Impairment of Long-lived Assets

6 Months Ended

Jun. 30, 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 three and six month period ended June 30, 2013, the Company recorded an additional impairment charge of $0.2 million and $0.4 million respectively, which is included in impairment of long-lived assets in the accompanying consolidated statement of operations for the three and six month periods ended June 30, 2013. The charge of $0.2 million for the three month period ended June 30, 2013 relates to the write-off of certain financial system software which will not be utilized in the future. For the six months ended June 30, 2013, the impairment charge relates to the financial sofware noted above, fixed assets of closed branch offices and to enhancements completed for the Partnerlink workflow system and the iParamed e-Exam platform.

The Company recorded charges totaling $0.2 million related to the impairment of fixed assets for branch offices closed primarily during the second quarter of 2012.