Significant Payors

3 Months Ended

Mar. 31, 2017

Significant Payors [Abstract]

Significant Payors

10. Significant Payors

     A substantial portion of the Company's net service revenues and accounts receivable are derived from services performed for federal, state and local governmental agencies. The Illinois Department on Aging accounted for 36.5% and 44.8% of the Company's net service revenues for the three months ended March 31, 2017 and 2016, respectively.

     The related receivables due from the Illinois Department on Aging represented 52.9% and 55.4% of the Company's accounts receivable at March 31, 2017 and December 31, 2016, respectively.

      The State of Illinois' payments have been delayed in the past and may continue to be delayed due to a budget impasse that began in 2015. The State of Illinois did not adopt a comprehensive budget for fiscal year 2016, which ended on June 30, 2016, and it has not yet adopted a comprehensive budget for fiscal year 2017, which began on July 1, 2016. Stopgap budget legislation was enacted on June 30, 2016, which appropriated funds through December 31, 2016. Without a budget, the State is not authorized to pay for the non-Medicaid consumers we serve. During the second half of 2016 and the first three months of 2017, we have been experiencing a delay in payments from the State of Illinois due to the current budget situation. Accounts receivable attributable to delayed payments from the Illinois Department on Aging totaled $58.8 million as of March 31, 2017, approximately $56.2 million thereof related to Non-Medicaid consumers and approximately $2.6 million related to Medicaid consumers. Reimbursements from the State of Illinois could be further delayed due to the lack of a budget for fiscal year 2017 and because current forecasts indicate higher state deficits in the near future.