Diversicare Healthcare Services (DVCR) 10-Q 4 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 29, 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	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		6,361,331

Interim Consolidated Balance Sh

Interim Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 3,061	$ 4,585
Receivables, less allowance for doubtful accounts of $9,176 and $8,180, respectively	40,075	43,819
Other receivables	2,085	1,407
Prepaid expenses and other current assets	2,922	2,223
Income tax refundable	321	347
Current assets of discontinued operations	44	36
Deferred income taxes	7,426	7,999
Total current assets	55,934	60,416
PROPERTY AND EQUIPMENT, at cost	123,856	114,383
Less accumulated depreciation and amortization	(65,393)	(62,110)
Property and equipment, net	58,463	52,273
OTHER ASSETS:
Deferred income taxes	14,238	11,762
Deferred lease and other costs, net	208	382
Investment in unconsolidated affiliate	859	798
Other noncurrent assets	2,162	3,994
Acquired leasehold interest, net	7,267	7,459
Total other assets	24,734	24,395
Total assets	139,131	137,084
CURRENT LIABILITIES:
Current portion of long-term debt and capitalized lease obligations	7,385	6,603
Trade accounts payable	11,392	10,136
Current liabilities of discontinued operations	417	345
Accrued expenses:
Payroll and employee benefits	14,929	14,404
Self-insurance reserves, current portion	9,608	10,224
Other current liabilities	5,627	5,652
Total current liabilities	49,358	47,364
NONCURRENT LIABILITIES:
Long-term debt and capitalized lease obligations, less current portion and deferred financing costs	55,958	53,297
Self-insurance reserves, noncurrent portion	11,595	12,344
Other noncurrent liabilities	11,818	10,812
Total noncurrent liabilities	79,371	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 6,361,000 and 6,281,000 shares outstanding, respectively	66	65
Treasury stock at cost, 232,000 shares of common stock	(2,500)	(2,500)
Paid-in capital	21,472	21,142
Accumulated deficit	(8,020)	(5,053)
Accumulated other comprehensive loss	(616)	(387)
Total shareholders’ equity	10,402	13,267
Total liabilities and shareholder's equity	$ 139,131	$ 137,084

Interim Consolidated Balance S3

Interim Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 9,176	$ 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)	6,361,000	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		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
PATIENT REVENUES, net	$ 95,805	$ 96,288	$ 193,750	$ 191,513
EXPENSES:
Operating	78,385	76,652	157,003	153,797
Lease and rent expense	6,854	7,186	14,106	14,331
Professional liability	1,934	1,926	4,000	4,081
General and administrative	6,881	6,341	13,615	12,392
Depreciation and amortization	2,060	1,863	4,063	3,742
Lease termination costs	2,008	0	2,008	0
Total expenses	98,122	93,968	194,795	188,343
OPERATING INCOME (LOSS)	(2,317)	2,320	(1,045)	3,170
OTHER EXPENSE:
Equity in net income of unconsolidated affiliate	28	75	61	183
Interest expense, net	(1,158)	(1,049)	(2,228)	(1,999)
Debt retirement costs			(351)	0
Total other expense	(1,130)	(974)	(2,518)	(1,816)
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(3,447)	1,346	(3,563)	1,354
BENEFIT (PROVISION) FOR INCOME TAXES	1,297	(539)	1,339	(542)
INCOME (LOSS) FROM CONTINUING OPERATIONS	(2,150)	807	(2,224)	812
LOSS FROM DISCONTINUED OPERATIONS:
Operating loss, net of tax benefit of $0 and $224, respectively	0	(299)	(37)	(562)
NET INCOME (LOSS)	$ (2,150)	$ 508	$ (2,261)	$ 250
Per common share – basic
Continuing operations (dollars per share)	$ (0.35)	$ 0.13	$ (0.36)	$ 0.13
Discontinued operations (dollars per share)	0	(0.05)	(0.01)	(0.09)
Net income (loss) per common share – basic (dollars per share)	(0.35)	0.08	(0.37)	0.04
Per common share – diluted
Continuing operations (dollars per share)	(0.35)	0.13	(0.36)	0.13
Discontinued operations (dollars per share)	0	(0.05)	(0.01)	(0.09)
Net income (loss) per common share – diluted (dollars per share)	(0.35)	0.08	(0.37)	0.04
COMMON STOCK DIVIDENDS DECLARED PER SHARE OF COMMON STOCK (dollars per share)	$ 0.055	$ 0.055	$ 0.11	$ 0.11
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic (shares)	6,211	6,098	6,185	6,072
Diluted (shares)	6,211	6,327	6,185	6,302

