Adeptus Health (ADPTQ) 10-K 29 Feb 16 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Feb. 15, 2016	Jun. 30, 2015
Entity Registrant Name	Adeptus Health Inc.
Entity Central Index Key	1,602,367
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 764.7
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Common Class A
Entity Common Stock, Shares Outstanding		14,266,784
Common Class B
Entity Common Stock, Shares Outstanding		6,510,738

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets
Cash	$ 16,037	$ 2,002
Restricted cash		4,795
Accounts receivable, less allowance for doubtful accounts of $28,818 and $13,068, respectively	65,954	37,422
Other receivables and current assets	31,532	17,137
Medical supplies inventory	5,167	4,287
Total current assets	118,690	65,643
Property and equipment, net	70,187	93,892
Investment in unconsolidated joint venture	43,104	2,100
Deposits	1,163	1,772
Deferred tax asset	206,265	34,084
Intangibles, net	18,235	20,015
Goodwill	61,009	61,009
Other long-term assets	6,628	4,303
Total assets	525,281	282,818
Current liabilities
Accounts payable and accrued expenses	27,521	25,420
Accrued compensation	23,197	13,521
Current maturities of long-term debt	7,585	1,816
Current maturities of capital lease obligations	102	81
Deferred rent	858	607
Total current liabilities	59,263	41,445
Long-term debt, less current maturities	117,241	104,982
Payable to related parties pursuant to tax receivable agreement	191,302	30,039
Capital lease obligations, less current maturities	3,954	4,056
Deferred rent	3,837	2,416
Total liabilities	$ 375,597	$ 182,938
Commitments and contingencies
Shareholders' Equity
Additional paid-in capital	$ 85,457	$ 51,238
Accumulated other comprehensive loss		(74)
Retained earnings (deficit)	6,323	(3,351)
Total shareholders' equity	91,988	48,019
Non-controlling interest	57,696	51,861
Total equity	149,684	99,880
Total liabilities and shareholders' equity	525,281	282,818
Common Class A
Shareholders' Equity
Common Stock	143	98
Common Class B
Shareholders' Equity
Common Stock	$ 65	$ 108

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Allowance for doubtful accounts	$ 28,818	$ 13,068
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common Class A
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	14,257,187	9,845,016
Common stock, shares outstanding	14,257,187	9,845,016
Common Class B
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	6,510,738	10,781,153
Common stock, shares outstanding	6,510,738	10,781,153

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue
Patient service revenue	$ 420,612	$ 243,298	$ 114,960
Provision for bad debt	(70,119)	(32,624)	(12,077)
Net patient service revenue	350,493	210,674	102,883
Management and contract services revenue	14,194	20
Total net operating revenue	364,687	210,694	102,883
Equity in earnings of unconsolidated joint ventures	8,927	(900)
Operating expenses:
Salaries, wages and benefits	218,114	136,498	65,244
General and administrative	51,083	37,604	17,436
Other operating expenses	51,374	27,287	11,392
Depreciation and amortization	17,875	15,037	7,920
Total operating expenses	338,446	216,426	101,992
Income (loss) from operations	35,168	$ (6,632)	$ 891
Other (expense) income:
Gain on contribution to joint venture	24,250
Interest expense	(12,759)	$ (11,966)	$ (2,827)
Realized (loss) gain on derivative	(92)		112
Loss on extinguishment of debt	(5,011)		(440)
Total other (expense) income	6,388	(11,966)	(3,155)
Income (loss) before provision (benefit) for income taxes	41,556	(18,598)	(2,264)
Provision (benefit) for income taxes	8,733	(1,326)	720
Net income (loss)	32,823	(17,272)	(2,984)
Less: Net income (loss) attributable to non-controlling interest	19,606	(13,921)	$ (2,984)
Net income (loss) attributable to Adeptus Health Inc.	$ 13,217	$ (3,351)
Common Class A
Net income (loss) per share of Class A common stock:
Basic (in dollars per share)	$ 1.09	$ (0.34)
Diluted (in dollars per share)	$ 1.09	$ (0.34)
Weighted average shares of Class A common stock:
Basic (in shares)	12,103,383	9,845,016
Diluted (in shares)	12,103,383	9,845,016

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Consolidated Statement of Comprehensive Income
Net income (loss)	$ 13,217	$ (3,351)
Net income (loss) attributable to the non-controlling interest	19,606	(13,921)	$ (2,984)
Net income	32,823	(17,272)	(2,984)
Other comprehensive loss, net of tax:
Unrealized loss on interest rate contract-parent	74	(74)
Unrealized loss on interest rate contract	74	(74)
Comprehensive income (loss)	13,291	(3,425)
Comprehensive income (loss) - noncontrolling interest	19,606	(13,921)	(2,984)
Comprehensive income (loss) including portion attributable to noncontrolling interest	$ 32,897	$ (17,346)	$ (2,984)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY/OWNERS' EQUITY - USD ($)	Adeptus Health LLC Equity	Common StockCommon Class A	Common StockCommon Class B	Additional Paid In Capital	Accumulated Other Comprehensive Loss	Retained Earnings (Deficit)	Noncontrolling Interest	Total Stockholders Equity Including Noncontrolling Interests	Common Class A	Common Class B	Total
Balance at Dec. 31, 2012	$ 82,734,000										$ 82,734,000
Stock subscriptions	83,000										83,000
Stockbased compensation	586,000										586,000
Distributions to existing owners	(1,768,000)										(1,768,000)
Tax distribution to LLC Unit holders											(33,000)
Net income	(2,984,000)										(2,984,000)
Balance at Dec. 31, 2013	78,651,000										78,651,000
Stockbased compensation	316,000										316,000
Capital contribution	167,000										167,000
Distributions to existing owners	(483,000)										(483,000)
Dividends paid to existing owners	60,000,000										60,000,000
Issuance of Class A common stock (in shares)		5,321,414
Issuance of Class A common stock	$ (311,000)	$ 53,000		$ 96,483,000				$ 96,536,000			96,225,000
Investment of merged entity into Class A shares		$ 4,474,107
Increase In Shares By Investment Of Merged Entity	(3,307,000)	45,000		3,262,000				3,307,000
Issuance of Class A shares to directors		13,639
Class A Stock issued to employees for value			$ 1,000	$ (1,000)
Class A stock issued to employees (in shares)		35,856	39,314
Issuance of Class B shares in Reorganization and Offering	$ (7,940,000)		$ 107,000	7,833,000				$ 7,940,000
Issuance of Class B shares in Reorganization and Offering - Shares			10,741,839
Impact of non-controlling interest upon reorganization				(58,687,000)			$ 58,687,000	(58,687,000)
Effects of Tax Receivable Agreement (See Note 12)				1,992,000				1,992,000			1,992,000
Tax distribution to LLC Unit holders											(9,000)
Adjustment to true up tax effects of merger and reorganization				(343,000)				(343,000)			(343,000)
Stock-based compensation subsequent to IPO				699,000				699,000			699,000
Unrealized loss on interest rate contract					$ (74,000)			(74,000)			(74,000)
Net income											(17,272,000)
Balance at Dec. 31, 2014		$ 98,000	$ 108,000	51,238,000	(74,000)	$ (3,351,000)	51,861,000	48,019,000			99,880,000
Balance at Dec. 31, 2014		9,845,016	10,781,153						9,845,016	10,781,153
Issuance of Class A restricted stock (in shares)		144,330
Issuance of Class A restricted stock		$ 2,000		(2,000)
Issuance of Class A common stock (in shares)		4,270,415
Issuance of Class A common stock		$ 43,000		(43,000)
Purchase of Class B common stock (in shares)			(4,270,415)
Purchase of Class B common stock			$ (43,000)	13,814,000			(13,771,000)	13,771,000
Class A restricted stock withheld on vesting (in shares)		(2,574)
Class A restricted stock withheld on vesting				(238,000)				(238,000)			(238,000)
Stock based compensation				2,819,000				2,819,000			2,819,000
Effects of Tax Receivable Agreement (See Note 12)				17,869,000				17,869,000			17,869,000
Tax distribution to LLC Unit holders						(3,543,000)		(3,543,000)			(3,543,000)
Unrealized loss on interest rate contract					$ 74,000			74,000			74,000
Net income						13,217,000	19,606,000	13,217,000			32,823,000
Balance at Dec. 31, 2015		$ 143,000	$ 65,000	$ 85,457,000		$ 6,323,000	$ 57,696,000	$ 91,988,000			$ 149,684,000
Balance at Dec. 31, 2015		14,257,187	6,510,738						14,257,187	6,510,738

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income (loss)	$ 32,823	$ (17,272)	$ (2,984)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Loss (gain) from the disposal or impairment of assets	68	(42)	207
Realized loss on derivative	92		(112)
Depreciation and amortization	17,875	15,037	7,920
Deferred tax benefit	6,950	(2,147)
Amortization of deferred loan costs	928	891	293
Write-off of deferred loan costs	2,931		440
Provision for bad debts	70,119	$ 32,624	$ 12,077
Gain on contribution to unconsolidated joint venture	(24,250)
Equity in earnings (loss) of unconsolidated joint venture	(8,927)	$ 900
Distribution from unconsolidated joint venture	4,200
Stock-based compensation	2,819	1,015	$ 586
Changes in operating assets and liabilities:
Restricted cash	4,795	(4,501)	(294)
Accounts receivable	(98,651)	(54,159)	(18,107)
Other receivables and current assets	(10,712)	(8,248)	(1,757)
Medical supplies inventory	(1,720)	(2,793)	(850)
Other long-term assets	(717)	63	(79)
Accounts payable and accrued expenses	2,407	7,413	5,632
Accrued compensation	9,676	4,363	3,883
Deferred rent	2,375	2,158	17
Net cash provided by (used in) operating activities	13,081	(24,698)	6,872
Cash flows from investing activities:
Investment in unconsolidated joint venture		(3,000)
Deposits	544	(1,022)	(413)
Proceeds from sale of property and equipment	1,535	2,003	1,814
Capital expenditures	(7,421)	(47,429)	(46,048)
Net cash used in investing activities	(5,342)	(49,448)	(44,647)
Cash flows from financing activities:
Proceeds from initial public offering, net of underwriters fees and expenses	360,420	96,226
Purchase of limited liability units from LLC Unit holders	(360,420)
Proceeds from long-term borrowings	184,000	99,457	102,000
Payment of deferred loan costs	(5,484)	(751)	(4,954)
Payments on borrowings	(168,358)	(70,380)	(50,855)
Payment of capital lease obligations	(81)	(57)	(5)
Payment to terminate interest rate swap			(421)
Payments of dividends		(60,000)
Tax distribution to LLC Unit holders	(3,543)	(9)	(33)
Restricted stock forfeited on vesting to satisfy withholding requirements	(238)
Contribution from original owner		167	83
Net cash provided by financing activities	6,296	64,653	45,815
Net increase (decrease) in cash and cash equivalents	14,035	(9,493)	8,040
Cash, beginning of period	2,002	11,495	3,455
Cash, end of period	$ 16,037	$ 2,002	$ 11,495

ORGANIZATION

ORGANIZATION	12 Months Ended
	Dec. 31, 2015
ORGANIZATION
Organization	NOTE 1— ORGANIZATION Adeptus Health Inc. (the "Company") was incorporated as a Delaware corporation on March 7, 2014 for the purpose of facilitating an initial public offering of common equity. The Company is a holding company with its sole material asset being a controlling equity interest in Adeptus Health LLC (“Adeptus Health”). As the sole managing member of Adeptus Health LLC, the Company operates and controls all of the business and affairs of Adeptus Health LLC and, through Adeptus Health LLC and its subsidiaries, conducts its business. Prior to the initial public offering, the Company had not engaged in any business or other activities except in connection with its formation and the initial public offering . Adeptus Health is a leading patient-centered healthcare organization expanding access to the highest quality emergency medical care through its network of freestanding emergency rooms and partnerships with premier healthcare providers. In Texas, Adeptus Health or its predecessors began operations in 2002 and owns and operates First Choice Emergency Room. In Colorado, in partnership with University of Colorado Health, Adeptus Health operates UCHealth Emergency Room. Together with Dignity Health, the Company operates Dignity Health Arizona General Hospital and freestanding emergency departments in Arizona. Adeptus Health is the largest network of freestanding emergency rooms in the United States, delivering both major and minor emergency medical services for adult and pediatric patients . Adeptus Health has experienced rapid growth in recent periods, growing from 14 freestanding facilities at the end of 2012 to 81 freestanding facilities and two fully licensed general hospitals as of December 31, 2015. In Texas, the Company’s facilities are currently located in Houston, Dallas/Fort Worth, San Antonio and Austin. In Colorado, facilities are located in Colorado Springs and Denver. In Arizona, Dignity Health Arizona General Hospital, a full service general hospital, along with its freestanding emergency departments are located in the Phoenix market. On June 24, 2014, the Company’s registration statement on Form S-1 (File No. 333-196142) relating to its initial public offering of Class A common stock was declared effective by the Securities and Exchange Commission (“SEC”). The Company sold 4,900,000 shares of Class A common stock in its public offering. An additional 735,000 shares were sold to the public , of which 313,586 shares were sold by a significant stockholder and 421,414 shares were sold by the Company with the proceeds received by the Company used to purchase an equivalent number of LLC Units from such significant stockholder . The Company’s stock began trading on the New York Stock Exchange on June 25, 2014 under the symbol “ADPT,” and the initial public offering closed on June 30, 2014. In connection with the initial public offering, the limited liability company agreement of Adeptus Health LLC was amended and restated to, among other things, modify its capital structure by replacing the different classes of interests previously held by the Adeptus Health LLC owners to a single new class of units called “LLC Units.” In addition, each LLC Unit holder received on a one-for-one basis one share of the Company’s Class B common stock, which entitles the holder to vote on all matters of Adeptus Health Inc. but has no economic rights. One of the then-existing owners converted a portion of its interest into 4,895,521 shares of the Company’s Class A common stock, which is referred to as the merged entity. The Company and its then-existing owners also entered into an exchange agreement under which they have the right to exchange their LLC Units and shares of Class B common stock for shares of Class A common stock on a one -for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications. These transactions are collectively referred to as the “Reorganization Transactions.” Prior to the initial public offering, the Company borrowed under the Senior Secured Credit Facility (See Note 8 Debt for further information) to fund a dividend of $60.0 million to the then-e xisting o wners which was paid in connection with the consummation of the initial public offering. The Company used proceeds from the initial public offering to repay indebtedness under the Senior Secured Credit Facility from this borrowing. In May 2015, an existing stockholder of ADPT (the “Selling Stockholder”) and the Company sold 750,329 and 1,349,671 shares, respectively, of the Company’s Class A common stock in an underwritten public offering at a price of $63.75 per share. In connection with the offering, the underwriters exercised in full their option to purchase an additional 222,625 from the Company and 92,375 from the Selling Stockholder. As a result, the total offering size was 2,415,000 shares of common stock. The Company used the net proceeds from its issuance of and sale of Class A common stock, par value $0.01 per share, to purchase, for cash, 1,572,296 limited liability company units of Adeptus Health LLC, its direct subsidiary, from certain of the unit holders of Adeptus Health LLC, including certain of its directors and executive officers. The Company did not receive any of the proceeds from the sale of shares of common stock of the Company by the Selling Stockholder. In July 2015, the Selling Stockholder and the Company sold 1,079,649 and 2,320,351 shares, respectively, of the Company’s Class A common stock in an underwritten public offering at a price of $105.00 per share. In connection with the offering, the underwriters exercised in full their option to purchase an additional 324,926 from the Company and 185,074 from the Selling Stockholder. As a result, the total offering size was 3,910,000 shares of common stock. The Company used the net proceeds from its issuance of and sale of Class A common stock, par value $0.01 per share, to purchase, for cash, 2,645,277 limited liability company units of Adeptus Health LLC, its direct subsidiary, from certain of the unit holders of Adeptus Health LLC, including certain of its directors and executive officers. The Company did not receive any of the proceeds from the sale of shares of common stock of the Company by the Selling Stockholder . The Company consolidates the financial results of Adeptus Health LLC and its subsidiaries and records non-controlling interest for the economic interest in Adeptus Health LLC held by the non-controlling unit holders. The non-controlling interest ownership percentage as of December 31, 2015 was 31.5% .

