SEGMENT REPORTING

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

Our reportable segments are described below:

Imaging Center

Our Imaging Center segment provides physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders. Services include magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), nuclear medicine, mammography, ultrasound, diagnostic radiology (X-ray), fluoroscopy and other related procedures. The vast majority of our centers offer multi-modality imaging services, a strategy that diversifies revenue streams, reduces exposure to reimbursement changes and provides patients and referring physicians one location to serve the needs of multiple procedures. Included in the segment is our eRad subsidiary, which designs the underlying critical scheduling, data storage and retrieval systems necessary for imaging center operation.

Artificial Intelligence ("AI")

Our AI segment develops and deploys clinical applications to enhance interpretation of medical images and improve patient outcomes with an emphasis on brain, breast, prostate, and pulmonary diagnostics.

Our chief operating decision maker ("CODM"), who is also our CEO, evaluates the financial performance of our segments based upon their respective revenue and segmented internal profit and loss statements prepared on a basis not consistent with GAAP. We do not report balance sheet information by segment since it is not reviewed by our CODM.

The table below presents segment information reconciled to our financial results, with segment operating income or loss including revenue less cost of operations, depreciation and amortization, and other operating expenses to the extent specifically identified by segment (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenue:
Imaging Centers	$	401,336	$	352,818	$	789,767	$	693,985
AI	2,379		1,557		4,512		2,156
Total revenue	$	403,715	$	354,375	$	794,279	$	696,141
Cost of Operations
Imaging Centers	$	338,630	$	299,350	$	683,211	$	609,460
AI	6,517		6,425		13,801		11,353
Total cost of operations	$	345,147	$	305,775	$	697,012	$	620,813
Depreciation and Amortization:
Imaging Centers	$	30,234	$	27,100	$	59,826	$	52,906
AI	1,946		1,762		3,669		3,074
Total depreciation and amortization	$	32,180	$	28,862	$	63,495	$	55,980
Loss on Disposal of Equipment:
Imaging Centers	$	83	$	36	$	661	$	1,189
AI	(6)		45		(5)		20
Total loss on disposal of equipment	$	77	$	81	$	656	$	1,209
Severance
Imaging Centers	$	153	$	99	$	276	$	300
AI	1,717		—		1,728		—
Total severance	$	1,870	$	99	$	2,004	$	300
Income (Loss) from Operations
Imaging Centers	$	32,236	$	26,233	$	45,793	$	30,130
AI	(7,795)		(6,675)		(14,681)		(12,291)
Total income (loss) from operations	$	24,441	$	19,558	$	31,112	$	17,839