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Almost Family, Inc. and Subsidiaries

Supplemental Segment Information 

Exhibit 99.2

 

In the first quarter in 2017, the Company redefined its reporting segments to include a) Home Health (“HH”) formerly Visiting Nurse, b) Other Home-Based Services (“OHBS”) which includes all other home care services outside of Home Health services and c) the Healthcare Innovations (“HCI”) segment.  The OHBS segment consists of the historical Personal Care (“PC” or “Personal Care”) operations plus hospice services.  Prior year segment information has been reclassified to conform to the new segment definitions.  In management’s opinion, this approach provides investors clarity for the largest segment, Home Health, and best aligns with the Company’s internal decision-making processes as viewed by the chief operating decision maker.  See Note 1 to the table below.

Reportable segments have been identified based upon how management has organized the business by services provided to customers and how the chief operating decision maker manages the business and allocates resources, consistent with the criteria in ASC 280, Segment Reporting

Consistent with information given to the chief operating decision maker, the Company does not allocate certain expenses to the reportable segments.  The Company evaluates the performance of its business segments based on operating income.  Intercompany and intersegment transactions have been eliminated.

The HH segment provides skilled medical services in patients’ homes largely to enable recipients to reduce or avoid periods of hospitalization and/or nursing home care.  HH segment revenues were generated primarily from the Medicare program while the balance is generated from Medicaid and private insurance programs. 

The OHBS segment includes traditional PC services (generally provided by paraprofessional staff such as home health aides) which are generally of a custodial rather than skilled nature.  PC revenues are generated on an hourly basis and are primarily from Medicaid.  Hospice services are largely provided in patients’ homes and generally require specialized hospice nursing skills.  Hospice revenues are generated on a per diem basis and are primarily from Medicare.

The Company’s HCI business segment is used to report on the Company’s developmental activities outside its HH and OHBS businesses.  These activities are intended ultimately, whether directly or indirectly, to benefit the Company’s patients and payors through the enhanced provision of HH and OHBS.  The activities all share a common goal of improving patient experiences and quality outcomes, while lowering costs.  They include, but are not limited to, items such as: technology, information, population health management, risk-sharing, care-coordination and transitions, clinical advancements, enhanced patient engagement and informed clinical decision and technology enabled in-home clinical assessments.

 

 

 

 


 

Almost Family, Inc. and Subsidiaries

Supplemental Segment Information (1)

(In thousands for the years-ended) 

 

 

 

 

 

 

 

 

 

 

 

 

    

2016

    

2015

    

2014

 

Net service revenues

 

 

 

 

 

 

 

 

 

 

Home Health(1)

 

$

434,968

 

$

400,133

 

$

380,175

 

Other Home-Based Services(1)

 

 

162,546

 

 

128,630

 

 

113,110

 

Healthcare Innovations

 

 

26,027

 

 

3,451

 

 

2,544

 

 

 

$

623,541

 

$

532,214

 

$

495,829

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

Home Health(1)

 

$

56,564

 

$

49,608

 

$

42,822

 

Other Home-Based Services(1)

 

 

13,519

 

 

14,434

 

 

12,530

 

Healthcare Innovations

 

 

5,657

 

 

(1,217)

 

 

(13)

 

Unallocated

 

 

(40,808)

 

 

(30,441)

 

 

(30,672)

 

 

 

$

34,932

 

$

32,384

 

$

24,667

 

 

 

 

 

 

 

 

 

 

 

 

Identifiable assets

 

 

 

 

 

 

 

 

 

 

Home Health

 

$

456,841

 

$

310,317

 

 

 

 

Other Home-Based Services

 

 

116,085

 

 

111,524

 

 

 

 

Healthcare Innovations

 

 

60,159

 

 

22,024

 

 

 

 

Unallocated

 

 

25,627

 

 

20,904

 

 

 

 

 

 

$

658,712

 

$

464,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identifiable liabilities

 

 

 

 

 

 

 

 

 

 

Home Health

 

$

31,792

 

$

31,570

 

 

 

 

Other Home-Based Services

 

 

25,241

 

 

24,425

 

 

 

 

Healthcare Innovations

 

 

5,076

 

 

1,525

 

 

 

 

Unallocated

 

 

292,423

 

 

133,349

 

 

 

 

 

 

$

354,532

 

$

190,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling Interest - Redeemable

 

 

 

 

 

 

 

 

 

 

Healthcare Innovations

 

$

2,256

 

$

3,639

 

$

3,639

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

Home Health

 

$

1,099

 

$

1,388

 

$

465

 

Other Home-Based Services

 

 

294

 

 

203

 

 

149

 

Healthcare Innovations

 

 

908

 

 

108

 

 

 —

 

Unallocated

 

 

3,905

 

 

1,418

 

 

617

 

 

 

$

6,206

 

$

3,117

 

$

1,231

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

Home Health

 

$

1,124

 

$

1,210

 

$

1,250

 

Other Home-Based Services

 

 

301

 

 

264

 

 

271

 

Healthcare Innovations

 

 

1,200

 

 

97

 

 

 —

 

Unallocated

 

 

1,820

 

 

2,356

 

 

2,392

 

 

 

$

4,445

 

$

3,927

 

$

3,913

 

 

(1) – The only change made to previously reported financial information was to reclassify one small hospice unit from Home Health to Other-Home Based Services.  Net service revenues of $1,179, $918 and $613 and operating income (loss) of $10, $264 and $77 were reclassified between segments for 2016, 2015 and 2014, respectively.  No other changes were made.