| Basis of Presentation and Significant Accounting Policies | NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated and combined financial statements and accompanying notes of the Company presented herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These financial statements should be read in conjunction with the Company’s Registration Statement on Form 10, as amended, initially filed with the Securities and Exchange Commission (“SEC”) on September 4, 2015 and declared effective on April 4, 2016 (the “Form 10”), which includes combined financial statements and accompanying notes as of December 31, 2015 and 2014 and for each of the three years ended December 31, 2015, 2014 and 2013. In the opinion of the Company’s management, the condensed consolidated and combined financial information presented herein includes all adjustments necessary to present fairly the results of operations, financial position and cash flows of the Company for the interim periods presented. Results of operations for interim periods should not be considered indicative of the results of operations expected for the full year. Certain information and disclosures have been condensed or omitted as presented herein and as permitted by the rules and regulations of the SEC for interim period presentation. The Company’s management believes the financial statements and disclosures presented herein are adequate in order to make the information not misleading. Prior to its separation from CHS on April 29, 2016, QHC did not operate as a separate company and stand-alone financial statements were not historically prepared; however, QHC was comprised of certain stand-alone legal entities for which discrete financial information was available under CHS’ ownership. The accompanying consolidated and combined financial statements include amounts and disclosures for QHC that have been derived from the consolidated financial statements and accounting records of CHS for the periods prior to the Spin-off Transaction in combination with the amounts and disclosures related to the stand-alone financial statements and accounting records of QHC after the Spin-off Transaction. The accompanying consolidated and combined financial statements may not necessarily be indicative of the results of operations, financial position and cash flows of QHC in the future or those that would have occurred had the Company operated on a stand-alone basis during the entirety of the periods presented herein. See Note 16 – Related Party Transactions for additional information on the carve-out of financial information from CHS. Principles of Consolidation and Combination The consolidated and combined financial statements include the accounts of the Company and its subsidiaries in which it holds either a direct or indirect ownership of a majority voting interest. These investments in less-than-wholly-owned consolidated subsidiaries of QHC are presented separately in the equity component of the consolidated and combined balance sheets to distinguish between the interests of QHC and the interests of the noncontrolling investors. Revenues and expenses from these subsidiaries are included in the respective individual line items of the Company’s consolidated and combined statements of income, and net income is presented both in total and separately to show the amounts attributable to the Company and the amounts attributable to the interests of the noncontrolling investors. Noncontrolling interests that are redeemable, or may become redeemable at a fixed or determinable price at the option of the holder or upon the occurrence of an event outside of the control of the Company, are presented in mezzanine equity on the consolidated and combined balance sheets. All significant intercompany transactions and accounts of the Company are eliminated in consolidation. Additionally, all significant transactions with CHS that occurred prior to the Spin-off Transaction have been included in the consolidated and combined balance sheets within Due to Parent, net. This liability to CHS was settled in the Spin-off Transaction. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation as follows: The Company reclassified third-party final cost report settlement receivables and state supplemental payment program receivables to amounts due from and due to third-party payors on its consolidated and combined balance sheets. Third-party final cost report settlement receivables were previously classified as other current assets, and the cost report settlement liabilities were previously classified as other current liabilities. Accounts receivable from state supplemental payment programs were previously classified as patient accounts receivable, and the amounts owed related to these programs was classified as other current liabilities. The Company believes the current presentation helps distinguish between amounts due related to a specific patient service and amounts due from or owed by the Company related to state supplemental payment programs. The Company reclassified intangible assets to present them separately on its consolidated and combined balance sheets for all periods presented. Previously, these amounts were classified as a component of other long-term assets. The Company believes that this presentation helps distinguish the portion of other long-term assets which are intangible assets. The Company reclassified equity in earnings of unconsolidated subsidiaries to other operating expenses in the consolidated and combined statements of income. Previously, these amounts were classified as non-operating income. These amounts are immaterial to the Company. This change in classification has no effect on the Company’s results of operations or cash flows included in previously issued consolidated and combined financial statements. