Diversicare Healthcare Services (DVCR) 10-Q 5 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 27, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Diversicare Healthcare Services, Inc.
Entity Central Index Key	919,956
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		6,361,132

Interim Consolidated Balance Sh

Interim Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 3,377	$ 4,585
Receivables, less allowance for doubtful accounts of $8,490 and $8,180, respectively	40,264	43,819
Other receivables	1,269	1,407
Prepaid expenses and other current assets	2,529	2,223
Income tax refundable	605	347
Current assets of discontinued operations	38	36
Deferred income taxes	7,944	7,999
Total current assets	56,026	60,416
PROPERTY AND EQUIPMENT, at cost	122,487	114,383
Less accumulated depreciation and amortization	(63,626)	(62,110)
Property and equipment, net	58,861	52,273
OTHER ASSETS:
Deferred income taxes	11,987	11,762
Deferred lease and other costs, net	219	382
Investment in unconsolidated affiliate	831	798
Other noncurrent assets	2,015	3,994
Acquired leasehold interest, net	7,363	7,459
Total other assets	22,415	24,395
Total assets	137,302	137,084
CURRENT LIABILITIES:
Current portion of long-term debt and capitalized lease obligations	6,959	6,603
Trade accounts payable	10,101	10,136
Current liabilities of discontinued operations	382	345
Accrued expenses:
Payroll and employee benefits	14,009	14,404
Self-insurance reserves, current portion	9,975	10,224
Other current liabilities	4,553	5,652
Total current liabilities	45,979	47,364
NONCURRENT LIABILITIES:
Long-term debt and capitalized lease obligations, less current portion and deferred financing costs	56,299	53,297
Self-insurance reserves, noncurrent portion	11,860	12,344
Other noncurrent liabilities	10,401	10,812
Total noncurrent liabilities	$ 78,560	$ 76,453
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Series A preferred stock, authorized 200,000 shares, $.10 par value, none issued and outstanding	$ 0	$ 0
Common stock, authorized 20,000,000 shares, $.01 par value, 6,593,000 and 6,513,000 shares issued, and 6,211,000 and 6,281,000 shares outstanding, respectively	65	65
Treasury stock at cost, 232,000 shares of common stock	(2,500)	(2,500)
Paid-in capital	21,269	21,142
Accumulated deficit	(5,517)	(5,053)
Accumulated other comprehensive loss	(554)	(387)
Total shareholders’ equity	12,763	13,267
Total liabilities and shareholder's equity	$ 137,302	$ 137,084

Interim Consolidated Balance S3

Interim Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 8,490	$ 8,180
Preferred stock, par value (dollars per share)	$ 0.1	$ 0.10
Preferred stock, shares authorized (shares)	200,000	200,000
Preferred stock, shares issued (shares)	0	0
Preferred stock, shares outstanding (shares)	0	0
Common stock, par value (dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (shares)	20,000,000	20,000,000
Common stock, shares issued (shares)	6,593,000	6,513,000
Common stock, shares outstanding (shares)	6,211,000	6,281,000
Treasury stock, shares (shares)	232,000	232,000

Interim Consolidated Statements

Interim Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
PATIENT REVENUES, net	$ 97,945	$ 95,225
EXPENSES:
Operating	78,618	77,145
Lease and rent expense	7,252	7,145
Professional liability	2,066	2,155
General and administrative	6,734	6,051
Depreciation and amortization	2,003	1,879
Total expenses	96,673	94,375
OPERATING INCOME	1,272	850
OTHER EXPENSE:
Equity in net income of unconsolidated affiliate	33	108
Interest expense, net	(1,070)	(950)
Debt retirement costs	(351)	0
Total other expense	(1,388)	(842)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(116)	8
BENEFIT (PROVISION) FOR INCOME TAXES	42	(3)
Income (loss) from continuing operations	(74)	5
LOSS FROM DISCONTINUED OPERATIONS:
Operating loss, net of tax benefit of $21 and $168, respectively	(37)	(263)
NET LOSS	$ (111)	$ (258)
Per common share – basic
Continuing operations (in dollars per share)	$ (0.01)	$ 0
Discontinued operations (in dollars per share)	(0.01)	(0.04)
Net loss per common share – basic	(0.02)	(0.04)
Per common share – diluted
Continuing operations (in dollars per share)	(0.01)	0
Discontinued operations (in dollars per share)	(0.01)	(0.04)
Net loss per common share – diluted	(0.02)	(0.04)
COMMON STOCK DIVIDENDS DECLARED PER SHARE OF COMMON STOCK	$ 0.055	$ 0.055
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (shares)	6,160	6,045
Diluted (shares)	6,160	6,045

Interim Consolidated Statement5

Interim Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Tax effect on operating income	$ 21	$ 168

Interim Consolidated Statement6

Interim Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
NET LOSS	$ (111)	$ (258)
OTHER COMPREHENSIVE INCOME:
Change in fair value of cash flow hedge, net of tax	311	178
Less: reclassification adjustment for amounts recognized in net income	(144)	(120)
Total other comprehensive income	167	58
COMPREHENSIVE INCOME (LOSS)	$ 56	$ (200)

Interim Consolidated Statement7

Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Cash Flows [Abstract]
NET LOSS	$ (111)	$ (258)
Discontinued operations	(37)	(263)
CASH FLOWS FROM OPERATING ACTIVITIES:
Income (loss) from continuing operations	(74)	5
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used in) operating activities:
Depreciation and amortization	2,003	1,879
Provision for doubtful accounts	1,640	1,503
Deferred income tax benefit	(35)	(116)
Provision for self-insured professional liability, net of cash payments	1,013	930
Stock-based compensation	252	155
Equity in net income of unconsolidated affiliate, net of investment	(33)	(108)
Debt retirement costs	351	0
Other	(254)	(311)
Changes in assets and liabilities affecting operating activities:
Receivables, net	2,085	(3,436)
Prepaid expenses and other assets	(275)	(875)
Trade accounts payable and accrued expenses	(1,438)	716
Net cash provided by continuing operations	5,235	342
Discontinued operations	(1,862)	(1,579)
Net cash provided by (used in) operating activities	3,373	(1,237)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(8,492)	(1,411)
Acquisition of property and equipment through business combination	0	(7,000)
Change in restricted cash	1,658	2,490
Deposits and other deferred balances	0	(9)
Net cash used in continuing operations	(6,834)	(5,930)
Discontinued operations	0	0
Net cash used in investing activities	(6,834)	(5,930)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of debt obligations	(57,885)	(1,301)
Proceeds from issuance of debt	62,566	8,767
Financing costs	(1,833)	(104)
Issuance and redemption of employee equity awards	(95)	79
Payment of common stock dividends	(342)	(335)
Payment for preferred stock restructuring	(158)	(153)
Net cash provided by financing activities	2,253	6,953
Discontinued operations	0	0
Net cash provided by financing activities	2,253	6,953
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,208)	(214)
CASH AND CASH EQUIVALENTS, beginning of period	4,585	3,818
CASH AND CASH EQUIVALENTS, end of period	3,377	3,604
SUPPLEMENTAL INFORMATION:
Cash payments of interest	919	857
Cash payments of income taxes	$ 229	$ 84

