Business Acquisitions

6 Months Ended

Jun. 30, 2019

5.	Business Acquisitions:

During the six months ended June 30, 2019, the Company completed the acquisition of one neonatology physician practice and two

maternal-fetal medicine physician practices for total cash consideration of

$11.5 million. These acquisitions expanded the Company’s national network of physician practices. In connection with these acquisitions, the Company recorded goodwill of $8.1 million and other intangible assets consisting primarily of physician and hospital agreements of $3.4 million. The Company expects that the goodwill recorded during the six months ended June 30, 2019 will be deductible for tax purposes.

In addition, the Company paid $5.6 million for contingent consideration in connection with prior period acquisitions. The Company also recorded a decrease of $6.6 million related to the change in fair value of a contingent consideration agreement for which the probability of the achievement of certain performance measures was updated during the six months ended June 30, 2019. This change in fair value of contingent consideration was recorded within operating expenses.