Revenue Recognition

9 Months Ended

Sep. 30, 2021

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 and nine months ended September 30, 2021 and 2020:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)	2021		2020		2021		2020
Patient Care Segment
Medicare	$	79,586	$	68,135	$	211,169	$	194,052
Medicaid	42,739		34,541		120,475		96,612
Commercial Insurance / Managed Care (excluding Medicare and Medicaid Managed Care)	83,396		75,966		232,828		213,234
Veterans Administration	22,901		19,339		64,298		54,057
Private Pay	15,734		14,683		48,055		40,751
Total	$	244,356	$	212,664	$	676,825	$	598,706

The impact to revenue related to prior period performance obligations was not material for the three and nine months ended September 30, 2021 and 2020.

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 and nine months ended September 30, 2021 and 2020:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)	2021		2020		2021		2020
Products & Services Segment
Distribution services, net of intersegment revenue eliminations	$	34,656	$	32,711	$	98,591	$	90,928
Therapeutic solutions	10,815		11,262		32,700		34,176
Total	$	45,471	$	43,973	$	131,291	$	125,104