CONCENTRATION OF CREDIT RISK |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONCENTRATION OF CREDIT RISK | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONCENTRATION OF CREDIT RISK | 4.CONCENTRATION OF CREDIT RISK Financial instruments that potentially subject us to possible credit risk consist principally of accounts receivable and cash deposits in excess of insured limits. Accounts receivable consist of amounts due from patients, their insurers, or governmental agencies for health care provided to the patients. The majority of patients are from Minnesota, Wisconsin, and Arizona. The mix of receivables from patients and third-party payors are as follows:
One third-party payor and their affiliated entities accounted for approximately 29% and approximately 30% of our condensed consolidated net revenue for the three months ended June 30, 2026 and 2025, respectively, and approximately 30% and 28% for the six months ended June 30, 2026 and 2025, respectively. Accounts receivable from one third-party payor and their affiliated entities accounted for approximately 26% and approximately 23% of total accounts receivable at June 30, 2026 and December 31, 2025, respectively. We maintain a depository relationship with one primary financial institution. Operating cash requirements frequently require that amounts on deposit exceed Federal Deposit Insurance Corporation limits. We believe this financial institution has a strong credit rating and that credit risk related to these deposits is minimal. As of June 30, 2026 and December 31, 2025, cash deposits in excess of the federally insured amounts were $23,819 and $24,618, respectively. |
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