Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

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SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2024
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, 2023 filed with the SEC on March 21, 2024. The following table presents revenues, operating expenses and operating income (loss) by reportable segment:

 

    Healthcare IT    

Medical Practice

Management

    

Unallocated Corporate

Expenses

     Total  
    Three Months Ended March 31, 2024  
    ($ in thousands)  
    Healthcare IT    

Medical Practice

Management

    

Unallocated Corporate

Expenses

     Total  
Net revenue   $ 22,721     $ 3,241     $ -     $ 25,962  
Operating expenses:                                
Direct operating costs     12,544       2,633       -       15,177  
Selling and marketing     1,760       10       -       1,770  
General and administrative     2,581       434       706       3,721  
Research and development     913       -       -       913  
Depreciation and amortization     3,845       85       -       3,930  
Loss on lease terminations, unoccupied lease charges and restructuring costs     322       -       -       322  
Total operating expenses     21,965       3,162       706       25,833  
Operating income (loss)   $ 756     $ 79     $ (706 )   $ 129  

 

    Healthcare IT    

Medical Practice

Management

    

Unallocated Corporate

Expenses

     Total  
    Three Months Ended March 31, 2023  
    ($ in thousands)  
    Healthcare IT    

Medical Practice

Management

    

Unallocated Corporate

Expenses

     Total  
Net revenue   $ 26,954     $ 3,047     $ -     $ 30,001  
Operating expenses:                                
Direct operating costs     15,693       2,414       -       18,107  
Selling and marketing     2,604       8       -       2,612  
General and administrative     2,496       448       2,176       5,120  
Research and development     1,078       -       -       1,078  
Depreciation and amortization     2,949       89       -       3,038  
Net loss on lease terminations and unoccupied lease charges     269       -       -       269  
Total operating expenses     25,089       2,959       2,176       30,224  
Operating income (loss)   $ 1,865     $ 88     $ (2,176 )   $ (223 )