Annual report pursuant to Section 13 and 15(d)

Accounts Receivable

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Accounts Receivable
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Accounts Receivable

Note 4 – Accounts Receivable

 

Accounts receivable at December 31, 2017 and 2016 consisted of the following:

 

    December 31,  
    2017     2016  
Accounts receivable - laboratory services   $ 1,478,451     $ 12,715,835  
Accounts receivable - hospital     8,593,747       -  
Total accounts receivable     10,072,198       12,715,835  
Less:                
Allowance for discounts - laboratory services     (1,177,054 )     (11,664,490 )
Allowance for discounts - hospital     (6,936,429 )     -  
Allowance for bad debts     (987,403 )     -  
Accounts receivable, net   $ 971,312     $ 1,051,345  

 

For the years ended December 31, 2017 and 2016, bad debt expense was $1.5 million and $2.1 million, respectively. During the years ended December 31, 2017 and 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 $1.5 million and $3.5 million, respectively, 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.