Segments

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segments

Segments

The Company determined its operating segments in accordance with ASC 280, “Segment Reporting” (“ASC 280”). The Company currently has three reportable segments consisting of: 1) Care Partners; 2) Care Delivery; and 3) Care Enablement (See Note 1 – Description of Business). 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.

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 operations are based in the United States. All revenues of the Company are derived from the United States. The Company’s segments are not evaluated using asset information.

The Company’s 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. Under relevant accounting guidance, while the Company’s IPAs and ACO are two operating segments, they share similar economic characteristics and meet other criteria which permits the Company to aggregate them into a single reportable segment, which the Company has done. Revenue for this segment is primarily comprised of capitation and risk pool settlements and incentives.

The Company’s 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.

The Company’s 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 to enable success in the delivering 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.

Other is not a reportable segment and primarily consists of real estate operations and other entities that are individually immaterial. Revenue is primarily comprised of equipment sales and real estate revenue is presented in other income.

In the normal course of business, our reportable segments enter into transactions with each other. 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 our segments and prior periods have been recast to conform to the current presentation (in thousands):

	Three Months Ended September 30, 2023
	Care Partners		Care Delivery		Care Enablement		Other		Intersegment Elimination			Corporate Costs		Consolidated Total
Third Party	$	320,885	$	16,737	$	10,306	$	245	$	—		$	—	$	348,173
Intersegment	5,614		12,524		26,604		49		(44,791)			—		—
Total revenues	326,499		29,261		36,910		294		(44,791)			—		348,173
Cost of services	279,769		25,647		13,658		76		(43,775)			—		275,375
General and administrative(1)	6,390		4,649		16,804		875		(2,086)			7,083		33,715
Total expenses	286,159		30,296		30,462		951		(45,861)			7,083		309,090
Income (loss) from operations	$	40,340	$	(1,035)	$	6,448	$	(657)	$	1,070	(2)	$	(7,083)	$	39,083
	Three Months Ended September 30, 2022
	Care Partners		Care Delivery		Care Enablement		Other		Intersegment Elimination			Corporate Costs		Consolidated Total
Third Party	$	293,586	$	12,873	$	10,281	$	261	$	—		$	—	$	317,001
Intersegment	13		11,955		20,024		52		(32,044)			—		—
Total revenues	293,599		24,828		30,305		313		(32,044)			—		317,001
Cost of services	241,824		18,293		12,677		56		(32,082)			—		240,768
General and administrative(1)	5,478		3,384		12,539		667		(839)			4,913		26,142
Total expenses	247,302		21,677		25,216		723		(32,921)			4,913		266,910
Income (loss) from operations	$	46,297	$	3,151	$	5,089	$	(410)	$	877	(2)	$	(4,913)	$	50,091

	Nine Months Ended September 30, 2023
	Care Partners		Care Delivery		Care Enablement		Other		Intersegment Elimination			Corporate Costs		Consolidated Total
Third Party	$	957,297	$	42,603	$	33,164	$	561	$	—		$	—	$	1,033,625
Intersegment	9,100		38,759		69,287		131		(117,277)			—		—
Total revenues	966,397		81,362		102,451		692		(117,277)			—		1,033,625
Cost of services	857,966		69,533		44,441		209		(114,501)			—		857,648
General and administrative(1)	17,942		13,261		38,181		2,459		(6,053)			21,704		87,494
Total expenses	875,908		82,794		82,622		2,668		(120,554)			21,704		945,142
Income from operations	$	90,489	$	(1,432)	$	19,829	$	(1,976)	$	3,277	(2)	$	(21,704)	$	88,483
	Nine Months Ended September 30, 2022
	Care Partners		Care Delivery		Care Enablement		Other		Intersegment Elimination			Corporate Costs		Consolidated Total
Third Party	$	782,148	$	36,024	$	31,192	$	591	$	—		$	—	$	849,955
Intersegment	40		32,482		58,061		84		(90,667)			—		—
Total revenues	782,188		68,506		89,253		675		(90,667)			—		849,955
Cost of services	694,119		51,620		37,115		181		(91,469)			—		691,566
General and administrative(1)	16,416		9,259		28,380		1,888		(2,354)			13,115		66,704
Total expenses	710,535		60,879		65,495		2,069		(93,823)			13,115		758,270
Income (loss) from operations	$	71,653	$	7,627	$	23,758	$	(1,394)	$	3,156	(2)	$	(13,115)	$	91,685

(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.