Revenue Recognition

9 Months Ended

Sep. 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 nine months ended September 30, 2020 and 2019:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
(in thousands)	2020		2019		2020		2019
Patient Care Segment
Medicare	$	68,135	$	72,879	$	194,052	$	206,295
Medicaid		34,541		36,140		96,612		103,631
Commercial Insurance / Managed Care (excluding Medicare and Medicaid Managed Care)		75,966		83,384		213,234		232,410
Veterans Administration		19,339		23,816		54,057		64,635
Private Pay		14,683		14,712		40,751		45,729
Total	$	212,664	$	230,931	$	598,706	$	652,700

The impact to revenue related to prior period performance obligations was not material for the three and nine months ended September 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 nine months ended September 30, 2020 and 2019:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
(in thousands)	2020		2019		2020		2019
Products & Services Segment
Distribution services, net of intersegment revenue eliminations	$	32,711	$	36,653	$	90,928	$	107,510
Therapeutic solutions		11,262		12,054		34,176		36,945
Total	$	43,973	$	48,707	$	125,104	$	144,455