XML 23 R10.htm IDEA: XBRL DOCUMENT v3.25.1
REVENUE AND ACCOUNTS RECEIVABLE
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE AND ACCOUNTS RECEIVABLE REVENUE AND ACCOUNTS RECEIVABLE
The Company's service revenue is derived primarily from providing healthcare services to its patients. Revenue is recognized when services are provided to patients at the amount that reflects the consideration that the Company expects to be entitled from patients and third-party payors, including Medicaid, Medicare and insurers (private and Medicare replacement plans), in exchange for providing patient care.
Disaggregation of Revenue
The Company disaggregates revenue from contracts with its patients by payors. The Company has determined that disaggregating revenue into these categories achieves the disclosure objectives to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Revenue by Payor

The Company’s revenue is derived primarily from providing healthcare services to patients and is recognized on the date services are provided at amounts billable to individual patients, adjusted for estimates for variable consideration. For patients under reimbursement arrangements with third-party payors, including Medicaid, Medicare and private insurers, revenue is recorded based on contractually agreed-upon amounts or rates, adjusted for estimates for variable consideration, on a per patient, daily basis or as services are performed.

Revenue from the Medicare and Medicaid programs accounted for 69.5% and 71.6% of all service revenue for the three months ended March 31, 2025 and 2024, respectively. Settlements with Medicare and Medicaid payors for retroactive adjustments due to audits and reviews are considered variable consideration and are included in the determination of the estimated transaction price. These settlements are estimated based on the terms of the payment agreement with the payor, correspondence from the payor and the Company’s historical settlement activity. Consistent with healthcare industry practices, any changes to these revenue estimates are recorded in the period the change or adjustment becomes known based on the final settlement. The Company recorded adjustments to revenue which were not material to the Company's revenue for the three months ended March 31, 2025 and 2024.
Service revenue for the three months ended March 31, 2025 and 2024 is summarized in the following tables:

 Three Months Ended March 31,
20252024
Revenue% of RevenueRevenue% of Revenue
Medicaid(1)
$453,840 38.9 %$390,163 38.8 %
Medicare287,751 24.7 265,583 26.4 
Medicaid — skilled69,551 5.9 63,309 6.4 
Total Medicaid and Medicare$811,142 69.5 %$719,055 71.6 %
Managed care227,217 19.5 188,104 18.7 
Private and other(2)
128,681 11.0 97,326 9.7 
SERVICE REVENUE$1,167,040 100.0 %$1,004,485 100.0 %
(1) Medicaid payor includes revenue for senior living operations.
(2) Private and other also includes revenue from senior living operations and all revenue generated in other ancillary services.
In addition to the service revenue above, the Company's rental revenue derived from triple-net lease arrangements with third parties was $6,001 and $5,687, respectively, for the three months ended March 31, 2025 and 2024.
Balance Sheet Impact
Included in the Company’s condensed consolidated balance sheets are contract balances, comprised of billed accounts receivable and unbilled receivables, which are the result of the timing of revenue recognition, billings and cash collections, as well as contract liabilities, which primarily represent payments the Company receives in advance of services provided. The Company had no material contract liabilities and contract assets as of March 31, 2025 and December 31, 2024, or activity during the three months ended March 31, 2025 and 2024.

Accounts receivable consist primarily of amounts due from Medicare and Medicaid programs, other government programs, managed care health plans and private payor sources, net of estimates for variable consideration and doubtful accounts. Accounts receivable as of March 31, 2025 and December 31, 2024, is summarized in the following table:
March 31, 2025December 31, 2024
Medicaid$217,845 $228,872 
Managed care151,162 139,711 
Medicare85,571 77,056 
Private and other payors137,870 132,693 
 $592,448 $578,332 
Less: allowance for doubtful accounts(8,400)(8,435)
ACCOUNTS RECEIVABLE, NET$584,048 $569,897