Variable Interest Entities (VIEs)

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities (VIEs)

Variable Interest Entities (VIEs)

A VIE is defined as a legal entity whose equity owners do not have sufficient equity at risk, or, as a group, the holders of the equity investment at risk lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and the obligation to absorb expected losses or the right to receive benefits from the entity that could potentially be significant to the VIE.

The Company follows guidance on the consolidation of VIEs that requires companies to utilize a qualitative approach to determine whether it is the primary beneficiary of a VIE. See Note 2 – “Basis of Presentation and Summary of Significant Accounting Policies” to the accompanying consolidated financial statements for information on how the Company determines VIEs and its treatment.

The following table includes assets that can only be used to settle the liabilities of APC and its VIEs, including Alpha Care and Accountable Health Care, and to which the creditors of APC, including Alpha Care and Accountable Health Care, have no recourse to the Company, nor do creditors of the Company have recourse against the assets of APC, including Alpha Care and Accountable Health Care. These assets and liabilities, with the exception of the investment in a privately held entity that does not report net asset value per share and amounts due to affiliates, which are eliminated upon consolidation with NMM, are included in the accompanying consolidated balance sheets (in thousands).

	September 30, 2020		December 31, 2019
Assets
Current assets
Cash and cash equivalents	$	94,751	$	87,110
Restricted cash	—		75
Investment in marketable securities	118,262		123,948
Receivables, net	15,365		9,300
Receivables, net – related party	39,506		42,976
Other receivables	734		744
Prepaid expenses and other current assets	9,667		7,403
Loan receivable	6,425		6,425
Loan receivable – related parties	—		16,500
Total current assets	284,710		294,481
Noncurrent assets
Land, property and equipment, net	8,877		9,547
Intangible assets, net	72,107		81,439
Goodwill	109,460		108,913
Investment in affiliates	310,491		318,315
Investment in privately held entities	36,584		1,615
Investments in other entities – equity method	27,268		28,427
Restricted cash	746		746
Operating lease right-of-use assets	6,654		4,751
Other assets	20,736		1,057
Total noncurrent assets	592,923		554,810
Total assets	$	877,633	$	849,291
Current liabilities
Accounts payable and accrued expenses	$	13,444	$	11,187

	September 30, 2020		December 31, 2019
Fiduciary accounts payable	3,986		2,027
Medical liabilities	42,546		49,019
Income taxes payable	15,408		4,530
Amount due to affiliate	22,131		28,058
Dividends payable	485		271
Finance lease liabilities	102		102
Operating lease liabilities	1,300		1,088
Total current liabilities	99,402		96,282
Noncurrent liabilities
Deferred tax liability	7,725		14,059
Finance lease liabilities, net of current portion	337		416
Operating lease liabilities, net of current portion	5,512		3,742
Total noncurrent liabilities	13,574		18,217
Total liabilities	$	112,976	$	114,499

The assets of the Company’s other consolidated VIEs were not considered significant.