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Related Party Transactions
9 Months Ended
Sep. 30, 2022
Related Party Transactions  
Related Party Transactions

(15)        Related Party Transactions

The Company and one of its executive officers and shareholder own an equity interest in a vendor of the Company that provides automated order intake software. The individual’s equity ownership is less than 1%. The expense related to this vendor was $1.8 million and $1.2 million for the three months ended September 30, 2022 and 2021, respectively. The expense related to this vendor was $4.9 million and $3.4 million for the nine months ended September 30, 2022 and 2021, respectively. The Company accounts for this investment under the cost method of accounting based on its level of equity ownership. As of September 30, 2022 and December 31, 2021, the Company had an immaterial outstanding accounts payable balance to this vendor.

A director of the Company serves on the board of directors of a third-party payor that does business with the Company in the normal course of providing services to patients. Net revenue from this third-party payor was less than 1.0% of the Company’s consolidated net revenue during the three and nine months ended September 30, 2022 and 2021. As of September 30, 2022 and December 31, 2021, the Company had an immaterial outstanding accounts receivable balance from this third-party payor.

A director of the Company is an employee of a beneficial owner of more than 5% of the Company’s Common Stock as of September 30, 2022. This beneficial owner is also a minority shareholder of a vendor that provides equipment and supplies to the Company in the normal course of business. Purchases from this vendor were approximately $20.3 million and $49.8 million, respectively, for the three and nine months ended September 30, 2022. As of September 30, 2022, the Company had $12.6 million in outstanding accounts payable to this vendor. Purchases from this vendor for the three and nine months ended September 30, 2021 and the outstanding accounts payable to this vendor as of December 31, 2021 were immaterial.

A regional manager of the Company is a partial owner of a business which provides contract labor to the Company. Payments to this service provider were $5.7 million and $4.3 million, respectively, for the three months ended September 30, 2022 and 2021, and $16.2 million and $13.7 million, respectively, for the nine months ended September 30, 2022 and 2021. As of September 30, 2022, the Company had $2.2 million in outstanding accounts payable to this service provider. The outstanding accounts payable to this service provider as of December 31, 2021 was immaterial.