Interim Consolidated Statement5

Interim Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Tax effect on operating income	$ 0	$ 224	$ 21	$ 392

Interim Consolidated Statement6

Interim Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
NET INCOME (LOSS)	$ (2,150)	$ 508	$ (2,261)	$ 250
OTHER COMPREHENSIVE INCOME:
Change in fair value of cash flow hedge, net of tax	181	53	492	231
Less: reclassification adjustment for amounts recognized in net income	(119)	(116)	(263)	(236)
Total other comprehensive income (loss)	62	(63)	229	(5)
COMPREHENSIVE INCOME (LOSS)	$ (2,088)	$ 445	$ (2,032)	$ 245

Interim Consolidated Statement7

Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME (LOSS)	$ (2,261)	$ 250
Discontinued operations	(37)	(562)
Income (loss) from continuing operations	(2,224)	812
Adjustments to reconcile income (loss) from continuing operations to net cash provided by (used in) operating activities:
Depreciation and amortization	4,063	3,742
Provision for doubtful accounts	3,661	3,306
Deferred income tax provision (benefit)	(1,689)	112
Provision for self-insured professional liability, net of cash payments	1,595	1,706
Stock-based compensation	486	702
Equity in net income of unconsolidated affiliate, net of investment	(61)	(183)
Debt retirement costs	351	0
Provision for leases in excess of cash payments	(1,093)	(802)
Lease termination costs, net of cash payments	1,958	0
Other	358	189
Changes in assets and liabilities affecting operating activities:
Receivables, net	(710)	(9,693)
Prepaid expenses and other assets	(384)	(829)
Trade accounts payable and accrued expenses	1,688	1,235
Net cash provided by continuing operations	7,999	297
Discontinued operations	(2,879)	(3,591)
Net cash provided by (used in) operating activities	5,120	(3,294)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(10,055)	(2,360)
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	(8,397)	(6,879)
Discontinued operations	0	0
Net cash used in investing activities	(8,397)	(6,879)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of debt obligations	(66,422)	(7,672)
Proceeds from issuance of debt	71,066	18,855
Financing costs	(1,795)	(180)
Issuance and redemption of employee equity awards	(96)	33
Payment of common stock dividends	(683)	(672)
Payment for preferred stock restructuring	(317)	(307)
Net cash provided by financing activities	1,753	10,057
Discontinued operations	0	0
Net cash provided by financing activities	1,753	10,057
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,524)	(116)
CASH AND CASH EQUIVALENTS, beginning of period	4,585	3,818
CASH AND CASH EQUIVALENTS, end of period	3,061	3,702
SUPPLEMENTAL INFORMATION:
Cash payments of interest	1,904	1,761
Cash payments of income taxes	$ 332	$ 156

