Assets Held for Sale

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

As of December 31, 2019, certain clinics in Pennsylvania, Ohio, and New Jersey and other property and equipment met the criteria as held for sale and the Company presented these assets as a single asset and liability in its financial statements and recognized a valuation allowance, as necessary, to recognize the net carrying amount at the lower of cost or fair value, less cost to sell. The Company determined that there was a goodwill impairment loss of $3,289 and a valuation adjustment of $1,023 for the year ended December 31, 2019, which are included in Depreciation, amortization and impairment on the Consolidated Statement of Operations. The Company classified the combined carrying value of all assets that met the criteria of held for sale of $50,099 as of December 31, 2019 to Current assets held for sale on the Consolidated Balance Sheet and classified the combined carrying value of all liabilities that met the criteria of held for sale of $5,767 as of December 31, 2019 to Current liabilities held for sale on the Consolidated Balance Sheet. These assets and liabilities held for sale include certain clinics in New Jersey, Ohio and Pennsylvania that accounted for, in the aggregate, $28,621 of our net patient service operating revenues for the year ended December 31, 2019. In December 2019, the Company also disposed of long-lived assets previously classified as held for sale during the year ended December 31, 2019 in which $858 was recorded to Depreciation, amortization and impairment on the Consolidated Statement of Operations to adjust the carrying value to fair value less costs to sell.

As of December 31, 2018, certain clinics in Maryland met the criteria to be classified as held for sale, and the Company concluded that there was no impairment for these assets. The Company reclassified the related assets, which had a combined carrying value of $577, to Current assets held for sale on the Consolidated Balance Sheet, and the sale of these clinics was executed on July 1, 2019.

The following is a summary of the major categories of assets and liabilities that have been reclassified to held for sale on the Consolidated Balance Sheets.



	As of December 31, 2019			As of December 31, 2018
Inventories	$	265		$	64
Prepaid expenses and other current assets	20			—
Property and Equipment, net	11,245			477
Operating lease right-of-use assets	5,408			—
Other long-term assets	—			36
Goodwill	34,184			—
Valuation allowance on disposal group(1)	(1,023		)	—
Total assets held for sale	$	50,099		$	577

Operating lease liabilities	$	5,767		$	—
Total liabilities held for sale	$	5,767		$	—

(1) The Company adjusted the carrying value to fair value less costs to sell for certain held for sale assets.