v3.24.1.u1
Segment Information
3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s reportable segments consist of the critical illness recovery hospital segment, rehabilitation hospital segment, outpatient rehabilitation segment, and Concentra segment. Other activities include the Company’s corporate shared services, certain investments, and employee leasing services with non-consolidating subsidiaries.
The Company evaluates the performance of its segments based on Adjusted EBITDA. Adjusted EBITDA is defined as earnings excluding interest, income taxes, depreciation and amortization, gain (loss) on early retirement of debt, stock compensation expense, transaction costs associated with the Concentra separation, gain (loss) on sale of businesses, and equity in earnings (losses) of unconsolidated subsidiaries. The Company has provided additional information regarding its reportable segments, such as total assets, which contributes to the understanding of the Company and provides useful information to the users of the consolidated financial statements.
The following tables summarize selected financial data for the Company’s reportable segments.
 Three Months Ended March 31,
 20232024
 (in thousands)
Revenue:  
Critical illness recovery hospital$593,926 $655,880 
Rehabilitation hospital231,462 265,700 
Outpatient rehabilitation295,903 303,158 
Concentra456,298 467,598 
Other87,391 96,473 
Total Company$1,664,980 $1,788,809 
Adjusted EBITDA:  
Critical illness recovery hospital$76,773 $115,940 
Rehabilitation hospital47,216 61,400 
Outpatient rehabilitation30,199 24,928 
Concentra93,748 96,142 
Other(33,873)(36,493)
Total Company$214,063 $261,917 
Total assets:  
Critical illness recovery hospital$2,507,265 $2,608,979 
Rehabilitation hospital1,203,069 1,233,828 
Outpatient rehabilitation1,397,823 1,423,740 
Concentra2,300,632 2,362,848 
Other290,947 228,868 
Total Company$7,699,736 $7,858,263 
Purchases of property, equipment, and other assets:  
Critical illness recovery hospital$23,658 $15,941 
Rehabilitation hospital8,582 7,101 
Outpatient rehabilitation9,932 9,500 
Concentra14,400 17,231 
Other2,313 2,744 
Total Company$58,885 $52,517 
A reconciliation of Adjusted EBITDA to income before income taxes is as follows:
 Three Months Ended March 31, 2023
 Critical Illness Recovery HospitalRehabilitation HospitalOutpatient
Rehabilitation
ConcentraOtherTotal
 (in thousands)
Adjusted EBITDA$76,773 $47,216 $30,199 $93,748 $(33,873) 
Depreciation and amortization(16,637)(6,888)(8,457)(18,310)(2,133) 
Stock compensation expense— — — (178)(10,003) 
Income (loss) from operations$60,136 $40,328 $21,742 $75,260 $(46,009)$151,457 
Equity in earnings of unconsolidated subsidiaries    8,556 
Interest expense    (48,571)
Income before income taxes    $111,442 
 Three Months Ended March 31, 2024
 Critical Illness Recovery HospitalRehabilitation HospitalOutpatient
Rehabilitation
ConcentraOtherTotal
 (in thousands)
Adjusted EBITDA$115,940 $61,400 $24,928 $96,142 $(36,493) 
Depreciation and amortization(17,157)(7,135)(9,181)(18,485)(2,111) 
Stock compensation expense— — — (166)(11,444) 
Concentra separation transaction costs(1)
— — — (1,993)(278)
Income (loss) from operations$98,783 $54,265 $15,747 $75,498 $(50,326)$193,967 
Equity in earnings of unconsolidated subsidiaries    10,421 
Interest expense    (50,763)
Income before income taxes    $153,625 
_______________________________________________________________________________
(1)    Concentra separation transaction costs represent incremental consulting, legal, and audit-related fees incurred in connection with the Company’s planned separation of the Concentra segment into a new, publicly traded company and are included within general and administrative expenses on the Condensed Consolidated Statements of Operations.