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DISCONTINUED OPERATIONS (Tables)
 6 Months Ended
Jun. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Discontinued Operations
The table below presents the balance sheet of BHIC-Texas on November 29, 2023, the date the Deconsolidated Entity was placed into receivership.

Cash and cash equivalents$60,560 
Prepaids and other current assets1,522 
Risk Share Receivable123,981 
Total Assets $186,063 
Accounts payable$135 
Medical costs payable3,283 
Other current liabilities1,523 
Risk adjustment payable89,638 
Total Liabilities 94,579 
Additional paid-in capital204,753 
Accumulated deficit (113,269)
Total Equity91,484 
Total Liabilities and Equity$186,063 
As of June 30, 2024, the major classes of assets and liabilities of AMD are presented separately in the Condensed Consolidated Balance Sheets as follows (in thousands):
Accounts receivable$8,034 
Prepaids and other current assets124 
Current assets of held-for-sale operations8,158 
Accounts payable216 
Other current liabilities3,765 
Current liabilities of held-for-sale operations$3,981 
The operations classified as held-for-sale are as follows (in thousands):
Three Months Ended
June 30, 2024		Six Months Ended
June 30, 2024
Revenue:
Capitated revenue$2,849 $5,730 
Service revenue2,202 5,384 
Unaffiliated revenue5,051 11,114 
Affiliated revenue 449 1,023 
Total revenue of held-for-sale operations5,500 12,137 
Operating expenses:
Medical costs2,022 3,974 
Operating costs8,244 14,057 
Impairment of intangible assets11,411 11,411 
Depreciation and amortization494 989 
Total operating expenses from held-for-sale operations22,171 30,431 
Operating loss from held-for-sale operations$(16,671)$(18,294)
The financial results of discontinued operations by major line item for the periods ended June 30 were as follows (in thousands):

Three Months Ended June 30, 2024Total
Revenue:
Premium revenue$(11,124)
Investment income1,226 
Total revenue from discontinued operations(9,898)
Operating expenses:
Medical costs50 
Operating costs1,800 
Restructuring charges475 
Total operating expenses from discontinued operations2,325 
Operating loss from discontinued operations(12,223)
Interest expense7,308 
Gain on sale of Docsquad business(991)
Loss from discontinued operations before income taxes(18,540)
Income tax expense (benefit)(101)
Net loss from discontinued operations$(18,439)

Three Months Ended June 30, 2023Bright HealthCare - CommercialBright HealthCareOtherTotal
Revenue:
Premium revenue$(15,354)443,532 $— $428,178 
Service revenue— — — — 
Investment income21,120 400 — 21,520 
Total revenue from discontinued operations5,766 443,932 — 449,698 
Operating expenses:
Medical costs14,588 400,114 — 414,702 
Operating costs34,204 54,284 317 88,805 
Restructuring charges1,655 5 1 1,661 
Depreciation and amortization— 1,465 — 1,465 
Total operating expenses from discontinued operations50,447 455,868 318 506,633 
Operating loss from discontinued operations(44,681)(11,936)(318)(56,935)
Interest expense— — — — 
Loss from discontinued operations before income taxes(44,681)(11,936)(318)(56,935)
Income tax expense (benefit)— — — — 
Net loss from discontinued operations$(44,681)$(11,936)$(318)$(56,935)
Six Months Ended June 30, 2024Total
Revenue:
Premium revenue$(11,339)
Investment income2,794 
Total revenue from discontinued operations(8,545)
Operating expenses:
Medical costs(3,709)
Operating costs8,385 
Restructuring charges96 
Total operating expenses from discontinued operations4,772 
Operating loss from discontinued operations(13,317)
Interest expense16,073 
Gain on sale of Docsquad business(991)
Loss from discontinued operations before income taxes(28,399)
Income tax expense (benefit)(95)
Net loss from discontinued operations$(28,304)
Six Months Ended June 30, 2023Bright HealthCare - CommercialBright HealthCareOtherTotal
Revenue:
Premium revenue$(14,588)896,849 $— $882,261 
Service revenue30 — 2,383 2,413 
Investment income42,011 438 — 42,449 
Total revenue from discontinued operations27,453 897,287 2,383 927,123 
Operating expenses:
Medical costs60,602 828,839 — 889,441 
Operating costs81,682 110,623 2,366 194,671 
Restructuring charges9,611 5 1 9,617 
Depreciation and amortization— 5,872 — 5,872 
Total operating expenses from discontinued operations151,895 945,339 2,367 1,099,601 
Operating loss from discontinued operations(124,442)(48,052)16 (172,478)
Interest expense— — — — 
Loss from discontinued operations before income taxes(124,442)(48,052)16 (172,478)
Income tax expense (benefit)— — — — 
Net loss from discontinued operations$(124,442)$(48,052)$16 $(172,478)
    
