Quarterly report pursuant to Section 13 or 15(d)

Related-Party Transactions

v3.21.2
Related-Party Transactions
9 Months Ended
Sep. 30, 2021
Related Party Transactions [Abstract]  
Related-Party Transactions Related-Party TransactionsDuring the three and nine months ended September 30, 2021 and 2020, NMM earned approximately $4.5 million and $4.2 million, respectively, and $13.2 million and $12.6 million, respectively, in management fees from LMA, which is accounted for under the equity method based on the 25% equity ownership interest held by APC in LMA’s IPA line of business (see Note 5).
During the three and nine months ended September 30, 2021 and 2020, APC paid approximately $0.7 million and $0.5 million, respectively, and $1.7 million and $1.5 million, respectively, to PMIOC for provider services, which is accounted for under the equity method based on the 40% equity ownership interest held by APC (see Note 5).
During the three and nine months ended September 30, 2021 and 2020, APC paid approximately $2.2 million and $1.2 million, respectively, and $5.4 million and $3.8 million, respectively, to DMG for provider services, which is accounted for under the equity method based on the 40% equity ownership interest held by APC (see Note 5).
During the three and nine months ended September 30, 2021 and 2020, APC paid approximately $0.3 million and $0.1 million, respectively, and $0.4 million and $0.2 million to Advanced Diagnostic Surgery Center for services as a provider. Advanced Diagnostic Surgery Center shares common ownership with certain board members of APC.
During the three and nine months ended September 30, 2021 and 2020, APC paid approximately $24,000 and $23,000, respectively, and $0.1 million and $0.1 million, respectively, to Fresenius Medical Care (“Fresenius”) and its subsidiaries for services as a provider. During the three and nine months ended September 30, 2021 and 2020, APAACO paid approximately $0.2 million and $0.2 million, respectively, and $0.5 million and $0.5 million, respectively, to Fresenius and its subsidiaries for services as a provider. One of the Company’s board members is an officer of Fresenius.

During the three and nine months ended September 30, 2021 and 2020, APC paid approximately $0.7 million and $0.1 million, respectively, and $1.1 million and $0.1 million, respectively, to Fulgent Genetics, Inc. for services as a provider. One of the Company’s board members is a board member of Fulgent Genetics, Inc.
During the three months ended September 30, 2021 and 2020, APC paid an aggregate of approximately $10.1 million and $7.1 million to shareholders, respectively, which included approximately $1.8 million and $1.7 million, respectively, to shareholders who are also officers of APC. During the nine months ended September 30, 2021 and 2020, APC paid an aggregate of approximately $25.3 million and $23.4 million to shareholders, respectively, and $5.6 million and $6.5 million, respectively, to shareholders who are also officers of APC.
During the three and nine months ended September 30, 2021 and 2020, the Company paid approximately $0 and $39,000, respectively, and $0 and $0.3 million, respectively, to Critical Quality Management Corporation (“CQMC”) for an office lease. CQMC shares common ownership with certain board members of APC.
For the three and nine months ended September 30, 2021 and 2020, SCHC paid approximately $0.1 million and $0.1 million, respectively, and $0.3 million and $0.3 million, respectively, to Numen, LLC (“Numen”) for an office lease. Numen is owned by a shareholder of APC.
During the three and nine ended September 30, 2021 and 2020, APC paid approximately $0.4 million and $0.4 million, respectively, and $1.1 million and $1.1 million, respectively, to One MSO for an office lease, which is accounted for under the equity method based on 50% equity ownership interest held by APC (see Note 5).
The Company has agreements with Health Source MSO Inc., a California corporation (“HSMSO”), Aurion Corporation (“Aurion”), and AHMC Healthcare Inc. (“AHMC”) for services provided to the Company. One of the Company’s board members is an officer of AHMC, HSMSO, and Aurion. Aurion is also partially owned by one of the Company’s board members. The following table sets forth fees incurred and revenue earned related to AHMC, HSMSO, and Aurion (in thousands):
Three Months Ended
September 30,
Nine Months Ended September 30,
2021 2020 2021 2020
AHMC – Risk pool, capitation, claims payment $ 10,712  $ 5,683  $ 36,505  $ 23,739 
HSMSO – Management fees, net (33) (109) (141) (430)
Aurion – Management fees (100) (100) (252) (228)
Receipts, net $ 10,579  $ 5,474  $ 36,112  $ 23,081 
The Company and AHMC have a risk-sharing agreement with certain AHMC hospitals to share the surplus and deficits of each of the hospital pools. During the three and nine months ended September 30, 2021 and 2020, the Company has recognized risk pool revenue under this agreement of $21.5 million and $10.5 million, and $47.1 million and $31.5 million, respectfully, of which $47.9 million and $45.3 million remained outstanding as of September 30, 2021 and December 31, 2020, respectively.
During the nine months ended September 30, 2021 and 2020, NMM paid approximately $44,000 and $27,000, respectively, to an ApolloMed board member for consulting services. During the three months ended September 30, 2021 and 2020, there were no payments to such ApolloMed board member for consulting services.
In addition, affiliates wholly owned by the Company’s officers, including the Company’s Co-CEOs, Dr. Kenneth Sim and Dr. Thomas Lam, are reported in the accompanying consolidated statements of operations on a consolidated basis, together with the Company’s subsidiaries, and therefore, the Company does not separately disclose transactions between such affiliates and the Company’s subsidiaries as related-party transactions.
For equity method investments, loans receivable, and line of credits from related parties, see Notes 5, 6, and 9, respectively.