
	June 30, 2026		December 31, 2025

Patient accounts receivable	$	2,478	$	2,418
Estimated future recoveries	129		148
Cost reports and settlements receivable (payable), net of valuation allowances	1		(1)
Accounts receivable, net	$	2,608	$	2,565

Our Hospital Operations segment’s contract assets and liabilities primarily derive from: (1) patients receiving ongoing inpatient care from one of our facilities at the end of the reporting period; and (2) timing differences between our performance of revenue cycle management and other contract-based services and the invoicing or receipt of payment for these services. Our Hospital Operations segment’s contract assets were included in other current assets or investments and other assets, and its contract liabilities were included in other current liabilities or other long‑term liabilities in the accompanying Condensed Consolidated Balance Sheets. The following table presents the opening and closing balances of our Hospital Operations segment’s contract assets, current and long‑term receivables, and current and long‑term contract liabilities:


	Current Receivables		Contract Assets – Unbilled Revenue		Long-Term Receivables		Contract Liabilities – Current Deferred Revenue		Contract Liabilities – Long-Term Deferred Revenue
December 31, 2025	$	26	$	188	$	—	$	88	$	13
June 30, 2026	490		199		828		963		6
Increase (decrease)	$	464	$	11	$	828	$	875	$	(7)

December 31, 2024	$	28	$	190	$	—	$	80	$	13
June 30, 2025	32		191		—		112		13
Increase	$	4	$	1	$	—	$	32	$	—

The differences between the balances of our contract assets and liabilities at June 30, 2026 and December 31, 2025 were primarily attributable to the effect of the provisions in the Omnibus Agreement. Our contract balances during this period were also impacted by patients who were receiving inpatient acute care and specialty hospital services as of December 31, 2025, but who were discharged during the six months ended June 30, 2026. The differences between the balances of our contract assets and liabilities at June 30, 2025 and December 31, 2024 primarily related to patients who were receiving inpatient acute care and specialty hospital services as of December 31, 2024, but who were discharged during the six months ended June 30, 2025.

During the six months ended June 30, 2026 and 2025, we recognized revenue totaling $71 million and $54 million, respectively, from our revenue cycle management services that was included in the opening current deferred revenue liability. This revenue consists primarily of prepayments for those contract clients who were billed in advance, changes in estimates related to metric‑based services and up‑front integration services that are recognized over the service period.

Contract Costs—We recognized amortization expense related to deferred contract setup costs of $6 million and $3 million during the six months ended June 30, 2026 and 2025, respectively. At June 30, 2026 and December 31, 2025, unamortized client contract setup costs were $7 million and $13 million, respectively, and were presented as part of investments and other assets in the accompanying Condensed Consolidated Balance Sheets.

The following table presents our estimated costs (based on selected operating expenses, which include salaries, wages and benefits, supplies and other operating expenses) of caring for our uninsured and charity patients:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Estimated costs for:
Uninsured patients	$	132	$	104	$	240	$	218
Charity care patients	35		42		69		59
Total estimated costs for uninsured and charity care patients	$	167	$	146	$	309	$	277