HEALTHSOUTH CORP, 10-Q filed on 7/29/2016
Quarterly Report
Document and Entity Information (USD $)
In Billions, except Share data, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Jul. 22, 2016
Jun. 30, 2015
Document and Entity Information [Abstract]
 
 
 
Entity Registrant Name
HEALTHSOUTH CORP 
 
 
Entity Central Index Key
0000785161 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Document Type
10-Q 
 
 
Document Period End Date
Jun. 30, 2016 
 
 
Document Fiscal Year Focus
2015 
 
 
Document Fiscal Period Focus
Q2 
 
 
Amendment Flag
false 
 
 
Entity Common Stock, Shares Outstanding
 
89,770,417 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Public Float
 
 
$ 4.0 
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Income Statement [Abstract]
 
 
 
 
Net operating revenues
$ 920.7 
$ 764.4 
$ 1,830.5 
$ 1,505.0 
Less: Provision for doubtful accounts
(15.4)
(10.9)
(31.9)
(22.5)
Net operating revenues less provision for doubtful accounts
905.3 
753.5 
1,798.6 
1,482.5 
Operating expenses:
 
 
 
 
Salaries and benefits
486.1 
401.8 
972.2 
786.9 
Other operating expenses
121.5 
104.2 
240.7 
207.4 
Occupancy costs
17.9 
12.5 
35.9 
24.6 
Supplies
34.4 
31.7 
69.4 
63.1 
General and administrative expenses
34.4 
32.1 
66.3 
66.7 
Depreciation and amortization
42.9 
32.7 
85.3 
64.6 
Government, class action, and related settlements
0 
0 
0 
8.0 
Professional fees - accounting, tax, and legal
1.7 
0.1 
1.9 
2.3 
Total operating expenses
738.9 
615.1 
1,471.7 
1,223.6 
Loss on early extinguishment of debt
2.0 
18.8 
4.8 
20.0 
Interest expense and amortization of debt discounts and fees
43.4 
30.9 
88.0 
62.7 
Other income
(0.7)
(3.0)
(1.3)
(3.5)
Equity in net income of nonconsolidated affiliates
(2.4)
(2.3)
(4.8)
(3.9)
Income from continuing operations before income tax expense
123.7 
94.0 
240.2 
183.6 
Provision for income tax expense
42.4 
32.2 
82.1 
62.5 
Income from continuing operations
81.3 
61.8 
158.1 
121.1 
Loss from discontinued operations, net of tax
(0.1)
(1.6)
(0.2)
(1.9)
Net income
81.2 
60.2 
157.9 
119.2 
Less: Net income attributable to noncontrolling interests
(18.6)
(17.3)
(37.3)
(33.8)
Net income attributable to HealthSouth
62.6 
42.9 
120.6 
85.4 
Less: Convertible perpetual preferred stock dividends
0 
0 
0 
(1.6)
Net income attributable to HealthSouth common shareholders
62.6 
42.9 
120.6 
83.8 
Weighted average common shares outstanding:
 
 
 
 
Basic
89.3 
89.8 
89.4 
88.4 
Diluted
99.4 
101.5 
99.4 
101.3 
Basic earnings per share attributable to HealthSouth common shareholders:
 
 
 
 
Continuing operations
$ 0.70 
$ 0.49 
$ 1.34 
$ 0.96 
Discontinued operations
$ 0.00 
$ (0.02)
$ 0.00 
$ (0.02)
Net Income
$ 0.70 
$ 0.47 
$ 1.34 
$ 0.94 
Diluted earnings per share attributable to HealthSouth common shareholders:
 
 
 
 
Continuing operations
$ 0.65 
$ 0.47 
$ 1.26 
$ 0.91 
Discontinued operations
$ 0.00 
$ (0.02)
$ 0.00 
$ (0.02)
Net income
$ 0.65 
$ 0.45 
$ 1.26 
$ 0.89 
Cash dividends per common share
$ 0.23 
$ 0.21 
$ 0.46 
$ 0.42 
Amounts attributable to HealthSouth common shareholders:
 
 
 
 
Income from continuing operations
62.7 
44.5 
120.8 
87.3 
Loss from discontinued operations, net of tax
(0.1)
(1.6)
(0.2)
(1.9)
Net income attributable to HealthSouth
$ 62.6 
$ 42.9 
$ 120.6 
$ 85.4 
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
COMPREHENSIVE INCOME
 
 
 
 
Net income
$ 81.2 
$ 60.2 
$ 157.9 
$ 119.2 
Net change in unrealized gain on available-for-sale securities:
 
 
 
 
Unrealized net holding gain arising during the period
0.4 
0.8 
0.6 
0.9 
Reclassifications to net income
0 
(0.6)
0 
(0.6)
Other comprehensive income before income taxes
0.4 
0.2 
0.6 
0.3 
Provision for income tax expense related to other comprehensive income items
(0.2)
(0.1)
(0.3)
(0.1)
Other comprehensive income, net of tax
0.2 
0.1 
0.3 
0.2 
Comprehensive income
81.4 
60.3 
158.2 
119.4 
Comprehensive income attributable to noncontrolling interests
(18.6)
(17.3)
(37.3)
(33.8)
Comprehensive income attributable to HealthSouth
$ 62.8 
$ 43.0 
$ 120.9 
$ 85.6 
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
Dec. 31, 2014
Current assets:
 
 
 
 
Cash and cash equivalents
$ 70.3 
$ 61.6 
$ 45.5 
$ 66.7 
Accounts receivable, net of allowance for doubtful accounts of $48.9 in 2016; $39.3 in 2015
420.6 
410.5 
 
 
Other current assets
168.6 
126.6 
 
 
Total current assets
659.5 
598.7 
 
 
Property and equipment, net
1,336.9 
1,310.1 
 
 
Goodwill
1,899.7 
1,890.1 
 
 
Intangible assets, net
414.2 
419.4 
 
 
Deferred income tax assets
115.5 
190.8 
 
 
Other long-term assets
206.8 
197.0 
 
 
Total assets
4,632.6 1
4,606.1 
 
 
Current liabilities:
 
 
 
 
Current portion of long-term debt
36.5 
36.8 
 
 
Accounts payable
67.1 
61.6 
 
 
Accrued expenses and other current liabilities
355.5 
328.0 
 
 
Total current liabilities
459.1 
426.4 
 
 
Long-term debt, net of current portion
3,050.0 
3,134.7 
 
 
Other long-term liabilities
154.1 
144.6 
 
 
Total Liabilities
3,663.2 
3,705.7 
 
 
Commitments and contingencies
   
   
 
 
Redeemable noncontrolling interests
120.0 
121.1 
 
 
Shareholders' equity:
 
 
 
 
HealthSouth shareholders’ equity
672.7 
611.4 
 
 
Noncontrolling interests
176.7 
167.9 
 
 
Total shareholders' equity
849.4 
779.3 
764.7 
619.5 
Total liabilities and shareholders' equity
$ 4,632.6 1
$ 4,606.1 
 
 
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Allowance for doubtful accounts
$ 48.9 
$ 39.3 
Total assets of variable interest entities
255.3 
 
Total liabilities of variable interest entities
$ 54.6 
 
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (USD $)
In Millions
Total
Common Stock
Capital in Excess of Par Value
Accumulated Deficit
Accumulated Other Comprehensive Loss
Treasury Stock
Noncontrolling Interests
Balance at beginning of period at Dec. 31, 2014
$ 619.5 
$ 1.0 
$ 2,810.5 
$ (1,879.1)
$ (0.5)
$ (458.7)
$ 146.3 
Balance at beginning of period, Shares at Dec. 31, 2014
 
87.8 
 
 
 
 
 
Net income
85.4 
 
 
85.4 
 
 
 
Net income attributable to nonredeemable noncontrolling interest
27.4 
 
 
 
 
 
27.4 
Net income, including portion attributable to nonredeemable noncontrolling interest, total
112.8 
 
 
 
 
 
 
Conversion of preferred stock, shares
 
3.3 
 
 
 
 
 
Conversion of preferred stock
93.2 
 
93.2 
 
 
 
 
Receipt of treasury stock
(16.6)
 
 
 
 
(16.6)
 
Receipt of treasury stock, Shares
 
(0.5)
 
 
 
 
 
Dividends declared on common stock
(38.0)
 
(38.0)
 
 
 
 
Dividends declared on convertible perpetual preferred stock
(1.6)
 
(1.6)
 
 
 
 
Stock-based compensation
14.9 
 
14.9 
 
 
 
 
Stock options exercised
2.0 
 
5.6 
 
 
(3.6)
 
Stock options exercised, Shares
 
0.2 
 
 
 
 
 
Distributions declared
(23.4)
 
 
 
 
 
(23.4)
Capital contributions from consolidated affiliates
8.6 
 
 
 
 
 
8.6 
Fair value adjustments to redeemable noncontrolling interests, net of tax
(6.8)
 
(6.8)
 
 
 
 
Other
0.1 
0.1 
0.6 
(0.2)
0.2 
(0.5)
(0.1)
Other, Shares
 
0.7 
 
 
 
 
 
Balance at end of period at Jun. 30, 2015
764.7 
1.1 
2,878.4 
(1,793.9)
(0.3)
(479.4)
158.8 
Balance at end of period, Shares at Jun. 30, 2015
 
91.5 
 
 
 
 
 
Balance at beginning of period at Dec. 31, 2015
779.3 
1.1 
2,834.9 
(1,696.0)
(1.2)
(527.4)
167.9 
Balance at beginning of period, Shares at Dec. 31, 2015
 
90.1 
 
 
 
 
 
Net income
120.6 
 
 
120.6 
 
 
 
Net income attributable to nonredeemable noncontrolling interest
29.8 
 
 
 
 
 
29.8 
Net income, including portion attributable to nonredeemable noncontrolling interest, total
150.4 
 
 
 
 
 
 
Receipt of treasury stock
(9.9)
 
 
 
 
(9.9)
 
Receipt of treasury stock, Shares
 
(0.4)
 
 
 
 
 
Dividends declared on common stock
(41.7)
 
(41.7)
 
 
 
 
Stock-based compensation
11.5 
 
11.5 
 
 
 
 
Stock options exercised
0.7 
 
5.4 
 
 
(4.7)
 
Stock options exercised, Shares
 
0.2 
 
 
 
 
 
Distributions declared
(29.9)
 
 
 
 
 
(29.9)
Capital contributions from consolidated affiliates
7.6 
 
 
 
 
 
7.6 
Fair value adjustments to redeemable noncontrolling interests, net of tax
2.8 
 
2.8 
 
 
 
 
Repurchases of common stock
(24.1)
 
 
 
 
(24.1)
 
Repurchases of common stock, Shares
 
(0.7)
 
 
 
 
 
Other
2.7 
 
1.7 
 
0.3 
(0.6)
1.3 
Other, Shares
 
0.6 
 
 
 
 
 
Balance at end of period at Jun. 30, 2016
$ 849.4 
$ 1.1 
$ 2,814.6 
$ (1,575.4)
$ (0.9)
$ (566.7)
$ 176.7 
Balance at end of period, Shares at Jun. 30, 2016
 
89.8 
 
 
 
 
 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:
 
 
Net income
$ 157.9 
$ 119.2 
Loss from discontinued operations, net of tax
0.2 
1.9 
Adjustments to reconcile net income to net cash provided by operating activities-
 
 
Provision for doubtful accounts
31.9 
22.5 
Depreciation and amortization
85.3 
64.6 
Loss on early extinguishment of debt
4.8 
20.0 
Equity in net income of nonconsolidated affiliates
(4.8)
(3.9)
Distributions from nonconsolidated affiliates
3.0 
3.7 
Stock-based compensation
13.1 
15.6 
Deferred tax expense
73.2 
55.6 
Other
6.9 
11.0 
Change in assets and liabilities, net of acquisitions-
 
 
Accounts receivable
(59.5)
(62.1)
Other assets
(4.3)
(6.5)
Accounts payable
1.2 
1.7 
Accrued payroll
9.3 
(23.6)
Other liabilities
(1.9)
(10.7)
Premium received on bond issuance
0 
8.0 
Premium paid on redemption of bonds
(3.9)
(11.8)
Net cash used in operating activities of discontinued operations
(0.5)
(0.3)
Total adjustments
153.8 
83.8 
Net cash provided by operating activities
311.9 
204.9 
Cash flows from investing activities:
 
 
Purchases of property and equipment
(71.4)
(46.3)
Capitalized software costs
(15.2)
(15.2)
Acquisition of business, net of cash acquired
(9.4)
(77.7)
Net change in restricted cash
(11.5)
13.1 
Other
2.0 
(0.6)
Net cash used in investing activities
(105.5)
(126.7)
Cash flows from financing activities:
 
 
Proceeds from bond issuance
0 
700.0 
Principal payments on debt, including pre-payments
(112.8)
(546.1)
Borrowings on revolving credit facility
165.0 
270.0 
Payments on revolving credit facility
(145.0)
(442.0)
Debt amendment and issuance costs
0 
(13.9)
Repurchase of common stock, including fees and expenses
(24.1)
0 
Dividends paid on common stock
(41.9)
(37.1)
Dividends paid on convertible perpetual preferred stock
0 
(3.1)
Distributions paid to noncontrolling interests of consolidated affiliates
(33.6)
(26.2)
Other
(5.3)
(1.0)
Net cash used in financing activities
(197.7)
(99.4)
Increase (decrease) in cash and cash equivalents
8.7 
(21.2)
Cash and cash equivalents at beginning of period
61.6 
66.7 
Cash and cash equivalents at end of period
70.3 
45.5 
Supplemental schedule of noncash financing activity [Abstract]
 
 
Conversion of preferred stock to common stock
$ 0 
$ 93.2 
Basis of Presentation
Basis of Presentation
Basis of Presentation
HealthSouth Corporation, incorporated in Delaware in 1984, including its subsidiaries, is one of the nation’s largest providers of post-acute healthcare services, offering both facility-based and home-based post-acute services in 34 states and Puerto Rico through its network of inpatient rehabilitation hospitals, home health agencies, and hospice agencies.
The accompanying unaudited condensed consolidated financial statements of HealthSouth Corporation and Subsidiaries should be read in conjunction with the consolidated financial statements and accompanying notes filed with the United States Securities and Exchange Commission in HealthSouth’s Annual Report on Form 10-K filed on February 24, 2016 (the “2015 Form 10-K”). The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the SEC applicable to interim financial information. Certain information and note disclosures included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been omitted in these interim statements, as allowed by such SEC rules and regulations. The condensed consolidated balance sheet as of December 31, 2015 has been derived from audited financial statements, but it does not include all disclosures required by GAAP. However, we believe the disclosures are adequate to make the information presented not misleading.
The unaudited results of operations for the interim periods shown in these financial statements are not necessarily indicative of operating results for the entire year. In our opinion, the accompanying condensed consolidated financial statements recognize all adjustments of a normal recurring nature considered necessary to fairly state the financial position, results of operations, and cash flows for each interim period presented.
See also Note 12, Segment Reporting.
Variable Interest Entities—
Effective January 1, 2016, in connection with our adoption of ASU 2015-02, we updated our evaluation of all jointly held legal entities to determine whether they are now variable interest entities (“VIEs”) under the new guidance. Any entity considered a VIE is evaluated to determine which party is the primary beneficiary and thus should consolidate the VIE. This analysis is complex, involves uncertainties, and requires significant judgment on various matters. In order to determine if we are the primary beneficiary of a VIE, we must determine what activities most significantly impact the economic performance of the entity, whether we have the power to direct those activities, and if our obligation to absorb losses or receive benefits from the VIE could potentially be significant to the VIE.
Net Operating Revenues—
We derived consolidated Net operating revenues from the following payor sources:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Medicare
74.7
%
 
74.5
%
 
75.1
%
 
74.7
%
Medicare Advantage
8.1
%
 
7.7
%
 
7.9
%
 
8.0
%
Managed care
10.0
%
 
10.1
%
 
9.8
%
 
10.0
%
Medicaid
3.2
%
 
3.1
%
 
3.3
%
 
2.9
%
Other third-party payors
1.4
%
 
1.8
%
 
1.4
%
 
1.6
%
Workers’ compensation
0.7
%
 
0.9
%
 
0.8
%
 
0.9
%
Patients
0.5
%
 
0.6
%
 
0.5
%
 
0.6
%
Other income
1.4
%
 
1.3
%
 
1.2
%
 
1.3
%
Total
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%


Inpatient Rehabilitation Revenues
Our inpatient rehabilitation segment derived its Net operating revenues from the following payor sources:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Medicare
73.1
%
 
72.7
%
 
73.3
%
 
73.1
%
Medicare Advantage
7.8
%
 
7.8
%
 
7.7
%
 
8.1
%
Managed care
11.5
%
 
11.4
%
 
11.2
%
 
11.3
%
Medicaid
2.9
%
 
2.6
%
 
3.0
%
 
2.3
%
Other third-party payors
1.7
%
 
2.1
%
 
1.7
%
 
1.9
%
Workers’ compensation
0.8
%
 
1.1
%
 
1.0
%
 
1.1
%
Patients
0.6
%
 
0.7
%
 
0.6
%
 
0.7
%
Other income
1.6
%
 
1.6
%
 
1.5
%
 
1.5
%
Total
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%

Home Health and Hospice Revenues
Our home health and hospice segment derived its Net operating revenues from the following payor sources:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Medicare
82.3
%
 
83.9
%
 
82.9
%
 
83.8
%
Medicare Advantage
9.0
%
 
7.2
%
 
8.9
%
 
7.3
%
Managed care
3.7
%
 
2.9
%
 
3.2
%
 
3.0
%
Medicaid
4.8
%
 
5.8
%
 
4.8
%
 
5.7
%
Other third-party payors
—
%
 
0.1
%
 
—
%
 
0.1
%
Patients
0.1
%
 
0.1
%
 
0.1
%
 
0.1
%
Other income
0.1
%
 
—
%
 
0.1
%
 
—
%
Total
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%

See Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements accompanying the 2015 Form 10-K for our policies related to Net operating revenues, Accounts receivable, and our Allowance for doubtful accounts.
Recent Accounting Pronouncements—
In February 2015, the FASB issued ASU 2015-02, “Consolidations (Topic 810) - Amendments to the Consolidation Analysis,” which provides guidance on evaluating whether a reporting entity should consolidate certain legal entities. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are VIEs. Under this analysis, limited partnerships and other similar entities will be considered a VIE unless the limited partners hold substantive kick-out rights or participating rights. Further, the amendments eliminate the presumption that a general partner should consolidate a limited partnership under the voting interest model, as well as affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This standard was effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. We elected to adopt this guidance using the modified retrospective approach. Our adoption of this guidance resulted in certain limited partnership-like entities that were previously consolidated as voting interest entities to now be consolidated as VIEs, for which additional disclosures are required. Our adoption of ASU 2015-02 did not have a material impact on our financial position, results of operations, or cash flows. See Note 3, Variable Interest Entities.
In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” in order to increase transparency and comparability by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new standard, lessees will recognize a right-of-use asset and a corresponding lease liability for all leases other than leases that meet the definition of a short-term lease. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in an expense pattern similar to current capital leases. Classification will be based on criteria that are similar to those applied in current lease accounting. This standard will be effective for HealthSouth for the annual reporting period beginning after December 15, 2018. Early adoption is permitted. We continue to review the requirements of this standard and any potential impact it may have on our financial position, results of operations, or cash flows.
In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting (Topic 718),” to simplify various aspects of share-based payment accounting and presentation. The new standard requires entities to record all of the tax effects related to share-based payments at settlement (or expiration) through the income statement. This will require us to reclassify tax benefits in excess of compensation cost (“windfalls”) and tax deficiencies (“shortfalls”) to the extent of previous windfalls from Capital in excess of par value to Provision for income tax expense. This change is required to be applied prospectively to all excess tax benefits and tax deficiencies resulting from settlements after the date of adoption of the ASU. The standard eliminates the requirement to delay recognition of a windfall tax benefit until it reduces current taxes payable. This change is required to be applied on a modified retrospective basis, with a cumulative-effect adjustment to opening retained earnings. In addition, all income tax-related cash flows resulting from share-based payments are required to be reported as operating activities on the statement of cash flows as opposed to the current presentation as an inflow from financing activities and an outflow from operating activities. Either prospective or retrospective transition of this provision is permitted. Finally, the standard clarifies that all cash payments made to taxing authorities on the employees’ behalf for withheld shares should be presented as financing activities on the statement of cash flows. This change will be applied retrospectively. For HealthSouth, this guidance is effective for annual reporting periods beginning after December 15, 2016 and interim periods within that reporting period. Early adoption is permitted, with any adjustments reflected as of the beginning of the fiscal year of adoption. We continue to review the requirements of this standard and any potential impact it may have on our financial position, results of operations, or cash flows.
Business Combinations
Business Combinations
Business Combinations
Inpatient Rehabilitation
In February 2016, we acquired 50% of the inpatient rehabilitation hospital at CHI St. Vincent Hot Springs (“Hot Springs”), a 20-bed inpatient rehabilitation hospital in Hot Springs, Arkansas, through a joint venture with St. Vincent Community Health Services, Inc. The acquisition, which was funded through a contribution to the consolidated joint venture, was not material to our financial position, results of operations, or cash flows. The Hot Springs transaction was made to enhance our position and ability to provide inpatient rehabilitative services to patients in Hot Springs and its surrounding areas. As a result of this transaction, Goodwill increased by $1.8 million, none of which is deductible for federal income tax purposes. The goodwill reflects our expectations of our ability to gain access to and penetrate the acquired hospital’s historical patient base and the benefits of being able to leverage operational efficiencies with favorable growth opportunities based on positive demographic trends in this market.
We accounted for this transaction under the acquisition method of accounting and reported the results of operations of the acquired hospital from its respective date of acquisition. Assets acquired and liabilities assumed, if any, were recorded at their estimated fair values as of the respective acquisition date. The fair value of the identifiable intangible asset was based on valuations using the income approach. The income approach is based on management’s estimates of future operating results and cash flows discounted using a weighted-average cost of capital that reflects market participant assumptions. The excess of the fair value of the consideration conveyed over the fair value of the net assets acquired was recorded as goodwill.
The fair value of the assets acquired at the acquisition date were as follows (in millions):
Property and equipment
$
5.1

Identifiable intangible asset:
 

Trade name (useful life of 20 years)
0.2

Goodwill
1.8

Total assets acquired
$
7.1


Information regarding the net cash paid for all inpatient rehabilitation acquisitions during each period presented is as follows (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Fair value of assets acquired
$
—

 
$
62.8

 
$
5.3

 
$
62.8

Goodwill
—

 
0.7

 
1.8

 
0.7

Fair value of liabilities assumed
—

 
(2.7
)
 
—

 
(2.7
)
Fair value of noncontrolling interest owned by joint venture partner
—

 
(4.2
)
 
(7.1
)
 
(4.2
)
Net cash paid for acquisition
$
—

 
$
56.6

 
$
—

 
$
56.6


Home Health and Hospice
On May 1, 2016, we acquired Home Health Agency of Georgia, LLC (“Camellia”), a home health and hospice provider with two home health locations and two hospice locations in the Greater Atlanta area. The acquisition, which was funded using cash on hand, was not material to our financial position, results of operations, or cash flows. As a result of this transaction, Goodwill increased by $8.1 million, all of which is deductible for federal income tax purposes. The Camellia acquisition was made to enhance our position and ability to provide post-acute healthcare services to patients in the applicable geographic area. The goodwill reflects our expectations of our ability to utilize Camellia’s mobile workforce and established relationships within the community and the benefits of being able to leverage operational efficiencies with favorable growth opportunities based on positive demographic trends in this market.
We accounted for this transaction under the acquisition method of accounting and reported the results of operations of Camellia from the date of acquisition. Assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date. The fair values of identifiable intangible assets were based on valuations using the cost and income approaches. The cost approach is based on amounts that would be required to replace the asset (i.e., replacement cost). The income approach is based on management’s estimates of future operating results and cash flows discounted using a weighted-average cost of capital that reflects market participant assumptions. The excess of the fair value of the consideration conveyed over the fair value of the net assets acquired was recorded as goodwill.
The fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions):
Identifiable intangible asset:
 

Noncompete agreements (useful lives of 5 years)
$
0.1

Certificate of need (useful life of 10 years)
1.0

Licenses (useful lives of 10 years)
0.3

Goodwill
8.1

Total assets acquired
9.5

Total liabilities assumed
(0.1
)
Net assets acquired
$
9.4


Information regarding the net cash paid for home health and hospice acquisitions during each period presented is as follows (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Fair value of assets acquired
$
1.4

 
$
7.1

 
$
1.4

 
$
8.4

Goodwill
8.1

 
6.8

 
8.1

 
12.8

Fair value of liabilities assumed
(0.1
)
 
(0.1
)
 
(0.1
)
 
(0.1
)
Net cash paid for acquisitions
$
9.4

 
$
13.8

 
$
9.4

 
$
21.1


Pro Forma Results of Operations
The following table summarizes the results of operations of Hot Springs and Camellia from their respective dates of acquisition included in our consolidated results of operations and the unaudited pro forma results of operations of the combined entity had the date of the acquisitions been January 1, 2015 (in millions):
 
Net Operating Revenues
 
Net Income Attributable to HealthSouth
Acquired entities only: Actual from acquisition date to June 30, 2016
$
3.0

 
$
(0.8
)
Combined entity: Supplemental pro forma from 04/01/2016-06/30/2016
921.2

