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SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
COVID-19
On March 27, 2020, the U.S. government enacted the CARES Act to provide relief during the COVID-19 pandemic. The CARES Act authorized $100 billion in funding to healthcare entities to be distributed through the Public Health and Social Services Emergency Fund ("PHSSEF"). Payments from PHSSEF are intended to compensate providers for lost revenues and healthcare-related expenses attributable to the COVID-19 pandemic. These payments are not required to be repaid, provided the recipients attest to and comply with certain terms and conditions, including not using PHSSEF funds to reimburse expenses or losses that other sources are obligated to reimburse. The Company will utilize these funds to pay for COVID-19 related expenses that includes but is not limited to increased wages and increased costs for personal protective equipment and other supplies.
In April, the Company received approximately $9,000 of Medicare stimulus funds and is expecting to receive an additional $700 in the second quarter of 2020. Additionally, the Families First Coronavirus Response Act provided states with a temporary increase in the regular federal matching rate, or federal medical assistance percentage, used to determine the federal government's share of the cost of covered services in state Medicaid programs, provided the states agreed to certain conditions such as not imposing cost-sharing requirements for COVID-19-related testing and treatment. The Company received $900 of Medicaid dollars related to this temporary increase in the federal matching rate, which related to March 2020 and is reflected in "patient revenues, net" in the Company's results of operations for the three month period ended March 31, 2020. Also, the Company has elected to participate in the payment deferral of employer payroll taxes during 2020.
Additional emergency appropriations are being made available to eligible providers under the Paycheck Protection Program and Health Care Enhancement Act ("PPPHCE Act"), which was enacted on April 24, 2020. These funds will be distributed through the PHSSEF. Recipients will not be required to repay the government for funds received, provided they comply with terms and conditions, which have not yet been finalized.
Since the end of the quarter, there have been additional cases of COVID-19 at certain of the Company's centers. The Company has continued to experience reduced occupancy and increased operating expenses at its centers in the form or increased wages and increased cost for personal protective equipment, food and certain other supplies. The Company expects such increased expenses to continue and likely increase further during the remainder of 2020.
Debt Amendment
Effective April 3, 2020, the Company entered into a Seventh Amendment ("Seventh Amendment") to amend the Amended Mortgage Loan, a Ninth Amendment ("Ninth Amendment") to amend the Amended Revolver and a Second Amendment ("Second Amendment") to the affiliated revolver. The Seventh Amendment removes the reserve of $2,100 on the Acquisition Loan availability, and therefore, our borrowing capacity is now $12,500. The Ninth Amendment and Second Amendment increases the eligible days of qualifying accounts receivable from 120 days to 150 days for the purposes of calculating our borrowing capacity on the revolvers. The new LIBOR base rate is 0.5%.