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Divestiture of Business
 12 Months Ended
Dec. 31, 2013
Discontinued Operations And Disposal Groups [Abstract]  
Divestiture of Business

4. Divestiture of Business

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, including the operating results, from discontinued operations reported for the physician services business (in thousands):

 

     For the Year Ended December 31,  
     2013     2012     2011  

Net revenues

    $ 864      $ 2,435      $ 5,483   

Operating costs

      1,537        2,761        702   
  

 

 

    

 

 

    

 

 

  

Gross margin

      (673 )      (326 )      4,781   

Direct general and administrative expenses less proceeds

      1,176        278        278   

Write off of goodwill and other intangible assets

      6,338        —          —     
  

 

 

    

 

 

    

 

 

  
     (8,187 )      (604 )      4,503   

Tax benefit (provision)

      3,180        181        (1,399 ) 
  

 

 

    

 

 

    

 

 

  

(Loss) income from discontinued operations

    $ (5,007 )    $ (423 )    $ 3,104   
  

 

 

    

 

 

    

 

 

  

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.