 
62.6

Combined entity: Supplemental pro forma from 04/01/2015-06/30/2015
766.9

 
43.0

Combined entity: Supplemental pro forma from 01/01/2016-06/30/2016
1,833.0

 
120.7

Combined entity: Supplemental pro forma from 01/01/2015-06/30/2015
1,510.1

 
85.8

See Note 2, Business Combinations, to the consolidated financial statements accompanying the 2015 Form 10-K for information regarding acquisitions completed in 2015.
Variable Interest Entities Variable Interest Entities
Variable Interest Entity Disclosure [Text Block]
Variable Interest Entities
As of June 30, 2016, we consolidated ten limited partnership-like entities that are VIEs and of which we are the primary beneficiary. All ten of these entities were also consolidated as of December 31, 2015. Our ownership percentages in these entities range from 6.8% to 99.5%. Through partnership and management agreements with or governing each of these entities, we manage all of these entities and handle all day-to-day operating decisions. Accordingly, we have the decision making power over the activities that most significantly impact the economic performance of our VIEs and an obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. These decisions and significant activities include, but are not limited to, marketing efforts, oversight of patient admissions, medical training, nurse and therapist scheduling, provision of healthcare services, billing, collections and creation and maintenance of medical records. The terms of the agreements governing each of our VIEs prohibit us from using the assets of each VIE to satisfy the obligations of other entities.
The carrying amounts and classifications of the consolidated VIEs’ assets and liabilities, which are included in our consolidated balance sheet, are as follows (in millions):
 
June 30, 2016
Assets
 
Current assets:
 
Cash and cash equivalents
$
1.5

Accounts receivable, net of allowance for doubtful accounts
31.4

Other current assets
6.7

Total current assets
39.6

Property and equipment, net
132.6

Goodwill
73.5

Intangible assets, net
8.6

Other long-term assets
1.0

Total assets
$
255.3

Liabilities
 
Current liabilities:
 
Current portion of long-term debt
$
1.4

Accounts payable
8.5

Accrued expenses and other current liabilities
14.1

Total current liabilities
24.0

Long-term debt, net of current portion
30.6

Total liabilities
$
54.6

Investments in and Advances to Nonconsolidated Affiliates
Investments in and Advances to Nonconsolidated Affiliates
Investments in and Advances to Nonconsolidated Affiliates
As of June 30, 2016 and December 31, 2015, we had $13.6 million and $11.7 million, respectively, of investments in and advances to nonconsolidated affiliates included in Other long-term assets in our condensed consolidated balance sheets. Investments in and advances to nonconsolidated affiliates represent our investments in seven partially owned subsidiaries, of which six are general or limited partnerships, limited liability companies, or joint ventures in which HealthSouth or one of its subsidiaries is a general or limited partner, managing member, member, or venturer, as applicable. We do not control these affiliates but have the ability to exercise significant influence over the operating and financial policies of certain of these affiliates. Our ownership percentages in these affiliates range from approximately 1% to 60%. We account for these investments using the cost and equity methods of accounting.
The following summarizes the combined results of operations of our equity method affiliates (on a 100% basis, in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Net operating revenues
$
10.9

 
$
8.9

 
$
22.1

 
$
17.1

Operating expenses
(5.8
)
 
(3.8
)
 
(12.1
)
 
(7.7
)
Income from continuing operations, net of tax
5.0

 
4.8

 
10.0

 
8.7

Net income
5.0

 
4.8

 
10.0

 
8.7

Long-term Debt
Long-term Debt
Long-term Debt
Our long-term debt outstanding consists of the following (in millions):
 
June 30, 2016
 
December 31, 2015
Credit Agreement—
 
 
 
Advances under revolving credit facility
$
150.0

 
$
130.0

Term loan facilities
432.3

 
443.3

Bonds payable—
 
 
 
7.75% Senior Notes due 2022
75.3

 
174.3

5.125% Senior Notes due 2023
294.9

 
294.6

5.75% Senior Notes due 2024
1,192.9

 
1,192.6

5.75% Senior Notes due 2025
343.6

 
343.4

2.00% Convertible Senior Subordinated Notes due 2043
270.7

 
265.9

Other notes payable
43.3

 
39.2

Capital lease obligations
283.5

 
288.2

 
3,086.5

 
3,171.5

Less: Current portion
(36.5
)
 
(36.8
)
Long-term debt, net of current portion
$
3,050.0

 
$
3,134.7


The following chart shows scheduled principal payments due on long-term debt for the next five years and thereafter (in millions):
 
Face Amount
 
Net Amount
July 1 through December 31, 2016
$
18.2

 
$
18.2

2017
36.8

 
36.8

2018
37.2

 
37.2

2019
40.1

 
40.0

2020
834.2

 
783.5

2021
10.7

 
10.7

Thereafter
2,179.4

 
2,160.1

Total
$
3,156.6

 
$
3,086.5


On February 23, 2016, we gave notice of, and made an irrevocable commitment for, the redemption of $50 million of the outstanding principal amount of our existing 7.75% Senior Notes due 2022 (the “2022 Notes”). On March 24, 2016, we completed this redemption using cash on hand and capacity under our revolving credit facility. Pursuant to the terms of the 2022 Notes, this optional redemption was made at a price of 103.875%, which resulted in a total cash outlay of approximately $52 million. As a result of this redemption, we recorded a $2.4 million Loss on early extinguishment of debt in the first quarter of 2016.
On April 6, 2016, we gave notice of, and made an irrevocable commitment for, the redemption of an additional $50 million of the outstanding principal amount of the 2022 Notes. On May 6, 2016, we completed this redemption using cash on hand and capacity under our revolving credit facility. Pursuant to the terms of the 2022 Notes, this optional redemption was also made at a price of 103.875%, which resulted in a total cash outlay of approximately $52 million. As a result of this redemption, we recorded a $2.4 million Loss on early extinguishment of debt in the second quarter of 2016.
On July 28, 2016, we gave notice of, and made an irrevocable commitment for, the redemption of the remaining outstanding principal balance of $76.0 million of the 2022 Notes. Pursuant to the terms of the 2022 Notes, this optional redemption will be made at a price of 102.583%, which will result in a total cash outlay of approximately $78 million when the transaction closes on September 15, 2016. We plan to use cash on hand and capacity under our revolving credit facility to fund the redemption. As a result of this redemption, we expect to record an approximate $3 million Loss on early extinguishment of debt in the third quarter of 2016.
In February 2016, we entered into a development/lease agreement with CR HQ, LLC (the “Developer”) to construct our new corporate headquarters in Birmingham, Alabama. Under the terms of this agreement, the Developer is responsible for all costs of constructing the new facility ‘shell’ which will then be leased to us for an initial term of 15 years with four, five-year renewal options. The lease is expected to commence in the first half of 2018. We are responsible for the costs associated with improvements to the interior of the building. Due to the nature and extent of the tenant improvements we will be making to the new corporate headquarters and certain provisions of the development/lease agreement, we are deemed to be the accounting owner of the new corporate headquarters during the construction period. Construction commenced in the second quarter of 2016. Accordingly, we increased Property and equipment, net by $5.8 million, based on the construction costs incurred to date by the Developer, and recorded a corresponding noncurrent financing obligation liability of $5.8 million in Long-term debt, net of current portion within our condensed consolidated balance sheet as of June 30, 2016. The total financing obligation associated with the Developer’s costs to construct the new corporate headquarters is estimated at $56 million. The amounts recorded for construction costs and the corresponding liability are non-cash activities for purposes of our condensed consolidated statement of cash flows.
For additional information regarding our indebtedness, see Note 8, Long-term Debt, to the consolidated financial statements accompanying the 2015 Form 10-K.
Redeemable Noncontrolling Interests
Redeemable Noncontolling Interests
Redeemable Noncontrolling Interests
The following is a summary of the activity related to our Redeemable noncontrolling interests during the six months ended June 30, 2016 and 2015 (in millions):
 
Six Months Ended June 30,
 
2016
 
2015
Balance at beginning of period
$
121.1

 
$
84.7

Net income attributable to noncontrolling interests
7.5

 
6.4

Distributions declared
(4.3
)
 
(4.0
)
Change in fair value
(4.3
)
 
11.4

Balance at end of period
$
120.0

 
$
98.5


The following table reconciles the net income attributable to nonredeemable Noncontrolling interests, as recorded in the shareholders’ equity section of the condensed consolidated balance sheets, and the net income attributable to Redeemable noncontrolling interests, as recorded in the mezzanine section of the condensed consolidated balance sheets, to the Net income attributable to noncontrolling interests presented in the condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2015 (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2016
 
2015
 
2016
 
2015
Net income attributable to nonredeemable noncontrolling interests
$
15.0

 
$
13.8

 
$
29.8

 
$
27.4

Net income attributable to redeemable noncontrolling interests
3.6

 
3.5

 
7.5

 
6.4

Net income attributable to noncontrolling interests
$
18.6

 
$
17.3

 
$
37.3

 
$
33.8

Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
Our financial assets and liabilities that are measured at fair value on a recurring basis are as follows (in millions):
 
 
 
Fair Value Measurements at Reporting Date Using
As of June 30, 2016
Fair Value
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Valuation Technique (1)
Other current assets:
 
 
 
 
 
 
 
 
 
Current portion of restricted marketable securities
$
27.4

 
$
—

 
$
27.4

 
$
—

 
M
Other long-term assets:
 
 
 
 
 
 
 
 
 
Restricted marketable securities
29.9

 
—

 
29.9

 
—

 
M
Redeemable noncontrolling interests
120.0

 
—

 
—

 
120.0

 
I
As of December 31, 2015
 
 
 
 
 
 
 
 
 
Other current assets:
 
 
 
 
 
 
 
 
 
Current portion of restricted marketable securities
$
16.1

 
$
—

 
$
16.1

 
$
—

 
M
Other long-term assets:
 
 
 
 
 
 
 
 
 
Restricted marketable securities
40.1

 
—

 
40.1

 
—

 
M
Redeemable noncontrolling interests
121.1

 
—

 
—

 
121.1

 
I
(1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I).
The fair values of our financial assets and liabilities are determined as follows:
•
Restricted marketable securities - The fair values of our available-for-sale restricted marketable securities are determined based on quoted market prices in active markets or quoted prices, dealer quotations, or alternative pricing sources supported by observable inputs in markets that are not considered to be active.
•
Redeemable noncontrolling interests - The fair value of the Redeemable noncontrolling interest related to our home health segment is determined using the product of a twelve-month specified performance measure and a specified median market price multiple based on a basket of public health companies. To determine the fair value of the Redeemable noncontrolling interests in our joint venture hospitals, we use the applicable hospitals’ projected operating results and cash flows discounted using a rate that reflects market participant assumptions for the applicable facilities. The projected operating results use management’s best estimates of economic and market conditions over the forecasted periods including assumptions for pricing and volume, operating expenses, and capital expenditures. See also Note 6, Redeemable Noncontrolling Interests.
In addition to assets and liabilities recorded at fair value on a recurring basis, we are also required to record assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges or similar adjustments made to the carrying value of the applicable assets. During the three and six months ended June 30, 2016 and June 30, 2015, we did not record any gains or losses related to our nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a nonrecurring basis as part of our continuing operations.
As discussed in Note 1, Summary of Significant Accounting Policies, “Fair Value Measurements,” to the consolidated financial statements accompanying the 2015 Form 10-K, the carrying value equals fair value for our financial instruments that are not included in the table below and are classified as current in our condensed consolidated balance sheets. The carrying amounts and estimated fair values for all of our other financial instruments are presented in the following table (in millions):
 
As of June 30, 2016
 
As of December 31, 2015
 
Carrying Amount
 
Estimated Fair Value
 
Carrying Amount
 
Estimated Fair Value
Long-term debt:
 

 
 

 
 

 
 

Advances under revolving credit facility
$
150.0

 
$
150.0

 
$
130.0

 
$
130.0

Term loan facilities
432.3

 
433.8

 
443.3

 
445.0

7.75% Senior Notes due 2022
75.3

 
79.3

 
174.3

 
183.7

5.125% Senior Notes due 2023
294.9

 
297.8

 
294.6

 
288.0

5.75% Senior Notes due 2024
1,192.9

 
1,215.8

 
1,192.6

 
1,146.0

5.75% Senior Notes due 2025
343.6

 
350.0

 
343.4

 
332.5

2.00% Convertible Senior Subordinated Notes due 2043
270.7

 
372.4

 
265.9

 
345.0

Other notes payable
43.3

 
43.3

 
39.2

 
39.2

Financial commitments:
 
 
 
 
 
 
 
Letters of credit
—

 
35.0

 
—

 
34.2


Fair values for our long-term debt and financial commitments are determined using inputs, including quoted prices in nonactive markets, that are observable either directly or indirectly, or Level 2 inputs within the fair value hierarchy. See Note 1, Summary of Significant Accounting Policies, “Fair Value Measurements,” to the consolidated financial statements accompanying the 2015 Form 10-K.
Share-Based Payments
Share-Based Payments
Share-Based Payments
In February and May 2016, we issued a total of 0.8 million restricted stock awards to members of our management team and our board of directors. Approximately 0.2 million of these awards contain only a service condition, while the remainder contain both a service and a performance or market condition. For the awards that include a performance or market condition, the number of shares that will ultimately be granted to employees may vary based on the Company’s performance during the applicable two-year performance measurement period. Additionally, in February 2016, we granted 0.1 million stock options to members of our management team. The fair value of these awards and options was determined using the policies described in Note 1, Summary of Significant Accounting Policies, and Note 13, Share-Based Payments, to the consolidated financial statements accompanying the 2015 Form 10-K.
Income Taxes
Income Taxes
Income Taxes
Our Provision for income tax expense of $42.4 million and $82.1 million for the three and six months ended June 30, 2016, respectively, primarily resulted from the application of our estimated effective blended federal and state income tax rate. Our Provision for income tax expense of $32.2 million and $62.5 million for the three and six months ended June 30, 2015, respectively, primarily resulted from the application of our estimated effective blended federal and state income tax rate.
The $115.5 million of net deferred tax assets included in the accompanying condensed consolidated balance sheet as of June 30, 2016 reflects management’s assessment it is more likely than not we will be able to generate sufficient future taxable income to utilize those deferred tax assets based on our current estimates and assumptions. As of June 30, 2016, we maintained a valuation allowance of $27.6 million due to uncertainties regarding our ability to utilize a portion of our state net operating losses (“NOLs”) and other credits before they expire. The amount of the valuation allowance has been determined for each tax jurisdiction based on the weight of all available evidence including management’s estimates of taxable income for each jurisdiction in which we operate over the periods in which the related deferred tax assets will be recoverable. It is possible we may be required to increase or decrease our valuation allowance at some future time if our forecast of future earnings varies from actual results on a consolidated basis or in the applicable state tax jurisdictions, or if the timing of future tax deductions differs from our expectations.
We have significant federal and state NOLs that expire in various amounts at varying times through 2031. Our reported federal NOL of $25.1 million (approximately $72 million on a gross basis) as of June 30, 2016 excludes $15.5 million related to operating loss carryforwards resulting from excess tax benefits related to share-based awards, the tax benefits of which, when recognized, will be accounted for as a credit to Capital in excess of par value when they reduce taxes payable. At June 30, 2016, we had unused federal tax credit carryforwards of $15.8 million. These credit carryforwards expire in various amounts at various times through 2036.
Total remaining gross unrecognized tax benefits were $2.8 million and $2.9 million as of June 30, 2016 and December 31, 2015, respectively, all of which would affect our effective tax rate if recognized. A reconciliation of the beginning and ending liability for unrecognized tax benefits is as follows (in millions):
 
Gross Unrecognized Income Tax Benefits
Balance at December 31, 2015
$
2.9

Gross amount of increases in unrecognized tax benefits related to prior periods
0.3

Gross amount of decreases in unrecognized tax benefits related to prior periods
(0.4
)
Gross amount of increases in unrecognized tax benefits related to current periods
0.1

Gross amount of decreases in unrecognized tax benefits related to current periods
(0.1
)
Balance at June 30, 2016
$
2.8

Our continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. Interest recorded as part of our income tax provision during the three and six months ended June 30, 2016 and 2015 was not material. Accrued interest income related to income taxes as of June 30, 2016 and December 31, 2015 was not material.
In December 2014, we signed an agreement with the IRS to begin participating in their Compliance Assurance Process, a program in which we and the IRS endeavor to agree on the treatment of significant tax positions prior to the filing of our federal income tax return. We signed a new agreement in December 2015 for the 2016 tax year. As a result of these agreements, the IRS surveyed our 2013, 2012, and 2011 federal income tax returns and will examine our 2015 and 2016 returns when filed. Our 2014 federal income tax return has been filed, and the IRS has not indicated its intent to examine or survey this return. We have settled federal income tax examinations with the IRS for all tax years through 2012. Our state income tax returns are also periodically examined by various regulatory taxing authorities. We are currently under audit by six states for tax years ranging from 2007 through 2014.
For the tax years that remain open under the applicable statutes of limitation, amounts related to unrecognized tax benefits have been considered by management in its estimate of our potential net recovery of prior years’ income taxes. Based on discussions with taxing authorities, we anticipate $0.4 million to $2.6 million of our unrecognized tax benefits may be released within the next 12 months.
Earnings per Common Share
Earnings per Common Share
Earnings per Common Share
The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
81.3

 
$
61.8

 
$
158.1

 
$
121.1

Less: Net income attributable to noncontrolling interests included in continuing operations
(18.6
)
 
(17.3
)
 
(37.3
)
 
(33.8
)
Less: Income allocated to participating securities
(0.2
)
 
(0.3
)
 
(0.4
)
 
(0.6
)
Less: Convertible perpetual preferred stock dividends
—

 
—

 
—

 
(1.6
)
Income from continuing operations attributable to HealthSouth common shareholders
62.5

 
44.2

 
120.4

 
85.1

Loss from discontinued operations, net of tax, attributable to HealthSouth common shareholders
(0.1
)
 
(1.6
)
 
(0.2
)
 
(1.9
)
Net income attributable to HealthSouth common shareholders
$
62.4

 
$
42.6

 
$
120.2

 
$
83.2

Denominator:
 
 
 
 
 
 
 
Basic weighted average common shares outstanding
89.3

 
89.8

 
89.4

 
88.4

Basic earnings per share attributable to HealthSouth common shareholders:
 
 
 
 
 
 
 
Continuing operations
$
0.70

 
$
0.49

 
$
1.34

 
$
0.96

Discontinued operations
—

 
(0.02
)
 
—

 
(0.02
)
Net income
$
0.70

 
$
0.47

 
$
1.34

 
$
0.94

 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
81.3

 
$
61.8

 
$
158.1

 
$
121.1

Less: Net income attributable to noncontrolling interests included in continuing operations
(18.6
)
 
(17.3
)
 
(37.3
)
 
(33.8
)
Add: Interest on convertible debt, net of tax
2.4

 
2.3

 
4.8

 
4.6

Income from continuing operations attributable to HealthSouth common shareholders
65.1

 
46.8

 
125.6

 
91.9

Loss from discontinued operations, net of tax, attributable to HealthSouth common shareholders
(0.1
)
 
(1.6
)
 
(0.2
)
 
(1.9
)
Net income attributable to HealthSouth common shareholders
$
65.0

 
$
45.2

 
$
125.4

 
$
90.0

Denominator:
 
 
 
 
 
 
 
Diluted weighted average common shares outstanding
99.4

 
101.5

 
99.4

 
101.3

Diluted earnings per share attributable to HealthSouth common shareholders:
 
 
 
 
 
 
 
Continuing operations
$
0.65

 
$
0.47

 
$
1.26

 
$
0.91

Discontinued operations
—

 
(0.02
)
 
—

 
(0.02
)
Net income
$
0.65

 
$
0.45

 
$
1.26

 
$
0.89


The following table sets forth the reconciliation between basic weighted average common shares outstanding and diluted weighted average common shares outstanding (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Basic weighted average common shares outstanding
89.3

 
89.8

 
89.4

 
88.4

Convertible perpetual preferred stock
—

 
0.8

 
—

 
2.0

Convertible senior subordinated notes
8.5

 
8.2

 
8.5

 
8.2

Restricted stock awards, dilutive stock options, restricted stock units, and common stock warrants
1.6

 
2.7

 
1.5

 
2.7

Diluted weighted average common shares outstanding
99.4

 
101.5

 
99.4

 
101.3


In October 2015, February 2016, and May 2016, our board of directors declared cash dividends of $0.23 per share that were paid in January 2016, April 2016, and July 2016, respectively. On July 21, 2016, our board of directors approved an increase in our quarterly dividend and declared a cash dividend of $0.24 per share, payable on October 17, 2016 to stockholders of record on October 3, 2016. As of June 30, 2016 and December 31, 2015, accrued common stock dividends of $21.3 million were included in Accrued expenses and other current liabilities in our condensed consolidated balance sheets. Future dividend payments are subject to declaration by our board of directors.
On April 22, 2015, we delivered notice of the exercise of our rights to force conversion of all outstanding shares of our Convertible perpetual preferred stock (par value of $0.10 per share and liquidation preference of $1,000 per share) pursuant to the underlying certificate of designations. The effective date of the conversion was April 23, 2015. On that date, each share of preferred stock automatically converted into 33.9905 shares of our common stock (par value of $0.01 per share). We completed the forced conversion by issuing and delivering in the aggregate 3,271,415 shares of our common stock to the registered holders of the 96,245 shares of the preferred stock outstanding and paying cash in lieu of fractional shares due to those holders.
The indenture underlying our convertible notes includes antidilutive protection that requires adjustments to the number of shares of common stock issuable upon conversion and the exercise price for common stock upon the occurrence of certain events, including payment of cash dividends on our common stock after a de minimis threshold. At issuance, the convertible notes had a conversion price of $39.65 per share, which was equal to an initial conversion rate of 25.2194 shares per $1,000 principal amount of the convertible notes. The payment of dividends on our common stock has triggered and will continue to trigger, from time to time, the antidilutive adjustment provisions of the convertible notes. The current conversion price of the convertible notes is $37.59 per share, and the conversion rate is 26.6011 for each $1,000 principal amount of the convertible notes.
See Note 8, Long-term Debt, Note 10, Convertible Perpetual Preferred Stock, and Note 16, Earnings per Common Share, to the consolidated financial statements accompanying the 2015 Form 10-K for additional information related to our convertible notes, common stock, common stock warrants, and convertible perpetual preferred stock.
Contingencies and Other Commitments
Contingencies and Other Commitments
Contingencies and Other Commitments
We operate in a highly regulated and litigious industry. As a result, various lawsuits, claims, and legal and regulatory proceedings have been and can be expected to be instituted or asserted against us. The resolution of any such lawsuits, claims, or legal and regulatory proceedings could materially and adversely affect our financial position, results of operations, and cash flows in a given period.
Nichols Litigation—
We have been named as a defendant in a lawsuit filed March 28, 2003 by several individual stockholders in the Circuit Court of Jefferson County, Alabama, captioned Nichols v. HealthSouth Corp. The plaintiffs allege that we, some of our former officers, and our former investment bank engaged in a scheme to overstate and misrepresent our earnings and financial position. The plaintiffs are seeking compensatory and punitive damages. This case was stayed in the Circuit Court on August 8, 2005. The plaintiffs filed an amended complaint on November 9, 2010 to which we responded with a motion to dismiss filed on December 22, 2010. During a hearing on February 24, 2012, plaintiffs’ counsel indicated his intent to dismiss certain claims against us. Instead, on March 9, 2012, the plaintiffs amended their complaint to include additional securities fraud claims against HealthSouth and add several former officers to the lawsuit. On September 12, 2012, the plaintiffs further amended their complaint to request certification as a class action. One of those named officers has repeatedly attempted to remove the case to federal district court, most recently on December 11, 2012. We filed our latest motion to remand the case back to state court on January 10, 2013. On September 27, 2013, the federal court remanded the case back to state court. On November 25, 2014, the plaintiffs filed another amended complaint to assert new allegations relating to the time period of 1997 to 2002. On December 10, 2014, we filed a motion to dismiss on the grounds the plaintiffs lack standing because their claims are derivative in nature, and the claims are time-barred by the statute of limitations. On May 26, 2016, the court granted our motion to dismiss. The plaintiffs appealed the dismissal of the case to the Supreme Court of Alabama on June 28, 2016. The supreme court has not yet scheduled a hearing on the appeal.
We intend to vigorously defend ourselves in this case. Based on the stage of litigation, review of the current facts and circumstances as we understand them, the nature of the underlying claim, the results of the proceedings to date, and the nature and scope of the defense we continue to mount, we do not believe an adverse judgment or settlement is probable in this matter, and it is also not possible to estimate the amount of loss, if any, or range of possible loss that might result from an adverse judgment or settlement of this case.
Other Litigation—
One of our hospital subsidiaries was named as a defendant in a lawsuit filed August 12, 2013 by an individual in the Circuit Court of Etowah County, Alabama, captioned Honts v. HealthSouth Rehabilitation Hospital of Gadsden, LLC. The plaintiff alleged that her mother, who died more than three months after being discharged from our hospital, received an unprescribed opiate medication at the hospital. We deny the patient received any such medication, accounted for all the opiates at the hospital and argued the plaintiff established no causal liability between the actions of our staff and her mother’s death. The plaintiff sought recovery for punitive damages. On May 18, 2016, the jury in this case returned a verdict in favor of the plaintiff for $20.0 million. On June 17, 2016, we filed a renewed motion for judgment as a matter of law or, in the alternative, a motion for new trial or, in the further alternative, a motion seeking reduction of the damages awarded (collectively, the “post-judgment motions”). Those post-judgment motions remain pending before the trial court. We intend to vigorously defend ourselves in this case through those motions and by appeal, if necessary. Although we continue to believe in the merit of our defenses and counterarguments, we have recorded a liability of $21.0 million (including $1.0 million in fees and expenses) in Accrued expenses and other liabilities in our condensed consolidated balance sheet as of June 30, 2016 with a corresponding receivable of $15.0 million in Other current assets for the portion of the liability we would expect to be covered through our excess insurance coverages, resulting in a net charge of an additional $5.7 million to Other operating expenses in our condensed consolidated statements of operations for the three and six months ended June 30, 2016. The $6.0 million portion of this liability would be a covered claim through our captive insurance subsidiary, HCS, Ltd. As a result of the verdict, we posted a bond in the amount of the judgment pending resolution of our post-judgment motions, and if necessary, any appeals.

