We recognize revenue when services/goods have been provided to patients/customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Our estimate for amounts not expected to be collected based on historical experience will continue to be recognized as a reduction to net revenue. However, subsequent changes in estimate of collectability due to a change in the financial status of a payer, for example a bankruptcy, will be recognized as bad debt expense in operating charges.

The performance obligation is separately identifiable from other promises in the customer contract. As the performance obligations are met (i.e.: room, board, ancillary services, level of care), revenue is recognized based upon allocated transaction price. The transaction price is allocated to separate performance obligations based upon the relative standalone selling price. In instances where we determine there are multiple performance obligations across multiple months, the transaction price will be allocated by applying an estimated implicit and explicit rate to gross charges based on the separate performance obligations.

In assessing collectability, we have elected the portfolio approach. This portfolio approach is being used as we have large volume of similar contracts with similar classes of customers. We reasonably expect that the effect of applying a portfolio approach to a group of contracts would not differ materially from considering each contract separately. Management’s judgment to group the contracts by portfolio is based on the payment behavior expected in each portfolio category. As a result, aggregating all of the contracts (which are at the patient level) by the particular payer or group of payers, will result in the recognition of the same amount of revenue as applying the analysis at the individual patient level.

We group our revenues into categories based on payment behaviors. Each component has its own reimbursement structure which allows us to disaggregate the revenue into categories that share the nature and timing of payments. The other patient revenue consists primarily of self-pay, government-funded non-Medicaid, and other.

The following table disaggregates our revenue by major source for the three and six-month periods ended June 30, 2026 and 2025 (in thousands):

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.


	For the three months ended June 30, 2026
	Acute Care				Behavioral Health				Other		Total
Medicare	$	396,244	15	%	$	82,461	4	%			$	478,705	10	%
Managed Medicare		435,547	17	%		113,126	6	%				548,673	12	%
Medicaid		351,396	13	%		468,806	23	%				820,202	18	%
Managed Medicaid		168,779	6	%		484,959	24	%				653,738	14	%
Managed Care (HMO and PPOs)		805,509	31	%		396,632	20	%				1,202,141	26	%
UK Revenue		0	0	%		269,204	13	%				269,204	6	%
Other patient revenue and adjustments, net		159,375	6	%		151,333	7	%				310,708	7	%
Other non-patient revenue		293,149	11	%		58,544	3	%		2,948		354,641	8	%
Total Net Revenue	$	2,609,999	100	%	$	2,025,065	100	%	$	2,948		4,638,012	100	%

	For the six months ended June 30, 2026
	Acute Care				Behavioral Health				Other		Total
Medicare	$	796,747	15	%	$	163,635	4	%			$	960,382	11	%
Managed Medicare		883,546	17	%		215,227	6	%				1,098,773	12	%
Medicaid		721,693	14	%		808,409	21	%				1,530,102	17	%
Managed Medicaid		340,604	7	%		959,736	25	%				1,300,340	14	%
Managed Care (HMO and PPOs)		1,598,935	31	%		803,704	21	%				2,402,639	26	%
UK Revenue		0	0			530,416	14	%				530,416	6	%
Other patient revenue and adjustments, net		329,615	6	%		310,437	8	%				640,052	7	%
Other non-patient revenue		548,995	11	%		115,653	3	%		5,842		670,490	7	%
Total Net Revenue	$	5,220,135	100	%	$	3,907,217	100	%	$	5,842	$	9,133,194	100	%

	For the three months ended June 30, 2025
	Acute Care				Behavioral Health				Other		Total
Medicare	$	375,700	16	%	$	73,547	4	%			$	449,247	10	%
Managed Medicare		412,640	17	%		106,532	6	%				519,172	12	%
Medicaid		281,747	12	%		362,374	19	%				644,121	15	%
Managed Medicaid		171,221	7	%		448,387	24	%				619,608	14	%
Managed Care (HMO and PPOs)		811,048	34	%		416,805	22	%				1,227,853	29	%
UK Revenue		0	0	%		246,906	13	%				246,906	6	%
Other patient revenue and adjustments, net		147,136	6	%		162,925	9	%				310,061	7	%
Other non-patient revenue		204,345	9	%		59,797	3	%		2,706		266,848	6	%
Total Net Revenue	$	2,403,837	100	%	$	1,877,273	100	%	$	2,706	$	4,283,816	100	%

	For the six months ended June 30, 2025
	Acute Care				Behavioral Health				Other		Total
Medicare	$	767,793	16	%	$	149,493	4	%			$	917,286	11	%
Managed Medicare		833,774	18	%		205,697	6	%				1,039,471	12	%
Medicaid		534,512	11	%		636,517	18	%				1,171,029	14	%
Managed Medicaid		332,940	7	%		889,497	25	%				1,222,437	15	%
Managed Care (HMO and PPOs)		1,592,634	33	%		820,020	23	%				2,412,654	29	%
UK Revenue		0	0	%		473,974	13	%				473,974	6	%
Other patient revenue and adjustments, net		296,500	6	%		323,634	9	%				620,134	7	%
Other non-patient revenue		403,498	8	%		117,505	3	%		5,548		526,551	6	%
Total Net Revenue	$	4,761,651	100	%	$	3,616,337	100	%	$	5,548	$	8,383,536	100	%