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated and combined financial statements and accompanying notes. Actual results could differ from those estimates under different assumptions or conditions. Revenues and Accounts Receivable Revenue Recognition The Company recognizes revenues from patient services at its hospitals and affiliated facilities in the period services are performed and reports these revenues at their net realizable amount expected to be collected from patients and third-party payors. The amounts that the Company collects for patient services are generally less than established billing rates, or standard billing charges, due to contractual agreements with third-party payors, governmental programs that require reduced billing rates, discounts offered as incentives for payment, and a portion related to bad debts. The Company recognizes revenues related to its QHR business when management advisory and consulting services are provided and reports these revenues at their net realizable amount expected to be collected from the non-affiliated hospital clients. A summary of the components of operating revenues before the provision for bad debts follows (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2016
2015
2016
2015
Operating revenues
$
3,042,786
$
2,923,172
$
6,123,439
$
5,771,609
Less: Contractual allowances
(2,335,554
)
(2,224,369
)
(4,696,589
)
(4,383,729
)
Less: Discounts
(109,069
)
(90,167
)
(214,203
)
(172,772
)
Total operating revenues, net of contractual allowances and discounts
$
598,163
$
608,636
$
1,212,647
$
1,215,108
Payor Sources The primary sources of payment for patient healthcare services are third-party payors, including federal and state agencies administering the Medicare and Medicaid programs, other governmental agencies, managed care health plans, commercial insurance companies, workers’ compensation carriers and employers. Self-pay revenues are the portion of patient service revenues derived from patients that do not have health insurance coverage and the patient responsibility portion of services that is not covered by health insurance plans. Non-patient revenues include revenues from QHR’s hospital management advisory and consulting services business, rental income and hospital cafeteria sales. A summary of operating revenues by payor source follows (dollars in thousands):
Three Months Ended June 30,
2016
2015
$ Amount
% of Total
$ Amount
% of Total
Medicare
$
167,549
28.0
%
$
156,649
25.7
%
Medicaid
113,283
18.9
%
103,972
17.1
%
Managed care and commercial
230,595
38.6
%
259,984
42.7
%
Self-pay
59,171
9.9
%
57,181
9.4
%
Non-patient
27,565
4.6
%
30,850
5.1
%
Total operating revenues, net of contractual allowances and discounts
$
598,163
100.0
%
$
608,636
100.0
%
Six Months Ended June 30,
2016
2015
$ Amount
% of Total
$ Amount
% of Total
Medicare
$
343,083
28.3
%
$
331,373
27.3
%
Medicaid
216,351
17.8
%
208,306
17.1
%
Managed care and commercial
474,879
39.2
%
495,752
40.8
%
Self-pay
123,925
10.2
%
120,095
9.9
%
Non-patient
54,409
4.5
%
59,582
4.9
%
Total operating revenues, net of contractual allowances and discounts
$
1,212,647
100.0
%
$
1,215,108
100.0
% As of June 30, 2016, the Company began classifying its revenues related to Medicare Managed Care Advantage Plans as Medicare revenues. As a result, the Company retroactively reclassified these amounts from managed care and commercial revenues to Medicare revenues for all periods presented in the tables above. The revenues from Medicare Managed Care Advantage Plans that were reclassified were $43.4 million and $35.5 million for the three months ended June 30, 2016 and 2015, respectively, and $85.1 million and $72.1 million for the six months ended June 30, 2016 and 2015, respectively. Contractual Allowances and Discounts The net realizable amount of patient service revenues due from third-party payors is subject to complexities and interpretations of payor-specific contractual agreements and governmental regulations that are frequently changing. The Medicare and Medicaid programs, which represent a large portion of the Company’s operating revenues, are highly complex programs to administer and subject to interpretation of federal and state-specific reimbursement rates, new legislation and final cost report settlements. Contractual allowances, or differences in standard billing rates and the payments derived from contractual terms with governmental and non-governmental third–party payors, are recorded based on management’s best estimates in the period in which services are performed and a payment methodology is established with the patient. Recorded estimates for past contractual allowances are subject to change, in large part, due to ongoing contract negotiations and