Property and Equipment

12 Months Ended

Dec. 31, 2025

Property, Plant and Equipment [Abstract]

8. PROPERTY AND EQUIPMENT

The cost basis and estimated useful lives of property and equipment as of December 31, 2025 and 2024 are as follows (dollars in thousands):


	December 31,
	2025 (1)			2024 (1)			Life
Computer hardware and software	$	58,475		$	53,963		3-5 years
Leasehold improvements		39,371			37,237		Shorter of Life of Lease or Useful Life
Furniture, fixtures and equipment		18,490			15,886		5-10 years
Building and improvements (2)		52,445			9,163		15-35 years
Other		23			22		5-10 years
Construction in progress (2)		1,418			46,729
		170,222			163,000
Less-accumulated depreciation		(86,908	)		(67,492	)
Total property and equipment, net	$	83,314		$	95,508

___________________

(1)

Property and equipment which were fully depreciated and no longer in use by the Company were retired during the years ended December 31, 2025 and 2024; therefore, both the cost of the asset and the related accumulated depreciation balances were reduced to zero for these assets.

(2)

Buildings and improvements include a failed sale–leaseback transaction for USAHS.

Depreciation expense for the years ended December 31, 2025, 2024 and 2023 was $19.4 million, $8.7 million and $9.3 million, respectively.

For the year ended December 31, 2025, the Company did not record any asset impairment charges. For the year ended December 31, 2024, the Company recognized asset impairment charges of $0.8 million related to software assets that were no longer expected to be utilized. For the year ended December 31, 2023, the Company recorded asset impairment charges totaling $2.1 million, primarily related to software assets that were no longer expected to be utilized and leasehold improvements at leased facilities that the Company determined it would no longer use.