Segment Reporting

3 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

14. Segment Reporting

During the first quarter of fiscal year 2023, we made certain changes in the way we manage our business and view operating results. Specifically, we made the following changes:

Established the Enterprise Imaging business as a standalone reportable segment under its own general manager, reporting directly to our chief executive officer. This business was previously presented within the Software and Analytics reportable segment.

Shifted responsibility for certain products from one reportable segment to another to better align our portfolio of service offerings, which will impact the Technology-Enabled Services, Network Solutions, and Software and Analytics reportable segments.

Segment information presented below reflects the above changes, including retrospective adjustment to any historical segment information presented. Management now views the Company’s operating results based on four reportable segments: Software and Analytics, Network Solutions, Enterprise Imaging and 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, and risk adjustment and quality performance.

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.

Enterprise Imaging

The Enterprise Imaging segment provides locally-hosted and cloud-native technologies for medical imaging, including radiology, cardiology and hemodynamic solutions. The suite of products supports operational, clinical and financial outcomes for imaging providers. 

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 months ended June 30, 2022 and 2021 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
	June 30,
	2022		2021
Segment Revenue
Software and Analytics	$	344,927	$	337,823
Network Solutions		223,283		218,264
Enterprise Imaging		83,085		82,396
Technology-Enabled Services		213,169		216,776
Postage and Eliminations (1)		20,005		17,058
Purchase Accounting Adjustment (2)		—		(4,461)
Net Revenue	$	884,469	$	867,856
Segment Adjusted EBITDA
Software and Analytics	$	144,973	$	137,028
Network Solutions		111,433		113,617
Enterprise Imaging		18,648		19,960
Technology-Enabled Services		5,126		12,123
Adjusted EBITDA	$	280,180	$	282,728
Reconciliation of income (loss) before tax provision (benefit) to Adjusted EBITDA
Income (loss) before income tax provision (benefit)	$	(32,479)	$	(12,055)
Amortization of capitalized software developed for sale		1,302		717
Depreciation and amortization		171,722		168,211
Interest expense		56,870		59,386
Equity compensation		49,961		26,166
Acquisition accounting adjustments		(4,613)		(559)
Acquisition and divestiture-related costs		17,944		6,394
Integration and related costs		1,428		11,368
Strategic initiatives, duplicative and transition costs		5,629		9,928
Severance costs		2,482		4,720
Accretion and changes in estimate, net		4,800		4,732
Impairment of long-lived assets and other		1,161		1,612
Loss on extinguishment of debt		390		—
Other non-routine, net		3,583		2,108
Adjusted EBITDA	$	280,180	$	282,728

⁽¹⁾Revenue for the Postage and Eliminations segment includes postage revenue of $53,126 and $51,208 for the three months ended June 30, 2022 and 2021, respectively.

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