regulation changes, which is typical in the healthcare industry. Revisions to estimates are recorded in the periods in which they become known and may be subject to further revisions. Self-pay and other payor discounts are incentives offered to uninsured or underinsured payors to reduce their costs of healthcare services with the purpose of maximizing the Company’s collection efforts. Third-Party Program Reimbursements Cost report settlements under reimbursement programs with Medicare, Medicaid and other managed care plans are estimated and recorded in the period the related services are performed and are adjusted in future periods, as needed, until the final cost report settlements are determined. Currently, several states utilize supplemental payment programs, including disproportionate share programs, for the purpose of providing reimbursement to providers to offset a portion of the cost of providing care to Medicaid and indigent patients. These programs are designed with input from Centers for Medicare and Medicaid Services (“CMS”) and funded with a combination of federal and state resources, including, in certain instances, taxes, fees or other program costs (collectively, “provider taxes”) levied on the providers. Similar programs are also currently being considered by other states. These amounts are included in due from and due to third-party payors in the consolidated and combined balance sheets, respectively. Previously, amounts due from third parties related to these programs were included in patient accounts receivable, and the provider taxes owed were included in other current liabilities in the consolidated and combined balance sheets. The following table summarizes the components of amounts due from and due to third-party payors, as presented in the consolidated and combined balance sheets (in thousands):
June 30,
December 31,
2016
2015
Amounts due from third-party payors:
Previous program reimbursements and final cost report settlements
$
29,438
$
33,732
State supplemental payment programs
87,327
77,074
Total amounts due from third-party payors
$
116,765
$
110,806
Amounts due to third-party payors:
Previous program reimbursements and final cost report settlements
$
31,961
$
21,015
State supplemental payment programs
9,253
9,088
Total amounts due to third party payors
$
41,214
$
30,103
After a state supplemental payment program is approved and fully authorized by the appropriate state legislative or governmental agency, the Company recognizes revenue and related expenses based on the terms of the program in the period in which amounts are estimable and revenue collection is reasonably assured. The revenues earned by the Company under these programs are included in net operating revenues and the expenses associated with these programs are included in other operating expenses in the consolidated and combined statements of income. The table below summarizes the impact on income (loss) from operations related to state supplemental payment programs (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2016
2015
2016
2015
State supplemental payment programs:
Revenues
$
55,105
$
49,838
$
107,320
$
105,217
Expenses
18,604
19,324
38,030
38,493
Total operating income from state supplemental payment programs
$
36,501
$
30,514
$
69,290
$
66,724
Charity Care In the ordinary course of business, the Company provides services to patients who are financially unable to pay for hospital care. The related charges for those patients who are financially unable to pay and that otherwise do not qualify for reimbursement from a governmental program are classified as charity care. The Company determines amounts that qualify for charity care primarily based on the patient’s household income relative to the poverty level guidelines established by the federal government. The Company’s policy is to not pursue collections for such amounts; therefore, the related charges are recorded in operating revenues at the standard billing rates and fully offset in contractual allowances. The gross amounts of charity care revenues were $7.0 million and $6.3 million for the three months ended June 30, 2016 and 2015, respectively, and $14.8 million and $13.3 million for the six months ended June 30, 2016 and 2015, respectively. The estimated cost of providing charity care services is determined using a ratio of cost to gross charges and applying this ratio to the gross charges associated with providing care to charity patients for the period. The Company recorded charity care costs of $1.2 million and $1.1 million for the three months ended June 30, 2016 and 2015, respectively, and $2.4 million and $2.3 million for the six months ended June 30, 2016 and 2015, respectively. To the extent the Company receives reimbursement through any of the various governmental assistance programs in which it participates to subsidize its care of indigent patients, the Company does not include these patients’ charges in its cost of care provided under its charity care program. Accounts Receivable and Allowance for Doubtful Accounts Substantially all of the Company’s receivables are related to providing healthcare services to patients at its hospitals and affiliated businesses. As of June 30, 2016, the Company retroactively reclassified receivables related to state supplemental payment programs from patient accounts receivable to due from and due to third-party payors in the consolidated and combined balance sheet. The net amounts reclassified were $78.1 million and $68.0 million as of June 30, 2016 and December 31, 2015, respectively. See the Reclassifications accounting policy above for additional information on reclassification adjustments made by the Company as of June 30, 2016. A summary of the components of accounts receivable before contractual allowances, discounts and allowance for doubtful accounts follows (dollars in thousands):