Business

Business	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS	BUSINESS Diversicare Healthcare Services, Inc. (together with its subsidiaries, “Diversicare Healthcare Services” or the “Company”) provides long-term care services to nursing center patients in nine states, primarily in the Southeast, Midwest, and Southwest. The Company’s centers provide a range of health care services to their patients and residents that include nursing, personal care, and social services. Additionally, the Company’s nursing centers also offer a variety of comprehensive rehabilitation services, as well as nutritional support services. The Company's continuing operations include centers in Alabama, Florida, Indiana, Kansas, Kentucky, Missouri, Ohio, Tennessee, and Texas. As of March 31, 2016 , the Company’s continuing operations consist of 55 nursing centers with 6,060 licensed nursing beds. The Company owns 17 and leases 38 of its nursing centers. Our nursing centers range in size from 48 to 320 licensed nursing beds. The licensed nursing bed count does not include 496 licensed assisted and residential living beds.

Consolidation and Basis of Pres

Consolidation and Basis of Presentation of Financial Statements	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
CONSOLIDATION AND BASIS OF PRESENTATION OF FINANCIAL STATEMENTS	CONSOLIDATION AND BASIS OF PRESENTATION OF FINANCIAL STATEMENTS The interim consolidated financial statements include the operations and accounts of Diversicare Healthcare Services and its subsidiaries, all wholly-owned. All significant intercompany accounts and transactions have been eliminated in consolidation. The investment in an unconsolidated affiliate (a 50 percent -owned joint venture partnership) is accounted for using the equity method and is described in Note 8. The interim consolidated financial statements for the three month periods ended March 31, 2016 and 2015 , included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management of the Company, the accompanying interim consolidated financial statements reflect all normal, recurring adjustments necessary to present fairly the Company’s financial position at March 31, 2016 , and the results of operations for the three month periods ended March 31, 2016 and 2015 , and cash flows for the three month periods ended March 31, 2016 and 2015 . The Company’s balance sheet information at December 31, 2015 , was derived from its audited consolidated financial statements as of December 31, 2015 . The results of operations for the periods ended March 31, 2016 and 2015 are not necessarily indicative of the operating results that may be expected for a full year. These interim consolidated financial statements should be read in connection with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 .

Recent Accounting Guidance

Recent Accounting Guidance	3 Months Ended
	Mar. 31, 2016
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING GUIDANCE	RECENT ACCOUNTING GUIDANCE In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (Topic 835), which amends and simplifies the presentation of debt issuance costs. The main provisions of the standard require that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, and amortization of the debt issuance costs must be reported as interest expense. The Company adopted ASU No. 2015-03 as of January 1, 2016. The new standard was applied on a retroactive basis and the Company has complied with the applicable disclosures for a change in accounting principle. The adoption of this guidance has not had and is not expected to have material impact on the Company's consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which changes how deferred taxes are classified on our balance sheets and is effective for financial statements issued for annual periods beginning after December 15, 2016, with early adoption permitted. ASU 2015-17 requires all deferred tax assets and liabilities to be classified as non-current. Upon adoption, the Company anticipates reclassifying deferred income taxes of approximately $7,944,000 from current to non-current assets. In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU was issued as part of the FASB Simplification Initiative and involves several aspects of accounting for shared-based payment transactions, including the income tax consequences and classification on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is currently assessing the impact of this new accounting pronouncement on the Company's results of operations, financial position, and cash flows.

