For legal entities where the Company has a financial relationship, the Company evaluates whether it has a variable interest and determines if the entity is considered a variable interest entity (“VIE”). If the Company concludes an entity is a VIE and the Company is the primary beneficiary, the entity is consolidated. The primary beneficiary analysis is a qualitative analysis based on power and benefits. A reporting entity has a controlling financial interest in a VIE and must consolidate the VIE if it has both power and benefits. It must have the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE that potentially could be significant to the VIE or the right to receive benefits from the VIE that potentially could be significant to the VIE.

At March 31, 2022, the Company operated six facilities through non-wholly owned subsidiaries. The Company owns between 60% and 86% of the equity interests of these entities, and noncontrolling partners own the remaining equity interests. The Company manages each of these facilities, is responsible for the day to day operations and, therefore, has the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. These activities include, but are not limited to, behavioral healthcare services, human resource and employment-related decisions, marketing and finance. The terms of the agreements governing each of the Company’s VIEs prohibit the Company from using the assets of each VIE to satisfy the obligations of other entities. Consolidated assets at March 31, 2022 and December 31, 2021 include total assets of variable interest entities of $337.3 million and $320.6 million, respectively, which cannot be used to settle the obligations of other entities. Consolidated liabilities at March 31, 2022 and December 31, 2021 include total liabilities of variable interest entities of $26.1 million and $24.1 million, respectively.

The consolidated VIEs assets and liabilities in the Company’s condensed consolidated balance sheets are shown below (in thousands):

	March 31, 2022		December 31, 2021

Cash and cash equivalents	$	27,159	$	26,360
Accounts receivable, net		19,854		20,144
Other current assets		1,570		1,304
Total current assets		48,583		47,808
Property and equipment, net		236,765		220,793
Goodwill		34,945		34,945
Intangible assets, net		10,490		10,490
Operating lease right-of-use assets		6,524		6,603
Total assets	$	337,307	$	320,639


Accounts payable	$	3,736	$	3,690
Accrued salaries and benefits		6,139		5,656
Current portion of operating lease liabilities		206		197
Other accrued liabilities		8,325		6,818
Total current liabilities		18,406		16,361
Operating lease liabilities		6,614		6,666
Other liabilities		1,083		1,083
Total liabilities	$	26,103	$	24,110