Discontinued Operations

3 Months Ended

Mar. 31, 2022

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

15. Discontinued Operations

Hospitals and Large Physician Practices Discontinued Operation

On March 2, 2022, we entered into the Harris Purchase Agreement to sell substantially all of the assets of the Hospitals and Large Physician Practices Business. The Hospitals and Large Physician Practices Business sale represents a strategic shift that will have a major effect on our operations and financial results. Therefore, as of March 31, 2022, we reported the Hospitals and Large Physician Practices Business as discontinued operations. On May 2, 2022, we completed the sale of the Hospitals and Large Physician Practices Business, which is further discussed in Note 18, “Subsequent Events.”

The following table summarizes the major classes of assets and liabilities of the Hospitals and Large Physician Practices Business as reported on the consolidated balance sheets as of March 31, 2022 and December 31, 2021:

(In thousands)	March 31, 2022		December 31, 2021
Carrying amounts of major classes of assets associated with Hospitals and Large Physician Practices included as part of discontinued operations:
Cash and cash equivalents	$	67,671	$	55,834
Restricted cash		847		861
Accounts receivable, net of allowance of $18,045 and $16,584 as of March 31, 2022 and December 31, 2021, respectively		200,407		155,447
Contract assets, net of allowance of $492 as of March 31, 2022 and December 31, 2021		68,786		61,382
Prepaid expenses and other current assets		63,310		58,431
Total current assets		401,021		331,955
Fixed assets, net		33,686		38,083
Software development costs, net		91,810		97,416
Intangible assets, net		77,997		86,240
Goodwill		467,725		467,871
Deferred taxes, net		8,393		6,607
Contract assets - long-term, net of allowance of $739 as of March 31, 2022 and December 31, 2021		31,934		28,623
Right-of-use assets - operating leases		48,089		50,585
Other assets		14,092		17,731
Total assets (1)	$	1,174,747	$	1,125,111
Carrying amounts of major classes of liabilities associated with Hospitals and Large Physician Practices included as part of discontinued operations:
Accounts payable	$	21,708	$	11,555
Accrued expenses		45,852		38,007
Accrued compensation and benefits		37,506		61,167
Deferred revenue		274,541		205,152
Current operating lease liabilities		13,613		13,466
Total current liabilities		393,220		329,347
Deferred revenue long-term		475		2,568
Long-term operating lease liabilities		44,952		48,068
Other liabilities		341		270
Total liabilities (1)	$	438,988	$	380,253

(1) The total assets and total liabilities in the above table for the three months ended March 31, 2022 and for the year ended December 31, 2021, are presented in the balance sheet as of March 31, 2022 as Assets held for sale and Liabilities related to assets held for sale.

The following table summarizes the major income and expense line items of the Hospitals and Large Physician Practices Business as reported in the consolidated statements of operations for the three months ended March 31, 2022 and 2021.

	Three Months Ended March 31,
(In thousands)	2022			2021
Major income and expense line items related to Hospitals and Large Physician Practices:
Revenue:
Provider	$	214,230		$	234,700
Total revenue		214,230			234,700
Cost of revenue:
Provider		143,692			147,572
Total cost of revenue		143,692			147,572
Gross profit		70,538			87,128
Selling, general and administrative expenses		48,749			49,545
Research and development		23,856			28,513
Amortization of intangible assets		3,450			3,460
(Loss) income from discontinued operations for Hospitals and Large Physician Practices		(5,517	)		5,610
Other income, net		496			239
(Loss) income from discontinued operations for Hospitals and Large Physician Practices before income taxes		(5,021	)		5,849
Income tax benefit (provision)		9,407			(1,556	)
Income from discontinued operations, net of tax for Hospitals and Large Physician Practices	$	4,386		$	4,293

EPSi and CarePort Discontinued Operation

During 2020, we implemented a strategic initiative to sell two of our businesses, EPSi and CarePort. Since both businesses were part of the same strategic initiative and were sold within the same period, the combined sale of EPSi and CarePort represented a strategic shift that had a major effect on our operations and financial results. As of December 31, 2020, these businesses were reported together as discontinued operations.

On October 15, 2020, we completed the sale of our EPSi business. Prior to the sale, EPSi was part of the “Unallocated Amounts” category as it did not meet the requirements to be a reportable segment nor the criteria to be aggregated into our two reportable segments. On its own, the divestiture of the EPSi business did not represent a strategic shift that had a major effect on our operations and financial results. However, the combined sale of EPSi and CarePort represented a strategic shift that had a major effect on our operations and financial results. Therefore, EPSi was treated as a discontinued operation.

On December 31, 2020, we completed the sale of our CarePort business. Prior to the sale, CarePort was part of the former Data, Analytics and Care Coordination reportable segment. On its own, the divestiture of the CarePort business represented a strategic shift that had a major effect on our operations and financial results.

The following table summarizes the major income and expense line items of EPSi and CarePort as reported in the consolidated statements of operations for the three months ended March 31, 2021. The activity during the three months ended March 31, 2021 relates to certain adjustments made in connection with the sale of EPSi and CarePort, primarily relating to net working capital adjustments that impacted the gain on the sale of the discontinued operations.

	Three Months Ended
(In thousands)	March 31, 2021
Major income and expense line items related to EPSi and CarePort:
Revenue:
Provider	$	(368	)
Total revenue		(368	)
Cost of revenue:
Provider		(364	)
Total cost of revenue		(364	)
Gross loss		(4	)
Selling, general and administrative expenses		65
Research and development		(40	)
Loss from discontinued operations for EPSi and CarePort		(29	)
Gain on sale of discontinued operations		647
Income from discontinued operations for EPSi and CarePort before income taxes		618
Income tax provision		(154	)
Income from discontinued operations, net of tax for EPSi and CarePort	$	464