible accounts of $23,556 and $29,036, respectively | 161,898 | 124,803 |
Other receivables | 3,163 | 5,115 |
Amounts due from governmental entities | 830 | 942 |
Total receivables, net | 165,891 | 130,860 |
Prepaid income taxes | 7,006 | |
Prepaid expenses | 13,042 | 9,821 |
Other current assets | 12,177 | 5,796 |
Total current assets | 200,965 | 149,741 |
Property, building and equipment, net of accumulated depreciation of $43,565 and $35,226, respectively | 46,453 | 43,251 |
Goodwill | 392,601 | 307,317 |
Intangible assets, net of accumulated amortization of $13,041 and $10,968, respectively | 134,610 | 102,006 |
Other assets | 19,073 | 11,756 |
Total assets | 793,702 | 614,071 |
Current liabilities: | ||
Accounts payable and other accrued liabilities | 39,750 | 26,805 |
Salaries, wages and benefits payable | 44,747 | 34,265 |
Self insurance reserve | 12,450 | 10,691 |
Current portion of long-term debt | 286 | 252 |
Amounts due to governmental entities | 5,019 | 4,955 |
Income tax payable | 0 | 3,499 |
Total current liabilities | 102,252 | 80,467 |
Deferred income taxes | 27,466 | 31,941 |
Revolving credit facility | 144,000 | 87,000 |
Long-term debt, less current portion | 0 | 544 |
Total liabilities | 273,718 | 199,952 |
Noncontrolling interest-redeemable | 13,393 | 12,567 |
LHC Group, Inc. stockholders' equity: | ||
Preferred stock – $0.01 par value: 5,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock - $0.01 par value: 40,000,000 shares authorized; 22,640,046 and 22,429,041 shares issued in 2017 and 2016, respectively | 226 | 224 |
Treasury stock - 4,890,504 and 4,828,679 shares at cost, respectively | (42,249) | (39,135) |
Additional paid-in capital | 126,490 | 119,748 |
Retained earnings | 364,401 | 314,289 |
Total LHC Group, Inc. stockholders' equity | 448,868 | 395,126 |
Nonredeemable Noncontrolling Interest | 57,723 | 6,426 |
Total stockholders' equity | 506,591 | 401,552 |
Total liabilities and stockholders' equity | $ 793,702 | $ 614,071 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Patient accounts receivable, allowance for uncollectible accounts | $ 23,556 | $ 29,036 |
Property, building and equipment, accumulated depreciation | 43,565 | 35,226 |
Intangible assets, accumulated amortization | $ 13,041 | $ 10,968 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 22,640,046 | 22,429,041 |
Treasury stock at cost, shares | 4,890,504 | 4,828,679 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net service revenue | $ 1,072,086 | $ 914,823 | $ 816,366 |
Cost of service revenue | 675,810 | 557,650 | 480,878 |
Gross margin | 396,276 | 357,173 | 335,488 |
Provision for bad debts | 9,484 | 14,790 | 19,243 |
General and administrative expenses | 310,539 | 270,622 | 247,919 |
Impairment of intangibles and other | 1,511 | 0 | 1,273 |
Loss on disposal of assets | 60 | 1,199 | 710 |
Operating income | 74,682 | 70,562 | 66,343 |
Interest expense | (3,876) | (2,936) | (2,302) |
Non-operating income | 524 | 492 | 457 |
Income from continuing operations before income taxes and noncontrolling interests | 71,330 | 68,118 | 64,498 |
Income tax expense | 10,944 | 22,176 | 22,848 |
Income from continuing operations | 60,386 | 45,942 | 41,650 |
Less net income attributable to noncontrolling interests | 10,274 | 9,359 | 9,315 |
Net Income Attributable to LHC Group Inc.'s Common Stockholders | $ 50,112 | $ 36,583 | $ 32,335 |
Earnings Per Share - Basic: | |||
Net income attributable to LHC Group, Inc.' common stockholders | $ 2.83 | $ 2.08 | $ 1.86 |
Earnings Per Share - Diluted: | |||
Net income attributable to LHC Group, Inc.' common stockholders | $ 2.79 | $ 2.07 | $ 1.84 |
Weighted Average Shares Outstanding: | |||
Basic | 17,715,992 | 17,559,477 | 17,405,379 |
Diluted | 17,961,018 | 17,682,820 | 17,547,531 |
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, 2014 | $ 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 | |||||||
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 acquired | 155 | 155 | 0 | ||||||
Noncontrolling interest distributions | (1,637) | (1,637) | (6,687) | ||||||
Stock options exercised, Shares | 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, shares | 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 | $ 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 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 36,583 | 1,373 | 37,956 | 7,986 | |||||
Income from continuing operations | $ 45,942 | $ 45,942 | |||||||
Noncontrolling interest acquired | 1,783 | 1,783 | |||||||
Noncontrolling interest distributions | (1,341) | (1,341) | (7,827) | ||||||
Stock options exercised, Shares | 5,500 | ||||||||
Stock options exercised | 109 | 109 | |||||||
Sale of noncontrolling interest | (931) | 1,400 | 469 | ||||||
Nonvested Stock Compensation | 4,872 | 4,872 | |||||||
Issuance of vested stock | (2) | ||||||||
Issuance of vested stock, shares | 174,969 | ||||||||
Treasury shares redeemed to pay income tax | $ (1,996) | (1,996) | |||||||
Treasury shares redeemed to pay income tax, shares | (52,119) | (52,119) | |||||||
Excess tax benefits-vesting nonvested stock | 995 | 995 | |||||||
Issuance of common stock under Employee Stock Purchase Plan | $ 0 | 912 | 912 | ||||||
Shares Issued during Period (Shares) | 24,149 | 24,149 | |||||||
Balances, Amount at Dec. 31, 2016 | $ 401,552 | $ 224 | $ (39,135) | 119,748 | 314,289 | 6,426 | 401,552 | 12,567 | |
Balances, Shares at Dec. 31, 2016 | 22,429,041 | 4,828,679 | |||||||
Ending Balance, Treasury Shares at Dec. 31, 2016 | (4,828,679) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 50,112 | (595) | 49,517 | 10,869 | |||||
Income from continuing operations | $ 60,386 | ||||||||
Noncontrolling interest acquired | 53,657 | 53,657 | |||||||
Noncontrolling interest distributions | (2,047) | (2,047) | (9,335) | ||||||
Purchase of additional controlling interest | 368 | 368 | 1,120 | ||||||
Sale of noncontrolling interest | 122 | 282 | 404 | 412 | |||||
Nonvested Stock Compensation | 5,964 | 5,964 | |||||||
Issuance of vested stock | $ 2 | (2) | |||||||
Issuance of vested stock, shares | 192,463 | ||||||||
Treasury shares redeemed to pay income tax | $ (3,114) | (3,114) | |||||||
Treasury shares redeemed to pay income tax, shares | (61,825) | (61,825) | |||||||
Issuance of common stock under Employee Stock Purchase Plan | 1,026 | 1,026 | |||||||
Shares Issued during Period (Shares) | 18,542 | 18,542 | |||||||
Balances, Amount at Dec. 31, 2017 | $ 506,591 | $ 226 | $ (42,249) | $ 126,490 | $ 364,401 | $ 57,723 | $ 506,591 | $ 13,393 | |
Balances, Shares at Dec. 31, 2017 | 22,640,046 | 4,890,504 | |||||||
Ending Balance, Treasury Shares at Dec. 31, 2017 | (4,890,504) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Income from continuing operations | $ 60,386 | $ 45,942 | $ 41,650 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and Amortization Expense | 13,422 | 12,160 | 11,955 |
Provision for bad debts | 9,484 | 14,790 | 19,243 |
Stock-based compensation expense | 5,964 | 4,872 | 4,225 |
Deferred income taxes | (4,475) | 7,402 | 1,518 |
Loss on disposal of assets | 60 | 1,199 | 710 |
Impairment of intangibles and other | 1,511 | 1,280 | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Receivables | (36,390) | (28,873) | (27,951) |
Prepaid expenses and other assets | (26,973) | 1,034 | (3,793) |
Prepaid income taxes | (7,006) | 1,641 | 441 |
Accounts payable and accrued expenses | 19,666 | 9,182 | 10,526 |
Income tax payable | (3,499) | 84 | |
Net amounts due to/from governmental entities | 176 | (1,961) | 130 |
Net cash provided by operating activities | 32,326 | 67,472 | 59,934 |
Investing activities | |||
Cash paid for acquisitions, primarily goodwill and intangible assets | (64,598) | (23,156) | (70,572) |
Purchases of property, building and equipment | (10,176) | (16,009) | (13,283) |
Advanced payments on acquisitions | 0 | (11,488) | |
Goodwill related to prior year adjustments | 0 | 273 | |
Net cash (used in) investing activities | (74,774) | (50,380) | (83,855) |
Financing activities | |||
Proceeds from line of credit | 96,000 | 38,000 | 83,000 |
Payments on line of credit | (39,000) | (49,000) | (45,000) |
Excess tax benefits from vesting of stock awards | 0 | 1,303 | 914 |
Proceeds from employee stock purchase plan | 1,026 | 912 | 782 |
Payments on debt | (260) | (238) | (233) |
Noncontrolling interest distributions | (11,382) | (9,413) | (8,324) |
Purchase of additional controlling interest | (1,488) | 0 | (275) |
Sale of noncontrolling interest | 251 | 356 | 0 |
Withholding taxes paid on stock-based compensation | (3,114) | (1,996) | (1,479) |
Proceeds from exercise of stock options | 0 | 109 | 144 |
Net cash (used in) provided by financing activities | 42,033 | (19,967) | 29,529 |
Change in cash | (415) | (2,875) | 5,608 |
Cash at beginning of period | 3,264 | 6,139 | 531 |
Cash at end of period | 2,849 | 3,264 | 6,139 |
Supplemental disclosures of cash flow information | |||
Interest paid | 3,853 | 3,123 | 1,870 |
Income taxes paid | $ 25,199 | $ 11,533 | $ 20,361 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
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. 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, 2017 , the Company, through its wholly and majority-owned subsidiaries, equity joint ventures, controlled affiliates, and management agreements, operated 442 service providers in 27 states within the continental United States. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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 in the Company's accompanying consolidated financial statements and notes to the consolidated financial statements. Actual results could differ from those estimates. The most significant estimates relate to revenue recognition, collectability of accounts receivable and impairment 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 through direct ownership of majority interest or controlling member ownership of such entities. 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 2017 2016 2015 Wholly owned subsidiaries 51.0 % 57.2 % 55.2 % Equity joint ventures 47.0 41.2 42.9 Other 2.0 1.6 1.9 100.0 % 100.0 % 100.0 % All significant inter-company accounts and transactions have been eliminated in consolidation. All business combinations accounted for under the acquisition method have been included in the consolidated financial statements from the respective dates of acquisition. The Company consolidates equity joint venture entities as the Company has controlling interests, has voting control over these entities, or has ability to exercise significant influence in these entities. The members of the Company's equity joint ventures participate in profits and losses in proportion to their equity interests. The Company has various management services agreements under which the Company manages certain operations of agencies. The Company does not consolidate these agencies because the Company does not have an ownership interest in, nor does it have an obligation to absorb losses of, or right to receive benefits from the entities that own the agencies. 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. 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. Medicare contributes to the net service revenue of the Company's home health services, hospice services, and facility-based services. Medicaid and other payors contribute to the net service revenue of all of the Company's services. The following table sets forth the percentage of net service revenue earned by category of payor for the years ending December 31: Payor 2017 2016 2015 Medicare 71.0 % 74.5 % 74.5 % Medicaid 1.8 1.8 1.5 Managed Care, Commercial, and Other 27.2 23.7 24.0 100.0 % 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 base payment adjustments for case-mix and geographic wage differences and 2% sequestration reduction for episodes beginning after March 31, 2013. In addition, final payments 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 or transferred from another provider before completing the episode; or (d) a payment adjustment based upon the level of therapy services required. Adjustments outlined above are automatically recognized in net service revenue when changes occur during the period in which the services are provided to the patient. Net service revenue and related patient accounts receivable are recorded at amounts estimated to be realized from Medicare for services rendered. Hospice Services Hospice services provided by the Company are paid by Medicare under a per diem payment system. The Company receives one of four predetermined daily rates based upon the level of care the Company furnishes. The Company records net service revenue from hospice services based on the daily 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. Beginning with cap year ended October 1, 2014, Center for Medicare and Medicaid Services ("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. The Company's managed care and other payors reimburse the Company based upon a predetermined fee schedule or on an episodic basis, depending on the terms of the applicable contract. Accordingly, the Company recognizes revenue from managed care and other payors in the same manner as the Company recognizes revenue from Medicare or Medicaid. Accounts Receivable and Allowances for Uncollectible Accounts The Company reports accounts receivable net of estimated allowances for uncollectible accounts and adjustments. Accounts receivable are uncollateralized and primarily consist of amounts due from Medicare, 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. The credit risk associated with receivables from other payors is limited due to the significance of Medicare as the primary payor. The Company believes the credit risk associated with its Medicare accounts, which have historically exceeded 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 RAP received for that episode will be recouped by Medicare from any other Medicare claims in process for that particular provider. The RAP and final claim must then be resubmitted. For subsequent episodes of care contiguous with the first episode for a particular patient, the Company submits a RAP for 50% instead of 60% of the estimated reimbursement. The Company’s services to the Medicare population are paid at prospectively set amounts that can be determined at the time services are rendered. The Company’s Medicaid reimbursement is based on a predetermined fee schedule applied to each individual service it provides. The Company’s managed care contracts and contracts with other payors provide for payments based upon a predetermined fee schedule or an episodic basis, depending on the terms of the applicable contract. 