Governmental Inquiries and Investigations—
On June 24, 2011, we received a document subpoena addressed to HealthSouth Hospital of Houston, a long-term acute care hospital (“LTCH”) we closed in August 2011, and issued from the Dallas, Texas office of the HHS-OIG. The subpoena stated it was in connection with an investigation of possible false or otherwise improper claims submitted to Medicare and Medicaid and requested documents and materials relating to patient admissions, length of stay, and discharge matters at this closed LTCH. We furnished the documents requested and have heard nothing from the HHS-OIG since December 2012.
On March 4, 2013, we received document subpoenas from an office of the HHS-OIG addressed to four of our hospitals. Those subpoenas also requested complete copies of medical records for 100 patients treated at each of those hospitals between September 2008 and June 2012. The investigation is being conducted by the United States Department of Justice (the “DOJ”). On April 24, 2014, we received document subpoenas relating to an additional seven of our hospitals. The new subpoenas reference substantially similar investigation subject matter as the original subpoenas and request materials from the period January 2008 through December 2013. Two of the four hospitals addressed in the original set of subpoenas have received supplemental subpoenas to cover this new time period. The most recent subpoenas do not include requests for specific patient files. However, in February 2015, the DOJ requested the voluntary production of the medical records of an additional 70 patients, some of whom were treated in hospitals not subject to the subpoenas, and we provided these records.
All of the subpoenas are in connection with an investigation of alleged improper or fraudulent claims submitted to Medicare and Medicaid and request documents and materials relating to practices, procedures, protocols and policies, of certain pre- and post-admissions activities at these hospitals including, among other things, marketing functions, pre-admission screening, post-admission physician evaluations, patient assessment instruments, individualized patient plans of care, and compliance with the Medicare 60% rule. Under the Medicare rule commonly referred to as the “60% rule,” an inpatient rehabilitation hospital must treat 60% or more of its patients from at least one of a specified list of medical conditions in order to be reimbursed at the inpatient rehabilitation hospital payment rates, rather than at the lower acute care hospital payment rates.
We are cooperating fully with the DOJ in connection with these subpoenas and are currently unable to predict the timing or outcome of the related investigations.
Other Matters—
The False Claims Act, 18 U.S.C. § 287, allows private citizens, called “relators,” to institute civil proceedings alleging violations of the False Claims Act. These qui tam cases are generally sealed by the court at the time of filing. The only parties typically privy to the information contained in the complaint are the relator, the federal government, and the presiding court. It is possible that qui tam lawsuits have been filed against us and that those suits remain under seal or that we are unaware of such filings or prevented by existing law, court order, or agreement with the government from discussing or disclosing the filing of such suits. We may be subject to liability under one or more undisclosed qui tam cases brought pursuant to the False Claims Act.
It is our obligation as a participant in Medicare and other federal healthcare programs to routinely conduct audits and reviews of the accuracy of our billing systems and other regulatory compliance matters. As a result of these reviews, we have made, and will continue to make, disclosures to the HHS-OIG and the United States Centers for Medicare and Medicaid Services relating to amounts we suspect represent over-payments from these programs, whether due to inaccurate billing or otherwise. Some of these disclosures have resulted in, or may result in, HealthSouth refunding amounts to Medicare or other federal healthcare programs.
Segment Reporting Segment Reporting
Segment Reporting Disclosure [Text Block]
Segment Reporting
Our internal financial reporting and management structure is focused on the major types of services provided by HealthSouth. We manage our operations using two operating segments which are also our reportable segments: (1) inpatient rehabilitation and (2) home health and hospice. These reportable operating segments are consistent with information used by our chief executive officer, who is our chief operating decision maker, to assess performance and allocate resources. The following is a brief description of our reportable segments:
•
Inpatient Rehabilitation - Our national network of inpatient rehabilitation hospitals stretches across 29 states and Puerto Rico, with a concentration of hospitals in the eastern half of the United States and Texas. As of June 30, 2016, we operate 121 inpatient rehabilitation hospitals, including one hospital that operates as a joint venture which we account for using the equity method of accounting. In addition, we manage four inpatient rehabilitation units through management contracts. We provide specialized rehabilitative treatment on both an inpatient and outpatient basis. Our inpatient rehabilitation hospitals provide a higher level of rehabilitative care to patients who are recovering from conditions such as stroke and other neurological disorders, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions, and amputations.
•
Home Health and Hospice - As of June 30, 2016, we provide home health and hospice services in 218 locations across 24 states. Two of these agencies operate as joint ventures which we account for using the equity method of accounting. Our home health services include a comprehensive range of Medicare-certified home nursing services to adult patients in need of care. These services include, among others, skilled nursing, physical, occupational, and speech therapy, medical social work, and home health aide services. We also provide specialized home care services in Texas and Kansas for pediatric patients with severe medical conditions. Our hospice services primarily include in-home services to terminally ill patients and their families to address patients’ physical needs, including pain control and symptom management, and to provide emotional and spiritual support.
The accounting policies of our reportable segments are the same as those described in Note 1, Basis of Presentation, “Variable Interest Entities,” to these condensed consolidated financial statements and Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements accompanying the 2015 Form 10-K. All revenues for our services are generated through external customers. See Note 1, Basis of Presentation, “Net Operating Revenues,” for the payor composition of our revenues. No corporate overhead is allocated to either of our reportable segments. Our chief operating decision maker evaluates the performance of our segments and allocates resources to them based on adjusted earnings before interest, taxes, depreciation, and amortization (“Segment Adjusted EBITDA”).
Selected financial information for our reportable segments is as follows (in millions):
 
Inpatient Rehabilitation
 
Home Health and Hospice
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Net operating revenues
$
752.6

 
$
645.3

 
$
1,501.8

 
$
1,275.6

 
$
168.1

 
$
119.1

 
$
328.7

 
$
229.4

Less: Provision for doubtful accounts
(14.5
)
 
(10.2
)
 
(30.1
)
 
(21.2
)
 
(0.9
)
 
(0.7
)
 
(1.8
)
 
(1.3
)
Net operating revenues less provision for doubtful accounts
738.1

 
635.1

 
1,471.7

 
1,254.4

 
167.2

 
118.4

 
326.9

 
228.1

Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inpatient rehabilitation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
366.1

 
317.6

 
736.0

 
624.0

 
—

 
—

 
—

 
—

Other operating expenses
106.8

 
93.5

 
211.6

 
188.7

 
—

 
—

 
—

 
—

Supplies
31.8

 
29.9

 
64.2

 
59.7

 
—

 
—

 
—

 
—

Occupancy costs
15.4

 
10.7

 
31.0

 
21.1

 
—

 
—

 
—

 
—

Home health and hospice:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of services sold (excluding depreciation and amortization)
—

 
—

 
—

 
—

 
81.6

 
56.7

 
160.0

 
110.1

Support and overhead costs
—

 
—

 
—

 
—

 
58.0

 
41.0

 
115.0

 
79.1

 
520.1

 
451.7

 
1,042.8

 
893.5

 
139.6

 
97.7

 
275.0

 
189.2

Other income
(0.7
)
 
(0.4
)
 
(1.3
)
 
(0.9
)
 
—

 
—

 
—

 
—

Equity in net income of nonconsolidated affiliates
(2.2
)
 
(2.3
)
 
(4.4
)
 
(3.9
)
 
(0.2
)
 
—

 
(0.4
)
 
—

Noncontrolling interests
16.8

 
15.6

 
33.6

 
30.8

 
1.8

 
1.7

 
3.7

 
3.0

Segment Adjusted EBITDA
$
204.1

 
$
170.5

 
$
401.0

 
$
334.9

 
$
26.0

 
$
19.0

 
$
48.6

 
$
35.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
$
47.4

 
$
33.1

 
$
86.1

 
$
59.4

 
$
1.9

 
$
1.9

 
$
2.4

 
$
2.2


 
Inpatient Rehabilitation
 
Home Health and Hospice
 
HealthSouth Consolidated
As of June 30, 2016
 
 
 
 
 
Total assets
$
3,612.4

 
$
1,091.5

 
$
4,632.6

Investments in and advances to nonconsolidated affiliates
10.8

 
2.8

 
13.6

As of December 31, 2015
 
 
 
 
 
Total assets
$
3,589.0

 
$
1,088.4

 
$
4,606.1

Investments in and advances to nonconsolidated affiliates
9.3

 
2.4

 
11.7


Segment reconciliations (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Total segment Adjusted EBITDA
$
230.1

 
$
189.5

 
$
449.6

 
$
370.8

General and administrative expenses
(34.4
)
 
(32.1
)
 
(66.3
)
 
(66.7
)
Depreciation and amortization
(42.9
)
 
(32.7
)
 
(85.3
)
 
(64.6
)
(Loss) gain on disposal or impairment of assets
(0.2
)
 
(0.8
)
 
(0.4
)
 
0.7

Government, class action, and related settlements
—

 
—

 
—

 
(8.0
)
Professional fees - accounting, tax, and legal
(1.7
)
 
(0.1
)
 
(1.9
)
 
(2.3
)
Loss on early extinguishment of debt
(2.4
)
 
(18.8
)
 
(4.8
)
 
(20.0
)
Interest expense and amortization of debt discounts and fees
(43.4
)
 
(30.9
)
 
(88.0
)
 
(62.7
)
Net income attributable to noncontrolling interests
18.6

 
17.3

 
37.3

 
33.8

Gain related to SCA equity interest
—

 
2.6

 
—

 
2.6

Income from continuing operations before income tax expense
$
123.7

 
$
94.0

 
$
240.2

 
$
183.6


 
June 30, 2016
 
December 31, 2015
Total assets for reportable segments
$
4,703.9

 
$
4,677.4

Reclassification of deferred income tax liabilities to net deferred income tax assets
(71.3
)
 
(71.3
)
Total consolidated assets
$
4,632.6

 
$
4,606.1


Additional detail regarding the revenues of our operating segments by service line follows (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Inpatient rehabilitation:
 
 
 
 
 
 
 
Inpatient
$
721.2

 
$
618.7

 
$
1,440.5

 
$
1,225.3

Outpatient and other
31.4

 
26.6

 
61.3

 
50.3

Total inpatient rehabilitation
752.6

 
645.3

 
1,501.8

 
1,275.6

Home health and hospice:
 
 
 
 
 
 
 
Home health
157.1

 
111.5

 
308.0

 
215.4

Hospice
11.0

 
7.6

 
20.7

 
14.0

Total home health and hospice
168.1

 
119.1

 
328.7

 
229.4

Total net operating revenues
$
920.7

 
$
764.4

 
$
1,830.5

 
$
1,505.0

Condensed Consolidating Financial Information
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information
The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X, Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” Each of the subsidiary guarantors is 100% owned by HealthSouth, and all guarantees are full and unconditional and joint and several, subject to certain customary conditions for release. HealthSouth’s investments in its consolidated subsidiaries, as well as guarantor subsidiaries’ investments in nonguarantor subsidiaries and nonguarantor subsidiaries’ investments in guarantor subsidiaries, are presented under the equity method of accounting with the related investment presented within the line items Intercompany receivable and investments in consolidated affiliates and Intercompany payable in the accompanying condensed consolidating balance sheets.
The terms of our credit agreement allow us to declare and pay cash dividends on our common stock so long as: (1) we are not in default under our credit agreement and (2) our senior secured leverage ratio (as defined in our credit agreement) remains less than or equal to 1.75x. The terms of our senior note indenture allow us to declare and pay cash dividends on our common stock so long as (1) we are not in default, (2) the consolidated coverage ratio (as defined in the indenture) exceeds 2x or we are otherwise allowed under the indenture to incur debt, and (3) we have capacity under the indenture’s restricted payments covenant to declare and pay dividends. See Note 8, Long-term Debt, to the consolidated financial statements accompanying the 2015 Form 10-K.
Periodically, certain wholly owned subsidiaries of HealthSouth make dividends or distributions of available cash and/or intercompany receivable balances to their parents. In addition, HealthSouth makes contributions to certain wholly owned subsidiaries. When made, these dividends, distributions, and contributions impact the Intercompany receivable, Intercompany payable, and HealthSouth shareholders’ equity line items in the accompanying condensed consolidating balance sheet but have no impact on the consolidated financial statements of HealthSouth Corporation.
 
Three Months Ended June 30, 2016
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net operating revenues
$
5.1

 
$
546.1

 
$
398.9

 
$
(29.4
)
 
$
920.7

Less: Provision for doubtful accounts
—

 
(10.6
)
 
(4.8
)
 
—

 
(15.4
)
Net operating revenues less provision for doubtful accounts
5.1

 
535.5

 
394.1

 
(29.4
)
 
905.3

Operating expenses:
 

 
 

 
 

 
 

 
 
Salaries and benefits
11.0

 
248.7

 
231.0

 
(4.6
)
 
486.1

Other operating expenses
6.9

 
76.7

 
49.4

 
(11.5
)
 
121.5

Occupancy costs
0.9

 
22.4

 
7.9

 
(13.3
)
 
17.9

Supplies
—

 
22.4

 
12.0

 
—

 
34.4

General and administrative expenses
31.2

 
—

 
3.2

 
—

 
34.4

Depreciation and amortization
2.4

 
25.9

 
14.6

 
—

 
42.9

Professional fees—accounting, tax, and legal
1.7

 
—

 
—

 
—

 
1.7

Total operating expenses
54.1

 
396.1

 
318.1

 
(29.4
)
 
738.9

Loss on early extinguishment of debt
2.4

 
—

 
—

 
—

 
2.4

Interest expense and amortization of debt discounts and fees
36.6

 
5.7

 
6.0

 
(4.9
)
 
43.4

Other income
(4.9
)
 
(0.1
)
 
(0.6
)
 
4.9

 
(0.7
)
Equity in net income of nonconsolidated affiliates
—

 
(2.2
)
 
(0.2
)
 
—

 
(2.4
)
Equity in net income of consolidated affiliates
(88.7
)
 
(10.4
)
 
—

 
99.1

 
—

Management fees
(33.8
)
 
25.9

 
7.9

 
—

 
—

Income from continuing operations before income tax (benefit) expense
39.4

 
120.5

 
62.9

 
(99.1
)
 
123.7

Provision for income tax (benefit) expense
(23.3
)
 
48.1

 
17.6

 
—

 
42.4

Income from continuing operations
62.7

 
72.4

 
45.3

 
(99.1
)
 
81.3

Loss from discontinued operations, net of tax
(0.1
)
 
—

 
—

 
—

 
(0.1
)
Net income
62.6

 
72.4

 
45.3

 
(99.1
)
 
81.2

Less: Net income attributable to noncontrolling interests
—

 
—

 
(18.6
)
 
—

 
(18.6
)
Net income attributable to HealthSouth
$
62.6

 
$
72.4

 
$
26.7

 
$
(99.1
)
 
$
62.6

Comprehensive income
$
62.8

 
$
72.4

 
$
45.3

 
$
(99.1
)
 
$
81.4

Comprehensive income attributable to HealthSouth
$
62.8

 
$
72.4

 
$
26.7

 
$
(99.1
)
 
$
62.8

 
Three Months Ended June 30, 2015
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net operating revenues
$
5.1

 
$
460.0

 
$
325.0

 
$
(25.7
)
 
$
764.4

Less: Provision for doubtful accounts
—

 
(8.1
)
 
(2.8
)
 
—

 
(10.9
)
Net operating revenues less provision for doubtful accounts
5.1

 
451.9

 
322.2

 
(25.7
)
 
753.5

Operating expenses:
 

 
 

 
 

 
 

 
 
Salaries and benefits
12.2

 
212.1

 
181.7

 
(4.2
)
 
401.8

Other operating expenses
6.7

 
67.0

 
40.7

 
(10.2
)
 
104.2

Occupancy costs
1.0

 
15.8

 
7.0

 
(11.3
)
 
12.5

Supplies
—

 
20.7

 
11.0

 
—

 
31.7

General and administrative expenses
31.5

 
—

 
0.6

 
—

 
32.1

Depreciation and amortization
2.4

 
19.4

 
10.9

 
—

 
32.7

Professional fees—accounting, tax, and legal
0.1

 
—

 
—

 
—

 
0.1

Total operating expenses
53.9

 
335.0

 
251.9

 
(25.7
)
 
615.1

Loss on early extinguishment of debt
18.8

 
—

 
—

 
—

 
18.8

Interest expense and amortization of debt discounts and fees
28.4

 
2.1

 
2.9

 
(2.5
)
 
30.9

Other income
(4.8
)
 
(0.1
)
 
(0.6
)
 
2.5

 
(3.0
)
Equity in net income of nonconsolidated affiliates
—

 
(2.3
)
 
—

 
—

 
(2.3
)
Equity in net income of consolidated affiliates
(81.7
)
 
(8.8
)
 
—

 
90.5

 
—

Management fees
(29.3
)
 
21.8

 
7.5

 
—

 
—

Income from continuing operations before income tax (benefit) expense
19.8

 
104.2

 
60.5

 
(90.5
)
 
94.0

Provision for income tax (benefit) expense
(24.7
)
 
39.7

 
17.2

 
—

 
32.2

Income from continuing operations
44.5

 
64.5

 
43.3

 
(90.5
)
 
61.8

Loss from discontinued operations, net of tax
(1.6
)
 
—

 
—

 
—

 
(1.6
)
Net income
42.9

 
64.5

 
43.3

 
(90.5
)
 
60.2

Less: Net income attributable to noncontrolling interests
—

 
—

 
(17.3
)
 
—

 
(17.3
)
Net income attributable to HealthSouth
$
42.9

 
$
64.5

 
$
26.0

 
$
(90.5
)
 
$
42.9

Comprehensive income
$
43.0

 
$
64.5

 
$
43.3

 
$
(90.5
)
 
$
60.3

Comprehensive income attributable to HealthSouth
$
43.0

 
$
64.5

 
$
26.0

 
$
(90.5
)
 
$
43.0

 
Six Months Ended June 30, 2016
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net operating revenues
$
10.0

 
$
1,088.5

 
$
790.3

 
$
(58.3
)
 
$
1,830.5

Less: Provision for doubtful accounts
—

 
(22.4
)
 
(9.5
)
 
—

 
(31.9
)
Net operating revenues less provision for doubtful accounts
10.0

 
1,066.1

 
780.8

 
(58.3
)
 
1,798.6

Operating expenses:
 

 
 

 
 

 
 

 
 
Salaries and benefits
22.3

 
500.0

 
459.1

 
(9.2
)
 
972.2

Other operating expenses
12.5

 
152.6

 
98.1

 
(22.5
)
 
240.7

Occupancy costs
1.8

 
44.8

 
15.9

 
(26.6
)
 
35.9

Supplies
—

 
45.2

 
24.2

 
—

 
69.4

General and administrative expenses
64.3

 
—

 
2.0

 
—

 
66.3

Depreciation and amortization
4.8

 
51.8

 
28.7

 
—

 
85.3

Professional fees—accounting, tax, and legal
1.9

 
—

 
—

 
—

 
1.9

Total operating expenses
107.6

 
794.4

 
628.0

 
(58.3
)
 
1,471.7

Loss on early extinguishment of debt
4.8

 
—

 
—

 
—

 
4.8

Interest expense and amortization of debt discounts and fees
75.4

 
10.9

 
11.4

 
(9.7
)
 
88.0

Other income
(9.6
)
 
(0.2
)
 
(1.2
)
 
9.7

 
(1.3
)
Equity in net income of nonconsolidated affiliates
—

 
(4.4
)
 
(0.4
)
 
—

 
(4.8
)
Equity in net income of consolidated affiliates
(174.4
)
 
(19.9
)
 
—

 
194.3

 
—

Management fees
(68.0
)
 
51.7

 
16.3

 
—

 
—

Income from continuing operations before income tax (benefit) expense
74.2

 
233.6

 
126.7

 
(194.3
)
 
240.2

Provision for income tax (benefit) expense
(46.6
)
 
93.2

 
35.5

 
—

 
82.1

Income from continuing operations
120.8

 
140.4

 
91.2

 
(194.3
)
 
158.1

Loss from discontinued operations, net of tax
(0.2
)
 
—

 
—

 
—

 
(0.2
)
Net income
120.6

 
140.4

 
91.2

 
(194.3
)
 
157.9

Less: Net income attributable to noncontrolling interests
—

 
—

 
(37.3
)
 
—

 
(37.3
)
Net income attributable to HealthSouth
$
120.6

 
$
140.4

 
$
53.9

 
$
(194.3
)
 
$
120.6

Comprehensive income
$
120.9

 
$
140.4

 
$
91.2

 
$
(194.3
)
 
$
158.2

Comprehensive income attributable to HealthSouth
$
120.9

 
$
140.4

 
$
53.9

 
$
(194.3
)
 
$
120.9

 
Six Months Ended June 30, 2015
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net operating revenues
$
10.4

 
$
907.7

 
$
637.3

 
$
(50.4
)
 
$
1,505.0

Less: Provision for doubtful accounts
—

 
(17.0
)
 
(5.5
)
 
—

 
(22.5
)
Net operating revenues less provision for doubtful accounts
10.4

 
890.7

 
631.8

 
(50.4
)
 
1,482.5

Operating expenses:
 
 
 
 
 
 
 
 
 
Salaries and benefits
20.3

 
418.2

 
356.7

 
(8.3
)
 
786.9

Other operating expenses
16.2

 
128.7

 
83.1

 
(20.6
)
 
207.4

Occupancy costs
2.1

 
30.4

 
13.6

 
(21.5
)
 
24.6

Supplies
—

 
41.1

 
22.0

 
—

 
63.1

General and administrative expenses
65.8

 
—

 
0.9

 
—

 
66.7

Depreciation and amortization
4.7

 
38.3

 
21.6

 
—

 
64.6

Government, class action, and related settlements
8.0

 
—

 
—

 
—

 
8.0

Professional fees—accounting, tax, and legal
2.3

 
—

 
—

 
—

 
2.3

Total operating expenses
119.4

 
656.7

 
497.9

 
(50.4
)
 
1,223.6

Loss on early extinguishment of debt
20.0

 
—

 
—

 
—

 
20.0

Interest expense and amortization of debt discounts and fees
57.6

 
4.4

 
5.6

 
(4.9
)
 
62.7

Other income
(7.1
)
 
(0.1
)
 
(1.2
)
 
4.9

 
(3.5
)
Equity in net income of nonconsolidated affiliates
—

 
(3.9
)
 
—

 
—

 
(3.9
)
Equity in net income of consolidated affiliates
(160.1
)
 
(17.4
)
 
—

 
177.5

 
—

Management fees
(57.8
)
 
43.1

 
14.7

 
—

 
—

Income from continuing operations before income tax (benefit) expense
38.4

 
207.9

 
114.8

 
(177.5
)
 
183.6

Provision for income tax (benefit) expense
(48.9
)
 
79.1

 
32.3

 
—

 
62.5

Income from continuing operations
87.3

 
128.8

 
82.5

 
(177.5
)
 
121.1

Loss from discontinued operations, net of tax
(1.9
)
 
—

 
—

 
—

 
(1.9
)
Net income
85.4

 
128.8

 
82.5

 
(177.5
)
 
119.2

Less: Net income attributable to noncontrolling interests
—

 
—

 
(33.8
)
 
—

 
(33.8
)
Net income attributable to HealthSouth
$
85.4

 
$
128.8

 
$
48.7

 
$
(177.5
)
 
$
85.4

Comprehensive income
$
85.6

 
$
128.8

 
$
82.5

 
$
(177.5
)
 
$
119.4

Comprehensive income attributable to HealthSouth
$
85.6

 
$
128.8

 
$
48.7

 
$
(177.5
)
 
$
85.6

 
As of June 30, 2016
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
56.5

 
$
2.4

 
$
11.4

 
$
—

 
$
70.3

Accounts receivable, net
—

 
262.0

 
158.6

 
—

 
420.6

Other current assets
67.3

 
23.1

 
138.2

 
(60.0
)
 
168.6

Total current assets
123.8

 
287.5

 
308.2

 
(60.0
)
 
659.5

Property and equipment, net
21.1

 
987.8

 
328.0

 
—

 
1,336.9

Goodwill
—

 
860.6

 
1,039.1

 
—

 
1,899.7

Intangible assets, net
15.2

 
119.0

 
280.0

 
—

 
414.2

Deferred income tax assets
99.5

 
64.1

 
—

 
(48.1
)
 
115.5

Other long-term assets
49.2

 
88.6

 
69.0

 
—

 
206.8

Intercompany notes receivable
537.3

 
—

 
—

 
(537.3
)
 
—

Intercompany receivable and investments in consolidated affiliates
2,809.9

 
13.8

 
—

 
(2,823.7
)
 
—

Total assets
$
3,656.0

 
$
2,421.4

 
$
2,024.3

 
$
(3,469.1
)
 
$
4,632.6

Liabilities and Shareholders’ Equity
 

 
 

 
 

 
 

 


Current liabilities:
 

 
 

 
 

 
 

 


Current portion of long-term debt
$
40.0

 
$
6.3

 
$
7.7

 
$
(17.5
)
 