Long-Term Debt and Interest Rat

Long-Term Debt and Interest Rate Swap	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
LONG-TERM DEBT AND INTEREST RATE SWAP	LONG-TERM DEBT AND INTEREST RATE SWAP The Company has agreements with a syndicate of banks for a mortgage term loan ("Original Mortgage Loan") and the Company’s revolving credit agreement ("Original Revolver"). On February 26, 2016, the Company executed an Amended and Restated Credit Agreement (the "Credit Agreement") which modified the terms of the Original Mortgage Loan and the Original Revolver Agreements dated April 30, 2013. The Credit Agreement increases the Company's borrowing capacity to $100,000,000 allocated between a $72,500,000 Mortgage Loan ("Amended Mortgage Loan") and a $27,500,000 Revolver ("Amended Revolver"). The Amended Mortgage Loan consists of a $60,000,000 term loan facility and a $12,500,000 acquisition loan facility. Loan acquisition costs associated with the Amended Mortgage Loan and the Amended Revolver were capitalized in the amount of $1,812,000 and are being amortized over the five -year term of the agreements. Additionally, the Glasgow term loan balance was consolidated into the new Credit Agreement. Under the terms of the amended agreements, the syndicate of banks provided the Amended Mortgage Loan with an original balance of $72,500,000 with a five -year maturity through February 26, 2021, and a $27,500,000 Amended Revolver through February 26, 2021. The Amended Mortgage Loan has a term of five years, with principal and interest payable monthly based on a 25 -year amortization. Interest on the term and acquisition loan facilities are based on LIBOR plus 4.0% and 4.75% , respectively. A portion of the Amended Mortgage Loan is effectively fixed at 5.79% pursuant to an interest rate swap with an initial notional amount of $30,000,000 . As of March 31, 2016 , the interest rate related to the Amended Mortgage Loan was 4.44% . The Amended Mortgage Loan is secured by seventeen owned nursing centers, related equipment and a lien on the accounts receivable of these centers. The Amended Mortgage Loan and the Amended Revolver are cross-collateralized. The Company’s Amended Revolver has an interest rate of LIBOR plus 4.0% and is secured by accounts receivable and is subject to limits on the maximum amount of loans that can be outstanding under the revolver based on borrowing base restrictions. The Amended Mortgage Loan balance was $60,000,000 as of March 31, 2016 . As of March 31, 2016 , the Company had $5,000,000 borrowings outstanding under the revolving credit facility compared to $12,900,000 outstanding as of December 31, 2015 . The outstanding borrowings on the revolver primarily compensate for accumulated Medicaid and Medicare receivables at recently acquired facilities as these facilities proceed through the change in ownership process with CMS. Annual fees for letters of credit issued under this Revolver are 3.00% of the amount outstanding. The Company has eleven letters of credit with a total value of $8,106,000 outstanding as of March 31, 2016 . Considering the balance of eligible accounts receivable, the letters of credit, the amounts outstanding under the revolving credit facility and the maximum loan amount of $27,500,000 , the balance available for borrowing under the revolving credit center is $12,247,000 at March 31, 2016 . The Company’s debt agreements contain various financial covenants, the most restrictive of which relate to minimum cash deposits, cash flow and debt service coverage ratios. The Company is in compliance with all such covenants at March 31, 2016 . Interest Rate Swap Transaction As part of the debt agreements entered into in April 2013, the Company entered into an interest rate swap agreement with a member of the bank syndicate as the counterparty. The Company designated its interest rate swap as a cash flow hedge and the earnings component of the hedge, net of taxes, is reflected as a component of other comprehensive income. In conjunction with the amendment to the credit facility, the Company amended the terms of its interest rate swap. The interest rate swap agreement requires the Company to make fixed rate payments to the bank calculated on the initial notional amount of $30,000,000 at an annual fixed rate of 5.79% while the bank is obligated to make payments to the Company based on LIBOR on the same notional amount. The Company assesses the effectiveness of its interest rate swap on a quarterly basis, and at March 31, 2016 , the Company determined that the interest rate swap was effective. The interest rate swap valuation model indicated a net liability of $980,000 at March 31, 2016 . The fair value of the interest rate swap is included in “other noncurrent liabilities” on the Company’s interim consolidated balance sheet. The balance of accumulated other comprehensive loss at March 31, 2016 is $608,000 and reflects the liability related to the interest rate swap, net of the income tax benefit of $372,000 . As the Company’s interest rate swap is not traded on a market exchange, the fair value is determined using a valuation based on a discounted cash flow analysis. This analysis reflects the contractual terms of the interest rate swap agreement and uses observable market-based inputs, including estimated future LIBOR interest rates. The interest rate swap valuation is classified in Level 2 of the fair value hierarchy, in accordance with the FASB guidance set forth in ASC 820, Fair Value Measurement .

