ACCOUNTS RECEIVABLE, NET

6 Months Ended

Jun. 30, 2018

ACCOUNTS RECEIVABLE, NET

ACCOUNTS RECEIVABLE, NET

NOTE C — ACCOUNTS RECEIVABLE, NET

Accounts receivable, net represent 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.  Under ASC 606, our accounts receivables represent amounts outstanding from our gross billings, net of contractual discounts and other implicit price concessions including estimates for payor disallowances, sales returns and patient non-payments.

Under both ASC 606 and ASC 605, disallowed revenue is considered an adjustment to the transaction price.  However, upon adoption of ASC 606, estimated uncollectible amounts due to us by patients are generally considered implicit price concessions and are now presented as a reduction of net revenue.  Under prior guidance, these amounts were recognized as bad debt expense in other operating expenses.

An allowance for doubtful accounts is also recorded for our Products & Services segment which is deducted from gross accounts receivable to arrive at “Accounts receivable, net.”  Accounts receivable, net as of June 30, 2018, and December 31, 2017 is comprised of the following:

	As of June 30, 2018									As of December 31, 2017
(in thousands)	Patient Care			Products &  Services			Consolidated			Patient Care			Products &  Services			Consolidated
Accounts receivable, before allowances	$	173,268		$	25,316		$	198,584		$	193,150		$	23,494		$	216,644
Allowances for estimated implicit price concessions arising from:
Payor disallowances	(52,428		)	—			(52,428		)	(56,233		)	—			(56,233		)
Patient non-payments	(8,335		)	—			(8,335		)	—			—			—
Accounts receivable, gross	112,505			25,316			137,821			136,917			23,494			160,411
Allowance for doubtful accounts	—			(3,742		)	(3,742		)	(9,894		)	(4,171		)	(14,065		)
Accounts receivable, net	$	112,505		$	21,574		$	134,079		$	127,023		$	19,323		$	146,346