Note 6. – Revenue Recognition and Accounts Receivables

The Company’s subsidiaries recognize revenues in the period in which services are provided. Accounts receivable primarily consist of amounts due from third-party payors and patients. The Company’s subsidiaries’ ability to collect outstanding receivables is critical to their results of operations and cash flows. Amounts the Company’s subsidiaries receive for treatment of patients covered by governmental programs such as Medicare and Medicaid and other third-party payors such as health maintenance organizations (“HMOs”), preferred provider organizations (“PPOs”) and other private insurers are generally less than the Company’s subsidiaries’ established billing rates. Additionally, to provide for accounts receivable that could become uncollectible in the future an allowance for doubtful accounts is established to reduce the carrying value of such receivables to their estimated net realizable value. Accordingly, the revenues and accounts receivable reported in the accompanying unaudited condensed consolidated financial statements are recorded at the net amount expected to be received.

Revenues by payor were as follows for the three months ended September 30, 2016 and 2015:


	Three Months Ended
	September 30,
	2016			2015
Healthcare Facilities Segment:
Medicare	$	2,033		$	3,509
Medicaid		2,496			2,922
Self-pay		119			645
Managed Care & Other Insurance		720			2,402
Other		22			33

Revenues before provision for doubtful accounts		5,390			9,511
Provision for doubtful accounts		(33	)		(716	)

Healthcare Facilities Segment Net Revenues		5,357			8,795
Pharmacy Segment Net Revenues		7,341			7,567
Other Revenues		348			222

Total Net Revenues	$	13,046		$	16,584

The net revenues of the Pharmacy Segment are presented net of contractual adjustments. The provision for bad debts of the Pharmacy Segment is presented as a component of operating expenses in the Condensed Consolidated Statements of Operations and Comprehensive Loss.

Summary information for accounts receivable is as follows:


	September 30,			June 30,
	2016			2016
Accounts receivable (net of contractual allowances)	$	6,698		$	7,157
Less allowance for doubtful accounts		(792	)		(991	)

Patient accounts receivable - net	$	5,906		$	6,166

The following is a summary of the activity in the allowance for doubtful accounts for the Healthcare Facilities Segment and the Pharmacy Segment for the three months ended September 30, 2016 and 2015:


Three Months Ended September 30, 2016,	Healthcare Facilities			Pharmacy			Total
Balance at July 1, 2016	$	624		$	367		$	991
Additions recognized as a reduction to revenues:
Continuing Operations		33			91			124
Discontinued Operations		407			—			407
Accounts written off, net of recoveries		(662	)		(68	)		(730	)

Balance at September 30, 2016	$	402		$	390		$	792


Three Months Ended September 30, 2015,	Healthcare Facilities			Pharmacy			Total
Balance at July 1, 2015	$	4,962		$	385		$	5,347
Additions recognized as a reduction to revenues:
Continuing Operations		715			222			1,004
Discontinued Operations		1,017			—			950
Accounts written off, net of recoveries		(1,913	)		(163	)		(2,076	)

Balance at September 30, 2015	$	4,781		$	444		$	5,225