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INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Our purchased definite-lived intangible assets as of December 31, 2024 and 2023 are summarized as follows:
Total | December 31, 2024
(In thousands) | Customer Relationships |  | Trademark |  | Developed Technology |  | Non-compete Agreements |  | Total
Gross carrying amount, beginning of period | $ | 116,470 |  |  | $ | 7,720 |  |  | $ | 31,900 |  |  | $ | 1,620 |  |  | $ | 157,710 |
Accumulated amortization | (50,260) |  |  | (5,378) |  |  | (22,177) |  |  | (846) |  |  | (78,661) |
Accumulated impairment | — |  |  | (2,342) |  |  | — |  |  | — |  |  | (2,342) |
Net intangible assets as of December 31, 2024 | $ | 66,210 |  |  | $ | — |  |  | $ | 9,723 |  |  | $ | 774 |  |  | $ | 76,707 |
Weighted average remaining years of useful life | 7.5 |  | 0.0 |  | 8.2 |  | 2.5 |  | 7.9
| 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 |
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 and $1.3 million is derived from our EHR segment. The following table represents the remaining amortization of definite-lived intangible assets as of December 31, 2024:
(In thousands) |
For the year ended December 31, |
2025 | $ | 12,190 |
2026 | 11,517 |
2027 | 10,496 |
2028 | 10,203 |
2029 | 10,095 |
Due thereafter | 22,206 |
Total | $ | 76,707 |
The following table sets forth the change in the carrying amount of goodwill by segment for the years ended December 31, 2024, 2023, and 2022:
(In thousands) | Financial Health | Patient Care | Total
Balance as of December 31, 2022 | $ | 61,821 |  | $ | 136,432 |  | $ | 198,253 |
Goodwill acquired | 17,263 |  | — |  | 17,263 |
Goodwill impairment | — |  | (35,913) |  | (35,913) |
Held for sale | — |  | (7,694) |  | (7,694) |
Balance as of December 31, 2023 | $ | 79,084 |  | $ | 92,825 |  | $ | 171,909 |
Goodwill acquired | 664 |  | — |  | 664 |
Balance as of December 31, 2024 | $ | 79,748 |  | $ | 92,825 |  | $ | 172,573 |
Our reporting units assessed for impairment of goodwill on October 1, 2023 included: 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 the “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 the TruBridge 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. During the first quarter of 2024, our share price experienced a sustained decline resulting in a decrease in our market capitalization. This decline in share price was identified as a triggering event requiring a quantitative assessment for goodwill impairment in all of our reporting segments. We assessed goodwill in each of our reporting segments for impairment as of March 31, 2024, by using a combination of the income and market valuation approaches. Under the income approach, we used a discounted cash flow model, which utilizes present values of cash flows to estimate fair value. Our forecasted cash flows reflected conditions as of March 31, 2024, and reflected management’s anticipated business outlook for each reporting unit, which requires the use of estimates. The market approach applied selected trading multiples of companies comparable to the respective reporting units to the Company’s financial measures. Trading multiples selected for each reporting unit varied from the low end of the range of guideline public companies up to the median depending on the specific characteristics of each reporting unit. The income approach was given significantly more weight in determining the fair values. The approaches, which qualify as Level 3 within the fair value hierarchy, incorporate a number of market participant assumptions including, but not limited to, future cash flows, growth rates, and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s forecasts and long-term plans. Discount rate assumptions are based on an assessment of the inherent risk of the respective reporting units. These quantitative evaluations of the fair values of each of our reporting units resulted in no impairment as of March 31, 2024. Given that the fair values of the reporting units are based on management’s best estimates, if actual results should differ from those estimates, impairment charges may be required in future periods. On May 14, 2024, the Company announced a reorganization of its operating and reporting segment structure. As a result, the Company changed from three operating and reportable segments of (i) RCM, (ii) EHR and (iii) Patient Engagement to two operating and reportable segments of (i) Financial Health and (ii) Patient Care. This restructuring resulted in another triggering event requiring a quantitative assessment for goodwill impairment in our reporting units immediately pre- and post-reorganization as of that date. We utilized the same goodwill valuation approach as described above. These quantitative evaluations of the fair values of the goodwill in each of our reporting units resulted in no impairment. We performed our annual assessment for impairment of goodwill and determined that there was no impairment as of December 31, 2024.

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