Business

Business	6 Months Ended
	Jun. 30, 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 June 30, 2016 , the Company’s continuing operations consist of 54 nursing centers with 5,879 licensed nursing beds. The Company owns 17 and leases 37 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	6 Months Ended
	Jun. 30, 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 to the interim consolidated financial statements. The interim consolidated financial statements for the three and six month periods ended June 30, 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 June 30, 2016 , and the results of operations for the three and six month periods ended June 30, 2016 and 2015 , and cash flows for the six month periods ended June 30, 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 June 30, 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	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
RECENT ACCOUNTING GUIDANCE	RECENT ACCOUNTING GUIDANCE In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. In March 2016, the FASB issued an update to ASU No. 2014-09 in the form of ASU No. 2016-08, which amended the principal-versus-agent implementation guidance and illustrations in the new revenue guidance. The update clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. In April 2016, the FASB issued another update to the new revenue standard in the form of ASU No. 2016-10, which amends the guidance on identifying performance obligations and the implementation guidance on licensing. In May 2016, ASU No. 2016-12 was issued, which amends the new revenue recognition guidance on transition, collectibility, noncash consideration and the presentation of taxes. The new revenue standard (including updates) will be effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted only as of annual reporting periods beginning after December 15, 2016. We will adopt the requirements of this standard effective January 1, 2018, and are currently evaluating the impact of the adoption on our financial condition and results of operations. 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 a 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 $7,426,000 from current to non-current assets. In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard requires that a lessee of operating leases recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The lease liability will be equal to the present value of lease payments, with the right-of-use asset based upon the lease liability. The classification criteria for distinguishing between finance (or capital) leases and operating leases are substantially similar to the previous lease guidance. As such, operating leases will result in straight-line rent expense similar to current practice. For short-term leases (term of 12 months or less), a lessee is permitted to make an accounting election not to recognize lease assets and lease liabilities, which would generally result in lease expense being recognized on a straight-line basis over the lease term. The guidance is effective for annual and interim periods beginning after December 15, 2018, and will require application of the new guidance at the beginning of the earliest comparable period presented. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition. The adoption of this standard is expected to have a material impact on the Company’s financial position. The Company is still evaluating the impact on its results of operations and expects no material impact on liquidity. 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	6 Months Ended
	Jun. 30, 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 June 30, 2016 , the interest rate related to the Amended Mortgage Loan was 4.46% . 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 $59,597,000 as of June 30, 2016 . As of June 30, 2016 , the Company had $5,500,000 borrowings outstanding under the Amended Revolver 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 the Amended Revolver are 3.00% of the amount outstanding. The Company has ten letters of credit with a total value of $7,868,000 outstanding as of June 30, 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 Amended Revolver was $10,824,000 at June 30, 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. As of June 30, 2016 , the Company was compliant with the amended covenants as described in Note 10 to the interim consolidated financial statements. 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 Agreement, the Company amended the terms of its interest rate swap on February 26, 2016. 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 June 30, 2016 , the Company determined that the interest rate swap was effective. The interest rate swap valuation model indicated a net liability of $1,189,000 at June 30, 2016 . The fair value of the interest rate swap is included in “other noncurrent liabilities” on the Company’s interim consolidated balance sheet. The liability related to the interest rate swap included in accumulated other comprehensive loss at June 30, 2016 is $737,180 , net of the income tax benefit of $451,820 . 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 .

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Insurance [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES 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 $20,307,000 as of June 30, 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 June 30, 2016 , the Company is engaged in 55 professional liability lawsuits. Ten 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 $1,542,000 and $1,607,000 for the six months ended June 30, 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. Civil Investigative Demand ("CID") In July 2013, the Company learned that the United States Attorney for the Middle District of Tennessee ("DOJ") had commenced a civil investigation of potential violations of the False Claims Act ("FCA"). In October 2014, the Company learned that the investigation was started by the filing under seal of a false claims action against the two facilities that were the subject of the original CID. In connection with this matter, between July 2013 and early February 2016, the Company has received three civil investigative demands (a form of subpoena) for documents and information relating to our practices and policies for rehabilitation, and other services, our preadmission evaluation forms ("PAEs") required by TennCare and our Pre-Admission Screening and Resident Reviews ("PASSRs") submitted to TennCare. We have responded to those requests and are providing additional information to DOJ. The DOJ’s civil investigation now covers all of the Company’s facilities, but thus far only documents from six of our facilities have been requested. In June 2016, the Company received an authorized investigative demand (a form of subpoena) for documents in connection with a criminal investigation by the DOJ related to our practices with respect to PAEs and PASSRs. The Company intends to provide documents responsive to the subpoena. The Company cannot predict the outcome of these investigations or any possible related proceedings, and the outcome could have a materially adverse effect on the Company, including the imposition of damages, criminal charges, fines, penalties and/or a corporate integrity agreement. The Company is committed to provide caring and professional services to its patients and residents in compliance with applicable laws and regulations. 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, 2007 until June 30, 2008, the Company is completely self-insured for workers' compensation exposure. From July 1, 2008 through June 30, 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 $232,000 at June 30, 2016 . The Company has a non-current receivable for workers’ compensation policies covering previous years of $1,156,000 as of June 30, 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 June 30, 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 $664,000 at June 30, 2016 . The differences between actual settlements and reserves are included in expense in the period finalized.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 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. In June 2016, our shareholders approved an amendment to the Stock Purchase Plan to increase the number of shares of our common stock authorized under the Plan from 150,000 shares to 350,000 shares. No grants can be made under the Stock Purchase Plan after April 25, 2028. 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 six months ended June 30, 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 (1,000 ) 3.91 Expired or cancelled — — Outstanding, June 30, 2016 231,000 $ 6.98 Exercisable, June 30, 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 2,000 8.40 Vested (68,000 ) 7.85 Cancelled (4,000 ) 9.66 Outstanding, June 30, 2016 154,000 $ 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 8.35 Vested (24,000 ) 5.69 Cancelled — — Outstanding, June 30, 2016 56,000 $ 11.04 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 June 30, 2016 . The following table summarizes information regarding stock options and SOSAR grants outstanding as of June 30, 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 $ 5.55 170,000 $ 440,000 170,000 $ 441,000 232,000 222,000 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 $486,000 and $702,000 in the six month periods ended June 30, 2016 and 2015 , respectively.

