Leases

3 Months Ended

Mar. 31, 2025

17.

Leases

The Company has operating and finance leases for corporate offices, physicians’ offices, and certain equipment. These leases have remaining lease terms ranging from one month to 21 years, some of which may include options to extend the leases for up to ten years, and some of which may include options to terminate the leases within one year. These leases consist of payments that are fixed or variable. Variable lease payments are based on an index or a rate such as the Consumer Price Index. As of March 31, 2025 and December 31, 2024, finance lease assets, net of depreciation, were $1.2 million and $1.3 million, respectively, and accumulated depreciation associated with finance leases was $1.6 million and $2.2 million, respectively.

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

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


	Three Months Ended March 31,
	2025			2024
Operating lease cost	$	3,611		$	3,159

Finance lease cost
Amortization of lease expense		147			179
Interest on lease liabilities		16			24

Sublease income		(44	)		(226	)

Total lease cost	$	3,730		$	3,136

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


	Three Months Ended March 31,
	2025		2024
Supplemental Cash Flow Information

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,017	$	2,837
Operating cash flows from finance leases		16		24
Financing cash flows from finance leases		147		179


	Three Months Ended March 31,
	2025			2024
Weighted Average Remaining Lease Term
Operating leases	7.22 years			8.39 years
Finance leases	2.34 years			2.96 years

Weighted Average Discount Rate
Operating leases		6.75	%		6.15	%
Finance leases		5.79	%		5.53	%

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


	Operating Leases		Finance Leases
2025 (excluding the three months ended March 31, 2025)	$	5,269	$	443
2026		6,851		345
2027		6,246		267
2028		5,973		27
2029		4,882		9
Thereafter		14,876		—

Total future minimum lease payments		44,097		1,091
Less: imputed interest		10,155		77
Total lease liabilities		33,942		1,014
Less: current portion		4,979		471
Long-term lease liabilities	$	28,963	$	543