Segments

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segments

Segments

The Company evaluates the performance of its operating segments based on segment revenue growth as well as operating income. Management uses revenue growth and total segment operating income as a measure of the performance of operating businesses separate from non-operating factors. The Company’s reportable segments changed from one to three in the first quarter of 2023 as a result of certain changes to the information regularly provided to the Company’s chief operating decision makers (“CODMs”) when reviewing the Company’s performance as well as an effort to provide additional transparency to investors and other financial statement users which the Company believes will assist in the evaluation of changes in the operating results of the Company’s segments separate from non-operational factors that affect net income, thus providing insight into both operations and other factors impacting reported results. As of March 31, 2023, we report our business results around the following segments: Care Enablement, Care Partners, and Care Delivery.

Our Care Enablement segment is integrated, end-to-end clinical and administrative platform, powered by our proprietary technology suite, which provides operational, clinical, financial, technology, management, and strategic services in order to enable success in the delivery of high-quality, value-based care for providers and payers. Revenue for this segment is primarily comprised of management and software fees, charged as a percentage of gross revenue or on a per-member-per-month basis.

Our Care Partners segment is focused on building and managing high-quality and high-performance provider networks by partnering with, empowering, and investing in strong provider partners with a shared vision for coordinated care delivery. Through our network of IPAs, ACOs, and Restricted Knox-Keen licensed health plan, our healthcare delivery entities are responsible for coordinating and delivering high quality care to our patients. Under relevant accounting guidance, while our IPAs and ACO are two operating segments, they share similar economic characteristics and meet other criteria which permit us to aggregate them into a single reportable segment, which we have done. Revenue for this segment is primarily comprised of capitation and risk pool settlements and incentives.

Our Care Delivery segment is a patient-centric, data-driven care delivery organization focused on delivering high-quality and accessible care to all patients. Our care delivery organization includes primary care, multi-specialty care, and ancillary care services. Revenue is primarily earned based on fee-for-service reimbursements, capitation, and performance-based incentives.

Other is not a reportable segment and primarily consists of real estate operations and other entities that are individually immaterial. Revenue is comprised of equipment sales and subscription service to our Clinical AI platform. Real estate revenue is presented in other income.

In the normal course of business, our reportable segments enter into transactions with each another. While intersegment transactions are treated like third-party transactions to determine segment performance, the revenues recognized by a segment and expenses incurred by the counterparty are eliminated in consolidation and do not affect consolidated results.

Corporate costs are unallocated and primarily include corporate initiatives, corporate infrastructure costs and corporate shared costs, such as finance, human resources, legal, and executives.

Prior periods have been recast to conform to the current presentation. Our segments are not evaluated using asset information.

The following table presents information about our segments (in thousands):

	Three months ended March 31, 2023
	Care Enablement			Care Partners			Care Delivery			Other			Intersegment Elimination			Corporate Costs		Consolidated Total
Total revenues	$	30,566		$	314,653		$	25,383		$	240		$	(33,598)		$	—	$	337,244
Cost of services	15,621		—	286,078		—	21,363		—	63		—	(33,728)			—		289,397
General and administrative(1)	9,199			6,254			4,986			660			(1,034)			5,409		25,474
Total expenses	24,820			292,332			26,349			723			(34,762)			5,409		314,871
Income (loss) from operations	$	5,746		$	22,321		$	(966)		$	(483)		$	1,164	(2)	$	(5,409)	$	22,373
	Three months ended March 31, 2022
	Care Enablement			Care Partners			Care Delivery			Other			Intersegment Elimination			Corporate Costs		Consolidated Total
Total revenues	$	29,390		$	241,293		$	20,326		$	89		$	(27,840)		$	—	$	263,258
Cost of services	13,517			218,673			16,192			45			(27,697)			—		220,730
General and administrative(1)	4,529			5,213			3,043			476			(619)			3,675		16,317
Total expenses	18,046			223,886			19,235			521			(28,316)			3,675		237,047
Income (loss) from operations	$	11,344		$	17,407		$	1,091		$	(432)		$	476	(2)	$	(3,675)	$	26,211

(1) Balance includes general and administrative expenses and depreciation and amortization.

(2) Income from operations for the intersegment elimination represents rental income from segments renting from other segments. Rental income is presented within other income which is not presented in the table.