Earnings (Loss) Per Common Shar

Earnings (Loss) Per Common Share	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net income (loss) Income (loss) from continuing operations $ (2,150 ) $ 807 (2,224 ) 812 Loss from discontinued operations, net of income taxes — (299 ) (37 ) (562 ) Net income (loss) $ (2,150 ) $ 508 $ (2,261 ) $ 250 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net income (loss) per common share: Per common share – basic Income (loss) from continuing operations $ (0.35 ) $ 0.13 $ (0.36 ) $ 0.13 Loss from discontinued operations — (0.05 ) (0.01 ) (0.09 ) Net income (loss) per common share – basic $ (0.35 ) $ 0.08 $ (0.37 ) $ 0.04 Per common share – diluted Income (loss) from continuing operations $ (0.35 ) $ 0.13 $ (0.36 ) $ 0.13 Loss from discontinued operations — (0.05 ) (0.01 ) (0.09 ) Net income (loss) per common share – diluted $ (0.35 ) $ 0.08 $ (0.37 ) $ 0.04 Weighted Average Common Shares Outstanding: Basic 6,211 6,098 6,185 6,072 Diluted 6,211 6,327 6,185 6,302 The effects of 62,000 SOSARs and options outstanding were excluded from the computation of diluted earnings per common share in the six months ended June 30, 2016 , because these securities would have been anti-dilutive. For the six months ended June 30, 2015 , none of the securities were excluded from the computation.

Equity Method Investment

Equity Method Investment	6 Months Ended
	Jun. 30, 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 June 30, 2016 , was $859,000 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 June 30, 2016 , was $28,000 as compared to $75,000 for the quarter ended June 30, 2015 . For the six -month period ended June 30, 2016 , the equity in the net income of unconsolidated affiliate was $61,000 compared to $183,000 for the six -month period ended June 30, 2015 .

Business Development and Other

Business Development and Other Significant Transactions	6 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
BUSINESS DEVELOPMENT AND OTHER SIGNIFICANT TRANSACTIONS	BUSINESS DEVELOPMENTS AND OTHER SIGNIFICANT TRANSACTIONS 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: Buildings 3,443,000 2,898,000 Land 365,000 267,000 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 2016 Lease Termination On May 31, 2016, the Company entered into an Agreement with Avon Ohio, LLC to amend the original lease agreement, thus terminating Diversicare's right of possession of the facility. As a result, the Company incurred lease termination costs of $2.0 million in the second quarter of 2016 . Under the amended agreement, we are required to pay $0.3 million per year through the term of the original lease agreement, July 31, 2024. For accounting purposes, this transaction was not reported as a discontinued operation, which is in accordance with the modified authoritative guidance for reporting discontinued operations, effective January 1, 2015. A disposal is now required to be reported in discontinued operations only if the disposal represents a strategic shift that has (or will have) a major effect on the Company's operations and financial results.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Event	SUBSEQUENT EVENT On August 3, 2016, the Company executed a First Amendment to the Amended Revolver and a First Amendment to the Amended Mortgage Loan, effective June 30, 2016. Under the terms of the Amendments, the minimum fixed charge coverage ratio shall not be less than 1.00 to 1.00 for the quarters ending June 30, 2016, September 30, 2016 and December 31, 2016 and 1.05 to 1.00 for the quarter ending March 31, 2017 and for each quarter thereafter. Further, the minimum Adjusted EBITDA shall not be less than $9,500,000 for the quarter ending June 30, 2016, $8,500,000 for the quarter ending September 30, 2016, $9,500,000 for the quarter ending December 31, 2016, and $10,000,000 for the quarter ending March 31, 2017, and for each quarter thereafter.

