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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Aug. 08, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Surgery Partners, Inc.
Entity Central Index Key	0001638833
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		48,902,118

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 96,069	$ 174,914
Accounts receivable, less allowance for doubtful accounts of $4,282 and $2,026, respectively	276,849	288,023
Inventories	45,700	44,951
Prepaid expenses and other current assets	54,181	55,337
Total current assets	472,799	563,225
Property and equipment, net	411,880	398,536
Intangible assets, net	61,422	58,908
Goodwill	3,376,295	3,346,838
Investments in and advances to affiliates	78,133	74,282
Long-term deferred tax assets	131,720	132,319
Other long-term assets	51,481	48,665
Total assets	4,583,730	4,622,773
Current liabilities:
Accounts payable	76,161	84,710
Accrued payroll and benefits	48,749	49,625
Other current liabilities	118,206	109,944
Current maturities of long-term debt	53,650	58,726
Total current liabilities	296,766	303,005
Long-term debt, less current maturities	2,122,629	2,130,556
Other long-term liabilities	246,269	222,480
Non-controlling interests—redeemable	320,948	299,316
Stockholders' equity:
Preferred stock, $0.01 par value, 20,000,000 shares authorized, no shares issued or outstanding	0	0
Common stock, $0.01 par value, 300,000,000 shares authorized, 48,902,118 shares issued and outstanding at June 30, 2018; 48,687,136 shares issued and outstanding at December 31, 2017	489	487
Additional paid-in capital	675,857	695,560
Retained deficit	(78,299)	(41,316)
Total Surgery Partners, Inc. stockholders' equity	598,047	654,731
Non-controlling interests—non-redeemable	656,423	681,879
Total stockholders' equity	1,254,470	1,336,610
Total liabilities and stockholders' equity	4,583,730	4,622,773
Redeemable Preferred Stock
Current liabilities:
Redeemable preferred stock - Series A, 310,000 shares authorized, issued and outstanding at both June 30, 2018 and December 31, 2017; redemption value of $342,648 and $330,806, respectively	$ 342,648	$ 330,806

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Allowance for doubtful accounts	$ 4,282	$ 2,026
Redeemable preferred stock, redemption value	$ 342,648	$ 330,806
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (shares)	20,000,000	20,000,000
Preferred stock, shares issued (shares)	0	0
Preferred stock, shares outstanding (shares)	0	0
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (shares)	300,000,000	300,000,000
Common stock, shares issued (shares)	48,902,118	48,687,136
Common stock, shares outstanding (shares)	48,902,118	48,687,136
Redeemable Preferred Stock
Redeemable preferred stock, shares authorized (shares)	310,000	310,000
Redeemable preferred stock, shares issued (shares)	310,000	310,000
Redeemable preferred stock, shares outstanding (shares)	310,000	310,000

Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2018

Jun. 30, 2017

Revenues

$ 444,775

$ 862,144

Operating expenses:

Salaries and benefits

134,020

263,755

Supplies

121,148

235,578

Professional and medical fees

36,713

72,392

Lease expense

21,920

43,281

Other operating expenses

26,289

52,396

Cost of revenues

340,090

667,402

General and administrative expenses

^[1]

26,099

50,251

Depreciation and amortization

16,685

32,434

Provision for doubtful accounts

8,196

14,233

Income from equity investments

(2,560)

(4,422)

Loss on disposals and deconsolidations, net

3,197

3,244

Transaction and integration costs

11,639

16,672

Gain on litigation settlement

Other income

(2,132)

(2,394)

Total operating expenses

401,214

777,420

Operating income

43,561

84,724

Interest expense, net

(35,933)

(70,209)

Income before income taxes

7,628

14,515

Income tax expense

3,318

5,080

Net income

4,310

9,435

Less: Net income attributable to non-controlling interests

(23,772)

(46,418)

Net loss attributable to Surgery Partners, Inc.

(19,462)

(36,983)

Less: Amounts attributable to participating securities

(7,956)

(15,728)

Net loss attributable to common stockholders

$ (27,418)

$ (52,711)

Net loss per share attributable to common stockholders

Basic (in USD per share)

$ (0.57)

$ (1.10)

Diluted (in USD per share)

$ (0.57)

$ (1.10)

Weighted average common shares outstanding

Basic (shares)

48,016,264

48,011,593

Diluted (shares)

48,016,264

48,011,593

Contingent acquisition expense

$ 504

$ 1,007

Predecessor

Revenues

$ 288,353

$ 574,536

Operating expenses:

Salaries and benefits

90,022

179,909

Supplies

74,084

145,244

Professional and medical fees

22,577

43,702

Lease expense

13,674

27,300

Other operating expenses

16,095

32,245

Cost of revenues

216,452

428,400

General and administrative expenses

^[1]

18,655

34,196

Depreciation and amortization

11,417

22,525

Provision for doubtful accounts

5,788

11,463

Income from equity investments

(1,052)

(2,252)

Loss on disposals and deconsolidations, net

405

1,601

Transaction and integration costs

2,904

3,241

Gain on litigation settlement

(3,794)

Other income

(161)

(304)

Total operating expenses

250,614

495,076

Operating income

37,739

79,460

Interest expense, net

(25,600)

(50,782)

Income before income taxes

12,139

28,678

Income tax expense

512

2,629

Net income

11,627

26,049

Less: Net income attributable to non-controlling interests

(16,098)

(33,274)

Net loss attributable to Surgery Partners, Inc.

(4,471)

(7,225)

Less: Amounts attributable to participating securities

Net loss attributable to common stockholders

$ (4,471)

$ (7,225)

Net loss per share attributable to common stockholders

Basic (in USD per share)

$ (0.09)

$ (0.15)

Diluted (in USD per share)

$ (0.09)

$ (0.15)

Weighted average common shares outstanding

Basic (shares)

48,145,729

48,112,909

Diluted (shares)

48,145,729

48,112,909

Contingent acquisition expense

$ 1,814

$ 3,847

[1]	Includes contingent acquisition compensation expense of $0.5 million and $1.8 million for the three months ended June 30, 2018 (Successor) and 2017 (Predecessor), respectively, and $1.0 million and $3.8 million for the six months ended June 30, 2018 (Successor) and 2017 (Predecessor), respectively.

Condensed Consolidated Statements of Stockholders' Equity - 6 months ended Jun. 30, 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

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

(4,458)

(36,983)

32,525

Equity-based compensation

4,777

Preferred dividends

(15,728)

Issuance of restricted and unrestricted shares (shares)

454,522

Issuance of restricted and unrestricted shares

$ 5

(5)

Cancellation of restricted shares (in shares)

(82,722)

Cancellation of restricted shares

(977)

$ (1)

(976)

Repurchase of shares (shares)

(156,818)

Repurchase of shares

(1,982)

$ (2)

(1,980)

Acquisition and disposal of shares of non-controlling interests, net (1)

^[1]

(24,488)

(5,791)

(18,697)

Distributions to non-controlling interests—non-redeemable holders

$ (39,284)

(39,284)

Ending Balance, stockholders' equity (shares) at Jun. 30, 2018

48,902,118

Ending Balance, stockholders' equity at Jun. 30, 2018

$ 1,254,470

$ 489

$ 675,857

$ (78,299)

$ 656,423

[1]	Includes post acquisition date adjustments.

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income	$ 9,435
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	32,434
Non-cash interest (income) expense, net	(654)
Equity-based compensation	4,777
Loss on disposals and deconsolidations, net	3,244
Deferred income taxes	3,827
Provision for doubtful accounts	14,233
Income from equity investments, net of distributions received	(237)
Changes in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable	(1,461)
Other operating assets and liabilities	4,042
Net cash provided by operating activities	69,640
Cash flows from investing activities:
Purchases of property and equipment	(15,943)
Payments for acquisitions, net of cash acquired	(47,894)
Proceeds from divestitures	10,231
Other investing activities	(1,216)
Net cash used in investing activities	(54,822)
Cash flows from financing activities:
Principal payments on long-term debt	(45,352)
Borrowings of long-term debt	21,350
Payments of debt issuance costs	0
Lender financing escrow fee	0
Payments of preferred dividends	(7,810)
Distributions to non-controlling interest holders	(55,776)
Payments related to ownership transactions with non-controlling interest holders	(82)
Repurchase of shares	(1,982)
Principal payments on financing lease obligations	(3,035)
Other financing activities	(976)
Net cash used in financing activities	(93,663)
Net decrease in cash, cash equivalents and restricted cash	(78,845)
Cash, cash equivalents and restricted cash at beginning of period	175,229
Cash, cash equivalents and restricted cash at end of period	$ 96,384
Predecessor
Cash flows from operating activities:
Net income		$ 26,049
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		22,525
Non-cash interest (income) expense, net		3,612
Equity-based compensation		2,069
Loss on disposals and deconsolidations, net		1,601
Deferred income taxes		1,894
Provision for doubtful accounts		11,463
Income from equity investments, net of distributions received		487
Changes in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable		(5,699)
Other operating assets and liabilities		(7,530)
Net cash provided by operating activities		56,471
Cash flows from investing activities:
Purchases of property and equipment		(15,102)
Payments for acquisitions, net of cash acquired		(14,163)
Proceeds from divestitures		70
Other investing activities		0
Net cash used in investing activities		(29,195)
Cash flows from financing activities:
Principal payments on long-term debt		(113,364)
Borrowings of long-term debt		119,778
Payments of debt issuance costs		(941)
Lender financing escrow fee		(6,591)
Payments of preferred dividends		0
Distributions to non-controlling interest holders		(36,841)
Payments related to ownership transactions with non-controlling interest holders		(745)
Repurchase of shares		0
Principal payments on financing lease obligations		(579)
Other financing activities		(658)
Net cash used in financing activities		(39,941)
Net decrease in cash, cash equivalents and restricted cash		(12,665)
Cash, cash equivalents and restricted cash at beginning of period		70,014
Cash, cash equivalents and restricted cash at end of period		$ 57,349

Organization, Basis of Presentation and Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Basis of Presentation and Significant Accounting Policies

Organization

Surgery Partners, Inc., a Delaware corporation, acting through its subsidiaries, owns and operates a national network of surgical facilities and ancillary services. 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 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. Unless context otherwise indicates, Surgery Partners, Inc. and its subsidiaries are referred to herein as the "Company."

