Discontinued Operations

6 Months Ended

Jun. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

NOTE 12. Discontinued Operations

Discontinued operations are a component of an entity that has either been disposed of or is deemed held-for-sale and, (i) the operations and cash flows of the component have been or will be eliminated from ongoing operations as a result of the disposal transaction, and (ii) the entity will not have any significant continuing involvement in the operations of the component after the disposal transaction.

During 2020, the Company implemented a plan to divest its California operations, which included the entirety of its Medicaid line of business, via three separate transactions with different parties. In August 2020, October 2020 and February 2021, the Company disposed of its Southern California operations, Fresno, California operations, and remaining California operations, respectively. The Company’s decision to exit California and the Medicaid line of business represented a strategic shift that had a major effect on its operations and financial results. As such, the Company’s California operations are reflected in the condensed consolidated financial statements as discontinued operations.

See Note 9 for additional details on the Company's investigative interrogatories from the DMHC.

The results of discontinued operations are as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Revenues:
Medical services revenue	$	167		$	(534	)	$	511		$	3,313
Other operating revenue		10			—			10			23
Total revenues		177			(534	)		521			3,336
Expenses:
Medical services expense		(144	)		(1,266	)		(229	)		(628	)
Other medical expenses		—			11			—			2,491
General and administrative		—			2,154			—			4,742
Depreciation and amortization		—			33			—			87
Income (loss) from operations		321			(1,466	)		750			(3,356	)
Other income (expense), net		—			(81	)		—			(33	)
Gain (loss) on sale of assets		—			—			—			491
Income (loss) before income taxes		321			(1,547	)		750			(2,898	)
Income tax benefit (expense)		(14	)		(65	)		(14	)		(129	)
Net income (loss) from    discontinued operations	$	307		$	(1,612	)	$	736		$	(3,027	)

The following table provides significant non-cash operating items for discontinued operations that are included in the condensed consolidated statements of cash flows (in thousands):

	For the Six Months Ended June 30,
	2022		2021
Non-cash operating activities from discontinued operations:
Depreciation and amortization	$	—	$	87