Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
SEGMENT REPORTING

15. SEGMENT REPORTING

 

The Company’s Chief Executive Officer and Executive Chairman jointly serve as the Chief Operating Decision Maker (“CODM”), organize the Company, manage resource allocations and measure performance among two operating and reportable segments: (i) Healthcare IT and (ii) Medical Practice Management.

 

The Healthcare IT segment includes revenue cycle management, SaaS solutions and other services. The Medical Practice Management segment includes the management of three medical practices. Each segment is considered a reporting unit. The CODM evaluates financial performance of the business units on the basis of revenue and direct operating costs excluding unallocated amounts, that are mainly corporate overhead costs. Our CODM does not evaluate operating segments using asset or liability information. The accounting policies of the segments are the same as those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 25, 2021. The following tables present revenues, operating expenses and operating (loss) income by reportable segment:

 

 

 

    Nine Months Ended September 30, 2021  
    ($ in thousands)  
    Healthcare IT     Medical Practice Management     Unallocated Corporate Expenses     Total  
Net revenue   $ 92,797     $ 9,340     $ -     $ 102,137  
Operating expenses:                                
Direct operating costs     55,473       7,246       -       62,719  
Selling and marketing     6,446       23       -       6,469  
General and administrative     10,175       1,487       6,152       17,814  
Research and development     4,328       -       -       4,328  
Change in contingent consideration     -   -       -       -
Depreciation and amortization     9,251       254       -       9,505  
Loss on lease termination, impairment and unoccupied lease charges     1,664       -       -       1,664  
Total operating expenses     87,337       9,010       6,152       102,499  
Operating income (loss)   $ 5,460     $ 330     $ (6,152 )   $ (362 )

 

    Three Months Ended September 30, 2021  
    ($ in thousands)  
    Healthcare IT     Medical Practice Management     Unallocated Corporate Expenses     Total  
Net revenue   $ 34,678     $ 3,626     $ -     $ 38,304  
Operating expenses:                                
Direct operating costs     21,324       2,800       -       24,124  
Selling and marketing     2,368       7       -       2,375  
General and administrative     3,336       471       2,114       5,921  
Research and development     488       -       -       488  
Depreciation and amortization     3,459       88       -       3,547  
Loss on lease termination, impairment and unoccupied lease charges     424       -       -       424  
Total operating expenses     31,399       3,366       2,114       36,879  
Operating income (loss)   $ 3,279     $ 260     $ (2,114 )   $ 1,425  

 

    Nine Months Ended September 30, 2020  
    ($ in thousands)  
    Healthcare IT     Medical Practice Management     Unallocated Corporate Expenses     Total  
Net revenue   $ 64,159     $ 8,926     $ -     $ 73,085  
Operating expenses:                                
Direct operating costs     39,074       6,768       -       45,842  
Selling and marketing     4,753       25       -       4,778  
General and administrative     11,067       1,493       4,616       17,176  
Research and development     6,846       -       -       6,846  
Change in contingent consideration     (500 )     -       -       (500 )
Depreciation and amortization     6,706       238       -       6,944  
Impairment charges     681       -       -       681  
Total operating expenses     68,627       8,524       4,616       81,767  
Operating (loss) income   $ (4,468 )   $ 402     $ (4,616 )   $ (8,682 )

 

    Three Months Ended September 30, 2020  
    ($ in thousands)  
    Healthcare IT     Medical Practice Management     Unallocated Corporate Expenses     Total  
Net revenue   $ 28,191     $ 3,448     $ -     $ 31,639  
Operating expenses:                                
Direct operating costs     17,147       2,571       -       19,718  
Selling and marketing     1,563       8       -       1,571  
General and administrative     4,173       468       1,550       6,191  
Research and development     2,367       -       -       2,367  
Change in contingent consideration     (500 )     -       -       (500 )
Depreciation and amortization     3,127       79       -       3,206  
Impairment charges     321       -       -       321  
Total operating expenses     28,198       3,126       1,550       32,874  
Operating (loss) income   $ (7 )   $ 322     $ (1,550 )   $ (1,235 )