Quarterly report pursuant to Section 13 or 15(d)

Revenue and Accounts Receivable

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Revenue and Accounts Receivable
3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Revenue and Accounts Receivable
Revenue and Accounts Receivable

Revenue by service type for the three months ended March 31, 2017 and 2016 is comprised of the following (in thousands): 

 
Three Months Ended March 31,
 
2017
 
2016
Biopharma Services
$
3,719

 
$
3,350

Clinical Services
2,954

 
2,456

Discovery Services
293

 
262

 
$
6,966

 
$
6,068



Accounts receivable by service type at March 31, 2017 and December 31, 2016 consists of the following (in thousands): 


March 31,
2017
 
December 31,
2016
Biopharma Services
$
3,315

 
$
3,683

Clinical Services
10,310

 
8,972

Discovery Services
416

 
480

Allowance for doubtful accounts
(1,366
)
 
(1,387
)

$
12,675

 
$
11,748



Allowance for Doubtful Accounts (in thousands)
Balance, December 31, 2016
$
1,387

Bad debt recoveries
(21
)
Balance, March 31, 2017
$
1,366



Revenue for Biopharma Services are customized solutions for patient stratification and treatment selection through an extensive suite of DNA-based testing services. Clinical Services are tests performed to provide information on diagnosis, prognosis and theranosis of cancers to guide patient management. These tests can be billed to Medicare, another third party insurer or the referring community hospital or other healthcare facility. Discovery Services are services that provide the tools and testing methods for companies and researchers seeking to identify new DNA-based biomarkers for disease. The breakdown of our Clinical Services revenue (as a percent of total revenue) is as follows:

 
Three Months Ended March 31,
 
2017
 
2016
Medicare
14%
 
15%
Other insurers
23%
 
22%
Other healthcare facilities
6%
 
4%
 
43%
 
41%


We have historically derived a significant portion of our revenue from a limited number of test ordering sites, although the test ordering sites that generate a significant portion of our revenue have changed from period to period. Test ordering sites account for all of our Clinical Services along with a portion of the Biopharma Services revenue. Our test ordering sites are largely hospitals, cancer centers, reference laboratories, physician offices and biopharmaceutical companies. Oncologists and pathologists at these sites order the tests on behalf of the needs of their oncology patients or as part of a clinical trial sponsored by a biopharmaceutical company in which the patient is being enrolled. We generally do not have formal, long-term written agreements with such test ordering sites, and, as a result, we may lose a significant test ordering site at any time.

The top five test ordering sites during each of the three months ended March 31, 2017 and 2016 accounted for approximately 35% of our testing volumes. During the three months ended March 31, 2017, there was one biopharmaceutical company which accounted for approximately 11% of our total revenue. During the three months ended March 31, 2016, there were two biopharmaceutical companies which accounted for approximately 11% and 10% of our total revenue, respectively.