As of June 30, 2018, the Company owned or operated a portfolio of 124 surgical facilities, comprised of 106 ASCs and 18 surgical hospitals in 32 states. 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 84 of the surgical facilities and consolidated 106 of these facilities for financial reporting purposes.

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. 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 information contained in these condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017.

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.

In connection with the change of control effective August 31, 2017, the Company elected to apply “pushdown” accounting by applying the guidance in Accounting Standards Codification Topic ("ASC") 805, Business Combinations. 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." See Note 2. Acquisitions and Developments for further discussion of the change of control.

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. 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.

Variable Interest Entities

The condensed consolidated financial statements include the accounts of variable interest entities ("VIEs") in which the Company is the primary beneficiary under the provisions of ASC 810, Consolidation. The Company has the power to direct the activities that most significantly impact a VIEs economic performance, and the Company would absorb the majority of the expected losses from any of these entities should such expected losses occur. As of June 30, 2018 (Successor), the VIEs include four surgical facilities, three anesthesia practices and four physician practices. During the six months ended June 30, 2018 (Successor), the Company divested of one surgical facility and acquired a physician practice, which were classified as VIEs. As of December 31, 2017 (Successor), the VIEs included five surgical facilities, three anesthesia practices and three physician practices.

The total assets (excluding goodwill and intangible assets, net) of the consolidated VIEs included in the accompanying condensed consolidated balance sheets as of June 30, 2018 (Successor) and December 31, 2017 (Successor), were $10.7 million and $13.1 million, respectively, and the total liabilities of the consolidated VIEs were $3.8 million and $5.8 million, respectively.

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
	June 30, 2018		December 31, 2017		June 30, 2018		December 31, 2017
2017 Senior Secured Credit Facilities:
Revolver	$	—	$	—	$	—	$	—
Term Loan	$	1,274,435	$	1,280,532	$	1,269,924	$	1,267,189
Senior Unsecured Notes due 2021	$	408,012	$	409,235	$	418,722	$	422,535
Senior Unsecured Notes due 2025	$	370,000	$	370,000	$	351,500	$	346,413

The fair values of the Term Loan, Senior Unsecured Notes due 2021 and the Senior Unsecured Notes due 2025 were based on a Level 2 inputs using quoted prices for identical liabilities in inactive markets at June 30, 2018 (Successor) and December 31, 2017 (Successor). The carrying amounts related to the Company's other long-term debt obligations, including the Revolver, approximate their fair values.

The Company maintains a supplemental executive retirement savings plan (the "SERP") for certain executives. 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 June 30, 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 June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	Successor		Predecessor		Successor		Predecessor
Patient service revenues:
Surgical facilities revenues	92.6	%	90.5	%	93.0	%	90.1	%
Ancillary services revenues	4.9	%	7.9	%	4.9	%	8.3	%
	97.5	%	98.4	%	97.9	%	98.4	%
Other service revenues:
Optical services revenues	0.6	%	1.0	%	0.7	%	1.0	%
Other revenues	1.9	%	0.6	%	1.4	%	0.6	%
	2.5	%	1.6	%	2.1	%	1.6	%
Total revenues	100.0	%	100.0	%	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 and six months ended June 30, 2018 (Successor). During the three and six months ended June 30, 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 $0.1 million and $0.5 million, respectively.

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 June 30,
	2018				2017
	Successor				Predecessor
	Amount		%		Amount		%
Patient service revenues:
Private insurance	$	232,125	53.5	%	$	140,922	49.6	%
Government	167,135		38.6	%	118,381		41.7	%
Self-pay	13,338		3.1	%	5,760		2.0	%
Other ⁽¹⁾	20,937		4.8	%	18,771		6.7	%
Total patient service revenues	433,535		100.0	%	283,834		100.0	%
Other service revenues:
Optical services revenues	2,778				2,903
Other revenues	8,462				1,616
Total revenues	$	444,775			$	288,353



	Six Months Ended June 30,
	2018				2017
	Successor				Predecessor
	Amount		%		Amount		%
Patient service revenues:
Private insurance	$	451,761	53.5	%	$	279,925	49.5	%
Government	326,482		38.7	%	235,259		41.6	%
Self-pay	26,308		3.1	%	11,831		2.1	%
Other ⁽¹⁾	39,730		4.7	%	38,465		6.8	%
Total patient service revenues	844,281		100.0	%	565,480		100.0	%
Other service revenues:
Optical services revenues	5,738				5,724
Other revenues	12,125				3,332
Total revenues	$	862,144			$	574,536


(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, Cash Equivalents and Restricted Cash

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
	June 30, 2018		December 31, 2017

Cash and cash equivalents	$	96,069	$	174,914
Restricted invested assets included in other long-term assets	315		315
Total cash, cash equivalents and restricted cash in the statement of cash flows	$	96,384	$	175,229

Restricted invested assets included in other long-term assets on the condensed consolidated balance sheet represents restricted cash held 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.

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 $5.2 million and $1.0 million as of June 30, 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 $10.4 million and $7.6 million at June 30, 2018 (Successor) and December 31, 2017 (Successor), respectively.

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 six months ended June 30, 2018 is included in Note 2. Acquisitions and Developments.

A summary of activity related to goodwill for the six months ended June 30, 2018 (Successor) follows (in thousands):



Successor
Balance at December 31, 2017	$	3,346,838
Acquisitions, including post acquisition adjustments	47,348
Divestitures and deconsolidations	(17,891		)
Balance at June 30, 2018	$	3,376,295

Other Current Liabilities

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



	Successor
	June 30, 2018		December 31, 2017

Interest payable	$	25,494	$	20,537
Amounts due to patients and payors	22,210		18,096
Accrued expenses and other	70,502		71,311
Total	$	118,206	$	109,944

Other Long-Term Liabilities

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



	Successor
	June 30, 2018		December 31, 2017

Facility lease obligations	$	130,584	$	121,627
Other	115,685		100,853
Total	$	246,269	$	222,480

At four of the Company's surgical facilities, the Company has financing obligations payable to the lessors of certain land, buildings and improvements. Payments are allocated to principal adjustments of the financing obligations and interest expense. The current portions of the financing obligations were $6.6 million and $6.3 million at June 30, 2018 (Successor) and December 31, 2017 (Successor), respectively, and were included in other current liabilities in the condensed consolidated balance sheets. The long-term portions of the financing obligations are included as facility lease obligations in the table above.

In 2017, one of the Company's surgical facilities entered into a development agreement to construct a new hospital. Due to certain provisions of the agreement, the surgical facility is deemed the owner during construction, and as such, the Company records the ongoing costs as incurred as a deferred financing obligation. As of June 30, 2018 (Successor), the Company has recorded a total of $27.4 million of costs for this project, of which $13.8 million was recorded during the six months ended June 30, 2018 (Successor). These project costs are included as non-cash additions to property and equipment, net in the condensed consolidated balance sheet and as a component of facility lease obligations.

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	13,893
Acquisition and disposal of shares of non-controlling interests, net—redeemable ⁽¹⁾	24,231
Distributions to non-controlling interest—redeemable holders	(16,492		)
Balance at June 30, 2018	$	320,948


(1)	Includes post acquisition date adjustments.

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 requires 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 the 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 guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. The Company is currently evaluating the effects the adoption of ASU 2016-02 will have on its consolidated financial statements, results of operations and cash flows. 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

6 Months Ended

Jun. 30, 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 Acquisitions

During the six months ended June 30, 2018 (Successor), the Company acquired a controlling interest in one surgical facility in a new market, 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 Company additionally acquired a controlling interest in an integrated physician practice, including multiple practice and surgical facility locations, in an existing market for a purchase price of $21.1 million, net of cash acquired. The purchase price for the 2018 acquisitions was funded through cash from operations. The total consideration related to these acquisitions 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 acquired and liabilities assumed for acquisitions completed in the six months ended June 30, 2018 (Successor), including post acquisition date adjustments, are as follows (in thousands):



Cash consideration	$	46,838
Fair value of non-controlling interests	24,587
Aggregate acquisition date fair value	$	71,425
Net assets acquired:
Current Assets	4,623
Property and equipment	2,096
Goodwill	64,114
Other long-term assets	3,460
Current liabilities	(1,868		)
Long-term liabilities	(1,000		)
Aggregate acquisition date fair value	$	71,425

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. The goodwill acquired in connection with the 2018 acquisitions was allocated to the Company's reportable segments as follows: $57.1 million to surgical facility services and $7.0 million to ancillary services. Approximately $43.2 million of goodwill recorded for the 2018 acquisitions is deductible for tax purposes. 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 six months ended June 30, 2018.

