View Filing Data

Less: Amounts attributable to participating securities

(17,521)

^[2]

(7,772)

$ 0

Net loss per share attributable to common stockholders

$ (25,293)

(2,754)

$ (0.53)

Weighted average common shares outstanding

^[3]

$ (0.53)

Basic (shares)

48,006,870

Diluted (shares)

^[3]

48,006,870

Contingent acquisition expense

$ 503

Predecessor

Revenues

286,183

Operating expenses:

Salaries and benefits

89,887

Supplies

71,160

Professional and medical fees

21,125

Lease expense

13,626

Other operating expenses

16,150

Cost of revenues

211,948

General and administrative expenses

^[1]

15,541

Depreciation and amortization

11,108

Provision for doubtful accounts

5,675

Income from equity investments

(1,200)

Loss on disposal or impairment of long-lived assets, net

1,196

Merger transaction and integration costs

337

Other income

(143)

Total operating expenses

244,462

Operating income

41,721

Interest expense, net

(25,182)

Income before income taxes

16,539

Income tax expense

2,117

Net income

14,422

Less: Net income attributable to non-controlling interests

(17,176)

Less: Amounts attributable to participating securities

(2,754)

Net loss per share attributable to common stockholders

$ (2,754)

$ (0.06)

Weighted average common shares outstanding

^[3]

$ (0.06)

Basic (shares)

48,019,652

Diluted (shares)

^[3]

48,019,652

Contingent acquisition expense

$ 2,033

[1]	Includes contingent acquisition compensation expense of $0.5 million and $2.0 million for the three months ended March 31, 2018 (Successor) and 2017 (Predecessor), respectively.
[2]	Includes accrued dividends and undistributed earnings allocated to participating securities for the Series A Preferred Stock. There were no participating securities during the Predecessor period. See Note 6. "Earnings Per Share" for further discussion.
[3]	The impact of potentially dilutive securities for all periods presented was not considered because the effect would be anti-dilutive in those periods.

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net income	$ 5,125
Other comprehensive income	0
Comprehensive income	5,125
Less: Comprehensive income attributable to non-controlling interests	(22,646)
Comprehensive loss attributable to Surgery Partners, Inc.	$ (17,521)
Predecessor
Net income		$ 14,422
Other comprehensive income		0
Comprehensive income		14,422
Less: Comprehensive income attributable to non-controlling interests		(17,176)
Comprehensive loss attributable to Surgery Partners, Inc.		$ (2,754)

Condensed Consolidated Statements of Stockholders' Equity - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Deficit	Non-Controlling Interests— Non-Redeemable
Beginning Balance, stockholders' equity (shares) at Dec. 31, 2017	48,687,136	48,687,136
Beginning Balance, stockholders' equity at Dec. 31, 2017	$ 1,336,610	$ 487	$ 695,560	$ (41,316)	$ 681,879
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(1,613)			(17,521)	15,908
Equity-based compensation	1,997		1,997
Preferred dividends	(7,772)		(7,772)
Issuance of restricted and unrestricted shares (shares)		439,773
Issuance of restricted and unrestricted shares		$ 4	(4)
Cancellation of restricted shares (in shares)		(72,087)
Cancellation of restricted shares	(749)		(749)
Repurchase of shares (shares)		(156,818)
Repurchase of shares	(1,982)	$ (2)	(1,980)
Acquisition and disposal of shares of non-controlling interests, net	785		1,960		(1,175)
Distributions to non-controlling interests—non-redeemable holders	$ (22,450)				(22,450)
Ending Balance, stockholders' equity (shares) at Mar. 31, 2018	48,898,004	48,898,004
Ending Balance, stockholders' equity at Mar. 31, 2018	$ 1,304,826	$ 489	$ 689,012	$ (58,837)	$ 674,162

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 5,125
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,749
Other non-cash amortization	(127)
Equity-based compensation	1,997
Loss on disposal or impairment of long-lived assets, net	47
Deferred income taxes	1,352
Provision for doubtful accounts	6,037
Income from equity investments, net of distributions received	322
Changes in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable	8,083
Other operating assets and liabilities	(8,529)
Net cash provided by operating activities	30,056
Cash flows from investing activities:
Purchases of property and equipment, net	(9,983)
Payments for acquisitions, net of cash acquired	(25,589)
Other investing activities	(842)
Net cash used in investing activities	(36,414)
Cash flows from financing activities:
Principal payments on long-term debt	(16,252)
Borrowings of long-term debt	374
Payments of preferred dividends	(3,924)
Distributions to non-controlling interest holders	(30,919)
(Payments) receipts related to ownership transactions with non-controlling interest holders	(782)
Repurchase of shares	(1,982)
Financing lease obligations	(1,506)
Other financing activities	(749)
Net cash used in financing activities	(55,740)
Net decrease in cash, cash equivalents and restricted cash	(62,098)
Cash, cash equivalents and restricted cash at beginning of period	175,229
Cash, cash equivalents and restricted cash at end of period	113,131
Supplemental cash flow information:
Non-cash purchases of property and equipment under capital leases and financing activities	$ 4,028
Predecessor
Cash flows from operating activities:
Net income		$ 14,422
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		11,108
Other non-cash amortization		1,765
Equity-based compensation		634
Loss on disposal or impairment of long-lived assets, net		1,196
Deferred income taxes		1,806
Provision for doubtful accounts		5,675
Income from equity investments, net of distributions received		(139)
Changes in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable		(3,433)
Other operating assets and liabilities		1,836
Net cash provided by operating activities		34,870
Cash flows from investing activities:
Purchases of property and equipment, net		(6,350)
Payments for acquisitions, net of cash acquired		(275)
Other investing activities		0
Net cash used in investing activities		(6,625)
Cash flows from financing activities:
Principal payments on long-term debt		(45,527)
Borrowings of long-term debt		23,592
Payments of preferred dividends		0
Distributions to non-controlling interest holders		(19,262)
(Payments) receipts related to ownership transactions with non-controlling interest holders		154
Repurchase of shares		0
Financing lease obligations		(286)
Other financing activities		(649)
Net cash used in financing activities		(41,978)
Net decrease in cash, cash equivalents and restricted cash		(13,733)
Cash, cash equivalents and restricted cash at beginning of period		70,014
Cash, cash equivalents and restricted cash at end of period		56,281
Supplemental cash flow information:
Non-cash purchases of property and equipment under capital leases and financing activities		$ 2,320

Organization	3 Months Ended
Organization	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Surgery Partners, Inc., a Delaware corporation (together with its subsidiaries, the “Company”), was formed on April 2, 2015, as a holding company for the purpose of facilitating an initial public offering (the “IPO”) of shares of common stock. Prior to September 30, 2015, the Company conducted business through Surgery Center Holdings, Inc. and its subsidiaries. Surgery Center Holdings, LLC was and is the sole indirect owner of the equity interests of Surgery Center Holdings, Inc. and has no other material assets. On September 30, 2015, Surgery Partners, Inc. became the direct parent and sole member of Surgery Center Holdings, LLC (the "Reorganization"). In the Reorganization, all of the equity interests held by the pre-IPO owners of Surgery Center Holdings, LLC were contributed to Surgery Partners, Inc. in exchange for 33,871,990 shares of common stock of Surgery Partners, Inc. and certain rights to additional payments under a tax receivable agreement. After giving effect to the Reorganization, Surgery Partners, Inc. is a holding company, and its sole material asset is an equity interest in Surgery Center Holdings, LLC. On October 1, 2015, the Company completed its IPO of 14,285,000 shares of common stock at an offering price of $19.00 per share. On August 31, 2017, (i) the Company completed the sale and issuance of 310,000 shares of the Company's preferred stock, designated as 10.00% Series A Convertible Perpetual Participating Preferred Stock (the “Series A Preferred Stock”) to BCPE Seminole Holdings LP (“Bain”), a fund advised by an affiliate of Bain Capital Private Equity, at a purchase price of $1,000 per share in cash (the “Preferred Private Placement”), and (ii) Bain completed its purchase of 26,455,651 shares (the “Purchased Shares”) of the Company's common stock from H.I.G. Surgery Centers, LLC (“H.I.G.”) at a purchase price of $19.00 per share in cash (the “Private Sale”). As of August 31, 2017, the Purchased Shares represented approximately 54.2% of the Company’s outstanding common stock. As a result of the Preferred Private Placement and the Private Sale, Bain became the controlling stockholder of the Company, holding Series A Preferred Stock and common stock that collectively represent approximately 65.7% of the voting power of all classes of capital stock of the Company as of August 31, 2017, and H.I.G. and its affiliated investment funds no longer own any capital stock of the Company. The Preferred Private Placement and the Private Sale are referred to collectively in this Quarterly report on Form 10-Q as the “Transactions.” In connection with the change of control effected by the Preferred Private Placement and the Private Sale, the Company elected to apply “pushdown” accounting by applying the guidance in Accounting Standards Codification Topic ("ASC") 805, Business Combinations, including the recognition of the Company’s assets and liabilities at fair value as of August 31, 2017, and similarly recognizing goodwill calculated based on the terms of the transaction and the fair value of the new basis of net assets of the Company. Accordingly, the condensed consolidated financial statements of the Company for periods before and after August 31, 2017 reflect different bases of accounting, and the financial positions and results of operations of those periods are not comparable. Throughout the Company's condensed consolidated financial statements and the accompanying notes herein, periods prior to the change of control are identified as "Predecessor" and periods after the change of control are identified as "Successor." As of March 31, 2018 (Successor), the Company owned and operated a national network of surgical facilities and ancillary services in 32 states. The surgical facilities, which include ambulatory surgery centers ("ASCs") and surgical hospitals, primarily provide non-emergency surgical procedures across many specialties, including, among others, gastroenterology ("GI"), general surgery, ophthalmology, orthopedics and pain management. The Company's surgical hospitals provide services such as diagnostic imaging, laboratory, obstetrics, oncology, pharmacy, physical therapy and wound care. Ancillary services are comprised of a diagnostic laboratory, multi-specialty physician practices, urgent care facilities, anesthesia services and optical services. As of March 31, 2018 (Successor), the Company owned or operated a portfolio of 125 surgical facilities, comprised of 107 ASCs and 18 surgical hospitals. The Company owns these facilities in partnership with physicians and, in some cases, healthcare systems in the markets and communities it serves. The Company owned a majority interest in 85 of the surgical facilities and consolidated 108 of these facilities for financial reporting purposes.

Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Significant Accounting Policies

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, as well as interests in partnerships and limited liability companies controlled by the Company through its ownership of a majority voting interest or other rights granted to the Company by contract to manage and control the affiliate's business. All significant intercompany balances and transactions are eliminated in consolidation.

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation of the Company's financial position and results of operations have been included. The Company’s fiscal year ends on December 31 and interim results are not necessarily indicative of results for a full year or any other interim period. The condensed consolidated balance sheet at December 31, 2017 (Successor) has been derived from the audited financial statements as of that date. The information contained in these condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the fiscal year ended December 31, 2017 (Successor). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Non-Controlling Interests

The physician limited partners and physician minority members of the entities that the Company controls are responsible for the supervision and delivery of medical services. The governance rights of limited partners and minority members are restricted to those that protect their financial interests. Under certain partnership and operating agreements governing these partnerships and limited liability companies, the Company could be removed as the sole general partner or managing member for certain events such as material breach of the partnership or operating agreement, gross negligence or bankruptcy. These protective rights do not preclude consolidation of the respective partnerships and limited liability companies.

Ownership interests in consolidated subsidiaries held by parties other than the Company are identified and generally presented in the condensed consolidated financial statements within the equity section but separate from the Company's equity. However, in instances in which certain redemption features that are not solely within the control of the Company are present, classification of non-controlling interests outside of permanent equity is required. Consolidated net income attributable to the Company and to the non-controlling interests are identified and presented on the condensed consolidated statements of operations; changes in ownership interests in which the Company retains a controlling interest are accounted for as equity transactions assuming the Company continues to consolidate related entities. Certain transactions with non-controlling interests are classified within financing activities in the condensed consolidated statements of cash flows.

The condensed consolidated financial statements of the Company include all assets, liabilities, revenues and expenses of surgical facilities in which the Company has sufficient ownership and rights to allow the Company to consolidate the surgical facilities. Similar to its investments in non-consolidated affiliates, the Company regularly engages in the purchase and sale of ownership interests with respect to its consolidated subsidiaries that do not result in a change of control.

Non-Controlling Interests — Redeemable. Each partnership and limited liability company through which the Company owns and operates its surgical facilities is governed by a partnership or operating agreement, respectively. In certain circumstances, the applicable partnership or operating agreements for the Company's surgical facilities provide that the facilities will purchase all of the physician limited partners’ or physician minority members’, as applicable, ownership if certain adverse regulatory events occur, such as it becoming illegal for the physician(s) to own an interest in a surgical facility, refer patients to a surgical facility or receive cash distributions from a surgical facility. The non-controlling interests—redeemable are reported outside of stockholders' equity in the condensed consolidated balance sheets.

A summary of activity related to the non-controlling interests—redeemable follows (in thousands):



Successor
Balance at December 31, 2017	$	299,316
Net income attributable to non-controlling interests—redeemable	6,738
Acquisition and disposal of shares of non-controlling interests, net—redeemable	16,058
Distributions to non-controlling interest—redeemable holders	(8,469		)
Balance at March 31, 2018	$	313,643

Variable Interest Entities

The condensed consolidated financial statements include the accounts of variable interest entities in which the Company is the primary beneficiary under the provisions of ASC 810, Consolidation. As of both March 31, 2018 (Successor) and December 31, 2017 (Successor), the variable interest entities include five surgical facilities, three anesthesia practices and three physician practices. The Company has the power to direct the activities that most significantly impact a variable interest entity's economic performance. Additionally, the Company would absorb the majority of the expected losses from any of these entities should such expected losses occur.

The total assets (excluding goodwill and intangible assets, net) of the consolidated VIEs included in the accompanying condensed consolidated balance sheets as of March 31, 2018 (Successor) and December 31, 2017 (Successor), were $14.1 million and $13.1 million, respectively, and the total liabilities of the consolidated VIEs were $5.8 million and $5.8 million, respectively.

Equity Method Investments

The Company has non-consolidating investments in surgical facilities and management companies that own or manage surgical facilities. These investments are accounted for using the equity method of accounting. The total amount of these investments included in investments in and advances to affiliates in the condensed consolidated balance sheets was $75.2 million and $74.3 million as of March 31, 2018 (Successor) and December 31, 2017 (Successor), respectively.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and footnotes. Examples include, but are not limited to, estimates of accounts receivable allowances, professional and general liabilities and the estimate of deferred tax assets or liabilities. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments are of a normal, recurring nature. Actual results could differ from those estimates.

Reclassifications

Certain reclassifications have been made to the comparative periods' financial statements to conform to the current year presentation.

Fair Value of Financial Instruments

The fair value of a financial instrument is the amount at which the instrument could be exchanged in an orderly transaction between market participants to sell the asset or transfer the liability. The Company uses fair value measurements based on quoted prices in active markets for identical assets or liabilities (Level 1), inputs other than quoted prices in active markets that are either directly or indirectly observable (Level 2), or unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions (Level 3), depending on the nature of the item being valued.

The carrying amounts reported in the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, restricted invested assets and accounts payable approximate their fair values.

A summary of the carrying amounts and fair values of the Company's long-term debt follows (in thousands):



	Successor
	Carrying Amount				Fair Value
	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
2017 Senior Secured Credit Facilities:
Revolver	$	—	$	—	$	—	$	—
Term Loan	$	1,277,482	$	1,280,532	$	1,275,566	$	1,267,189
Senior Unsecured Notes due 2021	$	408,633	$	409,235	$	422,424	$	422,535
Senior Unsecured Notes due 2025	$	370,000	$	370,000	$	356,125	$	346,413

The fair values of the Term Loan, 2021 Unsecured Notes and the 2025 Unsecured Notes (in each case, as defined in Note 4. Long-Term Debt) were based on a Level 2 inputs using quoted prices for identical liabilities in inactive markets at March 31, 2018 (Successor) and December 31, 2017 (Successor), as applicable. The carrying amounts related to the Company's other long-term debt obligations, including the Revolver (as defined in Note 4. Long-Term Debt), approximate their fair values.

The Company maintains a supplemental executive retirement savings plan (the "SERP") for certain executive officers. The SERP is a non-qualified deferred compensation plan for eligible executive officers and other key employees of the Company that allows participants to defer portions of their compensation. The fair value of the SERP asset and liability was based on a quoted market price, or a Level 1 computation. As of both March 31, 2018 (Successor) and December 31, 2017 (Successor), the fair value of both the assets and liabilities in the SERP were $1.9 million and were included in other long-term assets and other long-term liabilities in the condensed consolidated balance sheets.

Revenues

In May 2014, the Financial Accounting Standards Board ("FASB") issued a new standard related to revenue recognition. The Company adopted the new standard effective January 1, 2018, using the modified retrospective method. The adoption of the new standard did not have an impact on our recognition of net revenues for any periods prior to adoption. The majority of the “Provision for doubtful accounts” will continue to be recognized as an operating expense rather than as a direct reduction to revenues, given the Company’s practice of assessing a patient’s ability to pay prior to or on the date of providing healthcare services. After initial recognition, the Company’s accounts receivables are subject to impairment assessments periodically based on changes in credit risks using historical trends of cash collections, write-offs, accounts receivable agings and other factors.