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated balance sheets as of December 31, 2015 and 2014 and the accompanying consolidated statements of operations and cash flows for each of the three years ended December 31, 2015, 2014 and 2013 represent our financial position, results of operations and cash flows as of and for the years then ended. The consolidated financial statements include the accounts of Adeptus Health Inc. and its wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. Accounting Policies and Use of Estimates The preparation of financial statements in conformity with GAAP requires our management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant accounting policies and estimates include: the useful lives of fixed assets, revenue recognition, allowances for doubtful accounts, leases, reserves for employee health benefit obligations, stock-based compensation, and other contingencies. Actual results could differ from these estimates. Segment and Geographic Information The Company’s chief operating decision maker is our Chief Executive Officer, who reviews financial information presented on a company-wide basis. As a result, the Company determined that it has a single reporting segment and operating unit structure. All of the Company’s revenue for the years ended December 31, 2015, 2014 and 2013 was earned in the United States. Cash and Cash Equivalents and Concentrations of Risk The Company includes all securities with a maturity date of six months or less at date of purchase as cash equivalents. The Company currently has no cash equivalents. The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant risk related to uninsured bank deposits. Restricted Cash The Company maintained a restricted cash balance through September 2015 to cover letters of credit required by the Master Funding and Development Agreements, as amended, for the first $250.0 million in facility fundings. See Note 11 ( Commitments and Contingencies) for more information. Each letter of credit is issued in an amount equal to approximately 50% of one year's base rent relating to completed facilities. As of December 31, 2014, restri cted cash was $4.8 million. Beginning in October 2015, restricted cash is no longer required as the Company entered into a New Facility with Bank of America, N.A., which includes a revolving credit facility with a sub-limit of $15.0 million for letters of credit. See Note 8 ( Debt ) for more information. Patient Revenue and Accounts Receivable Revenues consist primarily of net patient service revenues, which are based on the facilities’ established billing rates less allowances and discounts, principally for patients covered under contractual programs with private insurance companies. Revenue is recognized when services are rendered to patients. Charges for all services provided to insured patients are initially billed and processed by the patients' insurance provider. The Company has agreements with insurance companies that provide for payments to the Company at amounts different from its established rates or as determined by the patient's out of network benefits. Differences between established rates and those set by insurance programs, as well as charity care, employee and prompt pay adjustments, are recorded as adjustments directly to patient service revenue. Amounts not covered by the insurance companies are then billed to the patients. Estimated uncollectible amounts from insured patients are recorded as bad debt expense in the period the services are provided. Collection of payment for services provided to patients without insurance coverage is done at the time of service. With respect to management and contract service revenues, amounts are recognized as services are provided. The Company is party to two management services agreements under which it provides management services to a hospital facility and freestanding emergency room facilities. As compensation for these services, the Company charges the managed entities a management fee based on a fixed percentage of each entity’s net revenue. The Company also holds minority ownership in these entities . Net patient service revenue by major payor source for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands) : Year ended December 31, 2015 2014 2013 Commercial $ $ $ Self-pay Other — Medicaid — Medicare — Patient Service Revenue Provision for bad debt Net Patient Service Revenue $ $ $ The Company receives payments from third-party payors that have contracts with the Company or the Company uses MultiPlan arrangements whereby the Company accesses third-party payors at in-network rates. Four major third-party payors accounted for 84.6% , 84.8% and 86.7% of patient service revenue for the years ended December 31, 2015, 2014 and 2013, respectively. These same payors also accounted for 65.9% and 80.0% of accounts receivable as of December 31, 2015 and 2014, respectively. The following table sets forth the percentage of patient service revenue earned by major payor source for the years ended December 31, 2015, 2014 and 2013: Year ended December 31, 2015 2014 2013 Payor: United HealthCare % % % Blue Cross Blue Shield Aetna Cigna Other Medicaid/Medicare — — % % % Accounts receivable are reduced by an allowance for doubtful accounts. In establishing the Company's allowance for doubtful accounts, management considers historical collection experience, the aging of the account, the payor classification, and patient payment patterns. Amounts due directly from patients represent the Company's highest collectability risk. There were not any significant changes in the estimates or assumptions underlying the calculation of the allowance for doubtful accounts for the years ended December 31, 2015 and 2014. The Company treats anyone that is emergent. Total charity care was approximately 7.8% , 8.6% and 7.0% of patient service revenue for the years ended December 31, 2015, 2014 and 2013, respectively. Advertising Costs Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2015, 2014 and 2013, was approximately $5.7 million, $5.4 million and $2.1 million, respectively, and is included as a component of general and administrative expenses within the consolidated statements of operations. Medical Supplies Inventory Inventory is carried at the lower of cost or market using the first-in, first-out method and consists of a standard set of medical supplies held in stock at all facilities. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization computed using the straight-line method over the estimated useful life of each asset. Leasehold improvements are amortized over the shorter of the noncancelable lease term or the estimated useful life of the improvements. When assets are retired, the cost and applicable accumulated depreciation are removed from the respective accounts, and the resulting gain or loss is recognized. Expenditures for normal repairs and maintenance are expensed as incurred. Material expenditures that increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset. The estimated useful lives of depreciable fixed assets are as follows: Estimated useful life (in years) Computer equipment 3 to 5 Automobiles Office equipment Medical equipment 5 to 7 Leasehold improvement 4 to 10 Buildings 15 to 40 Amortization of assets acquired under capital leases is included as a component of depreciation and amortization expense in the accompanying consolidated statements of operations. Amortization is calculated using the straight-line method over the shorter of the useful lives or the term of the underlying lease agreements. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset or group of assets might not be recoverable. The Company does not perform a periodic assessment of assets for impairment in the absence of such information or indicators. Conditions that would indicate a potential impairment include a significant decline in the observable market value of an asset or a significant change in the extent or manner in which an asset is used. The impairment review includes a comparison of future projected cash flows generated by the asset or group of assets with its associated net carrying value. If the net carrying value of the asset or group of assets exceeds expected cash flows (undiscounted and without interest charges), an impairment loss is recognized to the extent the carrying amount of the asset exceeds its fair value. There were no impairments recorded for the years ending December 31, 2015, 2014 or 2013. Goodwill In accordance with the FASB ASC 805, Business Combinations , the purchase method of accounting requires that the excess of purchase price paid over the estimated fair value of identifiable tangible and intangible net assets of acquired businesses be recorded as goodwill. In accordance with the provisions of ASC 350, Intangibles—Goodwill and Other , goodwill is tested for impairment annually, and interim impairment tests are performed whenever an event occurs or circumstances change that indicate an impairment has more likely than not occurred. We have one reporting unit and goodwill is evaluated at that level. We evaluate impairment of goodwill by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than the carrying value. If it is concluded that this is the case, it is necessary to perform a two ‑ step impairment test. The first step involves a comparison of the fair value of a reporting unit with its carrying amount. If the carrying value of the reporting unit exceeds its fair value, the second step involves a comparison of the implied fair value and the carrying amount of the goodwill of that reporting unit to determine the impairment charge, if necessary. We have established October 31 as the date for our annual impairment review. The Company estimates the fair value of its total invested capital using an income and market approach, reduced by interest bearing debt as of the valuation date. These valuations require management to make estimates and assumptions regarding industry economic factors and prospective financial information. There were no goodwill impairment charges recorded for the years ended December 31, 2015, 2014 and 2013. Intangible Assets Intangible assets are recorded at their estimated fair values as of the date of acquisition. Intangible assets consist of trade and domain names and noncompete agreements. In accordance with ASC 350, Intangibles—Goodwill and Other , the Company reviews the intangible assets with indefinite lives, which include trade and domain names, at least annually for impairment, or more often if triggering events exist. Intangible assets with definite lives are reviewed for impairment if an indicator of impairment exists similar to long-lived assets. We evaluate impairment of intangible assets by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the asset is less than the carrying value. If it is concluded that this is the case, it is necessary to perform a two ‑ step impairment test. An impairment loss is recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. There were no impairment charges recorded on intangible assets for the years ended December 31, 2015, 2014 and 2013. Intangible assets with finite useful lives are amortized over their estimated useful life. Fair Value of Financial Instruments The carrying amounts of the Company's financial instruments, including cash, receivables, accounts payable and accrued liabilities approximate their fair value due to their relatively short maturities. At December 31, 2015 and 2014, the carrying value of the Company's long-term debt was based on the current interest rates and approximates its fair value. Derivative Instruments and Hedging Activities The Company recognizes all derivative instruments as either assets or liabilities in the balance sheet at their respective fair values. For derivatives not designated as a hedging instrument, changes in the fair value are recorded in net earnings immediately. For derivatives designated in hedging relationships, changes in the fair value are either offset through earnings against the change in fair value of the hedged item attributable to the risk being hedged or recognized in accumulated other comprehensive income, to the extent the derivative is effective at offsetting the changes in cash flows being hedged until the hedged item affects earnings. For the year ended December 31, 2012 and continuing through October 31, 2013, the Company maintained one derivative instrument that it did not designate as a hedge. As a result, changes in the fair value were recorded in earnings for this period. Beginning in November 2013, the Company only enters into derivative contracts that it intends to designate as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). For all hedging relationships, the Company formally documents the hedging relationship and its risk-management objective and strategy for undertaking the hedge, the hedging instrument, the hedged transaction, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method used to measure ineffectiveness. The Company also formally assesses, both at the inception of the hedging relationship and on an ongoing basis, whether the derivatives that are used in hedging relationships are highly effective in offsetting changes in cash flows of hedged transactions. For derivative instruments that are designated and qualify as part of a cash flow hedging relationship, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or years during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. The Company discontinues hedge accounting prospectively when it determines that the derivative is no longer effective in offsetting cash flows attributable to the hedged risk, the derivative expires or is sold, terminated, or exercised or the cash flow hedge is dedesignated because a forecasted transaction is not probable of occurring. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in its fair value in earnings. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately in earnings gains and losses that were accumulated in other comprehensive income related to the hedging relationship. Lease Accounting The Company determines whether to account for its facility leases as operating or capital leases depending on the underlying terms of the lease agreement. This determination of classification is complex and requires significant judgment relating to certain information including the estimated fair value and remaining economic life of the facilities, the Company's cost of funds, minimum lease payments and other lease terms. The lease rates under the Company's lease agreements are subject to certain conditional escalation clauses that are recognized when probable or incurred and are based on changes in the consumer price index or certain operational performance measures. As of December 31, 2015, the Company leased 82 facilities, 81 of which the Company classified as operating leases and one of which the Company classified as a capital lease. Income Taxes We provide for income taxes using the asset and liability method. This approach recognizes the amount of federal, state and local taxes payable or refundable for the current year, as well as deferred tax assets and liabilities for the future tax consequence of events recognized in the consolidated financial statements and income tax returns. Deferred income tax assets and liabilities are adjusted to recognize the effects of changes in tax laws or enacted tax rates. A valuation allowance is required when it is more-likely-than-not that some portion of the deferred tax assets will not be realized. Realization is dependent on generating sufficient future taxable income. We file a consolidated federal income tax return. State income tax returns are filed on a separate, combined or consolidated basis in accordance with relevant state laws and regulations. LPs, LLPs, LLCs and other pass-through entities that we consolidate file separate federal and state income tax returns. We include the allocable portion of each pass-through entity’s income or loss in our federal income tax return. We allocate the remaining income or loss of each pass-through entity to the other partners or members who are responsible for their portion of the taxes. Estimated tax expense (benefit) of approximately $8.7 million , ($1.3) million and $0.7 million are included in the provision for income taxes in the financial statements for the years ended December 31, 2015, 2014 and 2013, respectively. The Company's estimate of the potential outcome of any uncertain tax positions is subject to management's assessment of relevant risks, facts, and circumstances existing at that time. The Company uses a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. To the extent that the Company's assessment of such tax position changes, the change in estimate is recorded in the period in which the determination is made. The Company reports tax related interest and penalties as a component of the provision for income tax and operating expenses, respectively, if applicable. The Company has not recognized any uncertain tax positions. Deferred Rent The Company records rent expense for operating leases on a straight-line basis over the life of the related leases. The Company has certain facility and equipment leases that allow for leasehold improvements allowance, free rent, and escalating rental payments. Straight-line expenses that are greater than the actual amount paid are recorded as deferred rent and amortized over the life of the lease. Variable Interest Entities The Company follows the guidance in ASC 810-10-15-14 in order to determine if we are the primary beneficiary of a variable interest entity (“VIE”) for financial reporting purposes. We consider whether we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether we have the obligation to absorb losses or the right to receive returns that would be significant to the VIE. We consolidate a VIE when we are the primary beneficiary of the VIE. At December 31, 2015, the Company determined that it has one joint venture interest which it considers a VIE for which it is not the primary beneficiary. Accordingly, we account for this investment in joint venture using the equity method. Investment in Unconsolidated Joint Ventures Investments in unconsolidated companies in which the Company exerts significant influence but does not control or otherwise consolidate are accounted for using the equity method. As of December 30, 2015, the Company accounted for 15 freestanding facilities associated with our joint venture with University of Colorado Health and our Arizona hospital and its four freestanding departments associated with our joint venture with Dignity Health using the equity method. The Company has an ownership interest of 49.9% in each joint venture. These investments are included as investment in unconsolidated joint ventures in the accompanying consolidated balance sheets. Equity in earnings of unconsolidated joint ventures consists of (i) the Company’s share of the income (loss) generated from its non-controlling equity investment in one full-service healthcare hospital facility and four freestanding emergency rooms in Arizona, and (ii) the Company’s preferred return and its share of the income (loss) generated from its non-controlling equity investment in 15 freestanding emergency rooms in Colorado. Because the operations are central to the Company’s business strategy, equity in earnings of unconsolidated joint ventures is classified as a component of operating income in the accompanying consolidated statements of operations. The Company has contracts to manage the facilities, which results in the Company having an active role in the operations of the facilities and devoting a significant portion of its corporate resources to the fulfillment of these management responsibilities. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will become effective for the Company on January 1, 2018. Early application is permitted to the original effective date of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In February 2015, the FASB issued ASU No. 2015-02, “ Consolidation: Amendments to the Consolidation Analysis” (Topic 810) . This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. We are currently evaluating the potential impact of this standard on our consolidated financial position, results of operations and cash flows. In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs" (Subtopic 835-30) , which changes the presentation of debt issuance costs in financial statements. ASU No. 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU No. 2015-03 is effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. The Company will implement the provisions of ASU 2015-03 as of January 1, 2016. In November 2015, the FASB issued ASU No. 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ”, which amended the balance sheet classification requirements for deferred income taxes to simplify their presentation in the statement of financial position. The ASU requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This ASU is effective for fiscal years beginning after December 31, 2016, with early adoption permitted. The Company early adopted the provisions of this ASU for the presentation and classification of its deferred tax assets at December 31, 2015 and has reflected the change on the consolidated balance sheet for all periods presented. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842). This new standard establishes a comprehensive new lease accounting model. The new standard clarifies the definition of a lease, requires a dual approach to lease classification similar to current lease classifications, and causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a lease term of more than twelve months. The standard is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial application. We are evaluating the impact of the new standard on our consolidated financial statements. We do not believe any other recently issued, but not yet effective, revisions to authoritative guidance will have a material effect on our condensed consolidated financial position, results of operations or cash flow s.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	NOTE 3—PROPERTY AND EQUIPMENT Property and equipment consisted of the following, as of December 31, 2015 and 2014 ( in thousands ): December 31, December 31, 2015 2014 Leasehold improvements $ $ Computer equipment Medical equipment Office equipment Automobiles Land Construction in progress Buildings Less accumulated depreciation Property and equipment, net $ $ Assets under capital leases totaled approximately $4.2 million as of December 31, 2015 and 2014, respectively, and were included within the buildings component of net property and equipment. Accumulated depreciation associated with these capital lease assets totaled approximately $0.6 million and $0.3 million as of December 31, 2015 and 2014, respectively.