During the six months ended June 30, 2017 (Predecessor), the Company completed acquisitions of three physician practices for a combined purchase price of $14.2 million. During the six months ended June 30, 2018 (Successor), 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.

2018 Disposals and Deconsolidation

During the six months ended June 30, 2018 (Successor), the Company sold its interests in two surgery centers for net cash proceeds of $9.7 million, and recognized a net pretax loss of $1.5 million included in loss on disposals and deconsolidations, net in the condensed consolidated statement of operations for the three and six months ended June 30, 2018 (Successor).

During the six months ended June 30, 2018 (Successor), the Company sold a portion of its interest in one surgery center for net cash proceeds of $0.5 million. As a result of this transaction, the Company lost control of the previously controlled entity but retains a noncontrolling interest, resulting in the deconsolidation of the previously consolidated entity. The remaining noncontrolling interest was accounted for as an equity method investment, and initially measured and recorded at fair value as of the date of the transaction.

The fair value measurement utilizes Level 3 inputs, which include unobservable data, to measure the fair value of the retained noncontrolling interest. The fair value determination was based on a combination of multiple valuation methods, which included discounted cash flow and market value approach, which incorporates estimates of future earnings and market valuation multiples for certain guideline companies. The fair value of the investment of $2.0 million was recorded as a component of investments in and advances to affiliates in the accompanying condensed consolidated balance sheets.

Further, the transaction resulted in a pretax gain on deconsolidation of $1.1 million, which is included in loss on disposals and deconsolidations, net, in the accompanying condensed consolidated statement of operations for the three and six months ended June 30, 2018 (Successor). The gain was determined based on the difference between the fair value of the Company's retained interest in the entity and the carrying value of both the tangible and intangible assets of the entity immediately prior to the transaction less cash proceeds received.

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. During the six months ended June 30, 2018 (Successor), information existing at the acquisition date became known to the Company as part of its continuing evaluation of the assets and liabilities existing at the date of acquisition, resulting in a net increase to goodwill of $2.6 million. The corresponding changes to certain classes of assets and liabilities from the preliminary allocation recorded at August 31, 2017 (Predecessor), are reflected in the table below. The increase to goodwill during the period includes a working capital settlement payment resulting in additional cash consideration of $1.2 million.

The acquisition date fair value for each major class of assets acquired and liabilities assumed, including post acquisition date adjustments, are as follows (in thousands):



Cash consideration	$	764,007
Fair value of non-controlling interests	325,965
Acquisition date fair value	$	1,089,972
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	872,843
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	(30,753		)
Other current liabilities	(23,937		)
Current maturities of long-term debt	(16,416		)
Long-term debt, less current maturities	(42,770		)
Other long-term liabilities	(73,806		)
Acquisition date fair value	$	1,089,972

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

On August 31, 2017, BCPE Seminole Holdings LP (“Bain”), a fund advised by an affiliate of Bain Capital Private Equity, completed its purchase of 26,455,651 shares of the Company's common stock at a purchase price of $19.00 per share in cash (the “Private Sale”). As a result of the Private Sale and the Preferred Private Placement (defined in Note 4. Redeemable Preferred Stock), Bain became the controlling stockholder of the Company, holding preferred 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. In connection with this 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.

During the six months ended June 30, 2018 (Successor), information existing at the transaction 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 $16.7 million and corresponding changes to certain classes of assets and liabilities from the preliminary allocation recorded, that are reflected in the table below.

The transaction date fair value recognized in connection with the application of pushdown accounting for each major class of assets and liabilities as of August 31, 2017, including post transaction date adjustments, are as follows (in thousands):



Equity attributable to Surgery Partners, Inc.	$	721,764
Redeemable preferred stock	310,000
Fair value of non-controlling interests	939,083
Transaction date fair value	$	1,970,847
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	3,283,198
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	(56,435		)
Other current liabilities	(97,617		)
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	(170,652		)
Transaction date fair value	$	1,970,847

The post transaction date adjustments for pushdown accounting during the period includes a net increase of $3.9 million to the preliminary amounts assigned to intangible assets, which included an increase of $5.1 million to management rights agreements, offset by a decrease of $1.0 million to non-compete agreements and a decrease of $0.2 million to certificates of need. The remaining adjustments to goodwill are attributable to a $17.9 million decrease to the preliminary fair value assigned to non-controlling interests, a $2.6 million increase related to the Acquisition of NSH (discussed above), and a $2.5 million increase to other long-term liabilities.

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

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Long-Term Debt

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



	Successor
	June 30, 2018		December 31, 2017

2017 Senior Secured Credit Facilities:
Revolver	$	—	$	—
Term Loan ⁽¹⁾	1,274,435		1,280,532
Senior Unsecured Notes due 2021 ⁽²⁾	408,012		409,235
Senior Unsecured Notes due 2025	370,000		370,000
Notes payable and secured loans	98,384		101,921
Capital lease obligations	25,448		27,594
Total debt	2,176,279		2,189,282
Less: Current maturities	53,650		58,726
Total long-term debt	$	2,122,629	$	2,130,556

(1)

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 as of the measurement date, which is reported in the consolidated balance sheets as a direct deduction from the face amount the Term Loan and amortized to interest expense over the life of the Term Loan. The unamortized fair value discount as of June 30, 2018 (Successor) and December 31, 2017 (Successor) was $5.9 million and $6.2 million, respectively.

(2)

In connection with the application of pushdown accounting, the Company remeasured and recorded the Senior Unsecured Notes due 2021 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 as of the measurement date, which is reported in the consolidated balance sheets as a direct addition to the face amount the notes and amortized to interest expense over the life of the Senior Unsecured Notes due 2021. The unamortized fair value premium as of June 30, 2018 (Successor) and December 31, 2017 (Successor) was $8.0 million and $9.2 million, respectively.

Redeemable Preferred Stock

6 Months Ended

Jun. 30, 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 "Preferred Private Placement"). The net proceeds from the issuance were used to finance a portion of the NSH acquisition.

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



Successor
Balance at December 31, 2017	$	330,806
Dividends accrued	15,728
Cash dividends declared	(3,886		)
Balance at June 30, 2018	$	342,648

There were no unpaid cash dividends declared at June 30, 2018 (Successor). The cash dividends declared but unpaid at December 31, 2017 (Successor) was $3.9 million, and were included in other current liabilities in the condensed consolidated balance sheet. The aggregate and per share amounts of unpaid cumulative preferred dividends as of June 30, 2018 (Successor) were $17.1 million and $55.10, respectively.

Earnings Per Share

6 Months Ended

Jun. 30, 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.

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 June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	Successor			Predecessor			Successor			Predecessor

Numerator:
Net loss attributable to Surgery Partners, Inc.	$	(19,462	)	$	(4,471	)	$	(36,983	)	$	(7,225	)
Less: amounts allocated to participating securities ⁽¹⁾	7,956			—			15,728			—
Net loss attributable to common stockholders	$	(27,418	)	$	(4,471	)	$	(52,711	)	$	(7,225	)

Denominator:
Weighted average shares outstanding- basic	48,016,264			48,145,729			48,011,593			48,112,909
Effect of dilutive securities ⁽²⁾	—			—			—			—
Weighted average shares outstanding- diluted	48,016,264			48,145,729			48,011,593			48,112,909

Loss per share:
Basic	$	(0.57	)	$	(0.09	)	$	(1.10	)	$	(0.15	)
Diluted ⁽²⁾	$	(0.57	)	$	(0.09	)	$	(1.10	)	$	(0.15	)

Dilutive securities outstanding not included in the computation of (loss) earnings per share as their effect is antidilutive:
Stock options	161,398			1,312			143,822			1,056
Restricted shares	85,903			209,858			82,864			188,342
Convertible preferred stock	—			N/A			—			N/A


⁽¹⁾	Includes dividends accrued during the three and six months ended June 30, 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 periods.


