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Segment Reporting
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Commencing with the three months ended March 31, 2021, we define our reportable segments based on the way the CODM, the chief executive officer, manages the operations for purposes of allocating resources and assessing performance. We classify our operations into two reportable segments as follows:

•Evolent Health Services, which houses our Administrative Simplification solution and certain supporting population health infrastructure; and
•Clinical Solutions, which includes our specialty care management and physician-oriented total cost of care solutions, along with the New Century Health and Evolent Care Partners brands.

In the ordinary course of business, our reportable segments enter into transactions with one another. While intersegment transactions are treated like third-party transactions to determine segment performance, the revenues and expenses recognized by the segment that is the counterparty to the transaction are eliminated in consolidation and do not affect consolidated results.

The CODM uses revenue in accordance with U.S. GAAP and Adjusted EBITDA as the relevant segment performance measures to evaluate the performance of the segments and allocate resources.

Adjusted EBITDA is a segment performance financial measure that offers a useful view of the overall operation of our businesses and may be different than similarly-titled segment performance financial measures used by other companies.

Adjusted EBITDA is defined as net loss attributable to common shareholders of Evolent Health, Inc. before interest income, interest expense, (provision) benefit for income taxes, depreciation and amortization expenses, adjusted to exclude equity method investment impairment, loss on extinguishment of debt, gain (loss) from equity method investees, gain (loss) on disposal of assets and consolidation, goodwill impairment, changes in fair value of contingent consideration and indemnification asset, other income (expense), net, net loss attributable to non-controlling interests, ASC 606 transition adjustments, purchase accounting adjustments, repositioning costs, stock-based compensation expense, severance costs, amortization of contract cost assets, shareholder advisory services, acquisition-related costs and gain (loss) from discontinued operations.

Management considers revenue and Adjusted EBITDA to be the appropriate metrics to evaluate and compare the ongoing operating performance of our segments on a consistent basis across reporting periods as they eliminate the effect of items which are not indicative of each segment's core operating performance.
The following tables present our segment information for the three and nine months ended September 30, 2021 and 2020 (in thousands). Prior-year segment information (including segments total Adjusted EBITDA) has been restated to conform to the reporting structure change described in Note 1.

Evolent Health ServicesClinical SolutionsIntersegment
Eliminations		Subtotal
Corporate (1)
Consolidated
Revenue
For the Three Months Ended September 30, 2021
Transformation services$2,075 $— $— $2,075 $— $2,075 
Platform and operations services61,240 159,614 (458)220,396 — 220,396 
Total revenue$63,315 $159,614 $(458)$222,471 $— $222,471 
For the Three Months Ended September 30, 2020
Transformation services$4,807 $— $— $4,807 $— $4,807 
Platform and operations services95,361 140,071 (667)234,765 — 234,765 
Total revenue$100,168 $140,071 $(667)$239,572 $— $239,572 
Evolent Health ServicesClinical SolutionsSubtotal
Corporate (1)
Segments Total
For the Three Months Ended September 30, 2021
Adjusted EBITDA$(3,353)$23,883 $20,530 $(6,765)$13,765 
For the Three Months Ended September 30, 2020
Adjusted EBITDA$24,645 $(974)$23,671 $(9,888)$13,783 

Evolent Health ServicesClinical SolutionsIntersegment
Eliminations		Subtotal
Corporate (1)
Consolidated
Revenue
For the Nine Months Ended September 30, 2021
Transformation services$4,984 $— $— $4,984 $— $4,984 
Platform and operations services218,940 437,031 (1,356)654,615 — 654,615 
Total revenue$223,924 $437,031 $(1,356)$659,599 $— $659,599 
For the Nine Months Ended September 30, 2020
Transformation services$10,800 $— $— $10,800 $— $10,800 
Platform and operations services273,583 395,723 (2,003)667,303 — 667,303 
Total revenue$284,383 $395,723 $(2,003)$678,103 $— $678,103 
Evolent Health ServicesClinical SolutionsSubtotal
Corporate (1)
Segments Total
For the Nine Months Ended September 30, 2021
Adjusted EBITDA$9,120 $53,456 $62,576 $(20,558)$42,018 
For the Nine Months Ended September 30, 2020
Adjusted EBITDA$36,361 $18,269 $54,630 $(26,452)$28,178 
————————
(1)Corporate includes various finance, human resources, legal, executive, and other corporate infrastructure expenses.
The following table presents our reconciliation of consolidated segments total Adjusted EBITDA to net loss attributable to common shareholders of Evolent Health, Inc. for the three and nine months ended September 30, 2021 and 2020 (in thousands):
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2021202020212020
Net loss attributable to common shareholders of Evolent Health, Inc.$(13,040)$(37,348)$(31,954)$(319,621)
Less:
Interest income120 1,159 311 2,634 
Interest expense(6,367)(7,416)(18,978)(19,987)
(Provision) benefit for income taxes(234)(503)(936)3,131 
Depreciation and amortization expenses(14,859)(14,534)(44,962)(46,130)
Equity method investment impairment— — — (47,133)
Gain on transfer of membership— — 22,969 — 
Loss on repayment of debt, net— — (19,158)— 
Loss on extinguishment of debt— (4,789)— (4,789)
Goodwill impairment— — — (215,100)
Gain from equity method investees63 (13,717)12,725 11,014 
Loss on disposal of assets— — — (6,447)
Change in fair value of contingent consideration and indemnification asset225 (2,570)819 492 
Net loss attributable to non-controlling interests— 822 — 822 
Other income (expense), net(41)(110)(73)174 
Repositioning costs— — (6,043)— 
Stock-based compensation expense(4,395)(3,164)(11,754)(10,375)
Severance costs— (1,757)(52)(7,890)
Amortization of contract cost assets(110)(2,610)(433)(3,817)
Strategy and shareholder advisory expenses— — (6,513)— 
Acquisition costs(1,207)(807)(3,277)(1,490)
Gain (loss) from discontinued operations (1)
— (1,135)1,383 (2,908)
Adjusted EBITDA$13,765 $13,783 $42,018 $28,178 
————————
(1)Includes $1.9 million gain on disposal of discontinued operations for the nine months ended September 30, 2021.

Asset information by segment is not a key measure of performance used by the CODM. Accordingly, we have not disclosed asset information by segment.