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 its acquisitions in accordance with ASC 805, "Business Combinations" ("ASC 805") using the acquisition method of accounting. Assets typically acquired consist primarily of Medicare licenses, trade names, certificates of need, and/or non-compete agreements. 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. Goodwill represents the excess of the cost of an acquired entity over the net amounts assigned to assets acquired and liabilities assumed. The operations of the acquisitions are included in the consolidated financial statements from their respective dates of acquisition. Acquisition transactions that occurred in 2017 are further described in Note 3 and goodwill and intangible assets are discussed in Note 4. Goodwill and Intangible Assets In accordance with ASC 350, "Intangibles - Goodwill and Other" ("ASC 350") goodwill and intangible assets with indefinite lives are reviewed by the Company at least annually for impairment. The Company performs its annual impairment review of goodwill at November 30, and when a triggering event occurs between annual impairment tests. For 2017 , 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 2017 , 2016 or 2015 related to the annual impairment testing. Components of the Company's reporting units are represented by individual subsidiaries or joint ventures with individual licenses to conduct operations within geographic markets as limited by the terms of each license. The Company considers each component as individual businesses, as discrete financial information is available and management regularly reviews the operating results of those businesses. During the year ended December 31, 2017, the Company recognized a disposal of $1.5 million related to goodwill associated with the closure of underperforming locations. The impairment was calculated using a market approach. 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 ten years. The Company also has indefinite-lived assets that are not subject to amortization expense such as trade names, certificates of need, and Medicare 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 lives 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, 2017 and 2016, the Company did not record an impairment charge related to indefinite-lived intangible assets. During the twelve months ended December 31, 2015 , the Company recorded impairment charges related to indefinite-lived intangible assets of $0.6 million . 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 recorded at cost. Property and equipment acquired in connection with business combinations are recorded at estimated fair value in accordance with the acquisition method of accounting in accordance with ASC 805. Expenditures that increase capacities or extend useful lives are capitalized to the appropriate property, building and equipment accounts. Costs and related accumulated depreciation associated with 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. 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. In accordance with ASC 360, "Property, Plant, and Equipment", the Company evaluates its long-lived assets for possible impairment whenever events or changes in circumstances occur that indicate that the carrying amount of the asset may not be recoverable. There were no impairment charges recognized during the periods ended December 31, 2017 , 2016 and 2015 . The following table describes the Company’s components of property, building and equipment for the years ended December 31, 2017 and 2016 (amounts in thousands): 2017 2016 Land $ 2,033 $ 2,033 Building and improvements 14,166 11,363 Transportation equipment 11,363 11,220 Fixed equipment 780 1,090 Office furniture and medical equipment 61,676 52,771 90,018 78,477 Less accumulated depreciation 43,565 35,226 $ 46,453 $ 43,251 Depreciation expense for the years ended December 31, 2017 , 2016 and 2015 was $13.4 million , $12.2 million and $12.0 million , respectively, which was recorded in general and administrative expenses. Amortization expense related to definite-lived intangible assets is included in depreciation expense. Noncontrolling Interest The Company classifies noncontrolling interests of its joint venture parties based upon a review of the legal provisions governing the redemption of such interests. In each of the Company’s joint ventures, those provisions are embodied within the joint venture’s operating agreement. For joint ventures with operating agreement provisions that establish an obligation for the Company to purchase the third party partners’ noncontrolling interests other than as a result of events that lead to a liquidation of the joint venture, such noncontrolling interests are classified as redeemable noncontrolling interests in temporary equity. For joint ventures with operating agreement provisions that establish an obligation that the Company purchase the third party partners’ noncontrolling interests, but which obligation is triggered by events that lead to a liquidation of the joint venture, such noncontrolling interests are classified as nonredeemable noncontrolling interests in permanent equity. Additionally, for joint ventures with operating agreement provisions that do not establish an obligation for the Company to purchase the third party partners’ noncontrolling interests (e.g., where the Company has the option, but not the obligation, to purchase the third party partners’ noncontrolling interests), such noncontrolling interests are classified as nonredeemable noncontrolling interests in permanent equity. The Company’s equity joint ventures that are classified as redeemable noncontrolling interests are subject to operating agreement provisions that require the Company to purchase the noncontrolling partner’s interest upon the occurrence of certain triggering events, which are defined as the bankruptcy of the partner or the partner’s exclusion from the Medicare or Medicaid programs. These triggering events and the related repurchase provisions are specific to each redeemable equity joint venture, since the triggering of a repurchase obligation for any one redeemable noncontrolling interest in an equity joint venture does not necessarily impact any of the other redeemable noncontrolling interests in other equity joint ventures. Upon the occurrence of a triggering event requiring the purchase of a redeemable noncontrolling interest, the Company would be required to purchase the noncontrolling partner’s interest based upon a valuation methodology set forth in the applicable joint venture agreement. Redeemable noncontrolling interests and nonredeemable noncontrolling interests are initially recorded at their fair value as of the closing date of the transaction establishing the joint venture. Such fair values are determined using various accepted valuation methods, including the income approach, the market approach, the cost approach, and a combination of one or more of these approaches. A number of facts and circumstances concerning the operation of the joint venture are evaluated for each transaction, including (but not limited to) the ability to choose management, control over acquiring or liquidating assets, and control over the joint venture’s strategy and direction, in order to determine the fair value of the noncontrolling interest. Subsequent to the closing date of the transaction establishing the joint venture, recorded values for both redeemable and nonredeemable noncontrolling interests are adjusted at the end of each reporting period for (a) comprehensive income (loss) that is attributed to the noncontrolling interest, which is calculated by multiplying the noncontrolling interest percentage by the comprehensive income (loss) of the joint venture’s operations during the reporting period, (b) dividends paid to the noncontrolling interest partner during the reporting period, and (c) any other transactions that increase or decrease the Company’s ownership interest in the joint venture, as a result of which the Company retains its controlling interest. If the Company determines based upon its analysis as of the end of each reporting period in accordance with authoritative accounting guidance, that it is not probable that an event would occur to otherwise require the redemption of a redeemable noncontrolling interest (i.e., the date for such event is not set or such event is not certain to occur), then the Company does not adjust the recorded amount of such redeemable noncontrolling interest. The carrying amount of each redeemable equity instrument presented in temporary equity for the twelve months ended December 31, 2017 is not less than the initial amount reported for each instrument. The activity of noncontrolling interest-redeemable for the twelve months ended December 31, 2017 is summarized in the Company’s Statements of Changes in Equity. Based upon the Company’s evaluation of the redemption provisions concerning redeemable noncontrolling interests as of December 31, 2017, the Company determined in accordance with authoritative accounting guidance that it was not probable that an event otherwise requiring redemption of any redeemable noncontrolling interest would occur (i.e., the date for such event was not set or such event is not certain to occur). Therefore, none of the redeemable noncontrolling interests were identified as mandatorily redeemable interests at such times, and the Company did not record any values in respect of any mandatorily redeemable interests. Stock-Based Compensation The Company accounts for its stock-based awards in accordance with provisions of ASC 718, "Compensation - Stock Compensation" ("ASC 718"). The Company grants restricted stock or restricted stock units to employees and members of its Board of Directors as a form of compensation. In accordance with ASC 718, 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, 2017 , 2016 and 2015 : 2017 2016 2015 Weighted average number of shares outstanding for basic per share calculation 17,715,992 17,559,477 17,405,379 Effect of dilutive potential shares: Options — 863 3,663 Nonvested restricted stock 245,026 122,480 138,489 Adjusted weighted average shares for diluted per share calculation 17,961,018 17,682,820 17,547,531 Antidilutive shares — 219,855 200,525 Recently Adopted Accounting Pronouncements In March 2016, as part of its Simplification Initiative, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation ("ASU 2016-09"), which seeks to reduce complexity in accounting standards. The areas for simplification in ASU 2016-09 involve several aspects of the accounting for share-based payment transactions, including (1) accounting for income taxes, (2) classification of excess tax benefits on the statement of cash flow, (3) forfeitures, (4) minimum statutory tax withholding requirements, (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax withholding purposes, (6) the practical expedient for estimating the expected term, and (7) intrinsic value. The Company adopted the new standard on its effective date of January 1, 2017 and elected to apply this adoption prospectively. All excess tax benefits and deficiencies in the current and future periods will be recognized as income tax expense in the Company's consolidated financial statements in the reporting period in which they occur. The Company recorded excess tax benefits of $1.0 million in income tax expense for the twelve months ended December 31, 2017. Additionally, the Company elected to continue to apply an estimated rate of forfeiture to its compensation expense for share-based awards. Recently Issued Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , ("ASU 2014-09") 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 2014-09 will replace the majority of existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for reporting periods beginning after December 15, 2017. The standard permits the use of either the full retrospective or cumulative effect transition method. As the Company progresses with evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures, the Company has determined that it will not create a material impact to its consolidated financial statements upon implementation on January 1, 2018. Currently, the Company anticipates adopting the new standard using the full retrospective method for all periods presented. Upon adoption, in applying the retrospective method, the Company expects to present the amounts that are currently included in the provision for bad debts as a reduction to net service revenue related to an implicit price concession. In February 2016, the FASB issued ASU No. 2016-02, Leases , ("ASU 2016-02") which requires lessees to recognize qualifying leases on the statement of financial position. Qualifying leases will be classified as right-of-use assets and lease liabilities. The new standard is effective on January 1, 2019. Early adoption is permitted. ASU 2016-02 mandates a modified retrospective transition method for all entities. The Company anticipates that the adoption of ASU 2016-02 will result in a material increase in total assets and total liabilities. The Company continues to evaluate the effect that ASU 2016-02 will have on its related disclosures. |
Acquisitions and Joint Ventures
