Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 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, less impairments, 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 September 30, 2023, the Company’s intangible assets, net consists of the following:

	Weighted average amortization period	Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets
Amortizing intangible assets:
Payor contracts	13 years	$	22,191	$	(9,503)	$	12,688
Trade names	10 years	6,650		(2,431)		4,219
Clinical contracts and noncompete agreements	8 years	3,078		(1,424)		1,654
Total intangible assets		$	31,919	$	(13,358)	$	18,561

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 and thereafter as of September 30, 2023 is as follows:

(in thousands)	Amount
Year ending December 31:
2023 (remaining three months)	$	770
2024	3,078
2025	3,075
2026	3,050
2027	2,923
Thereafter	5,665
Total	$	18,561

The aggregate amortization expense during the three months ended September 30, 2023 and 2022 was $784 and $741, respectively. The aggregate amortization expense during the nine months ended September 30, 2023 and 2022 was $2,240 and $2,153, 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 September 30, 2023 and December 31, 2022 is as follows:

(in thousands)	September 30, 2023		December 31, 2022
Patient services	$	2,679	$	16,235
Dispensary	4,551		4,551
Clinical trials & other	—		632
Total goodwill	$	7,230	$	21,418

The changes in the carrying amount of goodwill for the nine months ended September 30, 2023 and for the year ended December 31, 2022 are as follows:

(in thousands)	September 30, 2023		December 31, 2022
Balance as of January 1	$	21,418	$	26,626
Goodwill acquired	2,679		4,736
Goodwill impairment charges (see Note 2 and Note 7)	(16,867)		(9,944)
Balance, ending	$	7,230	$	21,418