Annual report pursuant to Section 13 and 15(d)

4. Accounts Receivable

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4. Accounts Receivable
 12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Accounts Receivable

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

 

    Year Ended December 31,  
    2016     2015  
Accounts receivable - laboratory services   $ 13,220,498     $ 105,332,339  
Accounts receivable - all others     701,583       569,351  
Total accounts receivable     13,922,081       105,901,690  
Less:                
Allowance for discounts     (12,103,547 )     (97,577,130 )
Allowance for bad debts     (350,954 )     (175,076 )
Accounts receivable, net   $ 1,467,580     $ 8,149,484  

 

For the years ended December 31, 2016 and 2015, bad debt expense was $3.6 million and $19.6 million, respectively, of which amounts $0 and $19.5 million, respectively were classified as contra-revenue. During the year ended December 31, 2016, the Company identified certain 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.