Segment Reporting

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company uses the “management approach” for reporting information about segments in annual and interim financial statements.  The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance.  Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company.  Based on the “management approach” model, the Company has determined that its business is comprised of two operating segments: urgent and primary care and ancillary network.

We evaluate performance based on several factors, of which the primary financial measure for each segment is operating income. We define segment operating income for our business segments as income before interest expense, income taxes, depreciation expense, non-cash amortization of intangible assets, non-cash stock-based compensation expense, shared services, severance charges and any non-recurring costs such as transactional costs related to the Company's acquisition program. Shared services primarily consists of compensation costs for the executive management team, facilities costs for the Company's corporate headquarters, shared services such as finance and accounting, human resources, legal, marketing and information technology and general administration. Shared services also includes transactional costs.

Segment assets include accounts receivable, prepaid expenses and other current assets, property and equipment and intangibles. Shared services assets consist of cash and cash equivalents, prepaid insurance, deferred income taxes and property equipment primarily related to information technology assets.

Consolidating assets, by segment and shared services, as of the periods presented are as follows:

(in thousands)	Urgent and Primary Care		Ancillary Network		Shared Services		Consolidated
June 30, 2014	$	3,874	$	4,427	$	3,842	$	12,143
December 31, 2013	—		4,404		6,625		11,029

Consolidating statements of operations by segment for the respective quarter and six months ended are as follows:

(in thousands)	Three Months Ended June 30,					Six Months Ended June 30,
	2014		2013			2014		2013
Net revenue:
Urgent and primary care	$	474	$	—		$	474	—
Ancillary network	5,497		6,443			10,505		14,048
Total revenue	$	5,971	$	6,443		$	10,979	$	14,048
Operating income (Loss):
Urgent and primary care	$	71	$	—		$	71	$	—
Ancillary network	224		(108		)	180		(28		)
Total segment operating income (loss)	$	295	$	(108	)	$	251	$	(28	)

The reconciliation of reportable segment operating income (loss) to the Company's consolidated totals is as follows:

(in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Total segment operating income (loss)	$	295		$	(108	)	$	251		$	(28	)
Shared services	1,041			900			1,922			1,844
Severance charges	—			216			108			216
Non-recurring transactions costs	241			—			398			—
Depreciation and amortization expense	215			212			393			423
Non-cash stock-based compensation expense	123			76			197			153
Interest expense (income)	13			(7		)	9			(15		)
Loss before income taxes	$	(1,338	)	$	(1,505	)	$	(2,776	)	$	(2,649	)