Quarterly report pursuant to Section 13 or 15(d)

2. Accounts Receivable

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2. Accounts Receivable
 9 Months Ended
Sep. 30, 2016
Receivables [Abstract]  
Accounts Receivable

Accounts receivable at September 30, 2016 and December 31, 2015 consisted of the following:

 

    September 30,     December 31,  
    2016     2015  
             
Accounts receivable - clinical laboratory operations   $ 86,006,817     $ 105,332,339  
Accounts receivable - supportive software solutions     587,731       569,351  
                 
Total accounts receivable     86,594,548       105,901,690  
Less:                
Allowance for discounts     (80,098,203 )     (97,577,130 )
Allowance for bad debts     (3,841,213 )     (175,076 )
                 
Accounts receivable, net   $ 2,655,132     $ 8,149,484  

 

During the three months ended September 30, 2016, the Company identified additional accounts receivable related to its Clinical Laboratory Operations business segment that were deemed uncollectible. The primary factors in rendering these receivables uncollectible were the Company’s failure to obtain preauthorization from the third party payer prior to rendering services and the lack of an existing preferred provider contract with the third party payer. As a result, the Company recorded a charge of $3.5 million related to the Company’s inability to collect on these receivables, which is reflected in bad debt expense in the accompanying consolidated statements of operations.