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INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Our purchased definite-lived intangible assets as of December 31, 2023 and 2022 are summarized as follows:
Total | December 31, 2023
(In thousands) | Customer Relationships |  | Trademark |  | Developed Technology |  | Non-compete Agreements |  | Total
Gross carrying amount, beginning of period | $ | 132,170 |  |  | $ | 12,320 |  |  | $ | 40,800 |  |  | $ | 1,400 |  |  | $ | 186,690 |
Intangible assets acquired | 16,100 |  |  | — |  |  | 1,400 |  |  | 220 |  |  | 17,720 |
Accumulated amortization | (63,686) |  |  | (6,974) |  |  | (29,934) |  |  | (522) |  |  | (101,116) |
Accumulated impairment | — |  |  | (2,342) |  |  | — |  |  | — |  |  | (2,342) |
Held for sale | (8,735) |  |  | (3,004) |  |  | — |  |  | — |  |  | (11,739) |
Net intangible assets as of December 31, 2023 | $ | 75,849 |  |  | $ | — |  |  | $ | 12,266 |  |  | $ | 1,098 |  |  | $ | 89,213 |
Weighted average remaining years of useful life | 8 |  | 0 |  | 8 |  | 3 |  | 6
| December 31, 2022
(In thousands) | Customer Relationships |  | Trademark |  | Developed Technology |  | Non-compete Agreements |  | Total
Gross carrying amount, beginning of period | $ | 112,570 |  |  | $ | 12,320 |  |  | $ | 37,600 |  |  | $ | — |  |  | $ | 162,490 |
Intangible assets acquired | 19,600 |  |  | — |  |  | 3,200 |  |  | 1,400 |  |  | 24,200 |
Accumulated amortization | (52,371) |  |  | (6,076) |  |  | (26,010) |  |  | (233) |  |  | (84,690) |
Net intangible assets as of December 31, 2022 | $ | 79,799 |  |  | $ | 6,244 |  |  | $ | 14,790 |  |  | $ | 1,167 |  |  | $ | 102,000 |
During the fourth quarter of 2023, the Company committed to the Company-wide rebranding and legal entity consolidation initiative that culminated in the change of the Company’s corporate name to “TruBridge, Inc.” on March 4, 2024. As a result of this initiative, it was expected that certain of the Company’s brand names and related trademarks would cease to be used, resulting in total trademark impairment recorded during the year ended December 31, 2023 of $2.3 million. Of the total trademark impairment charge, $1.0 million is derived from our RCM segment, $1.2 million is derived from our EHR segment, and $0.1 million is derived from our Patient Engagement segment. The following table represents the remaining amortization of definite-lived intangible assets as of December 31, 2023:
(In thousands) |
For the year ended December 31, |
2024 | $ | 12,506 |
2025 | 12,191 |
2026 | 11,516 |
2027 | 10,496 |
2028 | 10,203 |
Due thereafter | 32,301 |
Total | $ | 89,213 |
The following table sets forth the change in the carrying amount of goodwill by segment for the years ended December 31, 2023, 2022, and 2021:
(In thousands) | RCM | EHR | Patient engagement | Total
Balance as of December 31, 2021 | $ | 41,281 |  | $ | 126,665 |  | $ | 9,767 |  | $ | 177,713 |
Goodwill acquired | 20,540 |  | — |  | — |  | 20,540 |
Balance as of December 31, 2022 | 61,821 |  | 126,665 |  | 9,767 |  | 198,253 |
Goodwill acquired | 17,263 |  | — |  | — |  | 17,263 |
Goodwill impairment | — |  | (28,307) |  | (7,606) |  | (35,913) |
Held for sale | — |  | (7,694) |  |  | (7,694) |
Balance as of December 31, 2023 | $ | 79,084 |  | $ | 90,664 |  | $ | 2,161 |  | $ | 171,909 |
Our reporting units assessed for impairment of goodwill include: RCM (formerly the “TruBridge” reporting unit), Acute Care EHR, Post-acute care EHR (comprised solely of AHT, which was disposed in January 2024), and Patient Engagement (formerly a component of our former “TruBridge” reporting unit). We did not identify any events or circumstances that would require interim goodwill impairment testing prior to October 1, 2023. Based on our quantitative assessment as of October 1, 2023, we determined that there was no impairment of goodwill for our RCM reporting unit. However, quantitative evaluations of the fair values of each of our remaining three reporting units, using a combination of the income and market valuation approaches, resulted in impairment conclusions as follows: •Our Acute Care EHR reporting unit was assessed goodwill impairment charges of $6.4 million due to deteriorating market conditions, the related impact to the cost of capital, and lowered expectations regarding long-term margin potential. •Our Post-acute care EHR reporting unit was assessed goodwill impairment charges of $2.2 million due to deteriorating market conditions, the related impact to the cost of capital, and revised expectations regarding the long-term persistence of elevated customer attrition levels. •Our Patient Engagement reporting unit was assessed goodwill impairment charges of $7.6 million due to deteriorating market conditions, the related impact to the cost of capital, and revised expectations regarding long-term growth prospects as sales pipelines have been stubborn to develop to the robust levels previously anticipated. During the fourth quarter of 2023, the decision to accept an offer for the sale of AHT that was well below the related reporting unit’s carrying value was considered a triggering event requiring reassessment of the reporting unit’s goodwill, resulting in an additional goodwill impairment charge of $19.7 million. Lastly, management considered the continued decrease in the Company’s market capitalization since our most recent quantitative analysis dated October 1, 2023 to be a triggering event warranting a further quantitative goodwill impairment analysis as of December 31, 2023. As a result of this updated quantitative goodwill impairment analysis, management concluded that there was no further impairment to goodwill. We determined there was no impairment to goodwill as of December 31, 2022 or 2021.

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