Consolidation and Basis of Pr18

Consolidation and Basis of Presentation of Financial Statements (Policies)	6 Months Ended
	Jun. 30, 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 and six month periods ended June 30, 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 June 30, 2016 , and the results of operations for the three and six month periods ended June 30, 2016 and 2015 , and cash flows for the six month periods ended June 30, 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 June 30, 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	In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. In March 2016, the FASB issued an update to ASU No. 2014-09 in the form of ASU No. 2016-08, which amended the principal-versus-agent implementation guidance and illustrations in the new revenue guidance. The update clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. In April 2016, the FASB issued another update to the new revenue standard in the form of ASU No. 2016-10, which amends the guidance on identifying performance obligations and the implementation guidance on licensing. In May 2016, ASU No. 2016-12 was issued, which amends the new revenue recognition guidance on transition, collectibility, noncash consideration and the presentation of taxes. The new revenue standard (including updates) will be effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted only as of annual reporting periods beginning after December 15, 2016. We will adopt the requirements of this standard effective January 1, 2018, and are currently evaluating the impact of the adoption on our financial condition and results of operations. 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 a 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 $7,426,000 from current to non-current assets. In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard requires that a lessee of operating leases recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The lease liability will be equal to the present value of lease payments, with the right-of-use asset based upon the lease liability. The classification criteria for distinguishing between finance (or capital) leases and operating leases are substantially similar to the previous lease guidance. As such, operating leases will result in straight-line rent expense similar to current practice. For short-term leases (term of 12 months or less), a lessee is permitted to make an accounting election not to recognize lease assets and lease liabilities, which would generally result in lease expense being recognized on a straight-line basis over the lease term. The guidance is effective for annual and interim periods beginning after December 15, 2018, and will require application of the new guidance at the beginning of the earliest comparable period presented. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition. The adoption of this standard is expected to have a material impact on the Company’s financial position. The Company is still evaluating the impact on its results of operations and expects no material impact on liquidity. 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)	6 Months Ended
	Jun. 30, 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 (1,000 ) 3.91 Expired or cancelled — — Outstanding, June 30, 2016 231,000 $ 6.98 Exercisable, June 30, 2016 222,000 $ 6.83
Schedule of summarized activity of Restricted Share Units	Weighted Average Restricted Grant Date Shares Fair Value Outstanding, December 31, 2015 141,000 $ 9.07 Granted 83,000 8.87 Dividend Equivalents 2,000 8.40 Vested (68,000 ) 7.85 Cancelled (4,000 ) 9.66 Outstanding, June 30, 2016 154,000 $ 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 8.35 Vested (24,000 ) 5.69 Cancelled — — Outstanding, June 30, 2016 56,000 $ 11.04
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 June 30, 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 $ 5.55 170,000 $ 440,000 170,000 $ 441,000 232,000 222,000

Earnings (Loss) Per Common Sh20

Earnings (Loss) Per Common Share (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net income (loss) Income (loss) from continuing operations $ (2,150 ) $ 807 (2,224 ) 812 Loss from discontinued operations, net of income taxes — (299 ) (37 ) (562 ) Net income (loss) $ (2,150 ) $ 508 $ (2,261 ) $ 250 Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net income (loss) per common share: Per common share – basic Income (loss) from continuing operations $ (0.35 ) $ 0.13 $ (0.36 ) $ 0.13 Loss from discontinued operations — (0.05 ) (0.01 ) (0.09 ) Net income (loss) per common share – basic $ (0.35 ) $ 0.08 $ (0.37 ) $ 0.04 Per common share – diluted Income (loss) from continuing operations $ (0.35 ) $ 0.13 $ (0.36 ) $ 0.13 Loss from discontinued operations — (0.05 ) (0.01 ) (0.09 ) Net income (loss) per common share – diluted $ (0.35 ) $ 0.08 $ (0.37 ) $ 0.04 Weighted Average Common Shares Outstanding: Basic 6,211 6,098 6,185 6,072 Diluted 6,211 6,327 6,185 6,302

Business Development and Othe21

Business Development and Other Significant Transactions(Tables)	6 Months Ended
	Jun. 30, 2016
Diversicare of Hutchinson, Kansas and Clinton Place, Kentucky
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: Buildings 3,443,000 2,898,000 Land 365,000 267,000 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 (Narrative) (Details)

