Discontinued Operations

6 Months Ended

Jun. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

15. Discontinued Operations

Hospitals and Large Physician Practices Discontinued Operation

On May 2, 2022, we sold substantially all of the assets of the Hospitals and Large Physician Practices Business. The Hospitals and Large Physician Practices Business sale represented a strategic shift that had a major effect on our operations and financial results. As of June 30, 2022, we reported the Hospitals and Large Physician Practices Business as discontinued operations. Prior to the sale, the Hospitals and Large Physician Practices Business was part of the former Hospitals and Large Physician Practices reportable segment.

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 June 30, 2022 and December 31, 2021:


(In thousands)	June 30, 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	$	20,000	$	55,834
Restricted cash		0		861
Accounts receivable, net of allowance of $16,584 as of December 31, 2021		0		155,447
Contract assets, net of allowance of $492 as of December 31, 2021		0		61,382
Prepaid expenses and other current assets		0		58,431
Total current assets attributable to discontinued operations		20,000		331,955

Fixed assets, net		0		38,083
Software development costs, net		0		97,416
Intangible assets, net		0		86,240
Goodwill		0		467,871
Deferred taxes, net		0		6,607
Contract assets - long-term, net of allowance of $739 as of December 31, 2021		0		28,623
Right-of-use assets - operating leases		0		50,585
Other assets		0		17,731
Total long-term assets attributable to discontinued operations	$	0	$	793,156

Carrying amounts of major classes of liabilities associated with Hospitals and Large Physician Practices included as part of discontinued operations:

Accounts payable	$	30,372	$	11,555
Accrued expenses		0		38,007
Accrued compensation and benefits		0		61,167
Deferred revenue		0		205,152
Current operating lease liabilities		0		13,466
Total current liabilities attributable to discontinued operations		30,372		329,347

Deferred revenue long-term		0		2,568
Long-term operating lease liabilities		0		48,068
Other liabilities		0		270
Total long-term liabilities attributable to discontinued operations	$	0	$	50,906

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 and six months ended June 30, 2022 and 2021.


	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2022			2021			2022			2021
Major income and expense line items related to Hospitals and Large Physician Practices:
Revenue:
Provider	$	70,569		$	232,508		$	284,799		$	467,208
Total revenue		70,569			232,508			284,799			467,208
Cost of revenue:
Provider		45,806			149,175			189,498			296,747
Total cost of revenue		45,806			149,175			189,498			296,747
Gross profit		24,763			83,333			95,301			170,461
Selling, general and administrative expenses		19,782			50,966			68,531			100,511
Research and development		8,130			30,277			31,986			58,790
Asset impairment charges		0			5,072			0			5,072
Amortization of intangible assets		88			3,461			3,538			6,921
Loss from discontinued operations for Hospitals and Large Physician Practices		(3,237	)		(6,443	)		(8,754	)		(833	)
Other (loss) income, net		(484	)		229			12			468
Gain on sale of discontinued operations		2,765			0			2,765			0
Equity in net (loss) income of unconsolidated investments		(76	)		0			(76	)		0
Loss from discontinued operations for Hospitals and Large Physician Practices before income taxes		(1,032	)		(6,214	)		(6,053	)		(365	)
Income tax (provision) benefit		(66,256	)		1,976			(56,849	)		420
(Loss) income from discontinued operations, net of tax for Hospitals and Large Physician Practices	$	(67,288	)	$	(4,238	)	$	(62,902	)	$	55

EPSi and CarePort Discontinued Operations

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 at this time. 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 and six months ended June 30, 2021. The activity during the three and six months ended June 30, 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			Six Months Ended
(In thousands)	June 30, 2021			June 30, 2021
Major income and expense line items related to EPSi and CarePort:
Revenue:
Provider	$	368		$	0
Total revenue		368			0
Cost of revenue:
Provider		316			(48	)
Total cost of revenue		316			(48	)
Gross profit		52			48
Selling, general and administrative expenses		9			74
Research and development		8			(32	)
Income from discontinued operations for EPSi and CarePort		35			6
Other income, net		1			1
Gain on sale of discontinued operations		0			647
Income from discontinued operations for EPSi and CarePort before income taxes		36			654
Income tax provision		(15	)		(169	)
Income from discontinued operations, net of tax for EPSi and CarePort	$	21		$	485