⁽²⁾	The impact of potentially dilutive securities for all 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 of 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 six months ended June 30, 2018 (Successor), the Company repurchased 156,818 shares of its common stock stock at an average price of $12.64 per share through market purchases. At June 30, 2018 (Successor), the Company had $46.0 million of repurchase authorization available under the December 2017 authorization.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2018
Income Tax Disclosure [Abstract]
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. Section 382 (“Section 382”) of the Internal Revenue Code of 1986, as amended (the “Code”) imposes an annual limit on the ability of a corporation that undergoes an “ownership change” to use its NOLs to reduce its tax liability. An “ownership change” is generally defined as any change in ownership of more than 50.0% of a corporation’s “stock” by its “5-percent shareholders” (as defined in Section 382) over a rolling three-year period based upon each of those shareholder’s lowest percentage of stock owned during such period. As a result of the Symbion acquisition, approximately $179.0 million in NOL carryforwards are subject to an annual Section 382 base limitation of $4.9 million, and, as a result of the NovaMed acquisition, approximately $17.0 million in NOL carryforwards are subject to an annual Section 382 base limitation of $4.9 million. As a result of the NSH acquisition, approximately $20.5 million in NOL carryforwards are subject to an annual Section 382 base limitation of $2.8 million. The Private Sale resulted in an ownership change as defined in Section 382. As a result, approximately $449.7 million in NOL carryforwards are subject to an annual Section 382 base limitation of $14.2 million. At this time, the Company does not believe this limitation, when combined with amounts allowable due to net unrecognized built in gains, will affect its ability to use any NOLs before they expire. However, no such assurances can be provided. If the Company's ability to utilize its NOLs to offset taxable income generated in the future is subject to this limitation, it could have an adverse effect on the Company's business, prospects, results of operations and financial condition. The Tax Cuts and Jobs Act (the "Tax Act") was enacted on December 22, 2017 (Successor). The Tax Act reduces the US federal corporate tax rate from 35% to 21%, allows for 100% expensing of qualified capital expenditures, and limits interest expense deductions beginning in 2018. The Company's accounting for the Tax Act is incomplete. As noted at year-end, however, the Company was able to reasonably estimate certain effects and, therefore, recorded a provisional adjustment associated with the tax rate change. The Company has not made any additional measurement-period adjustments to this item during the first or second quarter, because the Company requires additional time to complete the accounting for its 2017 temporary book/tax differences. However, the Company is continuing to gather information to complete its accounting for this item and expect to complete the accounting within the prescribed measurement period. For the following tax reform items, the Company was able to reasonably estimate certain effects of the Tax Act in the second quarter and, therefore, recorded provisional adjustments as follows: Interest Expense Limitation: Under the Tax Act, interest expense is limited to 30% of the Company’s adjusted taxable income beginning in 2018 resulting in a temporary book to tax difference. Any disallowed interest expense may be carried forward indefinitely. The Company was able to reasonably estimate the interest limitation and recorded an estimate for the disallowed interest expense. The provisional amount of disallowed interest expense as of June 30, 2018 is $46.3 million. The Company has recorded a valuation allowance of $6.9 million on a tax-effected basis against the deferred tax asset resulting from the disallowed interest expense. However, the Company is continuing to gather additional information to more precisely compute the amount of the interest limitation, and the accounting for this item is not yet complete as the Company is waiting for additional guidance to be released around the application of the law. The Company expects to complete its accounting within the prescribed measurement period. 100% Bonus Depreciation: Qualified capital expenditures placed in service after September 27, 2017 are eligible for 100% expensing under the Tax Act. The Company was able to reasonably estimate the 100% bonus depreciation expense and made a provisional estimate in the second quarter. However, the Company is continuing to gather additional information to more precisely compute the amount of 100% bonus depreciation, and the accounting for this item is not yet complete because the Company needs additional time to complete an accurate and thorough analysis of its fixed assets. The Company expects to complete its accounting within the prescribed measurement period. The Company's effective tax rate was 35.0% for the six months ended June 30, 2018 (Successor), compared to 9.2% for the six months ended June 30, 2017 (Predecessor). The increase in the effective tax rate was primarily due to the Tax Act, which implemented an interest expense limitation resulting in a deferred tax asset that required a valuation allowance to be reported at its net realizable value. The Company recorded additional tax expense in 2018 to account for the gain on divestitures and valuation allowances on state tax attributes resulting from legislative changes enacted during the second quarter. The effective tax rate was further impacted by the Tax Act due to the reduced the U.S. federal corporate income tax rate, as discussed above, effective January 1, 2018.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 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 are reasonably possible to have a material adverse effect on the Company's business, financial position, results of operations or liquidity. Insurance Reserves 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 June 30, 2018 (Successor) and December 31, 2017 (Successor) are $22.5 million and $21.0 million, respectively. The balances include expected insurance recoveries of $14.3 million and $12.8 million, respectively. 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. 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 government’s investigation remains ongoing and the Company intends to continue to respond to the CID and engage in further discussions with the U.S. Attorney’s Office in connection with the FCA investigation. In addition, the Company has been informed by CMS that payments to its diagnostic laboratory, Logan Laboratories, have been suspended pending further investigation by CMS. The Company is unable to predict the duration, scope or outcome of these investigations. While it is possible that a loss related to these matters may be incurred, given the ongoing nature of these investigations, management cannot reasonably estimate the potential magnitude of any such loss or range of loss, or the cost of the ongoing investigation, the entirety of which has been recorded in our operating expenses to date. An adverse outcome in these matters or any related litigation, including a determination that we were not, or are not, in compliance with the existing laws or regulations could result in the imposition of fines, civil and criminal penalties, equitable remedies, including disgorgement, injunctive relief, and/or other sanctions against us, and remediation of any such findings could have an adverse effect on the Company’s financial condition and results of operations. See Item 1A “Risk Factors” in our Annual Report on Form 10-K for the period ended December 31, 2017 under the heading “Risk Factors - Risks Related to Government Regulation - Companies within the healthcare industry continue to be the subject of federal and state audits and investigations, and we may be subject to such audits and investigations, including actions for false and other improper claims.” 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 June 30, 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 $46.6 million as of June 30, 2018 (Successor) and $44.3 million as of December 31, 2017 (Successor). Contingent Consideration 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. As disclosed in the footnotes to the condensed consolidated statements of operations, the Company recognized contingent acquisition compensation expense of $0.5 million and $1.8 million for three months ended June 30, 2018 (Successor) and 2017 (Predecessor), respectively and $1.0 million and $3.8 million for six months ended June 30, 2018 (Successor) and 2017 (Predecessor), respectively. Other In connection with the Company's integration of the corporate office functions related to the acquisition of NSH, the Company incurred $4.5 million in estimated severance costs. The estimated costs were included as transaction and integration costs in the condensed consolidated statement of operations for the three and six months ended June 30, 2018 (Successor) and as a component of accrued payroll and benefits in the condensed consolidated balance sheet as of June 30, 2018 (Successor).

Segment Reporting

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Reporting

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 ancillary services and the operation of optical services. "All other" primarily consists of the Company's corporate general and administrative functions.

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	Successor		Predecessor		Successor		Predecessor
Revenues:
Surgical facility services	$	420,404	$	262,810	$	814,470	$	520,960
Ancillary services	21,592		22,640		41,936		47,852
Optical services	2,779		2,903		5,738		5,724
Total revenues	$	444,775	$	288,353	$	862,144	$	574,536



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	Successor			Predecessor			Successor			Predecessor
Adjusted EBITDA:
Surgical facility services	$	75,547		$	49,946		$	142,014		$	98,187
Ancillary services	996			429			2,050			4,211
Optical services	691			883			1,516			1,659
All other ⁽¹⁾	(21,834		)	(14,203		)	(43,103		)	(26,895		)
Total Adjusted EBITDA ⁽²⁾	$	55,400		$	37,055		$	102,477		$	77,162

(1)

Prior to the third quarter of 2017, the all other component was disaggregated and presented below the Adjusted EBITDA attributable to 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.

(2)

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) equity-based compensation, (e) contingent acquisition compensation expense, (f) transaction, integration and acquisition costs, (g) gain on litigation settlement, (h) reserve adjustments and (i) loss on disposals and deconsolidations, net. Adjusted EBITDA is the primary profit/loss metric reviewed by the chief operating decision maker in making key business decisions and on allocation of resources. 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's calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	Successor			Predecessor			Successor			Predecessor

Adjusted EBITDA	$	55,400		$	37,055		$	102,477		$	77,162
Net income attributable to non-controlling interests	23,772			16,098			46,418			33,274
Depreciation and amortization	(16,685		)	(11,417		)	(32,434		)	(22,525		)
Interest expense, net	(35,933		)	(25,600		)	(70,209		)	(50,782		)
Equity-based compensation	(2,780		)	(1,435		)	(4,777		)	(2,069		)
Contingent acquisition compensation expense	(504		)	(1,814		)	(1,007		)	(3,847		)
Transaction, integration and acquisition costs ⁽¹⁾	(12,445		)	(4,137		)	(17,930		)	(4,728		)
Gain on litigation settlement	—			3,794			—			3,794
Reserve adjustments ⁽²⁾	—			—			(4,779		)	—
Loss on disposals and deconsolidations, net	(3,197		)	(405		)	(3,244		)	(1,601		)
Income before income taxes	$	7,628		$	12,139		$	14,515		$	28,678

(1)

This amount includes transaction and integration costs of $11.6 million and $2.9 million for the three months ended June 30, 2018 (Successor) and 2017 (Predecessor), respectively, and acquisition costs of $0.8 million and $1.2 million for the three months ended June 30, 2018 (Successor) and 2017 (Predecessor), respectively. This amount includes transaction and integration costs of $16.7 million and $3.2 million for the six months ended June 30, 2018 (Successor) and 2017 (Predecessor), respectively, and acquisition costs of $1.2 million and $1.5 million for the six months ended June 30, 2018 (Successor) and 2017 (Predecessor), respectively.


