Segment Reporting

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Prior to the Sheridan acquisition, the Company operated its centers as individual components of one operating and reportable segment. Upon completion of the Sheridan acquisition, the Company operates in two major lines of business - the operation of ambulatory surgery centers and providing multi-specialty outsourced physician services, which have been identified as its operating and reportable segments. Through the ambulatory services segment, the Company acquires, develops and operates ambulatory surgery centers in partnership with physicians. Through the physician services segment, the Company provides outsourced physician services in multiple specialties to hospitals, ambulatory surgery centers and other healthcare facilities, primarily in the areas of anesthesiology, children’s services, emergency medicine and radiology.

The Company’s financial information by operating segment is prepared on an internal management reporting basis that the chief operating decision maker uses to allocate resources and assess the performance of the operating segments. The Company’s operating segments have been defined based on the separate financial information that is regularly produced and reviewed by the Company’s chief operating decision maker which is its Chief Executive Officer.

The following table presents financial information for each reportable segment (in thousands):

	Year ended December 31,
	2014			2013			2012
Net Revenue:
Ambulatory Services	$	1,109,935		$	1,057,196		$	899,245
Physician Services	512,014			—			—
Total	$	1,621,949		$	1,057,196		$	899,245
Adjusted Segment EBITDA:
Ambulatory Services	$	197,377		$	187,972		$	154,527
Physician Services	107,105			—			—
Total	$	304,482		$	187,972		$	154,527
Adjusted Segment EBITDA:	$	304,482		$	187,972		$	154,527
Earnings from continuing operations attributable to noncontrolling interests	190,809			183,484			155,661
Interest expense, net	(83,285		)	(29,525		)	(16,950		)
Depreciation and amortization	(60,344		)	(32,400		)	(29,255		)
Share-based compensation	(10,104		)	(8,321		)	(6,692		)
Transaction costs	(33,890		)	(300		)	(700		)
Debt extinguishment costs	(16,887		)	—			—
Gain on deconsolidation	3,411			2,237			—
Earnings from continuing operations before income taxes	$	294,192		$	303,147		$	256,591
Acquisition and Capital Expenditures:
Ambulatory Services (1)	$	81,156		$	102,450		$	306,252
Physician Services	28,909			—			—
Total	$	110,065		$	102,450		$	306,252

	2014		2013
Assets:
Ambulatory Services	$	2,528,525	$	2,177,944
Physician Services	2,994,999		—
Total	$	5,523,524	$	2,177,944

(1) Excludes the purchase price to acquire Sheridan.