Note 8 - Due to Fertility Medical Practices:

3 Months Ended

Mar. 31, 2012

Due To Fertility Medical Practices [Text Block]

NOTE 8 – DUE TO FERTILITY MEDICAL PRACTICES:

Due to Fertility Medical Practices is comprised of the net amounts owed by us to fertility practices contracted for full service practice management services. We do not consolidate the results of the Fertility Medical Practices into our accounts (as discussed in Note 2 of the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2011). This balance is comprised of amounts due to us by the medical practices for funds which we advanced for use in financing their accounts receivable and selected other transactions, less balances owed to the fertility practices by us for undistributed physician earnings and patient deposits which we hold on behalf of the fertility practices.

While we are responsible for the management and collection of the fertility practices’ accounts receivable, as part of the business services we provide, the credit and collection risk for these receivables remains with the fertility practice.  We generally finance the receivables with full recourse.  Amounts financed relating to uncollectible accounts are recovered from the fertility practice in the month uncollectible reserves are established or accounts are written-off.

As of March 31, 2012 and December 31, 2011, Due to Fertility Medical Practices was comprised of the following balances (000’s omitted):

	March 31,				December 31,
	2012				2011
	(unaudited)
Advances to Partner fertility practices		$	(19,572	)		$	(17,552	)
Undistributed Physician Earnings			7,860				5,508
Physician Practice Patient Deposits			28,888				26,273
Due to Fertility Medical Practices, net		$	17,176			$	14,229