(2)	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
	June 30, 2018		December 31, 2017
Assets:
Surgical facility services	$	4,088,768	$	4,072,521
Ancillary services	111,905		104,274
Optical services	51,029		48,309
All other	332,028		397,669
Total assets	$	4,583,730	$	4,622,773



	Six Months Ended June 30,
	2018		2017
	Successor		Predecessor
Cash purchases of property and equipment, net:
Surgical facility services	$	13,200	$	11,266
Ancillary services	266		1,740
Optical services	34		68
All other	2,443		2,028
Total cash purchases of property and equipment, net	$	15,943	$	15,102

Organization, Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. 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 information contained in these condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017.
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.
Pushdown Accounting	In connection with the change of control effective August 31, 2017, the Company elected to apply “pushdown” accounting by applying the guidance in Accounting Standards Codification Topic ("ASC") 805, Business Combinations. 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." See Note 2. Acquisitions and Developments for further discussion of the change of control.
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. 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.
Variable Interest Entities	Variable Interest Entities The condensed consolidated financial statements include the accounts of variable interest entities ("VIEs") in which the Company is the primary beneficiary under the provisions of ASC 810, Consolidation. The Company has the power to direct the activities that most significantly impact a VIEs economic performance, and the Company would absorb the majority of the expected losses from any of these entities should such expected losses occur. As of June 30, 2018 (Successor), the VIEs include four surgical facilities, three anesthesia practices and four physician practices. During the six months ended June 30, 2018 (Successor), the Company divested of one surgical facility and acquired a physician practice, which were classified as VIEs. As of December 31, 2017 (Successor), the VIEs included five surgical facilities, three anesthesia practices and three physician practices.
Fair Value of Financial Instruments	The fair values of the Term Loan, Senior Unsecured Notes due 2021 and the Senior Unsecured Notes due 2025 were based on a Level 2 inputs using quoted prices for identical liabilities in inactive markets at June 30, 2018 (Successor) and December 31, 2017 (Successor). The carrying amounts related to the Company's other long-term debt obligations, including the Revolver, approximate their fair values. The Company maintains a supplemental executive retirement savings plan (the "SERP") for certain executives. 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. 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. 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. 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, Cash Equivalents and Restricted Cash	Restricted invested assets included in other long-term assets on the condensed consolidated balance sheet represents restricted cash held 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.
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 $5.2 million and $1.0 million as of June 30, 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.
Goodwill	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.
Non-Controlling Interests—Redeemable	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.
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 requires 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 the 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 guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. The Company is currently evaluating the effects the adoption of ASU 2016-02 will have on its consolidated financial statements, results of operations and cash flows. 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.
Earnings Per Share	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.
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. Section 382 (“Section 382”) of the Internal Revenue Code of 1986, as amended (the “Code”) imposes an annual limit on the ability of a corporation that undergoes an “ownership change” to use its NOLs to reduce its tax liability. An “ownership change” is generally defined as any change in ownership of more than 50.0% of a corporation’s “stock” by its “5-percent shareholders” (as defined in Section 382) over a rolling three-year period based upon each of those shareholder’s lowest percentage of stock owned during such period.

Organization, Basis of Presentation and Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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
	June 30, 2018		December 31, 2017		June 30, 2018		December 31, 2017
2017 Senior Secured Credit Facilities:
Revolver	$	—	$	—	$	—	$	—
Term Loan	$	1,274,435	$	1,280,532	$	1,269,924	$	1,267,189
Senior Unsecured Notes due 2021	$	408,012	$	409,235	$	418,722	$	422,535
Senior Unsecured Notes due 2025	$	370,000	$	370,000	$	351,500	$	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 June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	Successor		Predecessor		Successor		Predecessor
Patient service revenues:
Surgical facilities revenues	92.6	%	90.5	%	93.0	%	90.1	%
Ancillary services revenues	4.9	%	7.9	%	4.9	%	8.3	%
	97.5	%	98.4	%	97.9	%	98.4	%
Other service revenues:
Optical services revenues	0.6	%	1.0	%	0.7	%	1.0	%
Other revenues	1.9	%	0.6	%	1.4	%	0.6	%
	2.5	%	1.6	%	2.1	%	1.6	%
Total revenues	100.0	%	100.0	%	100.0	%	100.0	%

Schedule of Revenue Sources for Patient Service Revenues



	Three Months Ended June 30,
	2018				2017
	Successor				Predecessor
	Amount		%		Amount		%
Patient service revenues:
Private insurance	$	232,125	53.5	%	$	140,922	49.6	%
Government	167,135		38.6	%	118,381		41.7	%
Self-pay	13,338		3.1	%	5,760		2.0	%
Other ⁽¹⁾	20,937		4.8	%	18,771		6.7	%
Total patient service revenues	433,535		100.0	%	283,834		100.0	%
Other service revenues:
Optical services revenues	2,778				2,903
Other revenues	8,462				1,616
Total revenues	$	444,775			$	288,353



	Six Months Ended June 30,
	2018				2017
	Successor				Predecessor
	Amount		%		Amount		%
Patient service revenues:
Private insurance	$	451,761	53.5	%	$	279,925	49.5	%
Government	326,482		38.7	%	235,259		41.6	%
Self-pay	26,308		3.1	%	11,831		2.1	%
Other ⁽¹⁾	39,730		4.7	%	38,465		6.8	%
Total patient service revenues	844,281		100.0	%	565,480		100.0	%
Other service revenues:
Optical services revenues	5,738				5,724
Other revenues	12,125				3,332
Total revenues	$	862,144			$	574,536


(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
	June 30, 2018		December 31, 2017

Cash and cash equivalents	$	96,069	$	174,914
Restricted invested assets included in other long-term assets	315		315
Total cash, cash equivalents and restricted cash in the statement of cash flows	$	96,384	$	175,229

Schedule of Rollforward of Goodwill

A summary of activity related to goodwill for the six months ended June 30, 2018 (Successor) follows (in thousands):



Successor
Balance at December 31, 2017	$	3,346,838
Acquisitions, including post acquisition adjustments	47,348
Divestitures and deconsolidations	(17,891		)
Balance at June 30, 2018	$	3,376,295

Schedule of Other Current Liabilities

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



	Successor
	June 30, 2018		December 31, 2017

Interest payable	$	25,494	$	20,537
Amounts due to patients and payors	22,210		18,096
Accrued expenses and other	70,502		71,311
Total	$	118,206	$	109,944

Schedule of Other Long-Term Liabilities

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



	Successor
	June 30, 2018		December 31, 2017

Facility lease obligations	$	130,584	$	121,627
Other	115,685		100,853
Total	$	246,269	$	222,480

Schedule of Rollforward of Noncontrolling Interest - 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	13,893
Acquisition and disposal of shares of non-controlling interests, net—redeemable ⁽¹⁾	24,231
Distributions to non-controlling interest—redeemable holders	(16,492		)
Balance at June 30, 2018	$	320,948


(1)	Includes post acquisition date adjustments.

Acquisitions and Developments (Tables)

6 Months Ended

Jun. 30, 2018

Business Combinations [Abstract]

Schedule of Assets Acquired and Liabilities Assumed



Cash consideration	$	46,838
Fair value of non-controlling interests	24,587
Aggregate acquisition date fair value	$	71,425
Net assets acquired:
Current Assets	4,623
Property and equipment	2,096
Goodwill	64,114
Other long-term assets	3,460
Current liabilities	(1,868		)
Long-term liabilities	(1,000		)
Aggregate acquisition date fair value	$	71,425



Equity attributable to Surgery Partners, Inc.	$	721,764
Redeemable preferred stock	310,000
Fair value of non-controlling interests	939,083
Transaction date fair value	$	1,970,847
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	3,283,198
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	(56,435		)
Other current liabilities	(97,617		)
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	(170,652		)
Transaction date fair value	$	1,970,847

The acquisition date fair value for each major class of assets acquired and liabilities assumed, including post acquisition date adjustments, are as follows (in thousands):



Cash consideration	$	764,007
Fair value of non-controlling interests	325,965
Acquisition date fair value	$	1,089,972
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	872,843
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	(30,753		)
Other current liabilities	(23,937		)
Current maturities of long-term debt	(16,416		)
Long-term debt, less current maturities	(42,770		)
Other long-term liabilities	(73,806		)
Acquisition date fair value	$	1,089,972

Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Summary of long-term debt

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



	Successor
	June 30, 2018		December 31, 2017

2017 Senior Secured Credit Facilities:
Revolver	$	—	$	—
Term Loan ⁽¹⁾	1,274,435		1,280,532
Senior Unsecured Notes due 2021 ⁽²⁾	408,012		409,235
Senior Unsecured Notes due 2025	370,000		370,000
Notes payable and secured loans	98,384		101,921
Capital lease obligations	25,448		27,594
Total debt	2,176,279		2,189,282
Less: Current maturities	53,650		58,726
Total long-term debt	$	2,122,629	$	2,130,556

