COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2011

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

13. COMMITMENTS AND CONTINGENCIES

Leases - The Company leases office and research facilities from a director under a fixed term operating lease.  Rental payments to the director were $392,000, $349,000, and $349,000 during 2011, 2010, and 2009, respectively.

The Company leases other offices and facilities and office equipment under certain operating leases, which expire on various dates through October 2016.  Under the terms of the facility leases, a pro rata share of the facilities’ operating expenses and real estate taxes are charged as additional rent.

At December 31, 2011, the Company was obligated for future minimum lease payments without regard to sublease payments under noncancelable leases as follows for the years ending December 31:

(In thousands)
		Operating Leases
2012		725
2013		606
2014		597
2015		487
2016		117
2017 and thereafter		-
	$	2,532

Rent expense (including amounts for the facilities leased from the director) amounted to $809,000, $842,000, and $848,000 during 2011, 2010, and 2009, respectively.

Legal - The Company is party to various legal proceedings arising in the normal course of business activities, none of which, in the opinion of management, are expected to have a material adverse impact on the Company's consolidated financial position or results of operations.

Professional and general liability insurance - The Company maintains an insurance policy for all of its entities to cover professional and general liability claims.

Regulatory Environment - The health care industry is subject to numerous laws and regulations of federal, state, and local governments. These laws and regulations include matters, such as reimbursement for patient services, Medicare, and Medicaid fraud and abuse, accreditation, etc. Government activity concerning possible fraud and abuse issues involving health care providers has increased with respect to these laws and regulations, violations of which could result in expulsion penalties, as well as significant repayments for patient services previously billed. Activity in this area has increased recently, but the Company at this time is not the subject of any material active investigations or initiatives. The Company utilizes a corporate compliance program to address possible compliance issues, and management believes that the Company is in material compliance with fraud and abuse laws and regulations, as well as other applicable government laws and regulations.