INVESTMENT IN UNCONSOLIDATED JO

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES	12 Months Ended
	Dec. 31, 2015
PROPERTY AND EQUIPMENT
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES	NOTE 4—INVESTMENT IN UNCONSOLIDATED JOINT VENTURES Joint Venture with Dignity Health On October 22, 2014, the Company announced its expansion into Arizona through a joint venture with Dignity Health, one of the nation’s largest health systems. The partnership started with Dignity Health Arizona General Hospital, a full-service general hospital facility in Laveen, Arizona, and includes providing for additional access to emergency medical care in the Phoenix area. As of December 31, 2015, the joint venture with Dignity Health has four freestanding emergency departments in Arizona. Joint Venture with UCHealth On April 21, 2015, the Company announced the formation of a joint venture with UCHealth to enhance access to emergency medical care in Colorado. The Company contributed the 12 existing freestanding emergency rooms it held in Colorado and the related business associated with these facilities to the joint venture. The contribution of the controlling interest in these facilities and their operations was deemed a change of control for accounting purposes, and as such, the Company has recorded a gain of $24.3 million on the contribution of the previously fully owned facilities during the year ended December 31, 2015. As of December 31, 2015, the joint venture had 15 freestanding facilities under the UCHealth partnership. Pursuant to the terms of the joint venture agreement, the Company receives an annual preferred return up to a specified amount on its investment in the joint venture prior to proportionate distributions to the partners. Due to this preferred return provision within the joint venture agreement, this joint venture interest is considered a variable interest entity. Additional terms within the agreement allow for certain decisions to be made in which the Company has determined that it does not have control. As such, the Company concluded that it is not the primary beneficiary of the VIE. Accordingly, the Company accoun ts for this investment in joint venture under the equity method. Joint Venture with Ochsner Health System In September 2015, the Company announced the formation of a new partnership with New Orleans-based Ochsner Health System to enhance access to emergency medical care in Louisiana. The joint venture will include a hospital and multiple freestanding emergency departments in locations still to be determined. This joint venture did not have operations during the year ended December 31, 2015. The Company accounts for each of these joint ventures under the equity method of accounting as an investment in unconsolidated joint ventures, as the Company’s level of influence is significant but does not reach the threshold of controlling the entity. Summarized unaudited financial information for the Company’s equity method investees is as follows ( in thousands ): Year ended December 31, 2015 2014 Net patient service revenue $ $ Total operating expenses Income (loss) from operations Balance sheet information (as of December 31): Current Assets $ $ Noncurrent assets Current Liabilities Noncurrent liabilities — Our investment in unconsolidated joint ventures consists of the following (in thousands): As of December 31, 2015 2014 Beginning balance $ $ — Share of income (loss) Initial investment Gain on contribution — Distributions — Investment in unconsolidated joint ventures $ $

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2015
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 5—GOODWILL AND OTHER INTANGIBLE ASSETS The following table summarizes the change in goodwill during the years ended December 31, 2015 and 2014 (in thousands) : 2015 2014 Balance at beginning of year $ $ Adjustments — — Balance at beginning of year $ $ The following table summarizes the change in intangible assets during the years ended December 31, 2015 and 2014 (in thousands) : Noncompete Trade Domain Agreements Names Names Total Balance at December 31, 2013 $ $ $ $ Additions — — — — Amortization — — Balance at December 31, 2014 $ $ $ $ Additions — — — — Amortization — — Balance at December 31, 2015 $ $ $ $ As of December 31, 2015, the estimated amortization of the noncompete agreements will be $1.3 million for the year ended 2016.

DERIVATIVE INSTRUMENTS AND HEDG

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	12 Months Ended
	Dec. 31, 2015
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	NOTE 6—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company used interest-rate-related derivative instruments to manage its exposure related to changes in interest rates on its variable-rate debt instruments. The Company does not enter into derivative instruments for any purpose other than cash flow hedging. The Company does not speculate using derivative instruments. By using derivative financial instruments to hedge exposures to changes in interest rates, the Company expose s itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative contract is negative, the Company owes the counterparty, and therefore, the Company is not exposed to the counterparty's credit risk in those circumstances. The Company minimizes counterparty credit risk in derivative instruments by entering into transactions with high-quality counterparties whose credit rating is higher than Aa. The derivative instruments entered into by the Company do not contain credit-risk-related contingent features. Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates, currency exchange rates, or commodity prices. The market risk associated with interest-rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. The Company assesses interest rate risk by continually identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities. The Company maintains risk management control systems to monitor interest rate risk attributable to both the Company's outstanding or forecasted debt obligations as well as the Company's offsetting hedge positions. The risk management control systems involve the use of analytical techniques, including cash flow sensitivity analysis, to estimate the expected impact of changes in interest rates on the Company's future cash flows. Changes in the fair value of interest rate swaps and cap agreements designated as hedging instruments that effectively offset the variability of cash flows associated with variable-rate, long-term debt obligations are reported in accumulated other comprehensive income. These amounts subsequently are reclassified into interest expense as a yield adjustment of the hedged interest payments in the same period in which the related interest affects earnings. In May 2012, the Company entered into a forward interest rate swap agreement with a notional amount of $24.0 million to manage exposure to changes in interest rates associated with its variable interest rate debt. This agreement had the economic effect of modifying the LIBOR variable component of the Company's interest rate on an equivalent amount of the Company's Term Loan to a fixed rate of 1.20% . This swap agreement was not designated by the Company as a hedge as of December 31, 2013. The Company did not utilize the swap agreement until April 30, 2013. The Company recognized a loss of approximately $0.1 million for the year ended December 31, 2013 on the change in fair value of the swap agreement, which is included as a component of other (expense) income within the consolidated statements of operations. As of December 31, 2015, the Company maintained one interest rate cap agreement with notional amount totaling $37.5 million. This agreement has the economic effect of capping the LIBOR variable component of the Company's interest rate at a maximum of 3.00% on an equivalent amount of the Company's Term Loan debt. The cap agreement does not contain credit-risk contingent features. In October 2015, the Company extinguished the debt related to the existing Credit Facility, and reclassified losses of $0.1 million from accumulated other comprehensive income into earnings. The interest rate cap agreement was terminated on January 4, 2016. The following table summarizes the Company's derivative instruments (in thousands) : December 31, December 31, 2015 2014 Balance Sheet Location Fair Value Fair Value Derivative designated as hedging instruments Interest rate contracts Other long-term assets $ — $

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2015
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	NOTE 7—ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consisted of the following (in thousands) : December 31, December 31, 2015 2014 Accounts payable $ $ Accrued expenses Accrued tax distribution to LLC Unit holders Other Total accounts payable and accrued expenses $ $

DEBT

DEBT	12 Months Ended
	Dec. 31, 2015
DEBT
DEBT	NOTE 8—DEBT The components of debt consisted of the following (in thousands) : December 31, December 31, 2015 2014 Term loan $ $ Delayed draw term loan — Revolving credit — Other financing agreements Less current maturities $ $ On October 31, 2013, the Company entered into a Senior Secured Credit Facility (the “Facility”) for a $75.0 million term loan which matures on October 31, 2018. The Facility includes an additional $165.0 million delayed draw term loan commitment, which expired in April 2015, and a $10.0 million revolving commitment that matures on October 31, 2018. All of the Company's assets are pledged as collateral under the Facility. The borrowing under the Facility is used by the Company to provide financing for working capital, capital expenditures and for new facility expansion and replaced an existing credit facility. On March 31, 2014, the Company amended the Facility to, among other things, increase the maximum aggregate amount permitted to be funded by Medical Properties Trust (“MPT”) under the MPT Agreements to $250.0 million . See Note 11 ( Commitments and Contingencies ) for more information. On June 11, 2014, the Company entered into a second amendment to the Facility to, among other things, provide for a borrowing under the delayed draw term loan in an aggregate principal amount of up to $75.0 million, up to $60 .0 million in principal amount of which will be used to make specified distributions and up to $10 .0 million in principal amount of which will be used to repay certain revolving loans. On June 11, 2014, the Company drew $75.0 million and made the $ 60.0 million dividend distribution on June 24, 2014. On April 20, 2015, the Company amended the Facility to, among other things, increase the maximum aggregate amount permitted to be funded by MPT under the MPT Agreements to $500.0 million. Borrowings under the Facility bear interest, at our option, at a rate equal to an applicable margin over (a) a base rate determined by reference to the highest of (1) the prime rate , (2) the federal funds effective rate plus 0.50% and (3) LIBOR for an interest period of one month plus 1% , or (b) LIBOR for the applicable interest period. The margin for the Facility is 6.50% in the case of base rate loans and 7.50% in the case of LIBOR loans. The Facility includes an unused line fee of 0.50% per annum on the revolving commitment and delayed draw term loan commitment, a draw fee of 1.0% of the principal amount of each borrowing on the delayed draw term loan and an annual Agency fee of $0.1 million. In April 2015, the Company drew $30.0 million on the delayed draw term loan prior to its expiration. At December 31, 2014, the Company had $80.2 million available under the delayed draw term commitment, and $4.0 million available under the revolving commitment, respectively. On October 6, 2015, the Company entered into a senior secured credit facility (the “New Facility”) for a $125.0 million term loan and a $50.0 million revolving facility. The New Facility matures on October 6, 2020 . The revolving credit facility includes a sub-limit of $15.0 million for letters of credit and a sub-limit of $5.0 million for swing line loans. In addition, the New Facility contains an option to borrow up to an additional $50.0 million under certain conditions. All of the assets of the Company’s subsidiaries are pledged as collateral under the New Facility, and such subsidiaries guarantee the New Facility. Borrowings under the New Facility replace the Company’s existing credit facility and will be used by the Company to provide financing for working capital and capital expenditures. Borrowings under the New Facility bear interest, at our option, at a rate equal to an applicable margin over (a) a base rate determined by reference to the highest of (1) the prime rate, (2) the federal funds effective rate plus 0.50% and (3) LIBOR for an interest period of one month plus 1% , or (b) LIBOR for the applicable interest period. The applicable margin for the New Facility ranges, based on our consolidated net leverage ratio, from 2.25% to 3.00% in the case of base rate loans and from 3.25% to 4.00% in the case of LIBOR loans. The New Facility includes an unused line fee ranging, based on our consolidated net leverage ratio, from 0.40% to 0.50% per annum on the revolving commitment. The Company had $39.8 million available under the revolving commitment at December 31, 2015. The Facility contains certain affirmative covenants, negative covenants, and financial covenants which are measured on a quarterly basis. As of December 31, 2015, the Company was in compliance with all covenant requirements. In conjunction with entering into the New Facility, the Company incurred a $5.0 million loss, consisting of a prepayment premium of $2.1 million and write off of deferred loan costs of $2.9 million, on the extinguishment of debt related to previously capitalized costs from its previous debt agreements. In 2015, the Company entered into finance agreements totaling approximately $2.4 million to finance the renewal of certain insurance policies. The finance agreements have fixed interest rates ranging between 2.49% and 3.50% with principal being repaid over 9 to 11 months. In 2014, the Company entered into finance agreements totaling approximately $1.9 million to finance the renewal of certain insurance policies. The finance agreements have fixed interest rates ranging between 2.49% and 3.25% with principal being repaid over 9 to 11 months. In October 2013, the Company renewed certain insurance policies and entered into a finance agreement totaling approximately $0.8 million. The finance agreement has a fixed interest rate of 1.93% with principal being repaid over 9 months. Future Maturities Scheduled future aggregate maturities of principal of long-term debt are as follows: ( in thousands ): Years ending December 31, Amount 2016 $ 2017 2018 2019 2020 Total $

