3. Medical Equipment and Property

Medical equipment consisted of the following as of September 30, 2015 and December 31, 2014 (in thousands):

Depreciation expense for medical equipment for the three and nine months ended September 30, 2015 was $1.3 million and $3.4 million, respectively, compared to $0.9 million and $2.4 million, respectively, for the same prior year period, which was recorded in cost of revenues—pump depreciation and disposals, respectively.

Depreciation expense for property and equipment for the three months ended September 30, 2015 and 2014 was $0.1 million and for the nine months ended September 30, 2015 and 2014 was $0.3 million and $0.2 million, respectively. This expense was recorded in general and administrative expenses.