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Allowance for Doubtful Accounts | 12 Months Ended
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Dec. 31, 2024
Receivables [Abstract] |
Allowance for Doubtful Accounts | Note 4 — Allowance for Doubtful Accounts In making the Company’s credit evaluations, management considers the general collection risk associated with trends in the long-term care industry. The Company establishes credit limits through payment terms with customers, performs ongoing credit evaluations and monitors accounts on an aging schedule basis to minimize the risk of loss. Despite the Company’s efforts to minimize credit risk exposure, customers could be adversely affected if future industry trends change in such a manner as to negatively impact their cash flows. As a result, the Company’s future collection experience could differ significantly from historical collection trends. If the Company’s customers experience a negative impact on their cash flows, it could have a material adverse effect on the Company’s results of operations and financial condition. The Company evaluates its accounts and notes receivable for expected credit losses quarterly. Accounts receivable are evaluated based on internally developed credit quality indicators derived from the aging of receivables. Notes receivable are evaluated based on internally developed credit quality indicators derived from management’s assessment of collection risk. At the end of each period, the Company sets a reserve for expected credit losses on standard accounts and notes receivable based on the Company’s historical loss rates. Accounts and notes receivable with an elevated risk profile, which are from customers who have filed bankruptcy or are subject to collections activity, are aggregated and evaluated to determine the total reserve for the class of receivable. Additionally, starting in the year ended December 31, 2024, for notes receivable management evaluates standard receivables based on whether the customer is current (paying within 60 days of terms) or delinquent (paying outside of 60 days of terms). As of December 31, 2024, the Genesis note receivable was classified as delinquent. ASC 326-20 - Financial Instruments - Credit Losses (“ASC 326-20”) permits entities to make an accounting policy election not to measure an estimate for credit losses on accrued interest if those entities write off accrued interest deemed uncollectible in a timely manner. The Company follows an income recognition policy on all interest earned on notes receivable. Under such policy the Company accounts for all notes receivable on a non-accrual basis and defers the recognition of any interest income until receipt of cash payments. This policy was established based on the Company’s history of collections of interest on outstanding notes receivable, as we do not deem it probable that we will receive substantially all interest on outstanding notes receivable. Accordingly, the Company does not record a credit loss adjustment for accrued interest. For the years ended December 31, 2024, 2023 and 2022, the Company recognized $2.8 million, $2.8 million and $1.1 million in interest income from notes receivable, respectively. In 2024, LaVie Care Centers, LLC and certain affiliated entities (“LaVie”), several of which are customers of the Company, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Georgia. The Company increased the allowance for doubtful accounts by $17.6 million related to outstanding LaVie invoices during the year ended December 31, 2024. The Company continues to provide services to LaVie post-petition. The following tables present the Company’s three tiers of notes receivable for the years ended December 31, 2024 and 2023, respectively, further disaggregated by year of origination, as well as write-off activity:
|  | Notes Receivable as of December 31, 2024
|  | Amortized Cost Basis by Origination Year
|  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Total
|  | (in thousands)
Notes Receivable |  |  |  |  |  |  |  |  |  |  |  |  |  |
Standard notes receivable |  | $ | 53,592 |  |  | $ | 7,282 |  |  | $ | 15,743 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 76,617 |
Delinquent notes receivable |  | $ | 499 |  |  | $ | 1,055 |  |  | $ | 1,942 |  |  | $ | 671 |  |  | $ | — |  |  | $ | 21,933 |  |  | $ | 26,100 |
Elevated risk notes receivable |  | $ | — |  |  | $ | 1,537 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,491 |  |  | $ | — |  |  | $ | 3,028 |
Current-period gross write-offs |  | $ | — |  |  | $ | 742 |  |  | $ | 483 |  |  | $ | 3,024 |  |  | $ | — |  |  | $ | 26 |  |  | $ | 4,275 |
Current-period recoveries |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current-period net write-offs |  | $ | — |  |  | $ | 742 |  |  | $ | 483 |  |  | $ | 3,024 |  |  | $ | — |  |  | $ | 26 |  |  | $ | 4,275 |
|  | Notes Receivable as of December 31, 2023
|  | Amortized Cost Basis by Origination Year
|  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Total
|  | (in thousands)
Notes Receivable |  |  |  |  |  |  |  |  |  |  |  |  |  |
Standard notes receivable 1 |  | $ | 18,175 |  |  | $ | 25,505 |  |  | $ | 855 |  |  | $ | 1,529 |  |  | $ | 3 |  |  | $ | 21,033 |  |  | $ | 67,100 |
Elevated risk notes receivable |  | $ | — |  |  | $ | — |  |  | $ | 7,259 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 7,259 |
Current-period gross write-offs |  | $ | — |  |  | $ | 189 |  |  | $ | — |  |  | $ | — |  |  | $ | 50 |  |  | $ | 2,253 |  |  | $ | 2,492 |
Current-period recoveries |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current-period net write-offs |  | $ | — |  |  | $ | 189 |  |  | $ | — |  |  | $ | — |  |  | $ | 50 |  |  | $ | 2,253 |  |  | $ | 2,492 |
1.The Company did not identify delinquent notes receivable as a separate loss pool during the year ended December 31, 2023. The following tables provide information as to the status of payment on the Company’s gross notes receivable which were past due as of December 31, 2024 and 2023, respectively:
|  | Age Analysis of Past-Due Notes Receivable as of December 31, 2024
|  | 0-90 Days |  | 91 - 180 Days |  | Greater than 181 Days |  | Total
|  | (in thousands)
Notes Receivable |  |  |  |  |  |  |  |
Standard notes receivable |  | $ | 142 |  |  | $ | — |  |  | $ | — |  |  | $ | 142 |
Delinquent notes receivable 1 |  | 761 |  |  | 682 |  |  | 23,151 |  |  | 24,594 |
Elevated risk notes receivable |  | 225 |  |  | 225 |  |  | 2,429 |  |  | 2,879 |
|  | $ | 1,128 |  |  | $ | 907 |  |  | $ | 25,580 |  |  | $ | 27,615 |
1.Included within the Delinquent notes receivable past-due balance is the entire balance of notes receivable due from Genesis.
