Segment Reporting

6 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

19. Segment Reporting

Management views the operating results based on three reportable segments: (a) Software and Analytics, (b) Network Solutions and (c) Technology-Enabled Services.

Software and Analytics

The Software and Analytics segment provides solutions for revenue cycle management, provider network management, payment accuracy, value-based payments, clinical decision support, consumer engagement, risk adjustment and quality performance, and imaging and clinical workflow.

Network Solutions

The Network Solutions segment provides solutions for financial, administrative, clinical and pharmacy transactions, electronic payments and aggregation and analytics of clinical and financial data.

Technology-Enabled Services

The Technology-Enabled Services segment provides solutions for financial and administrative management, value-based care, communication and payment, pharmacy benefits administration and healthcare consulting.

Postage and Eliminations

Postage and eliminations includes pass-through postage costs, as well as eliminations to remove inter-segment revenue and expenses and consolidating adjustments to classify certain rebates paid to channel partners as a reduction of revenue. These administrative costs are excluded from the adjusted EBITDA measure for each respective reportable segment.

Segment Results

Revenue and adjusted EBITDA for each of the reportable segments for the three and six months endedSeptember 30, 2020 are shown below.  Information is reflected in the manner utilized by management to make operating decisions, assess performance and allocate resources. Such amounts include allocations of corporate shared services functions that are essential to the core operations of the reportable segments. Segment assets and related depreciation expenses are not presented to management for purposes of operational decision making, and therefore are not included in the accompanying tables.

	Three Months Ended		Six Months Ended
	September 30, 2020		September 30, 2020
Segment Revenue
Software and Analytics	$	354,860	$	746,449
Network Solutions		184,095		326,921
Technology-Enabled Services		231,817		419,523
Postage and Eliminations (1)		24,073		51,136
Purchase Accounting Adjustment (2)		(38,909)		(93,909)
Net Revenue	$	755,936	$	1,450,120
Segment Adjusted EBITDA
Software and Analytics	$	117,393	$	261,325
Network Solutions		94,508		165,011
Technology-Enabled Services		19,940		2,360
Adjusted EBITDA	$	231,841	$	428,696
Reconciliation of income (loss) before tax provision (benefit) to Adjusted EBITDA
Income (loss) before income tax provision (benefit)	$	(56,010)	$	(128,165)
Amortization of capitalized software developed for sale		12		89
Depreciation and amortization		146,869		285,409
Interest expense		61,627		124,294
Equity compensation		14,331		23,914
Acquisition accounting adjustments		34,686		83,225
Acquisition and divestiture-related costs		2,337		7,458
Integration and related costs		7,536		17,894
Strategic initiatives, duplicative and transition costs		3,765		8,845
Severance costs		3,172		7,876
Accretion and changes in estimate, net		5,293		11,188
Impairment of long-lived assets and other		7,447		13,760
Gain on sale of businesses		(176)		(28,270)
Contingent consideration		(550)		(3,000)
Loss on Extinguishment of Debt		1,489		1,489
Other non-routine, net		13		2,690
Adjusted EBITDA	$	231,841	$	428,696

⁽¹⁾ Revenue for the Postage and Eliminations segment includes postage revenue of $50,023 and $95,795 for the three and six months ended September 30, 2020, respectively.

⁽²⁾ Amount reflects the impact to deferred revenue resulting from the Merger which reduced revenue recognized during the period.

Prior to the Merger, the Company had minimal operations outside of the investment in the Joint Venture and the Company’s standalone operating results were not utilized by management to make operating decisions, assess performance, or allocate resources. As such, the Company reported its results as a single reportable segment for the three and six months ended September 30, 2019.