Segment Reporting

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company operates in two major lines of business - ambulatory surgery centers and 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):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Net Revenue:
Ambulatory Services	$	314,609		$	308,983		$	941,490		$	903,884
Physician Services	507,607			341,244			1,363,903			958,738
Total	$	822,216		$	650,227		$	2,305,393		$	1,862,622
Adjusted EBITDA:
Ambulatory Services	$	61,111		$	55,353		$	176,483		$	162,965
Physician Services	91,938			77,824			245,909			191,939
Total	$	153,049		$	133,177		$	422,392		$	354,904
Adjusted EBITDA:	$	153,049		$	133,177		$	422,392		$	354,904
Net earnings attributable to noncontrolling interests	55,626			55,618			166,517			160,407
Interest expense, net	(32,915		)	(30,242		)	(95,638		)	(90,671		)
Depreciation and amortization	(31,585		)	(24,106		)	(90,711		)	(70,536		)
Share-based compensation	(6,175		)	(3,727		)	(21,243		)	(11,319		)
Net change in fair value of contingent consideration	—			(1,928		)	2,598			(8,338		)
Transaction costs	(16,906		)	(2,107		)	(23,431		)	(5,560		)
Net gain on disposals and deconsolidations	4,144			9,112			6,739			5,854
Earnings before income taxes	$	125,238		$	135,797		$	367,223		$	334,741
Acquisition and Capital Expenditures:
Ambulatory Services	$	24,521		$	25,872		$	67,923		$	144,482
Physician Services	72,491			25,927			347,820			136,014
Total	$	97,012		$	51,799		$	415,743		$	280,496