TRANSACTIONS WITH RELATED PARTI

TRANSACTIONS WITH RELATED PARTIES	12 Months Ended
	Dec. 31, 2015
TRANSACTIONS WITH RELATED PARTIES
TRANSACTIONS WITH RELATED PARTIES	NOTE 9—TRANSACTIONS WITH RELATED PARTIES The Company made payments to a significant shareholder of the Company for management services related to an advisory services agreement and reimbursement of certain expenses. The total amount paid to this related party was approximately $24,000 , $0.8 million and $0.6 million for the years ended December 31, 2015, 2014 and 2013, respectively. In connection with the consummation of the initial public offering, the advisory services agreement was terminated and the Company paid a one-time termination payment fee of $2.0 million in July 2014. The Company made payments for contractor services to various related-party vendors, which totaled approximately $ 0.2 million, $0.1 million and $0.06 million for the years ended December 31, 2015, 2014 and 2013, respectively.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2015
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS	NOTE 10—EMPLOYEE BENEFIT PLANS The Company provides a 401(k) savings plan to all employees who have met certain eligibility requirements, including performing / one month of service with the Company. The 401(k) plan permits matching and discretionary employer contributions. During the years ended December 31, 2015 and 2014, the Company contributed approximately $0.9 million and $0.5 million to the 401(k) Plan for 2014 and 2013 matching contributions, respectively. The board of directors approved a contribution of $1.7 million for the year ended December 31, 2015, which will be paid during 2016 .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 11—COMMITMENTS AND CONTINGENCIES Litigation and Asserted Claims The Company is a party to various legal proceedings arising in the ordinary course of business. While, management believes the outcome of pending litigation and claims will not have a material adverse effect on the Company's consolidated financial condition, operations, or cash flows, litigation is subject to inherent uncertainties. Insurance Arrangements The Company is self-insured for employee health benefits. Accruals for losses are provided based upon claims experience and actuarial assumptions, including provisions for incurred but not reported losses. At December 31, 201 5 and 201 4 , the Company has an accrual of approximately $0.8 million and $0.7 million, respectively , for incurred but not reported claims, which is included in accrued compensation within the consolidated balance sheets. The Company is insured for worker's compensation claims up to $1.0 million per accident and per employee with a policy limit of $1.0 million. The Company submits periodic payments to its insurance broker based upon estimated payroll. Worker's compensation expense for the years ended December 31, 2015, 2014 and 2013 was approxima tely $0.3 million, $0.3 million and $0.07 million , respectively. The Company is insured for professional liability claims up to $1.0 million per incident and $3.0 million per facility with an aggregate policy limit of $20.0 million. Leases The Company leases certain medical facilities and equipment under various noncancelable operating leases. In June 2013, the Company entered into an initial MPT Agreement (the “Initial MPT Agreement”) with an affiliate of Medical Properties Trust (“ MPT ”) to fund future facilit y development and construction . The lessor to the MPT Agreement will acquire parcels of land, fund the ground-up construction of new freestanding emergency room facilities and lease the facilities to the Company upon completion of construction. Under the terms of the agreement, the lessor is to fund all hard and soft costs, including the project purchase price, closing costs and pursuit costs for the assets relating to the construction of up to twenty-five facilities with a maximum aggregate funding of $100.0 million. Each completed project will be leased for an initial term of 15 years, with three 5 -year renewal options. The Company follows the guidance in ASC 840, Leases , and ASC 810, Consolidation, in evaluating the lease as a build-to-suit lease transaction to determine whether the Company would be considered the accounting owner of the facilities during the construction period. In applying the accounting guidance, the Company concluded that the one facility completed in 2013 under this arrangement qualified for capitalization. In July 2014, the Company entered into an additional Master Funding and Development Agreement (the “Additional MPT Agreement” and, together with the Initial MPT Agreement, the “MPT Agreements”) with MPT to fund future new freestanding emergency rooms and hospitals . This agreement is separate from and in addition to the Company’s Initial MPT Agreement. The Additional MPT A greement allows for an additional maximum aggregate funding of $150.0 million. All other material terms remain consistent with the Initial MPT Agreement. On April 20, 2015, the Company entered into an amendment to the Additional MPT Agreement which adds an additional aggregate funding of $250.0 million, increasing the maximum aggregate funding under all of the MPT Agreements to $500.0 million. All newly constructed facilities under the MPT Agreements will have initial terms of 15 years, with three five -year renewal options. In addition to the MPT Agreements, the Company has entered into similar agreements with certain developers to fund and lead the development efforts on the construction of future facilities. As of December 30, 2015, the Company had total receivables of $12.2 million from the lessor to the MPT agreements and certain other developers for soft costs incurred for facilities currently under development . The Company leases approximately 80,000 square feet for its corporate headquarters. Lease expense associated with this lease was $1.6 million, $1.4 million and $0.7 million for the years ended December 31, 2015, 2014 and 2013, respectively . In November 2015, the Company extended the lease term through August 2021 for its corporate headquarters. F uture minimum lease payments required under noncancelable operating leases and future minimum, capital lease payments as of December 31, 2015 were as follows (in thousands) : Capital Operating Years ending December 31, leases leases 2016 $ $ 2017 2018 2019 2020 Thereafter Total future minimum lease payments $ $ Less: Amounts representing interest Present value of minimum lease payments Current portion of capital lease obligations Long-term portion of capital lease payments $ Rent expense totaled approxim ately $31.1 million, $15.2 million and $4.5 million for the years ended December 31, 2015, 2014 and 2013, respectively and is included as a component of other operating expenses within the Consolidated Statements of Operations. The Company has sublease agreements with the joint ventures in Arizona and Colorado, under which the Company subleases certain freestanding emergency room facilities, ground leases and equipment leases to the joint ventures. Under these agreements, the Company received $10.8 million and $0.4 million during the years ended December 3 1, 2015 and 2014, respectively, as rental income which is accounted for as a reduction of rent expense. In January 2013, the Company entered into a termination agreement with the landlord of the leased facility in Georgetown, Texas. Under the termination agreement, the landlord and the Company mutually released the other from any further obligations under the lease and any liability, cause of action, claim, or loss arising out of or connected with the lease. In accordance with the termination agreement, the Company paid the landlord a lease termination fee of $0.2 million .

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	12 Months Ended
	Dec. 31, 2015
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION	NOTE 12— SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information and supplemental noncash activities consisted of the following for the years ended December 31, 2015, 2014 and 2013 (in thousands) : December 31, December 31, December 31, 2015 2014 2013 Supplemental cash flow information: Interest paid $ $ $ Taxes paid Supplemental noncash activities: Acquisition of property and equipment in accounts payable and accrued expenses $ — $ $ Assets acquired through capital lease — Note payable for other financing agreements Contribution of assets to joint venture — — Effects of tax receivable agreement — Accrual of owner distributions —

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	12 Months Ended
	Dec. 31, 2015
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION	NOTE 13—STOCK BASED COMPENSATION In connection with the initial public offering, the Company’s Board of Directors adopted the Adeptus Health Inc. 2014 Omnibus Incentive Plan (the “2014 Plan”). The Omnibus Incentive Plan provides for the granting of stock options, restricted stock and other stock-based or performance-based awards to directors, officers, employees, consultants and advisors of the Company and its affiliates. The total number of shares of Class A common stock that may be issued under the Omnibus Incentive Plan is 1,033,500 . On June 24, 2014, the Company granted 11,934 restricted Class A shares to its non-employee directors under the Omnibus Incentive Plan, representing the prorated amount of the directors’ annual equity award for fiscal 2014. These restricted shares vested on January 1, 2015. In July 2014, the Company granted to certain employees 35,856 restricted Class A shares, which vest over 4 years. For the year ended December 31, 2015, the Company granted 149,741 restricted Class A shares to certain employees and non-employee directors, which vest over 6 months to 4 years. The weighted average grant date-fair value of restricted Class A shares granted during the years ended December 31, 2015 and 2014 was $37.10 and $24.33 per share, respectively. At December 31, 2015, 1 70 , 521 of these restricted Class A shares remained unvested. Compensation expense for time-based restricted share awards is recognized over the vesting period on a straight-line basis, adjusted for estimated forfeitures. The 2014 Plan allowed for the grant of incentive stock options intended to qualify under Section 422 of the Internal Revenue Code (the “IRC”). The Company granted 30,000 stock options with an exercise price of $86.80 , which vest quarterly over three years and expire ten years from the date of grant. All outstanding stock options were unvested as of December 31, 2015. As of December 31, 2015, there was $4.7 million of unrecognized stock-based compensation expense related to outstanding unvested restricted Class A shares and stock option awards. That cost is expected to be recognized over a weighted average period of 2.0 years. The Company also has one legacy equity-compensation plan, under which it has issued agreements awarding incentive units (restricted units) in the Company to certain employees and non-employee directors. In conjunction with the Reorganization Transactions, these restricted units were replaced with LLC Units with consistent restrictive terms. The restricted units are subject to such conditions as continued employment, passage of time and/or satisfaction of performance criteria as specified in the agreements. The restricted units vest over 3 to 4 years from the date of grant. The Company used a waterfall calculation, based on the capital structure and payout of each class of debt and equity, and a present value pricing model less marketability discount to determine the fair values of the restricted units. The assumptions used in the price simulation model for units granted during 2013 include risk-free interest rates of 0.93% , volatility of 25.0% and a dividend rate of 0% . The weighted average fair value of incentive units granted during the year ended December 31, 2013 was $1,262 and $384 for the time-based and performance based units, respectively. The assumptions used for the 2012 incentive units included a risk-free interest rate of 0.72% , volatility of 30.0% and a dividend yield of 0% . The weighted average fair value of incentive units granted during 2012 was $204 and $37 for the time-based and performance based units, respectively. The Company has not issued any incentive units under the legacy plan since 2013. The Company recorded compensation expense of $2.7 million, $1.0 million, and $0.6 million, adjusted for forfeitures, during the years ended December 31, 2015, 2014 and 2013, respectively, related to restricted units and stock options with time-based vesting schedules. Compensation expense for the value of the portion of the time-based restricted unit that is ultimately expected to vest is recognized using a straight-line method over the vesting period, adjusted for forfeitures. On February 18, 2015, our Board of Directors accelerated the vesting of all performance based units. As a result of the acceleration, the Company recognized $0.1 million of additional stock-based compensation expense for the year ended December 31, 2015.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure
INCOME TAXES	NOTE 14— INCOME TAXES The components of our (benefit) provision for income taxes were as follows ( in thousands ): 2015 2014 2013 Current: Federal $ - $ - $ - State Total current taxes Deferred: Federal - State - Total deferred taxes - Total income tax (benefit) provision $ $ $ The reconciliation of our income tax (benefit) expense computed at the U.S. federal statutory tax rate to the actual income tax (benefit) expense is as follows (in thousands ): 2015 2014 2013 Expense derived by applying the federal income tax rate to income (loss) before taxes $ $ $ Tax applicable to pass-through entities - State income tax, net of federal benefit - Nondeductible expenses - Provision (benefit) for income taxes $ $ $ - Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows ( in thousands ): 2015 2014 Deferred tax assets TRA liability $ $ Investment in partnership Net operating loss carryforwards State net operating loss carryforwards Total deferred tax assets $ 206,265 $ 34,084 Prior to the Reorganization, we were not a federal taxpayer. The Company’s effective tax rate for the period differs from the statutory rates due primarily to state taxes that are not based on pre-tax income/(loss) but on gross margin resulting in state tax expense with little relation to pre-tax income even in periods of pretax losses . Our management evaluates the realizability of the deferred tax assets and determines whether it is more likely than not that the deferred tax assets are realizable. We consider whether a valuation allowance is needed on our deferred tax assets by evaluating all positive and negative evidence relative to our ability to recover deferred tax assets, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. During 2014, we were able to conclude that given our performance, the forecast of future income and the realization of our deferred tax asset was more likely than not . As such, we did not record a valuation allowance for t he period. This determination was based on an estimated forecast of future taxable income which includes many judgments and assumptions. Accordingly, it is at least reasonably possible for future changes in one or more assumptions may lead to a change in judgment regarding the necessity of a valuation allowance required in future periods. Our largest deferred tax asset is related to our investment in partnership of $ 136.1 million. This deferred tax asset is a result of the differences between the book and tax basis in Adeptus Health LLC, which is the partnership that operates our facilities. A second component of the deferred tax asset is related to the Tax Receivable Agreement (noted below) liability of $ 65.9 million. As the Company becomes profitable, the deferred tax asset related to this liability will be reduced. The final component of the deferred tax asset is the federal net operating loss carryforwards of $4.2 million. The federal net operating losses will begin to expire in 2034. The net operating loss carryforward is primarily related to depreciation and amortization deductions . The gross amount of the federal net operating loss carryforward was $12.0 million at December 31, 2015. A cumulative change in ownership among material shareholders, as defined in Section 382 of the Internal Revenue Code, during a three-year period may limit the utilization of the federal net operating loss carryforwards. At this time, the Company is not subject to the Section 382 limitation; however the Company may be subject to this limitation depending on the extent and timing of change in ownership in the future. Uncertain Tax Positions At December 31, 201 5 , the Company has not identified or accrued for any uncertain tax positions. Our policy is to include interest and penalties related to uncertain tax positions, and as of December 31, 201 5 , there were no accrued interest and penalties. We file tax returns in the U.S. federal jurisdiction and state jurisdictions where we have facilities and operations. We are not currently under audit for fed eral or any state jurisdictions; however, our 2011 (Texas only) – 2014 tax returns remain open for examination. Tax Receivable Agreement Upon the consummation of the Company’s initial public offering, the Company entered into a tax receivable agreement with the LLC Unit holders after the closing of the offering that provides for the payment from time to time by the Company to the LLC Unit holders of 85% of the amount of the benefits, if any, that the Company is deemed to realize as a result of increases in tax basis and certain other tax benefits related to exchanges of LLC Units pursuant to the exchange agreement, including tax benefits attributable to payments under the tax receivable agreement. These payment obligations are obligations of the Company ; however, payments to LLC Unit holders will only be paid as tax benefits for the Company are realized. For purposes of the tax receivable agreement, the benefit deemed realized by the Company was computed by comparing its actual income tax liability (calculated with certain assumptions) to the amount of such taxes that the Company would have been required to pay had there been no increase to the tax basis of the assets of Adeptus Health LLC as a result of the exchanges and had the Company not entered into the tax receivable agreement. The step-up in basis will depend on the fair value of the LLC Units at conversion. As of December 31, 201 5 , the Company has recorded an estimated payable pursuant to the tax receivable agreement of $191.3 million related to exchanges of LLC Units in connection with public offering s and other exchanges that are expected to give rise to certain tax benefits in the future.