June 30, 2016
December 31, 2015
Amount
% of Total
Amount
% of Total
Third-parties
$
1,831,940
74.5
%
$
1,688,138
72.6
%
Self-pay
626,662
25.5
%
638,694
27.4
%
Total accounts receivable, gross
$
2,458,602
100.0
%
$
2,326,832
100.0
% Accounts receivable are reduced by an allowance for amounts that could become uncollectible in the future. The Company estimates the allowance for doubtful accounts by reserving a percentage of all self-pay accounts receivable without regard to aging category, based on collection history, adjusted for expected recoveries and any anticipated changes in trends. The Company’s ability to estimate the allowance for doubtful accounts is not significantly impacted by the aging of accounts receivable, as management believes that substantially all of the risk exists at the point in time such accounts are identified as self-pay. The percentage used to reserve for self-pay accounts receivable is based on the Company’s collection history. For insured receivables, which are the non-self-pay receivables, the Company estimates the allowance for doubtful accounts based on historical collection rates for the uncontractualized portion of all accounts aging over 365 days from the date of patient discharge. In general, allowances for insured receivables are an immaterial percentage of the Company’s total accounts receivable. The Company collects substantially all of its third-party insured receivables, which include receivables from governmental agencies. A summary of the changes in the allowance for doubtful accounts follows (in thousands):
Six Months Ended
June 30, 2016
Balance at beginning of period
$
346,507
Provision for bad debts
133,359
Amounts written off, net of recoveries
(142,613
)
Balance at end of period
$
337,253
Collections are impacted by the economic ability of patients to pay and the effectiveness of CHS’ collection efforts, including their current policies on collections, and the ability of the Company to further attempt collection efforts. Billings and collections are outsourced to CHS under the transition service agreements that were put in place with the Spin-off Transaciton. See Note 16 – Related Party Transactions for additional information on these agreements. Significant changes in payor mix, centralized business office operations, economic conditions or trends in federal and state governmental healthcare coverage, among others, could affect the Company’s estimates of accounts receivable collectability. The Company also continually reviews its overall allowance adequacy by monitoring historical cash collections as a percentage of trailing net operating revenues after the provision for bad debts, as well as by analyzing current period net operating revenues and admissions by payor classification, aged accounts receivable by payor, days revenue outstanding, the composition of self-pay receivables between pure self-pay patients and the patient responsibility portion of third-party insured receivables, and the impact of recent acquisitions and dispositions. Concentration of Credit Risk The Company grants unsecured credit to its patients, most of which reside in the service area of the Company’s hospitals and affiliated facilities and are insured under third-party payor agreements. Because of the economic diversity of the Company’s markets and non-governmental third-party payors, Medicare represents the only significant concentration of credit risk from payors. Accounts receivable, net of contractual allowances, from Medicare were $75.4 million and $67.7 million, or 10.3% and 9.2% of total consolidated and combined patient accounts receivable, net, as of June 30, 2016 and December 31, 2015, respectively. The Company’s revenues are particularly sensitive to regulatory and economic changes in certain states where the Company generates significant revenues. Accordingly, any changes in the current demographic, economic, competitive or regulatory conditions in certain states in which our revenues are significant could have an adverse effect on the Company’s results of operations, financial condition or cash flows. Changes to the Medicaid and other government-managed payor programs, including reductions in reimbursement rates or delays in reimbursement payments under state supplemental or other programs, in these states could also have a similar adverse effect. A summary of the states in which the Company generates more than 5% of total net patient revenues before the provision for bad debts, as determined based on the six months ended June 30, 2016 and 2015, follows (dollars in thousands):
Six Months Ended June 30,
Number of
2016
2015
Hospitals
$ Amount
% of Total
$ Amount
% of Total
Illinois