Insurance Matters

Insurance Matters	3 Months Ended
	Mar. 31, 2016
Insurance [Abstract]
INSURANCE MATTERS	INSURANCE MATTERS Professional Liability and Other Liability Insurance The Company has professional liability insurance coverage for its nursing centers that, based on historical claims experience, is likely to be substantially less than the claims that are expected to be incurred. Effective July 1, 2013, the Company established a wholly-owned, consolidated offshore limited purpose insurance subsidiary, SHC Risk Carriers, Inc. (“SHC”) which has issued a policy insuring claims made against all of the Company's nursing centers in Florida and Tennessee, as well as the Company’s formerly operated Arkansas and West Virginia facilities. Several of the Company’s nursing centers in Alabama, Kentucky, Ohio, and Texas are also covered under this policy. The SHC policy provides coverage limits of either $500,000 or $1,000,000 per medical incident with a sublimit per center of $1,000,000 and total annual aggregate policy limits of $5,000,000 . The remaining nursing centers are covered by one of seven claims made professional liability insurance policies purchased from entities unaffiliated with the Company. These policies provide coverage limits of $1,000,000 per claim and have sublimits of $3,000,000 per center, with varying aggregate policy limits. Reserve for Estimated Self-Insured Professional Liability Claims Because the Company’s actual liability for existing and anticipated professional liability and general liability claims will likely exceed the Company’s limited insurance coverage, the Company has recorded total liabilities for reported and estimated future claims of $20,771,000 as of March 31, 2016 . This accrual includes estimates of liability for incurred but not reported claims, estimates of liability for reported but unresolved claims, actual liabilities related to settlements, including settlements to be paid over time, and estimates of legal costs related to these claims. All losses are projected on an undiscounted basis and are presented without regard to any potential insurance recoveries. Amounts are added to the accrual for estimates of anticipated liability for claims incurred during each period, and amounts are deducted from the accrual for settlements paid on existing claims during each period. The Company evaluates the adequacy of this liability on a quarterly basis. Semi-annually, the Company retains a third-party actuarial firm to assist in the evaluation of this reserve. Since May 2012, Merlinos & Associates, Inc. (“Merlinos”) has assisted management in the preparation of the appropriate accrual for incurred but not reported general and professional liability claims based on data furnished as of May 31 and November 30 of each year. Merlinos primarily utilizes historical data regarding the frequency and cost of the Company's past claims over a multi-year period, industry data and information regarding the number of occupied beds to develop its estimates of the Company's ultimate professional liability cost for current periods. On a quarterly basis, the Company obtains reports of asserted claims and lawsuits incurred. These reports, which are provided by the Company’s insurers and a third-party claims administrator, contain information relevant to the actual expense already incurred with each claim as well as the third-party administrator’s estimate of the anticipated total cost of the claim. This information is reviewed by the Company quarterly and provided to the actuary semi-annually. Based on the Company’s evaluation of the actual claim information obtained, the semi-annual estimates received from the third-party actuary, the amounts paid and committed for settlements of claims and on estimates regarding the number and cost of additional claims anticipated in the future, the reserve estimate for a particular period may be revised upward or downward on a quarterly basis. Any increase in the accrual decreases results of operations in the period and any reduction in the accrual increases results of operations during the period. As of March 31, 2016 , the Company is engaged in 52 professional liability lawsuits. Eleven lawsuits are currently scheduled for trial or arbitration during the next twelve months, and it is expected that additional cases will be set for trial or hearing. The Company’s cash expenditures for self-insured professional liability costs from continuing operations were $613,000 and $840,000 for the three months ended March 31, 2016 and 2015 , respectively. Although the Company adjusts its accrual for professional and general liability claims on a quarterly basis and retains a third-party actuarial firm semi-annually to assist management in estimating the appropriate accrual, professional and general liability claims are inherently uncertain, and the liability associated with anticipated claims is very difficult to estimate. Professional liability cases have a long cycle from the date of an incident to the date a case is resolved, and final determination of the Company’s actual liability for claims incurred in any given period is a process that takes years. As a result, the Company’s actual liabilities may vary significantly from the accrual, and the amount of the accrual has and may continue to fluctuate by a material amount in any given period. Each change in the amount of this accrual will directly affect the Company’s reported earnings and financial position for the period in which the change in accrual is made. Other Insurance With respect to workers’ compensation insurance, substantially all of the Company’s employees became covered under either an indemnity insurance plan or state-sponsored programs in May 1997. The Company is completely self-insured for workers’ compensation exposures prior to May 1997. The Company has been and remains a non-subscriber to the Texas workers’ compensation system and is, therefore, completely self-insured for employee injuries with respect to its Texas operations. From June 30, 2003 until June 30, 2007, the Company’s workers’ compensation insurance programs provided coverage for claims incurred with premium adjustments depending on incurred losses. For the period from July 1, 2008 through March 31, 2016 , the Company is covered by a prefunded deductible policy. Under this policy, the Company is self-insured for the first $500,000 per claim, subject to an aggregate maximum of $3,000,000 . The Company funds a loss fund account with the insurer to pay for claims below the deductible. The Company accounts for premium expense under this policy based on its estimate of the level of claims subject to the policy deductibles expected to be incurred. The liability for workers’ compensation claims is $209,000 at March 31, 2016 . The Company has a non-current receivable for workers’ compensation policies covering previous years of $1,009,000 as of March 31, 2016 . The non-current receivable is a function of payments paid to the Company’s insurance carrier in excess of the estimated level of claims expected to be incurred. As of March 31, 2016 , the Company is self-insured for health insurance benefits for certain employees and dependents for amounts up to $175,000 per individual annually. The Company provides reserves for the settlement of outstanding self-insured health claims at amounts believed to be adequate. The liability for reported claims and estimates for incurred but unreported claims is $855,000 at March 31, 2016 . The differences between actual settlements and reserves are included in expense in the period finalized.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Overview of Plans In December 2005, the Compensation Committee of the Board of Directors adopted the 2005 Long-Term Incentive Plan (“2005 Plan”). The 2005 Plan allows the Company to issue stock options and other share and cash based awards. Under the 2005 Plan, 700,000 shares of the Company's common stock have been reserved for issuance upon exercise of equity awards granted thereunder. All grants under this plan expire 10 years from the date the grants were authorized by the Board of Directors. In June 2008, the Company adopted the Advocat Inc. 2008 Stock Purchase Plan for Key Personnel (“Stock Purchase Plan”). The Stock Purchase Plan provides for the granting of rights to purchase shares of the Company's common stock to directors and officers and 150,000 shares of the Company's common stock has been reserved for issuance under the Stock Purchase Plan. The Stock Purchase Plan allows participants to elect to utilize a specified portion of base salary, annual cash bonus, or director compensation to purchase restricted shares or restricted share units (“RSU's”) at 85% of the quoted market price of a share of the Company's common stock on the date of purchase. The restriction period under the Stock Purchase Plan is generally two years from the date of purchase and during which the shares will have the rights to receive dividends, however, the restricted share certificates will not be delivered to the shareholder and the shares cannot be sold, assigned or disposed of during the restriction period. No grants can be made under the Stock Purchase Plan after April 25, 2018. In April 2010, the Compensation Committee of the Board of Directors adopted the 2010 Long-Term Incentive Plan (“2010 Plan”), followed by approval by the Company's shareholders in June 2010. The 2010 Plan allows the Company to issue stock appreciation rights, stock options and other share and cash based awards. Under the 2010 Plan, 380,000 shares of the Company's common stock have been reserved for issuance upon exercise of equity awards granted. Equity Grants and Valuations During the three months ended March 31, 2016 and 2015 , the Compensation Committee of the Board of Directors approved grants totaling approximately 83,000 and 74,000 shares of restricted common stock to certain employees and members of the Board of Directors, respectively. The fair value of restricted shares are determined as the quoted market price of the underlying common shares at the date of the grant. The restricted shares typically vest 33% on the first, second and third anniversaries of the grant date. Unvested shares may not be sold or transferred. During the vesting period, dividends accrue on the restricted shares, but are paid in additional shares of common stock upon vesting, subject to the vesting provisions of the underlying restricted shares. The restricted shares are entitled to the same voting rights as other common shares. Upon vesting, all restrictions are removed. Summarized activity of the equity compensation plans is presented below: Weighted Options/ Average SOSARs Exercise Price Outstanding, December 31, 2015 232,000 $ 6.97 Granted — — Exercised — — Expired or cancelled — — Outstanding, March 31, 2016 232,000 $ 6.97 Exercisable, March 31, 2016 222,000 $ 6.83 Weighted Average Restricted Grant Date Shares Fair Value Outstanding, December 31, 2015 141,000 $ 9.07 Granted 83,000 8.87 Dividend Equivalents 1,000 8.50 Vested (68,000 ) 7.85 Cancelled (4,000 ) 9.66 Outstanding, March 31, 2016 153,000 $ 9.48 Summarized activity of the Restricted Share Units for the Stock Purchase Plan is as follows: Weighted Average Restricted Grant Date Share Units Fair Value Outstanding, December 31, 2015 62,000 $ 9.58 Granted 17,000 8.87 Dividend Equivalents 1,000 8.50 Vested (24,000 ) 5.68 Cancelled — — Outstanding, March 31, 2016 56,000 $ 11.06 Prior to 2015 , the Compensation Committee of the Board of Directors also approved grants of Stock Only Stock Appreciation Rights (“SOSARs”) and Stock Options at the market price of the Company's common stock on the grant date. The SOSARs and Options vest 33% on the first, second and third anniversaries of the grant date, and expire 10 years from the grant date. The SOSARs and Options were valued and recorded in the same manner, and will be settled with issuance of new stock for the difference between the market price on the date of exercise and the exercise price. The Company estimated the total recognized and unrecognized compensation related to SOSARs and stock options using the Black-Scholes-Merton equity grant valuation model. In computing the fair value estimates using the Black-Scholes-Merton valuation model, the Company took into consideration the exercise price of the equity grants and the market price of the Company's stock on the date of grant. The Company used an expected volatility that equals the historical volatility over the most recent period equal to the expected life of the equity grants. The risk free interest rate is based on the U.S. treasury yield curve in effect at the time of grant. The Company used the expected dividend yield at the date of grant, reflecting the level of annual cash dividends currently being paid on its common stock. While no SOSARs or Options were granted during 2016 and 2015 , previously granted SOSARs and Options remain outstanding as of March 31, 2016 . The following table summarizes information regarding stock options and SOSAR grants outstanding as of March 31, 2016 : Weighted Average Intrinsic Intrinsic Range of Exercise Grants Value-Grants Grants Value-Grants Exercise Prices Prices Outstanding Outstanding Exercisable Exercisable $10.21 to $11.59 $ 10.88 62,000 $ — 52,000 $ — $2.37 to $6.21 $ 5.54 170,000 $ 444,000 170,000 $ 444,000 232,000 222,000 Stock-based compensation expense is non-cash and is included as a component of general and administrative expense or operating expense based upon the classification of cash compensation paid to the related employees. The Company recorded total stock-based compensation expense of $252,000 and $155,000 in the three month periods ended March 31, 2016 and 2015 , respectively.

