v3.26.3
Note 7 - Business Segments
 9 Months Ended
Sep. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 7 – Business Segments

 

The Company has two reportable operating segments: (1) inpatient services, which includes the operation of skilled nursing facilities, assisted and independent living facilities, and behavioral health hospitals; and (2) homecare and hospice services. These reportable operating segments are consistent with information used by the Company’s Chief Executive Officer, as chief operating decision maker (“CODM”), to assess performance and allocate resources. The Company also reports an “all other” category that includes revenues from rental income, management and accounting services fees, insurance services, and costs of the corporate office.

 

The Company’s CODM evaluates performance including pretax earnings and allocates capital resources to each segment based on an operating model that is designed to improve the quality of patient care and profitability of the Company while enhancing long-term shareholder value. The CODM does not review assets by segment in his resource allocation and therefore, assets by segment are not disclosed below.

 

The following table sets forth the Company’s unaudited interim condensed consolidated statements of operations by business segment (in thousands):

 

  

Three Months Ended September 30, 2026

 
  

Inpatient
Services

  

Homecare

and Hospice

  

All Other

  

Total

 

Revenues:

                

Net patient revenues

 $356,143  $41,303  $-  $397,446 

Other revenues

  339   -   10,186   10,525 

Net operating revenues

  356,482   41,303   10,186   407,971 
                 

Costs and expenses:

                

Salaries, wages, and benefits

  212,869   24,819   14,249   251,937 

Other operating

  88,492   7,313   3,656   99,461 

Rent

  415   641   309   1,365 

Depreciation and amortization

  12,898   138   1,540   14,576 

Total costs and expenses

  314,674   32,911   19,754   367,339 
                 

Income/(loss) from operations

  41,808   8,392   (9,568)  40,632 

Non-operating income

  -   -   3,637   3,637 

Interest expense

  (6,991)  -   -   (6,991)

Unrealized losses on marketable equity securities

  -   -   (17,599)  (17,599)
                 

Income/(loss) before income taxes

 $34,817  $8,392  $(23,530) $19,679 

 

  

Three Months Ended September 30, 2025

 
  

Inpatient
Services

  

Homecare

and Hospice

  

All Other

  

Total

 

Revenues:

                

Net patient revenues

 $331,349  $39,640  $-  $370,989 

Other revenues

  393   -   11,279   11,672 

Net operating revenues

  331,742   39,640   11,279   382,661 
                 

Costs and expenses:

                

Salaries, wages, and benefits

  195,745   23,788   13,643   233,176 

Other operating

  86,745   6,664   3,195   96,604 

Rent

  8,823   601   1,921   11,345 

Depreciation and amortization

  10,219   141   798   11,158 

Total costs and expenses

  301,532   31,194   19,557   352,283 
                 

Income/(loss) from operations

  30,210   8,446   (8,278)  30,378 

Non-operating income

  -   -   4,660   4,660 

Interest expense

  (1,456)  -   -   (1,456)

Unrealized gains on marketable equity securities

  -   -   20,827   20,827 
                 

Income before income taxes

 $28,754  $8,446  $17,209  $54,409 

 

  

Nine Months Ended September 30, 2026

 
  

Inpatient
Services

  

Homecare

and Hospice

  

All Other

  

Total

 

Revenues:

                

Net patient revenues

 $1,023,778  $121,832  $-  $1,145,610 

Other revenues

  1,086   -   51,121   52,207 

Net operating revenues

  1,024,864   121,832   51,121   1,197,817 
                 

Costs and expenses:

                

Salaries, wages, and benefits

  612,759   74,303   41,851   728,913 

Other operating

  252,473   21,099   11,601   285,173 

Rent

  18,436   1,892   4,220   24,548 

Depreciation and amortization

  33,575   399   3,389   37,363 

Total costs and expenses

  917,243   97,693   61,061   1,075,997 
                 

Income/(loss) from operations

  107,621   24,139   (9,940)  121,820 

Non-operating income

  -   -   11,566   11,566 

Interest expense

  (7,273)  -   -   (7,273)

Unrealized losses on marketable equity securities

  -   -   (7,610)  (7,610)
                 

Income/(loss) before income taxes

 $100,348  $24,139  $(5,984) $118,503 

 

  

Nine Months Ended September 30, 2025

 
  

Inpatient
Services

  

Homecare

and Hospice

  

All Other

  

Total

 

Revenues:

                

Net patient revenues

 $981,838  $114,107  $-  $1,095,945 

Other revenues

  1,197   -   34,126   35,323 

Net operating revenues

  983,035   114,107   34,126   1,131,268 
                 

Costs and expenses:

                

Salaries, wages, and benefits

  578,824   69,375   39,641   687,840 

Other operating

  252,064   20,969   7,971   281,004 

Rent

  26,486   1,790   5,762   34,038 

Depreciation and amortization

  30,380   402   2,369   33,151 

Total costs and expenses

  887,754   92,536   55,743   1,036,033 
                 

Income/(loss) from operations

  95,281   21,571   (21,617)  95,235 

Non-operating income

  -   -   13,871   13,871 

Interest expense

  (5,555)  -   -   (5,555)

Unrealized gains on marketable equity securities

  -   -   26,748   26,748 
                 

Income before income taxes

 $89,726  $21,571  $19,002  $130,299