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Repositioning and Other Changes
 3 Months Ended
Mar. 31, 2024
Restructuring and Related Activities [Abstract]  
Repositioning and Other Changes Repositioning and Other Changes
We continually assess opportunities to improve operational effectiveness and efficiency to better align our expenses with revenues, while continuing to make investments in our solutions, systems and people that we believe are important to our long-term goals.

During the second quarter of 2023, the Company implemented a broad set of repositioning initiatives designed to further align the Company’s assets and talent towards the value-based specialty care opportunity, with the intent of streamlining its operations and supporting the goal of realizing long-term sustainable earnings growth (the “2023 Repositioning Plan’). These initiatives include making organizational changes across the business that resulted in severance, terminated benefits and related payroll taxes and dedicated employee costs associated with recent acquisitions as well as third-party professional fees. Dedicated employee costs primarily include project management and technology staff costs needed to migrate acquired businesses to Evolent’s integrated technology platform and costs related to the consolidation of brands, internal operations, strategies, processes and platforms. Dedicated employee costs are limited to employees that will have no role in ongoing operations and have no planned role at Evolent once the repositioning activities are completed. Professional services costs primarily relate to services provided by a third-party vendor to review our operating model and organizational design in order to improve our profitability, create value through our solutions and invest in strategic opportunities in future periods. Office space consolidation includes early termination penalties and associated expenses.

As of March 31, 2024, the Company estimates total repositioning charges of $48.8 million to be incurred during the life of “the 2023 Repositioning Plan” which will be recorded in selling, general and administrative expenses on the consolidated statements of operations and comprehensive income (loss). The repositioning program is anticipated to be substantially complete by the end of the second quarter of 2024.

The following table provides a summary of our total costs associated with our repositioning plans for the three months ended March 31, 2024, by major type of cost (in thousands):

For the Three Months Ended March 31, 2024Cumulative Amount Incurred Through
March 31, 2024		Total Amount Expected to be Incurred in the 2023 Repositioning Plan
Severance and termination benefits$1,804 $10,368 $12,368 
Dedicated employee costs1,185 8,085 8,229 
Professional services3,488 16,399 17,865 
Office space consolidation3,452 10,314 $10,314 
Total$9,929 $45,166 $48,776