(1)

(2)

Redeemable Preferred Stock (Tables)

6 Months Ended

Jun. 30, 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	15,728
Cash dividends declared	(3,886		)
Balance at June 30, 2018	$	342,648

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	Successor			Predecessor			Successor			Predecessor

Numerator:
Net loss attributable to Surgery Partners, Inc.	$	(19,462	)	$	(4,471	)	$	(36,983	)	$	(7,225	)
Less: amounts allocated to participating securities ⁽¹⁾	7,956			—			15,728			—
Net loss attributable to common stockholders	$	(27,418	)	$	(4,471	)	$	(52,711	)	$	(7,225	)

Denominator:
Weighted average shares outstanding- basic	48,016,264			48,145,729			48,011,593			48,112,909
Effect of dilutive securities ⁽²⁾	—			—			—			—
Weighted average shares outstanding- diluted	48,016,264			48,145,729			48,011,593			48,112,909

Loss per share:
Basic	$	(0.57	)	$	(0.09	)	$	(1.10	)	$	(0.15	)
Diluted ⁽²⁾	$	(0.57	)	$	(0.09	)	$	(1.10	)	$	(0.15	)

Dilutive securities outstanding not included in the computation of (loss) earnings per share as their effect is antidilutive:
Stock options	161,398			1,312			143,822			1,056
Restricted shares	85,903			209,858			82,864			188,342
Convertible preferred stock	—			N/A			—			N/A


⁽¹⁾	Includes dividends accrued during the three and six months ended June 30, 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 periods.


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

Segment Reporting (Tables)

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	Successor		Predecessor		Successor		Predecessor
Revenues:
Surgical facility services	$	420,404	$	262,810	$	814,470	$	520,960
Ancillary services	21,592		22,640		41,936		47,852
Optical services	2,779		2,903		5,738		5,724
Total revenues	$	444,775	$	288,353	$	862,144	$	574,536

Schedule of Segment Operating Income



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	Successor			Predecessor			Successor			Predecessor
Adjusted EBITDA:
Surgical facility services	$	75,547		$	49,946		$	142,014		$	98,187
Ancillary services	996			429			2,050			4,211
Optical services	691			883			1,516			1,659
All other ⁽¹⁾	(21,834		)	(14,203		)	(43,103		)	(26,895		)
Total Adjusted EBITDA ⁽²⁾	$	55,400		$	37,055		$	102,477		$	77,162

(1)

(2)



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	Successor			Predecessor			Successor			Predecessor

Adjusted EBITDA	$	55,400		$	37,055		$	102,477		$	77,162
Net income attributable to non-controlling interests	23,772			16,098			46,418			33,274
Depreciation and amortization	(16,685		)	(11,417		)	(32,434		)	(22,525		)
Interest expense, net	(35,933		)	(25,600		)	(70,209		)	(50,782		)
Equity-based compensation	(2,780		)	(1,435		)	(4,777		)	(2,069		)
Contingent acquisition compensation expense	(504		)	(1,814		)	(1,007		)	(3,847		)
Transaction, integration and acquisition costs ⁽¹⁾	(12,445		)	(4,137		)	(17,930		)	(4,728		)
Gain on litigation settlement	—			3,794			—			3,794
Reserve adjustments ⁽²⁾	—			—			(4,779		)	—
Loss on disposals and deconsolidations, net	(3,197		)	(405		)	(3,244		)	(1,601		)
Income before income taxes	$	7,628		$	12,139		$	14,515		$	28,678

(1)


(2)	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
	June 30, 2018		December 31, 2017
Assets:
Surgical facility services	$	4,088,768	$	4,072,521
Ancillary services	111,905		104,274
Optical services	51,029		48,309
All other	332,028		397,669
Total assets	$	4,583,730	$	4,622,773

Schedule of Other Segment Reporting Information



	Six Months Ended June 30,
	2018		2017
	Successor		Predecessor
Cash purchases of property and equipment, net:
Surgical facility services	$	13,200	$	11,266
Ancillary services	266		1,740
Optical services	34		68
All other	2,443		2,028
Total cash purchases of property and equipment, net	$	15,943	$	15,102

Organization, Basis of Presentation and Significant Accounting Policies - Organization (Details)	Jun. 30, 2018 surgical_facility state
Products And Services [Line Items]
Number of surgical facilities owned	124
Number of states in which entity operates \| state	32
Number of surgical facilities owned, majority interest	84
Number of surgical facilities owned, consolidated	106
Facilities, Ambulatory Surgery Centers
Products And Services [Line Items]
Number of surgical facilities owned	106
Facilities, Surgical Hospitals
Products And Services [Line Items]
Number of surgical facilities owned	18

Organization, Basis of Presentation and Significant Accounting Policies - Variable Interest Entities (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018 Anesthesia_Practice surgical_facility physician_practice	Jun. 30, 2018 surgical_facility	Jun. 30, 2018 physician_practice	Jun. 30, 2018 USD ($)	Dec. 31, 2017 Anesthesia_Practice	Dec. 31, 2017 surgical_facility	Dec. 31, 2017 physician_practice	Dec. 31, 2017 USD ($)
Variable Interest Entity [Line Items]
Number of facilities included in VIE	3	4	4		3	5	3
Number of facilities divested \| surgical_facility	1
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure
Variable Interest Entity [Line Items]
Total assets related to VIE				$ 10.7				$ 13.1
Total liabilities related to VIE				$ 3.8				$ 5.8
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of practices acquired, classified as VIE \| physician_practice	1

Organization, Basis of Presentation and Significant Accounting Policies - Schedule of Carrying Amount and Fair Value of Financial Instruments (Details) - Senior Notes - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Senior Unsecured Notes Due 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 408,012	$ 409,235
Senior Unsecured Notes Due 2021 \| Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	408,012	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	418,722	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	351,500	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	1,274,435	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	$ 1,269,924	$ 1,267,189

Organization, Basis of Presentation and Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 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

Organization, Basis of Presentation and Significant Accounting Policies - Schedule of Revenues by Service Type (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 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		$ 0
Revenue Source \| Revenue
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	100.00%		100.00%
Revenue Source \| Revenue \| Healthcare Organization, Patient Service
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	97.50%		97.90%
Revenue Source \| Revenue \| Surgical Facility Services
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	92.60%		93.00%
Revenue Source \| Revenue \| Ancillary Services
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	4.90%		4.90%
Revenue Source \| Revenue \| Healthcare Organization, Other Service
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	2.50%		2.10%
Revenue Source \| Revenue \| Optical Services
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	0.60%		0.70%
Revenue Source \| Revenue \| Other
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues	1.90%		1.40%
Predecessor
Revenue from External Customer [Line Items]
Increase of revenue as result of changes in estimates to third-party settlements related to prior years		$ 100,000		$ 500,000
Predecessor \| Revenue Source \| Revenue
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues		100.00%		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%		98.40%
Predecessor \| Revenue Source \| Revenue \| Surgical Facility Services
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues		90.50%		90.10%
Predecessor \| Revenue Source \| Revenue \| Ancillary Services
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues		7.90%		8.30%
Predecessor \| Revenue Source \| Revenue \| Healthcare Organization, Other Service
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues		1.60%		1.60%
Predecessor \| Revenue Source \| Revenue \| Optical Services
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues		1.00%		1.00%
Predecessor \| Revenue Source \| Revenue \| Other
Revenue from External Customer [Line Items]
Service revenues as a percentage of total revenues		0.60%		0.60%

Organization, Basis of Presentation and Significant Accounting Policies - Schedule of Revenues by Sources (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues	$ 444,775		$ 862,144
Healthcare Organization, Patient Service
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues	$ 433,535		$ 844,281
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%		100.00%
Healthcare Organization, Patient Service \| Private insurance
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues	$ 232,125		$ 451,761
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%		53.50%
Healthcare Organization, Patient Service \| Government
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues	$ 167,135		$ 326,482
Healthcare Organization, Patient Service \| Government \| Customer \| Revenue
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Service revenues as a percentage of total revenues	38.60%		38.70%
Healthcare Organization, Patient Service \| Self-pay
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues	$ 13,338		$ 26,308
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%		3.10%
Healthcare Organization, Patient Service \| Other
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues	$ 20,937		$ 39,730
Healthcare Organization, Patient Service \| Other \| Customer \| Revenue
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Service revenues as a percentage of total revenues	4.80%		4.70%
Optical Services
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues	$ 2,778		$ 5,738
Other
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues	$ 8,462		$ 12,125
Predecessor
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues		$ 288,353		$ 574,536
Predecessor \| Healthcare Organization, Patient Service
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues		$ 283,834		$ 565,480
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%		100.00%
Predecessor \| Healthcare Organization, Patient Service \| Private insurance
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues		$ 140,922		$ 279,925
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		49.60%		49.50%
Predecessor \| Healthcare Organization, Patient Service \| Government
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues		$ 118,381		$ 235,259
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		41.70%		41.60%
Predecessor \| Healthcare Organization, Patient Service \| Self-pay
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues		$ 5,760		$ 11,831
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		2.00%		2.10%
Predecessor \| Healthcare Organization, Patient Service \| Other
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues		$ 18,771		$ 38,465
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		6.70%		6.80%
Predecessor \| Optical Services
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues		$ 2,903		$ 5,724
Predecessor \| Other
Health Care Organization, Receivable and Revenue Disclosures [Line Items]
Total revenues		$ 1,616		$ 3,332

