Discontinued Operations

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

NOTE 20. Discontinued Operations

Discontinued operations is 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.

On October 31, 2023, the Company completed the disposition of MDX Hawaii and its related operations. The Company’s decision to exit Hawaii and the Independent Practice Association line of business represents a strategic shift that will have a major effect on its operations and financial results. As such, the Company’s Hawaii operations are reflected in the consolidated financial statements as discontinued operations for all periods presented.

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

	Year Ended December 31,
	2024		2023		2022
Revenues:
Medical services revenue	$	—	$	266,279	$	320,018
Other operating revenue	—		414		498
Total revenues	—		266,693		320,516
Expenses:
Medical services expense	—		270,222		305,972
Other medical expenses	1,420		8,732		13,127
General and administrative	(930)		4,151		11,156
Depreciation and amortization	—		4,118		4,823
Income (loss) from operations	(490)		(20,530)		(14,562)
Other income (expense), net	(571)		646		75
Gain (loss) on sales of assets, net	(8,763)		(47,548)		—
Interest expense	—		(118)		(41)
Income (loss) before income taxes and noncontrolling interests	(9,824)		(67,550)		(14,528)
Income tax benefit (expense)	—		—		(26)
Net income (loss) from discontinued operations attributable to common shares	$	(9,824)	$	(67,550)	$	(14,554)

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

	Year Ended December 31,
	2023		2022
Non-cash operating activities from discontinued operations:
Depreciation and amortization	$	4,118	$	4,823
Stock-based compensation expense	169		312
Other non-cash items	169		326
Cash flows from investing activities:
Purchase of property and equipment	—		(12)
Purchase of intangible assets	—		(7,000)