Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 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  
    Six Months Ended June 30, 2024  
    ($ in thousands)  
    Healthcare IT     Medical Practice Management     Unallocated Corporate Expenses     Total  
Net revenue   $ 47,301     $ 6,751     $ -     $ 54,052  
Operating expenses:                                
Direct operating costs     25,254       5,165       -       30,419  
Selling and marketing     3,417       17       -       3,434  
General and administrative     4,602       911       2,236       7,749  
Research and development     1,968       -       -       1,968  
Depreciation and amortization     7,478       166       -       7,644  
Loss on lease terminations, unoccupied lease charges and restructuring costs     438       -       -       438  
Total operating expenses     43,157       6,259       2,236       51,652  
Operating income (loss)   $ 4,144     $ 492     $ (2,236 )   $ 2,400  

 

 

    Healthcare IT     Medical Practice Management     Unallocated Corporate Expenses     Total  
    Three Months Ended June 30, 2024  
    ($ in thousands)  
    Healthcare IT     Medical Practice Management     Unallocated Corporate Expenses     Total  
Net revenue   $ 24,580     $ 3,510     $ -     $ 28,090  
Operating expenses:                                
Direct operating costs     12,710       2,532       -       15,242  
Selling and marketing     1,657       7       -       1,664  
General and administrative     2,021       477       1,530       4,028  
Research and development     1,055       -       -       1,055  
Depreciation and amortization     3,633       81       -       3,714  
Loss on lease terminations, unoccupied lease charges and restructuring costs     116       -       -       116  
Total operating expenses     21,192       3,097       1,530       25,819  
Operating income (loss)   $ 3,388     $ 413     $ (1,530 )   $ 2,271  

 

    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  
Net 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  
Net 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 )