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Equity Method Investments
 12 Months Ended
Dec. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments Equity Method Investments
The Company’s equity method investments consist principally of minority ownership interests in rehabilitation businesses. Equity method investments of $320.9 million and $346.4 million are presented as part of Other assets in the Consolidated Balance Sheets as of December 31, 2024 and 2025, respectively. At December 31, 2025, these businesses primarily consist of the following ownership interests:
BIR JV, LLP49.0 %
OHRH, LLC49.0 %
GlobalRehab—Scottsdale, LLC49.0 %
ES Rehabilitation, LLC49.0 %
BHSM Rehabilitation, LLC49.0 %
RSH Property Ventures, LLC50.0 %
The Company provides contracted services, principally employee leasing services, and charges management fees to related parties affiliated through its equity method investments. Revenue generated from contracted services provided and management fees charged to related parties affiliated through the Company’s equity method investments was $402.8 million, $430.3 million, and $455.2 million for the years ended December 31, 2023, 2024, and 2025, respectively.
The Company had receivables from related parties affiliated through its equity method investments of $17.8 million and $2.2 million, which are included as part of Other current assets and Other assets in the Consolidated Balance Sheet, respectively, as of December 31, 2024. The Company had receivables from related parties of $25.6 million and $2.4 million, which are included as part of Other current assets and Other assets in the Consolidated Balance Sheet, respectively, as of December 31, 2025.
The Company had liabilities for the operating cash it holds on behalf of certain rehabilitation businesses in which it has an equity method investment. These liabilities were $59.0 million and $57.9 million as of December 31, 2024 and 2025, respectively, and are included as part of Accrued other in the Consolidated Balance Sheets.
Summarized combined financial information of the rehabilitation businesses in which the Company has a minority ownership interest is as follows:
December 31,
20242025
(in thousands)
Current assets$250,619 $269,229 
Non-current assets522,412 573,771 
Total assets$773,031 $843,000 
Current liabilities$100,721 $110,415 
Non-current liabilities213,345 217,253 
Equity458,965 515,332 
Total liabilities and equity$773,031 $843,000 
For the Year Ended December 31,
202320242025
(in thousands)
Revenues$702,040 $766,197 $826,112 
Cost of services and other operating expenses621,107 664,172 708,301 
Net income81,122 99,386 115,274 
Transactions with Equity Method Investments
On September 26, 2025, a wholly-owned subsidiary of the Company contributed a recently constructed hospital to BHSM Rehabilitation, LLC (“Banner”) in exchange for an equity interest in Banner. The carrying value and fair value of the building was $45.8 million. As part of this transaction, Banner made a special distribution to each of its equity holders based on their respective ownership interest. The Company’s distribution was $23.3 million, which is included in Proceeds from sales and exchanges of assets and sale of business on the Condensed Consolidated Statement of Cash Flows.