Accounts Receivable, Net

3 Months Ended

Mar. 31, 2022

Accounts Receivable, after Allowance for Credit Loss [Abstract]

Accounts receivable, net represents outstanding amounts we expect to collect from the transfer of our products and services. Principally, these amounts are comprised of receivables from Medicare, Medicaid, and commercial insurance plans. Our accounts receivable represent amounts outstanding from our gross charges, net of contractual discounts, sales returns, and other implicit price concessions including estimates for payor disallowances and patient non-payments.

We are exposed to credit losses primarily through our accounts receivable. These receivables are short in nature because their due date varies between due upon receipt of invoice and 90 days. We assess our receivables, divide them into similar risk pools, and monitor our ongoing credit exposure through active review of our aging buckets. Our activities include timely account reconciliations, dispute resolution, and payment confirmations. We also employ collection agencies and legal counsel to pursue recovery of defaulted receivables.

Our expected loss methodology is developed using historical liquidation rates, current and future economic and market conditions, and a review of the current status of our patients and customers’ trade accounts receivable balances. We also group our receivables into similar risk pools to better measure the risks for each pool. After evaluating the risk for each pool, we have determined that additional credit loss risk is immaterial for the Patient Care segment. For the Products & Services segment, an allowance for doubtful accounts is recorded, which is deducted from gross accounts receivable to arrive at “Accounts receivable, net.” As of March 31, 2022, we have considered the current and future economic and market conditions resulting in a decrease to the allowance for doubtful accounts by approximately $0.1 million since December 31, 2021.

Accounts receivable, net as of March 31, 2022 and December 31, 2021 is comprised of the following:


	As of March 31, 2022						As of December 31, 2021
(in thousands)	Patient Care		Products & Services		Consolidated		Patient Care		Products & Services		Consolidated
Gross charges before estimates for implicit price concessions	$	157,814	$	21,089	$	178,903	$	173,115	$	21,459	$	194,574
Less estimates for implicit price concessions:
Payor disallowances	(30,300)		—		(30,300)		(33,007)		—		(33,007)
Patient non-payments	(7,059)		—		(7,059)		(7,500)		—		(7,500)
Accounts receivable, gross	120,455		21,089		141,544		132,608		21,459		154,067
Allowance for doubtful accounts	—		(1,927)		(1,927)		—		(2,009)		(2,009)
Accounts receivable, net	$	120,455	$	19,162	$	139,617	$	132,608	$	19,450	$	152,058