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Notes to Financial Statements <br /> Page 16 <br /> Note 12: Charity Care <br /> The Organization- has a policy of providing charity care to <br /> patients who are unable to pay. The discounts are determined <br /> on a scale based on family size and income. <br /> During the year ended November 30, 2012, the Organization <br /> adopted ASU No. . 2010-23, Health Care Entities (Topic 954) , : <br /> Measuring Charity Care for Disclosure, which requires .that cost. <br /> be used as a measurement for charity care disclosure purposes <br /> and that cost be identified as the direct and indirect costs of <br /> providing the charity care. The impact of adoption had no <br /> effect on the financial statements and relates only to - <br /> disclosures. <br /> The estimated cost of charity care totaled approximately <br /> $6,729,307 and $6,110,077 for the years ended November 30, 2013 <br /> and 2012, respectively. The cost of charity care is estimated <br /> utilizing a ratio of cost to gross charges applied to the gross. <br /> uncompensated charges associated with providing charity care. . <br /> Funds received from gifts and grants to subsidize charity <br /> services provided for the years ended November 30, 2013 and <br /> 2012 were approximately $6,132,072 and $5,897,984, <br /> respectively. <br /> Total sliding fee scale . write-offs during the years ended <br /> November 30, 2013 and 2012 were $6,57.7,835 and $6,210,071, <br /> respectively. <br /> Note 13: In-Kind Contributions <br /> The Organization participates in programs sponsored by drug <br /> companies, which provides drugs to indigent patients. The <br /> inventory of donated drugs is replenished periodically by the <br /> donors upon receipt of documentation of amounts dispensed. The <br /> donated drugs are valued at the donors' wholesale .price. The <br /> amount remaining in inventory at November 30, 2013 and 2012 is <br /> $484,662 and $417,321, respectively. (See Note 16. ) <br /> Note 14: Concentration of Credit Risk <br /> The Organization grants credit to its patients.' A substantial <br /> percentage is insured under third-party payor agreements. The <br /> percentages of receivables from patients and third-party payors <br /> for 2012 and 2011 were as follows: <br /> -29- <br />