Segments

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Reporting

Segments (Recasted)

As a result of certain changes to the information regularly provided to the Company’s CODMs when reviewing the Company’s performance, as well as in an effort to provide additional transparency to investors and other financial statement users, the Company began providing reporting for the following three segments in the first quarter of 2023. The Company is recasting segment reporting information previously presented in the Company’s Annual Reports on Form 10-K for the fiscal year ended December 31, 2022 to account for the revision of the three new reportable 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 segments are not evaluated using asset information. As of December 31, 2022, the three segments are: Care Enablement, Care Partners, and Care Delivery.

Care Enablement

The Care Enablement segment is an integrated, end-to-end clinical and administrative platform, powered by the Company’s 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. The Company provides solutions to providers, including independent physicians, provider and medical groups, and accountable care organizations, and payers, including health plans and other risk-bearing organizations. The platform meets providers and payers where they are, with a wide spectrum of solutions across the total cost of care risk spectrum, ranging from solutions for fee-for-service entities to global risk-bearing entities, and across patient type, including Medicare, Medicaid, commercial, and exchange-insured patients. This segment includes the wholly owned subsidiaries which operate as management services organizations, NMM and AMM, which enter into long-term management and/or administrative services agreements with providers and payers. By leveraging the Company’s care enablement platform, providers and payers can improve their ability to deliver high-quality care to their patients and achieve better patient outcomes. 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.

Care Partners

The 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. By leveraging the Company’s unique care enablement platform and ability to recruit, empower, and incentivize physicians to effectively manage total cost of care, the Company is able to organize partnered providers into successful multi-payer risk-bearing organizations which take on varying levels of risk based on total cost of care across membership in all lines of business, including Medicare, Medicaid, commercial, and exchange. Through the Company’s network of IPAs and ACOs the Company’s healthcare delivery entities are responsible for coordinating and delivering high quality care to patients. Under relevant accounting guidance, while 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 the Company did. Revenue for this segment is primarily comprised of capitation and risk pool settlements and incentives.

The Company’s consolidated IPAs consist of the following: (i) APC, (ii) Alpha Care, (iii) Accountable Health Care, (iv) Jade, (v) APCMG, and (vi) AAMG. The Company’s ACO operates under the APAACO brand and participates in the CMS program that allows provider groups to assume higher levels of financial risk and potentially achieve a higher reward from participation in the program’s attribution-based risk-sharing model.

Care Delivery

The Care Delivery segment is a patient-centric, data-driven care delivery organization focused on delivering high-quality and accessible care to all patients. The 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. This segment includes primary care clinics, operating under the AMG, a Professional Medical Corporation (“AMG”) and Valley Oaks Medical Group (“VOMG”) brands, multi-specialty care clinics and medical groups, operating under the ApolloMed Hospitalists, a Medical Corporation (“AMH”), Southern California Heart Centers, a Medical Corporation (“SCHC”), and AllCare Women’s Health brands, and ancillary service providers, operating under the 1 World Medicine Urgent Care Corporation (“1 World”), DMG, Concourse Diagnostic Surgery Center, LLC (“CDSC”), and Sun Clinical Laboratories (“Sun Labs”) brands.

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. Real estate revenue is presented in other income.

In the normal course of business, the 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.

The following table presents information about the Company’s segments and have been recasted (in thousands):

	Twelve Months Ended December 31, 2022
	Care Enablement		Care Partners		Care Delivery		Other		Intersegment Elimination			Corporate Costs		Consolidated Total
Third Party	$	42,023	$	1,051,464	$	49,806	$	870	$	—		$	—	$	1,144,163
Intersegment	78,177		57		46,326		115		(124,675)			—		—
Total revenues	120,200		1,051,521		96,132		985		(124,675)			—		1,144,163
Cost of services	51,531		944,792		73,927		258		(125,823)			—		944,685
General and administrative(1)	41,628		21,507		13,234		2,681		(3,150)			19,313		95,213
Total expenses	93,159		966,299		87,161		2,939		(128,973)			19,313		1,039,898
Income (loss) from operations	$	27,041	$	85,222	$	8,971	$	(1,954)	$	4,298	(2)	$	(19,313)	$	104,265
	Twelve Months Ended December 31, 2021
	Care Enablement		Care Partners		Care Delivery		Other		Intersegment Elimination			Corporate Costs		Consolidated Total
Third Party	$	35,851	$	709,714	$	28,064	$	286	$	—		$	—	$	773,915
Intersegment	71,842		—		18,627		74		(90,543)			—		—
Total revenues	107,693		709,714		46,691		360		(90,543)			—		773,915
Cost of services	41,557		607,081		37,537		(242)		(89,791)			—		596,142
General and administrative(1)	28,637		30,055		9,694		1,881		(3,097)			12,424		79,594
Total expenses	70,194		637,136		47,231		1,639		(92,888)			12,424		675,736
Income (loss) from operations	$	37,499	$	72,578	$	(540)	$	(1,279)	$	2,345	(2)	$	(12,424)	$	98,179

	Twelve Months Ended December 31, 2020
	Care Enablement		Care Partners		Care Delivery		Other		Intersegment Elimination			Corporate Costs		Consolidated Total
Third Party	$	35,645	$	638,865	$	12,409	$	261	$	—		$	—	$	687,180
Intersegment	63,703		—		13,661		64		(77,428)			—		—
Total revenues	99,348		638,865		26,070		325		(77,428)			—		687,180
Cost of services	47,040		545,340		22,568		130		(75,867)			—		539,211
General and administrative(1)	23,243		30,250		7,429		509		(2,499)			8,534		67,466
Total expenses	70,283		575,590		29,997		639		(78,366)			8,534		606,677
Income (loss) from operations	$	29,065	$	63,275	$	(3,927)	$	(314)	$	938	(2)	$	(8,534)	$	80,503

(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.