Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v3.21.1
Property and Equipment
12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment

Note 5 – Property and Equipment

 

Property and equipment at December 31, 2020 and 2019 consisted of the following:

 

    December 31,     December 31,  
    2020     2019  
             
Medical equipment   $ 2,702,719     $ 2,338,989  
Land     550,700       574,100  
Building     6,482,260       6,548,560  
Equipment     437,029       437,029  
Equipment under capital leases     742,745       742,745  
Furniture     240,156       235,156  
Leasehold improvements     86,002       83,842  
Vehicles     56,624       56,624  
Computer equipment     251,432       251,432  
Software     724,126       724,126  
      12,273,793       11,992,603  
Less accumulated depreciation     (4,459,358 )     (3,760,773 )
Property and equipment, net   $ 7,814,435     $ 8,231,830  

 

On March 5, 2019, the Company acquired certain assets and liabilities related to Jellico Community Hospital and CarePlus Center. The Company acquired property and equipment of $0.5 million for the Jellico Community Hospital and CarePlus Center acquisitions. These acquisitions are more fully discussed in Note 6.

 

On March 1, 2021, the Company closed Jellico Community Hospital, after the City of Jellico issued a 30-day termination notice for the lease of the building. The impact of the closure of the hospital on its property and equipment is discussed in Note 20. This closure is not expected to have a negative impact on the current position of the business or the longer-term business strategy.

 

Property and equipment are depreciated on a straight-line basis over their respective lives. The buildings are being depreciated over 39 years, leasehold improvements are depreciated over the life of the lease(s) and the remaining equipment is being depreciated over lives ranging from three to seven years. Depreciation expense on property and equipment was $0.7 million and $0.8 million for the years ended December 31, 2020 and 2019, 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 years ended December 31, 2020 and 2019.