General form of registration statement for all companies including face-amount certificate companies

REVENUE

v3.22.4
REVENUE
9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
REVENUE    
REVENUE

3. REVENUE

The Company disaggregates revenue from contracts with customers by revenue stream as this depicts the nature, amount, timing and uncertainty of its revenue and cash flows as affected by economic factors. Commercial insurance consists of neuromonitoring cases whereby a patient has healthcare insurance. Facility billing consists of neuromonitoring cases whereby the company has an agreement with the facility for services. In these cases, the hospital’s patient may be uninsured or have government insurance.

The Company’s revenue disaggregated by payor is as follows (in thousands):

Three Months Ended September 30, 

Nine Months Ended September 30, 

2022

    

2021

2022

    

2021

  

 

  

  

 

  

Commercial insurance

$

4,283

$

6,164

$

6,801

$

12,507

Facility billing

1,185

995

3,457

2,846

Managed service agreements

400

965

1,247

3,024

Other

 

336

 

422

 

1,045

 

1,156

Total

$

6,204

$

8,546

$

12,550

$

19,533

Accounts Receivable

A summary of the accounts receivable, net, by revenue stream is as follows (in thousands):

September 30, 

December 31,

    

2022

    

2021

Technical service

$

9,539

 

$

18,904

Professional service

10,971

8,209

Other

 

350

 

697

Total accounts receivable, net

$

20,860

$

27,810

The concentration of accounts receivable, net, by payor as a percentage of total accounts receivable is as follows:

As of September 30,

As of December 31,

    

2022

    

2021

Commercial insurance

91

%

91

%

Facility billing

6

%

2

%

Other

3

%

7

%

Total

 

100

%

100

%

4. REVENUE

The Company disaggregates revenue from contracts with customers by revenue stream as this depicts the nature, amount, timing and uncertainty of its revenue and cash flows as affected by economic factors. Commercial insurance consists of all Neuromonitoring cases whereby a patient has healthcare insurance. Facility billing consists of services related to uninsured or government patients whereby the Company has an agreement with the facility for services for the patient and other contracted agreements with facilities.  

The Company’s revenue disaggregated by payor is as follows (stated in thousands):

Year Ended December 31, 

2021

    

2020

Commercial insurance

$

20,792

$

(3,830)

Facility billing

3,879

1,942

Managed service agreements

3,044

4,209

Other

 

1,477

 

1,203

Total

$

29,192

$

3,524

Quarterly Period Collection Experience for 2020

In conjunction with the Company’s June 30, 2020 collection analysis, the Company looked at more recent payment trends from the private insurance companies than what it has historically utilized in order to estimate the accounts receivable collection allowances and patient service revenue. These recent payment trends were lower than what the Company would have normally calculated based upon its historical policy. Rather than wait until these more recent payment trends entered into the collection analyses in future periods, the Company pro-actively decided to set its June 30, 2020 collection estimates based upon these more recent collection payment trends. The impact of this was a reduction of accounts receivable and out-of-network fee revenue of approximately $15 million.

Similar declines to the payment trends for the PEs were also noted during the June 30, 2020 collection analysis. In order to be consistent with the handling of the out-of-network fee revenue, the PEs also pro-actively recorded their collection estimates based upon the more recent collection payment trends. The Company’s portion of the reduced accounts receivable and out-of-network fee revenue was approximately $3.1 million, with approximately $2.2 million being recorded as a reduction of management fee revenue and approximately $900 thousand being recorded as a reduction to earnings (loss) from equity method investments.

Accounts Receivable

A summary of the accounts receivable by revenue stream is as follows (stated in thousands):

December 31, 

    

2021

    

2020

Accounts receivable, net:

Technical service

$

18,904

 

$

12,436

Professional service

8,209

2,142

Other

 

697

 

387

Total accounts receivable, net

$

27,810

$

14,965

The concentration of accounts receivable by payor as a percentage of total accounts receivable is as follows:

December 31, 

2021

  

2020

Accounts receivable

 

  

Commercial insurance

91

%

91

%

Facility billing

2

%

1

%

Managed service agreements

3

%

8

%

Other

 

4

%

 

%

Total

 

100

%

 

100

%