Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

v3.23.3
SEGMENT REPORTING
 9 Months Ended
Sep. 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:

 

SCHEDULE OF REVENUES, OPERATING EXPENSES AND OPERATING INCOME (LOSS) BY REPORTABLE SEGMENT 

    Healthcare IT     Medical
Practice
Management		     Unallocated
Corporate
Expenses		     Total  
    Nine Months Ended September 30, 2023  
    ($ in thousands)  
    Healthcare IT     Medical Practice
Management		     Unallocated Corporate
Expenses		     Total  
Net revenue   $ 78,531     $ 10,112     $ -     $ 88,643  
Operating expenses:                                
Direct operating costs     46,003       7,840       -       53,843  
Selling and marketing     7,503       26       -       7,529  
General and administrative     8,466       1,362       6,690       16,518  
Research and development     3,523       -       -       3,523  
Depreciation and amortization     10,013       269       -       10,282  
Loss on lease terminations and unoccupied lease charges     430                   -       -       430  
Total operating expenses     75,938       9,497       6,690       92,125  
Operating income (loss)   $ 2,593     $ 615     $ (6,690 )   $ (3,482 )

 

    Healthcare IT     Medical
Practice
Management		     Unallocated
Corporate
Expenses		     Total  
    Three Months Ended September 30, 2023  
    ($ in thousands)  
    Healthcare IT     Medical Practice
Management		     Unallocated Corporate
Expenses		     Total  
Net revenue   $ 25,592     $ 3,688     $ -     $ 29,280  
Operating expenses:                                
Direct operating costs     15,369       2,891       -       18,260  
Selling and marketing     2,329       8       -       2,337  
General and administrative     2,719       466       2,297       5,482  
Research and development     1,260       -       -       1,260  
Depreciation and amortization     3,814       89       -       3,903  
Loss on lease terminations and unoccupied lease charges     8                   -       -       8  
Total operating expenses     25,499       3,454       2,297       31,250  
Operating income (loss)   $ 93     $ 234     $ (2,297 )   $ (1,970 )

 

 

    Healthcare IT     Medical
Practice
Management		     Unallocated
Corporate
Expenses		     Total  
    Nine Months Ended September 30, 2022  
    ($ in thousands)  
    Healthcare IT     Medical Practice
Management		     Unallocated Corporate
Expenses		     Total  
Net revenue   $ 96,146     $ 10,146     $ -     $ 106,292  
Operating expenses:                                
Direct operating costs     56,878       7,988       -       64,866  
Selling and marketing     7,293       21       -       7,314  
General and administrative     10,213       1,312       6,954       18,479  
Research and development     3,251       -       -       3,251  
Change in contingent consideration     (2,890 )     -       -       (2,890 )
Depreciation and amortization     8,420       266       -       8,686  
Net loss on lease terminations and unoccupied lease charges     928       -       -       928  
Total operating expenses     84,093       9,587       6,954       100,634  
Operating income (loss)   $ 12,053     $ 559     $ (6,954 )   $ 5,658  

 

    Healthcare IT     Medical
Practice
Management		     Unallocated
Corporate
Expenses		     Total  
    Three Months Ended September 30, 2022  
    ($ in thousands)  
    Healthcare IT     Medical Practice
Management		     Unallocated Corporate
Expenses		     Total  
Net revenue   $ 29,964     $ 3,759     $ -     $ 33,723  
Operating expenses:                                
Direct operating costs     17,582       2,824       -       20,406  
Selling and marketing     2,496       8       -       2,504  
General and administrative     3,231       455       2,814       6,500  
Research and development     1,168       -       -       1,168  
Change in contingent consideration     (1,660 )     -       -       (1,660 )
Depreciation and amortization     2,721       89       -       2,810  
Net loss on lease terminations and unoccupied lease charges     307       -       -       307  
Total operating expenses     25,845       3,376       2,814       32,035  
Operating income (loss)   $ 4,119     $ 383     $ (2,814 )   $ 1,688