|  | Age Analysis of Past-Due Notes Receivable as of December 31, 2023
|  | 0-90 Days |  | 91 - 180 Days |  | Greater than 181 Days |  | Total
|  | (in thousands)
Notes Receivable |  |  |  |  |  |  |  |
Standard notes receivable 1 |  | $ | 3,851 |  |  | $ | 4,852 |  |  | $ | 6,914 |  |  | $ | 15,617 |
Elevated risk notes receivable |  | 569 |  |  | 569 |  |  | 949 |  |  | 2,087 |
|  | $ | 4,420 |  |  | $ | 5,421 |  |  | $ | 7,863 |  |  | $ | 17,704 |
1.The Company did not identify delinquent notes receivable as a separate loss pool during the year ended December 31, 2023. The following tables provide a summary of the changes in the Company’s allowance for doubtful accounts on a portfolio segment basis for the years ended December 31, 2024 and 2023, respectively:
|  | Allowance for doubtful accounts
Portfolio Segment: |  | December 31, 2023 |  | Reclassifications 1 |  | Write-Offs 2 |  | Bad Debt Expense |  | December 31, 2024
|  | (in thousands)
Accounts receivable |  | $ | 80,819 |  |  | $ | — |  |  | $ | (33,402) |  |  | $ | 40,103 |  |  | $ | 87,520 |
Notes receivable |  |  |  |  |  |  |  |  |  |
Standard notes receivable |  | $ | 6,125 |  |  | $ | (2,615) |  |  | $ | — |  |  | $ | 1,586 |  |  | $ | 5,096 |
Delinquent notes receivable 1 |  | — |  |  | 2,615 |  |  | (1,252) |  |  | 4,663 |  |  | 6,026 |
Elevated risk notes receivable |  | 4,755 |  |  | — |  |  | (3,023) |  |  | 408 |  |  | 2,140 |
Total notes receivable |  | $ | 10,880 |  |  | $ | — |  |  | $ | (4,275) |  |  | $ | 6,657 |  |  | $ | 13,262 |
Total accounts and notes receivable |  | $ | 91,699 |  |  | $ | — |  |  | $ | (37,677) |  |  | $ | 46,760 |  |  | $ | 100,782 |
1.Delinquent notes receivable were identified as a new loss pool during the year ended December 31, 2024. 2.Write-offs are shown net of recoveries. During the year ended December 31, 2024, the Company collected $0.1 million of accounts receivables that were recovered subsequent to being written-off.
|  | Allowance for doubtful accounts
Portfolio Segment: |  | December 31, 2022 |  | Write-Offs 1 |  | Bad Debt Expense |  | December 31, 2023
|  | (in thousands)
Accounts receivable |  | $ | 66,601 |  |  | $ | (14,877) |  |  | $ | 29,095 |  |  | $ | 80,819 |
Notes receivable |  |  |  |  |  |  |  |
Standard notes receivable 2 |  | $ | 6,052 |  |  | $ | (1,646) |  |  | $ | 1,719 |  |  | $ | 6,125 |
Elevated risk notes receivable |  | 811 |  |  | (846) |  |  | 4,790 |  |  | 4,755 |
Total notes receivable |  | $ | 6,863 |  |  | $ | (2,492) |  |  | $ | 6,509 |  |  | $ | 10,880 |
Total accounts and notes receivable |  | $ | 73,464 |  |  | $ | (17,369) |  |  | $ | 35,604 |  |  | $ | 91,699 |
1.Write-offs are shown net of recoveries. During the year ended December 31, 2023, the Company collected $0.2 million of accounts receivables that were recovered subsequent to being written-off. 2.The Company did not identify delinquent notes receivable as a separate loss pool during the year ended December 31, 2023.

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