During 2020, we implemented a strategic initiative to sell two of our businesses, EPSi and CarePort. Since both businesses were part of the same strategic initiative and were sold within the same period, the combined sale of EPSi and CarePort represented a strategic shift that had a major effect on our operations and financial results. As of December 31, 2020, these businesses were reported together as discontinued operations.

On October 15, 2020, we completed the sale of our EPSi business. Prior to the sale, EPSi was part of the “Unallocated Amounts” category as it did not meet the requirements to be a reportable segment nor the criteria to be aggregated into our two reportable segments. On its own, the divestiture of the EPSi business did not represent a strategic shift that had a major effect on our operations and financial results. However, the combined sale of EPSi and CarePort represented a strategic shift that had a major effect on our operations and financial results. Therefore, EPSi was treated as a discontinued operation.

On December 31, 2020, we completed the sale of our CarePort business. Prior to the sale, CarePort was part of the former Data, Analytics and Care Coordination reportable segment. On its own, the divestiture of the CarePort business represented a strategic shift that had a major effect on our operations and financial results.

The following table summarizes the major classes of assets and liabilities of EPSi and CarePort, as reported on the consolidated balance sheets as of September 30, 2021 and December 31, 2020:

The following table summarizes the major income and expense line items of EPSi and CarePort as reported in the consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020. The activity during the three and nine months ended September 30, 2021 relates to certain adjustments made in connection with the sale of EPSi and CarePort, primarily of which relates to net working capital adjustments that impacted the gain on the sale of the discontinued operations.

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2021			2020			2021			2020
Major income and expense line items related to EPSi and CarePort:
Revenue:
Software delivery, support and maintenance	$	6		$	32,894		$	6		$	96,807
Client services		0			3,517			0			11,883
Total revenue		6			36,411			6			108,690
Cost of revenue:
Software delivery, support and maintenance		15			2,900			(178	)		9,254
Client services		4			4,553			149			13,431
Amortization of software development and acquisition-related assets		0			2,499			0			7,623
Total cost of revenue		19			9,952			(29	)		30,308
Gross (loss) profit		(13	)		26,459			35			78,382
Selling, general and administrative expenses		2			3,788			76			12,974
Research and development		0			2,118			(32	)		7,133
Amortization of intangible assets		0			7			0			22
(Loss) income from discontinued operations for EPSi and CarePort		(15	)		20,546			(9	)		58,253
Interest expense		0			(995	)		0			(3,634	)
Other income, net		1			0			2			0
Gain on sale of discontinued operations		0			0			647			0
(Loss) income from discontinued operations for EPSi and CarePort before income taxes ⁽¹⁾		(14	)		19,551			640			54,619
Income tax provision		0			(5,047	)		(169	)		(14,098	)
(Loss) income from discontinued operations, net of tax for EPSi and CarePort ⁽²⁾	$	(14	)	$	14,504		$	471		$	40,521

(1) (Loss) income from discontinued operations for EPSi and CarePort does not agree to the consolidated statements of operations for the three and nine months ended September 30, 2020, due to residual amounts related to Netsmart (as defined below). Refer to Note 17, “Supplemental Disclosures” for additional information.

(2) (Loss) income from discontinued operations, net of tax for EPSi and CarePort does not agree to the consolidated statements of operations for the three and nine months ended September 30, 2020 due to residual amounts related to Netsmart (as defined below). Refer to Note 17, Supplemental Disclosures” for additional information.