the company considers the following to be its critical accounting policies and estimates : managed care and other revenue managed care revenue . managed care revenue , inclusive of revenue from the company 's risk , eap and aso contracts , is recognized over the applicable coverage period on a per member basis for covered members . the company is paid a per member fee for all enrolled members , and this fee is recorded as revenue in the month in which members are entitled to service . the company adjusts its revenue for retroactive membership terminations , additions and other changes , when such adjustments are identified , with the exception of retroactivity that can be reasonably estimated . the impact of retroactive rate amendments is generally recorded in the accounting period in which terms to the amendment are finalized , and that the amendment is executed . any fees paid prior to the month of service are recorded as deferred revenue . managed care revenues approximated $ 2.6 billion , $ 2.7 billion and $ 2.3 billion for the years ended december 31 , 2014 , 2015 and 2016 , respectively . fee‑for‑service , fixed fee and cost‑plus contracts . the company has certain contracts with customers under which the company recognizes revenue as services are performed and as costs are incurred . this includes revenues received in relation to the patient protection and affordable care act health insurer fee ( “ hif fee ” ) billed on a cost reimbursement basis . revenues from these contracts approximated $ 290.9 million , $ 342.0 million and $ 503.2 million for the years ended december 31 , 2014 , 2015 and 2016 , respectively . rebate revenue . the company administers a rebate program for certain clients through which the company coordinates the achievement , calculation and collection of rebates and administrative fees from pharmaceutical manufacturers on behalf of clients . each period , the company estimates the total rebates earned based on actual volumes of pharmaceutical purchases by the company 's clients , as well as historical and or anticipated sharing percentages . the company earns fees based upon the volume of rebates generated for its clients . the company does not record as rebate revenue any rebates that are passed through to its clients . total rebate revenues for the years ended december 31 , 2014 , 2015 and 2016 approximated $ 43.6 million , $ 88.7 million and $ 85.4 million , respectively . in relation to the company 's pbm business , the company administers rebate programs through which it receives rebates from pharmaceutical manufacturers that are shared with its customers . the company recognizes rebates 33 when the company is entitled to them and when the amounts of the rebates are determinable . the amount recorded for rebates earned by the company from the pharmaceutical manufacturers is recorded as a reduction of cost of goods sold . pbm and dispensing revenue pharmacy benefit management revenue . the company recognizes pbm revenue , which consists of a negotiated prescription price ( ingredient cost plus dispensing fee ) , co‑payments collected by the pharmacy and any associated administrative fees , when claims are adjudicated . the company recognizes pbm revenue on a gross basis ( i.e . including drug costs and co‑payments ) as it is acting as the principal in the arrangement and is contractually obligated to its clients and network pharmacies , which is a primary indicator of gross reporting . in addition , the company is solely responsible for the claims adjudication process , negotiating the prescription price for the pharmacy , collection of payments from the client for drugs dispensed by the pharmacy , and managing the total prescription drug relationship with the client 's members . if the company enters into a contract where it is only an administrator , and does not assume any of the risks previously noted , revenue will be recognized on a net basis . pbm revenues approximated $ 575.7 million , $ 1.2 billion and $ 1.5 billion for the years ended december 31 , 2014 , 2015 and 2016 , respectively . dispensing revenue . the company recognizes dispensing revenue , which includes the co‑payments received from members of the health plans the company serves , when the specialty pharmaceutical drugs are shipped . at the time of shipment , the earnings process is complete ; the obligation of the company 's customer to pay for the specialty pharmaceutical drugs is fixed , and , due to the nature of the product , the member may neither return the specialty pharmaceutical drugs nor receive a refund . revenues from the dispensing of specialty pharmaceutical drugs on behalf of health plans approximated $ 216.0 million , $ 211.6 million and $ 221.8 million for the years ended december 31 , 2014 , 2015 and 2016 , respectively . medicare part d. the company is contracted with cms as a prescription drug plan ( “ pdp ” ) to provide prescription drug benefits to medicare beneficiaries . net revenues include premiums earned by the pdp , which includes a direct premium paid by cms and a beneficiary premium paid by the pdp member . in cases of low-income members , the beneficiary premium may be subsidized by cms . the company recognizes premium revenues