Intangible Assets, Net

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

5. Intangible Assets, Net

At December 31, 2018, intangible assets, net consisted of the following:

	Useful	Gross						Gross					Net
	Life	December 31,				Impairment/		December 31,		Accumulated			December 31,
	(Years)	2017		Additions		Disposal		2018		Amortization			2018
Indefinite Lived Assets:
Medicare license	N/A	$	1,994,000	$	-	$	-	$	1,994,000	$	-		$	1,994,000
Amortized Intangible Assets:
Network relationships	11-15		109,883,000		-		-		109,883,000		(48,361,773	)		61,521,227
Management contracts	15		22,832,000		-		-		22,832,000		(7,447,581	)		15,384,419
Member relationships	12		6,696,000		-		-		6,696,000		(1,289,667	)		5,406,333
Patient management platform	5		2,060,000		-		-		2,060,000		(446,333	)		1,613,667
Tradename/trademarks	20		1,011,000		-		-		1,011,000		(54,763	)		956,237
		$	144,476,000	$	-	$	-	$	144,476,000	$	(57,600,117	)	$	86,875,883

At December 31, 2017, intangible assets, net consisted of the following:

	Useful	Gross							Gross					Net
	Life	January 1,				Impairment/			December 31,		Accumulated			December 31,
	(Years)	2017		Additions		Disposal			2017		Amortization			2017
Indefinite Lived Assets:
Medicare license	N/A	$	-	$	1,994,000	$	-		$	1,994,000	$	-		$	1,994,000
Amortized Intangible Assets:
Network relationships	11-15		106,660,000		3,223,000		-			109,883,000		(35,842,508	)		74,040,492
Management contracts	15		22,832,000		-		-			22,832,000		(5,014,886	)		17,817,114
Member relationships	5-12		3,235,000		6,696,000		(3,235,000	)		6,696,000		(46,500	)		6,649,500
Patient management platform	5		-		2,060,000		-			2,060,000		(34,336	)		2,025,664
Tradename/trademarks	20		-		1,011,000		-			1,011,000		(4,212	)		1,006,788
		$	132,727,000	$	14,984,000	$	(3,235,000	)	$	144,476,000	$	(40,942,442	)	$	103,533,558

Amortization expense was $17.1 million and $17.5 million, (excluding $0.4 million of amortization expense for exclusivity incentives) for the years ended December 31, 2018 and 2017, respectively, which is included in depreciation and amortization on the accompanying consolidated statements of income.

During the year ended December 31, 2017, the Company recorded an impairment of member relationship intangible assets with a cost of approximately $3.2 million.

Future amortization expense is estimated to be as follows for the years ending December 31:

	Amount
2019	$	14,480,000
2020		12,671,000
2021		10,960,000
2022		9,448,000
2023		7,793,000
Thereafter		29,530,000
	$	84,882,000