XML 28 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
DISCONTINUED OPERATIONS
 9 Months Ended
Sep. 30, 2013
Discontinued Operations And Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS

5. DISCONTINUED OPERATIONS

On September 30, 2013, the Company sold the remainder of its physician services business. Previously, the Company closed its two physician services facilities – one in August 2013 and the other in December 2012. As previously disclosed in the Company’s public filings, the physician services business incurred negative gross margins in 2012 and through the first nine months of 2013. Revenues from physician services were generated by patient visits, franchise arrangements and fees from third parties. The results of operations and the loss on the sale of the physician services business have been reclassified to discontinued operations for all periods presented.

The Company received $400,000 cash and a note receivable of $500,000. The sale less the write-off of assets, primarily of goodwill and other intangible assets, and recording of appropriate accruals resulted in an after-tax loss of $4.4 million.

The following table details the losses from discontinued operations reported for the physician services business:

 

     Three Months Ended     Nine Months Ended  
     September 30,     September 30,  
     2013     2012     2013     2012  

Net revenues

    $ 168      $ 750      $ 864      $ 2,123   

Operating costs

      369        822        1,537        2,157   
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin

      (201 )      (72 )      (673 )      (34 ) 

Direct general and administrative expenses less proceeds

      989        71        1,176        210   

Write off of goodwill and other intangible assets

      6,338        —          6,338        —     
  

 

 

    

 

 

    

 

 

    

 

 

  
     (7,528 )      (143 )      (8,187 )      (244 ) 

Tax benefit

      3,031        39        3,222        60   
  

 

 

    

 

 

    

 

 

    

 

 

  

Loss from discontinued operations

    $ (4,497 )    $ (104 )    $ (4,965 )    $ (184 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

The cash flow impact of the sale and closures is deemed immaterial for the consolidated statements of cash flows. The reclassifications on the consolidated balance sheet as of December 31, 2012 are also deemed immaterial.