Variable Interest Entities (VIEs)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities (VIEs)

Variable Interest Entities (VIEs)A VIE is defined as a legal entity whose equity owners do not have sufficient equity at risk, or, as a group, the holders of the equity investment at risk lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly affect the entity’s economic

performance and the obligation to absorb expected losses or the right to receive benefits from the entity that could potentially be significant to the VIE.

The Company follows guidance on the consolidation of VIEs that requires companies to utilize a qualitative approach to determine whether it is the primary beneficiary of a VIE. See Note 2 – “Basis of Presentation and Summary of Significant Accounting Policies — Variable Interest Entities” to the accompanying consolidated financial statements for information on how the Company determines VIEs and its treatment.

The following table includes assets that can only be used to settle the liabilities of APC and its VIEs, including Alpha Care and Accountable Health Care, and to which the creditors of ApolloMed have no recourse, and liabilities to which the creditors of APC, including Alpha Care and Accountable Health Care, have no recourse to the general credit of ApolloMed, as the primary beneficiary of the VIEs. These assets and liabilities, with the exception of the investment in a privately held entity that does not report net asset value per share and amounts due to affiliates, which are eliminated upon consolidation with NMM, are included in the accompanying consolidated balance sheets (in thousands). The assets and liabilities of the Company’s other consolidated VIEs were not considered significant.

	December 31,
	2022		2021
Assets
Current assets
Cash and cash equivalents	$	97,669	$	161,762
Investment in marketable securities	4,543		49,066
Receivables, net	11,503		7,251
Receivables, net – related party	62,190		62,180
Income taxes receivable	—		1,342
Other receivables	1,236		1,833
Prepaid expenses and other current assets	9,289		11,734
Loans receivable	22		—
Loans receivable — related parties	2,125		4,000
Amounts due from affiliates*	30,340		6,598
Total current assets	218,917		305,766
Non-current assets
Land, property and equipment, net	106,486		49,547
Intangible assets, net	53,964		58,282
Goodwill	118,161		109,656
Loans receivable – related parties	—		89
Investments in other entities – equity method	27,561		41,715
Investment in a privately held entity	405		405
Investment in affiliates*	304,755		802,821
Operating lease right-of-use assets	6,503		4,953
Other assets	4,169		3,219
Total non-current assets	622,004		1,070,687
Total assets	$	840,921	$	1,376,453
Current liabilities
Accounts payable and accrued expenses	$	23,632	$	11,591
Fiduciary accounts payable	7,853		10,534
Medical liabilities	48,100		44,000
Income taxes payable	1,083		—
Dividend payable	638		556
Finance lease liabilities	594		110
Operating lease liabilities	1,800		1,250
Current portion of long-term debt	619		780
Total current liabilities	84,319		68,821
Non-current liabilities
Deferred tax liability	1,465		1,982
Finance lease liabilities, net of current portion	1,275		193
Operating lease liabilities, net of current portion	7,484		3,950
Long-term debt, net of current portion	26,645		7,114

Other long-term liabilities	8,542		9,614
Total non-current liabilities	45,411		22,853
Total liabilities	$	129,730	$	91,674

* Investment in affiliates include APC’s investment in ApolloMed, which is reflected as treasury shares and eliminated upon consolidation. Amounts due from affiliates are receivables with ApolloMed’s subsidiaries and consolidated VIEs. As a result, these balances are eliminated upon consolidation and are not reflected on ApolloMed’s consolidated balance sheets as of December 31, 2022 and 2021.