RESTRUCTURING CHARGES

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES

In October 2022, we announced our decision to further focus our business on our Fully Aligned Care Model, and that we will no longer offer commercial plans through Bright HealthCare, or Medicare Advantage products outside of California in 2023. As result of these strategic changes, we announced and have taken actions to restructure the Company’s workforce and reduce expenses based on our updated business model.

Restructuring charges by reportable segment and corporate for the periods ended March 31 were as follows (in thousands):

	Three Months Ended March 31, 2023
	Bright HealthCare		Consumer Care		Corporate & Eliminations		Total
Employee termination benefits	$	6	$	(41)	$	(725)	$	(760)
Long-lived asset impairments	—		—		880		880
Contract termination and other costs	55		—		3,182		3,237
Total continuing operations	$	61	$	(41)	$	3,337	$	3,357

The $0.9 million of long-lived asset impairments is the result of a lease abandonment for one of our corporate office locations during the three months ended March 31, 2023.

	Three Months Ended March 31, 2022
	Bright HealthCare		Consumer Care		Corporate & Eliminations		Total
Employee termination benefits	$	—	$	—	$	6,097	$	6,097
Long-lived asset impairments	—		—		—		—
Contract termination and other costs	—		—		767		767
Total continuing operations	$	—	$	—	$	6,864	$	6,864

Restructuring accrual activity recorded by major type for the three months ended March 31, 2023 were as follows (in thousands):

	Employee Termination Benefits		Contract Termination Costs		Total
Balance at January 1, 2023	$	24,077	$	515	$	24,592
Charges	(1,716)		—		(1,716)
Cash payments	(9,739)		(100)		(9,839)
Balance at March 31, 2023	$	12,622	$	415	$	13,037

Employee termination benefits are recorded within Other current liabilities while contract termination costs are recorded within Accounts payable.