Business and Basis of Presentation

3 Months Ended

Sep. 30, 2011

Business and Basis Presentation [Abstract]

BUSINESS AND BASIS OF PRESENTATION

1.       BUSINESS AND BASIS OF PRESENTATION

Initial Public Offering

In June 2011, Vanguard Health Systems, Inc. (“Vanguard”) completed the initial public offering of 25,000,000 shares of common stock. Vanguard's common stock is now traded on the New York Stock Exchange (symbol “VHS”). Including the exercise of the underwriters' over-allotment in July 2011 of 3,750,000 shares, a total of 28,750,000 shares were sold. Immediately prior to the public offering, Vanguard completed a 59.584218-to-1 split of its issued and outstanding common shares. All common share and per common share amounts in these condensed consolidated financial statements and notes to the condensed consolidated financial statements reflect the split.

       Vanguard is an investor-owned healthcare company whose subsidiaries and affiliates own and operate hospitals and related healthcare businesses in urban and suburban areas. As of September 30, 2011, Vanguard's subsidiaries and affiliates owned and managed28 acute care and specialty hospitals with 7,064 licensed beds and related outpatient service locations complementary to the hospitals providing healthcare services in San Antonio, Harlingen and Brownsville, Texas; metropolitan Detroit, Michigan; metropolitan Phoenix, Arizona; metropolitan Chicago, Illinois; and Massachusetts. Vanguard also owns managed health plans in Chicago, Illinois and Phoenix, Arizona and two surgery centers in Orange County, California.

Basis of Presentation

       The accompanying condensed consolidated financial statements include the accounts of subsidiaries and affiliates controlled by Vanguard. Vanguard generally defines control as the ownership of the majority of an entity's voting interests. Vanguard also consolidates any variable interest entities for which it is deemed to be the primary beneficiary. All material intercompany accounts and transactions have been eliminated. Certain prior year amounts from the accompanyingcondensed consolidated financial statements have been reclassified to conform to current year presentation, including the impact of the presentation of the provision for doubtful accounts as further discussed in Note 12. The majority of Vanguard's expenses are “cost of revenue” items. Costs that could be classified as general and administrative include certain Vanguard corporate office costs, which approximated $17.3 million and$13.9 millionas of September 30, 2010 and 2011, respectively.

       The unaudited condensed consolidated financial statements as of September 30, 2011 have been prepared in conformity with accounting principles generally accepted in the United States for interim reporting and in accordance with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial position and the results of operations for the periods presented. The results of operations for the periods presented are not necessarily indicative of the expected results for the fiscal year ending June 30, 2012. The interim unaudited condensed consolidated financial statements should be read in connection with the audited consolidated financial statements as of and for the year ended June 30, 2011 included in Vanguard's Annual Report on Form 10-K (“10-K”) filed with the Securities and Exchange Commission on August 25, 2011. The accompanyingcondensed consolidated balance sheet at June 30, 2011, has been derived from the audited consolidated financial statements included in the 10-K, but recastto reflect the impact of updated estimates of liabilities assumed (including the related income tax effect) in the acquisition of The Detroit Medical Center (“DMC”) since June 30, 2011 as described in Note 3.

Use of Estimates

       In preparing Vanguard's financial statements in conformity with accounting principles generally accepted in the United States, management makes estimates and assumptions that affect the amounts recorded or classification of items in thecondensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.