Property and equipment are recorded at cost. Depreciation is recorded over the estimated useful life of each class of depreciable asset and is computed using the straight-line method. Leasehold improvements are amortized over the shorter of the estimated asset life or term of the lease. Repairs and maintenance costs are charged to expense as incurred.

The following table sets forth the amounts of property and equipment by each class of depreciable asset as of June 30, 2025 and December 31, 2024:


	June 30, 2025		December 31, 2024
	(in thousands)
Housekeeping and dietary equipment	$	17,995	$	17,052
Computer hardware and software	8,908		8,196
Operating lease — right-of-use assets	29,739		29,669
Other1	1,118		904
Total property and equipment, at cost	57,760		55,821
Less accumulated depreciation2	29,545		27,623
Total property and equipment, net	$	28,215	$	28,198

2.Includes $15.0 million and $13.2 million related to accumulated depreciation on Operating lease – right-of-use assets as of June 30, 2025 and December 31, 2024, respectively.

Depreciation expense for the three and six months ended June 30, 2025 was $3.2 million and $6.4 million, respectively. Depreciation expense for the three and six months ended June 30, 2024 was $3.0 million and $5.9 million, respectively. Of the depreciation expense recorded for the three and six months ended June 30, 2025, $2.1 million and $4.2 million, respectively, was related to the depreciation of the Company’s operating lease - right-of-use assets (“ROU Assets”). Of the depreciation expense recorded for the three and six months ended June 30, 2024, $2.0 million and $3.8 million, respectively, was related to the depreciation of the Company’s operating lease - right-of-use assets.