Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.24.1
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2023
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 the 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, 2023 and 2022:

 

    Healthcare IT     Medical Practice
Management		     Unallocated
Corporate
Expenses		     Total  
    Year Ended December 31, 2023
($ in thousands)		  
    Healthcare IT     Medical Practice
Management		     Unallocated
Corporate
Expenses		     Total  
Net revenue   $ 103,683     $ 13,376     $ -     $ 117,059  
Operating expenses:                                
Direct operating costs     60,319       10,498       -       70,817  
Selling and marketing     9,614       36       -       9,650  
General and administrative     10,992       1,854       8,618       21,464  
Research and development     4,736       -       -       4,736  
Depreciation and amortization     14,046       356       -       14,402  
Goodwill impairment charges     42,000       -       -       42,000  
Loss on lease terminations, unoccupied lease charges and restructuring costs     1,105       -       -       1,105  
Total operating expenses     142,812       12,744       8,618       164,174  
Operating (loss) income   $ (39,129 )   $ 632     $ (8,618 )   $ (47,115 )

 

    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 terminations 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