7. COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Leases – The Group leases various operating facilities and certain medical equipment under operating leases with renewal options expiring through 2018. Certain leases contain renewal options from two to ten years and escalation clauses based either on the consumer price index or fixed rent escalators. Leases with fixed rent escalators are recorded on a straight-line basis. The Group records deferred rent for tenant leasehold improvement allowances received from a lessor and amortizes the deferred rent expense over the term of the lease agreement. Minimum annual payments under operating leases for future years ending December 31 (in thousands):

	Facilities		Equipment		Total
	(unaudited)		(unaudited)		(unaudited)
2016	$	1,923	$	282	$	2,205
2017		1,457		39		1,496
2018		1,189		35		1,224
2019		938		18		956
2020		496		–		496
Thereafter		549		–		549
	$	6,552	$	374	$	6,926

Total rent expense, including equipment rentals, for the years ended December 31, 2015, 2014 and 2013 was $2.7 million (unaudited), $3.5 million and $3.9 million, respectively.