Annual report pursuant to Section 13 and 15(d)

Property and Equipment

Property and Equipment
12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment

Note 5 – Property and Equipment


Property and equipment, net at December 31, 2021 and 2020 consisted of the following:


    December 31,     December 31,  
    2021     2020  
Medical equipment   $ 2,272,295     $ 2,702,719  
Land     550,700       550,700  
Building     4,181,434       6,482,260  
Equipment     435,729       437,029  
Equipment under capital leases     742,745       742,745  
Furniture     138,893       240,156  
Leasehold improvements     2,160       86,002  
Vehicles     -       56,624  
Computer equipment     152,124       251,432  
Software     496,469       724,126  
Property and equipment, gross     8,972,549       12,273,793  
Less accumulated depreciation     (4,342,459 )     (4,459,358 )
Property and equipment, net   $ 4,630,090     $ 7,814,435  


Property and equipment are depreciated on a straight-line basis over their respective lives. Buildings are 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 $0.6 million and $0.7 million for the years ended December 31, 2021 and 2020, respectively.


Management periodically reviews the valuation of long-lived assets, including property and equipment, for potential impairment. During 2021, the Company recorded a $2.3 million asset impairment charge for Jamestown Regional Medical Center’s building. In determining the fair value of Jamestown Regional Medical Center’s building, the impairment reflected the changed condition of the building that has not been in use since operations were suspended in June 2019. 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. As a result of the closing, the Company wrote off $0.3 million of Jellico’s equipment that was no longer of use during 2021.