Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.20.4
Segment Reporting
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting

18. segment reporting

 

Both our Chief Executive Officer and Executive Chairman serve as the CODM, organize the Company, manage resource allocations and measure performance among two operating and reportable segments: (i) Healthcare IT and (ii) Practice Management.

 

The Healthcare IT segment includes revenue cycle management and other services. The Practice Management segment includes the management of three medical practices. Each segment is considered a reporting unit. The CODM evaluates financial performance of the business units on the basis of revenue and direct operating costs excluding unallocated amounts, which 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 summary of significant accounting policies. The following tables present revenues, operating expenses and operating income (loss) by reportable segment for the years ended December 31, 2020 and 2019:

 

    Year Ended December 31, 2020  
    ($ in thousands)  
    Healthcare IT     Practice Management    

Unallocated Corporate

Expenses 

     Total  
Net revenue   $ 93,324     $ 11,798     $ -     $ 105,122  
Operating expenses:                                
Direct operating costs     55,653       9,168       -       64,821  
Selling and marketing     6,549       33       -       6,582  
General and administrative     14,578       1,978       6,255       22,811  
Research and development     9,311       -       -       9,311  
Change in contingent consideration     (1,000 )     -       -       (1,000 )
Depreciation and amortization     9,587       318       -       9,905  
Impairment and unoccupied lease charges     963       -       -       963  
Total operating expenses     95,641       11,497       6,255       113,393  
Operating (loss) income   $ (2,317 )   $ 301     $ (6,255 )   $ (8,271 )

 

    Year Ended December 31, 2019  
    ($ in thousands)  
    Healthcare IT     Practice Management    

Unallocated Corporate

Expenses

     Total  
Net revenue   $ 51,172     $ 13,267     $ -     $ 64,439  
Operating expenses:                                
Direct operating costs     30,798       10,388       -       41,186  
Selling and marketing     1,487       35       -       1,522  
General and administrative     11,124       2,067       4,721       17,912  
Research and development     871       -       -       871  
Change in contingent consideration     (344 )     -       -       (344 )
Depreciation and amortization     2,689       317       -       3,006  
Restructuring and impairment charges     219       -       -       219  
Total operating expenses     46,844       12,807       4,721       64,372  
Operating income (loss)   $ 4,328     $ 460     $ (4,721 )   $ 67