9
$
399,049
34.5
%
$
405,390
35.1
%
Oregon
1
104,810
9.0
%
92,962
8.0
%
Georgia
4
107,469
9.3
%
113,055
9.8
%
California
2
101,562
8.8
%
104,397
9.0
%
Kentucky
3
59,375
5.1
%
63,406
5.5
% Other Operating Expenses A summary of the major components of other operating expenses follows (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2016
2015
2016
2015
Purchased services
$
62,477
$
59,041
$
124,218
$
116,406
Taxes and insurance
34,261
31,534
69,567
59,339
Medical specialist fees
25,182
20,579
49,532
40,267
Repairs and maintenance
10,730
11,562
21,966
23,296
Utilities
7,001
7,038
14,156
14,367
Management fees from Parent
2,966
9,048
11,792
17,964
Other miscellaneous operating expenses
20,568
20,009
36,417
39,412
Total other operating expenses
$
163,185
$
158,811
$
327,648
$
311,051
The Company began recording costs associated with the transition services agreements and other ancillary agreements with CHS following the Spin-off Transaction in accordance with the terms of these agreements. These costs, which primarily include the costs of providing information technology, patient billing and collections and payroll services, are included in purchased services in the table above. Prior to the Spin-off Transaction, CHS allocated costs for these services to QHC, which were also included in purchased services during the carve-out period. Prior to the Spin-off Transaction, QHC recorded a monthly corporate management fee from CHS that represented a portion of CHS’ corporate office costs and was included in other operating expenses prior to the Spin-off Transaction. The costs for corporate office functions are primarily included in salaries and benefits expenses following the Spin-off Transaction. See Note 16 – Related Party Transactions for additional information on the allocated costs from CHS. General and Administrative Costs Substantially all of the Company’s operating costs and expenses are “cost of revenues” items. Operating expenses that could be classified as general and administrative by the Company are costs related to corporate office functions, including, but not limited to tax, treasury, audit, risk management, legal, investor relations and human resources. These costs are primarily salaries and benefits expenses associated with corporate office functions. General and administrative costs of the Company were $11.7 million and $11.1 million during the three months ended June 30, 2016 and 2015, respectively, and $23.7 million and $22.1 million during the six months ended June 30, 2016 and 2015, respectively. Prior to the Spin-off Transaction, the majority of these costs were allocations from CHS. See Note 16 – Related Party Transactions for additional information on the allocated costs from CHS. Electronic Health Records Incentives Earned Pursuant to the Health Information Technology for Economic and Clinical Health Act (“HITECH”), the Company is eligible to receive incentive payments under the Medicare and Medicaid programs for its eligible hospitals and physician clinics that demonstrate meaningful use of certified Electronic Health Records (“EHR”) technology. Each of the Company’s eligible hospitals and physician clinics have completed the initial adoption phase of EHR implementation and are currently in the process of implementing the remaining two phases. EHR incentive payments are subject to audit and potential recoupment if it is determined that the applicable meaningful use standards were not met and are also subject to retrospective adjustment because the cost report data upon which the incentive payments are based are further subject to audit. The Company utilizes a gain contingency model to recognize EHR incentive payments. When the recognition criteria have been fully met, the Company recognizes the income from EHR incentives payments as a part of other operating costs and expenses in the consolidated and combined statements of income. Medicaid EHR incentive payments are calculated based on prior period Medicare cost report information available at the time when eligible hospitals demonstrate meaningful use of certified EHR technology. Medicare EHR incentive payments are calculated when eligible hospitals demonstrate meaningful use of certified EHR technology and the information for the applicable full Medicare cost report year to determine the final incentive payment is available. In some instances, the Company may receive estimated Medicare EHR incentive payments prior to when the Medicare cost report information used to determine the final incentive payment is available. In these instances, recognition of the income from EHR incentive payments is deferred until all recognition criteria are met. The Company recognizes r eceivables for EHR incentive payments that have been earned, but are uncollected at period end, as other current assets in the consolidated and combined balance sheets. The receivables are adjusted for any known audit or retrospective adjustments related to prior periods. Deferred revenue from EHR incentive payments is recorded in other current liabilities in the consolidated and combined balance sheets. The Company incurs both capital expenditures and operating expenses in connection with the implementation of EHR technology initiatives. The amount and timing of these expenditures does not directly correlate with the timing of the Company’s receipt or recognition of EHR incentive payments as earned. As the Company completes its full implementation of certified EHR technology in accordance with all three phases of the program, its EHR incentive payments will decline and ultimately end. A summary of activity related to EHR incentives follows (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2016
