2. Medical Equipment and Property

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

Depreciation expense for medical equipment for the three months ended March 31, 2015 was $1.0 million compared to $0.7 million 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 March 31, 2015 was $0.1 million, which was consistent with the same prior year period. This expense was recorded in general and administrative expenses.