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Segments
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segments Segments
The Company determined its operating segments in accordance with ASC 280, “Segment Reporting” (“ASC 280”). The Company currently has three reportable segments consisting of: 1) Care Enablement; 2) Care Partners; and 3) Care Delivery (See Note 1 – Description of Business). The Company’s reportable segments changed from one to three in the first quarter of 2023 as a result of certain changes to the information regularly provided to the Company’s chief operating decision makers (“CODMs”) when reviewing the Company’s performance as well as an effort to provide additional transparency to investors and other financial statement users which the Company believes will assist in the evaluation of changes in the operating results of the Company’s segments separate from non-operational factors that affect net income, thus providing insight into both operations and other factors impacting reported results.
The Company evaluates the performance of its operating segments based on segment revenue growth as well as operating income. Management uses revenue growth and total segment operating income as a measure of the performance of operating businesses separate from non-operating factors. The Company’s operations are based in the United States. All revenues of the Company are derived from the United States. Our segments are not evaluated using asset information.
Our Care Enablement segment is an integrated, end-to-end clinical and administrative platform powered by our proprietary technology suite, which provides operational, clinical, financial, technology, management, and strategic services to enable success in the delivering of high-quality, value-based care for providers and payers. Revenue for this segment is primarily comprised of management and software fees, charged as a percentage of gross revenue or on a per-member-per-month basis.
Our Care Partners segment is focused on building and managing high-quality and high-performance provider networks by partnering with, empowering, and investing in strong provider partners with a shared vision for coordinated care delivery. Under relevant accounting guidance, while our IPAs and ACO are two operating segments, they share similar economic characteristics and meet other criteria which permit us to aggregate them into a single reportable segment, which we have done. Revenue for this segment is primarily comprised of capitation and risk pool settlements and incentives.
Our Care Delivery segment is a patient-centric, data-driven care delivery organization focused on delivering high-quality and accessible care to all patients. Our care delivery organization includes primary care, multi-specialty care, and ancillary care services. Revenue is primarily earned based on fee-for-service reimbursements, capitation, and performance-based incentives.
Other is not a reportable segment and primarily consists of real estate operations and other entities that are individually immaterial. Revenue is primarily comprised of equipment sales and real estate revenue is presented in other income.
In the normal course of business, our reportable segments enter into transactions with each other. While intersegment transactions are treated like third-party transactions to determine segment performance, the revenues recognized by a segment and expenses incurred by the counterparty are eliminated in consolidation and do not affect consolidated results.
Corporate costs are unallocated and primarily include corporate initiatives, corporate infrastructure costs and corporate shared costs, such as finance, human resources, legal, and executives.
The following table presents information about our segments and prior periods have been recast to conform to the current presentation (in thousands):
Three Months Ended June 30, 2023
Care Enablement
Care Partners
Care DeliveryOtherIntersegment EliminationCorporate CostsConsolidated Total
Third Party$12,719 $321,776 $13,603 $111 $— $— $348,209 
Intersegment22,256 3,470 13,115 46 (38,887)— — 
Total revenues34,975 325,246 26,718 157 (38,887)— 348,209 
Cost of services15,162 292,119 22,523 70 (36,998)— 292,876 
General and administrative(1)
12,175 5,298 3,626 926 (2,933)9,212 28,304 
Total expenses27,337 297,417 26,149 996 (39,931)9,212 321,180 
Income (loss) from operations$7,638 $27,829 $569 $(839)$1,044 
(2)
$(9,212)$27,029 
Three Months Ended June 30, 2022
Care Enablement
Care Partners
Care DeliveryOtherIntersegment EliminationCorporate CostsConsolidated Total
Third Party$10,225 $247,269 $11,951 $252 $— $— $269,697 
Intersegment19,333 27 11,400 21 (30,781)— — 
Total revenues29,558 247,296 23,351 273 (30,781)— 269,697 
Cost of services10,921 233,622 17,135 82 (31,690)— 230,070 
General and administrative(1)
11,315 5,725 2,832 743 (896)4,526 24,245 
Total expenses22,236 239,347 19,967 825 (32,586)4,526 254,315 
Income (loss) from operations$7,322 $7,949 $3,384 $(552)$1,805 
(2)
$(4,526)$15,382 
Six Months Ended June 30, 2023
Care Enablement
Care Partners
Care DeliveryOtherIntersegment EliminationCorporate CostsConsolidated Total
Third Party$22,858 $636,413 $25,866 $316 $— $— $685,453 
Intersegment42,683 3,486 26,235 82 (72,486)— — 
Total revenues65,541 639,899 52,101 398 (72,486)— 685,453 
Cost of services30,783 578,197 43,886 133 (70,726)— 582,273 
General and administrative(1)
21,375 11,552 8,612 1,584 (3,967)14,621 53,777 
Total expenses52,158 589,749 52,498 1,717 (74,693)14,621 636,050 
Income from operations$13,383 $50,150 $(397)$(1,319)$2,207 
(2)
$(14,621)$49,403 
Six Months Ended June 30, 2022
Care Enablement
Care Partners
Care DeliveryOtherIntersegment EliminationCorporate CostsConsolidated Total
Third Party$20,912 $488,561 $23,150 $331 $— $— $532,954 
Intersegment38,036 27 20,527 31 (58,621)— — 
Total revenues58,948 488,588 43,677 362 (58,621)— 532,954 
Cost of services24,437 452,295 33,327 126 (59,387)— 450,798 
General and administrative(1)
15,842 10,938 5,875 1,219 (1,515)8,203 40,562 
Total expenses40,279 463,233 39,202 1,345 (60,902)8,203 491,360 
Income (loss) from operations$18,669 $25,355 $4,475 $(983)$2,281 
(2)
$(8,203)$41,594 
(1) Balance includes general and administrative expenses and depreciation and amortization.
(2) Income from operations for the intersegment elimination represents rental income from segments renting from other segments. Rental income is presented within other income which is not presented in the table.