Acquisitions and Joint Ventures | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Joint Ventures | 3. Acquisitions and Joint Ventures 2017 Acquisitions On January 1, 2017, the Company formed a joint venture with LifePoint Health, Inc. ("LifePoint"). LifePoint contributed 28 home health agencies, 12 hospice agencies, and one inpatient hospice unit to the joint venture during the twelve months ended December 31, 2017. The Company acquired majority ownership of the membership interests of these agencies. These providers conduct home health operations in Arizona, Colorado, Louisiana, Michigan, North Carolina, Pennsylvania, Tennessee, Texas, and Virginia; and conduct hospice operations in Michigan, North Carolina, Pennsylvania, Tennessee, and Virginia, and conduct inpatient hospice operations in North Carolina. On June 1, 2017, the Company formed a joint venture with Baptist Memorial Health Care ("Baptist"). Baptist contributed three home health agencies and six hospice agencies, and one inpatient hospice unit to the joint venture during the twelve months ended December 31, 2017. The Company acquired majority ownership of the membership interests of these agencies. These providers conduct home health and hospice operations in Mississippi and Tennessee, and conduct inpatient hospice operations in Tennessee. On September 1, 2017, the Company formed a joint venture with CHRISTUS Continuing Care (“CHRISTUS”). CHRISTUS contributed seven home health agencies, five hospice agencies, one inpatient hospice unit, one community-based agency, and six LTACH agencies to the joint venture during the twelve months ended December 31, 2017. The Company acquired majority ownership of the membership interests of these agencies. These providers conduct home health and hospice operations in Louisiana and Texas, conduct inpatient hospice operations in Texas, conduct community-based operations in Texas; and conduct LTACH operations in Arkansas, Louisiana, and Texas. In separate transactions, the Company acquired five home health agencies, two hospice agencies, and one pharmacy during the twelve months ended December 31, 2017. The total aggregate purchase price for these transactions was $80.2 million , of which $10.4 million was paid in December 2016 and $64.6 million was paid in cash during the twelve months ended December 31, 2017. The difference between the total aggregate purchase price and cash payments relates to acquired liabilities for each business combination. The purchase prices were determined based on the Company’s analysis of comparable acquisitions and the target market’s potential future cash flows. The fair values assigned to certain assets acquired and liabilities assumed in relation to the Company’s acquisition that occurred during the third and fourth quarters of 2017 have been prepared on a preliminary basis with information currently available and are subject to change. Specifically, the Company is further assessing the valuation of certain tangible and intangible assets acquired and obligations assumed pending the final appraisals. The Company expects to finalize its analysis during 2018. 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 $ 75,028 Fair value of total consideration transferred 75,028 Recognized amounts of identifiable assets acquired and liabilities assumed Patient account receivable 5,679 Trade name 14,238 Certificates of needs/licenses 20,207 Other identifiable intangible assets 6 Other assets and (liabilities), net 2,143 Total identifiable assets 42,273 Noncontrolling interest 53,657 Goodwill, including noncontrolling interest of $34,409 $ 86,412 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 conducted preliminary assessments and recognized provisional amounts in its initial accounting for the acquisitions of majority ownership of two joint venture partnerships for all identified assets in accordance with the requirements of ASC 805. The Company is continuing its review of these matters during the measurement period. If new information about facts and circumstances that existed at the acquisition date is obtained and indicates adjustments are necessary, the acquisition accounting will be revised to adjust to the provisional amounts initially recognized. The following table contains unaudited pro forma consolidated income statement information assuming the 2017 acquisitions closed January 1, 2016 (amount in thousands, except earnings per share): 2017 2016 Net service revenue 1,126,909 1,043,166 Operating income 78,317 73,779 Net income 52,300 38,520 Basic earnings per share 2.95 2.19 Diluted earnings per share 2.91 2.18 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. 2016 Acquisitions The total aggregate purchase price for the Company’s acquisitions, which closed in the twelve months ended December 31, 2016, was $24.1 million , of which $23.1 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 expects its portion of goodwill to be fully tax deductible. |
Goodwill and Other Intangibles,
Goodwill and Other Intangibles, Net | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 (amounts in thousands): Home health reporting unit Hospice reporting unit Community- based reporting unit Facility-based reporting unit Total Balance as of December 31, 2015 $ 202,995 $ 58,136 $ 17,972 $ 11,591 $ 290,694 Goodwill from acquisitions 6,760 7,460 848 1,493 16,561 Goodwill related to noncontrolling interests 580 355 — 340 1,275 Goodwill related to prior period net working capital adjustments 504 (1,717 ) — — (1,213 ) Balance as of December 31, 2016 $ 210,839 $ 64,234 $ 18,820 $ 13,424 $ 307,317 Goodwill from acquisitions 30,623 15,000 6,220 160 52,003 Goodwill related to noncontrolling interests 21,469 9,580 3,501 (141 ) 34,409 Goodwill related to impairment on disposals (1,470 ) — — — (1,470 ) Goodwill related to prior year adjustments (5 ) — — 347 342 Balance as of December 31, 2017 $ 261,456 $ 88,814 $ 28,541 $ 13,790 $ 392,601 The Company determined that there was no impairment for the goodwill of any reporting units as of December 31, 2017, 2016 and 2015 based on the Company's annual impairment testing; however, the Company did record $1.5 million of disposal of goodwill during the year ended December 31, 2017 due to the closure of underperforming locations. The amount of disposal of goodwill was determined using prices of comparable business in the market. This was recorded in impairment of intangibles and other on the Company's consolidated statements of income. The Company performed an impairment analysis on its indefinite-lived intangible assets related to the Company's trade names, licenses and certificates of need and determined that it is not more likely than not that the fair values of the indefinite-lived intangible assets are less than its carrying amount as of November 30, 2017. The following tables summarize the changes in intangible assets during the twelve months ended December 31, 2017 and 2016 (amounts in thousands): December 31, 2017 Remaining useful life Gross carrying amount Accumulated amortization Net carrying amount Indefinite-lived assets : Trade names Indefinite $ 78,299 $ — $ 78,299 Certificates of need/licenses Indefinite 53,493 — 53,493 Total 131,792 — 131,792 Amortizing assets: Trade names 4 months – 10 years 10,127 (7,547 ) 2,580 Non-compete agreements 2 months – 2 years 5,732 (5,494 ) 238 Total 15,859 (13,041 ) 2,818 Balance at December 31, 2017 $ 147,651 $ (13,041 ) $ 134,610 December 31, 2016 Remaining useful life Gross carrying amount Accumulated amortization Net carrying amount Indefinite-lived assets : Trade names Indefinite $ 64,672 $ — $ 64,672 Certificates of need/licenses Indefinite 33,327 — 33,327 Total $ 97,999 $ — $ 97,999 Amortizing assets: Trade names 8 months – 9 years $ 9,294 $ (5,991 ) $ 3,303 Non-compete agreements 2 months – 3 years 5,681 (4,977 ) 704 Total 14,975 (10,968 ) 4,007 Balance at December 31, 2016 $ 112,974 $ (10,968 ) $ 102,006 Intangible assets of $88.1 million , net of accumulated amortization, related to the home health services segment, $32.0 million related to the hospice segment, $9.5 million related to the community-based services segment and $5.0 million related to the facility-based services segment as of December 31, 2017. Amortization for the years ended December 31, 2017 , 2016 and 2015 was $2.1 million , $2.5 million and $1.9 million , respectively, which was recorded in general and administrative expenses. The estimated intangible asset amortization expense for each of the five years subsequent to December 31, 2017 is as follows (amounts in thousands): Year Amortization amount 2018 $ 1,467 2019 448 2020 236 2021 105 2022 100 Total $ 2,356 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 were as follows (amounts in thousands): 2017 2016 Deferred tax assets: Allowance for uncollectible accounts $ 5,224 $ 9,735 Accrued employee benefits 4,147 5,532 Stock compensation 663 1,004 Accrued self-insurance 2,157 2,762 Acquisition costs 2,064 1,781 Net operating loss carry forward 1,299 1,880 Intangible asset impairment 21 38 Uncertain tax position—state tax portion — 63 Uncertain tax position - interest expense — 90 Other 91 155 Capital loss carryforward 12 154 Valuation allowance (44 ) (44 ) Deferred tax assets $ 15,634 $ 23,150 Deferred tax liabilities: Amortization of intangible assets (35,955 ) (45,622 ) Tax depreciation in excess of book depreciation (5,988 ) (8,397 ) Prepaid expenses (623 ) (817 ) Non-accrual experience accounting method (534 ) (255 ) Deferred tax liabilities (43,100 ) (55,091 ) Net deferred tax liability $ (27,466 ) $ (31,941 ) 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): 2017 2016 2015 Current: Federal $ 12,798 $ 12,563 $ 18,094 State 2,621 2,371 3,232 15,419 14,934 21,326 Deferred: Federal (6,273 ) 6,223 1,389 State 1,798 1,019 133 (4,475 ) 7,242 1,522 Total income tax expense $ 10,944 $ 22,176 $ 22,848 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: 2017 2016 2015 Federal statutory tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 4.4 3.8 3.9 Nondeductible expenses 3.2 2.6 2.5 Uncertain tax position — (3.3 ) — TCJA Enactment (22.9 ) — — Excess Tax Benefit (1.6 ) — — Credits and other (0.1 ) (0.4 ) — Effective tax rate 18.0 % 37.7 % 41.4 % 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, 2013. On December 22, 2017, the U.S. enacted significant changes to U.S. tax law following the passage and signing of “Tax Cuts and Jobs Act” or the “TCJA”. The TCJA is complex and significantly changes the U.S. corporate income tax system by, among other things, reducing the Federal corporate income tax rate from 35% to 21%. Given the significant changes resulting from the TCJA, the estimated financial impacts for fourth-quarter and full-year 2017 are provisional and subject to further analysis, interpretation and clarification of the TCJA, which could result in changes to these estimates during 2018. The reduction in the corporate tax rate under the TCJA will require a one-time revaluation of certain deferred tax-related assets and liabilities to reflect their value at the lower corporate tax rate of 21%. As such, the Company experienced a reduction in the value of these assets and liabilities of approximately $14.0 million . This reduction in value is based on balances as of December 31, 2017. Solely based on this reduction in deferred tax assets and liabilities, the Company experienced a decrease in the provision for income taxes of approximately $14.0 million for the fourth quarter of 2017, which reduced the effective tax rate by 22.9% . No material uncertain tax positions exist as of December 31, 2017. As of December 31, 2016, $1.3 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. In December 2016, the Company signed a final settlement offer from the IRS that reduced the unrecognized tax benefit from $3.4 million to $1.3 million . The Company received approval from Joint Committee Review in February 2017 to finalize the settlement. The settlement was paid in the second quarter of 2017. No other material uncertain tax positions exist as of December 31, 2017. A reconciliation of the total amounts of unrecognized tax benefits follows (amounts in thousands): Total unrecognized tax benefits as of December 31, 2016 $ 1,315 Increases (decreases) in unrecognized tax benefits as a result of: Tax positions taken during the current period (1,315 ) Total unrecognized tax benefits as of December 31, 2017 $ — The Company recognizes interest and penalties related to uncertain tax positions in interest expense and general and administrative expenses, respectively. During the year ended December 31, 2017, the Company recognized an increase of $0.02 million in interest expense due to the final settlement paid related to the overall uncertain tax position. During the years ended December 31, 2016 and 2015, 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, 2017 | |
