Variable Interest Entities (VIEs) (Tables)

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Assets and Liabilities, Variable Interest Entities

The following table includes assets that can only be used to settle the liabilities of APC and its consolidated entities and VIEs, including Alpha Care and Accountable Health Care, and to which the creditors of ApolloMed have no recourse, and liabilities to which the creditors of APC, including Alpha Care and Accountable Health Care, have no recourse to the general credit of ApolloMed, as the primary beneficiary of the VIEs. These assets and liabilities, with the exception of the investment in a privately held entity that does not report net asset value per share and amounts due to affiliates, which are eliminated upon consolidation with NMM, are included in the accompanying consolidated balance sheets (in thousands). The assets and liabilities of the Company’s other consolidated VIEs were not considered significant.


	September 30, 2023		December 31, 2022
			(Restated)
Assets

Current assets
Cash and cash equivalents	$	103,227	$	97,669
Investment in marketable securities	522		4,543
Receivables, net	18,895		11,503
Receivables, net – related party	82,606		62,190
Income taxes receivable	—		8,580
Other receivables	748		1,236
Prepaid expenses and other current assets	6,848		9,289
Loan receivable	—		22
Loan receivable – related party	—		2,125
Amount due from affiliates*	—		30,340
Total current assets	212,846		227,497

Non-current assets
Land, property, and equipment, net	125,308		106,486
Intangible assets, net	47,212		53,964
Goodwill	110,182		111,539
Income taxes receivable, non-current	15,943		15,943
Investment in affiliates*	317,732		304,755
Investments in other entities – equity method	30,627		27,561
Investment in privately held entities	405		405
Operating lease right-of-use assets	6,336		6,503
Other assets	5,175		4,169

Total non-current assets	658,920		631,325

Total assets	$	871,766	$	858,822

Current liabilities
Accounts payable and accrued expenses	$	24,362	$	23,632
Fiduciary accounts payable	6,251		7,853
Medical liabilities	40,921		48,100
Income taxes payable	18,927		—
Dividends payable	638		638
Amount due to affiliates*	16,261		—
Current portion of long-term debt	991		619
Finance lease liabilities	655		594
Operating lease liabilities	1,562		1,800


	September 30, 2023		December 31, 2022
			(Restated)

Total current liabilities	110,568		83,236

Non-current liabilities
Long-term debt, net of current portion and deferred financing costs	28,764		26,645
Deferred tax liability	1,948		4,591
Finance lease liabilities, net of current portion	1,194		1,275
Operating lease liabilities, net of current portion	7,397		7,484
Other long-term liabilities	8,745		8,542

Total non-current liabilities	48,048		48,537

Total liabilities	$	158,616	$	131,773

*Investment in affiliates includes APC’s investment in ApolloMed, which is reflected as treasury shares and eliminated upon consolidation. Amount due from affiliates are receivables with ApolloMed’s subsidiaries and consolidated VIEs. Amount due to affiliates are payables with ApolloMed’s subsidiaries and consolidated VIEs. As a result, these balances are eliminated upon consolidation and are not reflected on ApolloMed’s consolidated balance sheets as of September 30, 2023 and December 31, 2022.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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