XML 30 R19.htm IDEA: XBRL DOCUMENT v3.23.3
Related-Party Transactions
 9 Months Ended
Sep. 30, 2023
Related Party Transactions [Abstract]  
Related-Party Transactions Related-Party Transactions
During the three months ended September 30, 2023 and 2022, NMM recognized approximately $4.3 million and $4.8 million, respectively in management fees from LMA. During the nine months ended September 30, 2023 and 2022, NMM recognized approximately $16.2 million and $15.9 million, respectively. LMA is accounted for under the equity method based on the 25% equity ownership interest held by APC in LMA’s IPA line of business (see Note 5 — “Investments in Other Entities - Equity Method”). On August 31, 2023, the management service agreement between LMA’s IPA and NMM was terminated.
During the three months ended September 30, 2023 and 2022, NMM recognized approximately $0.5 million and $0.5 million, respectively in management fees from Arroyo Vista Family Health Center (“Arroyo Vista”). During the nine months ended September 30, 2023 and 2022, NMM recognized approximately $1.6 million and $1.4 million, respectively. During the three months ended September 30, 2023 and 2022, the Company paid approximately $0.1 million and $0.1 million, respectively, to Arroyo Vista for services as a provider. During the nine months ended September 30, 2023 and 2022, the Company paid approximately $0.3 million and $0.2 million, respectively. Arroyo Vista’s chief executive officer is a member of the Company’s board of directors.
APC and PMIOC have an Ancillary Service Contract together whereby PMIOC provides covered services on behalf of APC to enrollees of the plans of APC. During the three months ended September 30, 2023 and 2022, APC paid approximately $0.8 million and $0.7 million, respectively, to PMIOC for provider services. During the nine months ended September 30, 2023 and 2022, APC paid approximately $1.9 million and $2.0 million, respectively. PMIOC is accounted for under the equity method based on the 40% equity ownership interest held by APC (see Note 5 — “Investments in Other Entities — Equity Method”).
During the three and nine months ended September 30, 2023, the Company paid approximately $0.3 million and $0.8 million, respectively, to Song PC for provider services. As of January 2023, Song PC is accounted for under the equity method accounting as AP-AMH 2 has the ability to exercise significant influence, but not control over Song PC’s operations.
During the three months ended September 30, 2023 and 2022, APC paid approximately $0.1 million and $0.1 million, respectively, to Advanced Diagnostic Surgery Center for services as a provider. During the nine months ended September 30, 2023 and 2022, APC paid approximately $0.2 million and $0.3 million, respectively. During the three months ended September 30, 2023 and 2022, MPP recognized approximately $0.1 million and $0.1 million, respectively, in rental income from Advanced Diagnostic Surgery Center. During the nine months ended September 30, 2023 and 2022, MPP recognized approximately $0.4 million and $0.4 million, respectively, in rental income from Advanced Diagnostic Surgery Center. Advanced Diagnostic Surgery Center shares common ownership with certain board members of ApolloMed and APC.
During the three months ended September 30, 2023 and 2022, APC paid approximately $0 and $0.2 million, respectively, to Fulgent Genetics, Inc. for services as a provider. During the nine months ended September 30, 2023 and 2022, APC paid approximately $10,000 and $0.5 million, respectively. One of the Company’s board members is a board member of Fulgent Genetics, Inc.
During the three months ended September 30, 2023 and 2022, the Company paid approximately $0.2 million and $1.8 million, respectively, to Sunny Village Care Center for services as a provider. During the nine months ended September 30, 2023 and 2022, the Company paid approximately $1.0 million and $2.8 million, respectively. During the three months ended September 30, 2023 and 2022, Tag 6 recognized approximately $0.4 million and $0.1 million, respectively, in rental income from Sunny Village Care Center. During the nine months ended September 30, 2023 and 2022, Tag 6 recognized approximately $0.9 million and $0.1 million, respectively, in rental income from Sunny Village Care Center. Tag 6 was consolidated by APC in August 2022. Sunny Village Care Center shares common ownership with certain ApolloMed officers and board members of ApolloMed and APC.
During the nine months ended September 30, 2023, ApolloMed paid $9.5 million to purchase ApolloMed’s stock from a board member. During the nine months ended September 30, 2022, APC paid $9.3 million to purchase ApolloMed’s stock from a board member.
During the three months ended September 30, 2023 and 2022, NMM incurred rent expense of approximately $0.4 million and $0.4 million, respectively, to One MSO for an office lease. During the nine months ended September 30, 2023 and 2022, NMM incurred rent expense of approximately $1.1 million and $1.1 million, respectively. One MSO is accounted for under the equity method based on 50% equity ownership interest held by APC (see Note 5 — “Investments in Other Entities — Equity Method”).
During the three and nine months ended September 30, 2023 AMG incurred rent expense of approximately $0.1 million to First Commonwealth Property, LLC for an office lease. First Commonwealth Property, LLC shares common ownership with certain board members of APC and NMM.
The Company has agreements with Health Source MSO Inc., a California corporation (“HSMSO”), Aurion Corporation (“Aurion”), and AHMC for services provided to the Company. One of the Company’s board members is an officer of AHMC, HSMSO, and Aurion. Aurion is also partially owned by one of the Company’s board members. Revenue with AHMC and HSMSO consists of capitation, risk pool, and miscellaneous fees and expenses consist of claims expense, management fees, and consulting fees.
The following table sets forth revenue recognized and fees incurred related to AHMC, HSMSO, and Aurion for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Three months ended September 30, 2023Three months ended September 30, 2022
AHMCHSMSOAurionAHMCHSMSOAurion
Revenue$5,619 $326 $— $15,071 $74 $— 
Expenses6,445 (200)75 1,539 469 75 
Net$(826)$526 $(75)$13,532 $(395)$(75)
Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
AHMCHSMSOAurionAHMCHSMSOAurion
Revenue$37,337 $950 $— $43,361 $793 $— 
Expenses18,505 35225 4,044 1,916 225 
Net$18,832 $915 $(225)$39,317 $(1,123)$(225)
The Company and AHMC have a risk-sharing agreement with certain AHMC hospitals to share the surplus and deficits of each of the hospital pools. Under this agreement, during the three months ended September 30, 2023 and 2022, the Company has recognized risk pool revenue of $4.2 million and $13.6 million, respectfully. During the nine months ended September 30, 2023 and 2022, the Company has recognized risk pool revenue of $33.0 million and $38.9 million, respectfully. The Company has a risk pool receivable balance of $78.7 million and $58.7 million as of September 30, 2023 and December 31, 2022, respectively.
During the three months ended September 30, 2023 and 2022, APC paid an aggregate of approximately $11.6 million and $14.2 million, respectively, to board members for provider services which included approximately $1.3 million and $5.8 million, respectively, to APC board members who are also officers of APC. During the nine months ended September 30, 2023 and 2022, APC paid an aggregate of approximately $30.5 million and $35.3 million, respectively, to board members for provider services which included approximately $3.9 million and $11.0 million, respectively, to board members who are also officers of APC.
In addition, affiliates wholly owned by the Company’s officers, including Dr. Thomas Lam, ApolloMed’s Co-CEO and President, are reported in the accompanying consolidated statements of operations on a consolidated basis, together with the Company’s subsidiaries, and therefore, the Company does not separately disclose transactions between such affiliates and the Company’s subsidiaries as related-party transactions.
For equity method investments and loans receivable from related parties, see Note 5 — “Investment in Other Entities — Equity Method” and Note 6 — “Loan Receivable and Loan Receivable — Related Parties,” respectively.