Segments

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segments

Segments

The Company’s chief operating decision maker reviews financial performance and allocates resources based on two segments as follows:

•NET Services - which operates primarily under the brands LogistiCare and Circulation, is the largest manager of NEMT programs for state governments and MCOs in the U.S and includes the Company’s activities for executive, accounting, finance, internal audit, tax, legal, certain strategic and development functions and the Company's now dissolved captive insurance company.

•Matrix Investment ("Matrix") - which consists of a minority investment in Matrix, provides a broad array of assessment and care management services that improve health outcomes for individuals and financial performance for health plans. Matrix’s national network of community-based clinicians delivers in-home and on-site services while its fleet of mobile health clinics provides community-based care with advance diagnostic capabilities.

The following tables set forth certain financial information from continuing operations attributable to the Company’s business segments (in thousands):

	Three months ended September 30, 2020
	NET Services		Matrix		Total
Service revenue, net	$	320,619	$	—	$	320,619
Service expense	235,543		—		235,543
General and administrative expense	34,441		—		34,441
Depreciation and amortization	7,301		—		7,301
Operating income	$	43,334	$	—	$	43,334
Equity in net income of investee	$	—	$	10,325	$	10,325
Investment in equity method investee	$	—	$	141,292	$	141,292
Total assets (continuing operations)	$	649,986	$	141,292	$	791,278

	Nine months ended September 30, 2020
	NET Services		Matrix		Total
Service revenue, net	$	970,166	$	—	$	970,166
Service expense	764,310		—		764,310
General and administrative expense	86,435		—		86,435
Depreciation and amortization	17,199		—		17,199
Operating income	$	102,222	$	—	$	102,222
Equity in net income of investee	$	—	$	12,200	$	12,200
Investment in equity method investee	$	—	$	141,292	$	141,292
Total assets (continuing operations)	$	649,986	$	141,292	$	791,278

	Three months ended September 30, 2019
	NET Services		Matrix		Total
Service revenue, net	$	393,385	$	—	$	393,385
Service expense	356,271		—		356,271
General and administrative expense	15,979		—		15,979
Depreciation and amortization	4,148		—		4,148
Operating income	$	16,987	$	—	$	16,987
Equity in net loss of investee	$	—	$	(3,188)	$	(3,188)
Investment in equity method investee	$	—	$	154,532	$	154,532
Total assets (continuing operations)	$	465,688	$	154,532	$	620,220

	Nine months ended September 30, 2019
	NET Services		Matrix		Total
Service revenue, net	$	1,125,111	$	—	$	1,125,111
Service expense	1,042,717		—		1,042,717
General and administrative expense	52,241		—		52,241
Depreciation and amortization	12,976		—		12,976
Operating income	$	17,177	$	—	$	17,177
Equity in net loss of investee	$	—	$	(6,159)	$	(6,159)
Investment in equity method investee	$	—	$	154,532	$	154,532
Total assets (continuing operations)	$	465,688	$	154,532	$	620,220