Segment Reporting

12 Months Ended

Dec. 31, 2015

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, radiology, children’s services and emergency medicine.

The Company’s financial information by operating segment is prepared on an internal management reporting basis and includes allocations of corporate overhead to each segment. This financial information is used by the chief operating decision maker 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,
	2015			2014			2013
Net Revenue:
Ambulatory Services	$	1,230,050		$	1,109,935		$	1,057,196
Physician Services (1)	1,336,834			512,014			—
Total	$	2,566,884		$	1,621,949		$	1,057,196
Adjusted Segment EBITDA:
Ambulatory Services	$	226,229		$	197,377		$	187,972
Physician Services (1)	266,031			107,105			—
Total	$	492,260		$	304,482		$	187,972
Adjusted Segment EBITDA:	$	492,260		$	304,482		$	187,972
Earnings from continuing operations attributable to noncontrolling interests	218,181			190,809			183,484
Interest expense, net	(121,586		)	(83,285		)	(29,525		)
Depreciation and amortization	(97,493		)	(60,344		)	(32,400		)
Share-based compensation	(15,009		)	(10,104		)	(8,321		)
Net change in fair value of contingent consideration	(8,804		)	—			—
Transaction costs	(8,324		)	(33,890		)	(300		)
Debt extinguishment costs	—			(16,887		)	—
Net gain on deconsolidations	36,694			3,411			2,237
Earnings from continuing operations before income taxes	$	495,919		$	294,192		$	303,147
Acquisition and Capital Expenditures:
Ambulatory Services (2)	$	168,593		$	81,156		$	102,450
Physician Services	854,401			28,909			—
Total	$	1,022,994		$	110,065		$	102,450

	2015		2014
Assets:
Ambulatory Services	$	2,609,479	$	2,526,625
Physician Services	3,937,003		2,974,437
Total	$	6,546,482	$	5,501,062

(1) On July 16, 2014, the Company completed the acquisition of Sheridan. Accordingly, historical amounts for periods prior to that date are not included.

(2) Excludes the purchase price to acquire Sheridan in 2014.