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	12 Months Ended
	Dec. 31, 2015
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE	NOTE 15— NET INCOME ( LOSS ) PER SHARE Prior to the consummation of the Company’s initial public offering, the Company did not have outstanding common stock. However, in conjunction with the closing of the initial public offering, an existing owner exchanged their LLC Units for shares of the Company’s Class A common stock . Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by using the weighted average number of common shares outstanding, including potential dilutive shares of common stock assuming the dilutive effect of outstanding stock options and restricted stock using the treasury stock method. The following table sets forth the computation of basic and diluted net income ( loss ) per common share (in thousands, except share and per share data) : Year ended December 31, 2015 2014 Numerator: Net income (loss) attributable to Adeptus Health Inc. $ $ Denominator: Denominator for basic net income (loss) per Class A common share-weighted average shares Effect of dilutive securities: Restricted shares — — Denominator for diluted net income (loss) per Class A common share-weighted average shares Net income (loss) attributable to Adeptus Health Inc. per Class A common share - Basic $ $ Net income (loss) attributable to Adeptus Health Inc. per Class A common share - Diluted $ $ Earnings per share information is not applicable for reporting periods prior to the initial public offering. The shares of Class B common stock do not share in the earnings or losses of Adeptus Health Inc. and are therefore not participating securities. Accordingly, basic and diluted net loss per share of Class B common stock has not been presented.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 16—SUBSEQUENT EVENTS In February 2016, the Company announce d its expansion into Ohio and a new partnership with Mount Carmel Health Syste m. The partnership will construct and operate freestanding emerg ency rooms in the Columbus area.

SELECTED QUARTERLY FINANCIAL DA

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2015
Selected Quarterly Financial Data
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED)	NOTE 17—SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) The following table presents certain unaudited quarterly statement of operations data for the years ended December 31, 201 5 and 201 4 . Results of operations for any particular quarter are not necessarily indicative of results of operations for a full year or predictive of future periods. Three months ended December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2015 2015 2015 2015 2014 2014 2014 2014 (in thousands, except per share data) Patient service revenue $ $ $ $ $ $ $ $ Provision for bad debt Net patient service revenue Management and contract services revenue — — — Total net operating revenue Income (loss) from operations Net income (loss) Less: Net income (loss) attributable to non-controlling interest Net income (loss) attributable to Adeptus Health Inc. $ $ $ $ $ $ $ $ — Net income (loss) per share of Class A common stock: Basic and Diluted $ $ $ $ $ $ $ $ —

SUMMARY OF SIGNIFICANT ACCOUN25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying consolidated balance sheets as of December 31, 2015 and 2014 and the accompanying consolidated statements of operations and cash flows for each of the three years ended December 31, 2015, 2014 and 2013 represent our financial position, results of operations and cash flows as of and for the years then ended. The consolidated financial statements include the accounts of Adeptus Health Inc. and its wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation.
Accounting Policies and Use of Estimates	Accounting Policies and Use of Estimates The preparation of financial statements in conformity with GAAP requires our management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant accounting policies and estimates include: the useful lives of fixed assets, revenue recognition, allowances for doubtful accounts, leases, reserves for employee health benefit obligations, stock-based compensation, and other contingencies. Actual results could differ from these estimates.
Segment and Geographic Information	Segment and Geographic Information The Company’s chief operating decision maker is our Chief Executive Officer, who reviews financial information presented on a company-wide basis. As a result, the Company determined that it has a single reporting segment and operating unit structure. All of the Company’s revenue for the years ended December 31, 2015, 2014 and 2013 was earned in the United States.
Cash and Cash Equivalents and Concentrations of Risk	Cash and Cash Equivalents and Concentrations of Risk The Company includes all securities with a maturity date of six months or less at date of purchase as cash equivalents. The Company currently has no cash equivalents. The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant risk related to uninsured bank deposits.
Restricted Cash	Restricted Cash The Company maintained a restricted cash balance through September 2015 to cover letters of credit required by the Master Funding and Development Agreements, as amended, for the first $250.0 million in facility fundings. See Note 11 ( Commitments and Contingencies) for more information. Each letter of credit is issued in an amount equal to approximately 50% of one year's base rent relating to completed facilities. As of December 31, 2014, restri cted cash was $4.8 million. Beginning in October 2015, restricted cash is no longer required as the Company entered into a New Facility with Bank of America, N.A., which includes a revolving credit facility with a sub-limit of $15.0 million for letters of credit. See Note 8 ( Debt ) for more information.
Patient Revenue and Accounts Receivable	Patient Revenue and Accounts Receivable Revenues consist primarily of net patient service revenues, which are based on the facilities’ established billing rates less allowances and discounts, principally for patients covered under contractual programs with private insurance companies. Revenue is recognized when services are rendered to patients. Charges for all services provided to insured patients are initially billed and processed by the patients' insurance provider. The Company has agreements with insurance companies that provide for payments to the Company at amounts different from its established rates or as determined by the patient's out of network benefits. Differences between established rates and those set by insurance programs, as well as charity care, employee and prompt pay adjustments, are recorded as adjustments directly to patient service revenue. Amounts not covered by the insurance companies are then billed to the patients. Estimated uncollectible amounts from insured patients are recorded as bad debt expense in the period the services are provided. Collection of payment for services provided to patients without insurance coverage is done at the time of service. With respect to management and contract service revenues, amounts are recognized as services are provided. The Company is party to two management services agreements under which it provides management services to a hospital facility and freestanding emergency room facilities. As compensation for these services, the Company charges the managed entities a management fee based on a fixed percentage of each entity’s net revenue. The Company also holds minority ownership in these entities . Net patient service revenue by major payor source for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands) : Year ended December 31, 2015 2014 2013 Commercial $ $ $ Self-pay Other — Medicaid — Medicare — Patient Service Revenue Provision for bad debt Net Patient Service Revenue $ $ $ The Company receives payments from third-party payors that have contracts with the Company or the Company uses MultiPlan arrangements whereby the Company accesses third-party payors at in-network rates. Four major third-party payors accounted for 84.6% , 84.8% and 86.7% of patient service revenue for the years ended December 31, 2015, 2014 and 2013, respectively. These same payors also accounted for 65.9% and 80.0% of accounts receivable as of December 31, 2015 and 2014, respectively. The following table sets forth the percentage of patient service revenue earned by major payor source for the years ended December 31, 2015, 2014 and 2013: Year ended December 31, 2015 2014 2013 Payor: United HealthCare % % % Blue Cross Blue Shield Aetna Cigna Other Medicaid/Medicare — — % % % Accounts receivable are reduced by an allowance for doubtful accounts. In establishing the Company's allowance for doubtful accounts, management considers historical collection experience, the aging of the account, the payor classification, and patient payment patterns. Amounts due directly from patients represent the Company's highest collectability risk. There were not any significant changes in the estimates or assumptions underlying the calculation of the allowance for doubtful accounts for the years ended December 31, 2015 and 2014. The Company treats anyone that is emergent. Total charity care was approximately 7.8% , 8.6% and 7.0% of patient service revenue for the years ended December 31, 2015, 2014 and 2013, respectively.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2015, 2014 and 2013, was approximately $5.7 million, $5.4 million and $2.1 million, respectively, and is included as a component of general and administrative expenses within the consolidated statements of operations.
Medical Supplies Inventory	Medical Supplies Inventory Inventory is carried at the lower of cost or market using the first-in, first-out method and consists of a standard set of medical supplies held in stock at all facilities.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization computed using the straight-line method over the estimated useful life of each asset. Leasehold improvements are amortized over the shorter of the noncancelable lease term or the estimated useful life of the improvements. When assets are retired, the cost and applicable accumulated depreciation are removed from the respective accounts, and the resulting gain or loss is recognized. Expenditures for normal repairs and maintenance are expensed as incurred. Material expenditures that increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset. The estimated useful lives of depreciable fixed assets are as follows: Estimated useful life (in years) Computer equipment 3 to 5 Automobiles Office equipment Medical equipment 5 to 7 Leasehold improvement 4 to 10 Buildings 15 to 40 Amortization of assets acquired under capital leases is included as a component of depreciation and amortization expense in the accompanying consolidated statements of operations. Amortization is calculated using the straight-line method over the shorter of the useful lives or the term of the underlying lease agreements.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset or group of assets might not be recoverable. The Company does not perform a periodic assessment of assets for impairment in the absence of such information or indicators. Conditions that would indicate a potential impairment include a significant decline in the observable market value of an asset or a significant change in the extent or manner in which an asset is used. The impairment review includes a comparison of future projected cash flows generated by the asset or group of assets with its associated net carrying value. If the net carrying value of the asset or group of assets exceeds expected cash flows (undiscounted and without interest charges), an impairment loss is recognized to the extent the carrying amount of the asset exceeds its fair value. There were no impairments recorded for the years ending December 31, 2015, 2014 or 2013.
Goodwill	Goodwill In accordance with the FASB ASC 805, Business Combinations , the purchase method of accounting requires that the excess of purchase price paid over the estimated fair value of identifiable tangible and intangible net assets of acquired businesses be recorded as goodwill. In accordance with the provisions of ASC 350, Intangibles—Goodwill and Other , goodwill is tested for impairment annually, and interim impairment tests are performed whenever an event occurs or circumstances change that indicate an impairment has more likely than not occurred. We have one reporting unit and goodwill is evaluated at that level. We evaluate impairment of goodwill by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than the carrying value. If it is concluded that this is the case, it is necessary to perform a two ‑ step impairment test. The first step involves a comparison of the fair value of a reporting unit with its carrying amount. If the carrying value of the reporting unit exceeds its fair value, the second step involves a comparison of the implied fair value and the carrying amount of the goodwill of that reporting unit to determine the impairment charge, if necessary. We have established October 31 as the date for our annual impairment review. The Company estimates the fair value of its total invested capital using an income and market approach, reduced by interest bearing debt as of the valuation date. These valuations require management to make estimates and assumptions regarding industry economic factors and prospective financial information. There were no goodwill impairment charges recorded for the years ended December 31, 2015, 2014 and 2013.
Intangible Assets	Intangible Assets Intangible assets are recorded at their estimated fair values as of the date of acquisition. Intangible assets consist of trade and domain names and noncompete agreements. In accordance with ASC 350, Intangibles—Goodwill and Other , the Company reviews the intangible assets with indefinite lives, which include trade and domain names, at least annually for impairment, or more often if triggering events exist. Intangible assets with definite lives are reviewed for impairment if an indicator of impairment exists similar to long-lived assets. We evaluate impairment of intangible assets by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the asset is less than the carrying value. If it is concluded that this is the case, it is necessary to perform a two ‑ step impairment test. An impairment loss is recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. There were no impairment charges recorded on intangible assets for the years ended December 31, 2015, 2014 and 2013. Intangible assets with finite useful lives are amortized over their estimated useful life.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of the Company's financial instruments, including cash, receivables, accounts payable and accrued liabilities approximate their fair value due to their relatively short maturities. At December 31, 2015 and 2014, the carrying value of the Company's long-term debt was based on the current interest rates and approximates its fair value.
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities The Company recognizes all derivative instruments as either assets or liabilities in the balance sheet at their respective fair values. For derivatives not designated as a hedging instrument, changes in the fair value are recorded in net earnings immediately. For derivatives designated in hedging relationships, changes in the fair value are either offset through earnings against the change in fair value of the hedged item attributable to the risk being hedged or recognized in accumulated other comprehensive income, to the extent the derivative is effective at offsetting the changes in cash flows being hedged until the hedged item affects earnings. For the year ended December 31, 2012 and continuing through October 31, 2013, the Company maintained one derivative instrument that it did not designate as a hedge. As a result, changes in the fair value were recorded in earnings for this period. Beginning in November 2013, the Company only enters into derivative contracts that it intends to designate as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). For all hedging relationships, the Company formally documents the hedging relationship and its risk-management objective and strategy for undertaking the hedge, the hedging instrument, the hedged transaction, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method used to measure ineffectiveness. The Company also formally assesses, both at the inception of the hedging relationship and on an ongoing basis, whether the derivatives that are used in hedging relationships are highly effective in offsetting changes in cash flows of hedged transactions. For derivative instruments that are designated and qualify as part of a cash flow hedging relationship, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or years during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. The Company discontinues hedge accounting prospectively when it determines that the derivative is no longer effective in offsetting cash flows attributable to the hedged risk, the derivative expires or is sold, terminated, or exercised or the cash flow hedge is dedesignated because a forecasted transaction is not probable of occurring. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in its fair value in earnings. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately in earnings gains and losses that were accumulated in other comprehensive income related to the hedging relationship.
Lease Accounting	Lease Accounting The Company determines whether to account for its facility leases as operating or capital leases depending on the underlying terms of the lease agreement. This determination of classification is complex and requires significant judgment relating to certain information including the estimated fair value and remaining economic life of the facilities, the Company's cost of funds, minimum lease payments and other lease terms. The lease rates under the Company's lease agreements are subject to certain conditional escalation clauses that are recognized when probable or incurred and are based on changes in the consumer price index or certain operational performance measures. As of December 31, 2015, the Company leased 82 facilities, 81 of which the Company classified as operating leases and one of which the Company classified as a capital lease.
Income Taxes	Income Taxes We provide for income taxes using the asset and liability method. This approach recognizes the amount of federal, state and local taxes payable or refundable for the current year, as well as deferred tax assets and liabilities for the future tax consequence of events recognized in the consolidated financial statements and income tax returns. Deferred income tax assets and liabilities are adjusted to recognize the effects of changes in tax laws or enacted tax rates. A valuation allowance is required when it is more-likely-than-not that some portion of the deferred tax assets will not be realized. Realization is dependent on generating sufficient future taxable income. We file a consolidated federal income tax return. State income tax returns are filed on a separate, combined or consolidated basis in accordance with relevant state laws and regulations. LPs, LLPs, LLCs and other pass-through entities that we consolidate file separate federal and state income tax returns. We include the allocable portion of each pass-through entity’s income or loss in our federal income tax return. We allocate the remaining income or loss of each pass-through entity to the other partners or members who are responsible for their portion of the taxes. Estimated tax expense (benefit) of approximately $8.7 million , ($1.3) million and $0.7 million are included in the provision for income taxes in the financial statements for the years ended December 31, 2015, 2014 and 2013, respectively. The Company's estimate of the potential outcome of any uncertain tax positions is subject to management's assessment of relevant risks, facts, and circumstances existing at that time. The Company uses a more likely than not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. To the extent that the Company's assessment of such tax position changes, the change in estimate is recorded in the period in which the determination is made. The Company reports tax related interest and penalties as a component of the provision for income tax and operating expenses, respectively, if applicable. The Company has not recognized any uncertain tax positions.
Deferred Rent	Deferred Rent The Company records rent expense for operating leases on a straight-line basis over the life of the related leases. The Company has certain facility and equipment leases that allow for leasehold improvements allowance, free rent, and escalating rental payments. Straight-line expenses that are greater than the actual amount paid are recorded as deferred rent and amortized over the life of the lease.
Variable Interest Entities	Variable Interest Entities The Company follows the guidance in ASC 810-10-15-14 in order to determine if we are the primary beneficiary of a variable interest entity (“VIE”) for financial reporting purposes. We consider whether we have the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and whether we have the obligation to absorb losses or the right to receive returns that would be significant to the VIE. We consolidate a VIE when we are the primary beneficiary of the VIE. At December 31, 2015, the Company determined that it has one joint venture interest which it considers a VIE for which it is not the primary beneficiary. Accordingly, we account for this investment in joint venture using the equity method.
Investment in Unconsolidated Joint Ventures	Investment in Unconsolidated Joint Ventures Investments in unconsolidated companies in which the Company exerts significant influence but does not control or otherwise consolidate are accounted for using the equity method. As of December 30, 2015, the Company accounted for 15 freestanding facilities associated with our joint venture with University of Colorado Health and our Arizona hospital and its four freestanding departments associated with our joint venture with Dignity Health using the equity method. The Company has an ownership interest of 49.9% in each joint venture. These investments are included as investment in unconsolidated joint ventures in the accompanying consolidated balance sheets. Equity in earnings of unconsolidated joint ventures consists of (i) the Company’s share of the income (loss) generated from its non-controlling equity investment in one full-service healthcare hospital facility and four freestanding emergency rooms in Arizona, and (ii) the Company’s preferred return and its share of the income (loss) generated from its non-controlling equity investment in 15 freestanding emergency rooms in Colorado. Because the operations are central to the Company’s business strategy, equity in earnings of unconsolidated joint ventures is classified as a component of operating income in the accompanying consolidated statements of operations. The Company has contracts to manage the facilities, which results in the Company having an active role in the operations of the facilities and devoting a significant portion of its corporate resources to the fulfillment of these management responsibilities.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will become effective for the Company on January 1, 2018. Early application is permitted to the original effective date of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In February 2015, the FASB issued ASU No. 2015-02, “ Consolidation: Amendments to the Consolidation Analysis” (Topic 810) . This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. We are currently evaluating the potential impact of this standard on our consolidated financial position, results of operations and cash flows. In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs" (Subtopic 835-30) , which changes the presentation of debt issuance costs in financial statements. ASU No. 2015-03 requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU No. 2015-03 is effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. The Company will implement the provisions of ASU 2015-03 as of January 1, 2016. In November 2015, the FASB issued ASU No. 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ”, which amended the balance sheet classification requirements for deferred income taxes to simplify their presentation in the statement of financial position. The ASU requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This ASU is effective for fiscal years beginning after December 31, 2016, with early adoption permitted. The Company early adopted the provisions of this ASU for the presentation and classification of its deferred tax assets at December 31, 2015 and has reflected the change on the consolidated balance sheet for all periods presented. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842). This new standard establishes a comprehensive new lease accounting model. The new standard clarifies the definition of a lease, requires a dual approach to lease classification similar to current lease classifications, and causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a lease term of more than twelve months. The standard is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial application. We are evaluating the impact of the new standard on our consolidated financial statements. We do not believe any other recently issued, but not yet effective, revisions to authoritative guidance will have a material effect on our condensed consolidated financial position, results of operations or cash flow s.

