NOTE 9 - COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

NOTE 9 - COMMITMENTS AND CONTINGENCIES

Leases   – We lease various operating facilities and certain medical equipment under operating leases with renewal options expiring through 2041.  Certain leases contain renewal options from two to ten years and escalation based either on the consumer price index or fixed rent escalators. Leases with fixed rent escalators are recorded on a straight-line basis.  We record deferred rent for tenant leasehold improvement allowances received from certain lessors and amortize the deferred rent expense over the term of the lease agreement.  Minimum annual payments under operating leases for future years ending December 31 are as follows (in thousands):

	Facilities		Equipment		Total
2013	$	44,119	$	10,452	$	54,571
2014		36,189		9,786		45,975
2015		30,247		8,702		38,949
2016		24,526		6,142		30,668
2017		19,071		2,060		21,131
Thereafter		50,465		–		50,465
	$	204,617	$	37,142	$	241,759

Total rent expense, including equipment rentals, for the years ended December 31, 2012, 2011 and 2010 was $60.6 million, $53.3 million and $47.9 million, respectively.

Maintenance Contract   – We have an arrangement with GE Medical Systems under which it has agreed to be responsible for the maintenance and repair of a majority of our equipment for a fee that is based on the type and age of the equipment. Under this agreement, we are committed to minimum payments of approximately $23.0 million per year through 2016.

Litigation   – We are engaged from time to time in the defense of lawsuits arising out of the ordinary course and conduct of our business. We believe that the outcome of our current litigation will not have a material adverse impact on our business, financial condition and results of operations.  However, we could be subsequently named as a defendant in other lawsuits that could adversely affect us.