on a monthly basis on a per member basis for covered members . in addition to these premiums , net revenues includes certain payments from the members based on the members ' actual prescription claims , including co-payments , coverage gap benefits , deductibles and co-insurance ( collectively , “ member responsibilities ” ) . the company receives a prospective subsidy payment from cms each month to subsidize a portion of the member responsibilities for low-income members . story_separator_special_tag the ultimate resolution of a disputed tax position following an examination by a taxing authority could result in a payment that is materially different from that accrued by the company . results of operations the accounting policies of the company 's segments are the same as those described in note 1— “ general . ” the company evaluates performance of its segments based on profit or loss from operations before stock compensation expense , depreciation and amortization , interest expense , interest and other income , changes in the fair value of contingent consideration recorded in relation to acquisitions , gain on sale of assets , special charges or benefits , and income taxes ( “ segment profit ” ) . management uses segment profit information for internal reporting and control purposes and considers it important in making decisions regarding the allocation of capital and other resources , risk 38 assessment and employee compensation , among other matters . healthcare subcontracts with pharmacy management to provide pharmacy benefits management services for certain of healthcare 's customers . in addition , pharmacy management provides pharmacy benefits management for the company 's employees covered under its medical plan . as such , revenue , cost of goods sold and direct service costs and other related to these arrangements are eliminated . the company 's segments are defined above . the following tables summarize , for the periods indicated , operating results by business segment ( in thousands ) : replace_table_token_11_th replace_table_token_12_th replace_table_token_13_th ( 1 ) stock compensation expense , changes in the fair value of contingent consideration recorded in relation to the acquisitions and impairment of intangible assets are included in direct service costs and other operating expenses ; however , these amounts are excluded from the computation of segment profit . ( 2 ) the non‑controlling interest portion of alphacare of new york , inc. 's ( “ alphacare ” ) segment profit ( loss ) is excluded from the computation of segment profit . 39 ( 3 ) effective january 1 , 2016 , the company implemented changes related to the allocation of corporate operational and support functions . these changes were applied retrospectively . the following tables summarize , for the periods indicated , the changes by business segment ( in thousands ) : replace_table_token_14_th replace_table_token_15_th replace_table_token_16_th the following table reconciles consolidated income before income taxes to segment profit for the years ended december 31 , 2014 , 2015 and 2016 ( in thousands ) : replace_table_token_17_th non‑gaap measures the company reports its financial results in accordance with gaap , however the company 's management also assesses business performance and makes business decisions regarding the company 's operations using certain non‑gaap measures . in addition to segment profit , as defined above , the company also uses adjusted net income attributable to magellan health , inc. ( “ adjusted net income ” ) and adjusted net income per common share attributable to magellan health , inc. on a diluted basis ( “ adjusted eps ” ) . adjusted net income and adjusted eps reflect certain adjustments made for acquisitions completed after january 1 , 2013 to exclude non‑cash stock compensation expense resulting from restricted stock purchases by sellers , changes in the fair value of contingent consideration , amortization of identified acquisition intangibles , as well as impairment of identified acquisition intangibles . the company believes these non‑gaap measures provide a more useful comparison of the company 's underlying business performance from 40 period to period and are more representative of the earnings capacity of the company . non‑gaap financial measures we disclose , such as segment profit , adjusted net income and adjusted eps , should not be considered a substitute for , or superior to , financial measures determined or calculated in accordance with gaap . the following table reconciles net income attributable to magellan health , inc. to adjusted net income for the years ended december 31 , 2014 , 2015 , and 2016 ( in thousands ) : replace_table_token_18_th the following table reconciles net income per common share attributable to magellan health , inc.