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of net patient service revenue by major payor source	Net patient service revenue by major payor source for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands) : Year ended December 31, 2015 2014 2013 Commercial $ $ $ Self-pay Other — Medicaid — Medicare — Patient Service Revenue Provision for bad debt Net Patient Service Revenue $ $ $
Table of percentage of patient service revenue earned by major payor source	The following table sets forth the percentage of patient service revenue earned by major payor source for the years ended December 31, 2015, 2014 and 2013: Year ended December 31, 2015 2014 2013 Payor: United HealthCare % % % Blue Cross Blue Shield Aetna Cigna Other Medicaid/Medicare — — % % %
Schedule of estimated useful lives of assets	Estimated useful life (in years) Computer equipment 3 to 5 Automobiles Office equipment Medical equipment 5 to 7 Leasehold improvement 4 to 10 Buildings 15 to 40

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
PROPERTY AND EQUIPMENT
Schedule of property and equipment	Property and equipment consisted of the following, as of December 31, 2015 and 2014 ( in thousands ): December 31, December 31, 2015 2014 Leasehold improvements $ $ Computer equipment Medical equipment Office equipment Automobiles Land Construction in progress Buildings Less accumulated depreciation Property and equipment, net $ $

INVESTMENT IN UNCONSOLIDATED 28

INVESTMENT IN UNCONSOLIDATED JOINT VENTURE (Tables)	12 Months Ended
	Dec. 31, 2015
PROPERTY AND EQUIPMENT
Summary of unaudited results of operations of equity method investees	Summarized unaudited financial information for the Company’s equity method investees is as follows ( in thousands ): Year ended December 31, 2015 2014 Net patient service revenue $ $ Total operating expenses Income (loss) from operations Balance sheet information (as of December 31): Current Assets $ $ Noncurrent assets Current Liabilities Noncurrent liabilities —
Summary of investment in unconsolidated joint ventures	Our investment in unconsolidated joint ventures consists of the following (in thousands): As of December 31, 2015 2014 Beginning balance $ $ — Share of income (loss) Initial investment Gain on contribution — Distributions — Investment in unconsolidated joint ventures $ $

GOODWILL AND OTHER INTANGIBLE29

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2015
GOODWILL AND OTHER INTANGIBLE ASSETS
Table summarizing the changes in goodwill	The following table summarizes the change in goodwill during the years ended December 31, 2015 and 2014 (in thousands) : 2015 2014 Balance at beginning of year $ $ Adjustments — — Balance at beginning of year $ $
Table summarizing the changes in intangible assets	The following table summarizes the change in intangible assets during the years ended December 31, 2015 and 2014 (in thousands) : Noncompete Trade Domain Agreements Names Names Total Balance at December 31, 2013 $ $ $ $ Additions — — — — Amortization — — Balance at December 31, 2014 $ $ $ $ Additions — — — — Amortization — — Balance at December 31, 2015 $ $ $ $

DERIVATIVE INSTRUMENTS AND HE30

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)	12 Months Ended
	Dec. 31, 2015
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Summary of the Company's derivative instruments	The following table summarizes the Company's derivative instruments (in thousands) : December 31, December 31, 2015 2014 Balance Sheet Location Fair Value Fair Value Derivative designated as hedging instruments Interest rate contracts Other long-term assets $ — $

ACCOUNTS PAYABLE AND ACCRUED 31

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2015
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Summary of accounts payable and accrued expenses	Accounts payable and accrued expenses consisted of the following (in thousands) : December 31, December 31, 2015 2014 Accounts payable $ $ Accrued expenses Accrued tax distribution to LLC Unit holders Other Total accounts payable and accrued expenses $ $

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2015
DEBT
Summary of components of debt	The components of debt consisted of the following (in thousands) : December 31, December 31, 2015 2014 Term loan $ $ Delayed draw term loan — Revolving credit — Other financing agreements Less current maturities $ $
Schedule of future aggregate maturities of long-term debt	Scheduled future aggregate maturities of principal of long-term debt are as follows: ( in thousands ): Years ending December 31, Amount 2016 $ 2017 2018 2019 2020 Total $

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES
Contractual obligations	F uture minimum lease payments required under noncancelable operating leases and future minimum, capital lease payments as of December 31, 2015 were as follows (in thousands) : Capital Operating Years ending December 31, leases leases 2016 $ $ 2017 2018 2019 2020 Thereafter Total future minimum lease payments $ $ Less: Amounts representing interest Present value of minimum lease payments Current portion of capital lease obligations Long-term portion of capital lease payments $

SUPPLEMENTAL CASH FLOW INFORM34

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2015
Supplemental Cash Flow Information
Summary of supplemental cash flow information and supplemental noncash activities	Supplemental cash flow information and supplemental noncash activities consisted of the following for the years ended December 31, 2015, 2014 and 2013 (in thousands) : December 31, December 31, December 31, 2015 2014 2013 Supplemental cash flow information: Interest paid $ $ $ Taxes paid Supplemental noncash activities: Acquisition of property and equipment in accounts payable and accrued expenses $ — $ $ Assets acquired through capital lease — Note payable for other financing agreements Contribution of assets to joint venture — — Effects of tax receivable agreement — Accrual of owner distributions —

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure
Schedule of components of our (benefit) provision for income taxes	The components of our (benefit) provision for income taxes were as follows ( in thousands ): 2015 2014 2013 Current: Federal $ - $ - $ - State Total current taxes Deferred: Federal - State - Total deferred taxes - Total income tax (benefit) provision $ $ $
Schedule of reconciliation of our income tax (benefit) expense	The reconciliation of our income tax (benefit) expense computed at the U.S. federal statutory tax rate to the actual income tax (benefit) expense is as follows (in thousands ): 2015 2014 2013 Expense derived by applying the federal income tax rate to income (loss) before taxes $ $ $ Tax applicable to pass-through entities - State income tax, net of federal benefit - Nondeductible expenses - Provision (benefit) for income taxes $ $ $ -
Schedule of components of our deferred tax assets and liabilities	Significant components of our deferred tax assets and liabilities are as follows ( in thousands ): 2015 2014 Deferred tax assets TRA liability $ $ Investment in partnership Net operating loss carryforwards State net operating loss carryforwards Total deferred tax assets $ 206,265 $ 34,084

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2015
NET INCOME (LOSS) PER SHARE
Summary of computation of basic and diluted net income (loss) per common share	The following table sets forth the computation of basic and diluted net income ( loss ) per common share (in thousands, except share and per share data) : Year ended December 31, 2015 2014 Numerator: Net income (loss) attributable to Adeptus Health Inc. $ $ Denominator: Denominator for basic net income (loss) per Class A common share-weighted average shares Effect of dilutive securities: Restricted shares — — Denominator for diluted net income (loss) per Class A common share-weighted average shares Net income (loss) attributable to Adeptus Health Inc. per Class A common share - Basic $ $ Net income (loss) attributable to Adeptus Health Inc. per Class A common share - Diluted $ $

SELECTED QUARTERLY FINANCIAL 37

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2015
Selected Quarterly Financial Data
Selected unaudited quarterly statements of operations data	Three months ended December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, 2015 2015 2015 2015 2014 2014 2014 2014 (in thousands, except per share data) Patient service revenue $ $ $ $ $ $ $ $ Provision for bad debt Net patient service revenue Management and contract services revenue — — — Total net operating revenue Income (loss) from operations Net income (loss) Less: Net income (loss) attributable to non-controlling interest Net income (loss) attributable to Adeptus Health Inc. $ $ $ $ $ $ $ $ — Net income (loss) per share of Class A common stock: Basic and Diluted $ $ $ $ $ $ $ $ —

ORGANIZATION (Details)

ORGANIZATION (Details)	Jun. 24, 2014USD ($)shares	Jul. 31, 2015$ / sharesshares	May. 31, 2015$ / sharesshares	Dec. 31, 2015USD ($)itemfacility$ / sharesshares	Dec. 31, 2014USD ($)$ / shares	Dec. 31, 2012facility
Ownership, voting power and economic interest
Number of emergency room facilities | facility				81		14
Number of fully licensed general hospitals | item				2
Issuance of Class A common stock (in shares)	735,000
Shares sold by a significant shareholder	313,586
Shares sold by the Company with specific purpose of proceeds	421,414
Dividends paid to existing owners | $	$ 60,000,000				$ 60,000,000
Noncontrolling ownership percentage				31.50%
Over-Allotment Option
Ownership, voting power and economic interest
Issuance of Class A common stock (in shares)		324,926
Selling Stockholder | Over-Allotment Option
Ownership, voting power and economic interest
Issuance of Class A common stock (in shares)		185,074
Selling Shareholder And Adeptus
Ownership, voting power and economic interest
Issuance of Class A common stock (in shares)		3,910,000
Common Class A
Ownership, voting power and economic interest
Issuance of Class A common stock (in shares)	4,900,000	2,320,351	1,349,671
Public offering price | $ / shares		$ 105	$ 63.75
Common stock, par value | $ / shares		$ 0.01	$ 0.01	$ 0.01	$ 0.01
Conversion ratio	1
Purchase of shares by underwriters			222,625
Common Class A | IPO
Ownership, voting power and economic interest
Issuance of Class A common stock (in shares)			2,415,000
Common Class A | Selling Stockholder
Ownership, voting power and economic interest
Issuance of Class A common stock (in shares)		1,079,649	750,329
Units purchased from Adeptus Health LLC			92,375
Common Class B
Ownership, voting power and economic interest
Common stock, par value | $ / shares				$ 0.01	$ 0.01
Conversion ratio				1
Adeptus Health LLC
Ownership, voting power and economic interest
Dividends paid to existing owners | $				$ 60,000,000
Adeptus Health LLC | Common Class A
Ownership, voting power and economic interest
Shares converted				4,895,521
Units purchased from Adeptus Health LLC		2,645,277	1,572,296

