Impairment of Long-lived Assets

3 Months Ended

Mar. 31, 2013

Impairment of Long-lived Assets [Abstract]

Impairment of Long-lived Assets

Impairment of Long-lived Assets

The Company evaluates the recovery of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of assets may not be recoverable.

In June 2012, the Company's Portamedic service line deployed its new model for delivering paramedical exam services. This new model utilizes the following internal use software and website development costs (i) Partnerlink, a workflow system for Portamedic's operations, (ii) ePortamedic.com, a web-based ordering system, and (iii) iParamed e-Exam platform, whereby the Company's health professionals utilize an iParamed equipped netbook to complete exams. In the fourth quarter of 2012, Portamedic revenue declines triggered an impairment evaluation of the above described long-lived assets, and it was determined that the assets were impaired.

During the first quarter 2013, as a result of a continuing decline in Portamedic revenues, the Company recorded an additional impairment charge of $0.1 million which is included in impairment of long-lived assets in the accompanying consolidated statement of operations for the three month period ended March 31, 2013. This impairment is related to enhancements completed during the first quarter of 2013 for the Partnerlink workflow system and the iParamed e-Exam platform. Impairments of Portamedic asset additions may continue to occur until such time that Portamedic cash flows projected for impairment purposes improve sufficiently to support the carrying values of Portamedic asset additions.