XML 30 R14.htm IDEA: XBRL DOCUMENT v3.25.4
Credit Risk and Payor Concentrations
 12 Months Ended
Dec. 31, 2025
Credit Loss [Abstract]  
Credit Risk and Payor Concentrations Credit Risk and Payor Concentrations
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash balances and accounts receivable. The Company’s excess cash is held with large financial institutions. The Company grants unsecured credit to its patients, most of whom reside in the service area of the Company’s facilities and are insured under third-party payor agreements.
Because of the diversity in the Company’s non-governmental third-party payor base, as well as their geographic dispersion, accounts receivable due from the Medicare program represent the Company’s only significant concentration of credit risk. Approximately 21% of the Company’s accounts receivable is due from Medicare at both December 31, 2024 and 2025.
Revenues from providing services to patients covered under the Medicare program represented approximately 31%, 29%, and 29% of the Company’s total revenue for the years ended December 31, 2023, 2024, and 2025, respectively. As a provider of services under the Medicare program, the Company is subject to extensive regulations. The inability of any of the Company’s critical illness recovery hospitals, rehabilitation hospitals, or outpatient rehabilitation clinics to comply with Medicare regulations can result in the Company receiving significantly less Medicare payments than the Company currently receives for the services it provides to its patients.