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, 2017 was 5.50% and the Eurodollar rate was 3.57% . As of December 31, 2017 , the interest rate on outstanding borrowings was 3.43% . As of December 31, 2017 the Company had $144.0 million drawn and letters of credit in the amount of $9.6 million outstanding under the credit facility. At December 31, 2016 , the Company had $87.0 million drawn and letters of credit in the amount of $11.0 million outstanding under the credit facility. The scheduled principal payments on long-term debt for each of the five years subsequent to December 31, 2017 is as follows (amounts in thousands): Year Principal payment amount 2018 $ 286 2019 144,000 2020 — 2021 — 2022 — Total $ 144,286 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 7. Stockholders’ Equity 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 391,737 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 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 2017 , 2016 and 2015 , respectively, 139,310 , 220,800 and 182,865 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 2017 , 2016 and 2015 , respectively, 11,700 , 15,300 and 16,200 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 each of the first three 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, 2017, 2016 and 2015 were $48.52 , $37.99 and $34.06 , respectively. The following table represents the nonvested stock activity for the year ended December 31, 2017 : Number of Shares Weighted Average Grant Date Fair Value Nonvested shares outstanding at January 1, 2017 574,711 $ 31.61 Granted 151,010 48.52 Vested (192,463 ) 28.95 Forfeited (3,793 ) 39.30 Nonvested shares outstanding at December 31, 2017 529,465 $ 37.34 As of December 31, 2017 , there was $13.4 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 2.99 years . The total fair value of shares vested in the year ended December 31, 2017 was $5.6 million and the total fair value of shares vested in the years December 31, 2016 and 2015 was $4.5 million and $4.1 million , respectively. 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 $6.0 million , $4.9 million and $4.2 million in compensation expense related to non-vested stock grants in the years ended December 31, 2017, 2016 and 2015 , 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 2017 , 2016 and 2015 under the Employee Stock Purchase Plan: Number of Shares Weighted Average Per Share Price Shares available as of December 31, 2014 236,483 Shares issued in 2015 22,723 $ 34.37 Shares issued in 2016 24,149 $ 37.79 Shares issued in 2017 18,542 $ 55.40 Shares available as of December 31, 2017 171,069 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 61,825 , 52,119 and 42,197 shares of common stock related to these tax obligations during the years ended December 31, 2017, 2016 and 2015 , respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | 8. Leases 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 $25.1 million , $20.8 million and $20.7 million for the years ended December 31, 2017 , 2016 and 2015 , 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 $1.2 million , $5.3 million and $7.2 million for the years ended December 31, 2017, 2016 and 2015 , respectively. The fleet program was terminated during the year ended December 31, 2017. Future minimum rental commitments under non-cancelable operating leases are as follows (amounts in thousands): Year Total 2018 $ 23,119 2019 16,408 2020 12,120 2021 8,881 2022 5,514 Thereafter 7,172 $ 73,214 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 , 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 $7.9 million , $6.3 million and $5.4 million in the years ended December 31, 2017 , 2016 and 2015 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Contingencies The Company provides services in a highly regulated industry and is a party to various proceedings and regulatory and other governmental and internal audits and investigations in the ordinary course of business (including audits by Zone Program Integrity Contractors ("ZPICs") and Recovery Audit Contractors ("RACs") and investigations resulting from the Company's obligation to self-report suspected violations of law). Management cannot predict the ultimate outcome of any regulatory and other governmental and internal audits and investigations. While such audits and investigations are the subject of administrative appeals, the appeals process, even if successful, may take several years to resolve. The Department of Justice, CMS, or other federal and state enforcement and regulatory agencies may conduct additional investigations related to the Company's businesses in the future. These audits and investigations have caused and could potentially continue to cause delays in collections, recoupments from governmental payors. Currently, the Company has recorded $16.9 million in other assets, which are from government payors related to the disputed finding of pending ZPIC audits. Additionally, these audits may subject the Company to sanctions, damages, extrapolation of damage findings, additional recoupments, fines, and other penalties (some of which may not be covered by insurance), which may, either individually or in the aggregate, have a material adverse effect on the Company's business and financial condition. On January 18, 2018, Jordan Rosenblatt, a purported shareholder of Almost Family, Inc. (“Almost Family”) filed a complaint for Violations of the Securities Exchange Act of 1934 in the United States District Court for the Western District of Kentucky, styled Rosenblatt v. Almost Family, Inc., et al. , Case No. 3:18-cv-40-TBR (the “Rosenblatt Action”). The Rosenblatt Action was filed against the Company, Almost Family, Almost Family’s board of directors, and Hammer Merger Sub. The complaint in the Rosenblatt Action (“Complaint”) asserts that the Form S-4 Registration Statement (“Registration Statement”) filed on December 21, 2017 contains false and misleading statements with respect to the Merger. The Complaint asserts claims against Almost Family and its board of directors for violations of Section 14(a) of the 1934 Act in connection with the dissemination of the Registration Statement, and asserts claims against the Almost Family board of directors and the Company for violations of Section 20(a) of the 1934 Act as controlling persons of Almost Family. The Rosenblatt Action seeks, among other things, an injunction enjoining the Merger from closing and an award of attorneys’ fees and costs. In addition to the Rosenblatt Action, two additional complaints were filed against Almost Family in the United States District Court for the District of Delaware alleging similar violations as the Rosenblatt Action. While the Company is not named as a party in either of these additional complaints, these additional complaints also seek, among other things, an injunction enjoining both the vote of the Almost Family stockholders with respect to the Merger and the closing of the Merger, monetary damages and an award of attorneys’ fees and costs from Almost Family. The Company believes that the claims asserted in these lawsuits are entirely without merit and intend to defend these lawsuits vigorously. 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 consolidated financial information. 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, 2017 | |
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. The following tables summarize the Company’s segment information for the twelve months ended December 31, 2017 , 2016 and 2015 (amounts in thousands): Year Ended December 31, 2017 Home health services Hospice services Community-based services Facility-based services Total Net service revenue $ 783,507 $ 159,197 $ 46,909 $ 82,473 $ 1,072,086 Cost of service revenue 482,179 103,969 35,244 54,418 675,810 Provision for bad debts 5,924 1,910 750 900 9,484 General and administrative expenses 229,264 45,516 9,946 25,813 310,539 Impairment of intangibles and other 1,511 — — — 1,511 Loss (gain) on disposal of assets 101 22 — (63 ) 60 Operating income 64,528 7,780 969 1,405 74,682 Interest expense (2,906 ) (582 ) (194 ) (194 ) (3,876 ) Non-operating income 360 71 3 90 524 Income before income taxes and noncontrolling interests 61,982 7,269 778 1,301 71,330 Income tax expense 9,509 1,057 156 222 10,944 Net income 52,473 6,212 622 1,079 60,386 Less net income (loss) attributable to noncontrolling interests 9,102 1,248 (111 ) 35 10,274 Net income attributable to LHC Group, Inc.’s common stockholders $ 43,371 $ 4,964 $ 733 $ 1,044 $ 50,112 Total assets $ 534,385 $ 155,230 $ 48,216 $ 55,871 $ 793,702 Year Ended December 31, 2016 Home health services Hospice services Community-based services Facility-based services Total Net service revenue $ 665,896 $ 134,948 $ 43,891 $ 70,088 $ 914,823 Cost of service revenue 398,450 83,359 32,603 43,238 557,650 Provision for bad debts 9,609 3,401 797 983 14,790 General and administrative expenses 203,418 37,207 8,785 21,212 270,622 Impairment of intangibles and other — — — — — Loss on disposal of assets 857 338 49 (45 ) 1,199 Operating income 53,562 10,643 1,657 4,700 70,562 Interest expense (2,216 ) (317 ) (144 ) (259 ) (2,936 ) Non-operating income 422 25 14 31 492 Income before income taxes and noncontrolling interests 51,768 10,351 1,527 4,472 68,118 Income tax expense 16,505 3,485 651 1,535 22,176 Net income 35,263 6,866 876 2,937 45,942 Less net income (loss) attributable to noncontrolling interests 6,876 1,867 (58 ) 674 9,359 Net income attributable to LHC Group, Inc.’s common stockholders $ 28,387 $ 4,999 $ 934 $ 2,263 $ 36,583 Total assets $ 427,782 $ 116,090 $ 33,520 $ 36,679 $ 614,071 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 190,591 26,437 8,465 22,426 247,919 Impairment of intangibles and other 1,245 — 28 — 1,273 Loss on disposal of assets 544 80 41 45 710 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 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 Net income 31,727 4,673 969 4,281 41,650 Less net income 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 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , 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, 2017 | |
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, 2017 , 2016 and 2015 (amounts in thousands): Year Beginning of Year Balance Additions Deductions End of Year Balance 2017 $ 29,036 $ 9,484 $ 14,964 $ 23,556 2016 26,712 14,790 12,466 29,036 2015 18,582 19,243 11,113 26,712 |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | 14. Concentration of Risk The Company’s facilities in Louisiana, Mississippi, Alabama, Arkansas, and Tennessee accounted for approximately 55.0% , 58.4% and 61.1% of net service revenue during the years ended December 31, 2017 , 2016 and 2015 , respectively. Any material change in the current economic or competitive conditions in these states 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, 2017 | |
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 2017 Second Quarter 2017 Third Quarter 2017 Fourth Quarter 2017 Net service revenue $ 246,618 $ 260,210 $ 272,872 $ 292,386 Gross margin 92,248 99,052 100,016 104,960 Net income attributable to LHC Group, Inc.’s common stockholders 9,467 11,304 10,906 18,435 Net income attributable to LHC Group' Inc.'s common stockholders Basic earnings per share: $ 0.54 $ 0.64 $ 0.61 $ 1.04 Diluted earnings per share: $ 0.53 $ 0.63 $ 0.61 $ 1.02 Weighted average shares outstanding: Basic 17,643,463 17,728,567 17,740,818 17,749,872 Diluted 17,817,880 17,964,387 18,010,522 18,043,297 First Quarter 2016 Second Quarter 2016 Third Quarter 2016 Fourth Quarter 2016 Net service revenue $ 222,552 $ 226,031 $ 230,797 $ 235,443 Gross margin 86,951 88,903 89,965 91,354 Net income attributable to LHC Group, Inc.’s common stockholders 7,686 9,464 9,616 9,817 Net income attributable to LHC Group' Inc.'s common stockholders Basic earnings per share: $ 0.44 $ 0.54 $ 0.55 $ 0.56 Diluted earnings per share: $ 0.44 $ 0.54 $ 0.54 $ 0.55 Weighted average shares outstanding: Basic 17,485,766 17,566,097 17,588,163 17,597,190 Diluted 17,633,549 17,685,147 17,719,473 17,764,066 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. |
Proposed Merger with Almost Fam
Proposed Merger with Almost Family | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Event [Abstract] | |
Proposed Merger with Almost Family | 16. Proposed Merger with Almost Family On November 15, 2017, the Company announced the execution of an Agreement and Plan of Merger (the “Merger Agreement”) entered into among the Company, Almost Family, Inc. (“Almost Family”), and Hammer Merger Sub, Inc. (“Merger Sub”), a wholly owned subsidiary of the Company, providing for a “merger of equals” business combination of the Company and Almost Family. The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, Merger Sub will be merged with and into Almost Family (the “ Merger ”), with Almost Family continuing as the surviving corporation and as a wholly-owned subsidiary of the Company. Under the terms of the Merger Agreement, which was unanimously approved by both our board of directors and the Almost Family board of directors, the stockholders of Almost Family will be entitled to receive 0.9150 shares of our common stock for each share of Almost Family common stock, plus the cash equivalent of any fractional share. Upon the closing of the Merger, the Company stockholders will own approximately 58.5% and the Almost Family stockholders will own approximately 41.5% of the combined company. On February 22, 2018, the Company and Almost Family issued a joint press release announcing that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, with respect to the Merger, has expired, satisfying one of the important conditions to the proposed Merger. The Merger Agreement contains certain termination rights for both the Company and Almost Family, including if the Merger is not consummated on or before July 1, 2018 (subject to extension to October 1, 2018 in certain circumstances) and if the required approval of the stockholders of either the Company or Almost Family is not obtained. The Merger Agreement further provides that, upon termination of the Merger Agreement under specified circumstances, including the termination of the Merger Agreement by the Company or Almost Family as a result of an adverse change in the recommendation of the other party’s board of directors, the Company may be required to pay to Almost Family, or Almost Family may be required to pay to the Company, as applicable, a termination fee of $30 million . Further, if the Merger Agreement is terminated as a result of the stockholders of either the Company or Almost Family failing to approve the transaction, the Company may be required to reimburse to Almost Family, or Almost Family may be required to reimburse to the Company, the other party’s expenses in connection with the proposed transaction, up to a maximum of $5 million . The transaction, which is expected to be completed on April 1, 2018, is subject to the receipt of stockholder approvals and other customary closing conditions. For additional information concerning the proposed transaction is included in the final proxy statement/prospectus, which was filed with the SEC on February 13, 2018 and can be accessed on the SEC’s website. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 in the Company's accompanying consolidated financial statements and notes to the consolidated financial statements. 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 through direct ownership of majority interest or controlling member ownership of such entities. 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 2017 2016 2015 Wholly owned subsidiaries 51.0 % 57.2 % 55.2 % Equity joint ventures 47.0 41.2 42.9 Other 2.0 1.6 1.9 100.0 % 100.0 % 100.0 % All significant inter-company accounts and transactions have been eliminated in consolidation. All business combinations accounted for under the acquisition method have been included in the consolidated financial statements from the respective dates of acquisition. The Company consolidates equity joint venture entities as the Company has controlling interests, has voting control over these entities, or has ability to exercise significant influence in these entities. The members of the Company's equity joint ventures participate in profits and losses in proportion to their equity interests. The Company has various management services agreements under which the Company manages certain operations of agencies. The Company does not consolidate these agencies because the Company does not have an ownership interest in, nor does it have an obligation to absorb losses of, or right to receive benefits from the entities that own the agencies. 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. |
