Annual report pursuant to Section 13 and 15(d)

Accounts Receivable

Accounts Receivable

12 Months Ended

Dec. 31, 2019

Note 4 – Accounts Receivable

Accounts receivable at December 31, 2019 and 2018 consisted of the following:

	December 31,
	2019			2018
Accounts receivable - Hospital Operations	$	26,687,028		$	31,607,644
Accounts receivable - Clinical Laboratory Operations		-			622,009
Total accounts receivable		26,687,028			32,229,653
Less:
Allowance for discounts - Clinical Laboratory Operations		-			(573,584	)
Allowance for discounts - Hospital Operations		(16,801,910	)		(25,066,799	)
Allowance for bad debts		(5,245,817	)		(2,777,521	)
Accounts receivable owed to factors		(1,073,854	)		-
Accounts receivable, net	$	3,565,447		$	3,811,749

For the years ended December 31, 2019 and 2018, bad debt expense was $8.4 million and $9.4 million, respectively.

Accounts Receivable Factoring Arrangements

During the year ended December 31, 2019, the Company entered into five accounts receivable factoring arrangements. The aggregate amount of accounts receivable sold on a non-recourse basis, was $3.9 million. The aggregate purchase price paid to the Company was $2.7 million, less $0.1 million of origination fees. As of December 30, 2019, $1.1 million was outstanding and owed to two of the factors under two of these arrangements.

On January 29, 2020, the Company entered into a Secured Installment Promissory Note (the “Installment Note”) in the principal amount of $1.2 million the proceeds of which were used to satisfy in full the amounts due to the factors. The Installment Note is more fully discussed in Note 21.