$
36.5

Accounts payable
5.6

 
39.7

 
21.8

 
—

 
67.1

Accrued expenses and other current liabilities
153.7

 
92.7

 
151.6

 
(42.5
)
 
355.5

Total current liabilities
199.3

 
138.7

 
181.1

 
(60.0
)
 
459.1

Long-term debt, net of current portion
2,743.2

 
252.4

 
54.4

 
—

 
3,050.0

Intercompany notes payable
—

 
—

 
537.3

 
(537.3
)
 
—

Other long-term liabilities
40.8

 
14.6

 
146.5

 
(47.8
)
 
154.1

Intercompany payable
—

 
—

 
176.3

 
(176.3
)
 
—

 
2,983.3

 
405.7

 
1,095.6

 
(821.4
)
 
3,663.2

Commitments and contingencies


 


 


 


 


Redeemable noncontrolling interests
—

 
—

 
120.0

 
—

 
120.0

Shareholders’ equity:
 

 
 

 
 

 
 

 


HealthSouth shareholders’ equity
672.7

 
2,015.7

 
632.0

 
(2,647.7
)
 
672.7

Noncontrolling interests
—

 
—

 
176.7

 
—

 
176.7

Total shareholders’ equity
672.7

 
2,015.7

 
808.7

 
(2,647.7
)
 
849.4

Total liabilities and shareholders’ equity
$
3,656.0

 
$
2,421.4

 
$
2,024.3

 
$
(3,469.1
)
 
$
4,632.6


 
As of December 31, 2015
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
41.2

 
$
1.2

 
$
19.2

 
$
—

 
$
61.6

Accounts receivable, net
—

 
261.5

 
149.0

 
—

 
410.5

Other current assets
29.3

 
22.2

 
93.9

 
(18.8
)
 
126.6

Total current assets
70.5

 
284.9

 
262.1

 
(18.8
)
 
598.7

Property and equipment, net
14.5

 
988.4

 
307.2

 
—

 
1,310.1

Goodwill
—

 
860.7

 
1,029.4

 
—

 
1,890.1

Intangible assets, net
8.8

 
122.4

 
288.2

 
—

 
419.4

Deferred income tax assets
176.2

 
64.1

 
—

 
(49.5
)
 
190.8

Other long-term assets
48.6

 
75.3

 
73.1

 
—

 
197.0

Intercompany notes receivable
546.6

 
—

 
—

 
(546.6
)
 
—

Intercompany receivable and investments in consolidated affiliates
2,779.7

 
—

 
—

 
(2,779.7
)
 
—

Total assets
$
3,644.9

 
$
2,395.8

 
$
1,960.0

 
$
(3,394.6
)
 
$
4,606.1

Liabilities and Shareholders’ Equity
 

 
 

 
 

 
 

 


Current liabilities:
 

 
 

 
 

 
 

 


Current portion of long-term debt
$
40.0

 
$
6.8

 
$
7.5

 
$
(17.5
)
 
$
36.8

Accounts payable
5.8

 
35.4

 
20.4

 
—

 
61.6

Accrued expenses and other current liabilities
122.2

 
71.8

 
135.3

 
(1.3
)
 
328.0

Total current liabilities
168.0

 
114.0


163.2


(18.8
)
 
426.4

Long-term debt, net of current portion
2,821.9

 
255.6

 
57.2

 
—

 
3,134.7

Intercompany notes payable
—

 
—

 
546.6

 
(546.6
)
 
—

Other long-term liabilities
43.6

 
12.3

 
137.8

 
(49.1
)
 
144.6

Intercompany payable
—

 
156.7

 
157.5

 
(314.2
)
 
—

 
3,033.5

 
538.6


1,062.3


(928.7
)
 
3,705.7

Commitments and contingencies


 


 


 


 


Redeemable noncontrolling interests
—

 
—

 
121.1

 
—

 
121.1

Shareholders’ equity:
 

 
 

 
 

 
 

 


HealthSouth shareholders’ equity
611.4

 
1,857.2

 
608.7

 
(2,465.9
)
 
611.4

Noncontrolling interests
—

 
—

 
167.9

 
—

 
167.9

Total shareholders’ equity
611.4

 
1,857.2


776.6


(2,465.9
)
 
779.3

Total liabilities and shareholders’ equity
$
3,644.9

 
$
2,395.8


$
1,960.0


$
(3,394.6
)
 
$
4,606.1

 
Six Months Ended June 30, 2016
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net cash provided by operating activities
$
31.5

 
$
182.5

 
$
97.9

 
$
—

 
$
311.9

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Purchases of property and equipment
(5.4
)
 
(35.3
)
 
(30.7
)
 
—

 
(71.4
)
Capitalized software costs
(7.6
)
 
(6.0
)
 
(1.6
)
 
—

 
(15.2
)
Acquisitions of businesses, net of cash acquired
—

 
—

 
(9.4
)
 
—

 
(9.4
)
Net change in restricted cash
—

 
—

 
(11.5
)
 
—

 
(11.5
)
Funding of intercompany note receivable
(6.5
)
 
—

 
—

 
6.5

 
—

Proceeds from repayment of intercompany note receivable
22.0

 
—

 
—

 
(22.0
)
 
—

Other
(2.8
)
 
(0.1
)
 
4.9

 
—

 
2.0

Net cash used in investing activities
(0.3
)
 
(41.4
)

(48.3
)

(15.5
)
 
(105.5
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 


Principal payments on debt, including pre-payments
(111.2
)
 
(0.8
)
 
(0.8
)
 
—

 
(112.8
)
Principal borrowings on intercompany note payable
—

 
—

 
6.5

 
(6.5
)
 
—

Principal payments on intercompany note payable
—

 
—

 
(22.0
)
 
22.0

 
—

Borrowings on revolving credit facility
165.0

 
—

 
—

 
—

 
165.0

Payments on revolving credit facility
(145.0
)
 
—

 
—

 
—

 
(145.0
)
Repurchases of common stock, including fees and expenses
(24.1
)
 
—

 
—

 
—

 
(24.1
)
Dividends paid on common stock
(41.9
)
 
—

 
—

 
—

 
(41.9
)
Distributions paid to noncontrolling interests of consolidated affiliates
—

 
—

 
(33.6
)
 
—

 
(33.6
)
Other
2.2

 
(2.9
)
 
(4.6
)
 
—

 
(5.3
)
Change in intercompany advances
139.1

 
(136.2
)
 
(2.9
)
 
—

 
—

Net cash used in financing activities
(15.9
)
 
(139.9
)

(57.4
)

15.5

 
(197.7
)
Increase (decrease) in cash and cash equivalents
15.3

 
1.2


(7.8
)

—

 
8.7

Cash and cash equivalents at beginning of period
41.2

 
1.2

 
19.2

 
—

 
61.6

Cash and cash equivalents at end of period
$
56.5

 
$
2.4


$
11.4


$
—

 
$
70.3


 
Six Months Ended June 30, 2015
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net cash (used in) provided by operating activities
$
(13.5
)
 
$
120.9

 
$
97.5

 
$
—

 
$
204.9

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Purchases of property and equipment
(5.1
)
 
(24.2
)
 
(17.0
)
 
—

 
(46.3
)
Capitalized software costs
(13.9
)
 
—

 
(1.3
)
 
—

 
(15.2
)
Acquisitions of businesses, net of cash acquired
(56.5
)
 
—

 
(21.2
)
 
—

 
(77.7
)
Net change in restricted cash
—

 
—

 
13.1

 
—

 
13.1

Other
7.7

 
3.3

 
(5.6
)
 
(6.0
)
 
(0.6
)
Net cash used in investing activities
(67.8
)
 
(20.9
)
 
(32.0
)
 
(6.0
)
 
(126.7
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 


Proceeds from bond issuance
700.0

 
—

 
—

 
—

 
700.0

Principal payments on debt, including pre-payments
(545.0
)
 
(0.8
)
 
(0.3
)
 
—

 
(546.1
)
Borrowings on revolving credit facility
270.0

 
—

 
—

 
—

 
270.0

Payments on revolving credit facility
(442.0
)
 
—

 
—

 
—

 
(442.0
)
Debt amendment and issuance costs
(13.9
)
 
—

 
—

 
—

 
(13.9
)
Dividends paid on common stock
(37.1
)
 
—

 
—

 
—

 
(37.1
)
Dividends paid on convertible perpetual preferred stock
(3.1
)
 
—

 
—

 
—

 
(3.1
)
Distributions paid to noncontrolling interests of consolidated affiliates
—

 
—

 
(26.2
)
 
—

 
(26.2
)
Other
1.7

 
(0.8
)
 
(7.9
)
 
6.0

 
(1.0
)
Change in intercompany advances
138.6

 
(98.6
)
 
(40.0
)
 
—

 
—

Net cash provided by (used in) financing activities
69.2

 
(100.2
)
 
(74.4
)
 
6.0

 
(99.4
)
Decrease in cash and cash equivalents
(12.1
)
 
(0.2
)
 
(8.9
)
 
—

 
(21.2
)
Cash and cash equivalents at beginning of period
41.9

 
1.4

 
23.4

 
—

 
66.7

Cash and cash equivalents at end of period
$
29.8

 
$
1.2

 
$
14.5

 
$
—

 
$
45.5

Basis of Presentation (Policies)
Variable Interest Entities Policy 
Variable Interest Entities—
Effective January 1, 2016, in connection with our adoption of ASU 2015-02, we updated our evaluation of all jointly held legal entities to determine whether they are now variable interest entities (“VIEs”) under the new guidance. Any entity considered a VIE is evaluated to determine which party is the primary beneficiary and thus should consolidate the VIE. This analysis is complex, involves uncertainties, and requires significant judgment on various matters. In order to determine if we are the primary beneficiary of a VIE, we must determine what activities most significantly impact the economic performance of the entity, whether we have the power to direct those activities, and if our obligation to absorb losses or receive benefits from the VIE could potentially be significant to the VIE.
Net Operating Revenues Policy 
Net Operating Revenues—
We derived consolidated Net operating revenues from the following payor sources:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Medicare
74.7
%
 
74.5
%
 
75.1
%
 
74.7
%
Medicare Advantage
8.1
%
 
7.7
%
 
7.9
%
 
8.0
%
Managed care
10.0
%
 
10.1
%
 
9.8
%
 
10.0
%
Medicaid
3.2
%
 
3.1
%
 
3.3
%
 
2.9
%
Other third-party payors
1.4
%
 
1.8
%
 
1.4
%
 
1.6
%
Workers’ compensation
0.7
%
 
0.9
%
 
0.8
%
 
0.9
%
Patients
0.5
%
 
0.6
%
 
0.5
%
 
0.6
%
Other income
1.4
%
 
1.3
%
 
1.2
%
 
1.3
%
Total
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%


Inpatient Rehabilitation Revenues
Our inpatient rehabilitation segment derived its Net operating revenues from the following payor sources:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Medicare
73.1
%
 
72.7
%
 
73.3
%
 
73.1
%
Medicare Advantage
7.8
%
 
7.8
%
 
7.7
%
 
8.1
%
Managed care
11.5
%
 
11.4
%
 
11.2
%
 
11.3
%
Medicaid
2.9
%
 
2.6
%
 
3.0
%
 
2.3
%
Other third-party payors
1.7
%
 
2.1
%
 
1.7
%
 
1.9
%
Workers’ compensation
0.8
%
 
1.1
%
 
1.0
%
 
1.1
%
Patients
0.6
%
 
0.7
%
 
0.6
%
 
0.7
%
Other income
1.6
%
 
1.6
%
 
1.5
%
 
1.5
%
Total
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%

Home Health and Hospice Revenues
Our home health and hospice segment derived its Net operating revenues from the following payor sources:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Medicare
82.3
%
 
83.9
%
 
82.9
%
 
83.8
%
Medicare Advantage
9.0
%
 
7.2
%
 
8.9
%
 
7.3
%
Managed care
3.7
%
 
2.9
%
 
3.2
%
 
3.0
%
Medicaid
4.8
%
 
5.8
%
 
4.8
%
 
5.7
%
Other third-party payors
—
%
 
0.1
%
 
—
%
 
0.1
%
Patients
0.1
%
 
0.1
%
 
0.1
%
 
0.1
%
Other income
0.1
%
 
—
%
 
0.1
%
 
—
%
Total
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%

See Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements accompanying the 2015 Form 10-K for our policies related to Net operating revenues, Accounts receivable, and our Allowance for doubtful accounts.
Recent Accounting Pronouncements Policy 
Recent Accounting Pronouncements—
In February 2015, the FASB issued ASU 2015-02, “Consolidations (Topic 810) - Amendments to the Consolidation Analysis,” which provides guidance on evaluating whether a reporting entity should consolidate certain legal entities. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are VIEs. Under this analysis, limited partnerships and other similar entities will be considered a VIE unless the limited partners hold substantive kick-out rights or participating rights. Further, the amendments eliminate the presumption that a general partner should consolidate a limited partnership under the voting interest model, as well as affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This standard was effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. We elected to adopt this guidance using the modified retrospective approach. Our adoption of this guidance resulted in certain limited partnership-like entities that were previously consolidated as voting interest entities to now be consolidated as VIEs, for which additional disclosures are required. Our adoption of ASU 2015-02 did not have a material impact on our financial position, results of operations, or cash flows. See Note 3, Variable Interest Entities.
In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” in order to increase transparency and comparability by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new standard, lessees will recognize a right-of-use asset and a corresponding lease liability for all leases other than leases that meet the definition of a short-term lease. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in an expense pattern similar to current capital leases. Classification will be based on criteria that are similar to those applied in current lease accounting. This standard will be effective for HealthSouth for the annual reporting period beginning after December 15, 2018. Early adoption is permitted. We continue to review the requirements of this standard and any potential impact it may have on our financial position, results of operations, or cash flows.
In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting (Topic 718),” to simplify various aspects of share-based payment accounting and presentation. The new standard requires entities to record all of the tax effects related to share-based payments at settlement (or expiration) through the income statement. This will require us to reclassify tax benefits in excess of compensation cost (“windfalls”) and tax deficiencies (“shortfalls”) to the extent of previous windfalls from Capital in excess of par value to Provision for income tax expense. This change is required to be applied prospectively to all excess tax benefits and tax deficiencies resulting from settlements after the date of adoption of the ASU. The standard eliminates the requirement to delay recognition of a windfall tax benefit until it reduces current taxes payable. This change is required to be applied on a modified retrospective basis, with a cumulative-effect adjustment to opening retained earnings. In addition, all income tax-related cash flows resulting from share-based payments are required to be reported as operating activities on the statement of cash flows as opposed to the current presentation as an inflow from financing activities and an outflow from operating activities. Either prospective or retrospective transition of this provision is permitted. Finally, the standard clarifies that all cash payments made to taxing authorities on the employees’ behalf for withheld shares should be presented as financing activities on the statement of cash flows. This change will be applied retrospectively. For HealthSouth, this guidance is effective for annual reporting periods beginning after December 15, 2016 and interim periods within that reporting period. Early adoption is permitted, with any adjustments reflected as of the beginning of the fiscal year of adoption. We continue to review the requirements of this standard and any potential impact it may have on our financial position, results of operations, or cash flows.
Basis of Presentation (Tables)
Concentration of Net Operating Revenues by Payor 
We derived consolidated Net operating revenues from the following payor sources:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Medicare
74.7
%
 
74.5
%
 
75.1
%
 
74.7
%
Medicare Advantage
8.1
%
 
7.7
%
 
7.9
%
 
8.0
%
Managed care
10.0
%
 
10.1
%
 
9.8
%
 
10.0
%
Medicaid
3.2
%
 
3.1
%
 
3.3
%
 
2.9
%
Other third-party payors
1.4
%
 
1.8
%
 
1.4
%
 
1.6
%
Workers’ compensation
0.7
%
 
0.9
%
 
0.8
%
 
0.9
%
Patients
0.5
%
 
0.6
%
 
0.5
%
 
0.6
%
Other income
1.4
%
 
1.3
%
 
1.2
%
 
1.3
%
Total
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
Concentration of Net Operating Revenues by Payor 
Our inpatient rehabilitation segment derived its Net operating revenues from the following payor sources:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Medicare
73.1
%
 
72.7
%
 
73.3
%
 
73.1
%
Medicare Advantage
7.8
%
 
7.8
%
 
7.7
%
 
8.1
%
Managed care
11.5
%
 
11.4
%
 
11.2
%
 
11.3
%
Medicaid
2.9
%
 
2.6
%
 
3.0
%
 
2.3
%
Other third-party payors
1.7
%
 
2.1
%
 
1.7
%
 
1.9
%
Workers’ compensation
0.8
%
 
1.1
%
 
1.0
%
 
1.1
%
Patients
0.6
%
 
0.7
%
 
0.6
%
 
0.7
%
Other income
1.6
%
 
1.6
%
 
1.5
%
 
1.5
%
Total
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
Concentration of Net Operating Revenues by Payor 
Our home health and hospice segment derived its Net operating revenues from the following payor sources:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Medicare
82.3
%
 
83.9
%
 
82.9
%
 
83.8
%
Medicare Advantage
9.0
%
 
7.2
%
 
8.9
%
 
7.3
%
Managed care
3.7
%
 
2.9
%
 
3.2
%
 
3.0
%
Medicaid
4.8
%
 
5.8
%
 
4.8
%
 
5.7
%
Other third-party payors
—
%
 
0.1
%
 
—
%
 
0.1
%
Patients
0.1
%
 
0.1
%
 
0.1
%
 
0.1
%
Other income
0.1
%
 
—
%
 
0.1
%
 
—
%
Total
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
Business Combinations (Tables)
Summary of Actual and Pro Forma Results of Operations for Acquisitions 
The following table summarizes the results of operations of Hot Springs and Camellia from their respective dates of acquisition included in our consolidated results of operations and the unaudited pro forma results of operations of the combined entity had the date of the acquisitions been January 1, 2015 (in millions):
 
Net Operating Revenues
 
Net Income Attributable to HealthSouth
Acquired entities only: Actual from acquisition date to June 30, 2016
$
3.0

 
$
(0.8
)
Combined entity: Supplemental pro forma from 04/01/2016-06/30/2016
921.2

 
62.6

Combined entity: Supplemental pro forma from 04/01/2015-06/30/2015
766.9

 
43.0

Combined entity: Supplemental pro forma from 01/01/2016-06/30/2016
1,833.0

 
120.7

Combined entity: Supplemental pro forma from 01/01/2015-06/30/2015
1,510.1

 
85.8

Schedule of Assets Acquired and Liabilities Assumed at the Acquisition Date 
The fair value of the assets acquired at the acquisition date were as follows (in millions):
Property and equipment
$
5.1

Identifiable intangible asset:
 

Trade name (useful life of 20 years)
0.2

Goodwill
1.8

Total assets acquired
$
7.1

Schedule of Noncash or Part Noncash Acquisitions 
Information regarding the net cash paid for all inpatient rehabilitation acquisitions during each period presented is as follows (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Fair value of assets acquired
$
—

 
$
62.8

 
$
5.3

 
$
62.8

Goodwill
—

 
0.7

 
1.8

 
0.7

Fair value of liabilities assumed
—

 
(2.7
)
 
—

 
(2.7
)
Fair value of noncontrolling interest owned by joint venture partner
—

 
(4.2
)
 
(7.1
)
 
(4.2
)
Net cash paid for acquisition
$
—

 
$
56.6

 
$
—

 
$
56.6

Schedule of Assets Acquired and Liabilities Assumed at the Acquisition Date 
The fair value of the assets acquired and liabilities assumed at the acquisition date were as follows (in millions):
Identifiable intangible asset:
 

Noncompete agreements (useful lives of 5 years)
$
0.1

Certificate of need (useful life of 10 years)
1.0

Licenses (useful lives of 10 years)
0.3

Goodwill
8.1

Total assets acquired
9.5

Total liabilities assumed
(0.1
)
Net assets acquired
$
9.4

Schedule of Noncash or Part Noncash Acquisitions 
Information regarding the net cash paid for home health and hospice acquisitions during each period presented is as follows (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Fair value of assets acquired
$
1.4

 
$
7.1

 
$
1.4

 
$
8.4

Goodwill
8.1

 
6.8

 
8.1

 
12.8

Fair value of liabilities assumed
(0.1
)
 
(0.1
)
 
(0.1
)
 
(0.1
)
Net cash paid for acquisitions
$
9.4

 
$
13.8

 
$
9.4

 
$
21.1

Variable Interest Entities Variable Interest Entities (Tables)
Schedule of carrying amounts and classifications of VIE's assets and liabilities
The carrying amounts and classifications of the consolidated VIEs’ assets and liabilities, which are included in our consolidated balance sheet, are as follows (in millions):
 
June 30, 2016
Assets
 
Current assets:
 
Cash and cash equivalents
$
1.5

Accounts receivable, net of allowance for doubtful accounts
31.4

Other current assets
6.7

Total current assets
39.6

Property and equipment, net
132.6

Goodwill
73.5

Intangible assets, net
8.6

Other long-term assets
1.0

Total assets
$
255.3

Liabilities
 
Current liabilities:
 
Current portion of long-term debt
$
1.4

Accounts payable
8.5

Accrued expenses and other current liabilities
14.1

Total current liabilities
24.0

Long-term debt, net of current portion
30.6

Total liabilities
$
54.6

Investments in and Advances to Nonconsolidated Affiliates (Tables)
Schedule of Combined Results of Operations of Equity Method Affiliates
The following summarizes the combined results of operations of our equity method affiliates (on a 100% basis, in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Net operating revenues
$
10.9

 
$
8.9

 
$
22.1

 
$
17.1

Operating expenses
(5.8
)
 
(3.8
)
 
(12.1
)
 
(7.7
)
Income from continuing operations, net of tax
5.0

 
4.8

 
10.0

 
8.7

Net income
5.0

 
4.8

 
10.0

 
8.7

Long-term Debt (Tables)
Schedule of Outstanding Long-term Debt 
Our long-term debt outstanding consists of the following (in millions):
 
June 30, 2016
 
December 31, 2015
Credit Agreement—
 
 
 
Advances under revolving credit facility
$
150.0

 
$
130.0

Term loan facilities
432.3

 
443.3

Bonds payable—
 
 
 
7.75% Senior Notes due 2022
75.3

 
174.3

5.125% Senior Notes due 2023
294.9

 
294.6

5.75% Senior Notes due 2024
1,192.9

 
1,192.6

5.75% Senior Notes due 2025
343.6

 
343.4

2.00% Convertible Senior Subordinated Notes due 2043
270.7

 
265.9

Other notes payable
43.3

 
39.2

Capital lease obligations
283.5

 
288.2

 
3,086.5

 
3,171.5

Less: Current portion
(36.5
)
 
(36.8
)
Long-term debt, net of current portion
$
3,050.0

 
$
3,134.7

Schedule of Debt Maturities 
The following chart shows scheduled principal payments due on long-term debt for the next five years and thereafter (in millions):
 
Face Amount
 
Net Amount
July 1 through December 31, 2016
$
18.2

 
$
18.2

2017
36.8

 
36.8

2018
37.2

 
37.2

2019
40.1

 
40.0

2020
834.2

 
783.5

2021
10.7

 
10.7

Thereafter
2,179.4

 
2,160.1

Total
$
3,156.6

 
$
3,086.5

Redeemable Noncontrolling Interests (Tables)
Redeemable Noncontrolling Interest 
The following is a summary of the activity related to our Redeemable noncontrolling interests during the six months ended June 30, 2016 and 2015 (in millions):
 
Six Months Ended June 30,
 
2016
 
2015
Balance at beginning of period
$
121.1

 
$
84.7

Net income attributable to noncontrolling interests
7.5

 
6.4

Distributions declared
(4.3
)
 
(4.0
)
Change in fair value
(4.3
)
 
11.4

Balance at end of period
$
120.0

 
$
98.5

Reconciliation of Noncontrolling Interests 
The following table reconciles the net income attributable to nonredeemable Noncontrolling interests, as recorded in the shareholders’ equity section of the condensed consolidated balance sheets, and the net income attributable to Redeemable noncontrolling interests, as recorded in the mezzanine section of the condensed consolidated balance sheets, to the Net income attributable to noncontrolling interests presented in the condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2015 (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2016
 
2015
 
2016
 
2015
Net income attributable to nonredeemable noncontrolling interests
$
15.0

 
$
13.8

 
$
29.8

 
$
27.4

Net income attributable to redeemable noncontrolling interests
3.6

 
3.5

 
7.5

 
6.4

Net income attributable to noncontrolling interests
$
18.6

 
$
17.3

 
$
37.3

 
$
33.8

Fair Value Measurements (Tables)
Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis 
Our financial assets and liabilities that are measured at fair value on a recurring basis are as follows (in millions):
 
 
 
Fair Value Measurements at Reporting Date Using
As of June 30, 2016
Fair Value
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Valuation Technique (1)
Other current assets:
 
 
 
 
 
 
 
 
 
Current portion of restricted marketable securities
$
27.4

 
$
—

 
$
27.4

 
$
—

 
M
Other long-term assets:
 
 
 
 
 
 
 
 
 
Restricted marketable securities
29.9

 
—

 
29.9

 
—

 
M
Redeemable noncontrolling interests
120.0

 
—

 
—

 
120.0

 
I
As of December 31, 2015
 
 
 
 
 
 
 
 
 
Other current assets:
 
 
 
 
 
 
 
 
 
Current portion of restricted marketable securities
$
16.1

 
$
—

 
$
16.1

 
$
—

 
M
Other long-term assets:
 
 
 
 
 
 
 
 
 
