Revenue Recognition
The following table presents the Company’s revenues disaggregated by source:
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| For the Years Ended December 31, |
| (Dollars in Thousands) | 2025 | | 2024 | | 2023 |
| FFS-patient care | $ | 1,360,235 | | | $ | 1,146,156 | | | $ | 976,688 | |
| FFS-administrative services | 137,017 | | | 125,431 | | | 113,154 | |
| Capitated revenue | 308,458 | | | 212,987 | | | 338,729 | |
| Shared savings | 234,815 | | | 179,202 | | | 170,143 | |
| Care management fees (PMPM) | 73,138 | | | 64,066 | | | 50,519 | |
| Other revenue | 9,179 | | | 8,548 | | | 8,504 | |
| Total Revenue | $ | 2,122,842 | | | $ | 1,736,390 | | | $ | 1,657,737 | |
| | | | | |
FFS-patient care is primarily generated from third-party payers with which the Company has established contractual billing arrangements. The following table presents the approximate percentages by source of net revenue received for healthcare services provided for the periods indicated:
| | | | | | | | | | | | | | | | | |
| For the Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Commercial insurers | 71 | % | | 71 | % | | 70 | % |
| Government payers | 15 | % | | 14 | % | | 15 | % |
| Patient | 14 | % | | 15 | % | | 15 | % |
| 100 | % | | 100 | % | | 100 | % |
FFS-administrative services revenue is earned through the Company’s MSA with Non-Owned Medical Groups primarily based on a fixed percentage of net collections from patient care generated by those medical groups.
VBC revenue is primarily earned through contracts that include Capitated revenue, Shared savings and Care management fees. Capitated revenue is generated from “at-risk contracts” under which the Company receives a fixed monthly payment from third-party payers in exchange for providing healthcare services to attributed beneficiaries. The Company is responsible for delivering or covering the cost of required healthcare services attributed to these beneficiaries. At-risk Capitated revenue is recorded gross in revenues as the Company acts as the principal in arranging, providing, and controlling managed healthcare services provided to the attributed lives. Shared savings revenue and Care management fees are generated through contracts with large commercial payer organizations and the U.S. Federal Government.
For shared savings arrangements, the Company estimates the transaction price by analyzing the activities during the relevant time period in consideration of the agreed-upon benchmarks, metrics, performance criteria, inflation trends, risks adjustment factors, attribution criteria and any other contractually defined factors. Revenue is recognized only when the transaction price can be reasonably estimated and it is probable that a significant reversal will not occur, once uncertainties related to the variable consideration are resolved. Revenue is recorded over the period in which services are provided, typically during a pre-set twelve-month measurement period. Subsequent changes to the estimated transaction price are generally recorded as adjustments to revenue in the period of the change. In September 2025, the Company received final settlement notices from CMS for the Company’s portion of MSSP shared savings generated during the 2024 performance year. For the year ended December 31, 2025, the amount of revenue recognized related to the change in estimate of our Shared Savings accrual was $28.5 million.
Contract Asset
The Company has the following contract assets:
| | | | | | | | | | | |
| (Dollars in Thousands) | December 31, 2025 | | December 31, 2024 |
| Balances for contracts with customers | | | |
Accounts receivable, net | $ | 400,902 | | | $ | 316,179 | |
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Remaining Performance Obligations
The Company does not disclose the value of the remaining performance obligations or the expected timing of revenue recognition at the end of the reporting period as it has minimal unsatisfied performance obligations. Patients generally have no obligation to continue receiving services at the Company’s facilities and substantially all performance obligations are satisfied at the time the service is rendered.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.