The Company's revenues generally relate to contracts with patients in which the performance obligations are to provide healthcare services. The Company recognizes revenues in the period in which our obligations to provide health care services are satisfied and reports the amount that reflects the consideration the Company expects to be entitled to. The Company's performance obligations are generally satisfied over a period of less than one day. The contractual relationships with patients, in most cases, also involve a third-party payer (Medicare, Medicaid, managed care health plans, employers and commercial insurance companies, including plans offered through the health insurance exchanges) and the transaction prices for the services provided are dependent upon the terms provided by (Medicare and Medicaid) or negotiated with (managed care health plans, employers and commercial insurance companies) the third-party payers. The payment arrangements with third-party payers for the services provided to the related patients typically specify payments at amounts less than the Company's standard charges. Medicare generally pays for services at prospectively determined rates based on clinical, diagnostic and other factors. Services provided to patients having Medicaid coverage are generally paid at prospectively determined rates per discharge, per identified service or per covered member. Agreements with commercial insurance carriers, managed care and preferred provider organizations generally provide for payments based upon predetermined rates per diagnosis, per diem rates or discounted fee-for-service rates. The Company continually reviews the contractual estimation process to consider and incorporate updates to laws and regulations and the frequent changes in managed care contractual terms resulting from contract renegotiations and renewals.

A summary of revenues by service type as a percentage of total revenues follows:



	Three Months Ended March 31,
	2018		2017
	Successor		Predecessor
Patient service revenues:
Surgical facilities revenues	93.5	%	89.6	%
Ancillary services revenues	4.9	%	8.8	%
	98.4	%	98.4	%
Other service revenues:
Optical services revenues	0.7	%	1.0	%
Other revenues	0.9	%	0.6	%
	1.6	%	1.6	%
Total revenues	100.0	%	100.0	%

Patient service revenues. This includes revenue related to charging facility fees in exchange for providing patient care. The fee charged for healthcare procedures performed in surgical facilities varies depending on the type of service provided, but usually includes all charges for usage of an operating room, a recovery room, special equipment, medical supplies, nursing staff and medications. The fee does not normally include professional fees charged by the patient’s surgeon, anesthesiologist or other attending physician, which are billed directly by such physicians to the patient or third-party payor. However, in several surgical facilities, the Company charges for anesthesia services. Ancillary service revenues include fees for patient visits to the Company's physician practices, pharmacy services and diagnostic tests ordered by physicians.

Patient service revenues are recognized as performance obligations are satisfied. Performance obligations are based on the nature of services provided. Typically, the Company recognizes revenue at a point in time in which services are rendered and the Company has no obligation to provide further patient services. As the Company primarily performs outpatient procedures, performance obligations are generally satisfied same day and revenue is recognized on the date of service.

The Company determines the transaction price based on gross charges for services provided, net of estimated contractual adjustments, discounts from third-party payors, including Medicare and Medicaid. The Company estimates its contractual adjustments and discounts based on contractual agreements, its discount policies and historical experience. Changes in estimated contractual adjustments and discounts are recorded in the period of change. There were no adjustments as a result of changes in estimates to third-party settlements related to prior years during the three months ended March 31, 2018 (Successor). During the three months ended March 31, 2017 (Predecessor), the Company recognized an increase to patient service revenues as a result of changes in estimates to third-party settlements related to prior years of approximately $0.4 million.

The following table sets forth patient service revenues by type of payor and as a percentage of total patient service revenues for the Company's consolidated surgical facilities (dollars in thousands):



	Three Months Ended March 31,
	2018				2017
	Successor				Predecessor
	Amount		%		Amount		%
Patient service revenues:
Private insurance	$	219,636	53.5	%	$	139,003	49.4	%
Government	159,347		38.8	%	116,878		41.5	%
Self-pay	12,970		3.1	%	6,071		2.2	%
Other ⁽¹⁾	18,793		4.6	%	19,694		6.9	%
Total patient service revenues	410,746		100.0	%	281,646		100.0	%
Other service revenues:
Optical services revenues	2,960				2,821
Other revenues	3,663				1,716
Total revenues	$	417,369			$	286,183


(1)	Other is comprised of anesthesia service agreements, auto liability, letters of protection and other payor types.

Other service revenues. Optical service revenues consist of product sales from the Company's optical laboratories as well as handling charges billed to the members of the Company's optical products purchasing organization. The Company's optical products purchasing organization negotiates volume buying discounts with optical products manufacturers. The buying discounts and any handling charges billed to the members of the buying group represent the revenue recognized for financial reporting purposes. The Company satisfies the performance obligation and recognizes revenue when the orders are shipped to members. The Company bases its estimates for sales returns and discounts on historical experience and has not experienced significant fluctuations between estimated and actual return activity and discounts given. The Company's optical laboratories manufacture and distribute corrective lenses and eyeglasses to ophthalmologists and optometrists. The Company satisfies the performance obligation and recognize revenue when the product is shipped, net of allowance for discounts.

Other revenues include management and administrative service fees derived from the non-consolidated facilities that the Company accounts for under the equity method, management of surgical facilities in which it does not own an interest, and management services provided to physician practices for which the Company is not required to provide capital or additional assets. These agreements typically require the Company to provide recurring management services over a multi-year period which are billed and collected on a monthly basis. The fees derived from these management arrangements are based on a predetermined percentage of the revenues of each facility or practice and are recognized in the period in which management services are rendered and billed.

Cash and Cash Equivalents

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company maintains its cash and cash equivalent balances at high credit quality financial institutions.

In accordance with the provisions of the operating lease agreement at the Company's Chesterfield, Missouri facility, the Company has a deposit with the landlord that shall be held as security for performance under the Company's covenants and obligations within the agreement through January 2024. The Company presents the restricted amount separate from cash and cash equivalents under the caption "restricted invested assets" in the condensed consolidated balance sheets.

The following table reconciles cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the totals shown within the condensed consolidated statement of cash flows (in thousands):



	Successor
	March 31, 2018		December 31, 2017

Cash and cash equivalents	$	112,816	$	174,914
Restricted invested assets	315		315
Total cash, cash equivalents and restricted cash in the statement of cash flows	$	113,131	$	175,229

Accounts Receivable and Allowances for Contractual Adjustments and Doubtful Accounts

With the Company's adoption of ASC 2014-09 on January 1, 2018, for those accounts in which the Company has an unconditional right to payment, subject only to the passage of time, the right is recorded as a receivable. Accounts receivable are recorded net of contractual adjustments and allowances for doubtful accounts to reflect accounts receivable at net realizable value. Accounts receivable consists of receivables from federal and state agencies (under the Medicare and Medicaid programs), managed care health plans, commercial insurance companies, employers and patients. Management recognizes that revenues and receivables from government agencies are significant to the Company's operations, but it does not believe that there is significant credit risk associated with these government agencies. Concentration of credit risk with respect to other payors is limited because of the large number of such payors. The Company had a net third-party Medicaid settlements liability of $4.3 million and $1.0 million as of March 31, 2018 (Successor) and December 31, 2017 (Successor), respectively, included in other current liabilities in the condensed consolidated balance sheets.

The Company recognizes that final reimbursement of accounts receivable is subject to final approval by each third-party payor. However, because the Company has contracts with its third-party payors and also verifies insurance coverage of the patient before medical services are rendered, the amounts that are pending approval from third-party payors are not considered significant. The Company's policy is to collect co-payments and deductibles prior to providing medical services. It is also the Company's policy to verify a patient’s insurance 72 hours prior to the patient’s procedure. Patient services of the Company are primarily non-emergency, which allows the surgical facilities to control the procedures for which third-party reimbursement is sought and obtained. The Company does not require collateral from self-pay patients.

The Company analyzes accounts receivable at each of its facilities to ensure the proper aged category and collection assessment. At a consolidated level, the Company's policy is to review accounts receivable aging, by facility, to determine the appropriate allowance for doubtful accounts. Patient account balances are reviewed for delinquency based on contractual terms. This review is supported by an analysis of the actual revenues, contractual adjustments and cash collections received. An account balance is written off only after the Company has pursued collection with legal or collection agency assistance or otherwise has deemed an account to be uncollectible.

The receivables related to the Company's optical products purchasing organization are recognized separately from patient accounts receivable, as discussed above, and are included in other current assets in the condensed consolidated balance sheets. Such receivables were $10.3 million and $7.6 million at March 31, 2018 (Successor) and December 31, 2017 (Successor), respectively.

Inventories

Inventories, which consist primarily of medical and drug supplies, are stated at the lower of cost or market value. Cost is determined using the first-in, first-out method.

Prepaid Expenses and Other Current Assets

A summary of prepaid expenses and other current assets follows (in thousands):



	Successor
	March 31, 2018		December 31, 2017

Prepaid expenses	$	15,810	$	16,835
Receivables - optical product purchasing organization	10,259		7,563
Insurance recoveries	2,828		2,828
Other	25,427		28,111
Total	$	54,324	$	55,337

Property and Equipment

Property and equipment are stated at cost or, if obtained through acquisition, at fair value determined on the date of acquisition. Depreciation is recognized using the straight-line method over the estimated useful lives of the assets, generally 20 to 40 years for buildings and building improvements, three to five years for computers and software and five to seven years for furniture and equipment. Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term or the estimated useful life of the assets. Routine maintenance and repairs are expensed as incurred, while expenditures that increase capacities or extend useful lives are capitalized.

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



	Successor
	March 31, 2018			December 31, 2017

Land	$	19,546		$	19,561
Buildings and improvements	193,942			188,571
Furniture and equipment	23,681			20,813
Computer and software	30,904			28,578
Medical equipment	137,956			138,112
Construction in progress	25,860			22,581
Property and equipment, at cost	431,889			418,216
Less: Accumulated depreciation	(31,504		)	(19,680		)
Property and equipment, net	$	400,385		$	398,536

The Company also leases certain facilities and equipment under capital leases. Assets held under capital leases are stated at the present value of minimum lease payments at the inception of the related lease. Such assets are depreciated on a straight-line basis over the lesser of the lease term or the remaining useful life of the leased asset. The carrying values of assets under capital lease were $19.1 million and $16.2 million as of March 31, 2018 (Successor) and December 31, 2017 (Successor), respectively, net of accumulated depreciation of $7.4 million and $5.8 million, respectively.

Intangible Assets

The Company has indefinite-lived intangible assets related to the certificates of need held in jurisdictions where certain of its surgical facilities are located. The Company also has finite-lived intangible assets related to physician guarantee agreements, non-compete agreements, management agreements and customer relationships. Physician income guarantees are amortized into salaries and benefits costs in the condensed consolidated statements of operations over the commitment period of the contract, generally three to four years. Non-compete agreements and management rights agreements are amortized into depreciation and amortization expense in the condensed consolidated statements of operations over the service lives of the agreements, typically ranging from two to five years for non-compete agreements and fifteen years for the management rights agreements. Customer relationships are amortized into depreciation and amortization expense in the condensed consolidated statements of operations over the estimated lives of the relationships, ranging from three to ten years.

A summary of the components of intangible assets follows (in thousands):



	Successor
	March 31, 2018							December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net

Finite-lived intangible assets:
Management rights agreements	$	42,600	$	(1,998	)	$	40,602	$	42,600	$	(1,058	)	$	41,542
Non-compete agreements	4,381		(1,102		)	3,279		4,874		(715		)	4,159
Physician income guarantees	878		(323		)	555		878		(227		)	651
Total finite-lived intangible assets	47,859		(3,423		)	44,436		48,352		(2,000		)	46,352
Indefinite-lived intangible assets:
Management rights agreements	11,000		—			11,000		5,900		—			5,900
Certificates of need	5,863		—			5,863		5,548		—			5,548
Medicare licenses	1,113		—			1,113		1,108		—			1,108
Total intangible assets	$	65,835	$	(3,423	)	$	62,412	$	60,908	$	(2,000	)	$	58,908

Goodwill

Goodwill represents the fair value of the consideration provided in an acquisition over the fair value of net assets acquired and is not amortized. Additions to goodwill include amounts resulting from new business combinations and incremental ownership purchases in the Company's subsidiaries. A summary of the Company's acquisitions for the three months ended March 31, 2018 is included in Note 3. Acquisitions and Developments.

A summary of activity related to goodwill for the three months ended March 31, 2018 (Successor) follows (in thousands):



Successor
Balance at December 31, 2017	$	3,346,838
Acquisitions, including post acquisition adjustments	35,963
Balance at March 31, 2018	$	3,382,801

Impairment of Long-Lived Assets, Goodwill and Intangible Assets

The Company evaluates the carrying value of long-lived assets when impairment indicators are present or when circumstances indicate that impairment may exist. The Company performs an impairment test by preparing an expected undiscounted cash flow projection. If the projection indicates that the recorded amount of the long-lived asset is not expected to be recovered, the carrying value is reduced to estimated fair value. The cash flow projection and fair value represents management’s best estimate, using appropriate and customary assumptions, projections and methodologies, at the date of evaluation. No impairment losses on long-lived assets were recognized during the three months ended March 31, 2018 (Successor) and three months ended March 31, 2017 (Predecessor).

The Company tests its goodwill and indefinite-lived intangible assets for impairment at least annually, as of October 1, or more frequently if certain indicators arise. The Company tests for goodwill impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. The Company has determined that it has five reporting units, which include the following: 1) Surgical Facilities 2) Ancillary Services, 3) Midwest Labs, 4) The Alliance and 5) Family Vision Care. The Company compares the carrying value of the net assets of the reporting unit to the estimated fair value of the reporting unit. If the carrying value exceeds the estimated fair value, an impairment indicator exists and an estimate of the possible impairment loss is calculated. The fair value of the reporting units are estimated using a discounted cash flows approach and are corroborated using a market-based approach. The fair value calculation includes multiple assumptions and estimates, including the projected cash flows and discount rates applied. The Company performed its most recent annual impairment test as of October 1, 2017 (Successor) and did not incur an impairment loss.

Other Long-Term Assets

A summary of other long-term assets follows (in thousands):



	Successor
	March 31, 2018		December 31, 2017

Acquisition escrow deposit	$	20,471	$	19,600
Insurance recoveries	11,518		10,018
Other	20,390		18,732
Total	$	52,379	$	48,350

Other Current Liabilities

A summary of other current liabilities follows (in thousands):



	Successor
	March 31, 2018		December 31, 2017

Interest payable	$	22,895	$	20,537
Amounts due to patients and payors	20,283		18,096
Insurance liabilities	9,843		9,873
Facility lease obligations	6,426		6,256
Current taxes payable	5,678		4,912
Accrued expenses and other	48,445		50,270
Total	$	113,570	$	109,944

Other Long-Term Liabilities

A summary of other long-term liabilities follows (in thousands):



	Successor
	March 31, 2018		December 31, 2017

Facility lease obligations	$	119,239	$	121,627
Tax receivable agreement liability	44,930		43,791
Acquisition escrow liability	20,471		19,600
Medical malpractice liability	17,950		16,450
Other	30,934		21,012
Total	$	233,524	$	222,480

At four of the Company's surgical facilities, the Company has facility lease obligations payable to the lessor of each facility. Payments are allocated to principal adjustments of the lease obligations and interest expense. The current and long-term balances of the lease obligations are included in the other current liabilities and other long-term liabilities tables above.

Operating Leases

The Company leases office space and equipment for its surgical facilities, including surgical facilities under development. The lease agreements generally require the lessee, or the Company, to pay all maintenance, property taxes, utilities and insurance costs. The Company accounts for operating lease obligations and sublease income on a straight-line basis. Contingent obligations of the Company, as defined by each lease agreement, are recognized when specific contractual measures have been met, typically the result of an increase in the Consumer Price Index. Lease obligations paid in advance are recorded as prepaid rent and included in prepaid expenses and other current assets on the condensed consolidated balance sheets. The difference between actual lease payments and straight-line lease expense over the initial lease term, excluding optional renewal periods, is recorded as deferred rent and included in other current liabilities and other long-term liabilities on the condensed consolidated balance sheets.

Equity-Based Compensation

Transactions in which the Company receives employee and non-employee services in exchange for the Company’s equity instruments or liabilities that are based on the fair value of the Company’s equity securities or may be settled by the issuance of these securities are accounted for using a fair value method. In September 2015, the Company adopted the Surgery Partners, Inc. 2015 Omnibus Incentive Plan ("2015 Omnibus Incentive Plan") from which all equity-based awards will be granted. Under this plan, the Company can grant stock options, SARs, restricted stock, unrestricted stock, stock units, performance awards, cash awards and other awards convertible into or otherwise based on shares of its common stock.

The Company applies the Black-Scholes-Merton method of valuation in determining share-based compensation expense for option awards. Application of this method includes assumptions such as expected stock price volatility, risk-free interest rate, expected dividends, and expected term. The fair values of time-based restricted stock units are based on the closing price of the Company’s common stock on the trading date immediately prior to the grant date. The fair values of performance-based restricted stock units are determined based on a combination, where applicable, of the closing price of the Company's common stock on the trading date immediately prior to the grant date for units subject to performance conditions, or at its Monte-Carlo simulation value for units subject to market conditions. For these restricted stock units, the number of shares payable at the end of the vesting periods is based on the Company’s actual performance and/or market conditions results as compared to the targets.

The Company's policy is to recognize compensation expense using the straight line method over the relevant vesting period for units that vest based on time. The Company recognizes compensation expense for the portion of performance-based restricted stock units subject to market conditions even if the condition is never satisfied. However, if the performance conditions are not met for the portion of the performance-based restricted stock units subject to such performance conditions, no compensation expense will be recognized, and any previously recognized compensation expense will be reversed. Forfeitures are recognized as incurred. Equity-based compensation expense can vary in the future depending on many factors, including levels of forfeitures and whether performance targets are met and whether a liquidity event occurs.