—diluted to adjusted eps for the years ended december 31 , 2014 , 2015 , and 2016 : replace_table_token_19_th year ended december 31 , 2016 ( “ 2016 ” ) compared to the year ended december 31 , 2015 ( “ 2015 ” ) healthcare net revenue net revenue related to healthcare decreased by 10.1 percent or $ 299.6 million from 2015 to 2016. the decrease in revenue is mainly due to terminated contracts of $ 665.8 million , unfavorable rate changes of $ 58.8 million , program changes of $ 54.3 million , profit share of $ 8.0 million and other net decreases of $ 0.3 million . these decreases were partially offset by increased membership from existing customers of $ 311.4 million , revenue for afsc acquired on july 1 , 2016 of $ 88.0 million , contracts implemented after ( or during ) 2015 of $ 43.1 million , revenue for tmg acquired february 29 , 2016 of $ 41.8 million and favorable retroactive rate adjustments recorded in 2016 of $ 3.3 million . cost of care cost of care decreased by 17.2 percent or $ 392.1 million from 2015 to 2016. the decrease in cost of care is primarily due to terminated contracts of $ 571.9 million , lower care associated with unfavorable rate changes of $ 64.2 million , program changes of $ 47.5 million , favorable 2015 medical claims development recorded after 2015 of $ 16.7 million , net favorable prior period medical claims development recorded in 2016 of $ 10.3 million and care trends and other net favorable variances of $ 69.1 million . these decreases were partially offset by increased membership from existing customers of $ 282.5 million , care costs for afsc acquired on july 1 , 2016 of $ 56.2 million , new contracts 41 implemented after ( or during ) 2015

liquidity during 2017 , the company will have estimated capital expenditures of between $ 65.0 million and $ 75.0 million . the company may draw on the 2014 credit facility or 2017 credit facility ( as defined in note 13 – “ subsequent events ” ) as required to meet working capital needs associated with the timing of receivables and payables , fund share repurchases or support acquisition activities . the company currently expects to have adequate liquidity to satisfy its existing financial commitments over the periods in which they will become due . during 2017 , scheduled principal payments of $ 25.0 million will be made under the 2014 credit facility , and the 2016 credit facility and the 2017 credit facility will mature on december 29 , 2017. the company currently expects to settle its 2017 debt obligations through current unrestricted cash and investment balances and cash flows from operations in 2017 , as well as borrowing capacity 47 available under the 2014 credit facility in the form of revolving loans . during 2017 , the company may consider refinancing its debt . the company plans to maintain its current investment strategy of investing in a diversified , high quality , liquid portfolio of investments and continues to closely monitor the situation in the financial markets . the company estimates that it has no risk of any material permanent loss on its investment portfolio ; however , there can be no assurance the company will not experience any such losses in the future . contractual obligations and commitments the following table sets forth the future financial commitments of the company as of december 31 , 2016 ( in thousands ) : replace_table_token_20_th ( 1 ) operating lease obligations include estimated future lease payments for both open and closed offices . ( 2 ) these letters of credit typically act as a guarantee of payment to certain third parties in accordance with specified terms and conditions .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity during 2017 , the company will have estimated capital expenditures of between $ 65.0 million and $ 75.0 million . the company may draw on the 2014 credit facility or 2017 credit facility ( as defined in note 13 – “ subsequent events ” ) as required to meet working capital needs associated with the timing of receivables and payables , fund share repurchases or support acquisition activities . the company currently expects to have adequate liquidity to satisfy its existing financial commitments over the periods in which they will become due . during 2017 , scheduled principal payments of $ 25.0 million will be made under the 2014 credit facility , and the 2016 credit facility and the 2017 credit facility will mature on december 29 , 2017. the company currently expects to settle its 2017 debt obligations through current unrestricted cash and investment balances and cash flows from operations in 2017 , as well as borrowing capacity 47 available under the 2014 credit facility in the form of revolving loans . during 2017 , the company may consider refinancing its debt . the company plans to maintain its current investment strategy of investing in a diversified , high quality , liquid portfolio of investments and continues to closely monitor the situation in the financial markets . the company estimates that it has no risk of any material permanent loss on its investment portfolio ; however , there can be no assurance the company will not experience any such losses in the future . contractual obligations and commitments the following table sets forth the future financial commitments of the company as of december 31 , 2016 ( in thousands ) : replace_table_token_20_th ( 1 ) operating lease obligations include estimated future lease payments for both open and closed offices . ( 2 ) these letters of credit typically act as a guarantee of payment to certain third parties in accordance with specified terms and conditions .
