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Business Acquisitions
 6 Months Ended
Jun. 30, 2016
Business Combinations [Abstract]  
Business Acquisitions
5. Business Acquisitions:

During the six months ended June 30, 2016, the Company completed the acquisition of seven physician group practices and a patient engagement software company. The physician practices acquired included four anesthesiology practices, two pediatric subspecialty practices and one neonatology practice. The total consideration for the eight acquisitions was $193.0 million, consisting of $189.5 million in cash and $3.5 million of contingent consideration. In connection with these acquisitions, the Company recorded goodwill of $157.7 million, other intangible assets consisting primarily of physician and hospital agreements of $48.6 million, other assets of $0.9 million and other liabilities of $14.2 million.

The physician practice acquisitions expand the Company’s national network of physician practices. The Company expects to improve the results of these physician practices through improved managed care contracting, improved collections, identification of growth initiatives, as well as, operating and cost savings based on the significant infrastructure it has developed. The acquisition of the patient engagement software company was an addition to the Company’s revenue cycle management company and is expected to further enhance the Company’s service offerings for its hospital and health system partners.

The contingent consideration of $3.5 million recorded during the six months ended June 30, 2016 is related to an agreement to pay an additional cash amount based on the achievement of certain performance measures for up to five years after the acquisition date. The accrued contingent consideration was recorded as a liability at acquisition-date fair value using the income approach with assumed discount rates ranging from 4.5% to 5.3% over the applicable terms and an assumed payment probability of 100% over the applicable years. The range of the undiscounted amount the Company could pay under the contingent consideration agreement is between $0 and $4.1 million.

In addition, during the six months ended June 30, 2016, the Company paid $4.9 million for contingent consideration related to certain prior-period acquisitions, of which all but the accretion recorded during 2016 was accrued as of December 31, 2015.

In connection with certain prior-period acquisitions, the Company also made additional cash payments of $6.2 million, recorded an increase in deferred tax assets of $19.9 million, a decrease in current assets of $0.2 million and a net decrease of $13.5 million in goodwill for measurement-period adjustments resulting from the finalization of certain income tax acquisition accounting. The Company expects that $22.6 million of the goodwill recorded during the six months ended June 30, 2016 will be deductible for tax purposes.