Medical Equipment

9 Months Ended

Sep. 30, 2022

Medical equipment consisted of the following (in thousands):


	September 30, 2022		December 31, 2021
Medical equipment for sale or rental	$	2,865	$	1,788
Medical equipment for sale or rental - pump reserve	(22)		(46)
Medical equipment for sale or rental - net	2,843		1,742

Medical equipment in rental service	97,021		91,891
Medical equipment in rental service - pump reserve	(2,074)		(1,074)
Accumulated depreciation	(55,745)		(50,946)
Medical equipment in rental service - net	39,202		39,871

Total	$	42,045	$	41,613

Depreciation expense for medical equipment for the three and nine months ended September 30, 2022 was $2.4 million and $7.3 million, respectively, compared to $2.4 million and $7.0 million for the same prior year periods, respectively. This expense was recorded in “cost of revenues” for each period. The pump reserve for medical equipment in rental service represents an estimate for medical equipment that is considered to be missing. The reserve calculated is equal to the net book value of assets that have not returned from the field within a certain timeframe. During the current period, the Company changed its estimate for missing pumps by shortening the time estimate of when a pump is considered missing. As a result of this change in estimate, the Company increased the pump reserve as of September 30, 2022 and increased its cost of sales for the three and nine months ended September 30, 2022 by $0.1 million and $0.6 million, respectively.