Subsequent Event

3 Months Ended

Mar. 31, 2020

Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract]

12.	Subsequent Event:

On May 6, 2020, the Company entered into a securities purchase agreement with an affiliate of North American Partners in Anesthesia (“NAPA”) to divest of the Company’s anesthesiology medical group, and the transaction closed on May 6, 2020. Pursuant to the terms and conditions of the agreement, at the closing of the transaction, the Company received a cash payment

of $

50.0

million, subject to certain customary adjustments, as well as a contingent economic interest in NAPA with a value ranging from $0 to $250 million based upon the multiple of invested capital returned to NAPA’s owners upon exit of the investment. The Company will begin to receive a payment on its economic interest at an exit multiple of 2.0, with such payment reaching

250

million at an exit multiple of 5.0. In addition, the Company retained the accounts receivable of the anesthesiology medical group, which net of various other working capital items, approximated

110.0

million at March 31, 2020. Upon completion of a valuation to determine the final net proceeds, the Company anticipates recording a loss on disposal in the range of approximately

500.0

million to $

600.0

million.

The following table represents the major classes of assets and liabilities of the anesthesiology medical group that are included in the accompanying Consolidated Balance Sheets as of March 31, 2020 (in thousands):


	March 31, 2020
Assets
Cash and cash equivalents	$	19
Accounts receivable, net		147,717
Prepaid expenses and other assets		14,519
Property and equipment, net		900
Goodwill		545,272
Intangible assets, net		60,034

	$768,461

Liabilities
Accounts payable and accrued expenses	$	54,311
Accrued professional liabilities		20,627
Other liabilities		5,174

	$80,112