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Impairment of Long-lived Assets
12 Months Ended
Dec. 31, 2012
Impairment of Long-lived Assets [Abstract]  
Impairment of Long-lived Assets
Impairment of Long-lived Assets

The Company evaluates the recovery of its long-lived assets when events or changes in circumstances occur that indicate that the carrying value of assets may not be recoverable.

In June 2012, the Company's Portamedic service line deployed its new model for delivering paramedical exam services. This new model utilizes the following internal use software (i) Partnerlink, a workflow system for Portamedic's operations, (ii) ePortamedic.com, a web-based ordering system, and (iii) iParamed e-Exam platform, whereby the Company's health professionals utilize an iParamed equipped netbook to complete exams. When deployed in June 2012, the new Portamedic delivery model was expected by management to reduce costs and improve service leading to an improvement in past revenue declines. In the third quarter of 2012, although cost reductions were achieved, Portamedic revenue declined at a higher year-over-year rate in comparison to the first half of 2012 revenue declines. Given the complexity of the new delivery model (branch office closures, centralization of services), management believed it was too soon to assess the longer term impact on revenues. However in the fourth quarter of 2012 and continuing in 2013, Portamedic revenue declines continued at higher rates compared to pre-June 2012 revenue declines, thus triggering the Company to perform an impairment evaluation of the above described long-lived assets. Additionally, the Company performed an impairment evaluation of the long-lived assets of its Hooper Holmes Services service line, specifically within this service line, the APS and tele-underwriting assets.

The evaluation resulted in the determination that the carrying values of the above long-lived assets exceeded their projected undiscounted net cash flows. With the assistance of an independent valuation firm, the Company calculated the fair values of these long-lived assets. The fair values were determined based on discounted cash flows and indicated that an impairment existed for each of these Portamedic, APS and tele-underwriting long-lived assets. Accordingly, the Company recorded an impairment charge totaling $5.1 million which is included in impairment of long-lived assets in the accompanying consolidated statement of operations for the year ended December 31, 2012.

In connection with the 2012 restructure of Portamedic's operations, the Company recorded charges totaling $0.2 million related to the impairment of fixed assets for branch offices closed primarily during the second quarter of 2012. These charges are included in impairment of long-lived assets in the accompanying consolidated statement of operations for the year ended December 31, 2012.