SUMMARY OF SIGNIFICANT ACCOUN39

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Patient Revenue and Accounts Receivable (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Patient service revenue by major payor source
Number of management services agreement | item									2
Patient service revenue	$ 119,093	$ 101,254	$ 104,363	$ 95,902	$ 80,290	$ 66,533	$ 51,946	$ 44,529	$ 420,612	$ 243,298	$ 114,960
Provision for bad debt	(19,754)	(17,907)	(17,514)	(14,945)	(10,234)	(8,934)	(7,708)	(5,748)	(70,119)	(32,624)	(12,077)
Net patient service revenue	$ 99,339	$ 83,347	$ 86,849	$ 80,957	$ 70,056	$ 57,599	$ 44,238	$ 38,781	350,493	210,674	102,883
Medicare
Patient service revenue by major payor source
Patient service revenue									1,370	3
Medicaid
Patient service revenue by major payor source
Patient service revenue									2,205	3
Commercial
Patient service revenue by major payor source
Patient service revenue									402,017	237,907	113,603
Self Pay
Patient service revenue by major payor source
Patient service revenue									11,155	4,287	$ 1,357
Other
Patient service revenue by major payor source
Patient service revenue									$ 3,865	$ 1,098

SUMMARY OF SIGNIFICANT ACCOUN40

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Third-party Payors (Details) - entity	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Major Third Party Payors
Major payor revenues and receivables
Number of major third-party payors	4
Sales Revenue Services Net | Customer Concentration Risk
Major payor revenues and receivables
Percentage of Company total	100.00%	100.00%	100.00%
Sales Revenue Services Net | Customer Concentration Risk | Medicaid and Medicare
Major payor revenues and receivables
Percentage of Company total	0.90%
Sales Revenue Services Net | Customer Concentration Risk | Major Third Party Payors
Major payor revenues and receivables
Percentage of Company total	84.60%	84.80%	86.70%
Sales Revenue Services Net | Customer Concentration Risk | Blue Cross Blue Shield
Major payor revenues and receivables
Percentage of Company total	23.10%	27.60%	28.00%
Sales Revenue Services Net | Customer Concentration Risk | United Health Care
Major payor revenues and receivables
Percentage of Company total	29.20%	23.60%	26.50%
Sales Revenue Services Net | Customer Concentration Risk | Aetna
Major payor revenues and receivables
Percentage of Company total	18.80%	19.30%	21.00%
Sales Revenue Services Net | Customer Concentration Risk | Cigna
Major payor revenues and receivables
Percentage of Company total	13.50%	14.30%	11.20%
Sales Revenue Services Net | Customer Concentration Risk | Other Payors
Major payor revenues and receivables
Percentage of Company total	14.50%	15.20%	13.30%
Accounts Receivable | Credit Concentration Risk | Major Third Party Payors
Major payor revenues and receivables
Percentage of Company total	65.90%	80.00%

SUMMARY OF SIGNIFICANT ACCOUN41

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)itemfacilityroom	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Oct. 31, 2013item
Derivative Instruments and Hedging Activities
Cash equivalents		$ 0
Percentage of base rent on which letter of credit is issued		50.00%
Restricted cash			$ 4,795,000
Long-term Line of Credit		$ 15,000,000
Charity care, percent of patient service revenue		7.8	8.6	$ 7
Advertising expense		5,700,000	5,400,000	2,100,000
Impairment charges of long-lived assets		0	0	0
Goodwill impairment charges		$ 0	0	0
Number of reporting units | item		1
Impairment charges of intangible assets		$ 0	0	0
Number of facilities leased | facility		82
Number of facilities classified as operating leases | facility		81
Number of leased facilities capitalized (in facilities) | facility		1
Provision (benefit) for income taxes		$ 8,733,000	$ (1,326,000)	$ 720,000
Number of freestanding emergency departments | room		15
Number of joint venture interests considered a VIE for which the entity is not the primary beneficiary | item		1
Number of full-service healthcare hospital facilities | item		1
Investment ownership percentage		49.90%
Nondesignated
Derivative Instruments and Hedging Activities
Number of derivative instruments maintained | item					1
Computer Equipment | Minimum
Derivative Instruments and Hedging Activities
Estimated useful lives of assets		3 years
Computer Equipment | Maximum
Derivative Instruments and Hedging Activities
Estimated useful lives of assets		5 years
Automobiles
Derivative Instruments and Hedging Activities
Estimated useful lives of assets		5 years
Office Equipment
Derivative Instruments and Hedging Activities
Estimated useful lives of assets		5 years
Medical Equipment | Minimum
Derivative Instruments and Hedging Activities
Estimated useful lives of assets		5 years
Medical Equipment | Maximum
Derivative Instruments and Hedging Activities
Estimated useful lives of assets		7 years
Leasehold Improvements | Minimum
Derivative Instruments and Hedging Activities
Estimated useful lives of assets		4 years
Leasehold Improvements | Maximum
Derivative Instruments and Hedging Activities
Estimated useful lives of assets		10 years
Building | Minimum
Derivative Instruments and Hedging Activities
Estimated useful lives of assets		15 years
Building | Maximum
Derivative Instruments and Hedging Activities
Estimated useful lives of assets		40 years
Master Funding And Development Agreement
Derivative Instruments and Hedging Activities
Number of leased facilities capitalized (in facilities) | item		1
Additional Master Funding And Development Agreement
Derivative Instruments and Hedging Activities
Cash restriction letters of credit facility fundings	$ 250,000,000
University of Colorado Health
Derivative Instruments and Hedging Activities
Number of freestanding emergency departments | facility		15
Dignity Health Arizona General Hospital
Derivative Instruments and Hedging Activities
Number of freestanding emergency departments | facility		4

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property and Equipment
Property and equipment	$ 100,767	$ 111,595
Less accumulated depreciation	30,580	17,703
Property and equipment, net	70,187	93,892
Assets under capital leases	4,200	4,200
Accumulated depreciation associated with capital lease assets	600	300
Leasehold Improvements
Property and Equipment
Property and equipment	73,249	77,354
Computer Equipment
Property and Equipment
Property and equipment	5,627	3,700
Medical Equipment
Property and Equipment
Property and equipment	4,458	4,213
Office Equipment
Property and Equipment
Property and equipment	5,445	4,307
Automobiles
Property and Equipment
Property and equipment	218	243
Land
Property and Equipment
Property and equipment	6,758	8,276
Asset Under Construction
Property and Equipment
Property and equipment	345	8,835
Building
Property and Equipment
Property and equipment	$ 4,667	$ 4,667

INVESTMENT IN UNCONSOLIDATED 43

INVESTMENT IN UNCONSOLIDATED JOINT VENTURE (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)roomfacility	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Schedule of Equity Method Investments [Line Items]
Number of freestanding emergency departments | room	15
Gain on contribution to joint venture | $	$ 24,250
Equity in earnings of unconsolidated joint ventures | $	$ 8,927	$ (900)
University of Colorado Health
Schedule of Equity Method Investments [Line Items]
Number of freestanding emergency departments | facility	15
Gain on contribution to joint venture | $	$ 24,300
Dignity Health Arizona General Hospital
Schedule of Equity Method Investments [Line Items]
Number of freestanding emergency departments | facility	4
Dignity Health Arizona General Hospital
Schedule of Equity Method Investments [Line Items]
Number of freestanding emergency departments | facility	4
University of Colorado Health
Schedule of Equity Method Investments [Line Items]
Number of freestanding emergency rooms contributed to the joint venture | room	12

INVESTMENT IN UNCONSOLIDATED 44

INVESTMENT IN UNCONSOLIDATED JOINT VENTURE - Equity Method Investees (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Equity method investment information
Net patient service revenue	$ 99,339	$ 83,347	$ 86,849	$ 80,957	$ 70,056	$ 57,599	$ 44,238	$ 38,781	$ 350,493	$ 210,674	$ 102,883
Total operating expenses									338,446	216,426	101,992
Income (loss) from operations	10,105	$ 6,058	$ 13,650	$ 5,354	(139)	$ (1,079)	$ (5,072)	$ (341)	35,168	(6,632)	$ 891
Balance sheet information:
Current Assets	118,690				65,643				118,690	65,643
Current Liabilities	59,263				41,445				59,263	41,445
Equity Method Investee
Equity method investment information
Net patient service revenue									74,769	247
Total operating expenses									66,172	2,049
Income (loss) from operations									8,597	(1,803)
Balance sheet information:
Current Assets	25,646				1				25,646	1
Noncurrent assets	36,154				5				36,154	5
Current Liabilities	20,774				$ 2				20,774	$ 2
Noncurrent liabilities	$ 1,637								$ 1,637

INVESTMENT IN UNCONSOLIDATED 45

INVESTMENT IN UNCONSOLIDATED JOINT VENTURE - Investment in Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
INVESTMENT IN UNCONSOLIDATED JOINT VENTURE
Beginning balance	$ 2,100
Equity in earnings of unconsolidated joint ventures	8,927	$ (900)
Initial investment	12,027
Initial investment		$ 3,000
Gain on contribution	24,250
Distributions	(4,200)
Ending balance	$ 43,104	$ 2,100

GOODWILL AND OTHER INTANGIBLE46

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill
Balance at beginning of year	$ 61,009	$ 61,009
Balance at end of year	61,009	61,009
Changes in intangible assets
Balance at beginning of period	20,015	21,795
Amortization	(1,780)	(1,780)
Balance at end of period	18,235	20,015
Trade Names
Changes in intangible assets
Balance at beginning of period	9,300	9,300
Balance at end of period	9,300	9,300
Domain Names
Changes in intangible assets
Balance at beginning of period	7,600	7,600
Balance at end of period	7,600	7,600
Noncompete Agreements
Changes in intangible assets
Balance at beginning of period	3,115	4,895
Amortization	(1,780)	(1,780)
Balance at end of period	1,335	$ 3,115
Future Amortization
2,016	$ 1,300

DERIVATIVE INSTRUMENTS AND HE47

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2015USD ($)	Dec. 31, 2015USD ($)item	Dec. 31, 2013USD ($)	Dec. 31, 2014USD ($)	May. 31, 2012USD ($)
Derivatives
Realized (loss) gain on derivative		$ (92)	$ 112
Designated As Hedging Instrument | Other Noncurrent Assets
Derivatives
Fair Value				$ 19
Interest Rate Swap | Nondesignated | Cash Flow Hedging | Forward Contracts
Derivatives
Notional amount					$ 24,000
Fixed interest rate					1.20%
Interest Rate Swap | Designated As Hedging Instrument | Forward Contracts
Derivatives
Realized (loss) gain on derivative			$ 100
Interest Rate Cap | Cash Flow Hedging
Derivatives
Losses reclassified from accumulated other comprehensive income into earnings	$ 100
Interest Rate Cap | Designated As Hedging Instrument | Cash Flow Hedging
Derivatives
Number of agreements | item		1
Notional amount		$ 37,500
Capped interest rate		3.00%

ACCOUNTS PAYABLE AND ACCRUED 48

ACCOUNTS PAYABLE AND ACCRUED EXPENSE (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable	$ 13,600	$ 14,133
Accrued expenses	7,297	4,431
Accrued tax distribution to LLC unit holders	4,246	4,246
Other	2,378	2,610
Total accounts payable and accrued expenses	$ 27,521	$ 25,420

DEBT - Components (Details)

DEBT - Components (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Debt
Less current maturities	$ 7,585	$ 1,816
Long-term debt, less current maturities	117,241	104,982
Insurance Financing Agreement
Debt
Debt, long-term and short-term combined amount	1,388	1,298
Senior Secured Credit Facility
Debt
Debt, long-term and short-term combined amount	124,826	106,798
Secured Debt
Debt
Debt, long-term and short-term combined amount	$ 123,438	75,000
Delayed Draw Term Loan
Debt
Debt, long-term and short-term combined amount		25,000
Revolving Credit Facility
Debt
Debt, long-term and short-term combined amount		$ 5,500

DEBT - Details (Details)