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 Suspicious Activity Report : the company considers the following to be its critical accounting policies and estimates : managed care and other revenue managed care revenue . managed care revenue , inclusive of revenue from the company 's risk , eap and aso contracts , is recognized over the applicable coverage period on a per member basis for covered members . the company is paid a per member fee for all enrolled members , and this fee is recorded as revenue in the month in which members are entitled to service . the company adjusts its revenue for retroactive membership terminations , additions and other changes , when such adjustments are identified , with the exception of retroactivity that can be reasonably estimated . the impact of retroactive rate amendments is generally recorded in the accounting period in which terms to the amendment are finalized , and that the amendment is executed . any fees paid prior to the month of service are recorded as deferred revenue . managed care revenues approximated $ 2.6 billion , $ 2.7 billion and $ 2.3 billion for the years ended december 31 , 2014 , 2015 and 2016 , respectively . fee‑for‑service , fixed fee and cost‑plus contracts . the company has certain contracts with customers under which the company recognizes revenue as services are performed and as costs are incurred . this includes revenues received in relation to the patient protection and affordable care act health insurer fee ( “ hif fee ” ) billed on a cost reimbursement basis . revenues from these contracts approximated $ 290.9 million , $ 342.0 million and $ 503.2 million for the years ended december 31 , 2014 , 2015 and 2016 , respectively . rebate revenue . the company administers a rebate program for certain clients through which the company coordinates the achievement , calculation and collection of rebates and administrative fees from pharmaceutical manufacturers on behalf of clients . each period , the company estimates the total rebates earned based on actual volumes of pharmaceutical purchases by the company 's clients , as well as historical and or anticipated sharing percentages . the company earns fees based upon the volume of rebates generated for its clients . the company does not record as rebate revenue any rebates that are passed through to its clients . total rebate revenues for the years ended december 31 , 2014 , 2015 and 2016 approximated $ 43.6 million , $ 88.7 million and $ 85.4 million , respectively . in relation to the company 's pbm business , the company administers rebate programs through which it receives rebates from pharmaceutical manufacturers that are shared with its customers . the company recognizes rebates 33 when the company is entitled to them and when the amounts of the rebates are determinable . the amount recorded for rebates earned by the company from the pharmaceutical manufacturers is recorded as a reduction of cost of goods sold . pbm and dispensing revenue pharmacy benefit management revenue . the company recognizes pbm revenue , which consists of a negotiated prescription price ( ingredient cost plus dispensing fee ) , co‑payments collected by the pharmacy and any associated administrative fees , when claims are adjudicated . the company recognizes pbm revenue on a gross basis ( i.e . including drug costs and co‑payments ) as it is acting as the principal in the arrangement and is contractually obligated to its clients and network pharmacies , which is a primary indicator of gross reporting . in addition , the company is solely responsible for the claims adjudication process , negotiating the prescription price for the pharmacy , collection of payments from the client for drugs dispensed by the pharmacy , and managing the total prescription drug relationship with the client 's members . if the company enters into a contract where it is only an administrator , and does not assume any of the risks previously noted , revenue will be recognized on a net basis . pbm revenues approximated $ 575.7 million , $ 1.2 billion and $ 1.5 billion for the years ended december 31 , 2014 , 2015 and 2016 , respectively . dispensing revenue . the company recognizes dispensing revenue , which includes the co‑payments received from members of the health plans the company serves , when the specialty pharmaceutical drugs are shipped . at the time of shipment , the earnings process is complete ; the obligation of the company 's customer to pay for the specialty pharmaceutical drugs is fixed , and , due to the nature of the product , the member may neither return the specialty pharmaceutical drugs nor receive a refund . revenues from the dispensing of specialty pharmaceutical drugs on behalf of health plans approximated $ 216.0 million , $ 211.6 million and $ 221.8 million for the years ended december 31 , 2014 , 2015 and 2016 , respectively . medicare part d. the company is contracted with cms as a prescription drug plan ( “ pdp ” ) to provide prescription drug benefits to medicare beneficiaries . net revenues include premiums earned by the pdp , which includes a direct premium paid by cms and a beneficiary premium paid by the pdp member . in cases of low-income members , the beneficiary premium may be subsidized by cms . the company recognizes premium revenues on a monthly basis on a per member basis for covered members . in addition to these premiums , net revenues includes certain payments from the members based on the members ' actual prescription claims , including co-payments , coverage gap benefits , deductibles and co-insurance ( collectively , “ member responsibilities ” ) . the company receives a prospective subsidy payment from cms each month to subsidize a portion of the member responsibilities for low-income members . story_separator_special_tag the ultimate resolution of a disputed tax position following an examination by a taxing authority could