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Leases | 12 Months Ended
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Dec. 31, 2025
Leases [Abstract] |
Leases | Leases The Company has operating and finance leases for its facilities. The Company leases its corporate office space from related parties. The Company’s critical illness recovery hospitals and rehabilitation hospitals generally have lease terms of 10 to 20 years with two, five year renewal options. These renewal options vary for hospitals which operate as a hospital within a hospital, or “HIH.” The Company’s outpatient rehabilitation clinics generally have lease terms of five to 10 years with two, three to five year renewal options. The Company’s total lease cost from continuing operations is as follows:
| For the Year Ended December 31,
| 2023 |  | 2024 |  | 2025
| Unrelated Parties |  | Related Parties |  | Total |  | Unrelated Parties |  | Related Parties |  | Total |  | Unrelated Parties |  | Related Parties |  | Total
| (in thousands)
Operating lease cost | $ | 212,360 |  |  | $ | 7,335 |  |  | $ | 219,695 |  |  | $ | 226,866 |  |  | $ | 7,335 |  |  | $ | 234,201 |  |  | $ | 237,045 |  |  | $ | 7,335 |  |  | $ | 244,380 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets | 572 |  |  | — |  |  | 572 |  |  | 572 |  |  | — |  |  | 572 |  |  | 686 |  |  | — |  |  | 686 |
Interest on lease liabilities | 1,013 |  |  | — |  |  | 1,013 |  |  | 984 |  |  | — |  |  | 984 |  |  | 1,268 |  |  | — |  |  | 1,268 |
Variable lease cost | 45,086 |  |  | 84 |  |  | 45,170 |  |  | 47,678 |  |  | 16 |  |  | 47,694 |  |  | 51,123 |  |  | — |  |  | 51,123 |
Sublease income | (6,725) |  |  | — |  |  | (6,725) |  |  | (6,875) |  |  | — |  |  | (6,875) |  |  | (7,369) |  |  | — |  |  | (7,369) |
Total lease cost from continuing operations | $ | 252,306 |  |  | $ | 7,419 |  |  | $ | 259,725 |  |  | $ | 269,225 |  |  | $ | 7,351 |  |  | $ | 276,576 |  |  | $ | 282,753 |  |  | $ | 7,335 |  |  | $ | 290,088 |
Supplemental cash flow information related to leases is as follows:
| For the Year Ended December 31,
| 2023 |  | 2024 |  | 2025
| (in thousands)
Cash paid for amounts included in the measurement of lease liabilities (1): |  |  |  |  |
Operating cash flows for operating leases | $ | 317,256 |  |  | $ | 321,271 |  |  | $ | 244,623 |
Operating cash flows for finance leases | 1,239 |  |  | 1,104 |  |  | 1,081 |
Financing cash flows for finance leases | 1,617 |  |  | 1,347 |  |  | 652 |
Right-of-use assets obtained in exchange for lease liabilities: |  |  |  |  |
Operating leases | 171,569 |  |  | 299,111 |  |  | 238,495 |
Finance leases | — |  |  | — |  |  | 56,676 |
_______________________________________________________________________________ (1) Cash flows include cash paid for operating and finance leases of discontinued operations for the years ended December 31, 2023 and 2024. Supplemental balance sheet information related to leases is as follows:
| December 31,
| 2024 |  | 2025
| Unrelated Parties |  | Related Parties |  | Total |  | Unrelated Parties |  | Related Parties |  | Total
Operating Leases | (in thousands)
Operating lease right-of-use assets | $ | 885,457 |  |  | $ | 22,638 |  |  | $ | 908,095 |  |  | $ | 941,332 |  |  | $ | 16,572 |  |  | $ | 957,904 |
Current operating lease liabilities | $ | 173,189 |  |  | $ | 6,412 |  |  | $ | 179,601 |  |  | $ | 181,276 |  |  | $ | 7,129 |  |  | $ | 188,405 |
Non-current operating lease liabilities | 768,546 |  |  | 18,578 |  |  | 787,124 |  |  | 823,913 |  |  | 11,449 |  |  | 835,362 |