Restricted marketable securities
40.1

 
—

 
40.1

 
—

 
M
Redeemable noncontrolling interests
121.1

 
—

 
—

 
121.1

 
I
(1) The three valuation techniques are: market approach (M), cost approach (C), and income approach (I).
Schedule of Carrying Amounts and Estimated Fair Values, Financial Instruments 
The carrying amounts and estimated fair values for all of our other financial instruments are presented in the following table (in millions):
 
As of June 30, 2016
 
As of December 31, 2015
 
Carrying Amount
 
Estimated Fair Value
 
Carrying Amount
 
Estimated Fair Value
Long-term debt:
 

 
 

 
 

 
 

Advances under revolving credit facility
$
150.0

 
$
150.0

 
$
130.0

 
$
130.0

Term loan facilities
432.3

 
433.8

 
443.3

 
445.0

7.75% Senior Notes due 2022
75.3

 
79.3

 
174.3

 
183.7

5.125% Senior Notes due 2023
294.9

 
297.8

 
294.6

 
288.0

5.75% Senior Notes due 2024
1,192.9

 
1,215.8

 
1,192.6

 
1,146.0

5.75% Senior Notes due 2025
343.6

 
350.0

 
343.4

 
332.5

2.00% Convertible Senior Subordinated Notes due 2043
270.7

 
372.4

 
265.9

 
345.0

Other notes payable
43.3

 
43.3

 
39.2

 
39.2

Financial commitments:
 
 
 
 
 
 
 
Letters of credit
—

 
35.0

 
—

 
34.2

Income Taxes (Tables)
Summary of Income Tax Contingencies
A reconciliation of the beginning and ending liability for unrecognized tax benefits is as follows (in millions):
 
Gross Unrecognized Income Tax Benefits
Balance at December 31, 2015
$
2.9

Gross amount of increases in unrecognized tax benefits related to prior periods
0.3

Gross amount of decreases in unrecognized tax benefits related to prior periods
(0.4
)
Gross amount of increases in unrecognized tax benefits related to current periods
0.1

Gross amount of decreases in unrecognized tax benefits related to current periods
(0.1
)
Balance at June 30, 2016
$
2.8

Earnings per Common Share (Tables)
Computation of Basic and Diluted Earnings Per Common Share 
The following table sets forth the computation of basic and diluted earnings per common share (in millions, except per share amounts):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Basic:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
81.3

 
$
61.8

 
$
158.1

 
$
121.1

Less: Net income attributable to noncontrolling interests included in continuing operations
(18.6
)
 
(17.3
)
 
(37.3
)
 
(33.8
)
Less: Income allocated to participating securities
(0.2
)
 
(0.3
)
 
(0.4
)
 
(0.6
)
Less: Convertible perpetual preferred stock dividends
—

 
—

 
—

 
(1.6
)
Income from continuing operations attributable to HealthSouth common shareholders
62.5

 
44.2

 
120.4

 
85.1

Loss from discontinued operations, net of tax, attributable to HealthSouth common shareholders
(0.1
)
 
(1.6
)
 
(0.2
)
 
(1.9
)
Net income attributable to HealthSouth common shareholders
$
62.4

 
$
42.6

 
$
120.2

 
$
83.2

Denominator:
 
 
 
 
 
 
 
Basic weighted average common shares outstanding
89.3

 
89.8

 
89.4

 
88.4

Basic earnings per share attributable to HealthSouth common shareholders:
 
 
 
 
 
 
 
Continuing operations
$
0.70

 
$
0.49

 
$
1.34

 
$
0.96

Discontinued operations
—

 
(0.02
)
 
—

 
(0.02
)
Net income
$
0.70

 
$
0.47

 
$
1.34

 
$
0.94

 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
Income from continuing operations
$
81.3

 
$
61.8

 
$
158.1

 
$
121.1

Less: Net income attributable to noncontrolling interests included in continuing operations
(18.6
)
 
(17.3
)
 
(37.3
)
 
(33.8
)
Add: Interest on convertible debt, net of tax
2.4

 
2.3

 
4.8

 
4.6

Income from continuing operations attributable to HealthSouth common shareholders
65.1

 
46.8

 
125.6

 
91.9

Loss from discontinued operations, net of tax, attributable to HealthSouth common shareholders
(0.1
)
 
(1.6
)
 
(0.2
)
 
(1.9
)
Net income attributable to HealthSouth common shareholders
$
65.0

 
$
45.2

 
$
125.4

 
$
90.0

Denominator:
 
 
 
 
 
 
 
Diluted weighted average common shares outstanding
99.4

 
101.5

 
99.4

 
101.3

Diluted earnings per share attributable to HealthSouth common shareholders:
 
 
 
 
 
 
 
Continuing operations
$
0.65

 
$
0.47

 
$
1.26

 
$
0.91

Discontinued operations
—

 
(0.02
)
 
—

 
(0.02
)
Net income
$
0.65

 
$
0.45

 
$
1.26

 
$
0.89

Reconciliation of Weighted Average Number of Shares Outstanding 
The following table sets forth the reconciliation between basic weighted average common shares outstanding and diluted weighted average common shares outstanding (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Basic weighted average common shares outstanding
89.3

 
89.8

 
89.4

 
88.4

Convertible perpetual preferred stock
—

 
0.8

 
—

 
2.0

Convertible senior subordinated notes
8.5

 
8.2

 
8.5

 
8.2

Restricted stock awards, dilutive stock options, restricted stock units, and common stock warrants
1.6

 
2.7

 
1.5

 
2.7

Diluted weighted average common shares outstanding
99.4

 
101.5

 
99.4

 
101.3

Segment Reporting Segment Reporting (Tables)
Schedule of Segment Reporting Information, by Segment [Table Text Block] 
Selected financial information for our reportable segments is as follows (in millions):
 
Inpatient Rehabilitation
 
Home Health and Hospice
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Net operating revenues
$
752.6

 
$
645.3

 
$
1,501.8

 
$
1,275.6

 
$
168.1

 
$
119.1

 
$
328.7

 
$
229.4

Less: Provision for doubtful accounts
(14.5
)
 
(10.2
)
 
(30.1
)
 
(21.2
)
 
(0.9
)
 
(0.7
)
 
(1.8
)
 
(1.3
)
Net operating revenues less provision for doubtful accounts
738.1

 
635.1

 
1,471.7

 
1,254.4

 
167.2

 
118.4

 
326.9

 
228.1

Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inpatient rehabilitation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits
366.1

 
317.6

 
736.0

 
624.0

 
—

 
—

 
—

 
—

Other operating expenses
106.8

 
93.5

 
211.6

 
188.7

 
—

 
—

 
—

 
—

Supplies
31.8

 
29.9

 
64.2

 
59.7

 
—

 
—

 
—

 
—

Occupancy costs
15.4

 
10.7

 
31.0

 
21.1

 
—

 
—

 
—

 
—

Home health and hospice:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of services sold (excluding depreciation and amortization)
—

 
—

 
—

 
—

 
81.6

 
56.7

 
160.0

 
110.1

Support and overhead costs
—

 
—

 
—

 
—

 
58.0

 
41.0

 
115.0

 
79.1

 
520.1

 
451.7

 
1,042.8

 
893.5

 
139.6

 
97.7

 
275.0

 
189.2

Other income
(0.7
)
 
(0.4
)
 
(1.3
)
 
(0.9
)
 
—

 
—

 
—

 
—

Equity in net income of nonconsolidated affiliates
(2.2
)
 
(2.3
)
 
(4.4
)
 
(3.9
)
 
(0.2
)
 
—

 
(0.4
)
 
—

Noncontrolling interests
16.8

 
15.6

 
33.6

 
30.8

 
1.8

 
1.7

 
3.7

 
3.0

Segment Adjusted EBITDA
$
204.1

 
$
170.5

 
$
401.0

 
$
334.9

 
$
26.0

 
$
19.0

 
$
48.6

 
$
35.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
$
47.4

 
$
33.1

 
$
86.1

 
$
59.4

 
$
1.9

 
$
1.9

 
$
2.4

 
$
2.2

Reconciliation of Assets from Segment to Consolidated [Table Text Block] 
 
Inpatient Rehabilitation
 
Home Health and Hospice
 
HealthSouth Consolidated
As of June 30, 2016
 
 
 
 
 
Total assets
$
3,612.4

 
$
1,091.5

 
$
4,632.6

Investments in and advances to nonconsolidated affiliates
10.8

 
2.8

 
13.6

As of December 31, 2015
 
 
 
 
 
Total assets
$
3,589.0

 
$
1,088.4

 
$
4,606.1

Investments in and advances to nonconsolidated affiliates
9.3

 
2.4

 
11.7

 
June 30, 2016
 
December 31, 2015
Total assets for reportable segments
$
4,703.9

 
$
4,677.4

Reclassification of deferred income tax liabilities to net deferred income tax assets
(71.3
)
 
(71.3
)
Total consolidated assets
$
4,632.6

 
$
4,606.1

Reconciliation of Segment Adjusted EBITDA to Income from Continuing Operations Before Income Tax Expense [Table Text Block] 
Segment reconciliations (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Total segment Adjusted EBITDA
$
230.1

 
$
189.5

 
$
449.6

 
$
370.8

General and administrative expenses
(34.4
)
 
(32.1
)
 
(66.3
)
 
(66.7
)
Depreciation and amortization
(42.9
)
 
(32.7
)
 
(85.3
)
 
(64.6
)
(Loss) gain on disposal or impairment of assets
(0.2
)
 
(0.8
)
 
(0.4
)
 
0.7

Government, class action, and related settlements
—

 
—

 
—

 
(8.0
)
Professional fees - accounting, tax, and legal
(1.7
)
 
(0.1
)
 
(1.9
)
 
(2.3
)
Loss on early extinguishment of debt
(2.4
)
 
(18.8
)
 
(4.8
)
 
(20.0
)
Interest expense and amortization of debt discounts and fees
(43.4
)
 
(30.9
)
 
(88.0
)
 
(62.7
)
Net income attributable to noncontrolling interests
18.6

 
17.3

 
37.3

 
33.8

Gain related to SCA equity interest
—

 
2.6

 
—

 
2.6

Income from continuing operations before income tax expense
$
123.7

 
$
94.0

 
$
240.2

 
$
183.6

Reconciliation of Revenue from Segments to Consolidated [Table Text Block] 
Additional detail regarding the revenues of our operating segments by service line follows (in millions):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Inpatient rehabilitation:
 
 
 
 
 
 
 
Inpatient
$
721.2

 
$
618.7

 
$
1,440.5

 
$
1,225.3

Outpatient and other
31.4

 
26.6

 
61.3

 
50.3

Total inpatient rehabilitation
752.6

 
645.3

 
1,501.8

 
1,275.6

Home health and hospice:
 
 
 
 
 
 
 
Home health
157.1

 
111.5

 
308.0

 
215.4

Hospice
11.0

 
7.6

 
20.7

 
14.0

Total home health and hospice
168.1

 
119.1

 
328.7

 
229.4

Total net operating revenues
$
920.7

 
$
764.4

 
$
1,830.5

 
$
1,505.0

Condensed Consolidating Financial Information (Tables)
Condensed Consolidating Statement of Operations 
 
Three Months Ended June 30, 2016
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net operating revenues
$
5.1

 
$
546.1

 
$
398.9

 
$
(29.4
)
 
$
920.7

Less: Provision for doubtful accounts
—

 
(10.6
)
 
(4.8
)
 
—

 
(15.4
)
Net operating revenues less provision for doubtful accounts
5.1

 
535.5

 
394.1

 
(29.4
)
 
905.3

Operating expenses:
 

 
 

 
 

 
 

 
 
Salaries and benefits
11.0

 
248.7

 
231.0

 
(4.6
)
 
486.1

Other operating expenses
6.9

 
76.7

 
49.4

 
(11.5
)
 
121.5

Occupancy costs
0.9

 
22.4

 
7.9

 
(13.3
)
 
17.9

Supplies
—

 
22.4

 
12.0

 
—

 
34.4

General and administrative expenses
31.2

 
—

 
3.2

 
—

 
34.4

Depreciation and amortization
2.4

 
25.9

 
14.6

 
—

 
42.9

Professional fees—accounting, tax, and legal
1.7

 
—

 
—

 
—

 
1.7

Total operating expenses
54.1

 
396.1

 
318.1

 
(29.4
)
 
738.9

Loss on early extinguishment of debt
2.4

 
—

 
—

 
—

 
2.4

Interest expense and amortization of debt discounts and fees
36.6

 
5.7

 
6.0

 
(4.9
)
 
43.4

Other income
(4.9
)
 
(0.1
)
 
(0.6
)
 
4.9

 
(0.7
)
Equity in net income of nonconsolidated affiliates
—

 
(2.2
)
 
(0.2
)
 
—

 
(2.4
)
Equity in net income of consolidated affiliates
(88.7
)
 
(10.4
)
 
—

 
99.1

 
—

Management fees
(33.8
)
 
25.9

 
7.9

 
—

 
—

Income from continuing operations before income tax (benefit) expense
39.4

 
120.5

 
62.9

 
(99.1
)
 
123.7

Provision for income tax (benefit) expense
(23.3
)
 
48.1

 
17.6

 
—

 
42.4

Income from continuing operations
62.7

 
72.4

 
45.3

 
(99.1
)
 
81.3

Loss from discontinued operations, net of tax
(0.1
)
 
—

 
—

 
—

 
(0.1
)
Net income
62.6

 
72.4

 
45.3

 
(99.1
)
 
81.2

Less: Net income attributable to noncontrolling interests
—

 
—

 
(18.6
)
 
—

 
(18.6
)
Net income attributable to HealthSouth
$
62.6

 
$
72.4

 
$
26.7

 
$
(99.1
)
 
$
62.6

Comprehensive income
$
62.8

 
$
72.4

 
$
45.3

 
$
(99.1
)
 
$
81.4

Comprehensive income attributable to HealthSouth
$
62.8

 
$
72.4

 
$
26.7

 
$
(99.1
)
 
$
62.8

 
Three Months Ended June 30, 2015
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net operating revenues
$
5.1

 
$
460.0

 
$
325.0

 
$
(25.7
)
 
$
764.4

Less: Provision for doubtful accounts
—

 
(8.1
)
 
(2.8
)
 
—

 
(10.9
)
Net operating revenues less provision for doubtful accounts
5.1

 
451.9

 
322.2

 
(25.7
)
 
753.5

Operating expenses:
 

 
 

 
 

 
 

 
 
Salaries and benefits
12.2

 
212.1

 
181.7

 
(4.2
)
 
401.8

Other operating expenses
6.7

 
67.0

 
40.7

 
(10.2
)
 
104.2

Occupancy costs
1.0

 
15.8

 
7.0

 
(11.3
)
 
12.5

Supplies
—

 
20.7

 
11.0

 
—

 
31.7

General and administrative expenses
31.5

 
—

 
0.6

 
—

 
32.1

Depreciation and amortization
2.4

 
19.4

 
10.9

 
—

 
32.7

Professional fees—accounting, tax, and legal
0.1

 
—

 
—

 
—

 
0.1

Total operating expenses
53.9

 
335.0

 
251.9

 
(25.7
)
 
615.1

Loss on early extinguishment of debt
18.8

 
—

 
—

 
—

 
18.8

Interest expense and amortization of debt discounts and fees
28.4

 
2.1

 
2.9

 
(2.5
)
 
30.9

Other income
(4.8
)
 
(0.1
)
 
(0.6
)
 
2.5

 
(3.0
)
Equity in net income of nonconsolidated affiliates
—

 
(2.3
)
 
—

 
—

 
(2.3
)
Equity in net income of consolidated affiliates
(81.7
)
 
(8.8
)
 
—

 
90.5

 
—

Management fees
(29.3
)
 
21.8

 
7.5

 
—

 
—

Income from continuing operations before income tax (benefit) expense
19.8

 
104.2

 
60.5

 
(90.5
)
 
94.0

Provision for income tax (benefit) expense
(24.7
)
 
39.7

 
17.2

 
—

 
32.2

Income from continuing operations
44.5

 
64.5

 
43.3

 
(90.5
)
 
61.8

Loss from discontinued operations, net of tax
(1.6
)
 
—

 
—

 
—

 
(1.6
)
Net income
42.9

 
64.5

 
43.3

 
(90.5
)
 
60.2

Less: Net income attributable to noncontrolling interests
—

 
—

 
(17.3
)
 
—

 
(17.3
)
Net income attributable to HealthSouth
$
42.9

 
$
64.5

 
$
26.0

 
$
(90.5
)
 
$
42.9

Comprehensive income
$
43.0

 
$
64.5

 
$
43.3

 
$
(90.5
)
 
$
60.3

Comprehensive income attributable to HealthSouth
$
43.0

 
$
64.5

 
$
26.0

 
$
(90.5
)
 
$
43.0

 
Six Months Ended June 30, 2016
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net operating revenues
$
10.0

 
$
1,088.5

 
$
790.3

 
$
(58.3
)
 
$
1,830.5

Less: Provision for doubtful accounts
—

 
(22.4
)
 
(9.5
)
 
—

 
(31.9
)
Net operating revenues less provision for doubtful accounts
10.0

 
1,066.1

 
780.8

 
(58.3
)
 
1,798.6

Operating expenses:
 

 
 

 
 

 
 

 
 
Salaries and benefits
22.3

 
500.0

 
459.1

 
(9.2
)
 
972.2

Other operating expenses
12.5

 
152.6

 
98.1

 
(22.5
)
 
240.7

Occupancy costs
1.8

 
44.8

 
15.9

 
(26.6
)
 
35.9

Supplies
—

 
45.2

 
24.2

 
—

 
69.4

General and administrative expenses
64.3

 
—

 
2.0

 
—

 
66.3

Depreciation and amortization
4.8

 
51.8

 
28.7

 
—

 
85.3

Professional fees—accounting, tax, and legal
1.9

 
—

 
—

 
—

 
1.9

Total operating expenses
107.6

 
794.4

 
628.0

 
(58.3
)
 
1,471.7

Loss on early extinguishment of debt
4.8

 
—

 
—

 
—

 
4.8

Interest expense and amortization of debt discounts and fees
75.4

 
10.9

 
11.4

 
(9.7
)
 
88.0

Other income
(9.6
)
 
(0.2
)
 
(1.2
)
 
9.7

 
(1.3
)
Equity in net income of nonconsolidated affiliates
—

 
(4.4
)
 
(0.4
)
 
—

 
(4.8
)
Equity in net income of consolidated affiliates
(174.4
)
 
(19.9
)
 
—

 
194.3

 
—

Management fees
(68.0
)
 
51.7

 
16.3

 
—

 
—

Income from continuing operations before income tax (benefit) expense
74.2

 
233.6

 
126.7

 
(194.3
)
 
240.2

Provision for income tax (benefit) expense
(46.6
)
 
93.2

 
35.5

 
—

 
82.1

Income from continuing operations
120.8

 
140.4

 
91.2

 
(194.3
)
 
158.1

Loss from discontinued operations, net of tax
(0.2
)
 
—

 
—

 
—

 
(0.2
)
Net income
120.6

 
140.4

 
91.2

 
(194.3
)
 
157.9

Less: Net income attributable to noncontrolling interests
—

 
—

 
(37.3
)
 
—

 
(37.3
)
Net income attributable to HealthSouth
$
120.6

 
$
140.4

 
$
53.9

 
$
(194.3
)
 
$
120.6

Comprehensive income
$
120.9

 
$
140.4

 
$
91.2

 
$
(194.3
)
 
$
158.2

Comprehensive income attributable to HealthSouth
$
120.9

 
$
140.4

 
$
53.9

 
$
(194.3
)
 
$
120.9

 
Six Months Ended June 30, 2015
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net operating revenues
$
10.4

 
$
907.7

 
$
637.3

 
$
(50.4
)
 
$
1,505.0

Less: Provision for doubtful accounts
—

 
(17.0
)
 
(5.5
)
 
—

 
(22.5
)
Net operating revenues less provision for doubtful accounts
10.4

 
890.7

 
631.8

 
(50.4
)
 
1,482.5

Operating expenses:
 
 
 
 
 
 
 
 
 
Salaries and benefits
20.3

 
418.2

 
356.7

 
(8.3
)
 
786.9

Other operating expenses
16.2

 
128.7

 
83.1

 
(20.6
)
 
207.4

Occupancy costs
2.1

 
30.4

 
13.6

 
(21.5
)
 
24.6

Supplies
—

 
41.1

 
22.0

 
—

 
63.1

General and administrative expenses
65.8

 
—

 
0.9

 
—

 
66.7

Depreciation and amortization
4.7

 
38.3

 
21.6

 
—

 
64.6

Government, class action, and related settlements
8.0

 
—

 
—

 
—

 
8.0

Professional fees—accounting, tax, and legal
2.3

 
—

 
—

 
—

 
2.3

Total operating expenses
119.4

 
656.7

 
497.9

 
(50.4
)
 
1,223.6

Loss on early extinguishment of debt
20.0

 
—

 
—

 
—

 
20.0

Interest expense and amortization of debt discounts and fees
57.6

 
4.4

 
5.6

 
(4.9
)
 
62.7

Other income
(7.1
)
 
(0.1
)
 
(1.2
)
 
4.9

 
(3.5
)
Equity in net income of nonconsolidated affiliates
—

 
(3.9
)
 
—

 
—

 
(3.9
)
Equity in net income of consolidated affiliates
(160.1
)
 
(17.4
)
 
—

 
177.5

 
—

Management fees
(57.8
)
 
43.1

 
14.7

 
—

 
—

Income from continuing operations before income tax (benefit) expense
38.4

 
207.9

 
114.8

 
(177.5
)
 
183.6

Provision for income tax (benefit) expense
(48.9
)
 
79.1

 
32.3

 
—

 
62.5

Income from continuing operations
87.3

 
128.8

 
82.5

 
(177.5
)
 
121.1

Loss from discontinued operations, net of tax
(1.9
)
 
—

 
—

 
—

 
(1.9
)
Net income
85.4

 
128.8

 
82.5

 
(177.5
)
 
119.2

Less: Net income attributable to noncontrolling interests
—

 
—

 
(33.8
)
 
—

 
(33.8
)
Net income attributable to HealthSouth
$
85.4

 
$
128.8

 
$
48.7

 
$
(177.5
)
 
$
85.4

Comprehensive income
$
85.6

 
$
128.8

 
$
82.5

 
$
(177.5
)
 
$
119.4

Comprehensive income attributable to HealthSouth
$
85.6

 
$
128.8

 
$
48.7

 
$
(177.5
)
 
$
85.6

Condensed Consolidating Balance Sheet 
 
As of June 30, 2016
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
56.5

 
$
2.4

 
$
11.4

 
$
—

 
$
70.3

Accounts receivable, net
—

 
262.0

 
158.6

 
—

 
420.6

Other current assets
67.3

 
23.1

 
138.2

 
(60.0
)
 
168.6

Total current assets
123.8

 
287.5

 
308.2

 
(60.0
)
 
659.5

Property and equipment, net
21.1

 
987.8

 
328.0

 
—

 
1,336.9

Goodwill
—

 
860.6

 
1,039.1

 
—

 
1,899.7

Intangible assets, net
15.2

 
119.0

 
280.0

 
—

 
414.2

Deferred income tax assets
99.5

 
64.1

 
—

 
(48.1
)
 
115.5

Other long-term assets
49.2

 
88.6

 
69.0

 
—

 
206.8

Intercompany notes receivable
537.3

 
—

 
—

 
(537.3
)
 
—

Intercompany receivable and investments in consolidated affiliates
2,809.9

 
13.8

 
—

 
(2,823.7
)
 
—

Total assets
$
3,656.0

 
$
2,421.4

 
$
2,024.3

 
$
(3,469.1
)
 
$
4,632.6

Liabilities and Shareholders’ Equity
 

 
 

 
 

 
 

 


Current liabilities:
 

 
 

 
 

 
 

 


Current portion of long-term debt
$
40.0

 
$
6.3

 
$
7.7

 
$
(17.5
)
 
$
36.5

Accounts payable
5.6

 
39.7

 
21.8

 
—

 
67.1

Accrued expenses and other current liabilities
153.7

 
92.7

 
151.6

 
(42.5
)
 
355.5

Total current liabilities
199.3

 
138.7

 
181.1

 
(60.0
)
 
459.1

Long-term debt, net of current portion
2,743.2

 
252.4

 
54.4

 
—

 
3,050.0

Intercompany notes payable
—

 
—

 
537.3

 
(537.3
)
 
—

Other long-term liabilities
40.8

 
14.6

 
146.5

 
(47.8
)
 
154.1

Intercompany payable
—

 
—

 
176.3

 
(176.3
)
 
—

 
2,983.3

 
405.7

 
1,095.6

 
(821.4
)
 
3,663.2

Commitments and contingencies


 


 


 


 


Redeemable noncontrolling interests
—

 
—

 
120.0

 
—

 
120.0

Shareholders’ equity:
 

 
 

 
 

 
 

 


HealthSouth shareholders’ equity
672.7

 
2,015.7

 
632.0

 
(2,647.7
)
 
672.7

Noncontrolling interests
—

 
—

 
176.7

 
—

 
176.7

Total shareholders’ equity
672.7

 
2,015.7

 
808.7

 
(2,647.7
)
 
849.4

Total liabilities and shareholders’ equity
$
3,656.0

 
$
2,421.4

 
$
2,024.3

 
$
(3,469.1
)
 
$
4,632.6


 
As of December 31, 2015
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
41.2

 
$
1.2

 
$
19.2

 
$
—

 
$
61.6

Accounts receivable, net
—

 
261.5

 
149.0

 
—

 
410.5

Other current assets
29.3

 
22.2

 
93.9

 
(18.8
)
 
