| Segment Information |
Note 15 – Segment Information We report the results of our operations as three segments in our unaudited condensed consolidated financial statements: (i) the hospital division, (ii) the population health management division and (iii) the real estate division. The Company’s chief operating decision maker (“CODM”) is our Chief Executive Officer (“CEO”). The determination of our reporting segments was made based on our strategic priorities, which corresponds to the way our CODM reviews and evaluates operating performance to make decisions about resources to be allocated. For our operating segments, the CODM uses segment gross profit and segment income before tax to allocate resources (including financial and capital resources) in the annual and forecasting processes. On a monthly basis, the CODM considers month-to-month and budget-to-actual variances for both measures when allocating resources to segments. Other hospital division expenses include expenses such as facility-specific utilities, marketing and advertising, repairs and maintenance, and other tax expenses. Corporate costs primarily include expenses for support functions and salaries and benefits for corporate employees and are excluded from segment operating results. Reportable segment information, including intercompany transactions, is presented below (in thousands): | | | | | | | | | | | March 31, | | December 31, | | | | 2025 | | 2024 | Assets: | | | | | | | | Hospital division | | | $ | 715,447 | | $ | 607,591 | Population health management division | | | | 27,271 | | | 28,338 | Real estate division | | | | 19,198 | | | 19,392 | Total Assets | | | $ | 761,916 | | $ | 655,321 |
| | | | | | | | | | | Three Months Ended March 31, | | | | 2025 | | 2024 | Revenue from external customers: | | | | | | | | Hospital division | | | $ | 203,947 | | $ | 60,029 | Population health management division | | | | 7,842 | | | 7,424 | Total revenue | | | $ | 211,789 | | $ | 67,453 | | | | | | | | | Segment expenses: | | | | | | | | Hospital division | | | | | | | | Payroll | | | $ | 34,579 | | $ | 25,875 | Contract services | | | | 31,760 | | | 5,574 | Medical supplies | | | | 3,801 | | | 5,322 | Other hospital division expenses | | | | 11,269 | | | 8,052 | Hospital division expenses | | | | 81,409 | | | 44,823 | Population health management division expenses | | | | 6,950 | | | 8,288 | Total segment expenses | | | $ | 88,359 | | $ | 53,111 | | | | | | | | | Depreciation and amortization: | | | | | | | | Hospital division | | | $ | 4,643 | | $ | 3,764 | Population health management division | | | | 340 | | | 421 | Real estate division | | | | 109 | | | 1 | Total depreciation and amortization | | | $ | 5,092 | | $ | 4,186 | | | | | | | | | Segment gross profit (loss): | | | | | | | | Hospital division | | | $ | 117,895 | | $ | 10,471 | Population health management division | | | | 552 | | | (314) | Real estate division | | | | (109) | | | - | Total segment gross profit | | | $ | 118,338 | | $ | 10,157 | | | | | | | | | Consolidated operating income: | | | | | | | | Total segment gross profit | | | $ | 118,338 | | $ | 10,157 | Corporate and other costs | | | | (46,129) | | | (8,707) | Consolidated operating income | | | $ | 72,209 | | $ | 1,450 | | | | | | | | | Segment income: | | | | | | | | Hospital division | | | | | | | | Hospital division gross profit | | | $ | 117,895 | | $ | 10,471 | Interest expense, net | | | | 5,575 | | | 4,402 | Other expense (income) | | | | 3,354 | | | (229) | Hospital division income before income taxes | | | $ | 108,966 | | $ | 6,298 | Population health management division income (loss) before income taxes | | | | 554 | | | (330) | Real estate division loss before income taxes | | | | (109) | | | (527) | Non-segment loss before income taxes | | | | (46,647) | | | (5,593) | Income (loss) before income taxes | | | $ | 62,764 | | $ | (152) | | | | | | | | | Capital expenditures: | | | | | | | | Hospital division | | | $ | 64 | | $ | 733 | Total capital expenditures | | | $ | 64 | | $ | 733 |
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