Concentration Credit Risk

12 Months Ended

Dec. 31, 2022

NOTE 3. Concentration of Credit Risk

The Company is economically dependent on maintaining a base of primary care and specialty care physicians as well as capitation contracts with payors. The loss of certain of those contracts could have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

The Company contracts with various payors whereby the Company is entitled to monthly PMPM fees to provide a defined range of healthcare services for members attributed to its contracted primary care physicians. The Company generally accepts full financial risk for such members and therefore is responsible for the cost of all healthcare services required by them. Substantially all of the Company’s receivable balances are from a small number of payors.

Revenue from Medicare Advantage payors constitutes substantially all of the Company’s total revenue for the years ended December 31, 2022, 2021, and 2020.

The following table provides the Company’s revenue concentrations with respect to major payors as a percentage of the Company’s total revenues:


	Year Ended December 31,
	2022			2021			2020
Payor A		25	%		26	%		38	%
Payor B		19	%		20	%		20	%
Payor C		14	%		16	%		11	%
Payor D		10	%		11	%	*

* Less than 10% of total revenues.

The following table provides the Company’s concentrations of credit risk with respect to major payors as a percentage of receivables, net:


	December 31,
	2022			2021
Payor A		13	%		18	%
Payor B		20	%		21	%
Payor C		10	%		14	%
Payor D		10	%		12	%
Payor E		11	%	*

* Less than 10% of total receivables.