PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property and Equipment

PROPERTY AND EQUIPMENT

Property and equipment consists of the following (in thousands):

	December 31,
	2014			2013
Computer and office equipment, including equipment acquired under capital leases	$	22,662		$	19,961
Software capitalized for internal use	14,914			13,746
Vehicles, including equipment acquired under capital leases	2,106			2,056
Medical equipment	27,668			22,247
Work in progress	3,287			8,815
Furniture and fixtures	4,487			4,291
Leasehold improvements	13,690			12,082
Property and equipment, gross	88,814			83,198
Less: Accumulated depreciation	(50,643		)	(42,016		)
Property and equipment, net	$	38,171		$	41,182

The Company had an insignificant amount of vehicles and medical equipment under capital lease for the years ended December 31, 2014, 2013 and 2012.

Work in progress at December 31, 2014 and 2013 includes $0.6 million and $0.7 million, respectively, of internally developed software costs to be capitalized upon completion.

Depreciation expense, including expense related to assets under capital lease, for the years ended December 31, 2014, 2013 and 2012 was $16.4 million, $13.4 million, and $8.4 million, respectively.  Depreciation expense for the years ended December 31, 2014, 2013 and 2012 includes $2.4 million, $1.7 million, and $1.3 million, respectively, related to costs related to software capitalized for internal use.

There were no significant gains or losses on sales of property and equipment for the years ended December 31, 2014 and 2013. Losses of $0.2 million were incurred on disposal of property and equipment for the year ended December 31, 2012.

Impairment

The Company assesses the impairment of its assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. As a result of the Pharmacy Services Asset Sale (see Note 5 - Discontinued Operations), the Company evaluated certain facilities that were retained by the Company following the divestiture. As a result of the evaluation, the Company determined that a triggering event occurred, giving rise to the need to assess the recoverability of certain of our assets previously used in the specialty pharmacy mail operations and community retail pharmacy operations, which consisted primarily of software capitalized for internal use, leasehold improvements and work in progress. Based on our analysis, we recorded a $5.8 million impairment charge in income (loss) from discontinued operations, net of income taxes during the year ended December 31, 2012. In connection with the sale of substantially all of the Home Health Services segment, the Company recorded an impairment charge of $0.5 million that is included in income (loss) from discontinued operations, net of income taxes during the year ended December 31, 2014. No impairment charges were incurred during the year ended December 31, 2013.