Professional, General and Workers' Compensation Insurance

The Company maintains general liability and professional liability insurance in excess of self-insured retentions through third party commercial insurance carriers in amounts that management believes is sufficient for the Company's operations, although, potentially, some claims may exceed the scope of coverage in effect. The professional and general insurance coverage is on a claims-made basis. Workers' compensation insurance is on an occurrence basis.

The Company expenses the costs under the self-insured retention exposure for general and professional liability and workers compensation claims which relate to (i) claims made during the policy period, which are offset by insurance recoveries and (ii) an estimate of claims incurred but not yet reported that are expected to be reported after the policy period expires. Reserves and provisions are based upon actuarially determined estimates. The reserves are estimated using individual case-basis valuations and actuarial analysis. Reserves for professional, general and workers' compensation claim liabilities are determined with no regard for expected insurance recoveries and are presented gross on the condensed consolidated balance sheets. Total professional, general and workers' compensation claim liabilities as of March 31, 2018 (Successor) and December 31, 2017 (Successor) are $22.4 million and $21.0 million, respectively. The balance includes expected insurance recoveries of $14.3 million and $12.8 million as of March 31, 2018 (Successor) and December 31, 2017 (Successor), respectively.

Income Taxes

The Company uses the asset and liability method to account for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. If a net operating loss ("NOL") or Section 163(j) interest (“163(j)”) carryforward exists, the Company makes a determination as to whether the NOL or 163(j) carryforward will be utilized in the future. A valuation allowance is established for certain carryforwards when their recoverability is deemed to be uncertain. The carrying value of the net deferred tax assets assumes that the Company will be able to generate sufficient future taxable income in certain tax jurisdictions, based on estimates and assumptions. If these estimates and related assumptions change in the future, the Company may be required to adjust its deferred tax valuation allowances.

The Company and certain of its subsidiaries file a consolidated federal income tax return. The partnerships, limited liability companies, and certain non-consolidated physician practice corporations also file separate income tax returns. The Company's allocable portion of each partnership's and limited liability company's income or loss is included in taxable income of the Company. The remaining income or loss of each partnership and limited liability company is allocated to the other owners.

The Company, or one or more of its subsidiaries, files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal income tax examinations for years prior to 2014 or state income tax examinations for years prior to 2013.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers," along with subsequent amendments, updates and an extension of the effective date (collectively the "New Revenue Standard"), which outlines a single comprehensive model for recognizing revenue and supersedes most existing revenue recognition guidance, including guidance specific to the healthcare industry. This five-step process will require significant management judgment in addition to changing the way many companies recognize revenue in their financial statements. The Company adopted this ASU on January 1, 2018 using the modified retrospective approach. The adoption of this standard did not have a significant impact on our recognition of net revenues for any period. Adoption of the standard resulted in the Company revising its related disclosures.

In February 2016, the FASB issued ASU 2016-02, "Leases," which will require, among other items, lessees to recognize most leases as assets and liabilities on the balance sheet. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company believes the primary effect of adopting the new standard will be to record right-of-use assets and obligations for current operating leases.

In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows – Restricted Cash," which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company adopted this ASU on January 1, 2018 and retrospectively applied the guidance to all periods presented in the condensed consolidated statement of cash flows. The retrospective application to prior periods had no impact on the Company's cash flows from operating, investing and financing activities as previously disclosed. The adoption of this ASU resulted in the modification of the Company's presentation of the reconciliation of beginning-of-period and end-of-period total amounts shown on the condensed consolidated statement of cash flows to include restricted cash as discussed under the heading "Cash and Cash Equivalents" above.

Acquisitions and Developments

3 Months Ended

Mar. 31, 2018

Business Combinations [Abstract]

Acquisitions and Developments

The Company accounts for its business combinations in accordance with the fundamental requirements of the acquisition method of accounting and under the premise that an acquirer can be identified for each business combination. The acquirer is the entity that obtains control of one or more businesses in the business combination and the acquisition date is the date the acquirer achieves control. The assets acquired, liabilities assumed and any non-controlling interests in the acquired business at the acquisition date are recognized at their fair values as of that date, and the direct costs incurred in connection with the business combination are recorded and expensed separately from the business combination. Any goodwill recognized is determined as the excess of the fair value of the consideration conveyed plus the fair value of any non-controlling interests in the acquisition over the fair value of the net assets acquired. Acquisitions in which the Company is able to exert significant influence but does not have control are accounted for using the equity method.

Acquired assets and assumed liabilities typically include, but are not limited to, fixed assets, intangible assets and professional liabilities. The valuations are based on appraisal reports, discounted cash flow analyses, actuarial analyses or other appropriate valuation techniques to determine the fair value of the assets acquired or liabilities assumed. Fair value attributable to non-controlling interests is based on a Level 3 computation using significant inputs that are not observable in the market. Key inputs used to determine the fair value include financial multiples used in the purchase of non-controlling interests, primarily from acquisitions of surgical facilities. Such multiples, based on earnings, are used as a benchmark for the discount to be applied for the lack of control or marketability. Fair value attributable to the property and equipment acquired is based on Level 3 computations using key inputs such as cost trend data and comparable asset sales. Fair value attributable to the intangible assets acquired is based on Level 3 computations using key inputs such as the Company's internally-prepared financial projections. Fair values assigned to acquired working capital are based on carrying amounts reported by the acquiree at the date of acquisition, which approximate their fair values. The preliminary estimated fair value assigned to goodwill is primarily attributable to the acquisitions favorable reputations in their markets, their market positions and their ability to deliver quality care with high patient satisfaction consistent with the Company's business model.

2018 Transactions

During the three months ended March 31, 2018 (Successor), the Company acquired a controlling interest in one surgical facility in a new market and a surgical facility in an existing market, which was merged into an existing facility, and a physician practice for a combined cash purchase price of $25.6 million, net of cash acquired. The acquisitions were funded through cash from operations. The total consideration related to these 2018 acquisitions was allocated to the assets acquired and liabilities assumed based upon their respective acquisition date fair values. The acquisitions were funded through cash from operations. The aggregate amounts preliminarily recognized for each major class of assets and liabilities assumed are as follows (in thousands):



Cash consideration	$	25,545
Fair value of non-controlling interests	17,287
Aggregate fair value of acquisitions	42,832

Current Assets	3,487
Property and equipment	1,905
Goodwill	38,539
Other long-term assets	1,155
Current liabilities	(1,254		)
Long-term liabilities	(1,000		)
Aggregate fair value allocated	$	42,832

The results of operations of the acquisitions are included in the Company’s results of operations beginning on the dates of acquisitions, and were not considered significant for the three months ended March 31, 2018. The fair values assigned to certain assets and liabilities assumed by the Company have been estimated on a preliminary basis and are subject to change as new facts and circumstances emerge that were present at the date of acquisition. All goodwill acquired in connection with the 2018 transactions was allocated to the Company's surgical facility services operating segment.

During the three months ended March 31, 2018, no significant changes were made to the purchase price allocation of assets and liabilities, existing at the date of acquisition, related to individual acquisitions completed in 2017, excluding the acquisition of NSH as discussed below.

Acquisition of NSH

On August 31, 2017 (Predecessor), the Company completed its acquisition of NSH Holdco, Inc. (“NSH”) for total cash consideration of $711.7 million, net of cash acquired, including $19.6 million funded to an escrow account. The total consideration related to the acquisition of NSH was allocated to the assets acquired and liabilities assumed based upon their respective acquisition date fair values. The aggregate amounts preliminarily recognized for each major class of assets and liabilities, including post acquisition date adjustments, are as follows (in thousands):



Cash consideration	$	762,850
Fair value of non-controlling interests	325,965
Aggregate fair value of acquisition	1,088,815
Net assets acquired:
Cash and cash equivalents	51,159
Accounts receivable	71,875
Inventories	14,986
Prepaid expenses and other current assets	18,367
Property and equipment	174,499
Intangible assets	27,881
Goodwill	869,090
Investments in and advances to affiliates	29,737
Long-term deferred tax assets	18,971
Other long-term assets	26,988
Accounts payable	(29,652		)
Accrued payroll and benefits	(28,755		)
Other current liabilities	(23,339		)
Current maturities of long-term debt	(16,416		)
Long-term debt, less current maturities	(42,770		)
Other long-term liabilities	(73,806		)
Total fair value of net assets acquired	$	1,088,815

During the three months ended March 31, 2018 (Successor), information existing at the acquisition date became known to the Company as part of its evaluation of the assets and liabilities existing at the date of acquisition, resulting in a net decrease to goodwill of $1.2 million and corresponding changes to certain classes of assets and liabilities from the preliminary allocation recorded at August 31, 2017 (Predecessor), that are reflected in the table above. The Company is still in the process of evaluating all major classes of assets acquired and liabilities assumed. As such, the fair values assigned are subject to change as new facts and circumstances emerge that were present at the date of acquisition.

Change of Control - Pushdown Accounting

As previously discussed in Note 1. Organization, on August 31, 2017, in connection with the change of control, the Company elected to apply “pushdown” accounting by applying the guidance in Accounting Standards Codification Topic ("ASC") 805, Business Combinations. In accordance with ASC 805, all identifiable assets and liabilities of the Company were measured at and adjusted to fair value as of August 31, 2017, and similarly goodwill was recognized based on the terms of the transaction and the fair value of the new basis of the net assets of the Company.

The aggregate amounts preliminarily recognized in connection with the application of pushdown accounting for each major class of assets and liabilities as of August 31, 2017 are as follows (in thousands):



Equity attributable to Surgery Partners, Inc.	$	720,606
Redeemable preferred stock	310,000
Fair value of non-controlling interests	957,027
Aggregate fair value	1,987,633
Net assets:
Cash and cash equivalents	214,206
Accounts receivable	253,147
Inventories	44,310
Prepaid expenses and other current assets	61,438
Property and equipment	380,085
Intangible assets	63,978
Goodwill	3,297,389
Investments in and advances to affiliates	75,113
Restricted invested assets	315
Long-term deferred tax asset	204,831
Other long-term assets	50,666
Accounts payable	(64,921		)
Accrued payroll and benefits	(54,437		)
Other current liabilities	(97,019		)
Current maturities of long-term debt	(49,942		)
Long-term debt, less current maturities	(2,142,375		)
Long-term tax receivable agreement liability	(78,498		)
Other long-term liabilities	(170,653		)
Total fair value of net assets	$	1,987,633

During the three months ended March 31, 2018 (Successor), information existing at the acquisition date became known to the Company as part of its evaluation of the assets and liabilities existing at August 31, 2017, resulting in a net decrease to goodwill of $2.5 million and corresponding changes to certain classes of assets and liabilities from the preliminary allocation recorded, that are reflected in the table above. The Company is still in the process of evaluating all major classes of assets and liabilities. As such, the fair values assigned are subject to change as new facts and circumstances emerge that were present at August 31, 2017.

Long-Term Debt

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Long-Term Debt

A summary of long-term debt follows (in thousands):



	Successor
	March 31, 2018		December 31, 2017

2017 Senior Secured Credit Facilities:
Revolver	$	—	$	—
Term Loan ⁽¹⁾	1,277,482		1,280,532
Senior Unsecured Notes due 2021 ⁽²⁾	408,633		409,235
Senior Unsecured Notes due 2025	370,000		370,000
Notes payable and secured loans	94,253		101,921
Capital lease obligations	26,465		27,594
Total debt	2,176,833		2,189,282
Less: Current maturities	54,386		58,726
Total long-term debt	$	2,122,447	$	2,130,556

⁽¹⁾ Includes unamortized fair value discount of $6.1 million as of March 31, 2018 and $6.2 million as of December 31, 2017. See further discussion below.

⁽²⁾ Includes unamortized fair value premium of $8.6 million as of March 31, 2018 and $9.2 million as of December 31, 2017. See further discussion below.

2017 Senior Secured Credit Facilities

On August 31, 2017 (Predecessor), SP Holdco I, Inc. and Surgery Center Holdings, Inc., each a wholly-owned subsidiary of the Company, entered into a credit agreement (the “Credit Agreement”) providing for a $1.290 billion senior secured term loan (the “Term Loan”) and a $75.0 million revolving credit facility (the “Revolver” and, together with the Term Loan, the “2017 Senior Secured Credit Facilities”).

The Term Loan was fully drawn on August 31, 2017 (Predecessor) and the proceeds thereof were used to finance the consideration paid in the NSH acquisition, to repay amounts outstanding under the Company’s then-existing 2014 First Lien Credit Agreement and 2014 Revolver Loan, amounts outstanding under the existing senior secured credit facilities of NSH, and to pay fees and expenses in connection with the foregoing and related transactions. The Revolver may be utilized for working capital, capital expenditures and general corporate purposes. Subject to certain conditions and requirements set forth in the Credit Agreement, the Company may request one or more additional incremental term loan facilities or one or more increases in the commitments under the Revolver. As of March 31, 2018 (Successor), the Company's availability on the Revolver was $71.9 million (including outstanding letters of credit of $3.1 million).

The Term Loan will mature on August 31, 2024 (or, if at least 50.0% of the 2021 Unsecured Notes (as defined below) shall have not either been repaid or refinanced with permitted indebtedness having a maturity date not earlier than six months after the maturity date of the Term Loan by no later than October 15, 2020, then October 15, 2020). The Revolver will mature on August 31, 2022 (or, if at least 50.0% of the 2021 Notes have not either been repaid or refinanced with permitted indebtedness having a maturity date not earlier than six months after the maturity date of the Term Loan by no later than October 15, 2020, then October 15, 2020).

The 2017 Senior Secured Credit Facilities bear interest at a rate per annum equal to (x) LIBOR plus a margin ranging from 3.00% to 3.25% per annum, depending on the Company's first lien net leverage ratio or (y) an alternate base rate (which will be the highest of (i) the prime rate, (ii) 0.5% per annum above the federal funds effective rate and (iii) one-month LIBOR plus 1.00% per annum (solely with respect to the Term Loan, the alternate base rate shall not be less than 2.00% per annum)) plus a margin ranging from 2.00% to 2.25% per annum. In addition, the Company is required to pay a commitment fee of 0.50% per annum in respect of unused commitments under the Revolver.

The Term Loan amortizes in equal quarterly installments of 0.25% of the aggregate original principal amount of the Term Loan. The Term Loan is subject to mandatory prepayments based on excess cash flow for the applicable fiscal year that will depend on the first lien net leverage ratio as of the last day of the applicable fiscal year, as well as upon the occurrence of certain other events, as described in the Credit Agreement. There were no excess cash flow payments required as of March 31, 2018 (Successor).

With respect to the Revolver, the Company is required to comply with a maximum consolidated total net leverage ratio of 9.50:1.00, which covenant is tested quarterly on a trailing four quarter basis only if, as of the last day of the applicable fiscal quarter the Revolver is drawn in an aggregate amount greater than 35% of the total commitments under the Revolver. Such financial maintenance covenant is subject to an equity cure. The Credit Agreement includes customary negative covenants restricting or limiting the ability of the Company and its restricted subsidiaries, to, among other things, sell assets, alter its business, engage in mergers, acquisitions and other business combinations, declare dividends or redeem or repurchase equity interests, incur additional indebtedness or guarantees, make loans and investments, incur liens, enter into transactions with affiliates, prepay certain junior debt, and modify or waive certain material agreements and organizational documents, in each case, subject to customary and other agreed upon exceptions. The Credit Agreement also contains customary affirmative covenants and events of default. As of March 31, 2018 (Successor), the Company was in compliance with the covenants contained in the Credit Agreement.

The 2017 Senior Secured Credit Facilities are guaranteed, on a joint and several basis, by SP Holdco I, Inc. and each of Surgery Center Holdings, Inc.'s current and future wholly-owned domestic restricted subsidiaries (subject to certain exceptions) (the “Subsidiary Guarantors”) and are secured by a first priority security interest in substantially all of Surgery Center Holdings, Inc.'s, SP Holdco I, Inc.'s and the Subsidiary Guarantors’ assets (subject to certain exceptions).

In connection with the Term Loan and Revolver, the Company recorded debt issuance costs and discount of $18.8 million and $9.4 million, respectively, in the Predecessor period, which were eliminated with the application of pushdown accounting.

In connection with the application of pushdown accounting, the Company remeasured and recorded the Term Loan at fair value using a measurement date of August 31, 2017. The fair value was based on a Level 2 input using quoted prices for identical liabilities in inactive markets. As a result, the Company recorded a fair value discount of $6.5 million as of the measurement date, which is reported in the consolidated balance sheets as a direct deduction from the face amount the Term Loan. The Company amortizes the fair value discount to interest expense over the life of the Term Loan.

Senior Unsecured Notes due 2021

Effective March 31, 2016 (Predecessor), Surgery Center Holdings, Inc., issued $400.0 million in gross proceeds of senior unsecured notes due April 15, 2021 (the "2021 Unsecured Notes"). The 2021 Unsecured Notes bear interest at the rate of 8.875% per year, payable semi-annually on April 15 and October 15 of each year. The 2021 Unsecured Notes are a senior unsecured obligation of Surgery Center Holdings, Inc. and are guaranteed on a senior unsecured basis by each of Surgery Center Holdings, Inc.'s existing and future domestic wholly owned restricted subsidiaries that guarantees the 2017 Senior Secured Credit Facilities (subject to certain exceptions).

