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Segment Reporting
 6 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 9 — Segment Reporting

The Company operates within one operating segment. The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer. The CODM reviews segment financial information presented on a consolidated basis, including revenue, gross profit and operating expenses, and considers budget-to-actual variances for the purposes of making operating decisions, assessing financial performance and allocating resources.

 

The Company derives its revenues from providing patient management and network solutions services. Network solutions services include fee schedule auditing, hospital bill auditing, coordination of independent medical examinations, diagnostic imaging review services and preferred provider referral services. The percentages of revenues attributable to patient management and network solutions services for the three and six months ended September 30, 2025 and 2024 are listed below.

 

 

 

Three Months Ended

 

 

 

September 30, 2025

 

 

September 30, 2024

 

Patient management services

 

 

62.9

%

 

 

65.6

%

Network solutions services

 

 

37.1

%

 

 

34.4

%

 

 

 

100.0

%

 

 

100.0

%

 

 

 

Six Months Ended

 

 

 

September 30, 2025

 

 

September 30, 2024

 

Patient management services

 

 

62.7

%

 

 

65.7

%

Network solutions services

 

 

37.3

%

 

 

34.3

%

 

 

 

100.0

%

 

 

100.0

%

 

 

The Company’s management is structured geographically with regional vice presidents who are responsible for all services provided by and operating results of the Company in their particular region. These regional vice presidents have area and district managers who are also responsible for all services provided by the Company in their given area and district. All revenues are derived from customers within the United States, and all long-lived assets are located in the United States.

Under ASC 280-10, two or more operating segments may be aggregated into a single operating segment for financial reporting purposes if aggregation is consistent with the objective and basic principles of the accounting guidance, if the segments have similar economic characteristics, and if the segments are similar in each of the following areas: (i) the nature of products and services, (ii) the nature of the production processes, (iii) the type or class of customer for their products and services, and (iv) the methods used to distribute their products or provide their services. The Company believes its patient management and network solutions services meet these criteria as they provide similar managed care services to similar customers using similar methods of production and distribution. All of the Company’s regions perform both patient management and network solutions services.

 

The following table presents the financial information for the Company’s one reportable and operating segment for the three and six months ended September 30, 2025 and 2024:

 

 

 

Three Months Ended

 

 

 

September 30, 2025

 

 

September 30, 2024

 

Revenues

 

$

239,643,000

 

 

$

224,380,000

 

Less:

 

 

 

 

 

 

Labor expenses

 

 

113,934,000

 

 

 

111,267,000

 

Direct product expenses

 

 

54,900,000

 

 

 

51,094,000

 

Depreciation and amortization expenses

 

 

7,844,000

 

 

 

7,711,000

 

Income tax provision

 

 

7,994,000

 

 

 

5,272,000

 

Occupancy expenses

 

 

5,049,000

 

 

 

5,249,000

 

Other items (1)

 

 

22,016,000

 

 

 

20,389,000

 

Net income

 

$

27,906,000

 

 

$

23,398,000

 

 

(1)

Includes other operating costs (such as marketing and maintenance expenses), net gain (loss) on asset sales and disposals and other costs.

 

 

 

 

Six Months Ended

 

 

 

September 30, 2025

 

 

September 30, 2024

 

Revenues

 

$

474,354,000

 

 

$

436,102,000

 

Less:

 

 

 

 

 

 

Labor expenses

 

 

226,975,000

 

 

 

219,202,000

 

Direct product expenses

 

 

107,765,000

 

 

 

95,067,000

 

Depreciation and amortization expenses

 

 

15,431,000

 

 

 

14,438,000

 

Income tax provision

 

 

16,042,000

 

 

 

11,729,000

 

Occupancy expenses

 

 

10,203,000

 

 

 

10,644,000

 

Other items (1)

 

 

42,797,000

 

 

 

40,047,000

 

Net income

 

$

55,141,000

 

 

$

44,975,000

 

 

(1)

Includes other operating costs (such as marketing and maintenance expenses), net gain (loss) on asset sales and disposals and other costs.