Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING

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SEGMENT REPORTING
 9 Months Ended
Sep. 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:

 

                         
    Nine Months Ended September 30, 2024  
    ($ in thousands)  
    Healthcare IT     Medical Practice Management     Unallocated Corporate Expenses     Total  
Net revenue   $ 71,603     $ 10,995     $ -     $ 82,598  
Operating expenses:                                
Direct operating costs     37,699       8,140       -       45,839  
Selling and marketing     4,785       24       -       4,809  
General and administrative     6,923       1,392       3,812       12,127  
Research and development     2,768       -       -       2,768  
Depreciation and amortization     10,638       247       -       10,885  
Loss on lease terminations, unoccupied lease charges and restructuring costs     505       -       -       505  
Total operating expenses     63,318       9,803       3,812       76,933  
Operating income (loss)   $ 8,285     $ 1,192     $ (3,812 )   $ 5,665  

 

                         
    Three Months Ended September 30, 2024  
    ($ in thousands)  
    Healthcare IT     Medical Practice Management     Unallocated Corporate Expenses     Total  
Net revenue   $ 24,302     $ 4,244     $ -     $ 28,546  
Operating expenses:                                
Direct operating costs     12,445       2,975       -       15,420  
Selling and marketing     1,368       7       -       1,375  
General and administrative     2,321       481       1,576       4,378  
Research and development     800       -       -       800  
Depreciation and amortization     3,159       82       -       3,241  
Loss on lease terminations, unoccupied lease charges and restructuring costs     67       -       -       67  
Total operating expenses     20,160       3,545       1,576       25,281  
Operating income (loss)   $ 4,142     $ 699     $ (1,576 )   $ 3,265  

 

 

                         
    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 )

 

                         
    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 )