The Company may redeem up to 35% of the aggregate principal amount of the 2021 Unsecured Notes, at any time before April 15, 2018, with the net cash proceeds of certain equity offerings at a redemption price equal to 108.875% of the principal amount to be redeemed, plus accrued and unpaid interest to, but excluding, the date of redemption, provided that at least 50% of the aggregate principal amount of the 2021 Unsecured Notes remain outstanding immediately after the occurrence of such redemption and such redemption occurs within 180 days of the date of the closing of any such qualified equity offering.

The Company may redeem the 2021 Unsecured Notes, in whole or in part, at any time prior to April 15, 2018 at a price equal to 100.000% of the principal amount to be redeemed plus an applicable make-whole premium, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. The Company may redeem the 2021 Unsecured Notes, in whole or in part, at any time on or after April 15, 2018, at the redemption prices set forth below (expressed as a percentage of the principal amount to be redeemed), plus accrued and unpaid interest, if any, to the date of redemption:



April 15, 2018 to April 14, 2019	106.656	%
April 15, 2019 to April 14, 2020	104.438	%
April 15, 2020 and thereafter	100.000	%

If Surgery Center Holdings, Inc., experiences a change in control under certain circumstances, it must offer to purchase the notes at a purchase price equal to 101.000% of the principal amount, plus accrued and unpaid interest to, but excluding, the date of repurchase. The change of control as discussed in Note 1. "Organization", did not trigger repurchase.

The 2021 Unsecured Notes contain customary affirmative and negative covenants, which among other things, limit the Company’s ability to incur additional debt, pay dividends, create or assume liens, effect transactions with its affiliates, guarantee payment of certain debt securities, sell assets, merge, consolidate, enter into acquisitions and effect sale and leaseback transactions.

In connection with the offering of the 2021 Unsecured Notes, the Company recorded debt issuance costs of $8.4 million in the Predecessor period, which were eliminated with the application of pushdown accounting.

In connection with the application of pushdown accounting, the Company remeasured and recorded the 2021 Unsecured Notes at fair value using a measurement date of August 31, 2017. The fair value was based on a Level 2 input using quoted prices for identical liabilities in inactive markets. As a result, the Company recorded a fair value premium of $10.0 million as of the measurement date, which is reported in the consolidated balance sheets as a direct addition to the face amount the notes. The Company amortizes the fair value premium to interest expense over the life of the 2021 Unsecured Notes.

Senior Unsecured Notes due 2025

On June 30, 2017 (Predecessor), SP Finco, LLC, a wholly owned subsidiary of Surgery Center Holdings, Inc., issued $370.0 million in gross proceeds of senior unsecured notes due July 1, 2025 (the "2025 Unsecured Notes"). In connection with the closing of the NSH acquisition, Surgery Center Holdings Inc. assumed the obligations of SP Finco, LLC. As of such time, the 2025 Unsecured Notes became guaranteed on a senior unsecured basis by each of Surgery Center Holdings, Inc.’s domestic wholly owned restricted subsidiaries that guarantees Surgery Center Holdings, Inc.’s senior secured credit facilities (subject to certain exceptions). The 2025 Unsecured Notes bear interest at the rate of 6.750% per year, payable semi-annually on January 1 and July 1 of each year, commencing on January 1, 2018.

The Company may redeem up to 40% of the aggregate principal amount of the 2025 Unsecured Notes at any time prior to July 1, 2020, with the net cash proceeds of certain equity issuances at a redemption price equal to 106.750% of the principal amount to be redeemed, plus accrued and unpaid interest to, but excluding, the date of redemption, provided that at least 50% of the aggregate principal amount of the 2025 Unsecured Notes remain outstanding immediately after the occurrence of such redemption and such redemption occurs within 180 days of the date of the closing of the applicable equity offering.

The Company may redeem the 2025 Unsecured Notes, in whole or in part, at any time prior to July 1, 2020, at a price equal to 100.000% of the principal amount to be redeemed plus the applicable premium, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. The Company may redeem the 2025 Unsecured Notes, in whole or in part, at any time on or after July 1, 2020, at the redemption prices set forth below (expressed as a percentage of the principal amount to be redeemed), plus accrued and unpaid interest, if any, to, but excluding, the date of redemption:



July 1, 2020 to June 30, 2021	103.375	%
July 1, 2021 to June 30, 2022	101.688	%
July 1, 2022 and thereafter	100.000	%

If Surgery Center Holdings, Inc. experiences a change in control under certain circumstances, it must offer to purchase the 2025 Unsecured Notes at a purchase price equal to 101.000% of the principal amount, plus accrued and unpaid interest to, but excluding, the date of repurchase.

The 2025 Unsecured Notes contain customary affirmative and negative covenants, which, among other things, limit the Company’s ability to incur additional debt, pay dividends, create or assume liens, effect transactions with its affiliates, guarantee payment of certain debt securities, sell assets, merge, consolidate, enter into acquisitions and effect sale and leaseback transactions.

In connection with the offering of the 2025 Unsecured Notes, the Company recorded debt issuance costs of $17.3 million in the Predecessor period, which were eliminated with the application of pushdown accounting.

Notes Payable and Secured Loans

Certain of the Company’s subsidiaries have outstanding bank indebtedness, which is collateralized by the real estate and equipment owned by the surgical facilities to which the loans were made. The various bank indebtedness agreements contain covenants to maintain certain financial ratios and also restrict encumbrance of assets, creation of indebtedness, investing activities and payment of distributions. At March 31, 2018 (Successor), the Company was in compliance with its covenants contained in the credit agreements. The Company and its subsidiaries had notes payable to financial institutions of $94.3 million and $101.9 million as of March 31, 2018 (Successor) and December 31, 2017 (Successor), respectively. The Company and its subsidiaries also provide a corporate guarantee of certain indebtedness of the Company’s subsidiaries.

Capital Lease Obligations

The Company is liable to various vendors for several property and equipment leases classified as capital leases. The carrying value of the leased assets was $19.1 million and $16.2 million as of March 31, 2018 (Successor) and December 31, 2017 (Successor), respectively.

Redeemable Preferred Stock

3 Months Ended

Mar. 31, 2018

Temporary Equity Disclosure [Abstract]

Redeemable Preferred Stock

On August 31, 2017, the Company issued 310,000 shares of Series A Preferred Stock to Bain at a purchase price of $1,000 per share for an aggregate purchase price of $310.0 million. The net proceeds from the Preferred Private Placement (as defined in Note 1. "Organization") were used to finance a portion of the NSH acquisition.

The accrued value of the Series A Preferred Stock is convertible into shares of common stock at a price per share of common stock equal to $19.00, subject to certain adjustments as provided in the Certificate of Designations, Preferences, Rights and Limitations of the 10.00% Series A Convertible Perpetual Participating Preferred Stock of Surgery Partners, Inc. (the “Series A Certificate of Designation”), at any time at the option of the holder. In addition, the Company may require the conversion of all, but not less than all, of the Series A Preferred Stock pursuant to the terms and conditions of the Series A Certificate of Designation, after the second anniversary of the date of issuance, if the volume weighted average closing price of the common stock for any 20 out of 30 consecutive trading days prior to such date, equals or exceeds $42.00 per share.

The Company cannot redeem the Series A Preferred Stock prior to the fifth anniversary of its issuance and thereafter, may redeem all, but not less than all, of the Series A Preferred Stock for cash pursuant to and subject to the terms and conditions of the Series A Certificate of Designation. The holders of Series A Preferred Stock may cause the Company to redeem the Series A Preferred Stock upon the occurrence of certain change of control transactions of the Company or the common stock ceasing to be listed or quoted on a trading market. The Company adjusts the carrying amount of the Series A Preferred Stock to equal the redemption value at the end of each reporting period as if it were also the redemption date. Changes in the redemption value are recognized immediately as they occur.

The Series A Preferred Stock ranks senior to the common stock and any other capital stock of the Company with respect to dividends, redemption and any other rights upon the liquidation, dissolution or winding up of the Company, and the holders thereof are entitled to vote with the holders of common stock, together as a single class, on all matters submitted to a vote of the Company’s stockholders. In addition to participating in any dividends that may be declared with respect to the common stock on an as-converted basis, each share of Series A Preferred Stock accrues dividends daily at a dividend rate of 10.00%, compounding quarterly, and in any given quarter, subject to certain conditions, the Board of Directors of the Company may declare a cash dividend in an amount up to 50% of the amount of the dividend that has accrued and accumulated during such quarter through the end of such quarter, and the amount of any quarterly dividend paid in cash shall not compound on the applicable date and shall not be included in the accrued value of the Series A Preferred Stock. In the event of the Company’s liquidation, dissolution or winding-up (whether voluntary of involuntary), holders of Series A Preferred Stock will be entitled to receive out of the assets of the Company available for distribution to shareholders, after satisfaction of any liabilities and obligations to creditors of the Company, with respect to each Series A Preferred Share, an amount equal to the greater of (i) $1,000.00 per share, plus dividends compounded to date, plus dividends accrued but not yet compounded and (ii) the amount that a holder of one share of common stock would receive, assuming the Series A Preferred Stock had converted into shares of Common Stock.

In connection with the issuance of Series A Preferred Stock in the Preferred Private Placement, the Company incurred issuance costs of $18.3 million in the Predecessor period, which were eliminated with the application of pushdown accounting.

A summary of activity related to the redeemable preferred stock follows (in thousands):



Successor
Balance at December 31, 2017	$	330,806
Dividends accrued	7,772
Cash dividends declared	(3,886		)
Balance at March 31, 2018	$	334,692

Cash dividends declared but unpaid at both March 31, 2018 (Successor) and December 31, 2017 (Successor) was $3.9 million, and were included in other current liabilities in the consolidated balance sheet. The aggregate and per share amounts of unpaid cumulative preferred dividends as of March 31, 2017 (Successor) were $13.0 million and $41.97, respectively.

Earnings Per Share

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Basic and diluted earnings per share are calculated in accordance with ASC 260, Earnings Per Share, based on the weighted-average number of shares outstanding in each period and dilutive stock options, unvested shares and warrants, to the extent such securities exist and have a dilutive effect on earnings per share. Beginning in the Successor period, in connection with the issuance of the Series A Preferred Stock, the Company began computing basic and diluted earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation method that determines earnings per share for common shares and participating securities according to their participation rights in dividends and undistributed earnings. Refer to Note 5. Redeemable Preferred Stock, for further disclosure of the terms and conditions, including the participation rights, of the Series A Preferred Stock.

A reconciliation of the numerator and denominator of basic and diluted earnings per share follows (in thousands except share and per share amounts):



	Three Months Ended March 31,
	2018			2017
	Successor			Predecessor

Numerator:
Net loss attributable to Surgery Partners, Inc.	$	(17,521	)	$	(2,754	)
Less: amounts allocated to participating securities ⁽¹⁾	7,772			—
Net loss attributable to common stockholders	$	(25,293	)	$	(2,754	)

Denominator:
Weighted average shares outstanding- basic	48,006,870			48,019,652
Effect of dilutive securities ⁽²⁾	—			—
Weighted average shares outstanding- diluted	48,006,870			48,019,652

Loss per share:
Basic	$	(0.53	)	$	(0.06	)
Diluted ⁽²⁾	$	(0.53	)	$	(0.06	)

Dilutive securities outstanding not included in the computation of (loss) earnings per share as their effect is antidilutive:
Stock options	123,410			851
Restricted shares	58,244			132,485
Convertible preferred stock	—			N/A


⁽¹⁾	Includes dividends accrued during the three months ended March 31, 2018 (Successor) for the Series A Preferred Stock. The Series A Preferred Stock does not participate in undistributed losses. There were no participating securities during the Predecessor period.


⁽²⁾	The impact of potentially dilutive securities for both periods presented was not considered because the effect would be anti-dilutive in each period.

Share Repurchase Transactions

On December 15, 2017 (Successor), the Board of Directors authorized a share repurchase program of up to $50.0 million of the Company's issued and outstanding common stock from time to time. The timing and size of repurchases will be determined based on market conditions and other factors. The authorization does not obligate the repurchase any shares and the Company may repurchase shares of common stock at any time without prior notice. The share repurchases will be made in accordance with applicable securities laws in open market or privately negotiated transactions. The authorization does not have a specified expiration date, and the share repurchase program may be suspended, recommenced or discontinued at any time or from time to time without prior notice.

During the first quarter of 2018 (Successor), through the date of this report, the Company repurchased 156,818 shares of its common stock stock at an average price of $12.64 per share through market purchases. At March 31, 2018 (Successor), the Company had $46.0 million of repurchase authorization available under the December 2017 authorization.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Professional, General and Workers' Compensation Liability Risks The Company is subject to claims and legal actions in the ordinary course of business, including claims relating to patient treatment, employment practices and personal injuries. To cover these claims, the Company maintains general liability and professional liability insurance in excess of self-insured retentions through third party commercial insurance carriers in amounts that management believes is sufficient for the Company's operations, although, potentially, some claims may exceed the scope of coverage in effect. The professional and general insurance coverage is on a claims-made basis. Workers' compensation insurance is on an occurrence basis. Plaintiffs in these matters may request punitive or other damages that may not be covered by insurance. The Company is not aware of any such proceedings that would have a material adverse effect on the Company's business, financial position, results of operations or liquidity. Laws and Regulations Laws and regulations governing the Company's business, including those relating to the Medicare and Medicaid programs, are complex and subject to interpretation. These laws and regulations govern every aspect of how the Company's surgical facilities conduct their operations, from licensing requirements to how and whether the Company's facilities may receive payments pursuant to the Medicare and Medicaid programs. Compliance with such laws and regulations can be subject to future government agency review and interpretation as well as legislative changes to such laws. Noncompliance with such laws and regulations may subject the Company to significant regulatory action including fines, penalties, and exclusion from the Medicare, Medicaid and other federal healthcare programs. From time to time, governmental regulatory agencies will conduct inquiries of the Company's practices, including, but not limited to, the Company's compliance with federal and state fraud and abuse laws, billing practices and relationships with physicians. It is the Company's current practice and future intent to cooperate fully with such inquiries. The Company is not aware of any such inquiry that would have a material adverse effect on the Company's business, financial position, results of operations or liquidity. In addition, on October 23, 2017, the Company received a civil investigative demand (“CID”) from the federal government under the False Claims Act (“FCA”) for documents and information dating back to January 1, 2010 relating to the medical necessity of certain drug tests conducted by the Company’s physicians and submitted to laboratories owned and operated by the Company. The Company has responded to the CID and will continue to cooperate with the U.S. Attorney’s Office in connection with the FCA investigation. Acquired Facilities The Company, through its wholly-owned subsidiaries or controlled partnerships and limited liability companies, has acquired and will continue to acquire surgical facilities with prior operating histories. Such facilities may have unknown or contingent liabilities, including liabilities for failure to comply with healthcare laws and regulations, such as billing and reimbursement, fraud and abuse and similar anti-referral laws. Although the Company attempts to assure that no such liabilities exist, obtain indemnification from prospective sellers covering such matters and institute policies designed to conform centers to its standards following completion of acquisitions, there can be no assurance that the Company will not become liable for past activities that may later be asserted to be improper by private plaintiffs or government agencies. There can be no assurance that any such matter will be covered by indemnification or, if covered, that the liability sustained will not exceed contractual limits or the financial capacity of the indemnifying party. The Company cannot predict whether federal or state statutory or regulatory provisions will be enacted that would prohibit or otherwise regulate relationships which the Company has established or may establish with other healthcare providers or have materially adverse effects on its business or revenues arising from such future actions. Management believes, however, that it will be able to adjust the Company's operations so as to be in compliance with any statutory or regulatory provision as may be applicable. Potential Physician Investor Liability A majority of the physician investors in the partnerships and limited liability companies which operate the Company's surgical facilities carry general and professional liability insurance on a claims-made basis. Each partnership or limited liability company may, however, be liable for damages to persons or property arising from occurrences at the surgical facilities. Although the various physician investors and other surgeons generally are required to obtain general and professional liability insurance with tail coverage that extends beyond the period of any claims-made policies, such individuals may not be able to obtain coverage in amounts sufficient to cover all potential liability. Since most insurance policies contain exclusions, the physician investors will not be insured against all possible occurrences. In the event of an uninsured or underinsured loss, the value of an investment in the partnership interests or limited liability company membership units and the amount of distributions could be adversely affected. Tax Receivable Agreement On May 9, 2017, the Company entered into an agreement to amend that certain Income Tax Receivable Agreement, dated September 30, 2015 (as amended, the “TRA”), by and between the Company, and the other parties referred to therein, which amendment became effective on August 31, 2017. Pursuant to the amendment to the TRA, the Company agreed to make payments to H.I.G., the Company's former controlling shareholder, in its capacity as the stockholders representative pursuant to a fixed payment schedule. The amounts payable under the TRA are calculated as the product of (i) an annual base amount and (ii) the maximum corporate federal income tax rate for the applicable year plus three percent. The amounts payable under the TRA are related to the Company’s projected realized tax savings over the next six years and are not dependent on the Company’s actual tax savings over such period. The calculation of amounts payable pursuant to the TRA is thus dependent on the maximum corporate federal income tax rate. To the extent that the Company is unable to make payments under the TRA and such inability is a result of the terms of credit agreements and other debt documents that are materially more restrictive than those existing as of September 30, 2015, such payments will be deferred and will accrue interest at a rate of LIBOR plus 500 basis points until paid. If the terms of such credit agreements and other debt documents cause the Company to be unable to make payments under the TRA and such terms are not materially more restrictive than those existing as of September 30, 2015, such payments will be deferred and will accrue interest at a rate of LIBOR plus 300 basis points until paid. Assuming the Company’s effective tax rate is 24%, calculated as the maximum corporate federal tax rate plus three percent, throughout the remaining term of the TRA, the Company estimates that the total remaining amounts payable under the TRA was approximately $65.1 million as of both March 31, 2018 (Successor) and December 31, 2017 (Successor). As a result of the amendment to the TRA, the Company was required to value the liability under the TRA by discounting the fixed payment schedule using the Company’s incremental borrowing rate. The carrying value of the liability under the TRA, reflecting the discount, was $45.5 million as of March 31, 2018 (Successor) and $44.3 million as of December 31, 2017 (Successor). Contingent Consideration As disclosed in the footnotes to the condensed consolidated statements of operations, the Company recognized contingent acquisition compensation expense of $0.5 million and $2.0 million for three months ended March 31, 2018 (Successor) and 2017 (Predecessor), respectively. In connection with certain acquisitions during 2016, pursuant to the applicable purchase agreements, the Company was required to pay consideration to the prior owners of the applicable facilities should the requirements for continuing employment agreed to in the purchase agreements be met. In accordance with ASC 805, Business Combinations, contingent consideration with a continuing employment provision is recognized ratably over the defined performance period as compensation expense. The Company estimates total contingent acquisition compensation expense of for the year ended December 31, 2018 will be $1.5 million.

