Property and Equipment

6 Months Ended

Jun. 30, 2016

Property Plant And Equipment [Abstract]

NOTE 4 – PROPERTY AND EQUIPMENT

A summary of property and equipment follows (in thousands):

	June 30,			December 31,
	2016			2015

Property and equipment, at cost:
Land and improvements	$	95,631		$	100,053
Building and improvements		814,376			853,853
Equipment and fixtures		599,634			616,667
Construction in progress		40,110			33,080
Total property and equipment, at cost		1,549,751			1,603,653
Less: Accumulated depreciation and amortization		(732,719	)		(723,404	)
Total property and equipment, net	$	817,032		$	880,249

Depreciation expense was $22.5 million for each of the three months ended June 30, 2016 and 2015 and $44.9 million and $45.5 million for the six months ended June 30, 2016 and 2015, respectively. See Note 5 – Goodwill and Intangible Assets for information on amortization expense recorded for property and equipment held under capital lease obligations. The total amount of assets held under capital lease obligations was $28.5 million and $23.4 million, at cost, at June 30, 2016 and December 31, 2015, respectively, and $26.9 million and $22.4 million, net of accumulated amortization, at June 30, 2016 and December 31, 2015, respectively.

On June 30, 2016, the Company reduced the carrying value of property and equipment at certain hospitals that the Company is currently marketing for sale and at certain underperforming hospitals that are part of its ongoing operations. See Note 3 – Hospitals Held for Sale and Impairment of Long-Lived Assets for additional information on the impairment recorded in the consolidated and combined statements of income for the three and six months ended June 30, 2016.

Purchases of property and equipment that were accrued in accounts payable as of June 30, 2016 and December 31, 2015 were $8.3 million and $7.0 million, respectively.