4. Accounts Receivable

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Accounts Receivable

Accounts receivable at December 31, 2016 and 2015 consisted of the following:

	Year Ended December 31,
	2016			2015
Accounts receivable - laboratory services	$	13,220,498		$	105,332,339
Accounts receivable - all others		701,583			569,351
Total accounts receivable		13,922,081			105,901,690
Less:
Allowance for discounts		(12,103,547	)		(97,577,130	)
Allowance for bad debts		(350,954	)		(175,076	)
Accounts receivable, net	$	1,467,580		$	8,149,484

For the years ended December 31, 2016 and 2015, bad debt expense was $3.6 million and $19.6 million, respectively, of which amounts $0 and $19.5 million, respectively were classified as contra-revenue. During the year ended December 31, 2016, the Company identified certain accounts receivable related to its Clinical Laboratory Operations business segment that were deemed uncollectible. The primary factors in rendering these receivables uncollectible were the Company’s failure to obtain preauthorization from the third party payer prior to rendering services and the lack of an existing preferred provider contract with the third party payer. As a result, the Company recorded a charge of $3.5 million related to the Company’s inability to collect on these receivables, which is reflected in bad debt expense in the accompanying consolidated statements of operations.