Segment Reporting

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Segment Reporting

Operating segments, as defined, are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or "CODM," in deciding how to allocate resources and in assessing performance.

The Company operates in three major lines of business that are also the Company's reportable operating segments - the operation of surgical facilities, the operation of optical services and the operation of ancillary services. "All other" primarily consists of the Company's corporate general and administrative functions. Prior to the third quarter of 2017, the all other component was disaggregated and presented below the reportable operating segments in the Adjusted EBITDA reconciliation table. The Company has conformed the prior periods to align to the current year presentation. These changes had no effect on the Company’s reportable operating segments, which are presented consistent with prior periods.

Adjusted EBITDA is the primary profit/loss metric reviewed by the CODM in making key business decisions and on allocation of resources. The segment disclosures below provide a reconciliation from Adjusted EBITDA to income before income taxes, its most directly comparable GAAP financial measure, in the reported condensed consolidated financial information.

The following tables present financial information for each reportable segment (in thousands):



	Three Months Ended March 31,
	2018		2017
	Successor		Predecessor
Revenues:
Surgical facility services	$	394,066	$	258,149
Ancillary services	20,344		25,212
Optical services	2,959		2,822
Total revenues	$	417,369	$	286,183



	Three Months Ended March 31,
	2018			2017
	Successor			Predecessor
Adjusted EBITDA:
Surgical facility services	$	66,467		$	48,241
Ancillary services	1,054			3,782
Optical services	825			776
All other	(21,269		)	(12,692		)
Total Adjusted EBITDA ⁽¹⁾	47,077			40,107

Net income attributable to non-controlling interests	22,646			17,176
Depreciation and amortization	(15,749		)	(11,108		)
Interest expense, net	(34,276		)	(25,182		)
Non-cash stock compensation expense	(1,997		)	(634		)
Contingent acquisition compensation expense	(503		)	(2,033		)
Merger transaction, integration and practice acquisition costs ⁽²⁾	(5,485		)	(591		)
Reserve adjustments ⁽³⁾	(4,779		)	—
Loss on disposal or impairment of long-lived assets, net	(47		)	(1,196		)
Income before income taxes	$	6,887		$	16,539

⁽¹⁾

The above table reconciles Adjusted EBITDA to income before income taxes as reflected in the unaudited condensed consolidated statements of operations. When the Company uses the term “Adjusted EBITDA,” it is referring to income before income taxes adjusted for (a) net income attributable to non-controlling interests, (b) depreciation and amortization, (c) interest expense, net, (d) non-cash stock compensation expense, (e) contingent acquisition compensation expense, (f) merger transaction, integration and practice acquisition costs (g) reserve adjustments and (h) loss on disposal or impairment of long-lived assets, net. The Company uses Adjusted EBITDA as a measure of financial performance. Adjusted EBITDA is a key measure used by the Company’s management to assess operating performance, make business decisions and allocate resources. Non-controlling interests represent the interests of third parties, such as physicians, and in some cases, healthcare systems that own an interest in surgical facilities that the Company consolidates for financial reporting purposes. The Company believes that it is helpful to investors to present Adjusted EBITDA as defined above because it excludes the portion of net income attributable to these third-party interests and clarifies for investors the Company's portion of Adjusted EBITDA generated by its surgical facilities and other operations. Adjusted EBITDA is not a measurement of financial performance under GAAP, and should not be considered in isolation or as a substitute for net income, operating income or any other measure calculated in accordance with generally accepted accounting principles. The items excluded from Adjusted EBITDA are significant components in understanding and evaluating the Company's financial performance. The Company believes such adjustments are appropriate, as the magnitude and frequency of such items can vary significantly and are not related to the assessment of normal operating performance. The Company's calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.


⁽²⁾	This amount includes merger transaction and integration costs of $5.0 million and $0.3 million for the three months ended March 31, 2018 (Successor) and 2017 (Predecessor), respectively, and practice acquisition costs of $0.5 million and $0.3 million for the three months ended March 31, 2018 (Successor) and 2017 (Predecessor), respectively.


⁽³⁾	This amount represents adjustments to revenue in connection with applying consistent policies across the combined company as a result of the integration of Surgery Partners and NSH.



	Successor
	March 31, 2018		December 31, 2017
Assets:
Surgical facility services	$	4,086,822	$	4,072,521
Ancillary services	104,970		104,274
Optical services	50,984		48,309
All other	352,108		397,669
Total assets	$	4,594,884	$	4,622,773



	Three Months Ended March 31,
	2018		2017
	Successor		Predecessor
Cash purchases of property and equipment, net:
Surgical facility services	$	7,937	$	4,417
Ancillary services	185		1,511
Optical services	18		18
All other	1,843		404
Total cash purchases of property and equipment, net	$	9,983	$	6,350

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On May 1, 2018, the Company purchased an integrated physician practice, including five practice locations and three ASCs, in an existing market for a purchase price of $21.3 million. The Company funded the purchase price with cash flow from operations. As of the date of this filing, the Company has not completed its preliminary estimation of the fair values assigned to the assets acquired and liabilities assumed.

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, as well as interests in partnerships and limited liability companies controlled by the Company through its ownership of a majority voting interest or other rights granted to the Company by contract to manage and control the affiliate's business. All significant intercompany balances and transactions are eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for fair presentation of the Company's financial position and results of operations have been included. The Company’s fiscal year ends on December 31 and interim results are not necessarily indicative of results for a full year or any other interim period. The condensed consolidated balance sheet at December 31, 2017 (Successor) has been derived from the audited financial statements as of that date. The information contained in these condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the fiscal year ended December 31, 2017 (Successor). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Non-Controlling Interests	Non-Controlling Interests The physician limited partners and physician minority members of the entities that the Company controls are responsible for the supervision and delivery of medical services. The governance rights of limited partners and minority members are restricted to those that protect their financial interests. Under certain partnership and operating agreements governing these partnerships and limited liability companies, the Company could be removed as the sole general partner or managing member for certain events such as material breach of the partnership or operating agreement, gross negligence or bankruptcy. These protective rights do not preclude consolidation of the respective partnerships and limited liability companies. Ownership interests in consolidated subsidiaries held by parties other than the Company are identified and generally presented in the condensed consolidated financial statements within the equity section but separate from the Company's equity. However, in instances in which certain redemption features that are not solely within the control of the Company are present, classification of non-controlling interests outside of permanent equity is required. Consolidated net income attributable to the Company and to the non-controlling interests are identified and presented on the condensed consolidated statements of operations; changes in ownership interests in which the Company retains a controlling interest are accounted for as equity transactions assuming the Company continues to consolidate related entities. Certain transactions with non-controlling interests are classified within financing activities in the condensed consolidated statements of cash flows. The condensed consolidated financial statements of the Company include all assets, liabilities, revenues and expenses of surgical facilities in which the Company has sufficient ownership and rights to allow the Company to consolidate the surgical facilities. Similar to its investments in non-consolidated affiliates, the Company regularly engages in the purchase and sale of ownership interests with respect to its consolidated subsidiaries that do not result in a change of control. Non-Controlling Interests — Redeemable.
Variable Interest Entities	Variable Interest Entities The condensed consolidated financial statements include the accounts of variable interest entities in which the Company is the primary beneficiary under the provisions of ASC 810, Consolidation. As of both March 31, 2018 (Successor) and December 31, 2017 (Successor), the variable interest entities include five surgical facilities, three anesthesia practices and three physician practices. The Company has the power to direct the activities that most significantly impact a variable interest entity's economic performance. Additionally, the Company would absorb the majority of the expected losses from any of these entities should such expected losses occur.
Equity Method Investments	Equity Method Investments The Company has non-consolidating investments in surgical facilities and management companies that own or manage surgical facilities. These investments are accounted for using the equity method of accounting.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and footnotes. Examples include, but are not limited to, estimates of accounts receivable allowances, professional and general liabilities and the estimate of deferred tax assets or liabilities. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All adjustments are of a normal, recurring nature. Actual results could differ from those estimates.
Reclassifications	Reclassifications Certain reclassifications have been made to the comparative periods' financial statements to conform to the current year presentation.
Fair Value of Financial Instruments	The fair values of the Term Loan, 2021 Unsecured Notes and the 2025 Unsecured Notes (in each case, as defined in Note 4. Long-Term Debt) were based on a Level 2 inputs using quoted prices for identical liabilities in inactive markets at March 31, 2018 (Successor) and December 31, 2017 (Successor), as applicable. The carrying amounts related to the Company's other long-term debt obligations, including the Revolver (as defined in Note 4. Long-Term Debt), approximate their fair values. The Company maintains a supplemental executive retirement savings plan (the "SERP") for certain executive officers. The SERP is a non-qualified deferred compensation plan for eligible executive officers and other key employees of the Company that allows participants to defer portions of their compensation. Fair Value of Financial Instruments The fair value of a financial instrument is the amount at which the instrument could be exchanged in an orderly transaction between market participants to sell the asset or transfer the liability. The Company uses fair value measurements based on quoted prices in active markets for identical assets or liabilities (Level 1), inputs other than quoted prices in active markets that are either directly or indirectly observable (Level 2), or unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions (Level 3), depending on the nature of the item being valued. The carrying amounts reported in the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, restricted invested assets and accounts payable approximate their fair values.
Revenues	Revenues In May 2014, the Financial Accounting Standards Board ("FASB") issued a new standard related to revenue recognition. The Company adopted the new standard effective January 1, 2018, using the modified retrospective method. The adoption of the new standard did not have an impact on our recognition of net revenues for any periods prior to adoption. The majority of the “Provision for doubtful accounts” will continue to be recognized as an operating expense rather than as a direct reduction to revenues, given the Company’s practice of assessing a patient’s ability to pay prior to or on the date of providing healthcare services. After initial recognition, the Company’s accounts receivables are subject to impairment assessments periodically based on changes in credit risks using historical trends of cash collections, write-offs, accounts receivable agings and other factors. The Company's revenues generally relate to contracts with patients in which the performance obligations are to provide healthcare services. The Company recognizes revenues in the period in which our obligations to provide health care services are satisfied and reports the amount that reflects the consideration the Company expects to be entitled to. The Company's performance obligations are generally satisfied over a period of less than one day. The contractual relationships with patients, in most cases, also involve a third-party payer (Medicare, Medicaid, managed care health plans, employers and commercial insurance companies, including plans offered through the health insurance exchanges) and the transaction prices for the services provided are dependent upon the terms provided by (Medicare and Medicaid) or negotiated with (managed care health plans, employers and commercial insurance companies) the third-party payers. The payment arrangements with third-party payers for the services provided to the related patients typically specify payments at amounts less than the Company's standard charges. Medicare generally pays for services at prospectively determined rates based on clinical, diagnostic and other factors. Services provided to patients having Medicaid coverage are generally paid at prospectively determined rates per discharge, per identified service or per covered member. Agreements with commercial insurance carriers, managed care and preferred provider organizations generally provide for payments based upon predetermined rates per diagnosis, per diem rates or discounted fee-for-service rates. The Company continually reviews the contractual estimation process to consider and incorporate updates to laws and regulations and the frequent changes in managed care contractual terms resulting from contract renegotiations and renewals. Other service revenues. Optical service revenues consist of product sales from the Company's optical laboratories as well as handling charges billed to the members of the Company's optical products purchasing organization. The Company's optical products purchasing organization negotiates volume buying discounts with optical products manufacturers. The buying discounts and any handling charges billed to the members of the buying group represent the revenue recognized for financial reporting purposes. The Company satisfies the performance obligation and recognizes revenue when the orders are shipped to members. The Company bases its estimates for sales returns and discounts on historical experience and has not experienced significant fluctuations between estimated and actual return activity and discounts given. The Company's optical laboratories manufacture and distribute corrective lenses and eyeglasses to ophthalmologists and optometrists. The Company satisfies the performance obligation and recognize revenue when the product is shipped, net of allowance for discounts. Other revenues include management and administrative service fees derived from the non-consolidated facilities that the Company accounts for under the equity method, management of surgical facilities in which it does not own an interest, and management services provided to physician practices for which the Company is not required to provide capital or additional assets. These agreements typically require the Company to provide recurring management services over a multi-year period which are billed and collected on a monthly basis. The fees derived from these management arrangements are based on a predetermined percentage of the revenues of each facility or practice and are recognized in the period in which management services are rendered and billed. Patient service revenues. This includes revenue related to charging facility fees in exchange for providing patient care. The fee charged for healthcare procedures performed in surgical facilities varies depending on the type of service provided, but usually includes all charges for usage of an operating room, a recovery room, special equipment, medical supplies, nursing staff and medications. The fee does not normally include professional fees charged by the patient’s surgeon, anesthesiologist or other attending physician, which are billed directly by such physicians to the patient or third-party payor. However, in several surgical facilities, the Company charges for anesthesia services. Ancillary service revenues include fees for patient visits to the Company's physician practices, pharmacy services and diagnostic tests ordered by physicians. Patient service revenues are recognized as performance obligations are satisfied. Performance obligations are based on the nature of services provided. Typically, the Company recognizes revenue at a point in time in which services are rendered and the Company has no obligation to provide further patient services. As the Company primarily performs outpatient procedures, performance obligations are generally satisfied same day and revenue is recognized on the date of service. The Company determines the transaction price based on gross charges for services provided, net of estimated contractual adjustments, discounts from third-party payors, including Medicare and Medicaid. The Company estimates its contractual adjustments and discounts based on contr
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company maintains its cash and cash equivalent balances at high credit quality financial institutions. In accordance with the provisions of the operating lease agreement at the Company's Chesterfield, Missouri facility, the Company has a deposit with the landlord that shall be held as security for performance under the Company's covenants and obligations within the agreement through January 2024. The Company presents the restricted amount separate from cash and cash equivalents under the caption "restricted invested assets" in the condensed consolidated balance sheets.
Accounts Receivable and Allowances for Contractual Adjustments and Doubtful Accounts	Accounts Receivable and Allowances for Contractual Adjustments and Doubtful Accounts With the Company's adoption of ASC 2014-09 on January 1, 2018, for those accounts in which the Company has an unconditional right to payment, subject only to the passage of time, the right is recorded as a receivable. Accounts receivable are recorded net of contractual adjustments and allowances for doubtful accounts to reflect accounts receivable at net realizable value. Accounts receivable consists of receivables from federal and state agencies (under the Medicare and Medicaid programs), managed care health plans, commercial insurance companies, employers and patients. Management recognizes that revenues and receivables from government agencies are significant to the Company's operations, but it does not believe that there is significant credit risk associated with these government agencies. Concentration of credit risk with respect to other payors is limited because of the large number of such payors. The Company had a net third-party Medicaid settlements liability of $4.3 million and $1.0 million as of March 31, 2018 (Successor) and December 31, 2017 (Successor), respectively, included in other current liabilities in the condensed consolidated balance sheets. The Company recognizes that final reimbursement of accounts receivable is subject to final approval by each third-party payor. However, because the Company has contracts with its third-party payors and also verifies insurance coverage of the patient before medical services are rendered, the amounts that are pending approval from third-party payors are not considered significant. The Company's policy is to collect co-payments and deductibles prior to providing medical services. It is also the Company's policy to verify a patient’s insurance 72 hours prior to the patient’s procedure. Patient services of the Company are primarily non-emergency, which allows the surgical facilities to control the procedures for which third-party reimbursement is sought and obtained. The Company does not require collateral from self-pay patients. The Company analyzes accounts receivable at each of its facilities to ensure the proper aged category and collection assessment. At a consolidated level, the Company's policy is to review accounts receivable aging, by facility, to determine the appropriate allowance for doubtful accounts. Patient account balances are reviewed for delinquency based on contractual terms. This review is supported by an analysis of the actual revenues, contractual adjustments and cash collections received. An account balance is written off only after the Company has pursued collection with legal or collection agency assistance or otherwise has deemed an account to be uncollectible. The receivables related to the Company's optical products purchasing organization are recognized separately from patient accounts receivable, as discussed above, and are included in other current assets in the condensed consolidated balance sheets.
Inventories	Inventories Inventories, which consist primarily of medical and drug supplies, are stated at the lower of cost or market value. Cost is determined using the first-in, first-out method.
Property and Equipment	The Company also leases certain facilities and equipment under capital leases. Assets held under capital leases are stated at the present value of minimum lease payments at the inception of the related lease. Such assets are depreciated on a straight-line basis over the lesser of the lease term or the remaining useful life of the leased asset. Property and Equipment Property and equipment are stated at cost or, if obtained through acquisition, at fair value determined on the date of acquisition. Depreciation is recognized using the straight-line method over the estimated useful lives of the assets, generally 20 to 40 years for buildings and building improvements, three to five years for computers and software and five to seven years for furniture and equipment. Leasehold improvements are depreciated on a straight-line basis over the shorter of the lease term or the estimated useful life of the assets. Routine maintenance and repairs are expensed as incurred, while expenditures that increase capacities or extend useful lives are capitalized.
Goodwill and Intangible Assets	Intangible Assets The Company has indefinite-lived intangible assets related to the certificates of need held in jurisdictions where certain of its surgical facilities are located. The Company also has finite-lived intangible assets related to physician guarantee agreements, non-compete agreements, management agreements and customer relationships. Physician income guarantees are amortized into salaries and benefits costs in the condensed consolidated statements of operations over the commitment period of the contract, generally three to four years. Non-compete agreements and management rights agreements are amortized into depreciation and amortization expense in the condensed consolidated statements of operations over the service lives of the agreements, typically ranging from two to five years for non-compete agreements and fifteen years for the management rights agreements. Customer relationships are amortized into depreciation and amortization expense in the condensed consolidated statements of operations over the estimated lives of the relationships, ranging from three to ten years. Goodwill Goodwill represents the fair value of the consideration provided in an acquisition over the fair value of net assets acquired and is not amortized. Additions to goodwill include amounts resulting from new business combinations and incremental ownership purchases in the Company's subsidiaries.
Impairment of Long-Lived Assets, Goodwill and Intangible Assets	Impairment of Long-Lived Assets, Goodwill and Intangible Assets The Company evaluates the carrying value of long-lived assets when impairment indicators are present or when circumstances indicate that impairment may exist. The Company performs an impairment test by preparing an expected undiscounted cash flow projection. If the projection indicates that the recorded amount of the long-lived asset is not expected to be recovered, the carrying value is reduced to estimated fair value. The cash flow projection and fair value represents management’s best estimate, using appropriate and customary assumptions, projections and methodologies, at the date of evaluation. No impairment losses on long-lived assets were recognized during the three months ended March 31, 2018 (Successor) and three months ended March 31, 2017 (Predecessor). The Company tests its goodwill and indefinite-lived intangible assets for impairment at least annually, as of October 1, or more frequently if certain indicators arise. The Company tests for goodwill impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. The Company has determined that it has five reporting units, which include the following: 1) Surgical Facilities 2) Ancillary Services, 3) Midwest Labs, 4) The Alliance and 5) Family Vision Care. The Company compares the carrying value of the net assets of the reporting unit to the estimated fair value of the reporting unit. If the carrying value exceeds the estimated fair value, an impairment indicator exists and an estimate of the possible impairment loss is calculated. The fair value of the reporting units are estimated using a discounted cash flows approach and are corroborated using a market-based approach. The fair value calculation includes multiple assumptions and estimates, including the projected cash flows and discount rates applied.
Operating Leases	Operating Leases The Company leases office space and equipment for its surgical facilities, including surgical facilities under development. The lease agreements generally require the lessee, or the Company, to pay all maintenance, property taxes, utilities and insurance costs. The Company accounts for operating lease obligations and sublease income on a straight-line basis. Contingent obligations of the Company, as defined by each lease agreement, are recognized when specific contractual measures have been met, typically the result of an increase in the Consumer Price Index. Lease obligations paid in advance are recorded as prepaid rent and included in prepaid expenses and other current assets on the condensed consolidated balance sheets. The difference between actual lease payments and straight-line lease expense over the initial lease term, excluding optional renewal periods, is recorded as deferred rent and included in other current liabilities and other long-term liabilities on the condensed consolidated balance sheets.
Equity-Based Compensation	Equity-Based Compensation Transactions in which the Company receives employee and non-employee services in exchange for the Company’s equity instruments or liabilities that are based on the fair value of the Company’s equity securities or may be settled by the issuance of these securities are accounted for using a fair value method. In September 2015, the Company adopted the Surgery Partners, Inc. 2015 Omnibus Incentive Plan ("2015 Omnibus Incentive Plan") from which all equity-based awards will be granted. Under this plan, the Company can grant stock options, SARs, restricted stock, unrestricted stock, stock units, performance awards, cash awards and other awards convertible into or otherwise based on shares of its common stock. The Company applies the Black-Scholes-Merton method of valuation in determining share-based compensation expense for option awards. Application of this method includes assumptions such as expected stock price volatility, risk-free interest rate, expected dividends, and expected term. The fair values of time-based restricted stock units are based on the closing price of the Company’s common stock on the trading date immediately prior to the grant date. The fair values of performance-based restricted stock units are determined based on a combination, where applicable, of the closing price of the Company's common stock on the trading date immediately prior to the grant date for units subject to performance conditions, or at its Monte-Carlo simulation value for units subject to market conditions. For these restricted stock units, the number of shares payable at the end of the vesting periods is based on the Company’s actual performance and/or market conditions results as compared to the targets. The Company's policy is to recognize compensation expense using the straight line method over the relevant vesting period for units that vest based on time. The Company recognizes compensation expense for the portion of performance-based restricted stock units subject to market conditions even if the condition is never satisfied. However, if the performance conditions are not met for the portion of the performance-based restricted stock units subject to such performance conditions, no compensation expense will be recognized, and any previously recognized compensation expense will be reversed. Forfeitures are recognized as incurred. Equity-based compensation expense can vary in the future depending on many factors, including levels of forfeitures and whether performance targets are met and whether a liquidity event occurs.
Professional, General and Workers' Compensation Insurance	Professional, General and Workers' Compensation Insurance The Company maintains general liability and professional liability insurance in excess of self-insured retentions through third party commercial insurance carriers in amounts that management believes is sufficient for the Company's operations, although, potentially, some claims may exceed the scope of coverage in effect. The professional and general insurance coverage is on a claims-made basis. Workers' compensation insurance is on an occurrence basis. The Company expenses the costs under the self-insured retention exposure for general and professional liability and workers compensation claims which relate to (i) claims made during the policy period, which are offset by insurance recoveries and (ii) an estimate of claims incurred but not yet reported that are expected to be reported after the policy period expires. Reserves and provisions are based upon actuarially determined estimates. The reserves are estimated using individual case-basis valuations and actuarial analysis. Reserves for professional, general and workers' compensation claim liabilities are determined with no regard for expected insurance recoveries and are presented gross on the condensed consolidated balance sheets.
Income Taxes	Income Taxes The Company uses the asset and liability method to account for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. If a net operating loss ("NOL") or Section 163(j) interest (“163(j)”) carryforward exists, the Company makes a determination as to whether the NOL or 163(j) carryforward will be utilized in the future. A valuation allowance is established for certain carryforwards when their recoverability is deemed to be uncertain. The carrying value of the net deferred tax assets assumes that the Company will be able to generate sufficient future taxable income in certain tax jurisdictions, based on estimates and assumptions. If these estimates and related assumptions change in the future, the Company may be required to adjust its deferred tax valuation allowances. The Company and certain of its subsidiaries file a consolidated federal income tax return. The partnerships, limited liability companies, and certain non-consolidated physician practice corporations also file separate income tax returns. The Company's allocable portion of each partnership's and limited liability company's income or loss is included in taxable income of the Company. The remaining income or loss of each partnership and limited liability company is allocated to the other owners. The Company, or one or more of its subsidiaries, files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal income tax examinations for years prior to 2014 or state income tax examinations for years prior to 2013.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers," along with subsequent amendments, updates and an extension of the effective date (collectively the "New Revenue Standard"), which outlines a single comprehensive model for recognizing revenue and supersedes most existing revenue recognition guidance, including guidance specific to the healthcare industry. This five-step process will require significant management judgment in addition to changing the way many companies recognize revenue in their financial statements. The Company adopted this ASU on January 1, 2018 using the modified retrospective approach. The adoption of this standard did not have a significant impact on our recognition of net revenues for any period. Adoption of the standard resulted in the Company revising its related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases," which will require, among other items, lessees to recognize most leases as assets and liabilities on the balance sheet. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The Company believes the primary effect of adopting the new standard will be to record right-of-use assets and obligations for current operating leases. In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows – Restricted Cash," which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The Company adopted this ASU on January 1, 2018 and retrospectively applied the guidance to all periods presented in the condensed consolidated statement of cash flows. The retrospective application to prior periods had no impact on the Company's cash flows from operating, investing and financing activities as previously disclosed. The adoption of this ASU resulted in the modification of the Company's presentation of the reconciliation of beginning-of-period and end-of-period total amounts shown on the condensed consolidated statement of cash flows to include restricted cash as discussed under the heading "Cash and Cash Equivalents" above.
Business Combinations	The Company accounts for its business combinations in accordance with the fundamental requirements of the acquisition method of accounting and under the premise that an acquirer can be identified for each business combination. The acquirer is the entity that obtains control of one or more businesses in the business combination and the acquisition date is the date the acquirer achieves control. The assets acquired, liabilities assumed and any non-controlling interests in the acquired business at the acquisition date are recognized at their fair values as of that date, and the direct costs incurred in connection with the business combination are recorded and expensed separately from the business combination. Any goodwill recognized is determined as the excess of the fair value of the consideration conveyed plus the fair value of any non-controlling interests in the acquisition over the fair value of the net assets acquired. Acquisitions in which the Company is able to exert significant influence but does not have control are accounted for using the equity method. Acquired assets and assumed liabilities typically include, but are not limited to, fixed assets, intangible assets and professional liabilities. The valuations are based on appraisal reports, discounted cash flow analyses, actuarial analyses or other appropriate valuation techniques to determine the fair value of the assets acquired or liabilities assumed. Fair value attributable to non-controlling interests is based on a Level 3 computation using significant inputs that are not observable in the market. Key inputs used to determine the fair value include financial multiples used in the purchase of non-controlling interests, primarily from acquisitions of surgical facilities. Such multiples, based on earnings, are used as a benchmark for the discount to be applied for the lack of control or marketability. Fair value attributable to the property and equipment acquired is based on Level 3 computations using key inputs such as cost trend data and comparable asset sales. Fair value attributable to the intangible assets acquired is based on Level 3 computations using key inputs such as the Company's internally-prepared financial projections. Fair values assigned to acquired working capital are based on carrying amounts reported by the acquiree at the date of acquisition, which approximate their fair values. The preliminary estimated fair value assigned to goodwill is primarily attributable to the acquisitions favorable reputations in their markets, their market positions and their ability to deliver quality care with high patient satisfaction consistent with the Company's business model.

Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Rollforward of Non-Controlling Interests - Redeemable

A summary of activity related to the non-controlling interests—redeemable follows (in thousands):



Successor
Balance at December 31, 2017	$	299,316
Net income attributable to non-controlling interests—redeemable	6,738
Acquisition and disposal of shares of non-controlling interests, net—redeemable	16,058
Distributions to non-controlling interest—redeemable holders	(8,469		)
Balance at March 31, 2018	$	313,643

Schedule of Carrying Amounts and Fair Values of Debt

A summary of the carrying amounts and fair values of the Company's long-term debt follows (in thousands):



	Successor
	Carrying Amount				Fair Value
	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
2017 Senior Secured Credit Facilities:
Revolver	$	—	$	—	$	—	$	—
Term Loan	$	1,277,482	$	1,280,532	$	1,275,566	$	1,267,189
Senior Unsecured Notes due 2021	$	408,633	$	409,235	$	422,424	$	422,535
Senior Unsecured Notes due 2025	$	370,000	$	370,000	$	356,125	$	346,413

Schedule of Revenues by Service Type

A summary of revenues by service type as a percentage of total revenues follows:



	Three Months Ended March 31,
	2018		2017
	Successor		Predecessor
Patient service revenues:
Surgical facilities revenues	93.5	%	89.6	%
Ancillary services revenues	4.9	%	8.8	%
	98.4	%	98.4	%
Other service revenues:
Optical services revenues	0.7	%	1.0	%
Other revenues	0.9	%	0.6	%
	1.6	%	1.6	%
Total revenues	100.0	%	100.0	%

Schedule of Revenue Sources for Patient Service Revenues



	Three Months Ended March 31,
	2018				2017
	Successor				Predecessor
	Amount		%		Amount		%
Patient service revenues:
Private insurance	$	219,636	53.5	%	$	139,003	49.4	%
Government	159,347		38.8	%	116,878		41.5	%
Self-pay	12,970		3.1	%	6,071		2.2	%
Other ⁽¹⁾	18,793		4.6	%	19,694		6.9	%
Total patient service revenues	410,746		100.0	%	281,646		100.0	%
Other service revenues:
Optical services revenues	2,960				2,821
Other revenues	3,663				1,716
Total revenues	$	417,369			$	286,183


(1)	Other is comprised of anesthesia service agreements, auto liability, letters of protection and other payor types.

Schedule of Cash, Cash Equivalents and Restricted Cash



	Successor
	March 31, 2018		December 31, 2017

Cash and cash equivalents	$	112,816	$	174,914
Restricted invested assets	315		315
Total cash, cash equivalents and restricted cash in the statement of cash flows	$	113,131	$	175,229

Schedule of Prepaid Expenses and Other Current Assets

A summary of prepaid expenses and other current assets follows (in thousands):



	Successor
	March 31, 2018		December 31, 2017

Prepaid expenses	$	15,810	$	16,835
Receivables - optical product purchasing organization	10,259		7,563
Insurance recoveries	2,828		2,828
Other	25,427		28,111
Total	$	54,324	$	55,337

Schedule of Property and Equipment

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



	Successor
	March 31, 2018			December 31, 2017

Land	$	19,546		$	19,561
Buildings and improvements	193,942			188,571
Furniture and equipment	23,681			20,813
Computer and software	30,904			28,578
Medical equipment	137,956			138,112
Construction in progress	25,860			22,581
Property and equipment, at cost	431,889			418,216
Less: Accumulated depreciation	(31,504		)	(19,680		)
Property and equipment, net	$	400,385		$	398,536

Schedule of Finite-Lived Intangible Assets

A summary of the components of intangible assets follows (in thousands):



	Successor
	March 31, 2018							December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net

Finite-lived intangible assets:
Management rights agreements	$	42,600	$	(1,998	)	$	40,602	$	42,600	$	(1,058	)	$	41,542
Non-compete agreements	4,381		(1,102		)	3,279		4,874		(715		)	4,159
Physician income guarantees	878		(323		)	555		878		(227		)	651
Total finite-lived intangible assets	47,859		(3,423		)	44,436		48,352		(2,000		)	46,352
Indefinite-lived intangible assets:
Management rights agreements	11,000		—			11,000		5,900		—			5,900
Certificates of need	5,863		—			5,863		5,548		—			5,548
Medicare licenses	1,113		—			1,113		1,108		—			1,108
Total intangible assets	$	65,835	$	(3,423	)	$	62,412	$	60,908	$	(2,000	)	$	58,908

Schedule of Indefinite-Lived Intangible Assets

A summary of the components of intangible assets follows (in thousands):



	Successor
	March 31, 2018							December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net

Finite-lived intangible assets:
Management rights agreements	$	42,600	$	(1,998	)	$	40,602	$	42,600	$	(1,058	)	$	41,542
Non-compete agreements	4,381		(1,102		)	3,279		4,874		(715		)	4,159
Physician income guarantees	878		(323		)	555		878		(227		)	651
Total finite-lived intangible assets	47,859		(3,423		)	44,436		48,352		(2,000		)	46,352
Indefinite-lived intangible assets:
Management rights agreements	11,000		—			11,000		5,900		—			5,900
Certificates of need	5,863		—			5,863		5,548		—			5,548
Medicare licenses	1,113		—			1,113		1,108		—			1,108
Total intangible assets	$	65,835	$	(3,423	)	$	62,412	$	60,908	$	(2,000	)	$	58,908

Schedule of Rollforward of Goodwill

A summary of activity related to goodwill for the three months ended March 31, 2018 (Successor) follows (in thousands):



Successor
Balance at December 31, 2017	$	3,346,838
Acquisitions, including post acquisition adjustments	35,963
Balance at March 31, 2018	$	3,382,801

Schedule of Other Long-Term Assets

A summary of other long-term assets follows (in thousands):



	Successor
	March 31, 2018		December 31, 2017

Acquisition escrow deposit	$	20,471	$	19,600
Insurance recoveries	11,518		10,018
Other	20,390		18,732
Total	$	52,379	$	48,350

Schedule of Other Current Liabilities

A summary of other current liabilities follows (in thousands):



	Successor
	March 31, 2018		December 31, 2017

Interest payable	$	22,895	$	20,537
Amounts due to patients and payors	20,283		18,096
Insurance liabilities	9,843		9,873
Facility lease obligations	6,426		6,256
Current taxes payable	5,678		4,912
Accrued expenses and other	48,445		50,270
Total	$	113,570	$	109,944

Schedule of Other Long-Term Liabilities

A summary of other long-term liabilities follows (in thousands):



	Successor
	March 31, 2018		December 31, 2017

Facility lease obligations	$	119,239	$	121,627
Tax receivable agreement liability	44,930		43,791
Acquisition escrow liability	20,471		19,600
Medical malpractice liability	17,950		16,450
Other	30,934		21,012
Total	$	233,524	$	222,480

Acquisitions and Developments (Tables)

3 Months Ended

Mar. 31, 2018

Business Combinations [Abstract]

Schedule of Assets Acquired and Liabilities Assumed

The aggregate amounts preliminarily recognized for each major class of assets and liabilities assumed are as follows (in thousands):