result in a payment that is materially different from that accrued by the company . results of operations the accounting policies of the company 's segments are the same as those described in note 1— “ general . ” the company evaluates performance of its segments based on profit or loss from operations before stock compensation expense , depreciation and amortization , interest expense , interest and other income , changes in the fair value of contingent consideration recorded in relation to acquisitions , gain on sale of assets , special charges or benefits , and income taxes ( “ segment profit ” ) . management uses segment profit information for internal reporting and control purposes and considers it important in making decisions regarding the allocation of capital and other resources , risk 38 assessment and employee compensation , among other matters . healthcare subcontracts with pharmacy management to provide pharmacy benefits management services for certain of healthcare 's customers . in addition , pharmacy management provides pharmacy benefits management for the company 's employees covered under its medical plan . as such , revenue , cost of goods sold and direct service costs and other related to these arrangements are eliminated . the company 's segments are defined above . the following tables summarize , for the periods indicated , operating results by business segment ( in thousands ) : replace_table_token_11_th replace_table_token_12_th replace_table_token_13_th ( 1 ) stock compensation expense , changes in the fair value of contingent consideration recorded in relation to the acquisitions and impairment of intangible assets are included in direct service costs and other operating expenses ; however , these amounts are excluded from the computation of segment profit . ( 2 ) the non‑controlling interest portion of alphacare of new york , inc. 's ( “ alphacare ” ) segment profit ( loss ) is excluded from the computation of segment profit . 39 ( 3 ) effective january 1 , 2016 , the company implemented changes related to the allocation of corporate operational and support functions . these changes were applied retrospectively . the following tables summarize , for the periods indicated , the changes by business segment ( in thousands ) : replace_table_token_14_th replace_table_token_15_th replace_table_token_16_th the following table reconciles consolidated income before income taxes to segment profit for the years ended december 31 , 2014 , 2015 and 2016 ( in thousands ) : replace_table_token_17_th non‑gaap measures the company reports its financial results in accordance with gaap , however the company 's management also assesses business performance and makes business decisions regarding the company 's operations using certain non‑gaap measures . in addition to segment profit , as defined above , the company also uses adjusted net income attributable to magellan health , inc. ( “ adjusted net income ” ) and adjusted net income per common share attributable to magellan health , inc. on a diluted basis ( “ adjusted eps ” ) . adjusted net income and adjusted eps reflect certain adjustments made for acquisitions completed after january 1 , 2013 to exclude non‑cash stock compensation expense resulting from restricted stock purchases by sellers , changes in the fair value of contingent consideration , amortization of identified acquisition intangibles , as well as impairment of identified acquisition intangibles . the company believes these non‑gaap measures provide a more useful comparison of the company 's underlying business performance from 40 period to period and are more representative of the earnings capacity of the company . non‑gaap financial measures we disclose , such as segment profit , adjusted net income and adjusted eps , should not be considered a substitute for , or superior to , financial measures determined or calculated in accordance with gaap . the following table reconciles net income attributable to magellan health , inc. to adjusted net income for the years ended december 31 , 2014 , 2015 , and 2016 ( in thousands ) : replace_table_token_18_th the following table reconciles net income per common share attributable to magellan health , inc.—diluted to adjusted eps for the years ended december 31 , 2014 , 2015 , and 2016 : replace_table_token_19_th year ended december 31 , 2016 ( “ 2016 ” ) compared to the year ended december 31 , 2015 ( “ 2015 ” ) healthcare net revenue net revenue related to healthcare decreased by 10.1 percent or $ 299.6 million from 2015 to 2016. the decrease in revenue is mainly due to terminated contracts of $ 665.8 million , unfavorable rate changes of $ 58.8 million , program changes of $ 54.3 million , profit share of $ 8.0 million and other net decreases of $ 0.3 million . these decreases were partially offset by increased membership from existing customers of $ 311.4 million , revenue for afsc acquired on july 1 , 2016 of $ 88.0 million , contracts implemented after ( or during ) 2015 of $ 43.1 million , revenue for tmg acquired february 29 , 2016 of $ 41.8 million and favorable retroactive rate adjustments recorded in 2016 of $ 3.3 million . cost of care cost of care decreased by 17.2 percent or $ 392.1 million from 2015 to 2016. the decrease in cost of care is primarily due to terminated contracts of $ 571.9 million , lower care associated with unfavorable rate changes of $ 64.2 million , program changes of $ 47.5 million , favorable 2015 medical claims development recorded after 2015 of $ 16.7 million , net favorable prior period medical claims development recorded in 2016 of $ 10.3 million and care trends and other net favorable variances of $ 69.1 million . these decreases were partially offset by increased membership from existing customers of $ 282.5 million , care costs for afsc acquired on july 1 , 2016 of $ 56.2 million , new contracts 41 implemented after ( or during ) 2015