Earnings (Loss) Per Common Shar

Earnings (Loss) Per Common Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER COMMON SHARE	EARNINGS (LOSS) PER COMMON SHARE Information with respect to basic and diluted net income (loss) per common share is presented below in thousands, except per share: Three Months Ended March 31, 2016 2015 Numerator: Income amounts attributable to Diversicare Healthcare Services, Inc. common shareholders: Income (loss) from continuing operations $ (74 ) $ 5 Loss from discontinued operations, net of income taxes (37 ) (263 ) Net loss attributable to Diversicare Healthcare Services, Inc. common shareholders $ (111 ) $ (258 ) Three Months Ended March 31, 2016 2015 Net income (loss) per common share: Per common share – basic Loss from continuing operations $ (0.01 ) $ — Loss from discontinued operations (0.01 ) (0.04 ) Net loss per common share – basic $ (0.02 ) $ (0.04 ) Per common share – diluted Loss from continuing operations $ (0.01 ) $ — Loss from discontinued operations (0.01 ) (0.04 ) Net loss per common share – diluted $ (0.02 ) $ (0.04 ) Denominator: Weighted Average Common Shares Outstanding: Basic 6,160 6,045 Diluted 6,160 6,045 The effects of 62,000 and 52,000 SOSARs and options outstanding were excluded from the computation of diluted earnings per common share in the three months ended March 31, 2016 and 2015 , respectively, because these securities would have been anti-dilutive.

Equity Method Investment

Equity Method Investment	3 Months Ended
	Mar. 31, 2016
Equity Method Investments and Joint Ventures [Abstract]
EQUITY METHOD INVESTMENT	EQUITY METHOD INVESTMENT The investment in unconsolidated affiliate reflected on the interim consolidated balance sheet relates to a pharmacy joint venture partnership in which the Company owns 50% . This investment in unconsolidated affiliate is accounted for using the equity method as the Company exerts significant influence, but does not control or otherwise consolidate the entity. The investment in unconsolidated affiliate balance at March 31, 2016 , was $831,000 as compared to $798,000 at December 31, 2015 . Additionally, the Company's share of the net profits and losses of the unconsolidated affiliate are reported in equity in net earnings or losses of unconsolidated affiliate in our statement of operations. The Company's equity in the net income of unconsolidated affiliate for the quarter ended March 31, 2016 , was $33,000 as compared to $108,000 for the quarter ended March 31, 2015 .

Business Development

Business Development	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS DEVELOPMENT	BUSINESS DEVELOPMENT 2016 Acquisitions On February 26, 2016, the Company exercised its purchase options to acquire the real estate assets for Diversicare of Hutchinson in Hutchinson, Kansas and Clinton Place in Clinton, Kentucky for $4,250,000 and $3,300,000 , respectively. Diversicare has operated these facilities since February 2015 and April 2012, respectively. Hutchinson is an 85 -bed skilled nursing facility, and Clinton is an 88 -bed skilled nursing facility. As a result of the consummation of the Agreements, the Company allocated the purchase price and acquisition costs between the assets acquired. The allocation of the purchase price was determined with the assistance of HealthTrust LLC, a third-party real estate valuation firm. The allocation for the assets acquired is as follows: Hutchinson Clinton Place Purchase Price $ 4,250,000 $ 3,300,000 Acquisition Costs 43,000 34,000 $ 4,293,000 $ 3,334,000 Allocation: Property 3,808,000 3,165,000 Furniture, Fixtures and Equipment 485,000 169,000 $ 4,293,000 $ 3,334,000 2015 Acquisitions On February 1, 2015, the Company entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Barren County Health Care Center, Inc. to acquire certain land, improvements, furniture, fixtures and equipment, personal property and intangible property, together comprising a 94 -bed skilled nursing center in Glasgow, Kentucky, for an aggregate purchase price of $7,000,000 . As a result of this business combination transaction, the Company allocated the purchase price of $7,000,000 based on the fair value of the acquired net assets. The allocation of the purchase price was determined with the assistance of HealthTrust LLC, a third-party real estate valuation firm. The allocation for the net assets acquired is as follows: February 1, 2015 Purchase Price $ 7,000,000 Land 672,000 Buildings 5,778,000 Furniture, Fixtures, and Equipment 550,000 $ 7,000,000 On November 1, 2015, the Company entered into an Asset Purchase Agreement with Haws Fulton Investors, LLC to acquire certain land, improvements, furniture, fixtures and equipment, personal property and intangible property, together comprising a 60 -bed skilled nursing center in Fulton, Kentucky, for an aggregate purchase price of $3,900,000 . As a result of this business combination transaction, the Company allocated the purchase price of $3,900,000 based on the fair value of the acquired net assets. The allocation for the net assets acquired is as follows: November 1, 2015 Purchase Price $ 3,900,000 Land 300,000 Buildings 3,338,000 Furniture, Fixtures, and Equipment 262,000 $ 3,900,000

