Investments in Other Entities

6 Months Ended

Jun. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Investments in Other Entities

5.Investments in Other Entities

Equity Method

For the six months ended June 30, 2024 and 2023, the Company’s equity method investment balance consisted of the following (in thousands):

	% of Ownership	December 31, 2023		Initial Investment		Allocation of Net Income (Loss)			Distribution		June 30, 2024
LaSalle Medical Associates – IPA line of business	25%	$	9,866	$	—	$	1,161		$	—	$	11,027
Pacific Medical Imaging & Oncology Center, Inc.	40%		1,691		—		(43	)		—		1,648
CAIPA MSO, LLC	30%		13,660		—		440			—		14,100
I Health, Inc.	25%		—		5,968		(45	)		—		5,923
Other *	25%		557		—		21			—		578
		$	25,774	$	5,968	$	1,534		$	—	$	33,276

	% of Ownership	December 31, 2022		Initial Investment		Allocation of Net Income (Loss)			Distribution		June 30, 2023
LaSalle Medical Associates – IPA line of business	25%	$	5,684	$	—	$	4,853		$	—	$	10,537
Pacific Medical Imaging & Oncology Center, Inc.	40%		1,878		—		(223	)		—		1,655
531 W. College, LLC **	50%		17,281		—		(211	)		—		17,070
One MSO, LLC **	50%		2,718		—		242			—		2,960
CAIPA MSO, LLC	30%		12,738		—		451			—		13,189
Other *	25%		—		325		95			—		420
		$	40,299	$	325	$	5,207		$	—	$	45,831

* Other consists of smaller equity method investments.

** Investments were solely for the benefit of APC and its shareholders.

For three months ended June 30, 2024 and 2023, the Company’s equity method investment balance consisted of the following (in thousands):

	% of Ownership	March 31, 2024		Initial Investment			Allocation of Net Income (Loss)			Distribution		June 30, 2024
LaSalle Medical Associates – IPA line of business	25%	$	10,225	$	—		$	802		$	—	$	11,027
Pacific Medical Imaging & Oncology Center, Inc.	40%		1,718		—			(70	)		—		1,648
CAIPA MSO, LLC	30%		13,846		—			254			—		14,100
I Health, Inc.	25%		9,487		(3,519	)		(45	)		—		5,923
Other *	25%		617		—			(39	)		—		578
		$	35,893	$	(3,519	)	$	902		$	—	$	33,276

	% of Ownership	March 31, 2023		Initial Investment		Allocation of Net Income (Loss)			Distribution		June 30, 2023
LaSalle Medical Associates – IPA line of business	25%	$	7,848	$	—	$	2,689		$	—	$	10,537
Pacific Medical Imaging & Oncology Center, Inc.	40%		1,886		—		(231	)		—		1,655
531 W. College, LLC **	50%		17,191		—		(121	)		—		17,070
One MSO, LLC **	50%		2,833		—		127			—		2,960
CAIPA MSO, LLC	30%		12,988		—		201			—		13,189
Other *	25%		362		—		58			—		420
		$	43,108	$	—	$	2,723		$	—	$	45,831

I Health, Inc.

On March 31, 2024, a wholly owned subsidiary of the Company acquired a 25% equity interest in I Health, Inc. (“I Health”), a management service organization. The Company accounts for its investment in I Health under the equity method of accounting as the Company has the ability to exercise significant influence, but not control over I Health’s operations. The purchase agreement includes a call option that allows the Company to purchase an additional 25% equity interest on each of the first, second and third anniversary of the purchase (“I Health Call Option”). The total purchase price for this arrangement was $9.9 million, consisting of $3.9 million in the form of a call option, and $6.0 million as the initial investment of the 25% equity interest. The I Health Call Option is presented within other assets in the accompanying condensed consolidated balance sheet.

There was no impairment loss recorded related to equity method investments for the three and six months ended June 30, 2024 and 2023.