For legal entities where the Company has a financial relationship, the Company evaluates whether it has a variable interest and determines if the entity is considered a variable interest entity (“VIE”). If the Company concludes an entity is a VIE and the Company is the primary beneficiary, the entity is consolidated. The primary beneficiary analysis is a qualitative analysis based on power and benefits. A reporting entity has a controlling financial interest in a VIE and must consolidate the VIE if it has both power and benefits. It must have the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE that potentially could be significant to the VIE or the right to receive benefits from the VIE that potentially could be significant to the VIE.

At December 31, 2022, the Company operated eight facilities through non-wholly owned subsidiaries. The Company owns between approximately 65% and 86% of the equity interests of these entities, and noncontrolling partners own the remaining equity interests. The Company manages each of these facilities, is responsible for the day to day operations and, therefore, has the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. These activities include, but are not limited to, behavioral healthcare services, human resource and employment-related decisions, marketing and finance. The terms of the agreements governing each of the Company’s VIEs prohibit the Company from using the assets of each VIE to satisfy the obligations of other entities. Consolidated assets at December 31, 2022 and 2021 include total assets of variable interest entities of $434.2 million and $320.6 million, respectively, which cannot be used to settle the obligations of other entities. Consolidated liabilities at December 31, 2022 and 2021 include total liabilities of variable interest entities of $24.4 million and $24.1 million, respectively.

The consolidated VIEs assets and liabilities in the Company’s consolidated balance sheets are shown below (in thousands):

	December 31,
	2022		2021
Cash and cash equivalents	$	32,478	$	26,360
Accounts receivable, net		23,789		20,144
Other current assets		2,561		1,304
Total current assets		58,828		47,808
Property and equipment, net		313,358		220,793
Goodwill		39,564		34,945
Intangible assets, net		16,139		10,490
Operating lease right-of-use assets		6,284		6,603
Total assets	$	434,173	$	320,639
Accounts payable	$	4,650	$	3,690
Accrued salaries and benefits		6,866		5,656
Current portion of operating lease liabilities		233		197
Other accrued liabilities		6,179		6,818
Total current liabilities		17,928		16,361
Operating lease liabilities		6,433		6,666
Other liabilities		—		1,083
Total liabilities	$	24,361	$	24,110