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Subsequent Event
3 Months Ended
Mar. 31, 2022
Subsequent Events [Abstract]  
Subsequent Event

NOTE 11. SUBSEQUENT EVENTS

 

The Companys wholly owned subsidiaries, Talkspace LLC and Talkspace Network LLC are in the process of entering into various management service agreements (“MSAs”) with Talkspace Provider Network, PA (“TPN”), a Texas professional association entity, as part of the transition of the Company’s structure with respect to its relationships with healthcare providers in response to its expansion of service offerings to include telepsychiatry services provided through licensed physicians. TPN is then contracting with the Company’s affiliated professional entities and physicians, therapists, and other licensed professionals for clinical and professional services provided to the Company’s members. The Company believes the transition to a structure where it operates under various MSAs with TPN, or an entity authorized by state law to contract with our affiliated professionals to delivery teletherapy services to our members, will better ensure the Company is able to comply with additional regulatory requirements, including the corporate practice of medicine and fee-splitting laws, that are necessarily implicated by engaging in telehealth care that can only be delivered by physicians.

 

In April 2022, the Company transitioned its provider network to TPN. The Company is continuing to transition its current agreements with its clients, members and other business partners to TPN or an affiliated professional entity, where applicable.

 

TPN is wholly-owned by an independent Texas-licensed physician. The Company has the power to direct the activities of TPN and the other authorized entities in each state that most significantly impact TPN’s and such other authorized entities’ economic performance as well as have the obligation to absorb significant losses and receive the benefits of TPN and the authorized entities. The Company does not believe this transition will have a material financial impact on its operations.