Consolidation and Basis of Pr17

Consolidation and Basis of Presentation of Financial Statements (Policies)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation	The interim consolidated financial statements include the operations and accounts of Diversicare Healthcare Services and its subsidiaries, all wholly-owned. All significant intercompany accounts and transactions have been eliminated in consolidation. The investment in an unconsolidated affiliate (a 50 percent -owned joint venture partnership) is accounted for using the equity method and is described in Note 8.
Basis of Accounting	The interim consolidated financial statements for the three month periods ended March 31, 2016 and 2015 , included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management of the Company, the accompanying interim consolidated financial statements reflect all normal, recurring adjustments necessary to present fairly the Company’s financial position at March 31, 2016 , and the results of operations for the three month periods ended March 31, 2016 and 2015 , and cash flows for the three month periods ended March 31, 2016 and 2015 . The Company’s balance sheet information at December 31, 2015 , was derived from its audited consolidated financial statements as of December 31, 2015 . The results of operations for the periods ended March 31, 2016 and 2015 are not necessarily indicative of the operating results that may be expected for a full year. These interim consolidated financial statements should be read in connection with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 .
Recent Accounting Guidance	RECENT ACCOUNTING GUIDANCE In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on January 1, 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (Topic 835), which amends and simplifies the presentation of debt issuance costs. The main provisions of the standard require that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, and amortization of the debt issuance costs must be reported as interest expense. The Company adopted ASU No. 2015-03 as of January 1, 2016. The new standard was applied on a retroactive basis and the Company has complied with the applicable disclosures for a change in accounting principle. The adoption of this guidance has not had and is not expected to have material impact on the Company's consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which changes how deferred taxes are classified on our balance sheets and is effective for financial statements issued for annual periods beginning after December 15, 2016, with early adoption permitted. ASU 2015-17 requires all deferred tax assets and liabilities to be classified as non-current. Upon adoption, the Company anticipates reclassifying deferred income taxes of approximately $7,944,000 from current to non-current assets. In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU was issued as part of the FASB Simplification Initiative and involves several aspects of accounting for shared-based payment transactions, including the income tax consequences and classification on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is currently assessing the impact of this new accounting pronouncement on the Company's results of operations, financial position, and cash flows.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summarized activity of equity compensation plans	Summarized activity of the equity compensation plans is presented below: Weighted Options/ Average SOSARs Exercise Price Outstanding, December 31, 2015 232,000 $ 6.97 Granted — — Exercised — — Expired or cancelled — — Outstanding, March 31, 2016 232,000 $ 6.97 Exercisable, March 31, 2016 222,000 $ 6.83
Schedule of summarized activity of Restricted Share Units	Summarized activity of the Restricted Share Units for the Stock Purchase Plan is as follows: Weighted Average Restricted Grant Date Share Units Fair Value Outstanding, December 31, 2015 62,000 $ 9.58 Granted 17,000 8.87 Dividend Equivalents 1,000 8.50 Vested (24,000 ) 5.68 Cancelled — — Outstanding, March 31, 2016 56,000 $ 11.06 Weighted Average Restricted Grant Date Shares Fair Value Outstanding, December 31, 2015 141,000 $ 9.07 Granted 83,000 8.87 Dividend Equivalents 1,000 8.50 Vested (68,000 ) 7.85 Cancelled (4,000 ) 9.66 Outstanding, March 31, 2016 153,000 $ 9.48
Schedule of summarized information regarding stock options and SOSAR grants outstanding	The following table summarizes information regarding stock options and SOSAR grants outstanding as of March 31, 2016 : Weighted Average Intrinsic Intrinsic Range of Exercise Grants Value-Grants Grants Value-Grants Exercise Prices Prices Outstanding Outstanding Exercisable Exercisable $10.21 to $11.59 $ 10.88 62,000 $ — 52,000 $ — $2.37 to $6.21 $ 5.54 170,000 $ 444,000 170,000 $ 444,000 232,000 222,000

Earnings (Loss) Per Common Sh19

Earnings (Loss) Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Basic and diluted net income (loss) per common share	Information with respect to basic and diluted net income (loss) per common share is presented below in thousands, except per share: Three Months Ended March 31, 2016 2015 Numerator: Income amounts attributable to Diversicare Healthcare Services, Inc. common shareholders: Income (loss) from continuing operations $ (74 ) $ 5 Loss from discontinued operations, net of income taxes (37 ) (263 ) Net loss attributable to Diversicare Healthcare Services, Inc. common shareholders $ (111 ) $ (258 ) Three Months Ended March 31, 2016 2015 Net income (loss) per common share: Per common share – basic Loss from continuing operations $ (0.01 ) $ — Loss from discontinued operations (0.01 ) (0.04 ) Net loss per common share – basic $ (0.02 ) $ (0.04 ) Per common share – diluted Loss from continuing operations $ (0.01 ) $ — Loss from discontinued operations (0.01 ) (0.04 ) Net loss per common share – diluted $ (0.02 ) $ (0.04 ) Denominator: Weighted Average Common Shares Outstanding: Basic 6,160 6,045 Diluted 6,160 6,045

Business Development (Tables)

Business Development (Tables)	3 Months Ended
	Mar. 31, 2016
Diversicare of Hutchinson and Clinton Place
Business Acquisition [Line Items]
Schedule of allocation for net assets acquired	The allocation for the assets acquired is as follows: Hutchinson Clinton Place Purchase Price $ 4,250,000 $ 3,300,000 Acquisition Costs 43,000 34,000 $ 4,293,000 $ 3,334,000 Allocation: Property 3,808,000 3,165,000 Furniture, Fixtures and Equipment 485,000 169,000 $ 4,293,000 $ 3,334,000
Skilled Nursing Center in Glasgow, Kentucky
Business Acquisition [Line Items]
Schedule of allocation for net assets acquired	The allocation for the net assets acquired is as follows: February 1, 2015 Purchase Price $ 7,000,000 Land 672,000 Buildings 5,778,000 Furniture, Fixtures, and Equipment 550,000 $ 7,000,000
Skilled Nursing Center in Fulton, Kentucky
Business Acquisition [Line Items]
Schedule of allocation for net assets acquired	The allocation for the net assets acquired is as follows: November 1, 2015 Purchase Price $ 3,900,000 Land 300,000 Buildings 3,338,000 Furniture, Fixtures, and Equipment 262,000 $ 3,900,000

