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NET OPERATING REVENUES
6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
NET OPERATING REVENUES NET OPERATING REVENUES
Net operating revenues for our Hospital Operations and Ambulatory Care segments primarily consist of net patient service revenues, principally for patients covered by Medicare, Medicaid, and managed care and other health plans, as well as certain uninsured patients under our Compact with Uninsured Patients and other uninsured discount and charity programs. Net operating revenues for our Hospital Operations segment also include revenues from providing revenue cycle management and value‑based care services to hospitals, health systems, physician practices, employers and other clients.
The table below presents our sources of net operating revenues:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
Hospital Operations:  
Net patient service revenues from hospitals and related outpatient facilities:
Medicare$530 $518 $1,078 $1,128 
Medicaid379 370 759 781 
Managed care2,423 2,383 4,823 5,039 
Uninsured— 11 35 30 
Indemnity and other121 137 238 291 
Total3,453 3,419 6,933 7,269 
Other revenues(1)
548 548 1,097 1,071 
Total Hospital Operations4,001 3,967 8,030 8,340 
Ambulatory Care1,270 1,141 2,464 2,136 
Net operating revenues$5,271 $5,108 $10,494 $10,476 
(1)Primarily revenue from physician practices and revenue cycle management.
Adjustments for prior‑year cost reports and related valuation allowances, principally related to Medicare and Medicaid, increased revenues in the six months ended June 30, 2025 and 2024 by $13 million and $2 million, respectively. Estimated cost report settlements receivable, net of payables and valuation allowances, were included in accounts receivable in the accompanying Condensed Consolidated Balance Sheets (see Note 2). We believe that we have made adequate provision for any adjustments that may result from the final determination of amounts earned under all the above arrangements with Medicare and Medicaid.
The table below presents the composition of net operating revenues for our Ambulatory Care segment:
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
Net patient service revenues
$1,214 $1,100 $2,357 $2,054 
Other revenues(1)
56 41 107 82 
Net operating revenues$1,270 $1,141 $2,464 $2,136 
(1)Primarily revenue from management fees and other sources.
Performance Obligations
The following table presents revenue from revenue cycle management services that is expected to be recognized in the future related to performance obligations that are unsatisfied, or partially unsatisfied, at the end of the reporting period:
  Six
Months
 Ending
Years EndingLater Years
December 31,
 Total20252026202720282029
Performance obligations$5,298 $364 $720 $717 $717 $716 $2,064 
The amounts in the table primarily consist of revenue cycle management fixed fees, which are typically recognized ratably as the performance obligation is satisfied. The estimated revenue does not include volume‑ or contingency‑based contracts, variable‑based escalators, performance incentives, penalties or other variable consideration that is considered constrained. Our contract with Catholic Health Initiatives (“CHI”), now known as CommonSpirit Health and the minority interest holder in our Conifer Health Solutions, LLC joint venture, represents the majority of the fixed‑fee revenue related to remaining performance obligations. Our contract term with CHI is scheduled to end on December 31, 2032.