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. Medicare contributes to the net service revenue of the Company's home health services, hospice services, and facility-based services. Medicaid and other payors contribute to the net service revenue of all of the Company's services. The following table sets forth the percentage of net service revenue earned by category of payor for the years ending December 31: Payor 2017 2016 2015 Medicare 71.0 % 74.5 % 74.5 % Medicaid 1.8 1.8 1.5 Managed Care, Commercial, and Other 27.2 23.7 24.0 100.0 % 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 base payment adjustments for case-mix and geographic wage differences and 2% sequestration reduction for episodes beginning after March 31, 2013. In addition, final payments 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 or transferred from another provider before completing the episode; or (d) a payment adjustment based upon the level of therapy services required. Adjustments outlined above are automatically recognized in net service revenue when changes occur during the period in which the services are provided to the patient. Net service revenue and related patient accounts receivable are recorded at amounts estimated to be realized from Medicare for services rendered. Hospice Services Hospice services provided by the Company are paid by Medicare under a per diem payment system. The Company receives one of four predetermined daily rates based upon the level of care the Company furnishes. The Company records net service revenue from hospice services based on the daily 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. Beginning with cap year ended October 1, 2014, Center for Medicare and Medicaid Services ("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. The Company's managed care and other payors reimburse the Company based upon a predetermined fee schedule or on an episodic basis, depending on the terms of the applicable contract. Accordingly, the Company recognizes revenue from managed care and other payors in the same manner as the Company recognizes revenue from Medicare or Medicaid. |
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. The credit risk associated with receivables from other payors is limited due to the significance of Medicare as the primary payor. The Company believes the credit risk associated with its Medicare accounts, which have historically exceeded 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 RAP received for that episode will be recouped by Medicare from any other Medicare claims in process for that particular provider. The RAP and final claim must then be resubmitted. For subsequent episodes of care contiguous with the first episode for a particular patient, the Company submits a RAP for 50% instead of 60% of the estimated reimbursement. The Company’s services to the Medicare population are paid at prospectively set amounts that can be determined at the time services are rendered. The Company’s Medicaid reimbursement is based on a predetermined fee schedule applied to each individual service it provides. The Company’s managed care contracts and contracts with other payors provide for payments based upon a predetermined fee schedule or an episodic basis, depending on the terms of the applicable contract. 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 its acquisitions in accordance with ASC 805, "Business Combinations" ("ASC 805") using the acquisition method of accounting. Assets typically acquired consist primarily of Medicare licenses, trade names, certificates of need, and/or non-compete agreements. 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. Goodwill represents the excess of the cost of an acquired entity over the net amounts assigned to assets acquired and liabilities assumed. 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 In accordance with ASC 350, "Intangibles - Goodwill and Other" ("ASC 350") goodwill and intangible assets with indefinite lives are reviewed by the Company at least annually for impairment. The Company performs its annual impairment review of goodwill at November 30, and when a triggering event occurs between annual impairment tests. For 2017 , 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 2017 , 2016 or 2015 related to the annual impairment testing. Components of the Company's reporting units are represented by individual subsidiaries or joint ventures with individual licenses to conduct operations within geographic markets as limited by the terms of each license. The Company considers each component as individual businesses, as discrete financial information is available and management regularly reviews the operating results of those businesses. During the year ended December 31, 2017, the Company recognized a disposal of $1.5 million related to goodwill associated with the closure of underperforming locations. The impairment was calculated using a market approach. 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 ten years. The Company also has indefinite-lived assets that are not subject to amortization expense such as trade names, certificates of need, and Medicare 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 lives 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, 2017 and 2016, the Company did not record an impairment charge related to indefinite-lived intangible assets. During the twelve months ended December 31, 2015 , the Company recorded impairment charges related to indefinite-lived intangible assets of $0.6 million . |
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 recorded at cost. Property and equipment acquired in connection with business combinations are recorded at estimated fair value in accordance with the acquisition method of accounting in accordance with ASC 805. Expenditures that increase capacities or extend useful lives are capitalized to the appropriate property, building and equipment accounts. Costs and related accumulated depreciation associated with 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. 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. In accordance with ASC 360, "Property, Plant, and Equipment", the Company evaluates its long-lived assets for possible impairment whenever events or changes in circumstances occur that indicate that the carrying amount of the asset may not be recoverable. There were no impairment charges recognized during the periods ended December 31, 2017 , 2016 and 2015 . The following table describes the Company’s components of property, building and equipment for the years ended December 31, 2017 and 2016 (amounts in thousands): 2017 2016 Land $ 2,033 $ 2,033 Building and improvements 14,166 11,363 Transportation equipment 11,363 11,220 Fixed equipment 780 1,090 Office furniture and medical equipment 61,676 52,771 90,018 78,477 Less accumulated depreciation 43,565 35,226 $ 46,453 $ 43,251 Depreciation expense for the years ended December 31, 2017 , 2016 and 2015 was $13.4 million , $12.2 million and $12.0 million , respectively, which was recorded in general and administrative expenses. Amortization expense related to definite-lived intangible assets is included in depreciation expense. |
Noncontrolling Interest | Noncontrolling Interest The Company classifies noncontrolling interests of its joint venture parties based upon a review of the legal provisions governing the redemption of such interests. In each of the Company’s joint ventures, those provisions are embodied within the joint venture’s operating agreement. For joint ventures with operating agreement provisions that establish an obligation for the Company to purchase the third party partners’ noncontrolling interests other than as a result of events that lead to a liquidation of the joint venture, such noncontrolling interests are classified as redeemable noncontrolling interests in temporary equity. For joint ventures with operating agreement provisions that establish an obligation that the Company purchase the third party partners’ noncontrolling interests, but which obligation is triggered by events that lead to a liquidation of the joint venture, such noncontrolling interests are classified as nonredeemable noncontrolling interests in permanent equity. Additionally, for joint ventures with operating agreement provisions that do not establish an obligation for the Company to purchase the third party partners’ noncontrolling interests (e.g., where the Company has the option, but not the obligation, to purchase the third party partners’ noncontrolling interests), such noncontrolling interests are classified as nonredeemable noncontrolling interests in permanent equity. The Company’s equity joint ventures that are classified as redeemable noncontrolling interests are subject to operating agreement provisions that require the Company to purchase the noncontrolling partner’s interest upon the occurrence of certain triggering events, which are defined as the bankruptcy of the partner or the partner’s exclusion from the Medicare or Medicaid programs. These triggering events and the related repurchase provisions are specific to each redeemable equity joint venture, since the triggering of a repurchase obligation for any one redeemable noncontrolling interest in an equity joint venture does not necessarily impact any of the other redeemable noncontrolling interests in other equity joint ventures. Upon the occurrence of a triggering event requiring the purchase of a redeemable noncontrolling interest, the Company would be required to purchase the noncontrolling partner’s interest based upon a valuation methodology set forth in the applicable joint venture agreement. Redeemable noncontrolling interests and nonredeemable noncontrolling interests are initially recorded at their fair value as of the closing date of the transaction establishing the joint venture. Such fair values are determined using various accepted valuation methods, including the income approach, the market approach, the cost approach, and a combination of one or more of these approaches. A number of facts and circumstances concerning the operation of the joint venture are evaluated for each transaction, including (but not limited to) the ability to choose management, control over acquiring or liquidating assets, and control over the joint venture’s strategy and direction, in order to determine the fair value of the noncontrolling interest. Subsequent to the closing date of the transaction establishing the joint venture, recorded values for both redeemable and nonredeemable noncontrolling interests are adjusted at the end of each reporting period for (a) comprehensive income (loss) that is attributed to the noncontrolling interest, which is calculated by multiplying the noncontrolling interest percentage by the comprehensive income (loss) of the joint venture’s operations during the reporting period, (b) dividends paid to the noncontrolling interest partner during the reporting period, and (c) any other transactions that increase or decrease the Company’s ownership interest in the joint venture, as a result of which the Company retains its controlling interest. If the Company determines based upon its analysis as of the end of each reporting period in accordance with authoritative accounting guidance, that it is not probable that an event would occur to otherwise require the redemption of a redeemable noncontrolling interest (i.e., the date for such event is not set or such event is not certain to occur), then the Company does not adjust the recorded amount of such redeemable noncontrolling interest. The carrying amount of each redeemable equity instrument presented in temporary equity for the twelve months ended December 31, 2017 is not less than the initial amount reported for each instrument. The activity of noncontrolling interest-redeemable for the twelve months ended December 31, 2017 is summarized in the Company’s Statements of Changes in Equity. Based upon the Company’s evaluation of the redemption provisions concerning redeemable noncontrolling interests as of December 31, 2017, the Company determined in accordance with authoritative accounting guidance that it was not probable that an event otherwise requiring redemption of any redeemable noncontrolling interest would occur (i.e., the date for such event was not set or such event is not certain to occur). Therefore, none of the redeemable noncontrolling interests were identified as mandatorily redeemable interests at such times, and the Company did not record any values in respect of any mandatorily redeemable interests. |
