Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2022
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, 2021 filed with the SEC on March 14, 2022. The following table presents revenues, operating expenses and operating income (loss) by reportable segment:

                         
    Six Months Ended June 30, 2022  
    ($ in thousands)  
    Healthcare IT    

Medical Practice Management

    

Unallocated Corporate

Expenses

     Total  
Net revenue   $ 66,182     $ 6,387     $ -     $ 72,569  
Operating expenses:                                
Direct operating costs     39,296       5,164       -       44,460  
Selling and marketing     4,797       13       -       4,810  
General and administrative     6,982       857       4,140       11,979  
Research and development     2,083       -       -       2,083  
Change in contingent consideration     (1,230 )     -       -       (1,230 )
Depreciation and amortization     5,699       177       -       5,876  
Net loss on lease termination, impairment and unoccupied lease charges     621       -       -       621  
Total operating expenses     58,248       6,211       4,140       68,599  
Operating income (loss)   $ 7,934     $ 176     $ (4,140 )   $ 3,970  

 

 

                         
    Three Months Ended June 30, 2022  
    ($ in thousands)  
    Healthcare IT    

Medical Practice Management

    

Unallocated Corporate

Expenses

     Total  
Net revenue   $ 34,029     $ 3,199     $ -     $ 37,228  
Operating expenses:                                
Direct operating costs     19,285       2,502       -       21,787  
Selling and marketing     2,421       5       -       2,426  
General and administrative     3,582       420       2,392       6,394  
Research and development     1,098       -       -       1,098  
Change in contingent consideration     (630 )     -       -       (630 )
Depreciation and amortization     2,847       89       -       2,936  
Net loss on lease termination, impairment and unoccupied lease charges     463       -       -       463  
Total operating expenses     29,066       3,016       2,392       34,474  
Operating income (loss)   $ 4,963     $ 183     $ (2,392 )   $ 2,754  

 

                         
    Six Months Ended June 30, 2021  
    ($ in thousands)  
    Healthcare IT    

Medical Practice
Management

     Unallocated Corporate
Expenses		     Total  
Net revenue   $ 58,119     $ 5,715     $ -     $ 63,834  
Operating expenses:                                
Direct operating costs     34,149       4,446       -       38,595  
Selling and marketing     4,079       15       -       4,094  
General and administrative     6,839       1,016       4,038       11,893  
Research and development     3,839       -       -       3,839  
Depreciation and amortization     5,792       167       -       5,959  
Net loss on lease termination, impairment and unoccupied lease charges     1,241       -       -       1,241  
Total operating expenses     55,939       5,644       4,038       65,621  
Operating income (loss)   $ 2,180     $ 71     $ (4,038 )   $ (1,787 )

 

                         
    Three Months Ended June 30, 2021  
    ($ in thousands)  
    Healthcare IT    

Medical Practice

Management

    

Unallocated Corporate

Expenses

     Total  
Net revenue   $ 31,085     $ 2,980     $ -     $ 34,065  
Operating expenses:                                
Direct operating costs     18,161       2,373       -       20,534  
Selling and marketing     2,197       7       -       2,204  
General and administrative     3,411       497       2,361       6,269  
Research and development     1,813       -       -       1,813  
Depreciation and amortization     3,043       85       -       3,128  
Net loss on lease termination, impairment and unoccupied lease charges     223       -       -       223  
Total operating expenses     28,848       2,962       2,361       34,171  
Operating income (loss)   $ 2,237     $ 18     $ (2,361 )   $ (106 )