Variable Interest Entities (VIEs)

6 Months Ended

Jun. 30, 2023

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 their treatment.

The following table includes assets that can only be used to settle the liabilities of APC and its consolidated entities and 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.

	June 30, 2023		December 31, 2022
			(Restated)
Assets
Current assets
Cash and cash equivalents	$	79,598	$	97,669
Investment in marketable securities	1,068		4,543
Receivables, net	15,187		11,503
Receivables, net – related party	76,678		62,190
Income taxes receivable	—		8,580
Other receivables	586		1,236

	June 30, 2023		December 31, 2022
			(Restated)
Prepaid expenses and other current assets	9,211		9,289
Loan receivable	—		22
Loan receivable – related party	—		2,125
Amount due from affiliates*	—		30,340
Total current assets	182,328		227,497
Non-current assets
Land, property, and equipment, net	121,310		106,486
Intangible assets, net	49,439		53,964
Goodwill	110,182		111,539
Income taxes receivable, non-current	15,943		15,943
Investment in affiliates*	325,457		304,755
Investments in other entities – equity method	32,222		27,561
Investment in privately held entities	405		405
Operating lease right-of-use assets	4,906		6,503
Other assets	4,099		4,169
Total non-current assets	663,963		631,325
Total assets	$	846,291	$	858,822
Current liabilities
Accounts payable and accrued expenses	$	22,014	$	23,632
Fiduciary accounts payable	8,603		7,853
Medical liabilities	42,923		48,100
Income taxes payable	13,100		—
Dividends payable	638		638
Amount due to affiliates*	5,428		—
Current portion of long-term debt	630		619
Finance lease liabilities	591		594
Operating lease liabilities	1,463		1,800
Total current liabilities	95,390		83,236
Non-current liabilities
Long-term debt, net of current portion and deferred financing costs	27,922		26,645
Deferred tax liability	2,467		4,591
Finance lease liabilities, net of current portion	1,078		1,275
Operating lease liabilities, net of current portion	6,062		7,484
Other long-term liabilities	8,680		8,542
Total non-current liabilities	46,209		48,537
Total liabilities	$	141,599	$	131,773

*Investment in affiliates includes APC’s investment in ApolloMed, which is reflected as treasury shares and eliminated upon consolidation. Amount due from affiliates are receivables with ApolloMed’s subsidiaries and consolidated VIEs. Amount due to affiliates are payables 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 June 30, 2023 and December 31, 2022.