Revenue Recognition

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Patient Care Segment

Revenue in our Patient Care segment is primarily derived from contracts with third party payors for the provision of O&P devices and is recognized upon the transfer of control of promised products or services to the patient at the time the patient receives the device. At, or subsequent to delivery, we issue an invoice to the third party payor, which primarily consists of commercial insurance companies, Medicare, Medicaid, the U.S. Department of Veterans Affairs (the “VA”), or private or patient pay (“Private Pay”) individuals. We recognize revenue for the amounts we expect to receive from payors based on expected contractual reimbursement rates, which are net of estimated contractual discounts and implicit price concessions. These revenue amounts are further revised as claims are adjudicated, which may result in additional disallowances.

The following table disaggregates revenue from contracts with customers in our Patient Care segment for the three months ended March 31, 2022 and 2021:

	For the Three Months Ended March 31,
(in thousands)	2022		2021
Patient Care Segment
Medicare	$	65,854	$	57,335
Medicaid	39,272		34,048
Commercial insurance / managed care (excluding Medicare and Medicaid managed care)	77,343		69,663
VA	21,049		19,764
Private Pay	16,300		14,872
Total	$	219,818	$	195,682

The impact to revenue related to prior period performance obligations was not material for the three months ended March 31, 2022 or 2021.

Products & Services Segment

Revenue in our Products & Services segment is derived from the distribution of O&P components and from therapeutic solutions which includes the leasing and sale of rehabilitation equipment and ancillary consumable supplies combined with equipment maintenance, education, and training.

The following table disaggregates revenue from contracts with customers in our Products & Services segment for the three months ended March 31, 2022 and 2021:

	For the Three Months Ended March 31,
(in thousands)	2022		2021
Products & Services Segment
Distribution services, net of intersegment revenue eliminations	$	31,390	$	30,660
Therapeutic solutions	10,079		11,128
Total	$	41,469	$	41,788