Note 5 – Property and Equipment

Property and equipment at December 31, 2019 and 2018 consisted of the following:

Effective June 1, 2018, the Company acquired certain assets and liabilities related to Jamestown Regional Medical Center and on March 5, 2019, the Company acquired certain assets and liabilities related to Jellico Community Hospital and CarePlus Center. The Company has acquired property and equipment of $7.1 million and $0.5 million for the Jamestown Regional Medical Center and the Jellico Community Hospital and CarePlus Center acquisitions, respectively. These acquisitions are more fully discussed in Note 6.

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 $0.8 million and $1.2 million for the years ended December 31, 2019 and 2018, 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, 2019 and 2018.