Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.22.4
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING

18. SEGMENT REPORTING

 

The Company’s 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) Medical Practice Management.

 

The Healthcare IT segment includes technology-assisted 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 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, 2022 and 2021:

 

    Healthcare IT    

Medical Practice

Management

    

Unallocated Corporate

Expenses

     Total  
    Year Ended December 31, 2022  
    ($ in thousands)  
    Healthcare IT    

Medical Practice

Management

    

Unallocated Corporate

Expenses

     Total  
Net revenue   $ 125,276     $ 13,550     $ -     $ 138,826  
Operating expenses:                                
Direct operating costs     73,702       10,732       -       84,434  
Selling and marketing     9,760       28       -       9,788  
General and administrative     12,558       1,802       9,460       23,820  
Research and development     4,401       -       -       4,401  
Change in contingent consideration     (3,090 )     -       -       (3,090 )
Depreciation and amortization     11,368       357       -       11,725  
Net loss on lease termination and unoccupied lease charges     1,138       -       -       1,138  
Total operating expenses     109,837       12,919       9,460       132,216  
Operating income (loss)   $ 15,439     $ 631     $ (9,460 )   $ 6,610  

 

    Healthcare IT    

Medical Practice

Management

    

Unallocated Corporate

Expenses

     Total  
    Year Ended December 31, 2021  
    ($ in thousands)  
    Healthcare IT    

Medical Practice

Management

    

Unallocated Corporate

Expenses

     Total  
Net revenue   $ 127,080     $ 12,519     $ -     $ 139,599  
Operating expenses:                                
Direct operating costs     76,981       9,937       -       86,918  
Selling and marketing     8,755       31       -       8,786  
General and administrative     13,910       2,080       8,283       24,273  
Research and development     4,408       -       -       4,408  
Change in contingent consideration     (2,515 )     -       -       (2,515 )
Depreciation and amortization     11,854       341       -       12,195  
Net loss on lease termination, impairment and unoccupied lease charges     2,005       -       -       2,005  
Total operating expenses     115,398       12,389       8,283       136,070  
Operating income (loss)   $ 11,682     $ 130     $ (8,283 )   $ 3,529