Variable Interest Entities (VIEs)

12 Months Ended

Dec. 31, 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 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 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.

	December 31,
	2021		2020
Assets
Current assets
Cash and cash equivalents	$	161,762	$	126,158
Investment in marketable securities	49,066		67,637
Receivables, net	7,251		5,155
Receivables, net – related party	62,180		46,718
Income taxes receivable	1,342		—
Other receivables	1,833		1,084
Prepaid expenses and other current assets	11,734		14,863
Loans receivable — related parties	4,000		—
Amounts due from affiliates*	6,598		—
Total current assets	305,766		261,615
Non-current assets
Land, property and equipment, net	49,547		27,599
Intangible assets, net	58,282		69,250
Goodwill	109,656		109,460
Loans receivable – related parties	89		4,145
Investments in other entities – equity method	41,715		43,516
Investment in a privately held entity	405		36,584
Investment in affiliates*	802,821		225,144
Restricted cash – long-term	—		500
Operating lease right-of-use assets	4,953		6,298
Other assets	3,219		17,177
Total non-current assets	1,070,687		539,673
Total assets	$	1,376,453	$	801,288
Current liabilities
Accounts payable and accrued expenses	$	11,591	$	12,963
Fiduciary accounts payable	10,534		9,642
Medical liabilities	44,000		37,684
Income taxes payable	—		4,225
Dividend payable	556		485
Amount due to affiliate*	—		22,698
Finance lease liabilities	110		102
Operating lease liabilities	1,250		1,242
Current portion of long-term debt	780		201
Total current liabilities	68,821		89,242
Non-current liabilities
Deferred tax liability	1,982		9,144
Finance lease liabilities, net of current portion	193		311
Operating lease liabilities, net of current portion	3,950		5,242
Long-term debt, net of current portion	7,114		7,379

Other long-term liabilities	9,614		—
Total non-current liabilities	22,853		22,076
Total liabilities	$	91,674	$	111,318

*Investment in affiliates include APC’s investment in ApolloMed, which is reflected as treasury shares and eliminated upon consolidation. Amount due to, or due from, affiliates are payables and receivables with ApolloMed’s subsidiaries and consolidated VIEs. As a result, these balances are eliminated upon consolidation and are not reflected on ApolloMed’s consolidated balance sheets as of December 31, 2021 and 2020.