DEBT - Details (Details) - USD ($)	Oct. 06, 2015	Jun. 11, 2014	Dec. 31, 2015	Apr. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Apr. 20, 2015	Jun. 30, 2014	Mar. 31, 2014	Oct. 31, 2013
Line of Credit Facility
Maximum aggregate funding amount permitted								$ 500,000,000		$ 250,000,000
Proceeds from long-term borrowings					$ 184,000,000	$ 99,457,000	$ 102,000,000
Prepayment Premium On Repayments Of Lines Of Credit			$ 5,000,000
Prepayment premium			2,100,000
Write-off of deferred loan costs					$ 2,931,000		$ 440,000
Senior Secured Credit Facility Original Agreement
Line of Credit Facility
Debt instrument face amount											$ 75,000,000
Senior Secured Credit Facility Second Amendment
Line of Credit Facility
Proceeds from long-term borrowings		$ 75,000,000
Senior Secured Credit Facility
Line of Credit Facility
Unused line fee					0.50%
Annual Agency fee					$ 100,000
Senior Secured Credit Facility | Debt Instrument Base Rate Loans | Federal Funds Effective Rate
Line of Credit Facility
Basis spread on variable rate interest					0.50%
Margin added to variable interest rate					6.50%
Senior Secured Credit Facility | Debt Instrument Libor Rate Loans | LIBOR
Line of Credit Facility
Basis spread on variable rate interest					1.00%
Margin added to variable interest rate					7.50%
Delayed Draw Term Loan
Line of Credit Facility
Maximum borrowing capacity											165,000,000
Draw fee					1.00%
Draw from delayed draw term loan				$ 30,000,000
Remaining borrowing capacity						80,200,000
Delayed Draw Term Loan | Senior Secured Credit Facility Second Amendment
Line of Credit Facility
Maximum borrowing capacity									$ 75,000,000
Amount of principal which will be used for specified distributions									60,000,000
Amount of principal which will be used to repay certain revolving loans									$ 10,000,000
Revolving Credit Facility
Line of Credit Facility
Maximum borrowing capacity											$ 10,000,000
Remaining borrowing capacity						$ 4,000,000
Senior Secured Credit Facility Maturing October 2020
Line of Credit Facility
Remaining borrowing capacity			$ 39,800,000		$ 39,800,000
Senior Secured Credit Facility Maturing October 2020 | Federal Funds Effective Rate
Line of Credit Facility
Margin added to variable interest rate	0.50%
Senior Secured Credit Facility Maturing October 2020 | LIBOR
Line of Credit Facility
Margin added to variable interest rate	1.00%
Term Loan Maturing October 2020
Line of Credit Facility
Maximum borrowing capacity	$ 125,000,000
Revolving Credit Facility Maturing October 2020
Line of Credit Facility
Maximum borrowing capacity	50,000,000
Standby Letters Of Credit Maturing October 2020
Line of Credit Facility
Maximum borrowing capacity	15,000,000
Swing Line Loans Maturing October 2020
Line of Credit Facility
Maximum borrowing capacity	5,000,000
Conditional Borrowing Option Maturing October 2020
Line of Credit Facility
Maximum borrowing capacity	$ 50,000,000
Minimum | Senior Secured Credit Facility | LIBOR
Line of Credit Facility
Margin added to variable interest rate	3.25%
Minimum | Senior Secured Credit Facility Maturing October 2020
Line of Credit Facility
Unused line fee	0.40%
Minimum | Senior Secured Credit Facility Maturing October 2020 | Base Rate
Line of Credit Facility
Margin added to variable interest rate	2.25%
Maximum | Senior Secured Credit Facility | LIBOR
Line of Credit Facility
Margin added to variable interest rate	4.00%
Maximum | Senior Secured Credit Facility Maturing October 2020
Line of Credit Facility
Unused line fee	0.50%
Maximum | Senior Secured Credit Facility Maturing October 2020 | Base Rate
Line of Credit Facility
Margin added to variable interest rate	3.00%

DEBT - Insurance Finance Agreem

DEBT - Insurance Finance Agreements (Details) - USD ($)	1 Months Ended	12 Months Ended
	Oct. 31, 2013	Dec. 31, 2015	Dec. 31, 2014
Insurance Financing Agreement July 2014
Finance Agreement
Debt instrument face amount			$ 1,900,000
Insurance Financing Agreement July 2014 | Minimum
Finance Agreement
Stated interest rate			2.49%
Debt instrument term			9 months
Insurance Financing Agreement July 2014 | Maximum
Finance Agreement
Stated interest rate			3.25%
Debt instrument term			11 months
Insurance Financing Agreement October 2013
Finance Agreement
Debt instrument face amount	$ 800,000
Stated interest rate	1.93%
Debt instrument term	9 months
Insurance Financing Agreement June 2015
Finance Agreement
Debt instrument face amount		$ 2,400,000
Insurance Financing Agreement June 2015 | Minimum
Finance Agreement
Debt instrument face amount		$ 2.49
Debt instrument term		9 months
Insurance Financing Agreement June 2015 | Maximum
Finance Agreement
Debt instrument face amount		$ 3.50
Debt instrument term		11 months

DEBT - Future Aggregate Matutie

DEBT - Future Aggregate Matuties (Details) $ in Thousands	Dec. 31, 2015USD ($)
Future aggregate maturities of long term debt
2,016	$ 7,585
2,017	7,085
2,018	9,375
2,019	10,156
2,020	90,625
Total	$ 124,826

TRANSACTIONS WITH RELATED PAR53

TRANSACTIONS WITH RELATED PARTIES (Details) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Sponsor Of Company | Management Services And Reimbursement Of Certain Expenses
Agreement provisions
Payments		$ 24,000	$ 800,000	$ 600,000
Sponsor Of Company | Termination Of Advisory Services Agreement
Agreement provisions
Payments	$ 2,000,000
Various Related Party Vendors | Contractor Services
Agreement provisions
Payments		$ 200,000	$ 100,000	$ 60,000

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
EMPLOYEE BENEFIT PLANS
Employer contributions	$ 0.9	$ 0.5
Contributions approved by board of directors	$ 1.7

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Insurance Arrangements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Uninsured Risk
Loss Contingencies
Accrual for incurred but not reported claims	$ 800	$ 700
Workers Compensation Insurance
Loss Contingencies
Maximum amount of worker's compensation claims	1,000
Policy limit	1,000
Professional Malpractice Liability
Loss Contingencies
Worker's compensation expense	300	$ 300	$ 70
Maximum professional liability insurance per incident	1,000
Maximum professional liability insurance per facility	3,000
Maximum professional liability aggregate policy limit	$ 20,000

COMMITMENTS AND CONTINGENCIES56

COMMITMENTS AND CONTINGENCIES - Leases (Details) $ in Millions	Apr. 20, 2015USD ($)item	Jul. 31, 2014USD ($)	Dec. 31, 2015USD ($)ft²itemfacilityOption	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Other Commitments
Number of leased facilities capitalized (in facilities) | facility			1
Receivables from developers			$ 12.2
Lease expense			$ 31.1	$ 15.2	$ 4.5
Master Funding And Development Agreement
Other Commitments
Maximum number of facilities | facility			25
Maximum funding per agreement			$ 100
Initial term of lease			15 years
Number of lease renewal options (in leases) | Option			3
Lease renewal terms			5 years
Number of leased facilities capitalized (in facilities) | item			1
Amendment Additional MPT Agreement
Other Commitments
Maximum funding per agreement	$ 500
Additional funding due to amendment	$ 250
Initial term of lease	15 years
Number of lease renewal options (in leases) | item	3
Lease renewal terms	5 years
Additional Master Funding And Development Agreement
Other Commitments
Maximum funding per agreement		$ 150
Corporate Headquarters
Other Commitments
Square footage leased (in square feet) | ft²			80,000
Lease expense			$ 1.6	$ 1.4	$ 0.7

COMMITMENTS AND CONTINGENCIES57

COMMITMENTS AND CONTINGENCIES - Capital Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity
2,016	$ 533
2,017	543
2,018	554
2,019	565
2,020	577
Thereafter	4,936
Total future minimum lease payments	7,708
Less: Amounts representing interest	(3,652)
Present value of minimum lease payments	4,056
Current maturities of capital lease obligations	102	$ 81
Capital lease obligations, less current maturities	$ 3,954	$ 4,056

COMMITMENTS AND CONTINGENCIES58

COMMITMENTS AND CONTINGENCIES - Operating Leases (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity
2,016		$ 12,177
2,017		46,825
2,018		44,255
2,019		39,087
2,020		32,470
Thereafter		297,786
Total future minimum lease payments		472,600
Leases
Lease expense		31,100	$ 15,200	$ 4,500
Sublease rental income		$ 10,800	$ 400
Georgetown, Texas
Leases
Lease termination fees	$ 200

SUPPLEMENTAL CASH FLOW INFORM59

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Supplemental Cash Flow Information
Interest paid	$ 11,769	$ 9,294	$ 2,486
Taxes Paid	1,650	680	530
Noncash Investing and Financing Items [Abstract]
Acquisition of property and equipment in accounts payable and accrued expenses		2,239	467
Assets acquired through capital lease		287	3,911
Note payable for other financing agreements	2,386	2,056	757
Contribution of assets to joint venture	12,027
Effects of tax receivable agreement	$ 17,869	1,992
Accrual of owner distributions		$ 474	$ 1,735

STOCK BASED COMPENSATION (Detai

STOCK BASED COMPENSATION (Details) - USD ($)	Jun. 24, 2014	Jul. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Time Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology
Compensation expense			$ 2,700,000	$ 1,000,000	$ 600,000
Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology
Compensation expense			$ 100,000
Omnibus Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Total number of shares which may be issued			1,033,500
Omnibus Incentive Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Granted weighted average exercise price (in dollars per share)			$ 37.10	$ 24.33
Omnibus Incentive Plan | Restricted Stock | Non Employee Directors
Share-based Compensation Arrangement by Share-based Payment Award
Restricted shares granted	11,934
Omnibus Incentive Plan | Restricted Stock | Certain employees
Share-based Compensation Arrangement by Share-based Payment Award
Restricted shares granted		35,856
Vesting period		4 years
Omnibus Incentive Plan | Restricted Stock | CertainEmployeesAndNonEmployeeDirectorsMember
Share-based Compensation Arrangement by Share-based Payment Award
Restricted shares granted			149,741
Omnibus Incentive Plan | Restricted Stock | CertainEmployeesAndNonEmployeeDirectorsMember | Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period			6 months
Omnibus Incentive Plan | Restricted Stock | CertainEmployeesAndNonEmployeeDirectorsMember | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period			4 years
Omnibus Incentive Plan | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period			3 years
Granted weighted average exercise price (in dollars per share)			$ 86.80
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			30,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Omnibus Incentive Plan | Time Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized compensation cost related to share-based awards				$ 4,700,000
Weighted average recognition period of unrecognized compensation cost				2 years
Legacy Equity Compensation Plan | Time Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology
Risk-free interest rate assumption					0.93%	0.72%
Volatility assumption					25.00%	30.00%
Dividend rate assumption					0.00%	0.00%
Weighted average fair value of incentive units granted					$ 1,262	$ 204
Legacy Equity Compensation Plan | Time Based Restricted Stock Units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period			3 years
Legacy Equity Compensation Plan | Time Based Restricted Stock Units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period			4 years
Legacy Equity Compensation Plan | Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology
Weighted average fair value of incentive units granted					$ 384	$ 37

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current:
State	$ 1,783	$ 821	$ 720
Total Current Taxes	1,783	821	720
Deferred:
Federal	7,108	(2,123)
State	(158)	(24)
Total deferred taxes	6,950	(2,147)
Total Income tax (benefit) provision	8,733	(1,326)	720
Reconciliation of income tax (benefit) expense
Benefit derived by applying the Federal Income tax rate to loss before taxes	7,411	(6,509)	(792)
Tax applicable to pass-through entities		4,631	792
State Income Tax, net of federal benefit	1,272	534
Investment in Partnership (Nondeductible expenses)	50	18
Total Income tax (benefit) provision	8,733	(1,326)	$ 720
Deferred Tax Assets
TRA Liability	65,897	8,125
Investment in Partnership	136,124	20,940
Net Operating Loss Carryforwards	4,193	4,957
State Net Operating Loss Carryforwards	51	62
Total Deferred Tax Assets	206,265	$ 34,084
Federal
Deferred Tax Assets
Net Operating Loss Carryforwards	4,200
Net operating loss carryforwards	$ 12,000

INCOME TAXES - Tax Receivable A

INCOME TAXES - Tax Receivable Agreement (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Agreement provisions
Payable to related parties pursuant to tax receivable agreement	$ 191,302	$ 30,039
Deferred tax asset composition
Deferred tax asset	$ 206,265	$ 34,084
Post IPO Unit Holders And Merged Owner | Tax Receivable Agreement
Agreement provisions
Percentage of deemed tax benefits required to be paid	85.00%
Payable to related parties pursuant to tax receivable agreement	$ 191,300

NET INCOME (LOSS) PER SHARE (De

NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended							12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2015	Dec. 31, 2014
Numerator
Net loss attributable to Adeptus Health Inc.	$ 1,313	$ 674	$ 10,634	$ 594	$ 262	$ (1,597)	$ (2,016)	$ 13,217	$ (3,351)
Common Class A
Initial public offering
Common stock, shares outstanding	14,257,187				9,845,016			14,257,187	9,845,016
Common stock, shares issued	14,257,187				9,845,016			14,257,187	9,845,016
Denominator:
Denominator for basic net loss per Class A common share-weighted average shares								12,103,383	9,845,016
Effective of dilutive securities:
Denominator for diluted net loss per Class A common share-weighted average shares								12,103,383	9,845,016
Net loss attributable to Adeptus Health Inc. per Class A common share - Basic								$ 1.09	$ (0.34)
Net loss attributable to Adeptus Health Inc. per Class A common share - Diluted								$ 1.09	$ (0.34)

SELECTED QUARTERLY FINANCIAL 64

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								6 Months Ended		12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Selected Quarterly Financial Data
Patient service revenue	$ 119,093	$ 101,254	$ 104,363	$ 95,902	$ 80,290	$ 66,533	$ 51,946	$ 44,529			$ 420,612	$ 243,298	$ 114,960
Provision for bad debt	(19,754)	(17,907)	(17,514)	(14,945)	(10,234)	(8,934)	(7,708)	(5,748)			(70,119)	(32,624)	(12,077)
Net patient service revenue	99,339	83,347	86,849	80,957	70,056	57,599	44,238	38,781			350,493	210,674	102,883
Management and contract services revenue	6,095	4,865	2,738	496	20						14,194	20
Total net operating revenue	105,434	88,212	89,587	81,453	70,076	57,599	44,238	38,781			364,687	210,694	102,883
(Loss) income from operations	10,105	6,058	13,650	5,354	(139)	(1,079)	(5,072)	(341)			35,168	(6,632)	891
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	2,052	1,494	27,674	1,602	(1,477)	(3,598)	(9,429)	(2,767)	$ (10,177)	$ (7,093)	32,823	(17,272)	(2,984)
Net income (loss) attributable to the non-controlling interest	739	820	17,040	1,008	(1,739)	(2,001)	(7,413)	$ (2,767)			19,606	(13,921)	$ (2,984)
Net income (loss) attributable to Adeptus Health Inc.	$ 1,313	$ 674	$ 10,634	$ 594	$ 262	$ (1,597)	$ (2,016)				$ 13,217	$ (3,351)
Basic and diluted (in dollars per share)	$ 0.09	$ 0.05	$ 0.97	$ 0.06	$ 0.03	$ (0.16)	$ (0.21)

Uncategorized Items - adpt-2015

Label	Element	Value
Noncontrolling Interest [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	$ (6,826,000)
Retained Earnings [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	(3,351,000)
Adeptus Health L L C Equity [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	(7,093,000)
Total Stockholders Equity Including Noncontrolling Interests [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	$ (3,351,000)