Variable Interest Entities

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

Note 19 – Variable Interest Entities

The following tables provide the balance sheet amounts for consolidated VIEs:

	September 30, 2022
	Real Estate		Physician			AHP
	Entities		LLCs			IPA
Current assets	$	22,572,792	$	8,597,506		$	26,224,436
Property and equipment, net		12,064,747		3,668			—
Other long-term assets		24,500		—			16,851,619
Total assets	$	34,662,039	$	8,601,174		$	43,076,055
Current liabilities		2,204,659		11,561,428			3,041,530
Long-term liabilities		10,041,904		—			30,680
Total liabilities		12,246,563		11,561,428			3,072,210
Equity		22,415,476		(2,960,254	)		40,003,845
Total liabilities and equity	$	34,662,039	$	8,601,174		$	43,076,055

	December 31, 2021
	Real Estate		Physician
	Entities		LLCs
Current assets	$	10,959,090	$	22,035,457
Property and equipment, net		32,182,902		—
Long-term assets		128,870,699		4,279
Total assets	$	172,012,691	$	22,039,736
Current liabilities		6,666,690		5,070,706
Long-term liabilities		68,850,689		930,000
Total liabilities		75,517,379		6,000,706
Equity		96,495,312		16,039,030
Total liabilities and equity	$	172,012,691	$	22,039,736

The assets of each of the ER Entities may only be used to settle the liabilities of that entity or its consolidated VIEs and may not be required to be used to settle the liabilities of any of the other ER Entities, other VIEs, or corporate entity. Additionally, the assets of corporate entities cannot be used to settle the liabilities of VIEs. The Company has aggregated all of the Physician LLCs and Real Estate Entities into two categories above, because they have similar risk characteristics, and presenting distinct financial information for each VIE would not add more useful information.

Real Estate Entities are consolidated by the Company as VIEs because they do not have sufficient equity at risk and our hospital entities are guarantors of their outstanding mortgage loans. We have been working with the third-party lenders to remove our guarantees of their outstanding mortgage loans. As these guarantees are released, the associated Real Estate Entity no longer qualifies as a VIE and is deconsolidated. In the second quarter of 2022, we deconsolidated 17 Real Estate Entities. There was no gain or loss on the deconsolidation of these entities.

At the date we deconsolidated these Real Estate Entities, they had $2,421,212 of cash, $98,086,690 of fixed assets (principally land and building), $533,874 of other assets, $69,638,778 of liabilities (principally mortgage indebtedness) and $31,402,998 of equity reported as noncontrolling interests.