Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.23.2
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING

14. 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 the 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, 2022 filed with the SEC on March 2, 2023. The following table presents revenues, operating expenses and operating income (loss) by reportable segment:

 

    Healthcare IT    

Medical

Practice

Management

    

Unallocated

Corporate

Expenses

     Total  
    Six Months Ended June 30, 2023  
    ($ in thousands)  
    Healthcare IT    

Medical Practice

Management

    

Unallocated

Corporate

Expenses

     Total  
Net revenue   $ 52,939     $    6,424     $ -     $ 59,363  
Operating expenses:                                
Direct operating costs     30,634       4,949       -       35,583  
Selling and marketing     5,174       18       -       5,192  
General and administrative     5,746       896       4,394       11,036  
Research and development     2,263       -       -       2,263  
Depreciation and amortization     6,200       179       -       6,379  
Loss on lease terminations and unoccupied lease charges     422       -       -       422  
Total operating expenses     50,439       6,042       4,394       60,875  
Operating income (loss)   $ 2,500     $ 382     $ (4,394 )   $ (1,512 )

 

 

    Healthcare IT    

Medical Practice

Management

    

Unallocated Corporate

Expenses

     Total  
    Three Months Ended June 30, 2023  
    ($ in thousands)  
    Healthcare IT    

Medical Practice

Management

    

Unallocated Corporate

Expenses

     Total  
Net revenue   $ 25,985     $    3,377     $ -     $ 29,362  
Operating expenses:                                
Direct operating costs     14,941       2,535       -       17,476  
Selling and marketing     2,570       10       -       2,580  
General and administrative     3,250       448       2,218       5,916  
Research and development     1,185       -       -       1,185  
Depreciation and amortization     3,251       90       -       3,341  
Loss on lease terminations and unoccupied lease charges     153       -       -       153  
Total operating expenses     25,350       3,083       2,218       30,651  
Operating income (loss)   $ 635     $ 294     $ (2,218 )   $ (1,289 )

 

    Healthcare IT    

Medical Practice

Management

    

Unallocated Corporate

Expenses

     Total  
    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 terminations 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  

 

    Healthcare IT    

Medical Practice

Management

    

Unallocated Corporate

Expenses

     Total  
    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 terminations 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