Business (Narrative) (Details)	Jun. 30, 2016statecenterbed
Accounting Policies [Line Items]
Number of states in which entity operates | state	9
Number of nursing centers | center	54
Number of licensed nursing beds	5,879
Number of nursing center facilities owned | center	17
Number of nursing center facilities leased | center	37
Number of licensed assisted and residential 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 Pr23

Consolidation and Basis of Presentation of Financial Statements (Narrative) (Details)	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Percentage of owned joint venture Investment in nonconsolidated affiliate	50.00%

Recent Accounting Guidance (Nar

Recent Accounting Guidance (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Reclassification of current deferred income tax assets	$ (7,426)	$ (7,999)

Long-Term Debt and Interest R25

Long-Term Debt and Interest Rate Swap (Narrative) (Details)	Feb. 26, 2016USD ($)center	Jun. 30, 2016USD ($)letter_of_credit	Dec. 31, 2015USD ($)
Line of Credit Facility [Line Items]
Accumulated other comprehensive loss		$ (616,000)	$ (387,000)
Interest rate swap
Line of Credit Facility [Line Items]
Annual fixed rate percentage		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		$ (737,180)
Income tax benefit		(451,820)
Interest rate swap | Other Noncurrent Liabilities | Fair Value, Inputs, Level 2
Line of Credit Facility [Line Items]
Net liability based on interest rate swap valuation model		$ 1,189,000
Credit Agreement | Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
Borrowing capacity	$ 100,000,000
Mortgage Loan | Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
Borrowing capacity	$ 72,500,000
Term of agreements	5 years
Period of amortization		25 years
Debt interest rate at period end	5.79%	4.46%
Number of owned nursing centers to secure Amended Mortgage Loan | center	17
Amended mortgage loan balance		$ 59,597,000
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
Revolving credit facility | Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
Borrowing capacity	27,500,000
Loan acquisition costs	$ 1,812,000
Term of agreements		5 years
Borrowings outstanding		$ 5,500,000	$ 12,900,000
Balance available for borrowing under revolving credit center		10,824,000
Revolving credit facility | Amended and Restated Credit Agreement | LIBOR
Line of Credit Facility [Line Items]
Interest rate percentage	4.00%
Letter of Credit | Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
Borrowings outstanding		$ 7,868,000
Annual fees for letters of credit issued under Revolver (as a percentage)		3.00%
Number of letters of credit | letter_of_credit		10
Term loan facility | Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
Borrowing capacity	$ 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]
Borrowing capacity	$ 12,500,000
Acquisition loan facility | Amended and Restated Credit Agreement | LIBOR
Line of Credit Facility [Line Items]
Interest rate percentage	4.75%

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details)	6 Months Ended		32 Months Ended
	Jun. 30, 2016USD ($)lawsuitfacilitypolicy	Jun. 30, 2015USD ($)	Feb. 29, 2016civil_investigative_demand	Oct. 31, 2014facility
Malpractice Insurance [Line Items]
Number of professional liability lawsuits | lawsuit	55
Cash expenditures for self-insured professional liability costs	$ 1,542,000	$ 1,607,000
Other Insurance
Liability for workers compensation claims	232,000
Workers compensation insurance, non current receivable for excess premiums paid	1,156,000
Health insurance, maximum self-insured annual amount per individual	175,000
Liability for reported claims and estimates for incurred but unreported claims	$ 664,000
Scheduled for trial or arbitration over next 12 months
Malpractice Insurance [Line Items]
Number of professional liability lawsuits | lawsuit	10
Professional malpractice liability insurance
Malpractice Insurance [Line Items]
Liability for reported and estimated future claims	$ 20,307,000
Prefunded deductible policy
Malpractice Insurance [Line Items]
Insurance policy coverage limits per claim	500,000
Other Insurance
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
Aggregate policy limit	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 | policy	7
Unfavorable regulatory action | Potential violations of false claims act
Malpractice Insurance [Line Items]
Number of facilities | facility	6			2
Number of new claims filed | civil_investigative_demand			3

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Jun. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 486	$ 702
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	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	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	33.00%
Stock Options and Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
SOSARs granted in period (shares)	0		0
Stock Options and Stock Appreciation Rights (SARs) | Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vest of restricted stock on each year	33.00%
Stock Options and Stock Appreciation Rights (SARs) | Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vest of restricted stock on each year	33.00%
Stock Options and Stock Appreciation Rights (SARs) | Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vest of restricted stock on each year	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 (shares)	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 (shares)	350,000			150,000
Percentage of quoted market price offering rate	85.00%
Restriction period	2 years
2010 Long Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance (shares)	380,000