Share-based Compensation, Option and Incentive Plans | Stock-Based Compensation The Company accounts for its stock-based awards in accordance with provisions of ASC 718, "Compensation - Stock Compensation" ("ASC 718"). The Company grants restricted stock or restricted stock units to employees and members of its Board of Directors as a form of compensation. In accordance with ASC 718, 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, 2017 , 2016 and 2015 : 2017 2016 2015 Weighted average number of shares outstanding for basic per share calculation 17,715,992 17,559,477 17,405,379 Effect of dilutive potential shares: Options — 863 3,663 Nonvested restricted stock 245,026 122,480 138,489 Adjusted weighted average shares for diluted per share calculation 17,961,018 17,682,820 17,547,531 Antidilutive shares — 219,855 200,525 |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2016, as part of its Simplification Initiative, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation ("ASU 2016-09"), which seeks to reduce complexity in accounting standards. The areas for simplification in ASU 2016-09 involve several aspects of the accounting for share-based payment transactions, including (1) accounting for income taxes, (2) classification of excess tax benefits on the statement of cash flow, (3) forfeitures, (4) minimum statutory tax withholding requirements, (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax withholding purposes, (6) the practical expedient for estimating the expected term, and (7) intrinsic value. The Company adopted the new standard on its effective date of January 1, 2017 and elected to apply this adoption prospectively. All excess tax benefits and deficiencies in the current and future periods will be recognized as income tax expense in the Company's consolidated financial statements in the reporting period in which they occur. The Company recorded excess tax benefits of $1.0 million in income tax expense for the twelve months ended December 31, 2017. Additionally, the Company elected to continue to apply an estimated rate of forfeiture to its compensation expense for share-based awards. Recently Issued Accounting Pronouncements On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , ("ASU 2014-09") 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 2014-09 will replace the majority of existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for reporting periods beginning after December 15, 2017. The standard permits the use of either the full retrospective or cumulative effect transition method. As the Company progresses with evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures, the Company has determined that it will not create a material impact to its consolidated financial statements upon implementation on January 1, 2018. Currently, the Company anticipates adopting the new standard using the full retrospective method for all periods presented. Upon adoption, in applying the retrospective method, the Company expects to present the amounts that are currently included in the provision for bad debts as a reduction to net service revenue related to an implicit price concession. In February 2016, the FASB issued ASU No. 2016-02, Leases , ("ASU 2016-02") which requires lessees to recognize qualifying leases on the statement of financial position. Qualifying leases will be classified as right-of-use assets and lease liabilities. The new standard is effective on January 1, 2019. Early adoption is permitted. ASU 2016-02 mandates a modified retrospective transition method for all entities. The Company anticipates that the adoption of ASU 2016-02 will result in a material increase in total assets and total liabilities. The Company continues to evaluate the effect that ASU 2016-02 will have on its related disclosures. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 2016 2015 Wholly owned subsidiaries 51.0 % 57.2 % 55.2 % Equity joint ventures 47.0 41.2 42.9 Other 2.0 1.6 1.9 100.0 % 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 2017 2016 2015 Medicare 71.0 % 74.5 % 74.5 % Medicaid 1.8 1.8 1.5 Managed Care, Commercial, and Other 27.2 23.7 24.0 100.0 % 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, 2017 and 2016 (amounts in thousands): 2017 2016 Land $ 2,033 $ 2,033 Building and improvements 14,166 11,363 Transportation equipment 11,363 11,220 Fixed equipment 780 1,090 Office furniture and medical equipment 61,676 52,771 90,018 78,477 Less accumulated depreciation 43,565 35,226 $ 46,453 $ 43,251 |
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, 2017 , 2016 and 2015 : 2017 2016 2015 Weighted average number of shares outstanding for basic per share calculation 17,715,992 17,559,477 17,405,379 Effect of dilutive potential shares: Options — 863 3,663 Nonvested restricted stock 245,026 122,480 138,489 Adjusted weighted average shares for diluted per share calculation 17,961,018 17,682,820 17,547,531 Antidilutive shares — 219,855 200,525 |
Acquisitions and Joint Ventur25
Acquisitions and Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 $ 75,028 Fair value of total consideration transferred 75,028 Recognized amounts of identifiable assets acquired and liabilities assumed Patient account receivable 5,679 Trade name 14,238 Certificates of needs/licenses 20,207 Other identifiable intangible assets 6 Other assets and (liabilities), net 2,143 Total identifiable assets 42,273 Noncontrolling interest 53,657 Goodwill, including noncontrolling interest of $34,409 $ 86,412 |
Pro Forma Consolidated Income Statement Information | The following table contains unaudited pro forma consolidated income statement information assuming the 2017 acquisitions closed January 1, 2016 (amount in thousands, except earnings per share): 2017 2016 Net service revenue 1,126,909 1,043,166 Operating income 78,317 73,779 Net income 52,300 38,520 Basic earnings per share 2.95 2.19 Diluted earnings per share 2.91 2.18 |
Goodwill and Other Intangible26
Goodwill and Other Intangibles, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 (amounts in thousands): Home health reporting unit Hospice reporting unit Community- based reporting unit Facility-based reporting unit Total Balance as of December 31, 2015 $ 202,995 $ 58,136 $ 17,972 $ 11,591 $ 290,694 Goodwill from acquisitions 6,760 7,460 848 1,493 16,561 Goodwill related to noncontrolling interests 580 355 — 340 1,275 Goodwill related to prior period net working capital adjustments 504 (1,717 ) — — (1,213 ) Balance as of December 31, 2016 $ 210,839 $ 64,234 $ 18,820 $ 13,424 $ 307,317 Goodwill from acquisitions 30,623 15,000 6,220 160 52,003 Goodwill related to noncontrolling interests 21,469 9,580 3,501 (141 ) 34,409 Goodwill related to impairment on disposals (1,470 ) — — — (1,470 ) Goodwill related to prior year adjustments (5 ) — — 347 342 Balance as of December 31, 2017 $ 261,456 $ 88,814 $ 28,541 $ 13,790 $ 392,601 |
Schedule Of Acquired Finite And Indefinite Lived Intangible Assets By Major Class Table | The following tables summarize the changes in intangible assets during the twelve months ended December 31, 2017 and 2016 (amounts in thousands): December 31, 2017 Remaining useful life Gross carrying amount Accumulated amortization Net carrying amount Indefinite-lived assets : Trade names Indefinite $ 78,299 $ — $ 78,299 Certificates of need/licenses Indefinite 53,493 — 53,493 Total 131,792 — 131,792 Amortizing assets: Trade names 4 months – 10 years 10,127 (7,547 ) 2,580 Non-compete agreements 2 months – 2 years 5,732 (5,494 ) 238 Total 15,859 (13,041 ) 2,818 Balance at December 31, 2017 $ 147,651 $ (13,041 ) $ 134,610 December 31, 2016 Remaining useful life Gross carrying amount Accumulated amortization Net carrying amount Indefinite-lived assets : Trade names Indefinite $ 64,672 $ — $ 64,672 Certificates of need/licenses Indefinite 33,327 — 33,327 Total $ 97,999 $ — $ 97,999 Amortizing assets: Trade names 8 months – 9 years $ 9,294 $ (5,991 ) $ 3,303 Non-compete agreements 2 months – 3 years 5,681 (4,977 ) 704 Total 14,975 (10,968 ) 4,007 Balance at December 31, 2016 $ 112,974 $ (10,968 ) $ 102,006 |
Schedule of Intangible Asset Future Amortization Expense | The estimated intangible asset amortization expense for each of the five years subsequent to December 31, 2017 is as follows (amounts in thousands): Year Amortization amount 2018 $ 1,467 2019 448 2020 236 2021 105 2022 100 Total $ 2,356 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016 were as follows (amounts in thousands): 2017 2016 Deferred tax assets: Allowance for uncollectible accounts $ 5,224 $ 9,735 Accrued employee benefits 4,147 5,532 Stock compensation 663 1,004 Accrued self-insurance 2,157 2,762 Acquisition costs 2,064 1,781 Net operating loss carry forward 1,299 1,880 Intangible asset impairment 21 38 Uncertain tax position—state tax portion — 63 Uncertain tax position - interest expense — 90 Other 91 155 Capital loss carryforward 12 154 Valuation allowance (44 ) (44 ) Deferred tax assets $ 15,634 $ 23,150 Deferred tax liabilities: Amortization of intangible assets (35,955 ) (45,622 ) Tax depreciation in excess of book depreciation (5,988 ) (8,397 ) Prepaid expenses (623 ) (817 ) Non-accrual experience accounting method (534 ) (255 ) Deferred tax liabilities (43,100 ) (55,091 ) Net deferred tax liability $ (27,466 ) $ (31,941 ) |
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): 2017 2016 2015 Current: Federal $ 12,798 $ 12,563 $ 18,094 State 2,621 2,371 3,232 15,419 14,934 21,326 Deferred: Federal (6,273 ) 6,223 1,389 State 1,798 1,019 133 (4,475 ) 7,242 1,522 Total income tax expense $ 10,944 $ 22,176 $ 22,848 |
Statutory Rate and Provisions for Income Taxes | 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: 2017 2016 2015 Federal statutory tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 4.4 3.8 3.9 Nondeductible expenses 3.2 2.6 2.5 Uncertain tax position — (3.3 ) — TCJA Enactment (22.9 ) — — Excess Tax Benefit (1.6 ) — — Credits and other (0.1 ) (0.4 ) — Effective tax rate 18.0 % 37.7 % 41.4 % |
Total amounts of Unrecognized Tax | Total unrecognized tax benefits as of December 31, 2016 $ 1,315 Increases (decreases) in unrecognized tax benefits as a result of: Tax positions taken during the current period (1,315 ) Total unrecognized tax benefits as of December 31, 2017 $ — |
Debt Schedule of Long-Term Debt
Debt Schedule of Long-Term Debt Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 is as follows (amounts in thousands): Year Principal payment amount 2018 $ 286 2019 144,000 2020 — 2021 — 2022 — Total $ 144,286 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Nonvested Stock Activity | The following table represents the nonvested stock activity for the year ended December 31, 2017 : Number of Shares Weighted Average Grant Date Fair Value Nonvested shares outstanding at January 1, 2017 574,711 $ 31.61 Granted 151,010 48.52 Vested (192,463 ) 28.95 Forfeited (3,793 ) 39.30 Nonvested shares outstanding at December 31, 2017 529,465 $ 37.34 |
Summary of Shares Issued Under Employee Stock Purchase Plan | The following table represents the shares issued during 2017 , 2016 and 2015 under the Employee Stock Purchase Plan: Number of Shares Weighted Average Per Share Price Shares available as of December 31, 2014 236,483 Shares issued in 2015 22,723 $ 34.37 Shares issued in 2016 24,149 $ 37.79 Shares issued in 2017 18,542 $ 55.40 Shares available as of December 31, 2017 171,069 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2018 $ 23,119 2019 16,408 2020 12,120 2021 8,881 2022 5,514 Thereafter 7,172 $ 73,214 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , 2016 and 2015 (amounts in thousands): Year Ended December 31, 2017 Home health services Hospice services Community-based services Facility-based services Total Net service revenue $ 783,507 $ 159,197 $ 46,909 $ 82,473 $ 1,072,086 Cost of service revenue 482,179 103,969 35,244 54,418 675,810 Provision for bad debts 5,924 1,910 750 900 9,484 General and administrative expenses 229,264 45,516 9,946 25,813 310,539 Impairment of intangibles and other 1,511 — — — 1,511 Loss (gain) on disposal of assets 101 22 — (63 ) 60 Operating income 64,528 7,780 969 1,405 74,682 Interest expense (2,906 ) (582 ) (194 ) (194 ) (3,876 ) Non-operating income 360 71 3 90 524 Income before income taxes and noncontrolling interests 61,982 7,269 778 1,301 71,330 Income tax expense 9,509 1,057 156 222 10,944 Net income 52,473 6,212 622 1,079 60,386 Less net income (loss) attributable to noncontrolling interests 9,102 1,248 (111 ) 35 10,274 Net income attributable to LHC Group, Inc.’s common stockholders $ 43,371 $ 4,964 $ 733 $ 1,044 $ 50,112 Total assets $ 534,385 $ 155,230 $ 48,216 $ 55,871 $ 793,702 Year Ended December 31, 2016 Home health services Hospice services Community-based services Facility-based services Total Net service revenue $ 665,896 $ 134,948 $ 43,891 $ 70,088 $ 914,823 Cost of service revenue 398,450 83,359 32,603 43,238 557,650 Provision for bad debts 9,609 3,401 797 983 14,790 General and administrative expenses 203,418 37,207 8,785 21,212 270,622 Impairment of intangibles and other — — — — — Loss on disposal of assets 857 338 49 (45 ) 1,199 Operating income 53,562 10,643 1,657 4,700 70,562 Interest expense (2,216 ) (317 ) (144 ) (259 ) (2,936 ) Non-operating income 422 25 14 31 492 Income before income taxes and noncontrolling interests 51,768 10,351 1,527 4,472 68,118 Income tax expense 16,505 3,485 651 1,535 22,176 Net income 35,263 6,866 876 2,937 45,942 Less net income (loss) attributable to noncontrolling interests 6,876 1,867 (58 ) 674 9,359 Net income attributable to LHC Group, Inc.’s common stockholders $ 28,387 $ 4,999 $ 934 $ 2,263 $ 36,583 Total assets $ 427,782 $ 116,090 $ 33,520 $ 36,679 $ 614,071 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 190,591 26,437 8,465 22,426 247,919 Impairment of intangibles and other 1,245 — 28 — 1,273 Loss on disposal of assets 544 80 41 45 710 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 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 Net income 31,727 4,673 969 4,281 41,650 Less net income 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 |
Allowance for Uncollectible A32
Allowance for Uncollectible Accounts Activity and Ending Balances (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , 2016 and 2015 (amounts in thousands): Year Beginning of Year Balance Additions Deductions End of Year Balance 2017 $ 29,036 $ 9,484 $ 14,964 $ 23,556 2016 26,712 14,790 12,466 29,036 2015 18,582 19,243 11,113 26,712 |
Unaudited Summarized Quarterl33
