The Company operates with one reportable segment. The Chief Operating Officer, serving as the chief operating decision maker (CODM), reviews consolidated operational results for resource allocation and performance evaluation of the entire Company. The Company does not differentiate markets or regions for resource allocation purposes. Net income, as reported on the combined/consolidated statements of income, serves as the segment's profit or loss measure and is used to compare budgeted versus actual results. The segment follows the accounting policies outlined in Note 2, “Summary of Significant Accounting Policies.” Segment assets are not disclosed, as the CODM does not review them separately. Segment financial information includes revenue; labor expenses, encompassing nursing and departmental salaries and wages, payroll taxes and benefits, and agency staffing costs; depreciation and amortization; net interest expense; equity in the net loss of investees accounted for under the equity method; income tax provision; and other items such as cost of services excluding labor costs, rent related to cost of services, general and administrative expenses excluding labor, gain on lease termination, and other income or expenses excluding interest and equity in investees. Patient and resident service revenue arises from short-term contracts for skilled nursing, rehabilitation therapy, and assisted living services, recognized at amounts expected to be received, including variable consideration for retroactive revenue adjustments. Revenue is disaggregated by payors to reflect the nature, amount, timing, and uncertainty of revenue and cash flows influenced by economic factors.
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