Use of Estimates

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

The determination of contractual and bad debt allowances constitutes a significant estimate. Some of the factors considered by management in determining the amount of such allowances are the historical trends of the centers’ cash collections and contractual and bad debt write-offs, accounts receivable agings, established fee schedules, contracts with payors and procedure statistics.  Accordingly, net accounts receivable at June 30, 2014 and December 31, 2013 reflect allowances for contractual adjustments of $291,434,000 and $289,937,000, respectively, and allowances for bad debt expense of $30,414,000 and $27,862,000, respectively. Bad debt expense is included in other operating expenses and was approximately $5,554,000 and $10,762,000 for the three and six months ended June 30, 2014, respectively, and $4,844,000 and $10,744,000 for the three and six months ended June 30, 2013, respectively.