Quarterly report pursuant to Section 13 or 15(d)

Accrued Expenses

Accrued Expenses

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

Accrued Expenses

Note 5 – Accrued Expenses

Accrued expenses at March 31, 2023 (unaudited) and December 31, 2022 consisted of the following:

Schedule of Accrued Expenses

	March 31,		December 31,
	2023		2022
Accrued payroll and related liabilities	$	8,496,774	$	8,533,710
HHS Provider Relief Funds		552,099		552,099
Accrued interest		6,176,589		5,736,096
Accrued legal expenses and settlements		534,550		534,550
Medicare overpayment reserve		1,976,423		2,101,837
Other accrued expenses		2,277,972		2,105,516
Accrued expenses	$	20,014,407	$	19,563,808

Accrued payroll and related liabilities at March 31, 2023 and December 31, 2022 included approximately $3.1 million and $3.0 million, respectively, for penalties associated with approximately $4.0 million and $4.0 million of accrued past due payroll taxes as of March 31, 2023 and December 31, 2022, respectively.

During the fourth quarter of 2022, the Company’s Big South Fork Medical Center received a communication that its final Medicare cost report for the six months ending December 31, 2021 was accepted and that it reflected a retroactive adjustment of $1.6 million as a result of an overpayment. Accordingly, the Company has reflected the $1.6 million cost report adjustment as a liability at March 31, 2023 and December 31, 2022. Furthermore, the Company recognized an additional $0.4 million and $0.5 million as a liability (net of recoupments) at March 31, 2023 and December 31, 2022, respectively, based on further correspondence with its fiscal intermediary and likely overpayments by Medicare for fiscal 2022.