ASSETS HELD FOR SALE

6 Months Ended

Jun. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

As of June 30, 2020 and December 31, 2019, the Company presented certain clinics in Pennsylvania, Ohio and New Jersey and other property that met the criteria as held for sale 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 an increase in the valuation allowance of $7 and a reduction of $498 for the three and six months ended June 30, 2020, respectively, which are included as a reduction to 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 $49,197 and $50,099 as of June 30, 2020 and December 31, 2019, respectively, to Current assets held for sale on the Condensed Consolidated Balance Sheets and classified the combined carrying value of all liabilities that met the criteria of held for sale of $4,210 and $5,767 as of June 30, 2020 and December 31, 2019, respectively, to Current liabilities held for sale on the Condensed Consolidated Balance Sheets. These assets and liabilities held for sale include certain clinics in Pennsylvania, Ohio and New Jersey accounted for, in the aggregate, $6,846 and $13,619 of the Company’s patient service operating revenues for the three and six months ended June 30, 2020, respectively.

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


	As of June 30, 2020		As of December 31, 2019
Inventories	$	333	$	265
Prepaid expenses and other current assets	18		20
Property and equipment, net	11,054		11,245
Operating lease right-of-use assets	3,897		5,408

Goodwill	34,184		34,184
Valuation allowance on disposal group(1)	(289)		(1,023)
Total assets held for sale	$	49,197	$	50,099

Operating lease liabilities	$	4,210	$	5,767
Total liabilities held for sale	$	4,210	$	5,767

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