Share-Based Compensation (Share

Share-Based Compensation (Share-based Compensation Arrangement by Share-based Payment Award, Awards, Vested and Expected to Vest, Outstanding and Exercisable) (Details) - Stock Options and Stock Appreciation Rights (SARs) shares in Thousands	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, December 31, 2015 (shares) | shares	232
Granted (shares) | shares	0
Exercised (shares) | shares	(1)
Expired or cancelled (shares) | shares	0
Outstanding, June 30, 2016 (shares) | shares	231
Exercisable (shares) | shares	222
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding, December 31, 2015 (dollars per share) | $ / shares	$ 6.97
Granted (dollars per share) | $ / shares	0
Exercised (dollars per share) | $ / shares	3.91
Expired or cancelled (dollars per share) | $ / shares	0
Outstanding, March 31, 2016 (dollars per share) | $ / shares	6.98
Exercisable, weighted average exercise price (dollars per share) | $ / shares	$ 6.83

Stock-Based Compensation (Restr

Stock-Based Compensation (Restricted Stock and Restricted Stock Units Activity) (Details) shares in Thousands	6 Months Ended
	Jun. 30, 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 (share) | shares	141
Granted (shares) | shares	83
Dividend equivalents (shares) | shares	2
Vested (shares) | shares	(68)
Cancelled (shares) | shares	(4)
Outstanding, March 31, 2016 (shares) | shares	154
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 (dollars per share) | $ / shares	$ 9.07
Granted (dollars per share) | $ / shares	8.87
Dividend equivalents (dollars per share) | $ / shares	8.40
Vested (dollars per share) | $ / shares	7.85
Cancelled (dollars per share) | $ / shares	9.66
Outstanding, March 31, 2016 (dollars per share) | $ / 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 (share) | shares	62
Granted (shares) | shares	17
Dividend equivalents (shares) | shares	1
Vested (shares) | shares	(24)
Cancelled (shares) | shares	0
Outstanding, March 31, 2016 (shares) | 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 (dollars per share) | $ / shares	$ 9.58
Granted (dollars per share) | $ / shares	8.87
Dividend equivalents (dollars per share) | $ / shares	8.35
Vested (dollars per share) | $ / shares	5.69
Cancelled (dollars per share) | $ / shares	0
Outstanding, March 31, 2016 (dollars per share) | $ / shares	$ 11.04

Stock-Based Compensation (Sched

Stock-Based Compensation (Schedule of Awards Outstanding and Exercisable) (Details) - Stock Options and Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average exercise prices (dollars per share)	$ 6.98	$ 6.97
Grants outstanding (shares)	232
Grants exercisable (shares)	222
$10.21 to $11.59
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of exercise prices, minimum (dollars per share)	$ 10.21
Range of exercise prices, maximum (dollars per share)	11.59
Weighted average exercise prices (dollars per share)	$ 10.88
Grants outstanding (shares)	62
Intrinsic value - grants outstanding	$ 0
Grants exercisable (shares)	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, minimum (dollars per share)	$ 2.37
Range of exercise prices, maximum (dollars per share)	6.21
Weighted average exercise prices (dollars per share)	$ 5.55
Grants outstanding (shares)	170
Intrinsic value - grants outstanding	$ 440
Grants exercisable (shares)	170
Intrinsic value - grants exercisable	$ 441

Earnings (Loss) Per Common Sh31

Earnings (Loss) Per Common Share (Basic and Diluted Net Income (Loss) Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net income (loss)
Income (loss) from continuing operations	$ (2,150)	$ 807	$ (2,224)	$ 812
Loss from discontinued operations, net of income taxes	0	(299)	(37)	(562)
Net income (loss)	$ (2,150)	$ 508	$ (2,261)	$ 250
Per common share – basic
Income (loss) from continuing operations (dollars per share)	$ (0.35)	$ 0.13	$ (0.36)	$ 0.13
Loss from discontinued operations (dollars per share)	0	(0.05)	(0.01)	(0.09)
Net income (loss) per common share – basic (dollars per share)	(0.35)	0.08	(0.37)	0.04
Per common share – diluted
Not income (loss) from continuing operations (dollars per share)	(0.35)	0.13	(0.36)	0.13
Loss from discontinued operations (dollars per share)	0	(0.05)	(0.01)	(0.09)
Net income (loss) per common share – diluted (dollars per share)	$ (0.35)	$ 0.08	$ (0.37)	$ 0.04
Weighted Average Common Shares Outstanding:
Basic (shares)	6,211	6,098	6,185	6,072
Diluted (shares)	6,211	6,327	6,185	6,302

