Variable Interest Entities (VIEs)

9 Months Ended

Sep. 30, 2021

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 - Variable Interest Entities” to the accompanying consolidated financial statements for information on how the Company determines VIEs and their 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 ApolloMed have no recourse, and liabilities to which the creditors of APC, including Alpha Care and Accountable Health Care, have no recourse to the general credit of ApolloMed, as the primary beneficiary of the VIEs. 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). The assets and liabilities of the Company’s other consolidated VIEs were not considered significant.

	September 30, 2021		December 31, 2020
Assets
Current assets
Cash and cash equivalents	$	121,258	$	126,158
Investment in marketable securities	124,569		67,637
Receivables, net	15,927		5,155
Receivables, net – related party	50,454		46,718
Income taxes receivable	4,267		—
Other receivables	293		1,084
Prepaid expenses and other current assets	9,808		14,863
Loan receivable – related party	4,000		—
Amount due from affiliate	15,764		—
Total current assets	346,340		261,615
Noncurrent assets
Land, property and equipment, net	47,253		27,599
Intangible assets, net	61,140		69,250
Goodwill	109,460		109,460
Loans receivable – related parties	104		4,145
Investment in affiliates	994,785		225,144
Investments in other entities – equity method	45,046		43,516
Investment in privately held entities	405		36,584
Restricted cash	—		500
Operating lease right-of-use assets	5,258		6,298
Other assets	2,533		17,177
Total noncurrent assets	1,265,984		539,673
Total assets	$	1,612,324	$	801,288
Current liabilities

	September 30, 2021		December 31, 2020
Accounts payable and accrued expenses	$	15,202	$	12,963
Fiduciary accounts payable	8,827		9,642
Medical liabilities	34,998		37,684
Income taxes payable	—		4,225
Dividends payable	556		485
Amount due to affiliate	—		22,698
Current portion of long-term debt	207		201
Finance lease liabilities	110		102
Operating lease liabilities	1,231		1,242
Total current liabilities	61,131		89,242
Noncurrent liabilities
Long-term debt, net of current portion and deferred financing costs	7,245		7,379
Deferred tax liability	18,941		9,144
Finance lease liabilities, net of current portion	221		311
Operating lease liabilities, net of current portion	4,262		5,242
Other long-term liabilities	1,010		—
Total noncurrent liabilities	31,679		22,076
Total liabilities	$	92,810	$	111,318