Organization, Basis of Presentation and Significant Accounting Policies - Cash and Restricted Cash Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 96,069	$ 174,914
Restricted invested assets included in other long-term assets	315	315
Total cash, cash equivalents and restricted cash in the statement of cash flows	$ 96,384	$ 175,229

Organization, Basis of Presentation and Significant Accounting Policies - Accounts Receivable and Allowances for Contractual Adjustments and Doubtful Accounts (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Third-Party Medicaid settlement liability	$ 5.2	$ 1.0
Optical products receivable	$ 10.4	$ 7.6

Organization, Basis of Presentation and Significant Accounting Policies - Rollforward of Goodwill and Information on Impairments (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning of period	$ 3,346,838
Acquisitions, including post acquisition adjustments	47,348
Divestitures and deconsolidations	(17,891)
Goodwill, end of period	$ 3,376,295

Organization, Basis of Presentation and Significant Accounting Policies - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interest payable	$ 25,494	$ 20,537
Amounts due to patients and payors	22,210	18,096
Accrued expenses and other	70,502	71,311
Total	$ 118,206	$ 109,944

Organization, Basis of Presentation and Significant Accounting Policies - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Facility lease obligations	$ 130,584	$ 121,627
Other	115,685	100,853
Total	246,269	222,480
Current portions of the lease obligations	6,600	$ 6,300
Noncurrent deferred financing obligation, Noncurrent	27,400
Payments of noncurrent deferred financing obligations	$ 13,800

Organization, Basis of Presentation and Significant Accounting Policies - Schedule of Non-Controlling Interests - Redeemable (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Non-Controlling Interests - Redeemable [Roll Forward]
Beginning balance	$ 299,316
Net income attributable to non-controlling interests—redeemable	13,893
Acquisition and disposal of shares of non-controlling interests, net—redeemable	24,231
Distributions to non-controlling interest—redeemable holders	(16,492)
Ending balance	$ 320,948

Acquisitions and Developments - Additional Information (Details) $ / shares in Units, $ in Thousands		3 Months Ended	6 Months Ended
	Aug. 31, 2017 USD ($) $ / shares shares	Jun. 30, 2018 USD ($)	Jun. 30, 2018 USD ($) surgical_facility physician_practice surgery_center	Jun. 30, 2017 USD ($) physician_practice	Dec. 31, 2017 USD ($)
Business Acquisition [Line Items]
Goodwill		$ 3,376,295	$ 3,376,295		$ 3,346,838
Fair value of investment		2,000	2,000
Gain on deconsolidation		1,100
Payments for acquisitions, net of cash acquired			47,894
Bain Capital
Business Acquisition [Line Items]
Net increase (decrease) to goodwill			$ (16,700)
Two Surgery Centers
Business Acquisition [Line Items]
Number of interests disposed (in surgery centers) \| surgery_center			2
Net proceeds from sale of interests			$ 9,700
Loss sale of interests			$ 1,500
Surgery Center
Business Acquisition [Line Items]
Number of interests disposed (in surgery centers) \| surgery_center			1
Net proceeds from sale of interests			$ 500
Surgical Facility Acquisitions, New Market
Business Acquisition [Line Items]
Number of businesses acquired \| surgical_facility			1
Surgical Facility, Existing Market
Business Acquisition [Line Items]
Number of businesses acquired \| surgical_facility			1,000
Physician Practice
Business Acquisition [Line Items]
Number of businesses acquired \| physician_practice			1,000
Surgical Facility and Physician Practice Acquisitions
Business Acquisition [Line Items]
Business acquisition total purchase price			$ 25,600
Integrated Physician Practice Acquisitions
Business Acquisition [Line Items]
Business acquisition total purchase price			21,100
Total Acquisitions
Business Acquisition [Line Items]
Goodwill		64,114	64,114
Tax deductible goodwill		43,200	43,200
NSH
Business Acquisition [Line Items]
Additional cash consideration paid increasing goodwill			1,200
Surgical Facility Services \| Total Acquisitions
Business Acquisition [Line Items]
Goodwill		57,100	57,100
Ancillary Services \| Total Acquisitions
Business Acquisition [Line Items]
Goodwill		$ 7,000	$ 7,000
Predecessor
Business Acquisition [Line Items]
Payments for acquisitions, net of cash acquired				$ 14,163
Predecessor \| Bain Capital
Business Acquisition [Line Items]
Business acquisition total purchase price	$ 1,970,847
Goodwill	$ 3,283,198
Shares sold in acquisition (shares) \| shares	26,455,651
Share price (in USD per share) \| $ / shares	$ 19.00
Percentage of voting interests sold	65.70%
Pushdown accounting adjustments, increase (decrease) to intangibles	$ 3,900
Pushdown accounting adjustment increase to other long-term liabilities	2,500
Predecessor \| Total Acquisitions
Business Acquisition [Line Items]
Number of businesses acquired \| physician_practice				3
Business acquisition total purchase price				$ 14,200
Predecessor \| NSH
Business Acquisition [Line Items]
Goodwill	872,843
Payments for acquisitions, net of cash acquired	711,700
Acquisition escrow deposit	19,600
Net increase (decrease) to goodwill	2,600
Pushdown accounting adjustments, decrease to preliminary fair value assigned to non-controlling interests	17,900
Management RIghts Agreements \| Predecessor \| Bain Capital
Business Acquisition [Line Items]
Pushdown accounting adjustments, increase (decrease) to intangibles	5,100
Non-compete agreements \| Predecessor \| Bain Capital
Business Acquisition [Line Items]
Pushdown accounting adjustments, increase (decrease) to intangibles	(1,000)
Certificates of Need \| Predecessor \| Bain Capital
Business Acquisition [Line Items]
Pushdown accounting adjustments, increase (decrease) to intangibles	$ (200)

Acquisitions and Developments - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands		6 Months Ended
	Aug. 31, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Net assets acquired:
Goodwill		$ 3,376,295		$ 3,346,838
2018 Acquisitions
Business Acquisition [Line Items]
Cash consideration		46,838
Fair value of non-controlling interests		24,587
Acquisition date fair value		71,425
Net assets acquired:
Current Assets		4,623
Property and equipment		2,096
Goodwill		64,114
Other long-term assets		3,460
Current liabilities		(1,868)
Long-term liabilities		(1,000)
Acquisition date fair value		$ 71,425
Predecessor \| Bain Capital
Business Acquisition [Line Items]
Equity attributable to Surgery Partners, Inc.	$ 721,764
Redeemable preferred stock	310,000
Fair value of non-controlling interests	939,083
Transaction date fair value	1,970,847
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	3,283,198
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	(56,435)
Other current liabilities	(97,617)
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	(170,652)
Acquisition date fair value	1,970,847
Predecessor \| 2018 Acquisitions
Business Acquisition [Line Items]
Transaction date fair value			$ 14,200
Predecessor \| NSH
Business Acquisition [Line Items]
Cash consideration	764,007
Fair value of non-controlling interests	325,965
Acquisition date fair value	1,089,972
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	872,843
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	(30,753)
Other current liabilities	(23,937)
Current maturities of long-term debt	(16,416)
Long-term debt, less current maturities	(42,770)
Other long-term liabilities	(73,806)
Acquisition date fair value	$ 1,089,972

Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Capital lease obligations	$ 25,448	$ 27,594
Debt and capital lease obligations	2,176,279	2,189,282
Less: Current maturities	53,650	58,726
Total long-term debt	2,122,629	2,130,556
Unamortized fair value discount	(5,900)	(6,200)
Unamortized fair value premium	8,000	9,200
Secured Debt \| 2017 Senior Secured Credit Facility - Term Loan
Debt Instrument [Line Items]
Long-term debt	1,274,435	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	408,012	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	$ 98,384	$ 101,921

Redeemable Preferred Stock - Additional Information (Details) - Series A Preferred Stock - USD ($)		6 Months Ended
	Aug. 31, 2017	Jun. 30, 2018	Dec. 31, 2017
Temporary Equity [Line Items]
Dividends payable		$ 0	$ 3,900,000
Cumulative preferred dividends		$ 17,100,000
Preferred dividends payable (in USD per share)		$ 55.1
Majority Shareholder
Temporary Equity [Line Items]
Stock issued during period (shares)	310,000
Purchase price per share (in USD per share)	$ 1,000
Proceeds from issuance of preferred shares	$ 310,000,000

Redeemable Preferred Stock - Redeemable Preferred Stock Activity (Details) - Series A Preferred Stock $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Increase (Decrease) in Temporary Equity [Roll Forward]
12/31/2017	$ 330,806
Dividends accrued	15,728
Cash dividends declared	(3,886)
June 30, 2018	$ 342,648

Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
Earnings Per Share (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 15, 2017
Numerator:
Net loss attributable to Surgery Partners, Inc.	$ (19,462,000)		$ (36,983,000)
Less: amounts allocated to participating securities	7,956,000		15,728,000
Net loss attributable to common stockholders	$ (27,418,000)		$ (52,711,000)
Denominator:
Weighted average shares outstanding- basic (shares)	48,016,264		48,011,593
Effect of dilutive securities (shares)	0		0
Weighted average shares outstanding- diluted (shares)	48,016,264		48,011,593
Loss per share:
Basic (in USD per share)	$ (0.57)		$ (1.10)
Diluted (in USD per share)	$ (0.57)		$ (1.10)
Authorized share repurchase amount					$ 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		$ 46,000,000
Stock options
Loss per share:
Antidilutive securities excluded from computation of (loss) earnings per share (shares)	161,398		143,822
Restricted shares
Loss per share:
Antidilutive securities excluded from computation of (loss) earnings per share (shares)	85,903		82,864
Convertible preferred stock
Loss per share:
Antidilutive securities excluded from computation of (loss) earnings per share (shares)	0		0
Predecessor
Numerator:
Net loss attributable to Surgery Partners, Inc.		$ (4,471,000)		$ (7,225,000)
Less: amounts allocated to participating securities		0		0
Net loss attributable to common stockholders		$ (4,471,000)		$ (7,225,000)
Denominator:
Weighted average shares outstanding- basic (shares)		48,145,729		48,112,909
Effect of dilutive securities (shares)		0		0
Weighted average shares outstanding- diluted (shares)		48,145,729		48,112,909
Loss per share:
Basic (in USD per share)		$ (0.09)		$ (0.15)
Diluted (in USD per share)		$ (0.09)		$ (0.15)
Predecessor \| Stock options
Loss per share:
Antidilutive securities excluded from computation of (loss) earnings per share (shares)		1,312		1,056
Predecessor \| Restricted shares
Loss per share:
Antidilutive securities excluded from computation of (loss) earnings per share (shares)		209,858		188,342

Income Taxes (Details) - USD ($) $ in Millions	6 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jun. 30, 2018	Jun. 30, 2017
Operating Loss Carryforwards [Line Items]
Estimated disallowed interest expense	$ 46.3
Valuation allowance on deferred tax asset	$ 6.9
Effective tax rate	35.00%
Symbion
Operating Loss Carryforwards [Line Items]
NOL carryforwards	$ 179.0
Annual base limitation	4.9
NovaMed
Operating Loss Carryforwards [Line Items]
NOL carryforwards	17.0
Annual base limitation	4.9
NSH
Operating Loss Carryforwards [Line Items]
NOL carryforwards	20.5
Annual base limitation	2.8
Bain Capital
Operating Loss Carryforwards [Line Items]
NOL carryforwards	449.7
Annual base limitation	$ 14.2
Predecessor
Operating Loss Carryforwards [Line Items]
Effective tax rate		9.20%

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Guarantor Obligations [Line Items]
Professional, general and workers' compensation insurance reserve	$ 22,500		$ 22,500		$ 21,000
Expected insurance recoveries	14,300		$ 14,300		12,800
Federal effective tax rate			24.00%
Long-term tax receivable agreement liability	65,100		$ 65,100		65,100
Net long-term tax receivable agreement liability	46,600		46,600		$ 44,300
Contingent acquisition expense	504		1,007
Estimated severance costs incurred	$ 4,500		$ 4,500
Predecessor
Guarantor Obligations [Line Items]
Contingent acquisition expense		$ 1,814		$ 3,847
Materially More Restrictive \| LIBOR
Guarantor Obligations [Line Items]
Debt instrument, basis spread on variable rate			5.00%
Not Materially More Restrictive \| LIBOR
Guarantor Obligations [Line Items]
Debt instrument, basis spread on variable rate			3.00%

Segment Reporting - Revenues by Reportable Segment (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) segment	Jun. 30, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment			3
Revenues	$ 444,775		$ 862,144
Surgical Facility Services
Segment Reporting Information [Line Items]
Revenues	420,404		814,470
Ancillary Services
Segment Reporting Information [Line Items]
Revenues	21,592		41,936
Optical Services
Segment Reporting Information [Line Items]
Revenues	$ 2,779		$ 5,738
Predecessor
Segment Reporting Information [Line Items]
Revenues		$ 288,353		$ 574,536
Predecessor \| Surgical Facility Services
Segment Reporting Information [Line Items]
Revenues		262,810		520,960
Predecessor \| Ancillary Services
Segment Reporting Information [Line Items]
Revenues		22,640		47,852
Predecessor \| Optical Services
Segment Reporting Information [Line Items]
Revenues		$ 2,903		$ 5,724

Segment Reporting - Segment Operating Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Total segment adjusted EBITDA	$ 55,400		$ 102,477
All other	(21,834)		(43,103)
Net income attributable to non-controlling interests	23,772		46,418
Depreciation and amortization	(16,685)		(32,434)
Interest expense, net	(35,933)		(70,209)
Equity-based compensation	(2,780)		(4,777)
Contingent acquisition compensation expense	(504)		(1,007)
Transaction, integration and practice acquisition costs	(12,445)		(17,930)
Gain on litigation settlement	0		0
Reserve adjustments	0		(4,779)
Loss on disposals and deconsolidations, net	(3,197)		(3,244)
Income before income taxes	7,628		14,515
Transaction and integration costs	11,639		16,672
Practice acquisition costs	800		1,200
Operating Segments \| Surgical Facility Services
Segment Reporting Information [Line Items]
Total segment adjusted EBITDA	75,547		142,014
Operating Segments \| Ancillary Services
Segment Reporting Information [Line Items]
Total segment adjusted EBITDA	996		2,050
Operating Segments \| Optical Services
Segment Reporting Information [Line Items]
Total segment adjusted EBITDA	$ 691		$ 1,516
Predecessor
Segment Reporting Information [Line Items]
Total segment adjusted EBITDA		$ 37,055		$ 77,162
All other		(14,203)		(26,895)
Net income attributable to non-controlling interests		16,098		33,274
Depreciation and amortization		(11,417)		(22,525)
Interest expense, net		(25,600)		(50,782)
Equity-based compensation		(1,435)		(2,069)
Contingent acquisition compensation expense		(1,814)		(3,847)
Transaction, integration and practice acquisition costs		(4,137)		(4,728)
Gain on litigation settlement		3,794		3,794
Reserve adjustments		0		0
Loss on disposals and deconsolidations, net		(405)		(1,601)
Income before income taxes		12,139		28,678
Transaction and integration costs		2,904		3,241
Practice acquisition costs		1,200		1,500
Predecessor \| Operating Segments \| Surgical Facility Services
Segment Reporting Information [Line Items]
Total segment adjusted EBITDA		49,946		98,187
Predecessor \| Operating Segments \| Ancillary Services
Segment Reporting Information [Line Items]
Total segment adjusted EBITDA		429		4,211
Predecessor \| Operating Segments \| Optical Services
Segment Reporting Information [Line Items]
Total segment adjusted EBITDA		$ 883		$ 1,659

Segment Reporting - Assets by Operating Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Assets	$ 4,583,730	$ 4,622,773
Predecessor
Segment Reporting Information [Line Items]
Assets		4,622,773
Operating Segments \| Surgical Facility Services
Segment Reporting Information [Line Items]
Assets	4,088,768
Operating Segments \| Ancillary Services
Segment Reporting Information [Line Items]
Assets	111,905
Operating Segments \| Optical Services
Segment Reporting Information [Line Items]
Assets	51,029
Operating Segments \| Predecessor \| Surgical Facility Services
Segment Reporting Information [Line Items]
Assets		4,072,521
Operating Segments \| Predecessor \| Ancillary Services
Segment Reporting Information [Line Items]
Assets		104,274
Operating Segments \| Predecessor \| Optical Services
Segment Reporting Information [Line Items]
Assets		48,309
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Assets	$ 332,028
Corporate, Non-Segment \| Predecessor
Segment Reporting Information [Line Items]
Assets		$ 397,669

Segment Reporting - Cash Purchases of Property and Equipment (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Purchases of property and equipment, net	$ 15,943
Operating Segments \| Surgical Facility Services
Segment Reporting Information [Line Items]
Purchases of property and equipment, net	13,200
Operating Segments \| Ancillary Services
Segment Reporting Information [Line Items]
Purchases of property and equipment, net	266
Operating Segments \| Optical Services
Segment Reporting Information [Line Items]
Purchases of property and equipment, net	34
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Purchases of property and equipment, net	$ 2,443
Predecessor
Segment Reporting Information [Line Items]
Purchases of property and equipment, net		$ 15,102
Predecessor \| Operating Segments \| Surgical Facility Services
Segment Reporting Information [Line Items]
Purchases of property and equipment, net		11,266
Predecessor \| Operating Segments \| Ancillary Services
Segment Reporting Information [Line Items]
Purchases of property and equipment, net		1,740
Predecessor \| Operating Segments \| Optical Services
Segment Reporting Information [Line Items]
Purchases of property and equipment, net		68
Predecessor \| Corporate, Non-Segment
Segment Reporting Information [Line Items]
Purchases of property and equipment, net		$ 2,028