The following table presents cash flows from operating and investing activities for discontinued operations for the six months ended June 30, 2024 and 2023 (in thousands):

Six Months Ended June 30,
20242023
Cash used in operating activities - discontinued operations$(59,514)$(667,237)
Cash provided by investing activities - discontinued operations199,702 157,048 

Assets and liabilities of discontinued operations were as follows (in thousands):

June 30, 2024
Bright HealthCare - Commercial
Assets
Current assets:
Cash and cash equivalents$128,033 
Short-term investments7,590 
Accounts receivable, net of allowance1,427 
Prepaids and other current assets5,325 
Current assets of discontinued operations142,375 
Total assets of discontinued operations$142,375 
Liabilities
Current liabilities:
Medical costs payable$13,603 
Accounts payable8,682 
Risk adjustment payable286,991 
Other current liabilities34,709 
Current liabilities of discontinued operations343,985 
Total liabilities of discontinued operations$343,985 
December 31, 2023
Bright HealthCare - CommercialBright HealthCareTotal
Assets
Current assets:
Cash and cash equivalents$159,769 $128,212 $287,981 
Short-term investments9,163 20,218 29,381 
Accounts receivable, net of allowance1,430 51,929 53,359 
Prepaids and other current assets7,838 114,532 122,370 
Property, equipment and capitalized software, net— 17,954 17,954 
Intangible assets, net— 138,982 138,982 
Goodwill— 172,543 172,543 
Current assets of discontinued operations178,200 644,370 822,570 
Total assets of discontinued operations$178,200 $644,370 $822,570 
Liabilities
Current liabilities:
Medical costs payable$31,881 $272,138 $304,019 
Accounts payable25,648 7,719 33,367 
Risk adjustment payable291,146 — 291,146 
Other current liabilities28,045 43,181 71,226 
Current liabilities of discontinued operations376,720 323,038 699,758 
Total liabilities of discontinued operations$376,720 $323,038 $699,758 
The following is a summary of our investment securities (in thousands):
June 30, 2024
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Carrying
Value
Cash equivalents$102,093 $— $(1)$102,092 
Held to maturity:
U.S. government and agency obligations7,479 — — 7,479 
Corporate obligations111 — — 111 
Total held-to-maturity securities7,590 — — 7,590 
Total investments$109,683 $— $(1)$109,682 

December 31, 2023
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Carrying
Value
Cash equivalents$150,939 $— $— $150,939 
Available for sale:
U.S. government and agency obligations1,557 — (100)1,457 
Corporate obligations615 — (11)604 
Certificates of deposit19,653 — — 19,653 
Mortgage-backed securities951 — (63)888 
Total available-for-sale securities22,776 — (174)22,602 
Held to maturity:
U.S. government and agency obligations6,503 1 (59)6,445 
Certificates of deposit334 — — 334 
Total held-to-maturity securities6,837 1 (59)6,779 
Total investments$180,552 $1 $(233)$180,320 
Schedule of Purchase Price Adjustments The $500.0 million purchase price includes $167.3 million of purchase price adjustments subject to contingencies and adjustments relating to TNE (in thousands):
Consolidation and Adjustment Escrow Amount (1)
$100,000 
TNE deficit at closing (2)
57,326 
Indemnity Escrow Amount (3)
10,000 
Total consideration subject to contingencies$167,326 

(1) Contingent upon either (i) Molina obtaining regulatory approval of the consolidation of BND into CHP or (ii) receipt by BND of a Part D Summary Rating for its Part D operations for contract year 2025 of at least 3 Stars from CMS. If this contingency is successful, it is payable in November 2024 net of any TNE deficit deterioration and subject to certain other purchase price adjustments as described further in the Amendment.

(2) Amount by which minimum required TNE exceeds estimated TNE as of December 31, 2023. To the extent the TNE deficit improves on a restated basis by the cutoff date of June 30, 2024, Molina will owe the Company for that difference, payable in November 2024. To the extent the TNE deficit worsens on a restated basis by the time of the cutoff date, such difference will be deducted from Consolidation and Adjustment Escrow Amount. If the conditions around the
Consolidation and Adjustment Escrow Amount are not satisfied, Molina would retain the Consolidation and Adjustment Escrow Amount in satisfaction of any TNE deficit deterioration.

