Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

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 amortization. See Note 2 for a summary of the Company’s policies relating to goodwill and intangible assets.

Intangible Assets

As of March 31, 2023, 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	$	(8,509)	$	10,891
Trade names	10 years	6,650		(2,105)		4,545
Clinical contracts and noncompete agreements	8 years	3,025		(1,233)		1,792
Total intangible assets		$	29,075	$	(11,847)	$	17,228

As of December 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	$	(8,038)	$	11,362
Trade names	10 years	6,650		(1,941)		4,709
Clinical contracts and noncompete agreements	8 years	3,025		(1,139)		1,886
Total intangible assets		$	29,075	$	(11,118)	$	17,957

The estimated aggregate amortization expense for each of the five succeeding fiscal years as of March 31, 2023 is as follows:

(in thousands)	Amount
Year ending December 31:
2023 (remaining nine months)	$	2,184
2024	2,913
2025	2,909
2026	2,884
2027	2,757
Thereafter	3,581
Total	$	17,228

The aggregate amortization expense during the three months ended March 31, 2023 and 2022 were $728 and $673, 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, 2023 and December 31, 2022 is as follows:

(in thousands)	March 31, 2023		December 31, 2022
Patient services	$	—	$	16,235
Dispensary	4,551		4,551
Clinical trials & other	—		632
Total goodwill	$	4,551	$	21,418

The changes in the carrying amount of goodwill for the three months ended March 31, 2023 and for the year ended December 31, 2022 are as follows:

(in thousands)	March 31, 2023		December 31, 2022
Balance as of January 1:
Gross goodwill	$	21,418	$	26,626
Goodwill acquired	—		4,736
Goodwill impairment charges (see Note 2 and Note 7)	(16,867)		(9,944)
Goodwill, net as of December 31	$	4,551	$	21,418