Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2025

The total liabilities of VIEs included in the Company’s unaudited condensed consolidated balance sheets are shown below (in

thousands):


	June 30, 2025	December 31, 2024
Current liabilities:
Current installments of long-term debt	$2,883	$2,266
Accounts payable	88,973	89,428
Accrued salaries and benefits	38,858	37,713
Other accrued expenses and liabilities	52,688	45,250
Total current liabilities	183,402	174,657
Long-term debt, less current installments	11,591	8,192
Long-term operating lease liability	105,917	108,897
Long-term operating lease liability, related party	9,370	9,423
Self-insured liabilities	680	676
Other long-term liabilities	4,750	4,595
Total liabilities	$315,710	$306,440

Disaggregation of Revenue

The Company’s total revenue is presented in the following table (dollars in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	Amount	% of Total Revenue	Amount	% of Total Revenue	Amount	% of Total Revenue	Amount	% of Total Revenue
Medicare	$643,757	39.1%	$578,163	39.3%	$1,239,394	39.5%	$1,147,646	39.4%
Medicaid	159,733	9.7%	155,334	10.6%	309,076	9.9%	311,612	10.7%
Other managed care	724,053	44.0%	634,476	43.1%	1,369,205	43.6%	1,247,593	42.9%
Self-pay and other	92,104	5.6%	77,914	5.3%	173,083	5.4%	155,132	5.4%
Net patient service revenue	$1,619,647	98.4%	$1,445,887	98.3%	$3,090,758	98.4%	$2,861,983	98.4%
Other revenue	25,633	1.6%	25,033	1.7%	51,756	1.6%	47,983	1.6%
Total revenue	$1,645,280	100.0%	$1,470,920	100.0%	$3,142,514	100.0%	$2,909,966	100.0%

Revenue from External Customers by Geographic Areas

The following is an analysis by state of revenue as a percentage of the Company’s total

revenue for those states in which the Company generates significant revenue:


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Oklahoma	22.5%	25.4%	23.5%		24.8%
New Mexico	20.2%	14.7%	17.2%		15.1%
Texas	34.8%	35.5%	36.1%		36.0%
New Jersey	9.6%	10.1%	10.1%		10.2%
Other	12.9%	14.3%	13.1%		13.9%
Total	100.0%	100.0%	100.0%		100.0%

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The carrying amounts and fair values of the Company’s senior secured term loan facility and its 5.75% Senior Notes due

2029 (the “5.75% Senior Notes”) were as follows (in thousands):


	Carrying Amount		Fair Value
	June 30, 2025	December 31, 2024	June 30, 2025	December 31, 2024
Senior secured term loan facility	$774,292	$773,772	$777,195	$779,575
5.75% Senior Notes	$299,641	$299,596	$287,655	$289,110

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details