v3.26.1
Segment Reporting
 12 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 12 — Segment Reporting

The Company operates within one operating segment. The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer. The CODM reviews segment financial information presented on a consolidated basis, including revenue, gross profit and operating expenses, and considers budget-to-actual variances for the purposes of making operating decisions, assessing financial performance and allocating resources.

The Company derives its revenues from providing patient management and network solutions services. Patient management services include claims administration, utilization review, medical case management, and vocational rehabilitation. Network solutions services include fee schedule auditing, hospital bill auditing, coordination of independent medical examinations, diagnostic imaging review services and preferred provider referral services. The percentages of revenues attributable to patient management and network solutions services for the fiscal years ended March 31, 2026, 2025 and 2024 are listed below.

 

 

 

2026

 

 

2025

 

 

2024

 

Patient management services

 

 

62.3

%

 

 

64.9

%

 

 

66.6

%

Network solutions services

 

 

37.7

%

 

 

35.1

%

 

 

33.4

%

 

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

The Company’s management is structured geographically with regional vice presidents who are responsible for all services provided by the Company and the operating results of the Company within their respective regions. Area and district managers support the regional vice presidents by overseeing all services provided by the Company within their given areas and districts. All revenues are derived from customers within the United States, and all long-lived assets are located in the United States.

Under ASC 280-10, two or more operating segments may be aggregated into a single operating segment for financial reporting purposes if aggregation is consistent with the objective and basic principles of the accounting guidance, if the segments have similar economic characteristics, and if the segments are similar in each of the following areas: (i) the nature of products and services, (ii) the nature of the production processes, (iii) the type or class of customer for their products and services, and (iv) the methods used to distribute their products or provide their services. The Company believes its patient management and network solutions services meet these criteria as they provide similar managed care services to similar customers using similar methods of production and distribution. All of the Company’s regions perform both patient management and network solutions services.

The following table presents the financial information for the Company’s one reportable and operating segment for fiscal years ended March 31, 2026, 2025 and 2024:

 

 

 

2026

 

 

2025

 

 

2024

 

Revenues

 

$

958,527,000

 

 

$

895,589,000

 

 

$

795,311,000

 

Less:

 

 

 

 

 

 

 

 

 

Labor expenses

 

 

460,605,000

 

 

 

445,701,000

 

 

 

406,422,000

 

Direct product expenses

 

 

215,466,000

 

 

 

197,184,000

 

 

 

170,989,000

 

Income tax provision

 

 

32,787,000

 

 

 

25,659,000

 

 

 

18,849,000

 

Depreciation and amortization expenses

 

 

31,764,000

 

 

 

29,536,000

 

 

 

26,252,000

 

Occupancy Expense

 

 

20,177,000

 

 

 

21,252,000

 

 

 

21,704,000

 

Other items (1)

 

 

87,384,000

 

 

 

81,092,000

 

 

 

74,843,000

 

Net income

 

$

110,344,000

 

 

$

95,165,000

 

 

$

76,252,000

 

 

(1)

Includes other operating costs (such as marketing and maintenance expenses), net gain (loss) on asset sales and disposals and other costs.