Related Parties

9 Months Ended

Sep. 30, 2021

The entities described below are considered related parties and the balances and/or transactions with them are reported in our consolidated financial statements.

As discussed in Note 16, the Company had economic interests in several entities that were previously accounted for under the equity method of accounting, including EVH Passport (which has been consolidated into the Company’s financial results since September 1, 2020). The Company has allocated its proportional share of the investees’ earnings and losses each reporting period. In addition, Evolent has entered into services agreements with certain of the entities to provide certain management, operational and support services to help the entities manage elements of their service offerings.

The Company also works with UPMC, one of its founding investors. The Company’s relationship with UPMC is a subcontractor relationship where UPMC has agreed to execute certain tasks (primarily TPA services) relating to certain customer commitments. This relationship is currently in wind-down.

The following table presents assets and liabilities attributable to our related parties as of September 30, 2021 and December 31, 2020 (in thousands):


	September 30, 2021		December 31, 2020
Assets
Accounts receivable, net	$	4,829	$	9,474
Prepaid expenses and other current assets	10		51
Prepaid expenses and other noncurrent assets	4,796		4,554

Liabilities
Accounts payable	$	2,396	$	2,509
Accrued liabilities	840		1,520
Reserve for claims and performance-based arrangements	129		435

The following table presents revenues and expenses attributable to our related parties for the three and nine months ended September 30, 2021 and 2020 (in thousands):


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue
Transformation services	$	—	$	3,716	$	—	$	5,416
Platform and operations services	9,775		72,383		35,718		214,216

Expenses
Cost of revenue (exclusive of depreciation and amortization expenses)	751		(63)		1,850		1,013
Selling, general and administrative expenses	74		—		186		97