Segment Reporting

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Our business is organized into three operating business segments and one non-operating business segment:

•Integrated Care Management—through our Thrasys subsidiary;

•Virtual Care Infrastructure—through our Glocal and Cloudbreak subsidiaries;

•Services—through our Innovations, BHS, and TTC subsidiaries; and

•Corporate—through UpHealth and our UpHealth Holdings subsidiary.

The reportable segments are consistent with how management views our services and products and the financial information reviewed by the chief operating decision makers. We manage our businesses as components of an enterprise for which separate information is available and is evaluated regularly by the chief operating decision makers in deciding how to allocate resources and assess performance.

In the Integrated Care Management segment, we provide our customers with an advanced, comprehensive, and extensible technology platform, marketed under the umbrella “SyntraNetTM” to manage health, quality of care, and costs, especially for individuals with complex medical, behavioral health, and social needs.

In the Virtual Care Infrastructure segment, we provide technology and process-based healthcare platforms providing our customers comprehensive primary care, specialty consultations, and translation services, through telemedicine, digital dispensaries, and technology-based hospital centers.

In the Services segment, we provide custom compounded medications for the unique needs of every patient and prescriber. We are a full-service pharmacy filling prescriptions from our inventory of compounded medications, as well as drugs purchased from manufacturers. Additionally, we provide inpatient and outpatient substance abuse and mental health treatment services for individuals with drug and alcohol addiction and other behavioral health issues. We offer a complete continuum of care from detoxification services, residential care, partial hospitalization programs, and intensive outpatient and outpatient programs.

In the Corporate segment, we perform executive, administrative, finance, human resources, legal, and information technology services for UpHealth, Inc. and for its subsidiaries, managed in a corporate shared services environment. Since they are not the responsibility of segment operating management, they are not allocated to the operating segments and instead reported within Corporate.

We evaluate performance based on several factors, of which Revenue, Gross Margin, Adjusted EBITDA, and Total Assets are the primary financial measures:

Revenue by segment consisted of the following:

In thousands	Three Months Ended March 31, 2022		Three Months Ended March 31, 2021
Integrated Care Management	$	2,612	$	6,289
Virtual Care Infrastructure	15,630		590
Services	17,730		5,937
Total revenue	$	35,972	$	12,816

Gross margin by segment consisted of the following:

In thousands	Three Months Ended March 31, 2022		Three Months Ended March 31, 2021
Integrated Care Management	$	1,637	$	5,219
Virtual Care Infrastructure	7,261		299
Services	6,406		1,412
Total gross margin	$	15,304	$	6,930

Total assets by segment consisted of the following:

In thousands	March 31, 2022		December 31, 2021
Integrated Care Management	$	155,757	156,106
Virtual Care Infrastructure	210,962		217,668
Services	125,988		127,114
Corporate	56,029		68,419
Total assets	$	548,736	$	569,307

Total assets by geography consisted of the following:

In thousands	March 31, 2022		December 31, 2021
Americas	$	469,861	481,705
Asia	78,875		87,602
Total assets	$	548,736	$	569,307