Revenue Recognition

6 Months Ended

Jun. 30, 2020

Revenue Recognition

Revenue Recognition

Note C — 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”), and 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 and six months ended June 30, 2020 and 2019:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
(in thousands)	2020		2019		2020		2019
Patient Care Segment
Medicare	$	64,191	$	75,640	$	125,916	$	133,416
Medicaid		31,243		37,344		62,071		67,491
Commercial Insurance/ Managed Care (excluding Medicare and Medicaid Managed Care)		70,828		78,808		137,268		149,026
Veterans Administration		16,826		22,497		34,718		40,819
Private Pay		12,771		16,879		26,069		31,017
Total	$	195,859	$	231,168	$	386,042	$	421,769

The impact to revenue related to prior period performance obligations was not material for the three and six months ended June 30, 2020 and 2019.

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 Product & Services segment for the three and six months ended June 30, 2020 and 2019:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
(in thousands)	2020		2019		2020		2019
Products & Services Segment
Distribution services, net of intersegment revenue eliminations	$	26,527	$	37,662	$	58,217	$	70,857
Therapeutic solutions		11,048		12,268		22,914		24,891
Total	$	37,575	$	49,930	$	81,131	$	95,748