Segment Reporting

12 Months Ended

Dec. 31, 2017

SEGMENT REPORTING

Our chief operating decision makers ("CODM") utilize three operating segments, "Acute Care EHR", "Post-acute Care EHR" and "TruBridge", based on our three distinct business units with unique market dynamics and opportunities. Revenues and costs of sales are primarily derived from the provision of services and sales of our proprietary software, and our CODM assess the performance of these three segments at the gross profit level. Operating expenses and items such as interest, income tax, capital expenditures and total assets are managed at a consolidated level and thus are not included in our operating segment disclosures. Our CODM group is comprised of the Chief Executive Officer, Chief Growth Officer, Chief Operating Officer, and Chief Financial Officer. Accounting policies for each of the reportable segments are the same as those used on a consolidated basis.

As of January 1, 2017, the operating segment formerly identified as "TruBridge, Rycan, and Other Outsourcing" is now identified as "TruBridge".

The following table presents a summary of the revenues, cost of sales, and gross profit of our three operating segments for the years ended December 31, 2017, 2016, and 2015:



	Year Ended December 31,
(In thousands)	2017			2016			2015
Revenues:
Acute Care EHR	$	164,228		$	159,146		$	118,385
Post-acute Care EHR	24,033			26,519			—
TruBridge	88,666			81,607			63,789
Total revenues	276,927			267,272			182,174

Cost of sales:
Acute Care EHR	68,513			74,746			52,500
Post-acute Care EHR	7,481			9,610			—
TruBridge	49,636			45,656			35,216
Total cost of sales	125,630			130,012			87,716

Gross profit:
Acute Care EHR	95,715			84,400			65,885
Post-acute Care EHR	16,552			16,909			—
TruBridge	39,030			35,951			28,573
Total gross profit	151,297			137,260			94,458

Corporate operating expenses	(156,111		)	(122,885		)	(69,372		)
Other income	407			220			405
Loss on extinguishment of debt	(1,340		)	—			—
Interest expense	(7,736		)	(6,609		)	—
Income (loss) before taxes	$	(13,483	)	$	7,986		$	25,491