Skilled Healthcare Group, Inc., through its subsidiaries, operates skilled nursing facilities, assisted living facilities, hospices, home health providers, and a rehabilitation therapy business. Operations The company’s services focus primarily on the medical and physical issues facing elderly patients. It operates through three segments, including Long-Term Care (LTC) Services; Therapy Services; and Hospice and Home Health Services. LTC Services Segment This segment includes operation of skilled nursing facilities and assisted living facilities. Skilled Nursing Facilities As of December 31, 2012, the company’s skilled nursing companies provided skilled nursing care at 74 regionally clustered facilities, having 9,181 licensed beds, in California, Texas, Iowa, Kansas, Missouri, Nebraska, Nevada and New Mexico. The company has developed programs to market its services to, high-acuity patients who are typically admitted to its facilities as they recover from strokes, other neurological conditions, cardiovascular and respiratory ailments, joint replacements and other muscular or skeletal disorders. The company uses interdisciplinary teams of experienced medical professionals, including therapists, to provide services prescribed by physicians. These teams include registered nurses, licensed practical nurses, certified nursing assistants and other professionals who provide individualized comprehensive nursing care 24 hours a day. Many of its skilled nursing facilities are equipped to provide specialty care, such as chemotherapy, enteral/parenteral nutrition, tracheotomy care and ventilator care. The company also provides standard services to each of its skilled nursing patients, including room and board, special nutritional programs, social services, recreational activities and related healthcare and other services. The company’s Express Recovery program uses a dedicated unit within a skilled nursing facility to deliver a rehabilitation regimen in accommodations specifically designed to serve high-acuity patients. Each Express Recovery unit can typically be entered without using the main facility entrance, permitting residents to bypass portions of the facility dedicated to the traditional nursing home patient. Each Express Recovery unit typically has 12 to 36 beds and provides skilled nursing care and rehabilitation therapy for patients recovering from conditions, such as joint replacement surgery, and cardiac and respiratory ailments. Skilled mix is the average daily number of Medicare and managed care patients the company serves at its skilled nursing facilities divided by the average daily number of total patients it serves at its skilled nursing facilities. As of December 31, 2012, the company operated 63 Express Recovery units with 2,259 beds. The company completed the build out of its Express Recovery units at its skilled nursing facilities. The company provides a complement of administrative and consultative services that allows its affiliated operators and unaffiliated third-party operators with whom it contracts to better focus on delivery of healthcare services. Assisted Living Facilities The company complements its skilled nursing care business by providing assisted living services at 22 facilities with 1,228 beds as of December 31, 2012. Its assisted living companies, which are mostly in Kansas, provide residential accommodations, activities, meals, security, housekeeping and assistance in the activities of daily living to seniors who are independent or who require some support, but not the level of nursing care provided in a skilled nursing facility. The company’s independent living units are non-licensed independent living apartments in which residents are independent and require no support with the activities of daily living. Equity Investment in Pharmacy Joint Venture The company has a 50% equity interest in APS - Summit Care Pharmacy, LLC, which is a joint venture that serves the pharmaceutical needs of a limited number of its Texas operations, as well as various other unaffiliated customers. Therapy Services Segment This segment includes integrated and third-party rehabilitation therapy services. Rehabilitation Therapy Services As of December 31, 2012, the company provided rehabilitation therapy services to a total of 195 healthcare facilities, including 64 facilities owned by it. In addition, it has contracts to manage the rehabilitation therapy services for its 10 healthcare facilities in New Mexico. The company provides rehabilitation therapy services at its skilled nursing facilities as part of an integrated service offering in connection with its skilled nursing care. Hospice and Home Health Services Segment This segment includes hospice and home health businesses. Hospice Care As of December 31, 2012, the company provided hospice care services in Arizona, California, Nevada, Idaho, Montana, and New Mexico. Hospice services focus on the physical, spiritual and psychosocial needs of terminally ill individuals and their families, and consist primarily of palliative and clinical care, education and counseling. Home Health As of December 31, 2012, the company provided home health care services in Arizona, California, Nevada, Idaho, Montana and New Mexico. Its home health care services generally consist of providing some combination of the services of registered nurses, speech, occupational and physical therapists, medical social workers and certified home health aides.