(3) For 18 months post-closing date, the Company will indemnify Molina against and are liable to Molina for any and all losses incurred by Molina resulting from breach or inaccuracy of warranties and representations made, breach or failure to perform any covenant of the Molina Purchase Agreement, among others. As the Indemnity Escrow Amount is subject to these conditions for 18 months post close, the Company will only recognize this amount in the fair value of consideration received at the point those 18 months have passed, on July 1, 2025. The amount recognized will be that equal to the $10.0 million Indemnity Escrow amount less any agreed upon or finally adjudicated losses as of July 1, 2025
Schedule of Investment and Sale of Business
At the time of the sale, our investment in the California MA business was calculated as follows (in thousands):

Total assets (1)
$647,254 
Total liabilities(323,038)
Investment in California MA Business$324,216 

(1) Total assets of the California MA business at the time of the sale are inclusive of $2.9 million unsettled intercompany receivable that was eliminated at consolidation. NeueHealth has recorded the corresponding payable within other current liabilities of our continuing operations as of June 30, 2024.

The company recorded no gain or loss associated with the sale of the California Medicare Advantage business (in thousands):

Sale price of California MA Business$500,000 
Less: Portion of sale price subject to contingencies(167,326)
Less: Investment in California MA Business(324,216)
Less: Transactions costs contingent on closing of sale(8,458)
Gain or loss on sale of California MA Business$— 
Schedule of Restructuring Charges
Restructuring charges by reportable segment and corporate for the periods ended June 30 were as follows (in thousands):

Three Months Ended June 30, 2024
NeueCareNeueSolutionsCorporate & EliminationsTotal
Employee termination benefits$— $— $239 $239 
Long-lived asset impairments— — — — 
Contract termination and other costs— — — — 
Total continuing operations$— $— $239 $239 
Three Months Ended June 30, 2023
NeueCareNeueSolutionsCorporate & EliminationsTotal
Employee termination benefits$— $— $1,387 $1,387 
Long-lived asset impairments— — — — 
Contract termination and other costs— — (102)(102)
Total continuing operations$— $— $1,285 $1,285 

Six Months Ended June 30, 2024
NeueCareNeueSolutionsCorporate & EliminationsTotal
Employee termination benefits$— $— $181 $181 
Long-lived asset impairments— — — — 
Contract termination and other costs— — — — 
Total continuing operations$— $— $181 $181 

Six Months Ended June 30, 2023
NeueCareNeueSolutionsCorporate & EliminationsTotal
Employee termination benefits$(44)$3 $662 $621 
Long-lived asset impairments— — 880 880 
Contract termination and other costs— — 85 85 
Total continuing operations$(44)$3 $1,627 $1,586 
Restructuring charges within our discontinued operations for the three and six months ended June 30, 2024 and 2023 were as follows (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Employee termination benefits$73 $213 $202 $3,177 
Long-lived asset impairments— 2,489 — 7,429 
Contract termination and other costs402 (1,041)(106)(989)
Total discontinued operations restructuring charges$475 $1,661 $96 $9,617 
Schedule of Restructuring Accrual
Restructuring accrual activity recorded by major type for the six months ended June 30, 2024 were as follows (in thousands):

Employee Termination BenefitsContract Termination CostsTotal
Balance at January 1, 2024$8,389 $— $8,389 
Net charges181 — 181 
Cash payments(5,406)— (5,406)
Balance at June 30, 2024
$3,164 $— $3,164 
Restructuring accrual activity recorded by major type for the six months ended June 30, 2024 was as follows (in thousands):

Employee Termination BenefitsContract Termination CostsTotal
Balance at January 1, 2024$2,867 $22,492 $25,359 
Net charges202 (106)96 
Cash payments(1,920)(17,386)(19,306)
Balance at June 30, 2024$1,149 $5,000 $6,149 
Schedule of Medical Costs Payable
The following table shows the components of the change in medical costs payable for the six months ended June 30, 2024 and 2023 (in thousands):

June 30,
20242023
Medical costs payable - January 1$157,903 $116,021 
Incurred related to:
Current year380,782 504,307 
Prior year(6,227)1,029 
Total incurred374,555 505,336 
Paid related to:
Current year277,748 347,629 
Prior year117,666 93,873 
Total paid395,414 441,502 
Medical costs payable - June 30$137,044 $179,855 
The table below details the components making up the medical costs payable as of June 30, 2024 and December 31, 2023 (in thousands):

June 30, 2024December 31, 2023
Claims unpaid1,074 — 
Payables due to CMS (1)
32,706 — 
Provider incentive payable9,600 2,367 
Incurred but not reported (IBNR)93,664 155,536 
Total medical costs payable$137,044 $157,903 

(1)     Payables due to CMS primarily relate to out-of-network claims the Company is required to pay as a result of our ACO REACH Care Partner, Babylon, filing for bankruptcy.
The table below details the components making up the medical costs payable within current liabilities of discontinued operations (in thousands):
Bright HealthCare - Commercial
June 30, 2024December 31, 2023
Claims unpaid
$8,966 $14,500 
Claims adjustment expense liability
227 2,382 
Incurred but not reported (IBNR)
4,410 14,999 
Total medical costs payable of discontinued operations
$13,603 $31,881