The Company’s acquisitions are accounted for using the acquisition method pursuant to the requirements of FASB ASC Topic 805, Business Combinations ("ASC 805"), and are included in the Company’s consolidated financial statements since the respective acquisition date. See Note 1, General Information - Business Combinations, for more information on the Company's use of the acquisition method of accounting for business acquisitions.

During the three months ended March 31, 2026, the Company acquired certain assets from a previous provider in two separate transactions solely to facilitate the transition and servicing of the patients related to a newly awarded at-risk capitated contract which was earned organically. These transactions were accounted for as business combinations under ASC 805. The goodwill generated from these transactions is attributable to the operating efficiencies and expanded infrastructure needed to transition and serve the patients related to the newly awarded at-risk capitated contract. The goodwill recorded during the three months ended March 31, 2026 is expected to be deductible for tax purposes. The total consideration paid for these transactions consisted of cash payments of $84.7 million.

The Company allocated the consideration paid to the net assets acquired based on their estimated acquisition date fair values. Based upon management’s evaluation, the consideration paid for these transactions during the three months ended March 31, 2026 was allocated as follows during the period (in thousands):


Inventory	$	272
Prepaid and other current assets	100
Equipment and other fixed assets	56,678
Other long term assets	46
Deferred tax assets	1,650
Operating lease right-of-use assets	2,673
Goodwill	25,937
Operating lease liabilities	(2,673)
Net assets acquired	$	84,683