126.6

Total current assets
70.5

 
284.9

 
262.1

 
(18.8
)
 
598.7

Property and equipment, net
14.5

 
988.4

 
307.2

 
—

 
1,310.1

Goodwill
—

 
860.7

 
1,029.4

 
—

 
1,890.1

Intangible assets, net
8.8

 
122.4

 
288.2

 
—

 
419.4

Deferred income tax assets
176.2

 
64.1

 
—

 
(49.5
)
 
190.8

Other long-term assets
48.6

 
75.3

 
73.1

 
—

 
197.0

Intercompany notes receivable
546.6

 
—

 
—

 
(546.6
)
 
—

Intercompany receivable and investments in consolidated affiliates
2,779.7

 
—

 
—

 
(2,779.7
)
 
—

Total assets
$
3,644.9

 
$
2,395.8

 
$
1,960.0

 
$
(3,394.6
)
 
$
4,606.1

Liabilities and Shareholders’ Equity
 

 
 

 
 

 
 

 


Current liabilities:
 

 
 

 
 

 
 

 


Current portion of long-term debt
$
40.0

 
$
6.8

 
$
7.5

 
$
(17.5
)
 
$
36.8

Accounts payable
5.8

 
35.4

 
20.4

 
—

 
61.6

Accrued expenses and other current liabilities
122.2

 
71.8

 
135.3

 
(1.3
)
 
328.0

Total current liabilities
168.0

 
114.0


163.2


(18.8
)
 
426.4

Long-term debt, net of current portion
2,821.9

 
255.6

 
57.2

 
—

 
3,134.7

Intercompany notes payable
—

 
—

 
546.6

 
(546.6
)
 
—

Other long-term liabilities
43.6

 
12.3

 
137.8

 
(49.1
)
 
144.6

Intercompany payable
—

 
156.7

 
157.5

 
(314.2
)
 
—

 
3,033.5

 
538.6


1,062.3


(928.7
)
 
3,705.7

Commitments and contingencies


 


 


 


 


Redeemable noncontrolling interests
—

 
—

 
121.1

 
—

 
121.1

Shareholders’ equity:
 

 
 

 
 

 
 

 


HealthSouth shareholders’ equity
611.4

 
1,857.2

 
608.7

 
(2,465.9
)
 
611.4

Noncontrolling interests
—

 
—

 
167.9

 
—

 
167.9

Total shareholders’ equity
611.4

 
1,857.2


776.6


(2,465.9
)
 
779.3

Total liabilities and shareholders’ equity
$
3,644.9

 
$
2,395.8


$
1,960.0


$
(3,394.6
)
 
$
4,606.1

Condensed Consolidating Statement of Cash Flows 
 
Six Months Ended June 30, 2016
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net cash provided by operating activities
$
31.5

 
$
182.5

 
$
97.9

 
$
—

 
$
311.9

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Purchases of property and equipment
(5.4
)
 
(35.3
)
 
(30.7
)
 
—

 
(71.4
)
Capitalized software costs
(7.6
)
 
(6.0
)
 
(1.6
)
 
—

 
(15.2
)
Acquisitions of businesses, net of cash acquired
—

 
—

 
(9.4
)
 
—

 
(9.4
)
Net change in restricted cash
—

 
—

 
(11.5
)
 
—

 
(11.5
)
Funding of intercompany note receivable
(6.5
)
 
—

 
—

 
6.5

 
—

Proceeds from repayment of intercompany note receivable
22.0

 
—

 
—

 
(22.0
)
 
—

Other
(2.8
)
 
(0.1
)
 
4.9

 
—

 
2.0

Net cash used in investing activities
(0.3
)
 
(41.4
)

(48.3
)

(15.5
)
 
(105.5
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 


Principal payments on debt, including pre-payments
(111.2
)
 
(0.8
)
 
(0.8
)
 
—

 
(112.8
)
Principal borrowings on intercompany note payable
—

 
—

 
6.5

 
(6.5
)
 
—

Principal payments on intercompany note payable
—

 
—

 
(22.0
)
 
22.0

 
—

Borrowings on revolving credit facility
165.0

 
—

 
—

 
—

 
165.0

Payments on revolving credit facility
(145.0
)
 
—

 
—

 
—

 
(145.0
)
Repurchases of common stock, including fees and expenses
(24.1
)
 
—

 
—

 
—

 
(24.1
)
Dividends paid on common stock
(41.9
)
 
—

 
—

 
—

 
(41.9
)
Distributions paid to noncontrolling interests of consolidated affiliates
—

 
—

 
(33.6
)
 
—

 
(33.6
)
Other
2.2

 
(2.9
)
 
(4.6
)
 
—

 
(5.3
)
Change in intercompany advances
139.1

 
(136.2
)
 
(2.9
)
 
—

 
—

Net cash used in financing activities
(15.9
)
 
(139.9
)

(57.4
)

15.5

 
(197.7
)
Increase (decrease) in cash and cash equivalents
15.3

 
1.2


(7.8
)

—

 
8.7

Cash and cash equivalents at beginning of period
41.2

 
1.2

 
19.2

 
—

 
61.6

Cash and cash equivalents at end of period
$
56.5

 
$
2.4


$
11.4


$
—

 
$
70.3


 
Six Months Ended June 30, 2015
 
HealthSouth Corporation
 
Guarantor Subsidiaries
 
Nonguarantor Subsidiaries
 
Eliminating Entries
 
HealthSouth Consolidated
 
(In Millions)
Net cash (used in) provided by operating activities
$
(13.5
)
 
$
120.9

 
$
97.5

 
$
—

 
$
204.9

Cash flows from investing activities:
 

 
 

 
 

 
 

 
 

Purchases of property and equipment
(5.1
)
 
(24.2
)
 
(17.0
)
 
—

 
(46.3
)
Capitalized software costs
(13.9
)
 
—

 
(1.3
)
 
—

 
(15.2
)
Acquisitions of businesses, net of cash acquired
(56.5
)
 
—

 
(21.2
)
 
—

 
(77.7
)
Net change in restricted cash
—

 
—

 
13.1

 
—

 
13.1

Other
7.7

 
3.3

 
(5.6
)
 
(6.0
)
 
(0.6
)
Net cash used in investing activities
(67.8
)
 
(20.9
)
 
(32.0
)
 
(6.0
)
 
(126.7
)
Cash flows from financing activities:
 

 
 

 
 

 
 

 


Proceeds from bond issuance
700.0

 
—

 
—

 
—

 
700.0

Principal payments on debt, including pre-payments
(545.0
)
 
(0.8
)
 
(0.3
)
 
—

 
(546.1
)
Borrowings on revolving credit facility
270.0

 
—

 
—

 
—

 
270.0

Payments on revolving credit facility
(442.0
)
 
—

 
—

 
—

 
(442.0
)
Debt amendment and issuance costs
(13.9
)
 
—

 
—

 
—

 
(13.9
)
Dividends paid on common stock
(37.1
)
 
—

 
—

 
—

 
(37.1
)
Dividends paid on convertible perpetual preferred stock
(3.1
)
 
—

 
—

 
—

 
(3.1
)
Distributions paid to noncontrolling interests of consolidated affiliates
—

 
—

 
(26.2
)
 
—

 
(26.2
)
Other
1.7

 
(0.8
)
 
(7.9
)
 
6.0

 
(1.0
)
Change in intercompany advances
138.6

 
(98.6
)
 
(40.0
)
 
—

 
—

Net cash provided by (used in) financing activities
69.2

 
(100.2
)
 
(74.4
)
 
6.0

 
(99.4
)
Decrease in cash and cash equivalents
(12.1
)
 
(0.2
)
 
(8.9
)
 
—

 
(21.2
)
Cash and cash equivalents at beginning of period
41.9

 
1.4

 
23.4

 
—

 
66.7

Cash and cash equivalents at end of period
$
29.8

 
$
1.2

 
$
14.5

 
$
—

 
$
45.5

Basis of Presentation - Table 1 (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Basis of Presentation [Abstract]
 
 
 
 
Medicare
74.70% 
74.50% 
75.10% 
74.70% 
Medicare Advantage
8.10% 
7.70% 
7.90% 
8.00% 
Managed care
10.00% 
10.10% 
9.80% 
10.00% 
Medicaid
3.20% 
3.10% 
3.30% 
2.90% 
Other third-party payors
1.40% 
1.80% 
1.40% 
1.60% 
Workers’ compensation
0.70% 
0.90% 
0.80% 
0.90% 
Patients
0.50% 
0.60% 
0.50% 
0.60% 
Other income
1.40% 
1.30% 
1.20% 
1.30% 
Total
100.00% 
100.00% 
100.00% 
100.00% 
Basis of Presentation Basis of Presentation - Table 2 (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
 
 
 
 
Medicare
74.70% 
74.50% 
75.10% 
74.70% 
Medicare Advantage
8.10% 
7.70% 
7.90% 
8.00% 
Managed care
10.00% 
10.10% 
9.80% 
10.00% 
Medicaid
3.20% 
3.10% 
3.30% 
2.90% 
Other third-party payors
1.40% 
1.80% 
1.40% 
1.60% 
Workers’ compensation
0.70% 
0.90% 
0.80% 
0.90% 
Patients
0.50% 
0.60% 
0.50% 
0.60% 
Other income
1.40% 
1.30% 
1.20% 
1.30% 
Total
100.00% 
100.00% 
100.00% 
100.00% 
Inpatient Rehabilitation Hospital [Member]
 
 
 
 
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
 
 
 
 
Medicare
73.10% 
72.70% 
73.30% 
73.10% 
Medicare Advantage
7.80% 
7.80% 
7.70% 
8.10% 
Managed care
11.50% 
11.40% 
11.20% 
11.30% 
Medicaid
2.90% 
2.60% 
3.00% 
2.30% 
Other third-party payors
1.70% 
2.10% 
1.70% 
1.90% 
Workers’ compensation
0.80% 
1.10% 
1.00% 
1.10% 
Patients
0.60% 
0.70% 
0.60% 
0.70% 
Other income
1.60% 
1.60% 
1.50% 
1.50% 
Total
100.00% 
100.00% 
100.00% 
100.00% 
Basis of Presentation Basis of Presentation - Table 3 (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
 
 
 
 
Medicare
74.70% 
74.50% 
75.10% 
74.70% 
Medicare Advantage
8.10% 
7.70% 
7.90% 
8.00% 
Managed care
10.00% 
10.10% 
9.80% 
10.00% 
Medicaid
3.20% 
3.10% 
3.30% 
2.90% 
Other third-party payors
1.40% 
1.80% 
1.40% 
1.60% 
Patients
0.50% 
0.60% 
0.50% 
0.60% 
Other income
1.40% 
1.30% 
1.20% 
1.30% 
Total
100.00% 
100.00% 
100.00% 
100.00% 
Home Health and Hospice [Member]
 
 
 
 
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
 
 
 
 
Medicare
82.30% 
83.90% 
82.90% 
83.80% 
Medicare Advantage
9.00% 
7.20% 
8.90% 
7.30% 
Managed care
3.70% 
2.90% 
3.20% 
3.00% 
Medicaid
4.80% 
5.80% 
4.80% 
5.70% 
Other third-party payors
0.00% 
0.10% 
0.00% 
0.10% 
Patients
0.10% 
0.10% 
0.10% 
0.10% 
Other income
0.10% 
0.00% 
0.10% 
0.00% 
Total
100.00% 
100.00% 
100.00% 
100.00% 
Business Combinations - Table 1 (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Feb. 1, 2016
Inpatient Rehabilitation Hospital [Member]
Feb. 1, 2016
Inpatient Rehabilitation Hospital [Member]
Trade Names [Member]
Business Acquisition [Line Items]
 
 
 
 
Property and equipment
 
 
$ 5.1 
 
Identifiable intangible assets
 
 
 
0.2 
Goodwill
1,899.7 
1,890.1 
1.8 
 
Total assets acquired
 
 
$ 7.1 
 
Business Combinations - Table 2 (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended 6 Months Ended
Feb. 29, 2016
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Net Cash Paid For All Acquisitions During Each Period Presented
 
 
 
 
 
Net cash paid for acquisition
 
 
 
$ 9.4 
$ 77.7 
Inpatient Rehabilitation Hospital [Member]
 
 
 
 
 
Net Cash Paid For All Acquisitions During Each Period Presented
 
 
 
 
 
Fair value of assets acquired
 
0 
62.8 
5.3 
62.8 
Goodwill
1.8 
0 
0.7 
1.8 
0.7 
Fair value of liabilities assumed
 
0 
(2.7)
0 
(2.7)
Fair value of noncontrolling interests owned by joint venture partner
 
0 
(4.2)
(7.1)
(4.2)
Net cash paid for acquisition
 
$ 0 
$ 56.6 
$ 0 
$ 56.6 
Business Combinations Business Combinations - Table 3 (Details) (Home Health and Hospice [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended 6 Months Ended
May 1, 2016
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
May 1, 2016
Business Acquisition [Line Items]
 
 
 
 
 
 
Goodwill
$ 8.1 
$ 8.1 
$ 6.8 
$ 8.1 
$ 12.8 
 
Total assets acquired
 
 
 
 
 
9.5 
Total liabilities assumed
 
 
 
 
 
(0.1)
Net assets acquired
 
 
 
 
 
9.4 
Noncompete Agreements [Member]
 
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
 
Identifiable intangible assets
0.1 
 
 
 
 
0.1 
Certificate of Need [Member]
 
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
 
Identifiable intangible assets
1.0 
 
 
 
 
1.0 
License [Member]
 
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
 
Identifiable intangible assets
$ 0.3 
 
 
 
 
$ 0.3 
Business Combinations Business Combinations - Table 4 (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended 6 Months Ended
May 1, 2016
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Business Acquisition [Line Items]
 
 
 
 
 
Net cash paid for acquisition
 
 
 
$ 9.4 
$ 77.7 
Home Health and Hospice [Member]
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
Fair value of assets acquired
 
1.4 
7.1 
1.4 
8.4 
Goodwill
8.1 
8.1 
6.8 
8.1 
12.8 
Fair value of liabilities assumed
 
(0.1)
(0.1)
(0.1)
(0.1)
Net cash paid for acquisition
 
$ 9.4 
$ 13.8 
$ 9.4 
$ 21.1 
Business Combinations - Table 5 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 5 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2016
Jun. 30, 2015
Summary of Actual and Pro Forma Results of Operations for Acquisitions
 
 
 
 
 
Acquired entity only: Actual from acquisition date to June 30, 2016, Net Operating Revenues
 
 
$ 3.0 
 
 
Acquired entities only: Actual from acquisition date to June 30, 2016, Net Income Attributable to HealthSouth
 
 
(0.8)
 
 
Combined entity: Supplemental pro forma, Net Operating Revenues
921.2 
766.9 
 
1,833.0 
1,510.1 
Combined entity: Supplemental pro forma, Net Income Attributable to HealthSouth
$ 62.6 
$ 43.0 
 
$ 120.7 
$ 85.8 
Business Combinations - Textual (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended 6 Months Ended 0 Months Ended 3 Months Ended 6 Months Ended 6 Months Ended
Feb. 29, 2016
Inpatient Rehabilitation Hospital [Member]
Jun. 30, 2016
Inpatient Rehabilitation Hospital [Member]
Jun. 30, 2015
Inpatient Rehabilitation Hospital [Member]
Jun. 30, 2016
Inpatient Rehabilitation Hospital [Member]
Jun. 30, 2015
Inpatient Rehabilitation Hospital [Member]
Feb. 1, 2016
Inpatient Rehabilitation Hospital [Member]
May 1, 2016
Home Health and Hospice [Member]
Jun. 30, 2016
Home Health and Hospice [Member]
Jun. 30, 2015
Home Health and Hospice [Member]
Jun. 30, 2016
Home Health and Hospice [Member]
Jun. 30, 2015
Home Health and Hospice [Member]
May 1, 2016
Home Health and Hospice [Member]
Jun. 30, 2016
Noncompete Agreements [Member]
Home Health and Hospice [Member]
Jun. 30, 2016
Trade Names [Member]
Inpatient Rehabilitation Hospital [Member]
Jun. 30, 2016
Certificate of Need [Member]
Home Health and Hospice [Member]
Jun. 30, 2016
License [Member]
Home Health and Hospice [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
20 years 
10 years 
10 years 
Business Acquisition (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling Interest, Ownership Percentage by Parent
 
 
 
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
Number of Beds Acquired
 
 
 
 
 
20 
 
 
 
 
 
 
 
 
 
 
Goodwill, Acquired During Period
$ 1.8 
$ 0 
$ 0.7 
$ 1.8 
$ 0.7 
 
$ 8.1 
$ 8.1 
$ 6.8 
$ 8.1 
$ 12.8 
 
 
 
 
 
Business Acquisition, Goodwill, Expected Tax Deductible Amount
 
 
 
 
 
$ 0 
 
 
 
 
 
$ 8.1 
 
 
 
 
Variable Interest Entities Variable Interest Entities - Table 1 (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
Dec. 31, 2014
Variable Interest Entity [Line Items]
 
 
 
 
Cash and cash equivalents
$ 70.3 
$ 61.6 
$ 45.5 
$ 66.7 
Accounts receivable, net
420.6 
410.5 
 
 
Other current assets
168.6 
126.6 
 
 
Total current assets
659.5 
598.7 
 
 
Property and equipment, net
1,336.9 
1,310.1 
 
 
Goodwill
1,899.7 
1,890.1 
 
 
Intangible assets, net
414.2 
419.4 
 
 
Other long-term assets
206.8 
197.0 
 
 
Total assets
4,632.6 1
4,606.1 
 
 
Current portion of long-term debt
36.5 
36.8 
 
 
Accounts payable
67.1 
61.6 
 
 
Accrued expenses and other current liabilities
355.5 
328.0 
 
 
Total current liabilities
459.1 
426.4 
 
 
Long-term debt, net of current portion
3,050.0 
3,134.7 
 
 
Total Liabilities
3,663.2 
3,705.7 
 
 
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member]
 
 
 
 
Variable Interest Entity [Line Items]
 
 
 
 
Cash and cash equivalents
1.5 
 
 
 
Accounts receivable, net
31.4 
 
 
 
Other current assets
6.7 
 
 
 
Total current assets
39.6 
 
 
 
Property and equipment, net
132.6 
 
 
 
Goodwill
73.5 
 
 
 
Intangible assets, net
8.6 
 
 
 
Other long-term assets
1.0 
 
 
 
Total assets
255.3 
 
 
 
Current portion of long-term debt
1.4 
 
 
 
Accounts payable
8.5 
 
 
 
Accrued expenses and other current liabilities
14.1 
 
 
 
Total current liabilities
24.0 
 
 
 
Long-term debt, net of current portion
30.6 
 
 
 
Total Liabilities
$ 54.6 
 
 
 
Variable Interest Entities Variable Interest Entities - Textual (Details)
6 Months Ended
Jun. 30, 2016
facilities
Variable Interest Entity [Line Items]
 
Number of Facilities Consolidated As Variable Interest Entities
10 
Minimum [Member]
 
Variable Interest Entity [Line Items]
 
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage
6.80% 
Maximum [Member]
 
Variable Interest Entity [Line Items]
 
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage
99.50% 
Investments In and Advances to Nonconsolidated Affiliates - Table 1 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract]
 
 
 
 
Net operating revenues
$ 10.9 
$ 8.9 
$ 22.1 
$ 17.1 
Operating expenses
(5.8)
(3.8)
(12.1)
(7.7)
Income from continuing operations, net of tax
5.0 
4.8 
10.0 
8.7 
Net income
$ 5.0 
$ 4.8 
$ 10.0 
$ 8.7 
Investments in and Advances to Nonconsolidated Affiliates - Textual (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
facilities
Dec. 31, 2015
Investments In and Advances to Nonconsolidated Affiliates (Textual) [Abstract]
 
 
Investments In and Advances To Nonconsolidated Affiliates
$ 13.6 
$ 11.7 
Number of Partially Owned Subsidiaries, Nonconsolidated
7 
 
Number of General or Limited Partnerships, Limited Liability Companies, or Joint Ventures, Nonconsolidated
6 
 
Minimum [Member]
 
 
Investments In and Advances to Nonconsolidated Affiliates (Textual) [Abstract]
 
 
Nonconsolidated Affiliates, Ownership Percentage
1.00% 
 
Maximum [Member]
 
 
Investments In and Advances to Nonconsolidated Affiliates (Textual) [Abstract]
 
 
Nonconsolidated Affiliates, Ownership Percentage
60.00% 
 
Long-term Debt - Table 1 (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Schedule of Outstanding Long-term Debt
 
 
Advances under revolving credit facility
$ 150.0 
$ 130.0 
Other notes payable
43.3 
39.2 
Capital lease obligations
283.5 
288.2 
Total debt and capital lease obligations
3,086.5 
3,171.5 
Less: Current portion
(36.5)
(36.8)
Long-term debt, net of current portion
3,050.0 
3,134.7 
Term Loan Facilities [Member]
 
 
Schedule of Outstanding Long-term Debt
 
 
Term loan facilities
432.3 
443.3 
7.75% Senior Notes Due 2022 [Member]
 
 
Schedule of Outstanding Long-term Debt
 
 
Senior Notes
75.3 
174.3 
5.125% Senior Notes Due 2023 [Member]
 
 
Schedule of Outstanding Long-term Debt
 
 
Senior Notes
294.9 
294.6 
5.75% Senior Notes Due 2024 [Member]
 
 
Schedule of Outstanding Long-term Debt
 
 
Senior Notes
1,192.9 
1,192.6 
5.75% Senior Notes Due 2025 [Member]
 
 
Schedule of Outstanding Long-term Debt
 
 
Senior Notes
343.6 
343.4 
2.00% Convertible Senior Subordinated Notes due 2043 [Member]
 
 
Schedule of Outstanding Long-term Debt
 
 
Convertible Subordinated Debt
$ 270.7 
$ 265.9 
Long-term Debt - Table 2 (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Long-term Debt by Maturity
 
 
Total debt and capital lease obligations
$ 3,086.5 
$ 3,171.5 
Face Amount [Member]
 
 
Long-term Debt by Maturity
 
 
July1 through December 31, 2016
18.2 
 
2017
36.8 
 
2018
37.2 
 
2019
40.1 
 
2020
834.2 
 
2021
10.7 
 
Thereafter
2,179.4 
 
Total debt and capital lease obligations
3,156.6 
 
Net Amount [Member]
 
 
Long-term Debt by Maturity
 
 
July1 through December 31, 2016
18.2 
 
2017
36.8 
 
2018
37.2 
 
2019
40.0 
 
2020
783.5 
 
2021
10.7 
 
Thereafter
2,160.1 
 
Total debt and capital lease obligations
$ 3,086.5 
 
Long-term Debt - Textual (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 0 Months Ended 0 Months Ended 3 Months Ended 1 Months Ended
Jun. 30, 2016
Mar. 31, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
May 6, 2016
7.75% Senior Notes Due 2022 [Member]
Mar. 24, 2016
7.75% Senior Notes Due 2022 [Member]
Jun. 30, 2016
7.75% Senior Notes Due 2022 [Member]
May 6, 2016
7.75% Senior Notes Due 2022 [Member]
Apr. 6, 2016
7.75% Senior Notes Due 2022 [Member]
Mar. 24, 2016
7.75% Senior Notes Due 2022 [Member]
Feb. 23, 2016
7.75% Senior Notes Due 2022 [Member]
Jul. 28, 2016
7.75% Senior Notes Due 2022 [Member]
Subsequent Event [Member]
Jun. 30, 2016
5.125% Senior Notes Due 2023 [Member]
Jun. 30, 2016
5.75% Senior Notes Due 2024 [Member]
Jun. 30, 2016
5.75% Senior Notes Due 2025 [Member]
Jun. 30, 2016
2.00% Convertible Senior Subordinated Notes due 2043 [Member]
Sep. 15, 2016
Scenario, Forecast [Member]
Sep. 30, 2016
Scenario, Forecast [Member]
Feb. 29, 2016
Corporate Office
Jun. 30, 2016
Corporate Office
Feb. 25, 2016
Corporate Office
Jun. 30, 2018
Corporate Office
Scenario, Forecast [Member]
Long Term Debt (Textual) [ Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes, Portion of Principal Extinguished
 
 
 
 
 
 
 
 
 
 
$ 50 
 
$ 50 
 
 
 
 
 
 
 
 
 
 
 
Senior Note, redemption price
 
 
 
 
 
 
 
 
 
103.875% 
 
103.875% 
 
102.583% 
 
 
 
 
 
 
 
 
 
 
Repayments of Long-term Debt
 
 
 
112.8 
546.1 
 
52.0 
52.0 
 
 
 
 
 
 
 
 
 
 
78.0 
 
 
 
 
 
Loss on early extinguishment of debt
2.0 
2.4 
18.8 
4.8 
20.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.0 
 
 
 
 
Senior Notes, Principal Extinguished
 
 
 
 
 
 
 
 
 
 
 
 
 
76.0 
 
 
 
 
 
 
 
 
 
 
Lessee Leasing Arrangements, Operating Leases, Term of Contract
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15 years 
 
 
 
Number of renewal options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 
 
Lessee Leasing Arrangements, Operating Leases, Renewal Term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
 
 
 
Construction in Progress, Increase
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.8 
 
 
Other notes payable
43.3 
 
 
43.3 
 
39.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.8 
 
 
Financing Obligation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 56 
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
 
 
 
 
 
7.75% 
 
 
 
 
 
5.125% 
5.75% 
5.75% 
2.00% 
 
 
 
 
 
 
Redeemable Noncontrolling Interests - Table 1 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Redeemable Noncontrolling Interest [Line Items]
 
 
 