Unaudited Summarized Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 Second Quarter 2017 Third Quarter 2017 Fourth Quarter 2017 Net service revenue $ 246,618 $ 260,210 $ 272,872 $ 292,386 Gross margin 92,248 99,052 100,016 104,960 Net income attributable to LHC Group, Inc.’s common stockholders 9,467 11,304 10,906 18,435 Net income attributable to LHC Group' Inc.'s common stockholders Basic earnings per share: $ 0.54 $ 0.64 $ 0.61 $ 1.04 Diluted earnings per share: $ 0.53 $ 0.63 $ 0.61 $ 1.02 Weighted average shares outstanding: Basic 17,643,463 17,728,567 17,740,818 17,749,872 Diluted 17,817,880 17,964,387 18,010,522 18,043,297 First Quarter 2016 Second Quarter 2016 Third Quarter 2016 Fourth Quarter 2016 Net service revenue $ 222,552 $ 226,031 $ 230,797 $ 235,443 Gross margin 86,951 88,903 89,965 91,354 Net income attributable to LHC Group, Inc.’s common stockholders 7,686 9,464 9,616 9,817 Net income attributable to LHC Group' Inc.'s common stockholders Basic earnings per share: $ 0.44 $ 0.54 $ 0.55 $ 0.56 Diluted earnings per share: $ 0.44 $ 0.54 $ 0.54 $ 0.55 Weighted average shares outstanding: Basic 17,485,766 17,566,097 17,588,163 17,597,190 Diluted 17,633,549 17,685,147 17,719,473 17,764,066 |
Organization (Details)
Organization (Details) | Dec. 31, 2017ServiceProviderState |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number Of Service Providers | ServiceProvider | 442 |
Number of States in which Entity Operates | State | 27 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | 51.00% | 57.20% | 55.20% |
Equity Joint Ventures [Member] | |||
Health Care organization, Revenue [Abstract] | |||
Percentage of Net Service Revenue | 47.00% | 41.20% | 42.90% |
Other Arrangements [Member] | |||
Health Care organization, Revenue [Abstract] | |||
Percentage of Net Service Revenue | 2.00% | 1.60% | 1.90% |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | 71.00% | 74.50% | 74.50% |
Medicaid [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of net service revenue | 1.80% | 1.80% | 1.50% |
Other [Member] | |||
Significant Accounting Policies [Line Items] | |||
Percentage of net service revenue | 27.20% | 23.70% | 24.00% |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Components of Property, Building and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | $ 90,018 | $ 78,477 |
Less accumulated depreciation | 43,565 | 35,226 |
Property, Plant and Equipment, Net | 46,453 | 43,251 |
Land [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | 2,033 | 2,033 |
Building and improvements [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | 14,166 | 11,363 |
Transportation equipment [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | 11,363 | 11,220 |
Fixed equipment [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | 780 | 1,090 |
Office furniture and medical equipment [Member] | ||
Other Long Term Assets [Line Items] | ||
Property, building and equipment, gross | $ 61,676 | $ 52,771 |
Summary of Significant Accoun38
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Shares Outstanding: | |||||||||||
Weighted average number of shares outstanding for basic per share calculation | 17,749,872 | 17,740,818 | 17,728,567 | 17,643,463 | 17,597,190 | 17,588,163 | 17,566,097 | 17,485,766 | 17,715,992 | 17,559,477 | 17,405,379 |
Effect of dilutive potential shares: | |||||||||||
Options | 0 | 863 | 3,663 | ||||||||
Nonvested Stock Awards | 245,026 | 122,480 | 138,489 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted (shares) | 18,043,297 | 18,010,522 | 17,964,387 | 17,817,880 | 17,764,066 | 17,719,473 | 17,685,147 | 17,633,549 | 17,961,018 | 17,682,820 | 17,547,531 |
Antidilutive shares | 0 | 219,855 | 200,525 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)GrouptimePeriodicRate | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Disposal Group, Including Discontinued Operation, Goodwill | $ 1.5 | ||
License Leasing Arrangements | 100.00% | ||
Selected Medicare home health resource group | Group | 1 | ||
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% | ||
Loss on impairment of intangible assets | $ 0.6 | ||
Depreciation expense | $ 13.4 | $ 12.2 | $ 12 |
Selected Hospice, Periodic Rate Used to Calculate Revenue | PeriodicRate | 1 | ||
Number of Hospice, Periodic Rates Used to Calculate Revenue | PeriodicRate | 4 | ||
Excess tax benefits, amount | $ 1 | ||
Current Fiscal Year End Date | --12-31 | ||
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible asset estimated useful life | 2 years | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible asset estimated useful life | 10 years | ||
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 Joint Ventur40
Acquisitions and Joint Ventures - Schedule of Aggregate Consideration Paid and Recognized Identified Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Payments to Acquire Businesses | $ 75,028 | |
Recognized amounts of identifiable assets acquired and liabilities assumed | ||
Patient account receivable | 5,679 | |
Other assets and (liabilities), net | 2,143 | |
Total identifiable assets | 42,273 | |
Noncontrolling interest | 53,657 | |
Goodwill, including noncontrolling interest of $34,409 | 86,412 | |
Goodwill related to noncontrolling interests | 34,409 | $ 1,275 |
Licensing Agreements [Member] | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||
Certificates of needs/licenses | 20,207 | |
Trade Names [Member] | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||
Business acquisition, purchase price allocation, Intangible Assets | 14,238 | |
Other Identifiable Intangible Assets [Member] | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||
Business acquisition, purchase price allocation, Intangible Assets | $ 6 |
Acquisitions and Joint Ventur41
Acquisitions and Joint Ventures - Proforma Consolidated Income Statement Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Net Service Revenue | $ 1,126,909 | $ 1,043,166 |
Operating income | 78,317 | 73,779 |
Net income | $ 52,300 | $ 38,520 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 2.91 | $ 2.18 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 2.95 | $ 2.19 |
Acquisitions and Joint Ventur42
Acquisitions and Joint Ventures - Additional Information (Detail) $ in Thousands | Sep. 01, 2017Agency | Jun. 01, 2017Agency | Jan. 01, 2017Agency | Dec. 31, 2017USD ($)Agency | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||
Intangible Assets, Net (Excluding Goodwill) | $ 134,610 | $ 102,006 | ||||
Goodwill Current Year Acquisition | 392,601 | 307,317 | $ 290,694 | |||
Total purchase price for acquisitions | 24,100 | |||||
Cash paid for acquisitions | $ 64,598 | 23,156 | 70,572 | |||
Minimum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Noncompete agreement estimated useful life | 1 year | |||||
Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Noncompete agreement estimated useful life | 3 years | |||||
Community-Based Services [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible Assets, Net (Excluding Goodwill) | $ 9,500 | |||||
Number of entities acquired | Agency | 1 | |||||
Home Health Reporting Unit [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of entities acquired | Agency | 7 | 3 | 28 | 5 | ||
Goodwill Current Year Acquisition | $ 261,456 | 210,839 | 202,995 | |||
Community Based Reporting Unit [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill Current Year Acquisition | $ 28,541 | 18,820 | 17,972 | |||
Hospice Reporting Unit [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of entities acquired | Agency | 5 | 6 | 12 | 2 | ||
Goodwill Current Year Acquisition | $ 88,814 | 64,234 | $ 58,136 | |||
Inpatient Hospice [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of entities acquired | Agency | 1 | 1 | 1 | |||
LTACH Agency [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of entities acquired | Agency | 6 | |||||
Pharmacy [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of entities acquired | Agency | 1 | |||||
2017 Acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Total purchase price for acquisitions | $ 80,200 | 10,400 | ||||
Cash paid for acquisitions | $ 64,600 | |||||
2016 Acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid for acquisitions | $ 23,100 |
Goodwill and Other Intangible43
Goodwill and Other Intangibles, Net - Schedule of Changes in Goodwill by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 307,317 | $ 290,694 |
Goodwill from acquisitions | 52,003 | 16,561 |
Goodwill related to noncontrolling interests | 34,409 | 1,275 |
Goodwill related to impairment on disposals | (1,213) | |
Goodwill related to prior period net working capital adjustments | (1,470) | |
Goodwill related to prior year adjustments | 342 | |
Balance at end of period | 392,601 | 307,317 |
Home Health Reporting Unit [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 210,839 | 202,995 |
Goodwill from acquisitions | 30,623 | 6,760 |
Goodwill related to noncontrolling interests | 21,469 | 580 |
Goodwill related to impairment on disposals | 504 | |
Goodwill related to prior period net working capital adjustments | (1,470) | |
Goodwill related to prior year adjustments | (5) | |
Balance at end of period | 261,456 | 210,839 |
Hospice Reporting Unit [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 64,234 | 58,136 |
Goodwill from acquisitions | 15,000 | 7,460 |
Goodwill related to noncontrolling interests | 9,580 | 355 |
Goodwill related to impairment on disposals | (1,717) | |
Goodwill related to prior period net working capital adjustments | 0 | |
Goodwill related to prior year adjustments | 0 | |
Balance at end of period | 88,814 | 64,234 |
Community Based Reporting Unit [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 18,820 | 17,972 |
Goodwill from acquisitions | 6,220 | 848 |
Goodwill related to noncontrolling interests | 3,501 | 0 |
Goodwill related to impairment on disposals | 0 | |
Goodwill related to prior year adjustments | 0 | |
Balance at end of period | 28,541 | 18,820 |
Facility Based Reporting Unit [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 13,424 | 11,591 |
Goodwill from acquisitions | 160 | 1,493 |
Goodwill related to noncontrolling interests | (141) | 340 |
Goodwill related to prior year adjustments | 347 | |
Balance at end of period | $ 13,790 | $ 13,424 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles Net - Summary of Changes in Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived assets, carrying amount | $ 131,792 | $ 97,999 |
Definite-lived assets, gross carrying amount | 15,859 | 14,975 |
Intangible assets, gross carrying amount | 147,651 | 112,974 |
Definite-lived assets, accumulated amortization | (13,041) | (10,968) |
Intangible assets, accumulated amortization ending balance | (13,041) | (10,968) |
Definite-lived assets, net carrying amount | 2,818 | 4,007 |
Intangible assets, net carrying amount | $ 134,610 | 102,006 |
Minimum [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Intangible asset estimated useful life | 2 years | |
Maximum [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Intangible asset estimated useful life | 10 years | |
Trade Names [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived assets, carrying amount | $ 78,299 | 64,672 |
Definite-lived assets, gross carrying amount | 10,127 | 9,294 |
Definite-lived assets, accumulated amortization | (7,547) | (5,991) |
Definite-lived assets, net carrying amount | $ 2,580 | $ 3,303 |
Trade Names [Member] | Minimum [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Intangible asset estimated useful life | 4 months | 8 months |
Trade Names [Member] | Maximum [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Intangible asset estimated useful life | 10 years | 9 years |
Noncompete Agreements [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Definite-lived assets, gross carrying amount | $ 5,732 | $ 5,681 |
Definite-lived assets, accumulated amortization | (5,494) | (4,977) |
Definite-lived assets, net carrying amount | $ 238 | $ 704 |
Noncompete Agreements [Member] | Minimum [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Intangible asset estimated useful life | 2 months | 2 months |
Noncompete Agreements [Member] | Maximum [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Intangible asset estimated useful life | 2 years | 3 years |
Licensing Agreements [Member] | ||
Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived assets, carrying amount | $ 53,493 | $ 33,327 |
Goodwill and Other Intangible45
Goodwill and Other Intangibles, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Disposal Group, Including Discontinued Operation, Goodwill | $ 1,500 | ||
Intangible Assets, Net (Excluding Goodwill) | 134,610 | $ 102,006 | |
Amortization | 2,100 | $ 2,500 | $ 1,900 |
Home-based services [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | 88,100 | ||
Hospice Entity [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | 32,000 | ||
Community-Based Services [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | 9,500 | ||
Facility-based services [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 5,000 |
Goodwill and Other Intangible46
Goodwill and Other Intangibles, Net Goodwill and Other Intangibles, Net - Schedule of Intangible Asset Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 1,467 |
2,019 | 448 |
2,020 | 236 |
2,021 | 105 |
2,022 | 100 |
Total | $ 2,356 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | $ 5,224 | $ 9,735 |
Accrued employee benefits | 4,147 | 5,532 |
Stock compensation | 663 | 1,004 |
Accrued self-insurance | 2,157 | 2,762 |
Acquisition costs | 2,064 | 1,781 |
Net operating loss carry forward | 1,299 | 1,880 |
Intangible asset impairment | 21 | 38 |
Uncertain tax position-state tax portion | 0 | 63 |
Uncertain tax position-interest expense | 0 | 90 |
Other | 91 | 155 |
Capital loss carryforward | 12 | 154 |
Valuation allowance | (44) | (44) |
Deferred tax assets | 15,634 | 23,150 |
Deferred tax liabilities: | ||
Amortization of intangible assets | (35,955) | (45,622) |
Tax depreciation in excess of book depreciation | (5,988) | (8,397) |
Prepaid expenses | (623) | (817) |
Non-accrual experience accounting method | (534) | (255) |
Deferred tax liabilities | (43,100) | (55,091) |