Business (Details)

Business (Details)	Mar. 31, 2016StateCenterBed
Accounting Policies [Line Items]
Number of states in which entity operates | State	9
Number of nursing centers | Center	55
Number of licensed nursing beds	6,060
Number of nursing center facilities owned | Center	17
Number of nursing center facilities leased | Center	38
Number of licensed assisted living beds	496
Minimum
Accounting Policies [Line Items]
Number of licensed nursing beds per center	48
Maximum
Accounting Policies [Line Items]
Number of licensed nursing beds per center	320

Consolidation and Basis of Pr22

Consolidation and Basis of Presentation of Financial Statements (Details)	Mar. 31, 2016
Consolidation and Basis of Presentation of Financial Statements (Textual) [Abstract]
Percentage of owned joint venture Investment in nonconsolidated affiliate	50.00%

Recent Accounting Guidance (Nar

Recent Accounting Guidance (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification of current deferred income tax assets		$ (7,944)	$ (7,999)
Scenario, Forecast | Accounting Standards Update 2015-17
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification of current deferred income tax assets	$ 7,944
Reclassification of current deferred income tax assets to non-current	$ 7,944

Long-Term Debt and Interest R24

Long-Term Debt and Interest Rate Swap (Details)	Feb. 26, 2016USD ($)Center	Mar. 31, 2016USD ($)Letter_Of_Credit	Dec. 31, 2015USD ($)
Line of Credit Facility [Line Items]
Accumulated other comprehensive loss		$ 554,000	$ 387,000
Interest rate swap
Line of Credit Facility [Line Items]
Long-term debt fixed based on the interest rate swap		5.79%
Interest rate swap | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent
Line of Credit Facility [Line Items]
Accumulated other comprehensive loss		$ 608,000
Income tax benefit		(372,000)
Interest rate swap | Other Noncurrent Liabilities
Line of Credit Facility [Line Items]
Liability at fair value		$ (980,000)
Credit Agreement | Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
Revolving credit facility and the maximum loan	$ 100,000,000
Mortgage Loan | Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
Revolving credit facility and the maximum loan	$ 72,500,000
Term of agreements		5 years
Mortgage loan with principal and interest payable monthly based		25 years
Debt interest rate at period end	5.79%
Number of owned nursing centers secured | Center	17
Amended mortgage loan balance		$ 60,000,000
Mortgage Loan | Amended and Restated Credit Agreement | Interest rate swap | Designated as Hedging Instrument
Line of Credit Facility [Line Items]
Notional amount of interest rate derivatives	$ 30,000,000
Mortgage Loan | Amended and Restated Credit Agreement | LIBOR
Line of Credit Facility [Line Items]
Interest rate percentage	4.00%
Revolving credit facility | Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
Revolving credit facility and the maximum loan	$ 27,500,000
Loan acquisition costs	1,812,000
Term of agreements		5 years
Debt interest rate at period end		4.44%
Borrowings outstanding		$ 5,000,000	$ 12,900,000
Borrowing under the revolving credit facility		12,247,000
Letter of Credit | Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
Borrowings outstanding		$ 8,106,000
Letters of credit issued under Revolver outstanding		3.00%
Number of letters of credit | Letter_Of_Credit		11
Term loan facility | Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
Revolving credit facility and the maximum loan	$ 60,000,000
Term loan facility | Amended and Restated Credit Agreement | LIBOR
Line of Credit Facility [Line Items]
Interest rate percentage	4.00%
Acquisition loan facility | Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
Revolving credit facility and the maximum loan	$ 12,500,000
Acquisition loan facility | Amended and Restated Credit Agreement | LIBOR
Line of Credit Facility [Line Items]
Interest rate percentage	4.75%

Insurance Matters (Details)

Insurance Matters (Details)	3 Months Ended
	Mar. 31, 2016USD ($)LawsuitInsurance_Policy	Mar. 31, 2015USD ($)
Malpractice Insurance [Line Items]
Number of professional liability lawsuits | Lawsuit	52
Cash expenditures for self-insured professional liability costs	$ 613,000	$ 840,000
Other Insurance Industry Disclosures [Abstract]
Liability for workers compensation claims	209,000
Workers compensation insurance, non current receivable for excess premiums paid	1,009,000
Health insurance, maximum self-insured annual amount per individual	175,000
Liability for reported claims and estimates for incurred but unreported claims	$ 855,000
Scheduled for trial or arbitration over next 12 months
Malpractice Insurance [Line Items]
Number of professional liability lawsuits | Lawsuit	11
Professional malpractice liability insurance
Malpractice Insurance [Line Items]
Liability for reported and estimated future claims	$ 20,771,000
Prefunded deductible policy
Malpractice Insurance [Line Items]
Insurance policy coverage limits per claim	500,000
Other Insurance Industry Disclosures [Abstract]
Professional liability insurance, annual coverage limit per facility	3,000,000
SHC Risk Carriers, Inc | Professional malpractice liability insurance
Malpractice Insurance [Line Items]
Insurance policy coverage limits per claim	500,000
Annual sublimit per center	1,000,000
Maximum annual coverage	5,000,000
Unaffiliated Entities | Professional malpractice liability insurance
Malpractice Insurance [Line Items]
Insurance policy coverage limits per claim	1,000,000
Annual sublimit per center	$ 3,000,000
Number of types of professional liability insurance policies | Insurance_Policy	7

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 252	$ 155
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant of restricted common stock (shares)	83,000	74,000
Restricted Stock | Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vest of restricted stock on each year (percentage)	33.00%
Restricted Stock | Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vest of restricted stock on each year (percentage)	33.00%
Restricted Stock | Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vest of restricted stock on each year (percentage)	33.00%
2005 Long Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance	700,000
Expiration period	10 years
2008 Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance	150,000
Percentage of quoted market price offering rate	85.00%
Restriction period	2 years
2010 Long Term Incentive Plan | Stock Only Stock Appreciation Rights (SOSARS)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance	380,000