 
Balance at beginning of period
 
 
$ 121.1 
 
Net Income attributable to noncontrolling interest
3.6 
3.5 
7.5 
6.4 
Distributions declared
 
 
(29.9)
(23.4)
Change in fair value
 
 
2.8 
(6.8)
Balance at end of period
120.0 
 
120.0 
 
Altoona, Jonesboro, and Encompass [Member]
 
 
 
 
Redeemable Noncontrolling Interest [Line Items]
 
 
 
 
Balance at beginning of period
 
 
121.1 
84.7 
Net Income attributable to noncontrolling interest
 
 
7.5 
6.4 
Balance at end of period
120.0 
98.5 
120.0 
98.5 
Altoona and Jonesboro [Member]
 
 
 
 
Redeemable Noncontrolling Interest [Line Items]
 
 
 
 
Distributions declared
 
 
(4.3)
(4.0)
Encompass [Member]
 
 
 
 
Redeemable Noncontrolling Interest [Line Items]
 
 
 
 
Change in fair value
 
 
$ (4.3)
$ 11.4 
Redeemable Noncontrolling Interests - Table 2 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Redeemable Noncontrolling Interest [Line Items]
 
 
 
 
Net income attributable to nonredeemable noncontrolling interest
$ 15.0 
$ 13.8 
$ 29.8 
$ 27.4 
Net income attributable to redeemable noncontrolling interest
3.6 
3.5 
7.5 
6.4 
Net income attributable to noncontrolling interests
$ 18.6 
$ 17.3 
$ 37.3 
$ 33.8 
Fair Value Measurements - Table 1 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Dec. 31, 2015
Jun. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
 
 
Redeemable Noncontrolling Interest, Fair Value
$ 121.1 
$ 120.0 
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
 
 
Redeemable Noncontrolling Interest, Fair Value
0 
0 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
 
 
Redeemable Noncontrolling Interest, Fair Value
0 
0 
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
 
 
Redeemable Noncontrolling Interest, Fair Value
121.1 
120.0 
Other Current Assets [Member] |
Restricted Marketable Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
 
 
Marketable Securities, Fair Value
16.1 
27.4 
Fair Value Measurements, Valuation Techniques
M 
M 
Other Current Assets [Member] |
Restricted Marketable Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
 
 
Marketable Securities, Fair Value
0 
0 
Other Current Assets [Member] |
Restricted Marketable Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
 
 
Marketable Securities, Fair Value
16.1 
27.4 
Other Current Assets [Member] |
Restricted Marketable Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
 
 
Marketable Securities, Fair Value
0 
0 
Other Long-term Assets [Member] |
Restricted Marketable Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
 
 
Marketable Securities, Fair Value
40.1 
29.9 
Fair Value Measurements, Valuation Techniques
M 
M 
Other Long-term Assets [Member] |
Restricted Marketable Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
 
 
Marketable Securities, Fair Value
0 
0 
Other Long-term Assets [Member] |
Restricted Marketable Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
 
 
Marketable Securities, Fair Value
40.1 
29.9 
Other Long-term Assets [Member] |
Restricted Marketable Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
 
 
Marketable Securities, Fair Value
$ 0 
$ 0 
Redeemable Noncontrolling Interest [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract]
 
 
Fair Value Measurements, Valuation Techniques
I 
I 
Fair Value Measurements - Table 2 (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Advances under revolving credit facility
$ 150.0 
$ 130.0 
Other notes payable
43.3 
39.2 
Revolving Credit Facility [Member] |
Carrying Amount [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Advances under revolving credit facility
150.0 
130.0 
Revolving Credit Facility [Member] |
Estimated Fair Value [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Advances under revolving credit facility, Fair Value
150.0 
130.0 
Term Loan Facilities [Member] |
Carrying Amount [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Term loan facilities
432.3 
443.3 
Term Loan Facilities [Member] |
Estimated Fair Value [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Term loan facilities, Fair Value
433.8 
445.0 
7.75% Senior Notes due 2022 [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Senior Notes
75.3 
174.3 
7.75% Senior Notes due 2022 [Member] |
Carrying Amount [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Senior Notes
75.3 
174.3 
7.75% Senior Notes due 2022 [Member] |
Estimated Fair Value [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Senior Notes, Fair Value
79.3 
183.7 
5.125% Senior Notes Due 2023 [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Senior Notes
294.9 
294.6 
5.125% Senior Notes Due 2023 [Member] |
Carrying Amount [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Senior Notes
294.9 
294.6 
5.125% Senior Notes Due 2023 [Member] |
Estimated Fair Value [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Senior Notes, Fair Value
297.8 
288.0 
5.75% Senior Notes Due 2024 [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Senior Notes
1,192.9 
1,192.6 
5.75% Senior Notes Due 2024 [Member] |
Carrying Amount [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Senior Notes
1,192.9 
1,192.6 
5.75% Senior Notes Due 2024 [Member] |
Estimated Fair Value [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Senior Notes, Fair Value
1,215.8 
1,146.0 
5.75% Senior Notes Due 2025 [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Senior Notes
343.6 
343.4 
5.75% Senior Notes Due 2025 [Member] |
Carrying Amount [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Senior Notes
343.6 
343.4 
5.75% Senior Notes Due 2025 [Member] |
Estimated Fair Value [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Senior Notes, Fair Value
350.0 
332.5 
2.00% Convertible Senior Subordinated Notes due 2043 [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Convertible Subordinated Debt
270.7 
265.9 
2.00% Convertible Senior Subordinated Notes due 2043 [Member] |
Carrying Amount [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Convertible Subordinated Debt
270.7 
265.9 
2.00% Convertible Senior Subordinated Notes due 2043 [Member] |
Estimated Fair Value [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Convertible Debt, Fair Value
372.4 
345.0 
Other Notes Payable [Member] |
Carrying Amount [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Other notes payable
43.3 
39.2 
Other Notes Payable [Member] |
Estimated Fair Value [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Other Notes Payable, Fair Value
43.3 
39.2 
Letters of Credit [Member] |
Carrying Amount [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Letters of Credit
0 
0 
Letters of Credit [Member] |
Estimated Fair Value [Member]
 
 
Carrying Amounts and Estimated Fair Values, Financial Instruments [Abstract]
 
 
Letters of Credit, Fair Value
$ 35.0 
$ 34.2 
Fair Value Measurements Fair Value Measurements - Textuals (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Fair Value, Measurements, Nonrecurring [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Fair Value, Option, Changes in Fair Value, Gain (Loss)
$ 0 
$ 0 
$ 0 
$ 0 
Share-Based Payments - Textual (Details)
In Millions, unless otherwise specified
1 Months Ended 6 Months Ended
Feb. 29, 2016
Jun. 30, 2016
Restricted Stock [Member]
 
 
Share-based Compensation (Textual) [Abstract]
 
 
Restricted Stock Awards Issued
0.8 
0.8 
Restricted Stock Awards Issued, Service Requirement Only
 
0.2 
Stock Options [Member]
 
 
Share-based Compensation (Textual) [Abstract]
 
 
Stock Options Granted
0.1 
 
Income Taxes - Table (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Gross Unrecognized Income Tax Benefits [Abstract]
 
Unrecognized Tax Benefits, Beginning Balance
$ 2.9 
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions
0.3 
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions
(0.4)
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions
0.1 
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions
(0.1)
Unrecognized Tax Benefits, Ending Balance
$ 2.8 
Income Taxes - Textual (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Income Tax Contingency [Line Items]
 
 
 
 
 
Provision for income tax expense
$ 42.4 
$ 32.2 
$ 82.1 
$ 62.5 
 
Net Deferred Tax Assets, Total
115.5 
 
115.5 
 
 
Deferred Tax Assets, Valuation Allowance
27.6 
 
27.6 
 
 
Gross Operating Loss Carryforwards
72 
 
72 
 
 
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense
 
 
15.5 
 
 
Gross Unrecognized Tax Benefits
2.8 
 
2.8 
 
2.9 
Unrecognized Tax Benefits that Would Impact Effective Tax Rate
2.8 
 
2.8 
 
2.9 
Federal
 
 
 
 
 
Income Tax Contingency [Line Items]
 
 
 
 
 
Deferred Tax Assets, Net Operating Loss Carryforwards
25.1 
 
25.1 
 
 
Tax Credit Carryforward, Amount
15.8 
 
15.8 
 
 
Minimum [Member]
 
 
 
 
 
Income Tax Contingency [Line Items]
 
 
 
 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit
0.4 
 
0.4 
 
 
Maximum [Member]
 
 
 
 
 
Income Tax Contingency [Line Items]
 
 
 
 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit
$ 2.6 
 
$ 2.6 
 
 
Earnings per Common Share - Table 1 (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Numerator:
 
 
 
 
Income from continuing operations
$ 81.3 
$ 61.8 
$ 158.1 
$ 121.1 
Less: Net income attributable to noncontrolling interests included in continuing operations
(18.6)
(17.3)
(37.3)
(33.8)
Less: Income allocated to participating securities
(0.2)
(0.3)
(0.4)
(0.6)
Less: Convertible perpetual preferred stock dividends
0 
0 
0 
(1.6)
Income from continuing operations attributable to HealthSouth common shareholders
62.5 
44.2 
120.4 
85.1 
Loss from discontinued operations, net of tax
(0.1)
(1.6)
(0.2)
(1.9)
Net income attributable to HealthSouth common shareholders
62.4 
42.6 
120.2 
83.2 
Denominator:
 
 
 
 
Basic weighted average common shares outstanding
89.3 
89.8 
89.4 
88.4 
Basic earnings per share attributable to HealthSouth common shareholders:
 
 
 
 
Continuing operations
$ 0.70 
$ 0.49 
$ 1.34 
$ 0.96 
Discontinued operations
$ 0.00 
$ (0.02)
$ 0.00 
$ (0.02)
Net Income
$ 0.70 
$ 0.47 
$ 1.34 
$ 0.94 
Numerator
 
 
 
 
Income from continuing operations
81.3 
61.8 
158.1 
121.1 
Less: Net income attributable to noncontrolling interests included in continuing operations
(18.6)
(17.3)
(37.3)
(33.8)
Add: Interest on convertible debt, net of tax
2.4 
2.3 
4.8 
4.6 
Income from continuing operations attributable to HealthSouth common shareholders
65.1 
46.8 
125.6 
91.9 
Loss from discontinued operations, net of tax
(0.1)
(1.6)
(0.2)
(1.9)
Net income attributable to HealthSouth common shareholders
$ 65.0 
$ 45.2 
$ 125.4 
$ 90.0 
Denominator
 
 
 
 
Diluted weighted average common shares outstanding
99.4 
101.5 
99.4 
101.3 
Diluted earnings per share attributable to HealthSouth common shareholders:
 
 
 
 
Continuing operations
$ 0.65 
$ 0.47 
$ 1.26 
$ 0.91 
Discontinued operations
$ 0.00 
$ (0.02)
$ 0.00 
$ (0.02)
Net Income
$ 0.65 
$ 0.45 
$ 1.26 
$ 0.89 
Earnings per Common Share - Table 2 (Details)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Earnings Per Share [Abstract]
 
 
 
 
Basic weighted average common shares outstanding
89.3 
89.8 
89.4 
88.4 
Convertible perpetual preferred stock
0 
0.8 
0 
2.0 
Convertible senior subordinated notes
8.5 
8.2 
8.5 
8.2 
Restricted stock awards, dilutive stock options, restricted stock units, and common stock warrants
1.6 
2.7 
1.5 
2.7 
Diluted weighted average common shares outstanding
99.4 
101.5 
99.4 
101.3 
Earnings per Common Share - Textual (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended 0 Months Ended 1 Months Ended 6 Months Ended 0 Months Ended 1 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Oct. 23, 2015
Common Stock
May 31, 2016
Common Stock
Apr. 30, 2016
Common Stock
Feb. 29, 2016
Common Stock
Jan. 31, 2016
Common Stock
Jun. 30, 2016
Common Stock
Dec. 31, 2015
Common Stock
Apr. 23, 2015
Common Stock
Apr. 23, 2015
Convertible Preferred Stock [Member]
Apr. 22, 2015
Convertible Preferred Stock [Member]
Jun. 30, 2016
2.00% Convertible Senior Subordinated Notes due 2043 [Member]
Jul. 21, 2016
Subsequent Event [Member]
Common Stock
Jul. 31, 2016
Subsequent Event [Member]
Common Stock
Jul. 1, 2016
Subsequent Event [Member]
2.00% Convertible Senior Subordinated Notes due 2043 [Member]
Earnings per Common Share (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends per common share, Declared
$ 0.23 
$ 0.21 
$ 0.46 
$ 0.42 
$ 0.23 
$ 0.23 
 
$ 0.23 
 
 
 
 
 
 
 
$ 0.24 
 
 
Cash dividends per common share, Paid
 
 
 
 
 
 
$ 0.23 
 
$ 0.23 
 
 
 
 
 
 
 
$ 0.23 
 
Dividends Payable, Current
 
 
 
 
 
 
 
 
 
$ 21.3 
$ 21.3 
 
 
 
 
 
 
 
Preferred Stock, Par or Stated Value Per Share
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.10 
 
 
 
 
Temporary Equity, Liquidation Preference Per Share
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,000 
 
 
 
 
Convertible Preferred Stock, Conversion Price
 
 
 
 
 
 
 
 
 
 
 
$ 33.9905 
 
 
 
 
 
 
Common Stock, Par or Stated Value Per Share
 
 
 
 
 
 
 
 
 
 
 
$ 0.01 
 
 
 
 
 
 
Convertible Preferred Stock, Shares Issued upon Conversion
 
 
 
 
 
 
 
 
 
 
 
3,271,415 
 
 
 
 
 
 
Temporary Equity, Shares Outstanding
 
 
 
 
 
 
 
 
 
 
 
 
96,245 
 
 
 
 
 
Debt Instrument, Convertible, Conversion Price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 39.65 
 
 
$ 37.59 
Debt Instrument, Convertible, Terms of Conversion Feature
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25.2194 shares per $1,000 principal amount 
 
 
 
Debt Instrument, Convertible, Shares Issued Upon Conversion
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
26.6011 
Contingencies and Other Commitments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 0 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
May 18, 2016
Honts lawsuit [Member]
Jun. 30, 2016
Honts lawsuit [Member]
Jun. 30, 2016
Honts lawsuit [Member]
Jun. 30, 2016
HHS-OIG Investigation [Member]
Feb. 28, 2015
HHS-OIG Investigation [Member]
Apr. 24, 2014
HHS-OIG Investigation [Member]
Mar. 4, 2013
HHS-OIG Investigation [Member]
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Loss Contingency, Damages Awarded, Value
 
 
 
 
$ 20.0 
 
 
 
 
 
 
Loss Contingency Accrual
 
 
 
 
 
21.0 
21.0 
 
 
 
 
Accrued Professional Fees
 
 
 
 
 
1.0 
1.0 
 
 
 
 
Loss Contingency, Receivable, Current
 
 
 
 
 
15.0 
15.0 
 
 
 
 
Other operating expenses
121.5 
104.2 
240.7 
207.4 
 
5.7 
5.7 
 
 
 
 
Malpractice Insurance, Maximum Coverage Per Incident
 
 
 
 
 
$ 6.0 
 
 
 
 
 
Contingencies (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Number of hospitals that received subpoenas
 
 
 
 
 
 
 
 
 
7 
4 
Number of patient medical records requested for each hospital in subpoenas
 
 
 
 
 
 
 
 
 
 
100 
Number of hospitals that received supplemental subpoenas
 
 
 
 
 
 
 
 
 
2 
 
Number of additional patient medical records requested
 
 
 
 
 
 
 
 
70 
 
 
Compliance Threshold Under Health Care Act
 
 
 
 
 
 
 
60.00% 
 
 
 
Segment Reporting Segment Reporting - Table 1 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Segment Reporting Information [Line Items]
 
 
 
 
Net operating revenues
$ 920.7 
$ 764.4 
$ 1,830.5 
$ 1,505.0 
Provision for Doubtful Accounts
(15.4)
(10.9)
(31.9)
(22.5)
Net operating revenues less provision for doubtful accounts
905.3 
753.5 
1,798.6 
1,482.5 
Costs and Expenses [Abstract]
 
 
 
 
Salaries and benefits
486.1 
401.8 
972.2 
786.9 
Other operating expenses
121.5 
104.2 
240.7 
207.4 
Supplies
34.4 
31.7 
69.4 
63.1 
Occupancy costs
17.9 
12.5 
35.9 
24.6 
Total segment level operating expenses
738.9 
615.1 
1,471.7 
1,223.6 
Other income
(0.7)
(3.0)
(1.3)
(3.5)
Equity in net income of nonconsolidated affiliates
(2.4)
(2.3)
(4.8)
(3.9)
Noncontrolling interest
(18.6)
(17.3)
(37.3)
(33.8)
Inpatient Rehabilitation Hospital [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net operating revenues
752.6 
645.3 
1,501.8 
1,275.6 
Provision for Doubtful Accounts
(14.5)
(10.2)
(30.1)
(21.2)
Net operating revenues less provision for doubtful accounts
738.1 
635.1 
1,471.7 
1,254.4 
Costs and Expenses [Abstract]
 
 
 
 
Salaries and benefits
366.1 
317.6 
736.0 
624.0 
Other operating expenses
106.8 
93.5 
211.6 
188.7 
Supplies
31.8 
29.9 
64.2 
59.7 
Occupancy costs
15.4 
10.7 
31.0 
21.1 
Total segment level operating expenses
520.1 
451.7 
1,042.8 
893.5 
Other income
(0.7)
(0.4)
(1.3)
(0.9)
Equity in net income of nonconsolidated affiliates
(2.2)
(2.3)
(4.4)
(3.9)
Noncontrolling interest
16.8 
15.6 
33.6 
30.8 
Segment Adjusted EBITDA
204.1 
170.5 
401.0 
334.9 
Capital Expenditures
47.4 
33.1 
86.1 
59.4 
Home Health and Hospice [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net operating revenues
168.1 
119.1 
328.7 
229.4 
Provision for Doubtful Accounts
(0.9)
(0.7)
(1.8)
(1.3)
Net operating revenues less provision for doubtful accounts
167.2 
118.4 
326.9 
228.1 
Costs and Expenses [Abstract]
 
 
 
 
Cost of services sold (excluding depreciation and amortization)
81.6 
56.7 
160.0 
110.1 
Support and overhead costs
58.0 
41.0 
115.0 
79.1 
Total segment level operating expenses
139.6 
97.7 
275.0 
189.2 
Other income
0 
0 
0 
0 
Equity in net income of nonconsolidated affiliates
(0.2)
0 
(0.4)
0 
Noncontrolling interest
1.8 
1.7 
3.7 
3.0 
Segment Adjusted EBITDA
26.0 
19.0 
48.6 
35.9 
Capital Expenditures
$ 1.9 
$ 1.9 
$ 2.4 
$ 2.2 
Segment Reporting Segment Reporting - Table 2 (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Total assets
$ 4,632.6 1
$ 4,606.1 
Investments in and advances to nonconsolidated affiliates
13.6 
11.7 
Inpatient Rehabilitation Hospital [Member]
 
 
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Total assets
3,612.4 
3,589.0 
Investments in and advances to nonconsolidated affiliates
10.8 
9.3 
Home Health and Hospice [Member]
 
 
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Total assets
1,091.5 
1,088.4 
Investments in and advances to nonconsolidated affiliates
$ 2.8 
$ 2.4 
Segment Reporting Segment Reporting - Table 3 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Mar. 31, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
 
General and administrative expenses
$ (34.4)
 
$ (32.1)
$ (66.3)
$ (66.7)
Depreciation and amortization
(42.9)
 
(32.7)
(85.3)
(64.6)
(Loss) gain on disposal or impairment of assets
(0.2)
 
(0.8)
(0.4)
0.7 
Government, class action, and related settlements
0 
 
0 
0 
(8.0)
Professional fees - accounting, tax, and legal
(1.7)
 
(0.1)
(1.9)
(2.3)
Loss on early extinguishment of debt
(2.0)
(2.4)
(18.8)
(4.8)
(20.0)
Interest expense and amortization of debt discounts and fees
(43.4)
 
(30.9)
(88.0)
(62.7)
Net income attributable to noncontrolling interests
18.6 
 
17.3 
37.3 
33.8 
Gain related to SCA equity interest
0 
 
2.6 
0 
2.6 
Income from continuing operations before income tax expense
123.7 
 
94.0 
240.2 
183.6 
Inpatient Rehabilitation Hospital and Home Health and Hospice [Member]
 
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
 
Total segment Adjusted EBITDA
$ 230.1 
 
$ 189.5 
$ 449.6 
$ 370.8 
Segment Reporting Segment Reporting - Table 4 (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended 12 Months Ended
Jun. 30, 2016
Dec. 31, 2015
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Total assets for reportable segments
$ 4,632.6 1
$ 4,606.1 
Reclassification of noncurrent deferred income tax liabilities to net noncurrent deferred income tax assets
(71.3)
(71.3)
Total assets
4,632.6 1
4,606.1 
Inpatient Rehabilitation Hospital and Home Health and Hospice [Member]
 
 
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Total assets for reportable segments
4,703.9 
4,677.4 
Total assets
$ 4,703.9 
$ 4,677.4 
Segment Reporting Segment Reporting - Table 5 (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Net operating revenues
$ 920.7 
$ 764.4 
$ 1,830.5 
$ 1,505.0 
Inpatient Rehabilitation Hospital [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Net operating revenues
752.6 
645.3 
1,501.8 
1,275.6 
Inpatient [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Net operating revenues
721.2 
618.7 
1,440.5 
1,225.3 
Outpatient and other [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Net operating revenues
31.4 
26.6 
61.3 
50.3 
Home Health and Hospice [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Net operating revenues
168.1 
119.1 
328.7 
229.4 
Home health [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Net operating revenues
157.1 
111.5 
308.0 
215.4 
Hospice [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Net operating revenues
$ 11.0 
$ 7.6 
$ 20.7 
$ 14.0 
Segment Reporting Segment Reporting - Textuals (Details)
Jun. 30, 2016
facilities
Inpatient Rehabilitation Hospital [Member]
 
Segment Reporting Information [Line Items]
 
Number of States in which Entity Operates
29 
Number of Inpatient Rehabilitation Hospitals
121 
Number of Joint Venture Hospitals Accounted for Using the Equity Method
1 
Number of Inpatient Rehabilitation Units Under Management Contracts
4 
Home Health and Hospice [Member]
 
Segment Reporting Information [Line Items]
 
Number of States in which Entity Operates
24 
Number of Hospital Based Home Health and Hospice Agencies
218 
Number of Joint Venture Agencies Accounted for Using the Equity Method
2 
Condensed Consolidating Financial Information - Income Statement Tables (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2016
Mar. 31, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Condensed Consolidating Statements of Operations
 
 
 
 
 
Net operating revenues
$ 920.7 
 
$ 764.4 
$ 1,830.5 
$ 1,505.0 
Less: Provision for doubtful accounts
(15.4)
 
(10.9)
(31.9)
(22.5)
Net operating revenues less provision for doubtful accounts
905.3 
 
753.5 
1,798.6 
1,482.5 
Operating expenses:
 
 
 
 
 
Salaries and benefits
486.1 
 
401.8 
972.2 
786.9 
Other operating expenses
121.5 
 
104.2 
240.7 
207.4 
Occupancy costs
17.9 
 
12.5 
35.9 
24.6 
Supplies
34.4 
 
31.7 
69.4 
63.1 
General and administrative expenses
34.4 
 
32.1 
66.3 
66.7 
Depreciation and amortization
42.9 
 
32.7 
85.3 
64.6 
Government, class action, and related settlements
0 
 
0 
0 
8.0 
Professional fees - accounting, tax, and legal
1.7 
 
0.1 
1.9 
2.3 
Total operating expenses
738.9 
 
615.1 
1,471.7 
1,223.6 
Loss on early extinguishment of debt
2.0 
2.4 
18.8 
4.8 
20.0 
Interest expense and amortization of debt discounts and fees
43.4 
 
30.9 
88.0 
62.7 
Other income
(0.7)
 
(3.0)
(1.3)
(3.5)
Equity in net income of nonconsolidated affiliates
(2.4)
 
(2.3)
(4.8)
(3.9)
Equity in net income of consolidated affiliates
0 
 
0 
0 
0 
Management fees
0 
 
0 
0 
0 
Income from continuing operations before income tax expense
123.7 
 
94.0 
240.2 
183.6 
Provision for income tax (benefit) expense
42.4 
 
32.2 
82.1 
62.5 
Income from continuing operations
81.3 
 
61.8 
158.1 
121.1 
Loss from discontinued operations, net of tax
(0.1)
 
(1.6)
(0.2)
(1.9)
Net income
81.2 
 
60.2 
157.9 
119.2 
Less: Net income attributable to noncontrolling interests
(18.6)
 
(17.3)
(37.3)
(33.8)
Net income attributable to HealthSouth
62.6 
 
42.9 
120.6 
85.4 
Comprehensive income
81.4 
 
60.3 
158.2 
119.4 
Comprehensive income attributable to HealthSouth
62.8 
 
43.0 
120.9 
85.6 
HealthSouth Corporation [Member]
 
 
 
 
 
Condensed Consolidating Statements of Operations
 
 
 
 
 
Net operating revenues
5.1 
 
5.1 
10.0 
10.4 
Less: Provision for doubtful accounts
0 
 
0 
0 
0 
Net operating revenues less provision for doubtful accounts
5.1 
 
5.1 
10.0 
10.4 
Operating expenses:
 
 
 
 
 