Total operating lease liabilities | $ | 941,735 |  |  | $ | 24,990 |  |  | $ | 966,725 |  |  | $ | 1,005,189 |  |  | $ | 18,578 |  |  | $ | 1,023,767 |
| December 31,
| 2024 |  | 2025
| Unrelated Parties |  | Related Parties |  | Total |  | Unrelated Parties |  | Related Parties |  | Total
Finance Leases | (in thousands)
Property and equipment, net | $ | 3,350 |  |  | $ | — |  |  | $ | 3,350 |  |  | $ | 59,340 |  |  | $ | — |  |  | $ | 59,340 |
Current portion of long-term debt and notes payable | $ | 798 |  |  | $ | — |  |  | $ | 798 |  |  | $ | 1,488 |  |  | $ | — |  |  | $ | 1,488 |
Long-term debt, net of current portion | 10,014 |  |  | — |  |  | 10,014 |  |  | 65,348 |  |  | — |  |  | 65,348 |
Total finance lease liabilities | $ | 10,812 |  |  | $ | — |  |  | $ | 10,812 |  |  | $ | 66,836 |  |  | $ | — |  |  | $ | 66,836 |
The weighted average remaining lease terms and discount rates are as follows:
| December 31,
| 2024 |  | 2025
Weighted average remaining lease term (in years): |  |  |
Operating leases | 9.2 |  | 9.9
Finance leases | 32.8 |  | 22.1
Weighted average discount rate: |  |  |
Operating leases | 6.6 | % |  | 6.6 | %
Finance leases | 7.1 | % |  | 7.0 | %
As of December 31, 2025, maturities of lease liabilities are approximately as follows:
| Operating Leases |  | Finance Leases |  |
| (in thousands) |  |
2026 | $ | 244,555 |  |  | $ | 6,075 |  |  |
2027 | 210,418 |  |  | 5,637 |  |  |
2028 | 160,303 |  |  | 5,348 |  |  |
2029 | 127,836 |  |  | 5,442 |  |  |
2030 | 102,364 |  |  | 5,538 |  |  |
Thereafter | 659,753 |  |  | 108,085 |  |  |
Total undiscounted cash flows | 1,505,229 |  |  | 136,125 |  |  |
Less: Imputed interest | 481,462 |  |  | 69,289 |  |  |
Total discounted lease liabilities | $ | 1,023,767 |  |  | $ | 66,836 |  |  |
Leases | Leases The Company has operating and finance leases for its facilities. The Company leases its corporate office space from related parties. The Company’s critical illness recovery hospitals and rehabilitation hospitals generally have lease terms of 10 to 20 years with two, five year renewal options. These renewal options vary for hospitals which operate as a hospital within a hospital, or “HIH.” The Company’s outpatient rehabilitation clinics generally have lease terms of five to 10 years with two, three to five year renewal options. The Company’s total lease cost from continuing operations is as follows:
| For the Year Ended December 31,
| 2023 |  | 2024 |  | 2025
| Unrelated Parties |  | Related Parties |  | Total |  | Unrelated Parties |  | Related Parties |  | Total |  | Unrelated Parties |  | Related Parties |  | Total
| (in thousands)
Operating lease cost | $ | 212,360 |  |  | $ | 7,335 |  |  | $ | 219,695 |  |  | $ | 226,866 |  |  | $ | 7,335 |  |  | $ | 234,201 |  |  | $ | 237,045 |  |  | $ | 7,335 |  |  | $ | 244,380 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets | 572 |  |  | — |  |  | 572 |  |  | 572 |  |  | — |  |  | 572 |  |  | 686 |  |  | — |  |  | 686 |
Interest on lease liabilities | 1,013 |  |  | — |  |  | 1,013 |  |  | 984 |  |  | — |  |  | 984 |  |  | 1,268 |  |  | — |  |  | 1,268 |
Variable lease cost | 45,086 |  |  | 84 |  |  | 45,170 |  |  | 47,678 |  |  | 16 |  |  | 47,694 |  |  | 51,123 |  |  | — |  |  | 51,123 |
Sublease income | (6,725) |  |  | — |  |  | (6,725) |  |  | (6,875) |  |  | — |  |  | (6,875) |  |  | (7,369) |  |  | — |  |  | (7,369) |
Total lease cost from continuing operations | $ | 252,306 |  |  | $ | 7,419 |  |  | $ | 259,725 |  |  | $ | 269,225 |  |  | $ | 7,351 |  |  | $ | 276,576 |  |  | $ | 282,753 |  |  | $ | 7,335 |  |  | $ | 290,088 |
