ACCOUNTS RECEVIABLE

6 Months Ended

Jun. 30, 2014

ACCOUNTS RECEVIABLE

ACCOUNTS RECEVIABLE

NOTE C — ACCOUNTS RECEVIABLE

The Company reports accounts receivable at estimated net realizable amounts generated for products delivered and services rendered from federal and state managed health care plans, commercial insurance companies and patients.  Collections of these accounts receivable are the Company’s primary source of cash and are critical to the Company’s operating performance.  The Company estimates uncollectible patient accounts primarily based upon its experience in historical collections from individual patients.  Bad debt expense is reported within Other operating expenses within the Consolidated Statement of Income and Comprehensive Income.  At June 30, 2014 and December 31, 2013, net accounts receivable included the allowance for doubtful accounts of $11.3 million and $10.0 million respectively.