Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.21.1
Segment Reporting
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting
14. SEGMENT REPORTING

 

Both our Chief Executive Officer and Executive Chairman 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) Practice Management.

 

The Healthcare IT segment includes revenue cycle management, SaaS solutions 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 Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 25, 2021. The following tables present revenues, operating expenses and operating (loss) income by reportable segment:

 

    Three Months Ended March 31, 2021  
    ($ in thousands)  
    Healthcare IT     Practice Management    

Unallocated Corporate

Expenses

     Total  
Net revenue   $ 27,033     $ 2,735     $ -     $ 29,768  
Operating expenses:                                
Direct operating costs     15,987       2,073       -       18,060  
Selling and marketing     1,882       8       -       1,890  
General and administrative     3,426       520       1,678       5,624  
Research and development     2,026       -       -       2,026  
Depreciation and amortization     2,749       82       -       2,831  
Impairment and unoccupied lease charges     1,018       -       -       1,018  
Total operating expenses     27,088       2,683       1,678       31,449  
Operating (loss) income   $ (55 )   $ 52     $ (1,678 )   $ (1,681 )

 

    Three Months Ended March 31, 2020  
    ($ in thousands)  
    Healthcare IT     Practice Management     Unallocated Corporate Expenses     Total  
Net revenue   $ 18,841     $ 3,026     $ -     $ 21,867  
Operating expenses:                                
Direct operating costs     11,166       2,401       -       13,567  
Selling and marketing     1,572       9       -       1,581  
General and administrative     3,881       556       1,156       5,593  
Research and development     2,333       -       -       2,333  
Depreciation and amortization     1,254       79       -       1,333  
Impairment charges     297       -       -       297  
Total operating expenses     20,503       3,045       1,156       24,704  
Operating loss   $ (1,662 )   $ (19 )   $ (1,156 )   $ (2,837 )