| Segment Reporting |
(7) Segment Reporting We operate in two reportable segments: Acute Care Hospital Services and Behavioral Health Care Services. Our chief operating decision making (“CODM”) group is comprised of our President and Chief Executive Officer and each of our respective division Presidents for our Acute Care Hospital Services and Behavioral Health Care Services. As a result of a recent resignation of our President of Behavioral Health Care Services, our Chief Executive Officer and President has assumed interim responsibilities for the segment until the position is filled. The operating segments are managed separately because each operating segment represents a business unit that offers different types of healthcare services or operates in different healthcare environments. The primary profitability measurement utilized by the President and Chief Executive Officer as well as the Presidents of each operating segment is segment income before income taxes. Segment income before income taxes is utilized by the CODM group during the annual budgeting process and during their reviews of our monthly operating results to monitor each segment’s operating results as compared to prior periods, and the respective operating budgets. The expenses included in our non-segment operating expenses below include centralized services including, but not limited to, information technology, purchasing, reimbursement, accounting and finance, taxation, legal, advertising and design and construction. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies included in our Annual Report on Form 10-K for the year ended December 31, 2025. We do not present asset information for our segments as this information is not used to allocate resources. Note: prior year amounts related to certain facilities previously included in our Behavioral Health Care Services’ results have been reclassified into our Acute Care Hospital Services' results as of January 1, 2025 to conform with current year presentation.
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Three Months Ended June 30, 2026 |
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Acute Care
Hospital
Services |
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Behavioral
Health Care
Services (c) |
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Total |
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(amounts in thousands) |
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Net revenue from reportable segments |
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$ |
2,609,999 |
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|
$ |
2,025,065 |
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$ |
4,635,064 |
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Reconciliation of Net Revenue |
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Non-segment revenue |
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2,948 |
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Total Net Revenue |
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$ |
4,638,012 |
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Salaries, wages and benefits |
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$ |
999,864 |
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$ |
1,040,604 |
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Other segment item operating expenses (a) |
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1,275,546 |
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514,439 |
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Depreciation and amortization expense |
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106,623 |
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58,895 |
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Interest (income) expense, net |
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1,301 |
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1,273 |
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Other (income) expense, net |
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(985 |
) |
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(983 |
) |
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Reportable segment income before income taxes |
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$ |
227,650 |
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$ |
410,837 |
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$ |
638,487 |
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Reconciliation of non-segment revenue/expenses to consolidated income before income taxes |
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Non-segment revenue |
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2,948 |
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Non-segment operating expenses (b) |
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125,366 |
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Non-segment interest expense, net |
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37,338 |
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Non-segment other (income) expense, net |
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(395 |
) |
Income before income taxes |
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$ |
479,126 |
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Six Months Ended June 30, 2026 |
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Acute Care
Hospital
Services |
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Behavioral
Health Care
Services (c) |
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Total |
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(amounts in thousands) |
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Net revenue from reportable segments |
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$ |
5,220,135 |
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$ |
3,907,217 |
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$ |
9,127,352 |
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Reconciliation of Net Revenue |
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Non-segment revenue |
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5,842 |
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Total Net Revenue |
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$ |
9,133,194 |
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Salaries, wages and benefits |
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$ |
1,972,710 |
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$ |
2,041,698 |
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Other segment item operating expenses (a) |
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2,529,903 |
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976,639 |
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Depreciation and amortization expense |
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|
202,941 |
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115,529 |
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Interest (income) expense, net |
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2,287 |
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2,545 |
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Other (income) expense, net |
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(3,117 |
) |
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(1,866 |
) |
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Reportable segment income before income taxes |
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$ |
515,411 |
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$ |
772,672 |
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$ |
1,288,083 |
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Reconciliation of non-segment revenue/expenses to consolidated income before income taxes |
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Non-segment revenue |
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5,842 |
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Non-segment operating expenses (b) |
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274,239 |
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Non-segment interest expense, net |
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72,213 |
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Non-segment other (income) expense, net |
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(769 |
) |
Income before income taxes |
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$ |
948,242 |
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Three Months Ended June 30, 2025 |
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Acute Care
Hospital
Services |
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Behavioral
Health Care
Services (c) |
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Total |
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Net revenue from reportable segments |
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$ |
2,403,837 |
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$ |
1,877,273 |
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$ |
4,281,110 |
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Reconciliation of Net Revenue |
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Non-segment revenue |
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2,706 |
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Total Net Revenue |
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$ |
4,283,816 |
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Salaries, wages and benefits |
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$ |
938,708 |
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$ |
975,553 |
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Other segment item operating expenses (a) |
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|
1,142,886 |
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|
452,664 |
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Depreciation and amortization expense |
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|
96,459 |
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|
53,170 |
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Interest expense, net |
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(1,613 |
) |
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|
1,104 |
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Other expense (income), net |
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(916 |
) |
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|
(837 |
) |
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Reportable segment income before income taxes |
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$ |
228,313 |
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$ |
395,619 |
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$ |
623,932 |
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Reconciliation of non-segment revenue/expenses to consolidated income before income taxes |
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Non-segment revenue |
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2,706 |
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Non-segment operating expenses (b) |
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124,106 |
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Non-segment interest expense, net |
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35,873 |
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Non-segment other (income) expense, net |
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(6,726 |
) |
Income before income taxes |
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$ |
473,385 |
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Six Months Ended June 30, 2025 |
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Acute Care
Hospital
Services |
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|
Behavioral
Health Care
Services (c) |
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Total |
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(amounts in thousands) |
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Net revenue from reportable segments |
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$ |
4,761,651 |
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$ |
3,616,337 |
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$ |
8,377,988 |
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Reconciliation of Net Revenue |
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Non-segment revenue |
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5,548 |
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Total Net Revenue |
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$ |
8,383,536 |
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Salaries, wages and benefits |
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$ |
1,854,232 |
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$ |
1,898,919 |
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Other segment item operating expenses (a) |
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|
2,233,584 |
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|
881,438 |
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Depreciation and amortization expense |
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|
191,362 |
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|
104,322 |
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Interest expense, net |
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|
649 |
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|
2,179 |
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Other expense (income), net |
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|
(9,183 |
) |
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(1,662 |
) |
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Reportable segment income before income taxes |
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$ |
491,007 |
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$ |
731,141 |
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$ |
1,222,148 |
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Reconciliation of non-segment revenue/expenses to consolidated income before income taxes |
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Non-segment revenue |
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5,548 |
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Non-segment operating expenses (b) |
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|
264,584 |
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Non-segment interest expense, net |
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|
72,592 |
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Non-segment other (income) expense, net |
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(3,293 |
) |
Income before income taxes |
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$ |
893,813 |
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(a)Other segment operating expenses for each period includes other operating expenses, supplies expense and lease and rental expense. (b)Non-segment operating expenses for each period includes salaries, wages and benefits, other operating expenses, supplies expense and lease and rental expense. (c)Includes net revenues generated from our behavioral health care facilities located in the U.K. amounting to approximately $269 million and $247 million for the three-month periods ended June 30, 2026 and 2025, respectively, and approximately $530 million and $474 million for the six-month periods ended June 30, 2026 and 2025, respectively. |