Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.8.0.1
Property and Equipment
3 Months Ended
Mar. 31, 2018
Property, Plant and Equipment [Abstract]  
Property and Equipment

Note 3 – Property and Equipment

 

Property and equipment at March 31, 2018 (unaudited) and December 31, 2017 consisted of the following:

 

    March 31, 2018     December 31, 2017  
Medical equipment   $ 713,799     $ 696,195  
Building     1,359,484       1,359,472  
Equipment     437,029       476,548  
Equipment under capital leases     4,686,736       4,686,736  
Furniture     232,495       222,824  
Leasehold improvements     1,303,131       1,303,131  
Vehicles     196,534       196,534  
Computer equipment     221,237       226,441  
Software     333,853       631,033  
      9,484,297       9,798,914  
Less accumulated depreciation     (7,122,072 )     (7,103,474 )
Property and equipment, net   $ 2,362,225     $ 2,695,440  

 

On January 13, 2017, the Company completed an asset purchase agreement to acquire certain assets related to Scott County Community Hospital, based in Oneida, Tennessee (the “Hospital Assets”). The Hospital Assets include a 52,000 square foot hospital building and 6,300 square foot professional building on approximately 4.3 acres. Scott County Community Hospital, which has since been renamed as Big South Fork Medical Center, is classified as a Critical Access Hospital (rural). The Company acquired the Hospital Assets out of bankruptcy for a purchase price of $1.0 million, and the purchase price has been recorded as property and equipment in the Company’s condensed consolidated balance sheet. The Company opened the hospital on August 8, 2017.

 

Depreciation expense on property and equipment was $0.3 million and $0.4 million for the three months ended March 31, 2018 and 2017, respectively. Management periodically reviews the valuation of long-lived assets, including property and equipment, for potential impairment. Management did not recognize any impairment of these assets during the three months ended March 31, 2018 and 2017