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Leases
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Leases Leases
The Company has operating and finance leases for corporate offices, physicians’ offices, and certain equipment. These leases have remaining lease terms of four months to fifteen years. Some of the leases may include options to extend the lease terms for up to ten years, and some of the leases may include options to terminate the leases within one year. As of September 30, 2023 and December 31, 2022, assets recorded under finance leases were $1.8 million and $1.8 million, respectively, and accumulated depreciation associated with finance leases were $1.5 million and $1.0 million, respectively.
Also, the Company rents or subleases certain real estate to third parties, which are accounted for as operating leases.
Leases with an initial term of 12 months or less are not recorded on the balance sheets.
The components of lease expense were as follows (in thousands):
Three Months Ended September 30,
20232022
Operating lease cost
$2,187 $1,655 
Finance lease cost
Amortization of lease expense
202 138 
Interest on lease liabilities
35 17 
Sublease income(307)(132)
Total lease cost, net$2,117 $1,678 
Nine Months Ended September 30,
20232022
Operating lease cost$5,570 $4,780 
Finance lease cost
Amortization of lease expense505 422 
Interest on lease liabilities80 54 
Sublease income(806)(464)
Total lease cost, net$5,349 $4,792 
Other information related to leases was as follows (in thousands):
Three Months Ended
September 30,
20232022
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$2,016 $1,712 
Operating cash flows from finance leases202 17 
Financing cash flows from finance leases35 138 
Nine Months Ended September 30,
20232022
 
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$5,636 $4,758 
Operating cash flows from finance leases505 54 
Financing cash flows from finance leases80 422 
Nine Months Ended September 30,
20232022
Weighted Average Remaining Lease Term
Operating leases6.84 years6.37 years
Finance leases3.18 years2.91 years
Weighted Average Discount Rate
Operating leases5.75 %4.92 %
Finance leases5.19 %4.33 %
The following are future minimum lease payments under non-cancellable leases for the years ending December 31 (in thousands) below:
Operating Leases
Finance Leases
2023 (excluding the nine months ended September 30, 2023)$1,237 $194 
20244,734 719 
20254,503 556 
20264,255 302 
20273,890 243 
Thereafter11,840 7 
Total future minimum lease payments
30,459 2,021 
Less: imputed interest
5,925 171 
Total lease liabilities
24,534 1,850 
Less: current portion
3,528 655 
Long-term lease liabilities
$21,006 $1,195 
Leases Leases
The Company has operating and finance leases for corporate offices, physicians’ offices, and certain equipment. These leases have remaining lease terms of four months to fifteen years. Some of the leases may include options to extend the lease terms for up to ten years, and some of the leases may include options to terminate the leases within one year. As of September 30, 2023 and December 31, 2022, assets recorded under finance leases were $1.8 million and $1.8 million, respectively, and accumulated depreciation associated with finance leases were $1.5 million and $1.0 million, respectively.
Also, the Company rents or subleases certain real estate to third parties, which are accounted for as operating leases.
Leases with an initial term of 12 months or less are not recorded on the balance sheets.
The components of lease expense were as follows (in thousands):
Three Months Ended September 30,
20232022
Operating lease cost
$2,187 $1,655 
Finance lease cost
Amortization of lease expense
202 138 
Interest on lease liabilities
35 17 
Sublease income(307)(132)
Total lease cost, net$2,117 $1,678 
Nine Months Ended September 30,
20232022
Operating lease cost$5,570 $4,780 
Finance lease cost
Amortization of lease expense505 422 
Interest on lease liabilities80 54 
Sublease income(806)(464)
Total lease cost, net$5,349 $4,792 
Other information related to leases was as follows (in thousands):
Three Months Ended
September 30,
20232022
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$2,016 $1,712 
Operating cash flows from finance leases202 17 
Financing cash flows from finance leases35 138 
Nine Months Ended September 30,
20232022
 
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$5,636 $4,758 
Operating cash flows from finance leases505 54 
Financing cash flows from finance leases80 422 
Nine Months Ended September 30,
20232022
Weighted Average Remaining Lease Term
Operating leases6.84 years6.37 years
Finance leases3.18 years2.91 years
Weighted Average Discount Rate
Operating leases5.75 %4.92 %
Finance leases5.19 %4.33 %
The following are future minimum lease payments under non-cancellable leases for the years ending December 31 (in thousands) below:
Operating Leases
Finance Leases
2023 (excluding the nine months ended September 30, 2023)$1,237 $194 
20244,734 719 
20254,503 556 
20264,255 302 
20273,890 243 
Thereafter11,840 7 
Total future minimum lease payments
30,459 2,021 
Less: imputed interest
5,925 171 
Total lease liabilities
24,534 1,850 
Less: current portion
3,528 655 
Long-term lease liabilities
$21,006 $1,195