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Medicare and Medicaid EHR Incentives
9 Months Ended
Mar. 31, 2013
Other Income [Abstract]  
MEDICARE AND MEDICAID EHR INCENTIVES
MEDICARE AND MEDICAID EHR INCENTIVES
The American Recovery and Reinvestment Act of 2009 provided for Medicare and Medicaid incentive payments beginning in calendar year 2011 for eligible hospitals and professionals that implement and achieve meaningful use of certified EHR technology. The Company utilizes the contingency model to account for Medicare and Medicaid EHR incentive payments. Under the contingency model, EHR incentive payments are recognized when all contingencies relating to the incentive payment have been satisfied. For Medicaid EHR incentive payments, recognition occurs at the time meaningful use criteria are met and formal state acceptance is documented since Medicaid payments for the states in which the Company operates are based upon historical cost reports with no subsequent payment adjustment. For Medicare EHR incentive payments, recognition is deferred until both the Medicare federal fiscal year during which EHR meaningful use was demonstrated ends and the cost report information utilized to determine the final amount of reimbursement is known.
The Company recognized other income related to Medicare and Medicaid EHR incentives under the contingency model of $2.4 million and $5.4 million for the three months ended March 31, 2012 and 2013, respectively, and $26.8 million and $31.2 million for the nine months ended March 31, 2012 and 2013, respectively. The Company incurs both capital expenditures and operating expenses in connection with the implementation of its various EHR initiatives. The amount and timing of these expenditures do not directly correlate with the timing of the Company's cash receipts or recognition of the EHR incentives as other income. As of June 30, 2012 and March 31, 2013, the Company had $2.7 million and $1.7 million in Medicaid and Medicare EHR receivables, respectively, on its condensed consolidated balance sheets. In addition, as of June 30, 2012 and March 31, 2013, the Company had $4.3 million and $2.0 million in Medicare EHR deferred revenues, respectively, on its condensed consolidated balance sheets.