Segment Reporting

9 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

19. Segment Reporting

Management views the Company’s 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 nine months endedDecember  31, 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		Nine Months Ended
	December 31, 2020		December 31, 2020
Segment Revenue
Software and Analytics	$	372,212	$	1,118,661
Network Solutions		192,588		519,509
Technology-Enabled Services		222,514		642,037
Postage and Eliminations (1)		22,006		73,142
Purchase Accounting Adjustment (2)		(24,179)		(118,088)
Net Revenue	$	785,141	$	2,235,261
Segment Adjusted EBITDA
Software and Analytics	$	120,779	$	382,103
Network Solutions		103,847		268,858
Technology-Enabled Services		8,798		11,158
Adjusted EBITDA	$	233,424	$	662,119
Reconciliation of income (loss) before tax provision (benefit) to Adjusted EBITDA
Income (loss) before income tax provision (benefit)	$	(2,366)	$	(130,531)
Amortization of capitalized software developed for sale		460		550
Depreciation and amortization		151,143		436,552
Interest expense		61,439		185,733
Equity compensation		10,944		34,858
Acquisition accounting adjustments		20,601		103,826
Acquisition and divestiture-related costs		2,661		10,119
Integration and related costs		9,688		27,581
Strategic initiatives, duplicative and transition costs		4,324		13,169
Severance costs		2,591		10,467
Accretion and changes in estimate, net		(2,759)		8,429
Impairment of long-lived assets and other		658		14,418
Gain on sale of businesses		(32,217)		(60,487)
Contingent consideration		—		(3,000)
Loss on extinguishment of debt		6,145		7,634
Other non-routine, net		112		2,801
Adjusted EBITDA	$	233,424	$	662,119

⁽¹⁾ Revenue for the Postage and Eliminations segment includes postage revenue of $49,877 and $145,672 for the three and nine months ended December  31, 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 nine months ended December 31, 2019.