NATIONAL HEALTHCARE CORP Segments Disclosure

Note 5 – Business Segments

 

The Company has two reportable operating segments: (1) inpatient services, which includes the operation of skilled nursing facilities, assisted and independent living facilities, and behavioral health hospitals; and (2) homecare and hospice services. These reportable operating segments are consistent with information used by the Company’s Chief Executive Officer, as chief operating decision maker (“CODM”), to assess performance and allocate resources. The Company also reports an “all other” category that includes revenues from rental income, management and accounting services fees, insurance services, and costs of the corporate office. 

 

The Company’s CODM evaluates performance including pretax earnings and allocates capital resources to each segment based on an operating model that is designed to improve the quality of patient care and profitability of the Company while enhancing long-term shareholder value. The CODM does not review assets by segment in his resource allocation and therefore, assets by segment are not disclosed below. 

 

The following tables set forth the Company’s consolidated statements of operations by business segment (in thousands):

 

 

		Year Ended December 31, 2025
		Inpatient Services				Homecare and Hospice				All Other				Total
Revenues:
Net patient revenues		$	1,315,545			$	154,086			$	–			$	1,469,631
Other revenues			1,467				–				46,683				48,150
Net operating revenues			1,317,012				154,086				46,683				1,517,781
Costs and Expenses:
Salaries, wages and benefits			775,477				93,535				52,068				921,080
Other operating			336,746				27,537				12,919				377,202
Facility rent			35,972				2,373				7,882				46,227
Depreciation and amortization			41,066				581				3,273				44,920
Total costs and expenses			1,189,261				124,026				76,142				1,389,429
Income (loss) from operations			127,751				30,060				(29,459	)			128,352
Non-operating income			–				–				18,107				18,107
Interest expense			(6,371	)			–				–				(6,371	)
Unrealized gains on marketable equity securities			–				–				22,344				22,344
Income before income taxes		$	121,380			$	30,060			$	10,992			$	162,432

 

		Year Ended December 31, 2024
		Inpatient Services				Homecare and Hospice				All Other				Total
Revenues:
Net patient revenues		$	1,111,300			$	140,459			$	–			$	1,251,759
Other revenues			1,315				–				44,863				46,178
Government stimulus income			–				–				9,445				9,445
Net operating revenues and stimulus income			1,112,615				140,459				54,308				1,307,382
Costs and Expenses:
Salaries, wages and benefits			668,029				85,712				57,189				810,930
Other operating			280,867				25,927				14,596				321,390
Facility rent			33,787				2,295				7,100				43,182
Depreciation and amortization			37,988				737				3,260				41,985
Total costs and expenses			1,020,671				114,671				82,145				1,217,487
Income (loss) from operations			91,944				25,788				(27,837	)			89,895
Non-operating income			–				–				19,690				19,690
Interest expense			(4,135	)							–				(4,135	)
Unrealized gains on marketable equity securities			–				–				30,958				30,958
Income before income taxes		$	87,809			$	25,788			$	22,811			$	136,408

 

		Year Ended December 31, 2023
		Inpatient Services				Homecare and Hospice				All Other				Total
Revenues:
Net patient revenues		$	956,077			$	131,537			$	–			$	1,087,614
Other revenues			1,141				–				52,789				53,930
Net operating revenues			957,218				131,537				52,789				1,141,544
Costs and Expenses:
Salaries, wages and benefits			589,279				80,610				42,455				712,344
Other operating			254,559				23,529				10,095				288,183
Facility rent			32,542				2,172				6,811				41,525
Depreciation and amortization			38,172				786				3,076				42,034
Total costs and expenses			914,552				107,097				62,437				1,084,086
Income (loss) from operations			42,666				24,440				(9,648	)		57,458
Non-operating income			–				–				16,660				16,660
Interest expense			(324	)			–				–				(324	)
Unrealized gains on marketable equity securities			–				–				14,944				14,944
Income before income taxes		$	42,342			$	24,440			$	21,956			$	88,738