Salaries and benefits
11.0 
 
12.2 
22.3 
20.3 
Other operating expenses
6.9 
 
6.7 
12.5 
16.2 
Occupancy costs
0.9 
 
1.0 
1.8 
2.1 
Supplies
0 
 
0 
0 
0 
General and administrative expenses
31.2 
 
31.5 
64.3 
65.8 
Depreciation and amortization
2.4 
 
2.4 
4.8 
4.7 
Government, class action, and related settlements
 
 
 
 
8.0 
Professional fees - accounting, tax, and legal
1.7 
 
0.1 
1.9 
2.3 
Total operating expenses
54.1 
 
53.9 
107.6 
119.4 
Loss on early extinguishment of debt
2.4 
 
18.8 
4.8 
20.0 
Interest expense and amortization of debt discounts and fees
36.6 
 
28.4 
75.4 
57.6 
Other income
(4.9)
 
(4.8)
(9.6)
(7.1)
Equity in net income of nonconsolidated affiliates
0 
 
0 
0 
0 
Equity in net income of consolidated affiliates
(88.7)
 
(81.7)
(174.4)
(160.1)
Management fees
(33.8)
 
(29.3)
(68.0)
(57.8)
Income from continuing operations before income tax expense
39.4 
 
19.8 
74.2 
38.4 
Provision for income tax (benefit) expense
(23.3)
 
(24.7)
(46.6)
(48.9)
Income from continuing operations
62.7 
 
44.5 
120.8 
87.3 
Loss from discontinued operations, net of tax
(0.1)
 
(1.6)
(0.2)
(1.9)
Net income
62.6 
 
42.9 
120.6 
85.4 
Less: Net income attributable to noncontrolling interests
0 
 
0 
0 
0 
Net income attributable to HealthSouth
62.6 
 
42.9 
120.6 
85.4 
Comprehensive income
62.8 
 
43.0 
120.9 
85.6 
Comprehensive income attributable to HealthSouth
62.8 
 
43.0 
120.9 
85.6 
Guarantor Subsidiaries [Member]
 
 
 
 
 
Condensed Consolidating Statements of Operations
 
 
 
 
 
Net operating revenues
546.1 
 
460.0 
1,088.5 
907.7 
Less: Provision for doubtful accounts
(10.6)
 
(8.1)
(22.4)
(17.0)
Net operating revenues less provision for doubtful accounts
535.5 
 
451.9 
1,066.1 
890.7 
Operating expenses:
 
 
 
 
 
Salaries and benefits
248.7 
 
212.1 
500.0 
418.2 
Other operating expenses
76.7 
 
67.0 
152.6 
128.7 
Occupancy costs
22.4 
 
15.8 
44.8 
30.4 
Supplies
22.4 
 
20.7 
45.2 
41.1 
General and administrative expenses
0 
 
0 
0 
0 
Depreciation and amortization
25.9 
 
19.4 
51.8 
38.3 
Government, class action, and related settlements
 
 
 
 
0 
Professional fees - accounting, tax, and legal
0 
 
0 
0 
0 
Total operating expenses
396.1 
 
335.0 
794.4 
656.7 
Loss on early extinguishment of debt
0 
 
0 
0 
0 
Interest expense and amortization of debt discounts and fees
5.7 
 
2.1 
10.9 
4.4 
Other income
(0.1)
 
(0.1)
(0.2)
(0.1)
Equity in net income of nonconsolidated affiliates
(2.2)
 
(2.3)
(4.4)
(3.9)
Equity in net income of consolidated affiliates
(10.4)
 
(8.8)
(19.9)
(17.4)
Management fees
25.9 
 
21.8 
51.7 
43.1 
Income from continuing operations before income tax expense
120.5 
 
104.2 
233.6 
207.9 
Provision for income tax (benefit) expense
48.1 
 
39.7 
93.2 
79.1 
Income from continuing operations
72.4 
 
64.5 
140.4 
128.8 
Loss from discontinued operations, net of tax
0 
 
0 
0 
0 
Net income
72.4 
 
64.5 
140.4 
128.8 
Less: Net income attributable to noncontrolling interests
0 
 
0 
0 
0 
Net income attributable to HealthSouth
72.4 
 
64.5 
140.4 
128.8 
Comprehensive income
72.4 
 
64.5 
140.4 
128.8 
Comprehensive income attributable to HealthSouth
72.4 
 
64.5 
140.4 
128.8 
Nonguarantor Subsidiaries [Member]
 
 
 
 
 
Condensed Consolidating Statements of Operations
 
 
 
 
 
Net operating revenues
398.9 
 
325.0 
790.3 
637.3 
Less: Provision for doubtful accounts
(4.8)
 
(2.8)
(9.5)
(5.5)
Net operating revenues less provision for doubtful accounts
394.1 
 
322.2 
780.8 
631.8 
Operating expenses:
 
 
 
 
 
Salaries and benefits
231.0 
 
181.7 
459.1 
356.7 
Other operating expenses
49.4 
 
40.7 
98.1 
83.1 
Occupancy costs
7.9 
 
7.0 
15.9 
13.6 
Supplies
12.0 
 
11.0 
24.2 
22.0 
General and administrative expenses
3.2 
 
0.6 
2.0 
0.9 
Depreciation and amortization
14.6 
 
10.9 
28.7 
21.6 
Government, class action, and related settlements
 
 
 
 
0 
Professional fees - accounting, tax, and legal
0 
 
0 
0 
0 
Total operating expenses
318.1 
 
251.9 
628.0 
497.9 
Loss on early extinguishment of debt
0 
 
0 
0 
0 
Interest expense and amortization of debt discounts and fees
6.0 
 
2.9 
11.4 
5.6 
Other income
(0.6)
 
(0.6)
(1.2)
(1.2)
Equity in net income of nonconsolidated affiliates
(0.2)
 
0 
(0.4)
0 
Equity in net income of consolidated affiliates
0 
 
0 
0 
0 
Management fees
7.9 
 
7.5 
16.3 
14.7 
Income from continuing operations before income tax expense
62.9 
 
60.5 
126.7 
114.8 
Provision for income tax (benefit) expense
17.6 
 
17.2 
35.5 
32.3 
Income from continuing operations
45.3 
 
43.3 
91.2 
82.5 
Loss from discontinued operations, net of tax
0 
 
0 
0 
0 
Net income
45.3 
 
43.3 
91.2 
82.5 
Less: Net income attributable to noncontrolling interests
(18.6)
 
(17.3)
(37.3)
(33.8)
Net income attributable to HealthSouth
26.7 
 
26.0 
53.9 
48.7 
Comprehensive income
45.3 
 
43.3 
91.2 
82.5 
Comprehensive income attributable to HealthSouth
26.7 
 
26.0 
53.9 
48.7 
Consolidation, Eliminations [Member]
 
 
 
 
 
Condensed Consolidating Statements of Operations
 
 
 
 
 
Net operating revenues
(29.4)
 
(25.7)
(58.3)
(50.4)
Less: Provision for doubtful accounts
0 
 
0 
0 
0 
Net operating revenues less provision for doubtful accounts
(29.4)
 
(25.7)
(58.3)
(50.4)
Operating expenses:
 
 
 
 
 
Salaries and benefits
(4.6)
 
(4.2)
(9.2)
(8.3)
Other operating expenses
(11.5)
 
(10.2)
(22.5)
(20.6)
Occupancy costs
(13.3)
 
(11.3)
(26.6)
(21.5)
Supplies
0 
 
0 
0 
0 
General and administrative expenses
0 
 
0 
0 
0 
Depreciation and amortization
0 
 
0 
0 
0 
Government, class action, and related settlements
 
 
 
 
0 
Professional fees - accounting, tax, and legal
0 
 
0 
0 
0 
Total operating expenses
(29.4)
 
(25.7)
(58.3)
(50.4)
Loss on early extinguishment of debt
0 
 
0 
0 
0 
Interest expense and amortization of debt discounts and fees
(4.9)
 
(2.5)
(9.7)
(4.9)
Other income
4.9 
 
2.5 
9.7 
4.9 
Equity in net income of nonconsolidated affiliates
0 
 
0 
0 
0 
Equity in net income of consolidated affiliates
99.1 
 
90.5 
194.3 
177.5 
Management fees
0 
 
0 
0 
0 
Income from continuing operations before income tax expense
(99.1)
 
(90.5)
(194.3)
(177.5)
Provision for income tax (benefit) expense
0 
 
0 
0 
0 
Income from continuing operations
(99.1)
 
(90.5)
(194.3)
(177.5)
Loss from discontinued operations, net of tax
0 
 
0 
0 
0 
Net income
(99.1)
 
(90.5)
(194.3)
(177.5)
Less: Net income attributable to noncontrolling interests
0 
 
0 
0 
0 
Net income attributable to HealthSouth
(99.1)
 
(90.5)
(194.3)
(177.5)
Comprehensive income
(99.1)
 
(90.5)
(194.3)
(177.5)
Comprehensive income attributable to HealthSouth
$ (99.1)
 
$ (90.5)
$ (194.3)
$ (177.5)
Condensed Consolidating Financial Information - Balance Sheet Tables (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2016
Dec. 31, 2015
Jun. 30, 2015
Dec. 31, 2014
Current assets:
 
 
 
 
Cash and cash equivalents
$ 70.3 
$ 61.6 
$ 45.5 
$ 66.7 
Accounts receivable, net
420.6 
410.5 
 
 
Other current assets
168.6 
126.6 
 
 
Total current assets
659.5 
598.7 
 
 
Property and equipment, net
1,336.9 
1,310.1 
 
 
Goodwill
1,899.7 
1,890.1 
 
 
Intangible assets, net
414.2 
419.4 
 
 
Deferred income tax assets
115.5 
190.8 
 
 
Other long-term assets
206.8 
197.0 
 
 
Intercompany notes receivable
0 
0 
 
 
Intercompany receivable and investments in consolidated affiliates
0 
0 
 
 
Total assets
4,632.6 1
4,606.1 
 
 
Current liabilities:
 
 
 
 
Current portion of long-term debt
36.5 
36.8 
 
 
Accounts payable
67.1 
61.6 
 
 
Accrued expenses and other current liabilities
355.5 
328.0 
 
 
Total current liabilities
459.1 
426.4 
 
 
Long-term debt, net of current portion
3,050.0 
3,134.7 
 
 
Intercompany notes payable
0 
0 
 
 
Other long-term liabilities
154.1 
144.6 
 
 
Intercompany payable
0 
0 
 
 
Total Liabilities
3,663.2 
3,705.7 
 
 
Commitments and contingencies
   
   
 
 
Redeemable noncontrolling interests
120.0 
121.1 
 
 
Shareholders' equity:
 
 
 
 
HealthSouth shareholders’ equity
672.7 
611.4 
 
 
Noncontrolling interests
176.7 
167.9 
 
 
Total shareholders' equity
849.4 
779.3 
764.7 
619.5 
Total liabilities and shareholders' equity
4,632.6 1
4,606.1 
 
 
HealthSouth Corporation [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
56.5 
41.2 
29.8 
41.9 
Accounts receivable, net
0 
0 
 
 
Other current assets
67.3 
29.3 
 
 
Total current assets
123.8 
70.5 
 
 
Property and equipment, net
21.1 
14.5 
 
 
Goodwill
0 
0 
 
 
Intangible assets, net
15.2 
8.8 
 
 
Deferred income tax assets
99.5 
176.2 
 
 
Other long-term assets
49.2 
48.6 
 
 
Intercompany notes receivable
537.3 
546.6 
 
 
Intercompany receivable and investments in consolidated affiliates
2,809.9 
2,779.7 
 
 
Total assets
3,656.0 
3,644.9 
 
 
Current liabilities:
 
 
 
 
Current portion of long-term debt
40.0 
40.0 
 
 
Accounts payable
5.6 
5.8 
 
 
Accrued expenses and other current liabilities
153.7 
122.2 
 
 
Total current liabilities
199.3 
168.0 
 
 
Long-term debt, net of current portion
2,743.2 
2,821.9 
 
 
Intercompany notes payable
0 
0 
 
 
Other long-term liabilities
40.8 
43.6 
 
 
Intercompany payable
0 
0 
 
 
Total Liabilities
2,983.3 
3,033.5 
 
 
Commitments and contingencies
   
   
 
 
Redeemable noncontrolling interests
0 
0 
 
 
Shareholders' equity:
 
 
 
 
HealthSouth shareholders’ equity
672.7 
611.4 
 
 
Noncontrolling interests
0 
0 
 
 
Total shareholders' equity
672.7 
611.4 
 
 
Total liabilities and shareholders' equity
3,656.0 
3,644.9 
 
 
Guarantor Subsidiaries [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
2.4 
1.2 
1.2 
1.4 
Accounts receivable, net
262.0 
261.5 
 
 
Other current assets
23.1 
22.2 
 
 
Total current assets
287.5 
284.9 
 
 
Property and equipment, net
987.8 
988.4 
 
 
Goodwill
860.6 
860.7 
 
 
Intangible assets, net
119.0 
122.4 
 
 
Deferred income tax assets
64.1 
64.1 
 
 
Other long-term assets
88.6 
75.3 
 
 
Intercompany notes receivable
0 
0 
 
 
Intercompany receivable and investments in consolidated affiliates
13.8 
0 
 
 
Total assets
2,421.4 
2,395.8 
 
 
Current liabilities:
 
 
 
 
Current portion of long-term debt
6.3 
6.8 
 
 
Accounts payable
39.7 
35.4 
 
 
Accrued expenses and other current liabilities
92.7 
71.8 
 
 
Total current liabilities
138.7 
114.0 
 
 
Long-term debt, net of current portion
252.4 
255.6 
 
 
Intercompany notes payable
0 
0 
 
 
Other long-term liabilities
14.6 
12.3 
 
 
Intercompany payable
0 
156.7 
 
 
Total Liabilities
405.7 
538.6 
 
 
Commitments and contingencies
   
   
 
 
Redeemable noncontrolling interests
0 
0 
 
 
Shareholders' equity:
 
 
 
 
HealthSouth shareholders’ equity
2,015.7 
1,857.2 
 
 
Noncontrolling interests
0 
0 
 
 
Total shareholders' equity
2,015.7 
1,857.2 
 
 
Total liabilities and shareholders' equity
2,421.4 
2,395.8 
 
 
Nonguarantor Subsidiaries [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
11.4 
19.2 
14.5 
23.4 
Accounts receivable, net
158.6 
149.0 
 
 
Other current assets
138.2 
93.9 
 
 
Total current assets
308.2 
262.1 
 
 
Property and equipment, net
328.0 
307.2 
 
 
Goodwill
1,039.1 
1,029.4 
 
 
Intangible assets, net
280.0 
288.2 
 
 
Deferred income tax assets
0 
0 
 
 
Other long-term assets
69.0 
73.1 
 
 
Intercompany notes receivable
0 
0 
 
 
Intercompany receivable and investments in consolidated affiliates
0 
0 
 
 
Total assets
2,024.3 
1,960.0 
 
 
Current liabilities:
 
 
 
 
Current portion of long-term debt
7.7 
7.5 
 
 
Accounts payable
21.8 
20.4 
 
 
Accrued expenses and other current liabilities
151.6 
135.3 
 
 
Total current liabilities
181.1 
163.2 
 
 
Long-term debt, net of current portion
54.4 
57.2 
 
 
Intercompany notes payable
537.3 
546.6 
 
 
Other long-term liabilities
146.5 
137.8 
 
 
Intercompany payable
176.3 
157.5 
 
 
Total Liabilities
1,095.6 
1,062.3 
 
 
Commitments and contingencies
   
   
 
 
Redeemable noncontrolling interests
120.0 
121.1 
 
 
Shareholders' equity:
 
 
 
 
HealthSouth shareholders’ equity
632.0 
608.7 
 
 
Noncontrolling interests
176.7 
167.9 
 
 
Total shareholders' equity
808.7 
776.6 
 
 
Total liabilities and shareholders' equity
2,024.3 
1,960.0 
 
 
Consolidation, Eliminations [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Accounts receivable, net
0 
0 
 
 
Other current assets
(60.0)
(18.8)
 
 
Total current assets
(60.0)
(18.8)
 
 
Property and equipment, net
0 
0 
 
 
Goodwill
0 
0 
 
 
Intangible assets, net
0 
0 
 
 
Deferred income tax assets
(48.1)
(49.5)
 
 
Other long-term assets
0 
0 
 
 
Intercompany notes receivable
(537.3)
(546.6)
 
 
Intercompany receivable and investments in consolidated affiliates
(2,823.7)
(2,779.7)
 
 
Total assets
(3,469.1)
(3,394.6)
 
 
Current liabilities:
 
 
 
 
Current portion of long-term debt
(17.5)
(17.5)
 
 
Accounts payable
0 
0 
 
 
Accrued expenses and other current liabilities
(42.5)
(1.3)
 
 
Total current liabilities
(60.0)
(18.8)
 
 
Long-term debt, net of current portion
0 
0 
 
 
Intercompany notes payable
(537.3)
(546.6)
 
 
Other long-term liabilities
(47.8)
(49.1)
 
 
Intercompany payable
(176.3)
(314.2)
 
 
Total Liabilities
(821.4)
(928.7)
 
 
Commitments and contingencies
   
   
 
 
Redeemable noncontrolling interests
0 
0 
 
 
Shareholders' equity:
 
 
 
 
HealthSouth shareholders’ equity
(2,647.7)
(2,465.9)
 
 
Noncontrolling interests
0 
0 
 
 
Total shareholders' equity
(2,647.7)
(2,465.9)
 
 
Total liabilities and shareholders' equity
$ (3,469.1)
$ (3,394.6)
 
 
Condensed Consolidating Financial Information - Cash Flow Statement Tables (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Condensed Consolidating Statements of Cash Flows
 
 
Net cash provided by operating activities
$ 311.9 
$ 204.9 
Cash flows from investing activities:
 
 
Purchases of property and equipment
(71.4)
(46.3)
Capitalized software costs
(15.2)
(15.2)
Acquisition of business, net of cash acquired
(9.4)
(77.7)
Net change in restricted cash
(11.5)
13.1 
Funding of intercompany note receivable
0 
 
Proceeds from repayment of intercompany notes receivable
0 
 
Other
2.0 
(0.6)
Net cash used in investing activities
(105.5)
(126.7)
Cash flows from financing activities:
 
 
Proceeds from bond issuance
0 
700.0 
Principal payments on debt, including pre-payments
(112.8)
(546.1)
Principal borrowings on intercompany note payable
0 
 
Principal payments on intercompany note payable
0 
 
Borrowings on revolving credit facility
165.0 
270.0 
Payments on revolving credit facility
(145.0)
(442.0)
Debt amendment and issuance costs
0 
(13.9)
Repurchase of common stock, including fees and expenses
(24.1)
0 
Dividends paid on common stock
(41.9)
(37.1)
Dividends paid on convertible perpetual preferred stock
0 
(3.1)
Distributions paid to noncontrolling interests of consolidated affiliates
(33.6)
(26.2)
Other
(5.3)
(1.0)
Change in intercompany advances
0 
0 
Net cash used in financing activities
(197.7)
(99.4)
Increase (decrease) in cash and cash equivalents
8.7 
(21.2)
Cash and cash equivalents at beginning of period
61.6 
66.7 
Cash and cash equivalents at end of period
70.3 
45.5 
Condensed Consolidating Financial Information (Textual) [Abstract]
 
 
HealthSouth ownership percentage of subsidiary guarantors
100.00% 
 
Senior secured leverage ratio maximum
1.75 
 
Consolidated coverage ratio minimum
2 
 
HealthSouth Corporation [Member]
 
 
Condensed Consolidating Statements of Cash Flows
 
 
Net cash provided by operating activities
31.5 
(13.5)
Cash flows from investing activities:
 
 
Purchases of property and equipment
(5.4)
(5.1)
Capitalized software costs
(7.6)
(13.9)
Acquisition of business, net of cash acquired
0 
(56.5)
Net change in restricted cash
0 
0 
Funding of intercompany note receivable
(6.5)
 
Proceeds from repayment of intercompany notes receivable
22.0 
 
Other
(2.8)
7.7 
Net cash used in investing activities
(0.3)
(67.8)
Cash flows from financing activities:
 
 
Proceeds from bond issuance
 
700.0 
Principal payments on debt, including pre-payments
(111.2)
(545.0)
Principal borrowings on intercompany note payable
0 
 
Principal payments on intercompany note payable
0 
 
Borrowings on revolving credit facility
165.0 
270.0 
Payments on revolving credit facility
(145.0)
(442.0)
Debt amendment and issuance costs
 
(13.9)
Repurchase of common stock, including fees and expenses
(24.1)
 
Dividends paid on common stock
(41.9)
(37.1)
Dividends paid on convertible perpetual preferred stock
 
(3.1)
Distributions paid to noncontrolling interests of consolidated affiliates
0 
0 
Other
2.2 
1.7 
Change in intercompany advances
139.1 
138.6 
Net cash used in financing activities
(15.9)
69.2 
Increase (decrease) in cash and cash equivalents
15.3 
(12.1)
Cash and cash equivalents at beginning of period
41.2 
41.9 
Cash and cash equivalents at end of period
56.5 
29.8 
Guarantor Subsidiaries [Member]
 
 
Condensed Consolidating Statements of Cash Flows
 
 
Net cash provided by operating activities
182.5 
120.9 
Cash flows from investing activities:
 
 
Purchases of property and equipment
(35.3)
(24.2)
Capitalized software costs
(6.0)
0 
Acquisition of business, net of cash acquired
0 
0 
Net change in restricted cash
0 
0 
Proceeds from repayment of intercompany notes receivable
0 
 
Other
(0.1)
3.3 
Net cash used in investing activities
(41.4)
(20.9)
Cash flows from financing activities:
 
 
Proceeds from bond issuance
 
0 
Principal payments on debt, including pre-payments
(0.8)
(0.8)
Principal borrowings on intercompany note payable
0 
 
Principal payments on intercompany note payable
0 
 
Borrowings on revolving credit facility
0 
0 
Payments on revolving credit facility
0 
0 
Debt amendment and issuance costs
 
0 
Repurchase of common stock, including fees and expenses
0 
 
Dividends paid on common stock
0 
0 
Dividends paid on convertible perpetual preferred stock
 
0 
Distributions paid to noncontrolling interests of consolidated affiliates
0 
0 
Other
(2.9)
(0.8)
Change in intercompany advances
(136.2)
(98.6)
Net cash used in financing activities
(139.9)
(100.2)
Increase (decrease) in cash and cash equivalents
1.2 
(0.2)
Cash and cash equivalents at beginning of period
1.2 
1.4 
Cash and cash equivalents at end of period
2.4 
1.2 
Nonguarantor Subsidiaries [Member]
 
 
Condensed Consolidating Statements of Cash Flows
 
 
Net cash provided by operating activities
97.9 
97.5 
Cash flows from investing activities:
 
 
Purchases of property and equipment
(30.7)
(17.0)
Capitalized software costs
(1.6)
(1.3)
Acquisition of business, net of cash acquired
(9.4)
(21.2)
Net change in restricted cash
(11.5)
13.1 
Proceeds from repayment of intercompany notes receivable
0 
 
Other
4.9 
(5.6)
Net cash used in investing activities
(48.3)
(32.0)
Cash flows from financing activities:
 
 
Proceeds from bond issuance
 
0 
Principal payments on debt, including pre-payments
(0.8)
(0.3)
Principal borrowings on intercompany note payable
6.5 
 
Principal payments on intercompany note payable
(22.0)
 
Borrowings on revolving credit facility
0 
0 
Payments on revolving credit facility
0 
0 
Debt amendment and issuance costs
 
0 
Repurchase of common stock, including fees and expenses
0 
 
Dividends paid on common stock
0 
0 
Dividends paid on convertible perpetual preferred stock
 
0 
Distributions paid to noncontrolling interests of consolidated affiliates
(33.6)
(26.2)
Other
(4.6)
(7.9)
Change in intercompany advances
(2.9)
(40.0)
Net cash used in financing activities
(57.4)
(74.4)
Increase (decrease) in cash and cash equivalents
(7.8)
(8.9)
Cash and cash equivalents at beginning of period
19.2 
23.4 
Cash and cash equivalents at end of period
11.4 
14.5 
Consolidation, Eliminations [Member]
 
 
Condensed Consolidating Statements of Cash Flows
 
 
Net cash provided by operating activities
0 
0 
Cash flows from investing activities:
 
 
Purchases of property and equipment
0 
0 
Capitalized software costs
0 
0 
Acquisition of business, net of cash acquired
0 
0 
Net change in restricted cash
0 
0 
Funding of intercompany note receivable
6.5 
 
Proceeds from repayment of intercompany notes receivable
(22.0)
 
Other
0 
(6.0)
Net cash used in investing activities
(15.5)
(6.0)
Cash flows from financing activities:
 
 
Proceeds from bond issuance
 
0 
Principal payments on debt, including pre-payments
0 
0 
Principal borrowings on intercompany note payable
(6.5)
 
Principal payments on intercompany note payable
22.0 
 
Borrowings on revolving credit facility
0 
0 
Payments on revolving credit facility
0 
0 
Debt amendment and issuance costs
 
0 
Repurchase of common stock, including fees and expenses
0 
 
Dividends paid on common stock
0 
0 
Dividends paid on convertible perpetual preferred stock
 
0 
Distributions paid to noncontrolling interests of consolidated affiliates
0 
0 
Other
0 
6.0 
Change in intercompany advances
0 
0 
Net cash used in financing activities
15.5 
6.0 
Increase (decrease) in cash and cash equivalents
0 
0 
Cash and cash equivalents at beginning of period
0 
0 
Cash and cash equivalents at end of period
$ 0 
$ 0