Quarterly report pursuant to Section 13 or 15(d)

Medical Equipment

v3.23.1
Medical Equipment
3 Months Ended
Mar. 31, 2023
Medical Equipment [Abstract]  
Medical Equipment Medical Equipment
Medical equipment consisted of the following (in thousands):
  March 31,
2023
December 31, 2022
Medical equipment for sale or rental $ 3,054 $ 2,802
Medical equipment for sale or rental - pump reserve (12) (12)
Medical equipment for sale or rental - net 3,042 2,790
 
Medical equipment in rental service 100,026 99,163
Medical equipment in rental service - pump reserve (2,427) (2,270)
Accumulated depreciation (58,979) (57,443)
Medical equipment in rental service - net 38,620 39,450
 
Total $ 41,662 $ 42,240
Depreciation expense for medical equipment for the three months ended March 31, 2023 was $2.7 million, compared to $2.4 million for the same prior year period. This expense was recorded in “cost of revenues” for each period. The pump reserve for medical equipment in rental service represents an estimate for medical equipment that is considered to be missing. The reserve calculated is equal to the net book value of assets that have not returned from the field within a certain timeframe. During the three month period ended June 30, 2022, the Company changed its estimate for missing pumps by shortening the time estimate of when a pump is considered missing. As a result of this change in estimate, the Company had a higher amount recorded for the pump reserve as of March 31, 2023 and higher expense included in cost of sales for the three months ended March 31, 2023 by $0.1 million as compared to the three months ended March 31, 2022.