Cash consideration	$	25,545
Fair value of non-controlling interests	17,287
Aggregate fair value of acquisitions	42,832

Current Assets	3,487
Property and equipment	1,905
Goodwill	38,539
Other long-term assets	1,155
Current liabilities	(1,254		)
Long-term liabilities	(1,000		)
Aggregate fair value allocated	$	42,832



Equity attributable to Surgery Partners, Inc.	$	720,606
Redeemable preferred stock	310,000
Fair value of non-controlling interests	957,027
Aggregate fair value	1,987,633
Net assets:
Cash and cash equivalents	214,206
Accounts receivable	253,147
Inventories	44,310
Prepaid expenses and other current assets	61,438
Property and equipment	380,085
Intangible assets	63,978
Goodwill	3,297,389
Investments in and advances to affiliates	75,113
Restricted invested assets	315
Long-term deferred tax asset	204,831
Other long-term assets	50,666
Accounts payable	(64,921		)
Accrued payroll and benefits	(54,437		)
Other current liabilities	(97,019		)
Current maturities of long-term debt	(49,942		)
Long-term debt, less current maturities	(2,142,375		)
Long-term tax receivable agreement liability	(78,498		)
Other long-term liabilities	(170,653		)
Total fair value of net assets	$	1,987,633

The aggregate amounts preliminarily recognized for each major class of assets and liabilities, including post acquisition date adjustments, are as follows (in thousands):



Cash consideration	$	762,850
Fair value of non-controlling interests	325,965
Aggregate fair value of acquisition	1,088,815
Net assets acquired:
Cash and cash equivalents	51,159
Accounts receivable	71,875
Inventories	14,986
Prepaid expenses and other current assets	18,367
Property and equipment	174,499
Intangible assets	27,881
Goodwill	869,090
Investments in and advances to affiliates	29,737
Long-term deferred tax assets	18,971
Other long-term assets	26,988
Accounts payable	(29,652		)
Accrued payroll and benefits	(28,755		)
Other current liabilities	(23,339		)
Current maturities of long-term debt	(16,416		)
Long-term debt, less current maturities	(42,770		)
Other long-term liabilities	(73,806		)
Total fair value of net assets acquired	$	1,088,815

Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Summary of long-term debt

A summary of long-term debt follows (in thousands):



	Successor
	March 31, 2018		December 31, 2017

2017 Senior Secured Credit Facilities:
Revolver	$	—	$	—
Term Loan ⁽¹⁾	1,277,482		1,280,532
Senior Unsecured Notes due 2021 ⁽²⁾	408,633		409,235
Senior Unsecured Notes due 2025	370,000		370,000
Notes payable and secured loans	94,253		101,921
Capital lease obligations	26,465		27,594
Total debt	2,176,833		2,189,282
Less: Current maturities	54,386		58,726
Total long-term debt	$	2,122,447	$	2,130,556

⁽¹⁾ Includes unamortized fair value discount of $6.1 million as of March 31, 2018 and $6.2 million as of December 31, 2017. See further discussion below.

⁽²⁾ Includes unamortized fair value premium of $8.6 million as of March 31, 2018 and $9.2 million as of December 31, 2017. See further discussion below.

Debt redemption percentages

The Company may redeem the 2021 Unsecured Notes, in whole or in part, at any time on or after April 15, 2018, at the redemption prices set forth below (expressed as a percentage of the principal amount to be redeemed), plus accrued and unpaid interest, if any, to the date of redemption:



April 15, 2018 to April 14, 2019	106.656	%
April 15, 2019 to April 14, 2020	104.438	%
April 15, 2020 and thereafter	100.000	%

The Company may redeem the 2025 Unsecured Notes, in whole or in part, at any time on or after July 1, 2020, at the redemption prices set forth below (expressed as a percentage of the principal amount to be redeemed), plus accrued and unpaid interest, if any, to, but excluding, the date of redemption:



July 1, 2020 to June 30, 2021	103.375	%
July 1, 2021 to June 30, 2022	101.688	%
July 1, 2022 and thereafter	100.000	%

Redeemable Preferred Stock (Tables)

3 Months Ended

Mar. 31, 2018

Temporary Equity Disclosure [Abstract]

A summary of activity related to the redeemable preferred stock follows (in thousands):



Successor
Balance at December 31, 2017	$	330,806
Dividends accrued	7,772
Cash dividends declared	(3,886		)
Balance at March 31, 2018	$	334,692

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

A reconciliation of the numerator and denominator of basic and diluted earnings per share follows (in thousands except share and per share amounts):



	Three Months Ended March 31,
	2018			2017
	Successor			Predecessor

Numerator:
Net loss attributable to Surgery Partners, Inc.	$	(17,521	)	$	(2,754	)
Less: amounts allocated to participating securities ⁽¹⁾	7,772			—
Net loss attributable to common stockholders	$	(25,293	)	$	(2,754	)

Denominator:
Weighted average shares outstanding- basic	48,006,870			48,019,652
Effect of dilutive securities ⁽²⁾	—			—
Weighted average shares outstanding- diluted	48,006,870			48,019,652

Loss per share:
Basic	$	(0.53	)	$	(0.06	)
Diluted ⁽²⁾	$	(0.53	)	$	(0.06	)

Dilutive securities outstanding not included in the computation of (loss) earnings per share as their effect is antidilutive:
Stock options	123,410			851
Restricted shares	58,244			132,485
Convertible preferred stock	—			N/A


⁽¹⁾	Includes dividends accrued during the three months ended March 31, 2018 (Successor) for the Series A Preferred Stock. The Series A Preferred Stock does not participate in undistributed losses. There were no participating securities during the Predecessor period.


⁽²⁾	The impact of potentially dilutive securities for both periods presented was not considered because the effect would be anti-dilutive in each period.

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated

The following tables present financial information for each reportable segment (in thousands):



	Three Months Ended March 31,
	2018		2017
	Successor		Predecessor
Revenues:
Surgical facility services	$	394,066	$	258,149
Ancillary services	20,344		25,212
Optical services	2,959		2,822
Total revenues	$	417,369	$	286,183

Schedule of Segment Operating Income



	Three Months Ended March 31,
	2018			2017
	Successor			Predecessor
Adjusted EBITDA:
Surgical facility services	$	66,467		$	48,241
Ancillary services	1,054			3,782
Optical services	825			776
All other	(21,269		)	(12,692		)
Total Adjusted EBITDA ⁽¹⁾	47,077			40,107

Net income attributable to non-controlling interests	22,646			17,176
Depreciation and amortization	(15,749		)	(11,108		)
Interest expense, net	(34,276		)	(25,182		)
Non-cash stock compensation expense	(1,997		)	(634		)
Contingent acquisition compensation expense	(503		)	(2,033		)
Merger transaction, integration and practice acquisition costs ⁽²⁾	(5,485		)	(591		)
Reserve adjustments ⁽³⁾	(4,779		)	—
Loss on disposal or impairment of long-lived assets, net	(47		)	(1,196		)
Income before income taxes	$	6,887		$	16,539

⁽¹⁾


⁽²⁾	This amount includes merger transaction and integration costs of $5.0 million and $0.3 million for the three months ended March 31, 2018 (Successor) and 2017 (Predecessor), respectively, and practice acquisition costs of $0.5 million and $0.3 million for the three months ended March 31, 2018 (Successor) and 2017 (Predecessor), respectively.


⁽³⁾	This amount represents adjustments to revenue in connection with applying consistent policies across the combined company as a result of the integration of Surgery Partners and NSH.

Reconciliation of Assets from Segment to Consolidated



	Successor
	March 31, 2018		December 31, 2017
Assets:
Surgical facility services	$	4,086,822	$	4,072,521
Ancillary services	104,970		104,274
Optical services	50,984		48,309
All other	352,108		397,669
Total assets	$	4,594,884	$	4,622,773

Schedule of Other Segment Reporting Information



	Three Months Ended March 31,
	2018		2017
	Successor		Predecessor
Cash purchases of property and equipment, net:
Surgical facility services	$	7,937	$	4,417
Ancillary services	185		1,511
Optical services	18		18
All other	1,843		404
Total cash purchases of property and equipment, net	$	9,983	$	6,350

Organization (Details)	Aug. 31, 2017 $ / shares shares	Oct. 01, 2015 $ / shares shares	Mar. 31, 2018 surgical_facility state shares	Dec. 31, 2017 shares	Sep. 30, 2015 shares
Product Information [Line Items]
Common stock, shares issued (shares) \| shares			48,898,004	48,687,136
Number of States in which entity operates \| state			32
Number of surgical facilities owned \| surgical_facility			125
Number of surgical facilities owned, majority interest \| surgical_facility			85
Number of surgical facilities owned, consolidated \| surgical_facility			108
Facilities, Ambulatory Surgery Centers
Product Information [Line Items]
Number of surgical facilities owned \| surgical_facility			107
Facilities, Surgical Hospitals
Product Information [Line Items]
Number of surgical facilities owned \| surgical_facility			18
IPO
Product Information [Line Items]
Stock issued during period (shares) \| shares		14,285,000
Share price (in USD per share) \| $ / shares		$ 19.00
Surgery Center Holdings, LLC
Product Information [Line Items]
Common stock, shares issued (shares) \| shares					33,871,990
BCPE Seminole Holdings LP \| Majority Shareholder
Product Information [Line Items]
Stock expected to be sold by investor (in shares) \| shares	26,455,651
Stock expected to be sold by investor, price per share (in USD per share) \| $ / shares	$ 19.00
Voting interests acquired	65.70%
BCPE Seminole Holdings LP \| Common Stock \| Majority Shareholder
Product Information [Line Items]
Voting interests acquired	54.20%
BCPE Seminole Holdings LP \| Preferred Class A \| Preferred Stock
Product Information [Line Items]
Stock issued during period (shares) \| shares	310,000
Preferred stock dividend rate	10.00%
Purchase price per share (in USD per share) \| $ / shares	$ 1,000

Significant Accounting Policies - Schedule of Non-Controlling Interests - Redeemable (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Non-Controlling Interests - Redeemable [Roll Forward]
Beginning balance	$ 299,316
Net income attributable to non-controlling interests—redeemable	6,738
Acquisition and disposal of shares of non-controlling interests, net—redeemable	16,058
Distributions to non-controlling interest—redeemable holders	(8,469)
Ending balance	$ 313,643

Significant Accounting Policies - Variable Interest Entities (Details) $ in Millions	Mar. 31, 2018 Anesthesia_Practice	Mar. 31, 2018 surgical_facility	Mar. 31, 2018 Practice	Mar. 31, 2018 USD ($)	Dec. 31, 2017 Anesthesia_Practice	Dec. 31, 2017 surgical_facility	Dec. 31, 2017 Practice	Dec. 31, 2017 USD ($)
Variable Interest Entity [Line Items]
Number of facilities included in VIE	3	5	3		3	5	3
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure
Variable Interest Entity [Line Items]
Total assets related to VIE				$ 14.1				$ 13.1
Total liabilities related to VIE				$ 5.8				$ 5.8

Significant Accounting Policies - Equity Method Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Investments in and advances to affiliates	$ 75,194	$ 74,282

Significant Accounting Policies - Schedule of Carrying Amount and Fair Value of Financial Instruments (Details) - Senior Notes - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Senior Unsecured Notes Due 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 408,633	$ 409,235
Senior Unsecured Notes Due 2021 \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	408,633	409,235
Senior Unsecured Notes Due 2021 \| Fair Value \| Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	422,424	422,535
Senior Unsecured Notes Due 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	370,000	370,000
Senior Unsecured Notes Due 2025 \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	370,000	370,000
Senior Unsecured Notes Due 2025 \| Fair Value \| Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	356,125	346,413
Revolving Credit Facility \| 2017 Senior Secured Credit Facility - Revolver \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	0	0
Revolving Credit Facility \| 2017 Senior Secured Credit Facility - Revolver \| Fair Value \| Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	0	0
Revolving Credit Facility \| 2017 Senior Secured Credit Facility - Term Loan \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	1,277,482	1,280,532
Revolving Credit Facility \| 2017 Senior Secured Credit Facility - Term Loan \| Fair Value \| Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 1,275,566	$ 1,267,189

Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets of SERP	$ 1.9	$ 1.9

Significant Accounting Policies - Schedule of Revenues by Service Type (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue from External Customer [Line Items]
Increase of revenue as result of changes in estimates to third-party settlements related to prior years	$ 0
Revenue Source \| Revenue
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	100.00%
Revenue Source \| Revenue \| Healthcare Organization, Patient Service
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	98.40%
Revenue Source \| Revenue \| Surgical Facility Services
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	93.50%
Revenue Source \| Revenue \| Ancillary Services
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	4.90%
Revenue Source \| Revenue \| Healthcare Organization, Other Service
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	1.60%
Revenue Source \| Revenue \| Optical Services
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	0.70%
Revenue Source \| Revenue \| Other
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	0.90%
Predecessor
Revenue from External Customer [Line Items]
Increase of revenue as result of changes in estimates to third-party settlements related to prior years		$ 400,000
Predecessor \| Revenue Source \| Revenue
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues		100.00%
Predecessor \| Revenue Source \| Revenue \| Healthcare Organization, Patient Service
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues		98.40%
Predecessor \| Revenue Source \| Revenue \| Surgical Facility Services
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues		89.60%
Predecessor \| Revenue Source \| Revenue \| Ancillary Services
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues		8.80%
Predecessor \| Revenue Source \| Revenue \| Healthcare Organization, Other Service
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues		1.60%
Predecessor \| Revenue Source \| Revenue \| Optical Services
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues		1.00%
Predecessor \| Revenue Source \| Revenue \| Other
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues		0.60%

Significant Accounting Policies - Schedule of Revenues by Sources (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Sep. 30, 2017	Mar. 31, 2018	Mar. 31, 2017
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total net revenues		$ 417,369
Healthcare Organization, Patient Service
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Patient service revenues		$ 410,746
Healthcare Organization, Patient Service \| Customer \| Revenue
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Service revenues as a percentage of total revenues		100.00%
Healthcare Organization, Patient Service \| Private insurance
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Patient service revenues		$ 219,636
Healthcare Organization, Patient Service \| Private insurance \| Customer \| Revenue
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Service revenues as a percentage of total revenues		53.50%
Healthcare Organization, Patient Service \| Government
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Patient service revenues	$ 159,347
Healthcare Organization, Patient Service \| Government \| Customer \| Revenue
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Service revenues as a percentage of total revenues		38.80%
Healthcare Organization, Patient Service \| Self-pay
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Patient service revenues		$ 12,970
Healthcare Organization, Patient Service \| Self-pay \| Customer \| Revenue
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Service revenues as a percentage of total revenues		3.10%
Healthcare Organization, Patient Service \| Other
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Patient service revenues		$ 18,793
Healthcare Organization, Patient Service \| Other \| Customer \| Revenue
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Service revenues as a percentage of total revenues		4.60%
Optical Services
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Other service revenues		$ 2,960
Other
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Other service revenues		$ 3,663
Predecessor
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total net revenues			$ 286,183
Predecessor \| Healthcare Organization, Patient Service
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Patient service revenues			$ 281,646
Predecessor \| Healthcare Organization, Patient Service \| Customer \| Revenue
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Service revenues as a percentage of total revenues			100.00%
Predecessor \| Healthcare Organization, Patient Service \| Private insurance
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Patient service revenues			$ 139,003
Predecessor \| Healthcare Organization, Patient Service \| Private insurance \| Customer \| Revenue
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Service revenues as a percentage of total revenues			49.40%
Predecessor \| Healthcare Organization, Patient Service \| Government
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Patient service revenues			$ 116,878
Predecessor \| Healthcare Organization, Patient Service \| Government \| Customer \| Revenue
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Service revenues as a percentage of total revenues			41.50%
Predecessor \| Healthcare Organization, Patient Service \| Self-pay
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Patient service revenues			$ 6,071
Predecessor \| Healthcare Organization, Patient Service \| Self-pay \| Customer \| Revenue
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Service revenues as a percentage of total revenues			2.20%
Predecessor \| Healthcare Organization, Patient Service \| Other
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Patient service revenues			$ 19,694
Predecessor \| Healthcare Organization, Patient Service \| Other \| Customer \| Revenue
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Service revenues as a percentage of total revenues			6.90%
Predecessor \| Optical Services
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Other service revenues			$ 2,821
Predecessor \| Other
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Other service revenues			$ 1,716

Significant Accounting Policies - Cash and Restricted Cash Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 112,816	$ 174,914
Restricted invested assets	315	315
Total cash, cash equivalents and restricted cash in the statement of cash flows	$ 113,131	$ 175,229

Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Third-Party Medicaid settlement liability	$ 4,300	$ 1,000
Optical products receivable	$ 10,259	$ 7,563

Significant Accounting Policies - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses	$ 15,810	$ 16,835
Receivables - optical product purchasing organization	10,259	7,563
Insurance recoveries	2,828	2,828
Other	25,427	28,111
Total	$ 54,324	$ 55,337

Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Schedule of Property, Plant and Equipment
Property and equipment, gross	$ 431,889	$ 418,216
Less: accumulated depreciation	(31,504)	(19,680)
Property and equipment, net	400,385	398,536
Carrying value of assets under capital lease	19,100	16,200
Accumulated depreciation of assets under capital lease	(7,400)	(5,800)
Land
Schedule of Property, Plant and Equipment
Property and equipment, gross	19,546	19,561
Buildings and improvements
Schedule of Property, Plant and Equipment
Property and equipment, gross	$ 193,942	188,571
Buildings and improvements \| Minimum
Property, Plant and Equipment [Line Items]
Property, and equipment useful life	20 years
Buildings and improvements \| Maximum
Property, Plant and Equipment [Line Items]
Property, and equipment useful life	40 years
Furniture and equipment
Schedule of Property, Plant and Equipment
Property and equipment, gross	$ 23,681	20,813
Furniture and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, and equipment useful life	5 years
Furniture and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, and equipment useful life	7 years
Computer and software
Schedule of Property, Plant and Equipment
Property and equipment, gross	$ 30,904	28,578
Computer and software \| Minimum
Property, Plant and Equipment [Line Items]
Property, and equipment useful life	3 years
Computer and software \| Maximum
Property, Plant and Equipment [Line Items]
Property, and equipment useful life	5 years
Medical equipment
Schedule of Property, Plant and Equipment
Property and equipment, gross	$ 137,956	138,112
Construction in progress
Schedule of Property, Plant and Equipment
Property and equipment, gross	$ 25,860	$ 22,581

Significant Accounting Policies - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Finite-lived intangible assets:
Gross Carrying Amount	$ 47,859	$ 48,352
Accumulated Amortization	(3,423)	(2,000)
Net	44,436	46,352
Total intangible assets, Gross	65,835	60,908
Total intangible assets, Net	62,412	58,908
Management rights agreements
Finite-lived intangible assets:
Indefinite-lived intangible assets	11,000	5,900
Certificates of Need
Finite-lived intangible assets:
Indefinite-lived intangible assets	5,863	5,548
Medicare licenses
Finite-lived intangible assets:
Indefinite-lived intangible assets	1,113	1,108
Physician income guarantees
Finite-lived intangible assets:
Gross Carrying Amount	878	878
Accumulated Amortization	(323)	(227)
Net	$ 555	651
Physician income guarantees \| Minimum
Intangible Assets [Line Items]
Intangible asset useful life	3 years
Physician income guarantees \| Maximum
Intangible Assets [Line Items]
Intangible asset useful life	4 years
Non-compete agreements
Finite-lived intangible assets:
Gross Carrying Amount	$ 4,381	4,874
Accumulated Amortization	(1,102)	(715)
Net	$ 3,279	4,159
Non-compete agreements \| Minimum
Intangible Assets [Line Items]
Intangible asset useful life	2 years
Non-compete agreements \| Maximum
Intangible Assets [Line Items]
Intangible asset useful life	5 years
Management rights agreements
Intangible Assets [Line Items]
Intangible asset useful life	15 years
Finite-lived intangible assets:
Gross Carrying Amount	$ 42,600	42,600
Accumulated Amortization	(1,998)	(1,058)
Net	$ 40,602	$ 41,542
Customer Relationships \| Minimum
Intangible Assets [Line Items]
Intangible asset useful life	3 years
Customer Relationships \| Maximum
Intangible Assets [Line Items]
Intangible asset useful life	10 years

Significant Accounting Policies - Rollforward of Goodwill and Information on Impairments (Details) - USD ($)		3 Months Ended
	Oct. 01, 2017	Mar. 31, 2018	Mar. 31, 2017
Goodwill [Roll Forward]
Goodwill, beginning of period		$ 3,346,838,000
Acquisitions, including post acquisition adjustments		35,963,000
Goodwill, end of period		3,382,801,000
Impairment losses on long-lived assets		$ 0	$ 0
Goodwill impairment	$ 0

Significant Accounting Policies - Schedule of Other Long-Term Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Acquisition escrow deposit	$ 20,471	$ 19,600
Insurance recoveries	11,518	10,018
Other	20,390	18,732
Total	$ 52,379	$ 48,350

Significant Accounting Policies - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interest payable	$ 22,895	$ 20,537
Amounts due to patients and payors	20,283	18,096
Insurance liabilities	9,843	9,873
Facility lease obligations	6,426	6,256
Current taxes payable	5,678	4,912
Accrued expenses and other	48,445	50,270
Total	$ 113,570	$ 109,944

Significant Accounting Policies - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Facility lease obligations	$ 119,239	$ 121,627
Tax receivable agreement liability	44,930	43,791
Acquisition escrow liability	20,471	19,600
Medical malpractice liability	17,950	16,450
Other	30,934	21,012
Total	$ 233,524	$ 222,480

Significant Accounting Policies - Professional, General and Workers' Compensation Insurance (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Professional, general and workers' compensation insurance reserve	$ 22.4	$ 21.0
Estimated insurance recoveries	$ 14.3	$ 12.8

Acquisitions and Developments - Additional Information (Details) $ in Thousands		3 Months Ended
	Aug. 31, 2017 USD ($)	Mar. 31, 2018 USD ($) surgical_facility	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Business Acquisition [Line Items]
Payments for acquisitions, net of cash acquired		$ 25,589
Acquisition escrow deposit		20,471		$ 19,600
HIG \| Bain Capital
Business Acquisition [Line Items]
Business acquisition total purchase price	$ 1,987,633
Net increase (decrease) to goodwill		$ (2,500)
Surgical Facility
Business Acquisition [Line Items]
Number of businesses acquired \| surgical_facility		1
Business acquisition total purchase price		$ 25,600
NSH
Business Acquisition [Line Items]
Net increase (decrease) to goodwill		$ (1,200)
Predecessor
Business Acquisition [Line Items]
Payments for acquisitions, net of cash acquired			$ 275
Predecessor \| NSH
Business Acquisition [Line Items]
Payments for acquisitions, net of cash acquired	711,700
Acquisition escrow deposit	$ 19,600

Acquisitions and Developments - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands		3 Months Ended
	Aug. 31, 2017	Mar. 31, 2018	Dec. 31, 2017
Net assets acquired:
Goodwill		$ 3,382,801	$ 3,346,838
Bain Capital \| HIG
Business Acquisition [Line Items]
Equity attributable to Surgery Partners, Inc.	$ 720,606
Redeemable preferred stock	310,000
Fair value of non-controlling interests	957,027
Aggregate fair value	1,987,633
Net assets acquired:
Cash and cash equivalents	214,206
Accounts receivable	253,147
Inventories	44,310
Prepaid expenses and other current assets	61,438
Property and equipment	380,085
Intangible assets	63,978
Goodwill	3,297,389
Investments in and advances to affiliates	75,113
Restricted invested assets	315
Long-term deferred tax assets	204,831
Other long-term assets	50,666
Accounts payable	(64,921)
Accrued payroll and benefits	(54,437)
Other current liabilities	(97,019)
Current maturities of long-term debt	(49,942)
Long-term debt, less current maturities	(2,142,375)
Long-term tax receivable agreement liability	(78,498)
Other long-term liabilities	(170,653)
Total fair value of net assets acquired	1,987,633
Surgical Facility
Business Acquisition [Line Items]
Cash consideration		25,545
Fair value of non-controlling interests		17,287
Aggregate fair value of acquisition		42,832
Aggregate fair value		25,600
Net assets acquired:
Current Assets		3,487
Property and equipment		1,905
Goodwill		38,539
Other long-term assets		1,155
Current liabilities		(1,254)
Long-term liabilities		(1,000)
Total fair value of net assets acquired		$ 42,832
Predecessor \| NSH
Business Acquisition [Line Items]
Cash consideration	762,850
Fair value of non-controlling interests	325,965
Aggregate fair value of acquisition	1,088,815
Net assets acquired:
Cash and cash equivalents	51,159
Accounts receivable	71,875
Inventories	14,986
Prepaid expenses and other current assets	18,367
Property and equipment	174,499
Intangible assets	27,881
Goodwill	869,090
Investments in and advances to affiliates	29,737
Long-term deferred tax assets	18,971
Other long-term assets	26,988
Accounts payable	(29,652)
Accrued payroll and benefits	(28,755)
Other current liabilities	(23,339)
Current maturities of long-term debt	(16,416)
Long-term debt, less current maturities	(42,770)
Other long-term liabilities	(73,806)
Total fair value of net assets acquired	$ 1,088,815

Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Capital lease obligations	$ 26,465	$ 27,594
Debt and capital lease obligations	2,176,833	2,189,282
Less: Current maturities	54,386	58,726
Total long-term debt	2,122,447	2,130,556
Unamortized fair value discount	6,100	6,200
Unamortized fair value premium	8,600	9,200
Secured Debt \| 2017 Senior Secured Credit Facility - Term Loan
Debt Instrument [Line Items]
Long-term debt	1,277,482	1,280,532
Secured Debt \| Revolving Credit Facility \| 2017 Senior Secured Credit Facility - Revolver
Debt Instrument [Line Items]
Long-term debt	0	0
Senior Notes \| Senior Unsecured Notes Due 2021
Debt Instrument [Line Items]
Long-term debt	408,633	409,235
Senior Notes \| Senior Unsecured Notes Due 2025
Debt Instrument [Line Items]
Long-term debt	370,000	370,000
Notes payable and secured loans
Debt Instrument [Line Items]
Long-term debt	$ 94,253	$ 101,921

Long-Term Debt - 2017 Senior Secured Credit Facilities (Details) - USD ($)		3 Months Ended
	Aug. 31, 2017	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Debt fair value discount		$ 6,100,000	$ 6,200,000
2017 Senior Secured Credit Facility - Term Loan \| Secured Debt
Debt Instrument [Line Items]
Debt repayment threshold	50.00%
Quarterly maturity installments		0.25%
Debt issuance costs and discount		$ 18,800,000
2017 Senior Secured Credit Facility - Term Loan \| Secured Debt \| Fair Value, Inputs, Level 2
Debt Instrument [Line Items]
Debt fair value discount	$ 6,500,000
2017 Senior Secured Credit Facility - Term Loan \| Secured Debt \| Predecessor
Debt Instrument [Line Items]
Debt, face amount	$ 1,290,000,000
2017 Senior Secured Credit Facility - Revolver \| Secured Debt \| Revolving Credit Facility
Debt Instrument [Line Items]
Debt remaining borrowing capacity		$ 71,900,000
Debt repayment threshold	50.00%
Unused commitment fee		0.50%
Net leverage ratio		9.50
Total commitment threshold		35.00%
Debt issuance costs and discount		$ 9,400,000
2017 Senior Secured Credit Facility - Revolver \| Secured Debt \| Letters of Credit
Debt Instrument [Line Items]
Debt remaining borrowing capacity		$ 3,137,000
2017 Senior Secured Credit Facility - Revolver \| Secured Debt \| Predecessor \| Revolving Credit Facility
Debt Instrument [Line Items]
Debt, face amount	$ 75,000,000
2017 Senior Secured Credit Facilities \| Secured Debt \| Federal Funds Effective Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.50%
2017 Senior Secured Credit Facilities \| Secured Debt \| One Month LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.00%
2017 Senior Secured Credit Facilities \| Secured Debt \| Base Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		2.00%
2017 Senior Secured Credit Facilities \| Secured Debt \| Minimum \| LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		3.00%
2017 Senior Secured Credit Facilities \| Secured Debt \| Minimum \| Base Rate
Debt Instrument [Line Items]
Debt instrument, margin in addition to base rate		2.00%
2017 Senior Secured Credit Facilities \| Secured Debt \| Maximum \| LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		3.25%
2017 Senior Secured Credit Facilities \| Secured Debt \| Maximum \| Base Rate
Debt Instrument [Line Items]
Debt instrument, margin in addition to base rate		2.25%

Long-Term Debt - Senior Unsecured Notes Due 2021 (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2016
Debt Instrument [Line Items]
Unamortized fair value premium	$ 8,600,000	$ 9,200,000
Senior Notes \| Senior Unsecured Notes Due 2021
Debt Instrument [Line Items]
Debt instrument, stated rate	8.875%
Debt issuance costs	$ 8,400,000
Senior Notes \| Senior Unsecured Notes Due 2021 \| Redemption Period One
Debt Instrument [Line Items]
Debt instrument, redeemable percentage of aggregate principal	35.00%
Redemption price, percentage of principal, proceeds from equity offerings	108.875%
Required remaining principal balance, after redemption	50.00%
Debt redemption, required period after closing of equity offering	180 days
Redemption price, percentage of principal	100.00%
Senior Notes \| Senior Unsecured Notes Due 2021 \| April 15, 2018 to April 14, 2019
Debt Instrument [Line Items]
Redemption price, percentage of principal	106.656%
Senior Notes \| Senior Unsecured Notes Due 2021 \| April 15, 2019 to April 14, 2020
Debt Instrument [Line Items]
Redemption price, percentage of principal	104.438%
Senior Notes \| Senior Unsecured Notes Due 2021 \| April 15, 2020 and thereafter
Debt Instrument [Line Items]
Redemption price, percentage of principal	100.00%
Senior Notes \| Senior Unsecured Notes Due 2021 \| Change in control
Debt Instrument [Line Items]
Redemption price, percentage of principal	101.00%
Predecessor \| Senior Notes \| Senior Unsecured Notes Due 2021
Debt Instrument [Line Items]
Debt, face amount			$ 400,000,000.0
Fair Value, Inputs, Level 2 \| Senior Notes \| Senior Unsecured Notes Due 2021
Debt Instrument [Line Items]
Unamortized fair value premium	$ 10,000,000

Long-Term Debt - Senior Unsecured Notes Due 2025 (Details) - Senior Notes - Senior Unsecured Notes Due 2025 - USD ($)	3 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Debt Instrument [Line Items]
Debt instrument, stated rate	6.75%
Debt issuance costs	$ 17,300,000
Redemption Period One
Debt Instrument [Line Items]
Debt instrument, redeemable percentage of aggregate principal	40.00%
Redemption price, percentage of principal, proceeds from equity offerings	106.75%
Required remaining principal balance, after redemption	50.00%
Debt redemption, required period after closing of equity offering	180 days
Redemption price, percentage of principal	100.00%
July 1, 2020 to June 30, 2021
Debt Instrument [Line Items]
Redemption price, percentage of principal	103.375%
July 1, 2021 to June 30, 2022
Debt Instrument [Line Items]
Redemption price, percentage of principal	101.688%
July 1, 2022 and thereafter
Debt Instrument [Line Items]
Redemption price, percentage of principal	100.00%
Change in control
Debt Instrument [Line Items]
Redemption price, percentage of principal	101.00%
Predecessor
Debt Instrument [Line Items]
Debt, face amount		$ 370,000,000.0

Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Capital leased assets	$ 19,100	$ 16,200
Notes payable and secured loans
Debt Instrument [Line Items]
Long-term debt, carrying value	$ 94,253	$ 101,921

Redeemable Preferred Stock (Details) $ / shares in Units, $ in Thousands		3 Months Ended
	Aug. 31, 2017 USD ($) trading_days $ / shares shares	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($) $ / shares	Dec. 31, 2017 USD ($)
Increase (Decrease) in Temporary Equity [Roll Forward]
12/31/2017		$ 330,806
Dividends accrued		7,772
Cash dividends declared		(3,886)
3/31/2018		334,692
Dividends payable		$ 3,900		$ 3,900
Preferred Stock
Increase (Decrease) in Temporary Equity [Roll Forward]
Cumulative preferred dividends			$ 13,000
Preferred dividends payable (in USD per share) \| $ / shares			$ 41.97
Series A Preferred Stock
Temporary Equity [Line Items]
Preferred stock dividend rate	10.00%
Trading days \| trading_days	20
Consecutive trading days \| trading_days	30
Threshold share price (in USD per share) \| $ / shares	$ 42.00
Maximum cash dividend declarable	50.00%
Redemption price (in USD per share) \| $ / shares	$ 1,000.00
Series A Preferred Stock \| Common Stock
Temporary Equity [Line Items]
Share price (in USD per share) \| $ / shares	$ 19.00
Predecessor \| NSH
Temporary Equity [Line Items]
Deferred equity issuance costs	$ 18,300
Majority Shareholder \| Series A Preferred Stock
Temporary Equity [Line Items]
Stock issued during period (shares) \| shares	310,000
Purchase price per share (in USD per share) \| $ / shares	$ 1,000
Proceeds from issuance of preferred shares	$ 310,000

Earnings Per Share (Details) - USD ($)

3 Months Ended

Mar. 31, 2018

Mar. 31, 2017

Dec. 15, 2017

Numerator:

Less: amounts allocated to participating securities

$ (17,521,000)

^[1]

7,772,000

$ 0

Weighted average shares outstanding- basic (shares)

$ (25,293,000)

(2,754,000)

Denominator:

48,006,870

Effect of dilutive securities (shares)

Weighted average shares outstanding- diluted (shares)

^[2]

48,006,870

$ (0.53)

Authorized share repurchase amount

^[2]

$ (0.53)

$ 50,000,000.0

Stock repurchased (shares)

156,818

Average repurchase cost (in USD per share)

$ 12.64

Remaining repurchase authorization available

$ 46,000,000

Stock options

Antidilutive securities excluded from computation of (loss) earnings per share (shares)

123,410

Restricted shares

Antidilutive securities excluded from computation of (loss) earnings per share (shares)

58,244

Convertible preferred stock

Antidilutive securities excluded from computation of (loss) earnings per share (shares)

Predecessor

Numerator:

Less: amounts allocated to participating securities

(2,754,000)

Weighted average shares outstanding- basic (shares)

$ (2,754,000)

Denominator:

48,019,652

Effect of dilutive securities (shares)

Weighted average shares outstanding- diluted (shares)

^[2]

48,019,652

$ (0.06)

Predecessor | Stock options

^[2]

$ (0.06)

Antidilutive securities excluded from computation of (loss) earnings per share (shares)

851

Predecessor | Restricted shares