Earnings (Loss) Per Common Sh32

Earnings (Loss) Per Common Share (Narrative) (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Antidilutive shares excluded from computation of diluted earnings per share (shares)	62	0

Equity Method Investment (Narra

Equity Method Investment (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]
Percentage of owned joint venture Investment in nonconsolidated affiliate	50.00%		50.00%
Investment in unconsolidated affiliate	$ 859		$ 859		$ 798
Equity in net income of unconsolidated affiliate	$ 28	$ 75	$ 61	$ 183

Business Development and Othe34

Business Development and Other Significant Transactions (Narrative) (Details)	May 31, 2016USD ($)	Feb. 26, 2016USD ($)bed	Nov. 01, 2015USD ($)bed	Feb. 01, 2015USD ($)bed	Jun. 30, 2016USD ($)bed	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)bed	Jun. 30, 2015USD ($)
Business Acquisition [Line Items]
Number of licensed nursing beds | bed					5,879		5,879
Lease termination costs, net of cash payments					$ 2,008,000	$ 0	$ 2,008,000	$ 0
Avon Ohio, LLC
Business Acquisition [Line Items]
Lease termination fee, future annual payment amount due under amendment	$ 300,000
Skilled Nursing Center in Glasgow, Kentucky | Barren County Health Care Center Inc
Business Acquisition [Line Items]
Number of licensed nursing beds | bed				94
Consideration transferred				$ 7,000,000
Skilled Nursing Center in Fulton, Kentucky | Haws Fulton Investors, LLC
Business Acquisition [Line Items]
Number of licensed nursing beds | bed			60
Consideration transferred			$ 3,900,000
Hutchinson, Kansas | Diversicare of Hutchinson
Business Acquisition [Line Items]
Purchase Price		$ 4,250,000
Number of licensed nursing beds | bed		85
Consideration transferred		$ 4,293,000
Clinton, Kentucky | Clinton Place
Business Acquisition [Line Items]
Purchase Price		$ 3,300,000
Number of licensed nursing beds | bed		88
Consideration transferred		$ 3,334,000

Business Development and Othe35

Business Development and Other Significant Transactions (Schedule of Assets Acquired) (Details) - USD ($)	Feb. 26, 2016	Nov. 01, 2015	Feb. 01, 2015
Diversicare of Hutchinson | Hutchinson, Kansas
Business Acquisition [Line Items]
Purchase Price	$ 4,250,000
Acquisition Costs	43,000
Total	4,293,000
Buildings	3,443,000
Land	365,000
Furniture, Fixtures, and Equipment	485,000
Total purchase price	4,293,000
Clinton Place | Clinton, Kentucky
Business Acquisition [Line Items]
Purchase Price	3,300,000
Acquisition Costs	34,000
Total	3,334,000
Buildings	2,898,000
Land	267,000
Furniture, Fixtures, and Equipment	169,000
Total purchase price	$ 3,334,000
Skilled Nursing Center in Glasgow, Kentucky | Barren County Health Care Center Inc
Business Acquisition [Line Items]
Total			$ 7,000,000
Buildings			5,778,000
Land			672,000
Furniture, Fixtures, and Equipment			550,000
Total purchase price			$ 7,000,000
Skilled Nursing Center in Fulton, Kentucky | Haws Fulton Investors, LLC
Business Acquisition [Line Items]
Total		$ 3,900,000
Buildings		3,338,000
Land		300,000
Furniture, Fixtures, and Equipment		262,000
Total purchase price		$ 3,900,000

Subsequent Event (Details)

Subsequent Event (Details) $ in Millions	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)
Subsequent Event [Line Items]
Debt instrument, covenant terms, minimum fixed charge coverage ratio				1
Debt instrument, covenant terms, minimum EBITDA				$ 9.5
Scenario, Forecast | Subsequent Event
Subsequent Event [Line Items]
Debt instrument, covenant terms, minimum fixed charge coverage ratio	1.05	1	1
Debt instrument, covenant terms, minimum EBITDA	$ 10	$ 9.5	$ 8.5