Supplemental cash flow information related to leases is as follows:
| For the Year Ended December 31,
| 2023 |  | 2024 |  | 2025
| (in thousands)
Cash paid for amounts included in the measurement of lease liabilities (1): |  |  |  |  |
Operating cash flows for operating leases | $ | 317,256 |  |  | $ | 321,271 |  |  | $ | 244,623 |
Operating cash flows for finance leases | 1,239 |  |  | 1,104 |  |  | 1,081 |
Financing cash flows for finance leases | 1,617 |  |  | 1,347 |  |  | 652 |
Right-of-use assets obtained in exchange for lease liabilities: |  |  |  |  |
Operating leases | 171,569 |  |  | 299,111 |  |  | 238,495 |
Finance leases | — |  |  | — |  |  | 56,676 |
_______________________________________________________________________________ (1) Cash flows include cash paid for operating and finance leases of discontinued operations for the years ended December 31, 2023 and 2024. Supplemental balance sheet information related to leases is as follows:
| December 31,
| 2024 |  | 2025
| Unrelated Parties |  | Related Parties |  | Total |  | Unrelated Parties |  | Related Parties |  | Total
Operating Leases | (in thousands)
Operating lease right-of-use assets | $ | 885,457 |  |  | $ | 22,638 |  |  | $ | 908,095 |  |  | $ | 941,332 |  |  | $ | 16,572 |  |  | $ | 957,904 |
Current operating lease liabilities | $ | 173,189 |  |  | $ | 6,412 |  |  | $ | 179,601 |  |  | $ | 181,276 |  |  | $ | 7,129 |  |  | $ | 188,405 |
Non-current operating lease liabilities | 768,546 |  |  | 18,578 |  |  | 787,124 |  |  | 823,913 |  |  | 11,449 |  |  | 835,362 |
Total operating lease liabilities | $ | 941,735 |  |  | $ | 24,990 |  |  | $ | 966,725 |  |  | $ | 1,005,189 |  |  | $ | 18,578 |  |  | $ | 1,023,767 |
| December 31,
| 2024 |  | 2025
| Unrelated Parties |  | Related Parties |  | Total |  | Unrelated Parties |  | Related Parties |  | Total
Finance Leases | (in thousands)
Property and equipment, net | $ | 3,350 |  |  | $ | — |  |  | $ | 3,350 |  |  | $ | 59,340 |  |  | $ | — |  |  | $ | 59,340 |
Current portion of long-term debt and notes payable | $ | 798 |  |  | $ | — |  |  | $ | 798 |  |  | $ | 1,488 |  |  | $ | — |  |  | $ | 1,488 |
Long-term debt, net of current portion | 10,014 |  |  | — |  |  | 10,014 |  |  | 65,348 |  |  | — |  |  | 65,348 |
Total finance lease liabilities | $ | 10,812 |  |  | $ | — |  |  | $ | 10,812 |  |  | $ | 66,836 |  |  | $ | — |  |  | $ | 66,836 |
The weighted average remaining lease terms and discount rates are as follows:
| December 31,
| 2024 |  | 2025
Weighted average remaining lease term (in years): |  |  |
Operating leases | 9.2 |  | 9.9
Finance leases | 32.8 |  | 22.1
Weighted average discount rate: |  |  |
Operating leases | 6.6 | % |  | 6.6 | %
Finance leases | 7.1 | % |  | 7.0 | %
As of December 31, 2025, maturities of lease liabilities are approximately as follows:
| Operating Leases |  | Finance Leases |  |
| (in thousands) |  |
2026 | $ | 244,555 |  |  | $ | 6,075 |  |  |
2027 | 210,418 |  |  | 5,637 |  |  |
2028 | 160,303 |  |  | 5,348 |  |  |
2029 | 127,836 |  |  | 5,442 |  |  |
2030 | 102,364 |  |  | 5,538 |  |  |
Thereafter | 659,753 |  |  | 108,085 |  |  |
Total undiscounted cash flows | 1,505,229 |  |  | 136,125 |  |  |
Less: Imputed interest | 481,462 |  |  | 69,289 |  |  |
Total discounted lease liabilities | $ | 1,023,767 |  |  | $ | 66,836 |  |  |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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