Acquisitions |
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions | Acquisitions 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 six months ended June 30, 2026, the Company acquired certain assets from two previous providers in four separate transactions solely to facilitate the transition and servicing of the patients related to newly awarded at-risk capitated contracts which were earned organically. 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 contracts. These transactions were accounted for as business combinations under ASC 805. The goodwill recognized during the six months ended June 30, 2026 is expected to be deductible for tax purposes. The total consideration paid for these transactions consisted of cash payments of $127.3 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 six months ended June 30, 2026 was allocated as follows during the period (in thousands):
Net revenue and operating income since the respective acquisition date for the acquisitions described above were immaterial for the three and six months ended June 30, 2026. During the six months ended June 30, 2025, the Company acquired certain assets of two HME providers, each of which was accounted for as a business combination under ASC 805. The goodwill generated from these acquisitions is attributable to expected growth and cost synergies, as well as the expected contribution of each acquisition to the Company’s overall strategy. The goodwill recognized during the six months ended June 30, 2025 is deductible for tax purposes. The total consideration paid for these two acquisitions consisted of cash payments of $18.6 million at closing. 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 all acquisitions during the six months ended June 30, 2025 was allocated as follows during the period (in thousands):
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