Share-Based Compensation (Share

Share-Based Compensation (Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable) (Details) - Stock Options and Stock Appreciation Rights (SARs) shares in Thousands	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, December 31, 2015 | shares	232
Granted | shares	0
Exercised | shares	0
Expired or cancelled | shares	0
Outstanding, March 31, 2016 | shares	232
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding, December 31, 2015 | $ / shares	$ 6.97
Granted | $ / shares	0
Exercised | $ / shares	0
Expired or cancelled | $ / shares	0
Outstanding, March 31, 2016 | $ / shares	$ 6.97
Exercisable, shares | shares	222
Exercisable, Weighted Average Exercise Price | $ / shares	$ 6.83

Stock-Based Compensation (Restr

Stock-Based Compensation (Restricted Stock and Restricted Stock Units Activity) (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, December 31, 2015 | shares	141
Granted | shares	83
Dividend Equivalents | shares	1
Vested | shares	(68)
Cancelled | shares	(4)
Outstanding, March 31, 2016 | shares	153
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding, December 31, 2015 | $ / shares	$ 9.07
Granted | $ / shares	8.87
Dividend Equivalents | $ / shares	8.50
Vested | $ / shares	7.85
Cancelled | $ / shares	9.66
Outstanding, March 31, 2016 | $ / shares	$ 9.48
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, December 31, 2015 | shares	62
Granted | shares	17
Dividend Equivalents | shares	1
Vested | shares	(24)
Cancelled | shares	0
Outstanding, March 31, 2016 | shares	56
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding, December 31, 2015 | $ / shares	$ 9.58
Granted | $ / shares	8.87
Dividend Equivalents | $ / shares	8.50
Vested | $ / shares	5.68
Cancelled | $ / shares	0
Outstanding, March 31, 2016 | $ / shares	$ 11.06

Stock-Based Compensation (Sched

Stock-Based Compensation (Schedule of Stock Options Outstanding and Exercisable) (Details) - Stock Options and Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Exercise Prices	$ 6.97	$ 6.97
Grants Outstanding	232
Grants Exercisable	222
$10.21 to $11.59
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices, Maximum	$ 10.21
Range of Exercise Prices, Maximum	11.59
Weighted Average Exercise Prices	$ 10.88
Grants Outstanding	62
Intrinsic Value-Grants Outstanding	$ 0
Grants Exercisable	52
Intrinsic Value- Grants Exercisable	$ 0
$2.37 to $6.21
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of Exercise Prices, Maximum	$ 2.37
Range of Exercise Prices, Maximum	6.21
Weighted Average Exercise Prices	$ 5.54
Grants Outstanding	170
Intrinsic Value-Grants Outstanding	$ 444
Grants Exercisable	170
Intrinsic Value- Grants Exercisable	$ 444

Earnings (Loss) Per Common Sh30

Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Numerator: Income amounts attributable to Diversicare Healthcare Services, Inc. common shareholders:
Income (loss) from continuing operations	$ (74)	$ 5
Loss from discontinued operations, net of income taxes	(37)	(263)
Net loss attributable to Diversicare Healthcare Services, Inc. common shareholders	$ (111)	$ (258)
Per common share – basic
Loss from continuing operations (in dollars per share)	$ (0.01)	$ 0
Loss from discontinued operations (in dollars per share)	(0.01)	(0.04)
Net loss per common share – basic	(0.02)	(0.04)
Per common share – diluted
Loss from continuing operations (in dollars per share)	(0.01)	0
Loss from discontinued operations (in dollars per share)	(0.01)	(0.04)
Net loss per common share – diluted	$ (0.02)	$ (0.04)
Denominator: Weighted Average Common Shares Outstanding:
Basic (shares)	6,160	6,045
Diluted (shares)	6,160	6,045

Earnings (Loss) Per Common Sh31

Earnings (Loss) Per Common Share (Details Textual) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Antidilutive shares excluded from computation of diluted earnings per share	62	52

Equity Method Investment (Detai

Equity Method Investment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]
Percentage of owned joint venture Investment in nonconsolidated affiliate	50.00%
Investment in unconsolidated affiliate	$ 831		$ 798
Equity in net income of unconsolidated affiliate	$ 33	$ 108

Business Development (Details)

Business Development (Details) $ in Thousands	Feb. 26, 2016USD ($)Bed	Nov. 01, 2015USD ($)Bed	Feb. 01, 2015USD ($)Bed	Mar. 31, 2016Bed
Business Acquisition [Line Items]
Number of licensed nursing beds				6,060
Skilled Nursing Center in Glasgow, Kentucky | Barren County Health Care Center Inc
Business Acquisition [Line Items]
Purchase Price | $			$ 7,000
Number of licensed nursing beds			94
Skilled Nursing Center in Fulton, Kentucky | Haws Fulton Investors, LLC
Business Acquisition [Line Items]
Purchase Price | $		$ 3,900
Number of licensed nursing beds		60
Hutchinson | Diversicare of Hutchinson
Business Acquisition [Line Items]
Purchase Price | $	$ 4,250
Number of licensed nursing beds	85
Clinton, Kentucky | Clinton Place
Business Acquisition [Line Items]
Purchase Price | $	$ 3,300
Number of licensed nursing beds	88

Business Development (Schedule

Business Development (Schedule of Assets Acquired) (Details) - USD ($) $ in Thousands	Feb. 26, 2016	Nov. 01, 2015	Feb. 01, 2015
Diversicare of Hutchinson | Hutchinson
Business Acquisition [Line Items]
Purchase Price	$ 4,250
Acquisition Costs	43
Total	4,293
Property	3,808
Furniture, Fixtures, and Equipment	485
Total purchase price	4,293
Clinton Place | Clinton Place
Business Acquisition [Line Items]
Purchase Price	3,300
Acquisition Costs	34
Total	3,334
Property	3,165
Furniture, Fixtures, and Equipment	169
Total purchase price	$ 3,334
Skilled Nursing Center in Glasgow, Kentucky | Barren County Health Care Center Inc
Business Acquisition [Line Items]
Purchase Price			$ 7,000
Land			672
Buildings			5,778
Furniture, Fixtures, and Equipment			550
Total purchase price			$ 7,000
Skilled Nursing Center in Fulton, Kentucky | Haws Fulton Investors, LLC
Business Acquisition [Line Items]
Purchase Price		$ 3,900
Land		300
Buildings		3,338
Furniture, Fixtures, and Equipment		262
Total purchase price		$ 3,900