2015
2016
2015
Electronic health records incentives receivable at beginning of period
$
5,885
$
6,822
$
11,227
$
12,204
Electronic health records incentives earned
608
1,236
4,816
4,775
Cash incentive payments received
(5,124
)
(1,396
)
(12,749
)
(8,220
)
Adjustments to receivable based on final cost report settlement or audit
604
(814
)
(1,321
)
(2,911
)
Electronic health records incentives receivable at end of period
$
1,973
$
5,848
$
1,973
$
5,848
Deferred revenue related to electronic health records incentives at beginning of period
$
(4,693
)
$
(10,183
)
$
-
$
(14,351
)
Cash received and deferred during period
-
-
(4,693
)
-
Recognition of deferred incentives as earned
3,639
6,388
3,639
10,556
Deferred revenue related to electronic health records incentives at end of period
$
(1,054
)
$
(3,795
)
$
(1,054
)
$
(3,795
)
Total electronic health records incentives earned during period
$
4,247
$
7,624
$
8,455
$
15,331
Total cash incentive payments received during period
5,124
1,396
17,442
8,220
Legal and Settlement Costs Legal and settlement costs in the consolidated and combined statements of income primarily includes legal costs and related settlements, if any, related to regulatory claims, government investigations into reimbursement payments and claims associated with QHR’s hospital management contracts. Transaction Costs Related to the Spin-off Transaction costs related to the spin-off consists of QHC’s portion of the costs to effect the Spin-off Transaction and the costs associated with forming a new company. These costs include audit, management advisory and consulting costs, investment advisory costs, legal expenses and other miscellaneous costs. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company assesses the likelihood that deferred tax assets will be recovered from future taxable income. To the extent the Company believes that recovery is not likely, a valuation allowance is established. To the extent the Company establishes a valuation allowance or increases this allowance, the related expense is included in the provision for income taxes in the consolidated and combined statements of income. The Company classifies interest and penalties, if any, related to its tax positions as a component of income tax expense. See Note 10 – Income Taxes for information on the use of the separate return method of accounting for income taxes that was used by the Company during the carve-out period and the impact of the consummation of the Spin-off Transaction on income taxes. Comprehensive Income (Loss) Comprehensive income (loss) is net income (loss) plus the change in equity of a Company during the period from transactions and other events or circumstances from non-owner sources. The Company’s only source of other comprehensive income consists of pension costs related to an acquired defined benefit pension plan at one of its hospitals and a supplemental employee retirement plan. Cash and Cash Equivalents Cash includes cash on hand and cash with banks. Cash equivalents are short-term, highly liquid investments with a maturity of three months or less from the date acquired and are subject to an insignificant risk of change in value. Inventories Inventories, primarily consisting of medical supplies and drugs, are stated at the lower of cost or market on a first-in, first-out basis. Other Current Assets Other current assets consists of the current portion of the receivables from CHS related to professional and general liability and workers’ compensation insurance reserves that were indemnified by CHS in connection with the Spin-off Transaction, non-patient accounts receivable primarily related to QHR, receivables related to electronic health records incentives and other miscellaneous current assets. Property and Equipment Purchases of property and equipment are recorded at cost. Property and equipment acquired in a business combination are recorded at estimated fair value. Routine maintenance and repairs are expensed as incurred. Expenditures that increase capacities or extend useful lives are capitalized. The Company capitalizes interest related to financing of major capital additions with the respective asset. Depreciation is recognized using the straight-line method over the estimated useful life of an asset. The Company depreciates land improvements over 3 to 20 years, buildings and improvements over 5 to 40 years, and equipment and fixtures over 3 to 18 years. The Company also leases certain facilities and equipment under capital lease obligations. These assets are amortized on a straight-line basis over the lesser of the lease term or the remaining useful life of the asset. Goodwill The Company’s hospital operations and QHR’s hospital management advisory and consulting services operations meet the criteria to be classified as reporting units for goodwill. Goodwi |
