Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

17.Leases

The Company has operating and finance leases for corporate offices, physicians’ offices, and certain equipment. These leases have remaining lease terms of one month to 16 years. Some of the leases may include options to extend the lease terms for up to ten years, and some of the leases may include options to terminate the leases within one year. As of September 30, 2024 and December 31, 2023, assets recorded under finance leases were $1.4 million and $1.7 million, respectively, and accumulated depreciation associated with finance leases was $2.0 million and $1.6 million, respectively.

Also, the Company rents or subleases certain real estate to third parties, which are accounted for as operating leases.

Leases with an initial term of 12 months or less are not recorded on the balance sheets.

The components of lease expense were as follows (dollars in thousands):

	Three Months Ended September 30,
	2024			2023
Operating lease cost	$	3,205		$	2,187
Finance lease cost
Amortization of lease expense		172			202
Interest on lease liabilities		20			35
Sublease income		(3	)		(307	)
Total lease cost, net	$	3,394		$	2,117

	Nine Months Ended September 30,
	2024			2023
Operating lease cost	$	9,438		$	5,570
Finance lease cost
Amortization of lease expense		534			505
Interest on lease liabilities		66			80
Sublease income		(246	)		(806	)
Total lease cost, net	$	9,792		$	5,349

Other information related to leases was as follows (in thousands):

	Three Months Ended September 30,
	2024		2023
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,089	$	2,016
Operating cash flows from finance leases		20		35
Financing cash flows from finance leases		172		202

	Nine Months Ended September 30,
	2024		2023
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,684	$	5,636
Operating cash flows from finance leases		66		80
Financing cash flows from finance leases		534		505

	Nine Months Ended September 30,
	2024			2023
Weighted Average Remaining Lease Term
Operating leases	6.93 years			6.84 years
Finance leases	2.69 years			3.18 years
Weighted Average Discount Rate
Operating leases		6.68	%		5.75	%
Finance leases		5.70	%		5.19	%

The following are future minimum lease payments under non-cancellable leases for the years ending December 31 (in thousands) below:

	Operating Leases		Finance Leases
2024 (excluding the nine months ended September 30, 2024)	$	1,855	$	160
2025		7,523		599
2026		7,213		345
2027		6,729		267
2028		6,472		27
Thereafter		16,902		9
Total future minimum lease payments		46,694		1,407
Less: imputed interest		10,291		110
Total lease liabilities		36,403		1,297
Less: current portion		5,241		554
Long-term lease liabilities	$	31,162	$	743