Note 9 - Notes Payable and Other Obligations:

6 Months Ended

Jun. 30, 2011

Debt Disclosure [Text Block]

NOTE 9 – NOTES PAYABLE AND OTHER OBLIGATIONS:

Notes payable and other obligations as of June 30, 2011 and December 31, 2010 consisted of the following (000’s omitted):

	June 30,			December 31,
	2011			2010
	(unaudited)
Note payable to bank	$	12,690		$	14,476
Derivative fair valuation adjustment		91			87
Obligations under capital leases		82			129
Total notes payable and other obligations	$	12,863		$	14,692
Less — current portion		(3,870	)		(3,784	)
Long-term notes payable and other obligations	$	8,993		$	10,908

Note payable to Bank ¾

In May, 2010, we entered into a syndicated amended and restated financing arrangement with Bank of America, N.A., TD Bank, N.A., and Webster Bank, N.A. and secured a $35 million three-year revolving credit facility (amounts available to be borrowed are based on eligible patient receivables and as of June 30, 2011,  approximately $15.5 million of the $35 million line of credit was available) and a $25 million three-year term loan (of which approximately $15.2 million was outstanding at the closing date in May 2010). Both the term loan and the revolving credit facility mature in May 2013. Interest on the term loan and revolving loans are payable based on a tiered pricing structure related to a defined leverage ratio. As of June 30, 2011, interest on the term loan was payable at a rate of approximately 3.4%. As of June 30, 2011 there was no outstanding balance on the revolving credit facility and the unused balance bore a commitment fee of 0.25%.

Our credit facility is collateralized by substantially all of our assets.  As of June 30, 2011, we were in full compliance with all of our applicable debt covenants.