Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The Company accounts for goodwill at acquisition-date fair value and other intangible assets at acquisition-date fair value less accumulated depreciation. See Note 2 for a summary of the Company’s policies relating to goodwill and intangible assets.

Intangible Assets

As of March 31, 2022, the Company’s intangible assets, net consists of the following:

(in thousands)	Weighted average amortization period	Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets
Amortizing intangible assets:
Payor contracts	10 years	$	19,400	$	(6,623)	$	12,777
Trade names	10 years	4,170		(1,451)		2,719
Clinical contracts	9 years	2,909		(833)		2,076
Total intangible assets		$	26,479	$	(8,907)	$	17,572

As of December 31, 2021, the Company’s intangible assets, net consists of the following:

(in thousands)	Weighted average amortization period	Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets
Amortizing intangible assets:
Payor contracts	10 years	$	19,400	$	(6,152)	$	13,248
Trade names	10 years	4,170		(1,350)		2,820
Clinical contracts	10 years	2,909		(732)		2,177
Total intangible assets		$	26,479	$	(8,234)	$	18,245

The estimated aggregate amortization expense for each of the five succeeding fiscal years as of March 31, 2022 is as follows:

(in thousands)	Amount
Year ending December 31:
2022	$	2,011
2023	2,639
2024	2,639
2025	2,639
2026	2,617
Thereafter	5,027
Total	$	17,572

The aggregate amortization expense during the three months ended March 31, 2022 and 2021 were $673 and $612, respectively.

Goodwill

The Company evaluates goodwill at the reporting unit level, which, for the Company, is at the level of the reportable segments, dispensary, patient services, and clinical trials & other. The goodwill allocated to each of the reporting units as of March 31, 2022 and December 31, 2021 is as follows:

(in thousands)	March 31, 2022		December 31, 2021
Patient services	$	21,443	$	21,443
Dispensary	4,551		4,551
Clinical trials & other	632		632
Total goodwill	$	26,626	$	26,626

The changes in the carrying amount of goodwill for the three months ended March 31, 2022 and for the year ended December 31, 2021 are as follows:

(in thousands)	2022		2021
Balance as of January 1:
Gross goodwill	$	26,626	$	14,227
Goodwill acquired during the period	—		12,399
Accumulated impairment losses	—		—
Goodwill, net as of March 31 and December 31	$	26,626	$	26,626