ACCOUNTS RECEIVABLE, NET

12 Months Ended

Dec. 31, 2017

ACCOUNTS RECEIVABLE, NET

ACCOUNTS RECEIVABLE, NET

NOTE D — ACCOUNTS RECEIVABLE, NET

Accounts receivable are principally from Medicare and Medicaid programs and commercial insurance plans.  Our accounts receivables are recorded net of contractual discounts and net of estimated allowances for disallowed revenue and sales returns.  These allowances are presented as a reduction of gross accounts receivable.  We also record an allowance for doubtful accounts which is deducted from gross accounts receivable to arrive at “Accounts receivable, net.”  Accounts receivable, net as of December 31, 2017, and 2016 is comprised of the following:

	As of December 31, 2017									As of December 31, 2016
(in thousands)	Patient Care			Products & Services			Consolidated			Patient Care			Products & Services			Consolidated
Accounts receivable, before allowances	$	193,150		$	23,494		$	216,644		$	193,835		$	27,385		$	221,220
Allowance for disallowed revenue	(56,233		)	—			(56,233		)	(61,137		)	—			(61,137		)
Accounts receivable, gross	136,917			23,494			160,411			132,698			27,385			160,083
Allowance for doubtful accounts	(9,894		)	(4,171		)	(14,065		)	(10,575		)	(4,946		)	(15,521		)
Accounts receivable, net	$	127,023		$	19,323		$	146,346		$	122,123		$	22,439		$	144,562

Approximately 49.2% and 48.3% of accounts receivable, before allowances, is due from the Federal Government (Medicare, Medicaid and U.S. Veterans Affairs) at December 31, 2017 and 2016, respectively.

The following tables represent accounts receivable, before allowances, by major payor classification and by aging categories reduced by the allowance for disallowed revenue and allowance for doubtful accounts to accounts receivable, net as of December 31, 2017 and 2016, respectively:

December 31, 2017

(in thousands)	0-60 Days		61-120 Days		121-180 Days		Over 180 Days		Total
Patient Care
Commercial insurance (excluding Medicare and Medicaid Managed Care)	$	50,310	$	11,649	$	6,302	$	15,279	$	83,540
Private pay	880		447		381		1,311		3,019
Medicaid	13,785		3,561		1,832		5,684		24,862
VA	4,578		1,193		552		694		7,017
Non-Medicare	69,553		16,850		9,067		22,968		118,438
Medicare	34,197		5,725		3,396		31,394		74,712
Products & Services	14,316		5,075		1,219		2,884		23,494
Accounts receivable, before allowances	118,066		27,650		13,682		57,246		216,644
Allowance for disallowed revenue									(56,233		)
Allowance for doubtful accounts									(14,065		)
Accounts receivable, net									$	146,346

December 31, 2016

(in thousands)	0-60 Days		61-120 Days		121-180 Days		Over 180 Days		Total
Patient Care
Commercial insurance (excluding Medicare and Medicaid Managed Care)	$	48,568	$	11,677	$	6,050	$	17,453	$	83,748
Private pay	897		547		441		1,034		2,919
Medicaid	13,937		3,554		2,110		5,415		25,016
VA	3,638		875		395		721		5,629
Non-Medicare	67,040		16,653		8,996		24,623		117,312
Medicare	32,980		4,813		3,055		35,675		76,523
Products & Services	16,126		6,690		3,031		1,538		27,385
Accounts receivable, before allowances	116,146		28,156		15,082		61,836		221,220
Allowance for disallowed revenue									(61,137		)
Allowance for doubtful accounts									(15,521		)
Accounts receivable, net									$	144,562

The following table summarizes activities by year for the allowance for disallowed revenue and the allowance for doubtful accounts:

(in thousands)	Allowance for Disallowed Revenue			Allowance for Doubtful Accounts
Balance at December 31, 2014	$	87,192		$	9,944
Additions (1)	60,076			14,515
Reductions	(65,962		)	(9,432		)
Balance at December 31, 2015	81,306			15,027
Additions (1)	48,961			13,727
Reductions	(69,130		)	(13,233		)
Balance at December 31, 2016	61,137			15,521
Additions (1)	36,962			9,423
Reductions	(41,866		)	(10,879		)
Balance at December 31, 2017	$	56,233		$	14,065

(1)The accounts receivables associated with the Dosteon businesses, which are classified as discontinued operations as of each respective date of the consolidated financial statements, were not a part of the disposal transactions.  Therefore the associated allowances, additions, and reductions are included in the above table.  Dosteon’s bad debt expense included in “Income (loss) from discontinued operations, net of income taxes” were $0 million in 2017 and 2016, and $1.7 million in 2015.  Dosteon’s disallowed revenue included in “Income (loss) from discontinued operations, net of income taxes” were $0 million in 2017 and 2016, and $(0.2) million in 2015.