Net deferred tax liability | $ (27,466) | $ (31,941) |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 12,798 | $ 12,563 | $ 18,094 |
State | 2,621 | 2,371 | 3,232 |
Total Current | 15,419 | 14,934 | 21,326 |
Deferred: | |||
Federal | (6,273) | 6,223 | 1,389 |
State | 1,798 | 1,019 | 133 |
Total Deferred | (4,475) | 7,242 | 1,522 |
Total Income Tax Expense | $ 10,944 | $ 22,176 | $ 22,848 |
Income Taxes - Statutory Rate a
Income Taxes - Statutory Rate and Provisions for Income Taxes Percent (Detail) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Federal Statutory Tax Rate | 35.00% | 35.00% | 35.00% | |
State Income Taxes, net of federal benefit | 4.40% | 3.80% | 3.90% | |
Nondeductible Expense | 3.20% | 2.60% | 2.50% | |
Uncertain tax position | (0.00%) | (3.30%) | ||
TCJA Enactment | (22.90%) | (22.90%) | (0.00%) | (0.00%) |
Excess Tax Benefit | (1.60%) | (0.00%) | (0.00%) | |
Credits and other | (0.10%) | (0.40%) | 0.00% | |
Effective Tax Rate | 18.00% | 37.70% | 41.40% |
Income Taxes - Total Amounts of
Income Taxes - Total Amounts of Unrecognized Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized Tax Benefits | $ 0 | $ 1,315 |
Increases (decreases) in unrecognized tax benefits as a result of: | ||
Tax positions taken during the current period | $ (1,315) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 01, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Unrecognized Tax Benefits, Income Tax Penalties Expense, Increase | $ 20 | ||||
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ 200 | ||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | $ 14,000 | 14,000 | |||
Unrecognized Tax Benefits | $ 0 | $ 0 | $ 1,315 | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 22.90% | 22.90% | 0.00% | 0.00% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 1,300 | $ 3,400 |
Debt - Schedule of Principal Pa
Debt - Schedule of Principal Payments on Long-Term Debt (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 286 |
2,019 | 144,000 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Total | $ 144,286 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Thousands | Jun. 18, 2014USD ($)Instruments | Sep. 30, 2017 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
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 | 3.43% | |||
Line of credit facility drawn | $ 144,000 | $ 87,000 | ||
Letter of credit outstanding | $ 9,600 | $ 11,000 | ||
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% | 3.57% | ||
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 | 5.50% | |||
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% |
Shareholders' Equity- Nonvested
Shareholders' Equity- Nonvested Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Nonvested Shares Outstanding, Number of Shares, Beginning Balance | 574,711 | ||
Granted, Number of Shares | 151,010 | ||
Vested, Number of Shares | (192,463) | ||
Forfeited, Number of Shares | (3,793) | ||
Nonvested Shares Outstanding, Number of Shares, Ending Balance | 529,465 | 574,711 | |
Nonvested Shares Outstanding, Weighted Average Grant Date Fair Value, Beginning Balance | $ 31.61 | ||
Grants, Weighted Average Grant Date Fair Value | 48.52 | $ 37.99 | $ 34.06 |
Vested, Weighted Average Grant Date Fair Value | 28.95 | ||
Forfeited, Weighted Average Grant Date Fair Value | 39.30 | ||
Nonvested Shares Outstanding, Weighted Average Grant Date Fair Value, Ending Balance | $ 37.34 | $ 31.61 |
Stockholders' Equity- Shares of
Stockholders' Equity- Shares of Common Stock Issued During 2016 under Employee Stock Purchase Plan (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Shares Available, Beginning Balance | 171,069 | 236,483 | ||
Shares Issued during Period (Shares) | 18,542 | 24,149 | 22,723 | |
Shares Available, Ending Balance | 171,069 | 236,483 | ||
Shares Issued during Period (per Share Price) | $ 55.40 | $ 37.79 | $ 34.37 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Par value of common stock repurchased | $ 0.01 | $ 0.01 | |
Common stock reserved for issuance | 1,500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 391,737 | ||
Total unrecognized compensation cost related to nonvested shares of common stock granted | $ 13.4 | ||
Weighted average period of cost recognized | 2 years 11 months 25 days | ||
Total fair value of shares of common stock vested | $ 5.6 | $ 4.5 | $ 4.1 |
Compensation expense related to nonvested stock grants | $ 6 | $ 4.9 | $ 4.2 |
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 authorized for issuance under Employee Stock Purchase Plan | 250,000 | ||
Shares redeemed to satisfy personal tax obligations | 61,825 | 52,119 | 42,197 |
Employee [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of non-vested shares | 5 years | ||
Nonvested stock grants to employees | 139,310 | 220,800 | 182,865 |
Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of non-vested shares | 1 year | ||
Non vested stock grants to Independent director | 11,700 | 15,300 | 16,200 |
New Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of non-vested shares | 3 years |
Leases - Additional information
Leases - Additional information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leases, Rent Expense | $ 25.1 | $ 20.8 | $ 20.7 |
Operating Lease Period Minimum | 3 years | ||
Operating Lease Period Maximum | 10 years | ||
Minimum Miles Required per Year for the Fleet Lease | 12,000 | ||
Minimum Period of the Fleet Lease | 12 months | ||
Fleet Lease's Expense | $ 1.2 | $ 5.3 | $ 7.2 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Commitments Under Non-cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 23,119 |
2,019 | 16,408 |
2,020 | 12,120 |
2,021 | 8,881 |
2,022 | 5,514 |
Thereafter | 7,172 |
Operating Leases, Future Minimum Payments Due, Total | $ 73,214 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 7,900,000 | $ 6,300,000 | $ 5,400,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation Settlement, Amount From Government Payors | $ 16.9 |
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||
Net service revenue | $ 292,386 | $ 272,872 | $ 260,210 | $ 246,618 | $ 235,443 | $ 230,797 | $ 226,031 | $ 222,552 | $ 1,072,086 | $ 914,823 | $ 816,366 |
Cost of service revenue | 675,810 | 557,650 | 480,878 | ||||||||
Provision for bad debts | 9,484 | 14,790 | 19,243 | ||||||||
General and administrative expenses | 310,539 | 270,622 | 247,919 | ||||||||
Loss (gain) on disposal of assets | 60 | 1,199 | 710 | ||||||||
Impairment of intangibles and other | 1,511 | 0 | 1,273 | ||||||||
Operating income | 74,682 | 70,562 | 66,343 | ||||||||
Interest expense | (3,876) | (2,936) | (2,302) | ||||||||
Non-operating income | 524 | 492 | 457 | ||||||||
Income from continuing operations before income taxes and noncontrolling interests | 71,330 | 68,118 | 64,498 | ||||||||
Income tax expense | 10,944 | 22,176 | 22,848 | ||||||||
Income from continuing operations | 60,386 | 45,942 | 41,650 | ||||||||
Less net income attributable to noncontrolling interests | 10,274 | 9,359 | 9,315 | ||||||||
Net Income Attributable to LHC Group Inc.'s Common Stockholders | 18,435 | $ 10,906 | $ 11,304 | $ 9,467 | 9,817 | $ 9,616 | $ 9,464 | $ 7,686 | 50,112 | 36,583 | 32,335 |
Total assets | 793,702 | 614,071 | 793,702 | 614,071 | 566,054 | ||||||
Home-based services [Member] | |||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||
Net service revenue | 783,507 | 665,896 | 613,188 | ||||||||
Cost of service revenue | 482,179 | 398,450 | 354,750 | ||||||||
Provision for bad debts | 5,924 | 9,609 | 15,736 | ||||||||
General and administrative expenses | 229,264 | 203,418 | 190,591 | ||||||||
Loss (gain) on disposal of assets | 101 | 857 | 544 | ||||||||
Impairment of intangibles and other | 1,511 | 0 | 1,245 | ||||||||
Operating income | 64,528 | 53,562 | 50,322 | ||||||||
Interest expense | (2,906) | (2,216) | (1,819) | ||||||||
Non-operating income | 360 | 422 | 397 | ||||||||
Income from continuing operations before income taxes and noncontrolling interests | 61,982 | 51,768 | 48,900 | ||||||||
Income tax expense | 9,509 | 16,505 | 17,173 | ||||||||
Income from continuing operations | 52,473 | 35,263 | 31,727 | ||||||||
Less net income attributable to noncontrolling interests | 9,102 | 6,876 | 7,424 | ||||||||
Net Income Attributable to LHC Group Inc.'s Common Stockholders | 43,371 | 28,387 | 24,303 | ||||||||
Total assets | 534,385 | 427,782 | 534,385 | 427,782 | 394,392 | ||||||
Facility-based services [Member] | |||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||
Net service revenue | 82,473 | 70,088 | 76,122 | ||||||||
Cost of service revenue | 54,418 | 43,238 | 46,146 | ||||||||
Provision for bad debts | 900 | 983 | 689 | ||||||||
General and administrative expenses | 25,813 | 21,212 | 22,426 | ||||||||
Loss (gain) on disposal of assets | (63) | (45) | 45 | ||||||||
Impairment of intangibles and other | 0 | 0 | |||||||||
Operating income | 1,405 | 4,700 | 6,816 | ||||||||
Interest expense | (194) | (259) | (207) | ||||||||
Non-operating income | 90 | 31 | 19 | ||||||||
Income from continuing operations before income taxes and noncontrolling interests | 1,301 | 4,472 | 6,628 | ||||||||
Income tax expense | 222 | 1,535 | 2,347 | ||||||||
Income from continuing operations | 1,079 | 2,937 | 4,281 | ||||||||
Less net income attributable to noncontrolling interests | 35 | 674 | 958 | ||||||||
Net Income Attributable to LHC Group Inc.'s Common Stockholders | 1,044 | 2,263 | 3,323 | ||||||||
Total assets | 55,871 | 36,679 | 55,871 | 36,679 | 38,786 | ||||||
Hospice Entity [Member] | |||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||
Net service revenue | 159,197 | 134,948 | 85,854 | ||||||||
Cost of service revenue | 103,969 | 83,359 | 50,906 | ||||||||
Provision for bad debts | 1,910 | 3,401 | 1,002 | ||||||||
General and administrative expenses | 45,516 | 37,207 | 26,437 | ||||||||
Loss (gain) on disposal of assets | 22 | 338 | 80 | ||||||||
Impairment of intangibles and other | 0 | 0 | |||||||||
Operating income | 7,780 | 10,643 | 7,429 | ||||||||
Interest expense | (582) | (317) | (253) | ||||||||
Non-operating income | 71 | 25 | 38 | ||||||||
Income from continuing operations before income taxes and noncontrolling interests | 7,269 | 10,351 | 7,214 | ||||||||
Income tax expense | 1,057 | 3,485 | 2,541 | ||||||||
Income from continuing operations | 6,212 | 6,866 | 4,673 | ||||||||
Less net income attributable to noncontrolling interests | 1,248 | 1,867 | 1,077 | ||||||||
Net Income Attributable to LHC Group Inc.'s Common Stockholders | 4,964 | 4,999 | 3,596 | ||||||||
Total assets | 155,230 | 116,090 | 155,230 | 116,090 | 101,641 | ||||||
Community-Based Services [Member] | |||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||
Net service revenue | 46,909 | 43,891 | 41,202 | ||||||||
Cost of service revenue | 35,244 | 32,603 | 29,076 | ||||||||
Provision for bad debts | 750 | 797 | 1,816 | ||||||||
General and administrative expenses | 9,946 | 8,785 | 8,465 | ||||||||
Loss (gain) on disposal of assets | 0 | 49 | 41 | ||||||||
Impairment of intangibles and other | 0 | 0 | 28 | ||||||||
Operating income | 969 | 1,657 | 1,776 | ||||||||
Interest expense | (194) | (144) | (23) | ||||||||
Non-operating income | 3 | 14 | 3 | ||||||||
Income from continuing operations before income taxes and noncontrolling interests | 778 | 1,527 | 1,756 | ||||||||
Income tax expense | 156 | 651 | 787 | ||||||||
Income from continuing operations | 622 | 876 | 969 | ||||||||
Less net income attributable to noncontrolling interests | (111) | (58) | (144) | ||||||||
Net Income Attributable to LHC Group Inc.'s Common Stockholders | 733 | 934 | 1,113 | ||||||||
Total assets | $ 48,216 | $ 33,520 | $ 48,216 | $ 33,520 | $ 31,235 |
Allowance for Uncollectible A62
Allowance for Uncollectible Accounts - Allowance for Uncollectible Accounts Activity and Ending Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 29,036 | $ 26,712 | $ 18,582 |
Additions | (9,484) | (14,790) | (19,243) |
Deductions | 14,964 | 12,466 | 11,113 |
Ending balance | $ 23,556 | $ 29,036 | $ 26,712 |
Concentration of Risk - Additio
Concentration of Risk - Additional Information (Detail) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Risks and Uncertainties [Abstract] | |||
Percentage Of Net Service Revenue Accounted By Facility | 55.00% | 58.40% | 61.10% |
Unaudited Summarized Quarterl64
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net service revenue | $ 292,386 | $ 272,872 | $ 260,210 | $ 246,618 | $ 235,443 | $ 230,797 | $ 226,031 | $ 222,552 | $ 1,072,086 | $ 914,823 | $ 816,366 |
Gross margin | 104,960 | 100,016 | 99,052 | 92,248 | 91,354 | 89,965 | 88,903 | 86,951 | 396,276 | 357,173 | 335,488 |
Net Income Attributable to LHC Group Inc.'s Common Stockholders | $ 18,435 | $ 10,906 | $ 11,304 | $ 9,467 | $ 9,817 | $ 9,616 | $ 9,464 | $ 7,686 | $ 50,112 | $ 36,583 | $ 32,335 |
Earnings Per Share - Basic: | |||||||||||
Net income attributable to LHC Group, Inc.' common stockholders | $ 1.04 | $ 0.61 | $ 0.64 | $ 0.54 | $ 0.56 | $ 0.55 | $ 0.54 | $ 0.44 | $ 2.83 | $ 2.08 | $ 1.86 |
Earnings Per Share - Diluted: | |||||||||||
Net income attributable to LHC Group, Inc.' common stockholders | $ 1.02 | $ 0.61 | $ 0.63 | $ 0.53 | $ 0.55 | $ 0.54 | $ 0.54 | $ 0.44 | $ 2.79 | $ 2.07 | $ 1.84 |
Weighted Average Shares Outstanding: | |||||||||||
Basic | 17,749,872 | 17,740,818 | 17,728,567 | 17,643,463 | 17,597,190 | 17,588,163 | 17,566,097 | 17,485,766 | 17,715,992 | 17,559,477 | 17,405,379 |
Diluted | 18,043,297 | 18,010,522 | 17,964,387 | 17,817,880 | 17,764,066 | 17,719,473 | 17,685,147 | 17,633,549 | 17,961,018 | 17,682,820 | 17,547,531 |
Proposed Merger with Almost F65
Proposed Merger with Almost Family - Additional Information (Detail) - USD ($) $ in Millions | Nov. 15, 2017 | Mar. 31, 2018 |
Subsequent Event [Line Items] | ||
Equity interest issued or issuable, number of shares | 0.9150 | |
LHCG Stockholder Ownership | 58.50% | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Contingent termination fee | $ 30 | |
Contingent termination fee by parties | $ 5 | |
Almost Family [Member] | ||
Subsequent Event [Line Items] | ||
AFAM Stockholder Ownership | 41.50% |