We recognize revenue when we transfer promised goods or services to 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, 2024 and 2023 (in thousands):


	For the three months ended June 30, 2024
	Acute Care				Behavioral Health				Other		Total
Medicare	$	338,077	16	%	$	76,331	4	%			$	414,408	11	%
Managed Medicare		369,288	17	%		103,404	6	%				472,692	12	%
Medicaid		239,470	11	%		293,498	17	%				532,968	14	%
Managed Medicaid		152,760	7	%		416,237	24	%				568,997	15	%
Managed Care (HMO and PPOs)		705,318	32	%		421,879	24	%				1,127,197	29	%
UK Revenue		0	0	%		212,706	12	%				212,706	5	%
Other patient revenue and adjustments, net		134,149	6	%		150,146	9	%				284,295	7	%
Other non-patient revenue		234,347	11	%		57,108	3	%		2,886		294,341	8	%
Total Net Revenue	$	2,173,409	100	%	$	1,731,309	100	%	$	2,886		3,907,604	100	%

	For the six months ended June 30, 2024
	Acute Care				Behavioral Health				Other		Total
Medicare	$	687,164	16	%	$	153,147	5	%			$	840,311	11	%
Managed Medicare		742,689	17	%		199,478	6	%				942,167	12	%
Medicaid		474,332	11	%		541,861	16	%				1,016,193	13	%
Managed Medicaid		312,119	7	%		839,545	25	%				1,151,664	15	%
Managed Care (HMO and PPOs)		1,404,103	32	%		826,052	24	%				2,230,155	29	%
UK Revenue		0	0	%		420,502	12	%				420,502	5	%
Other patient revenue and adjustments, net		257,482	6	%		294,277	9	%				551,759	7	%
Other non-patient revenue		480,601	11	%		112,514	3	%		5,320		598,435	8	%
Total Net Revenue	$	4,358,490	100	%	$	3,387,376	100	%	$	5,320	$	7,751,186	100	%

	For the three months ended June 30, 2023
	Acute Care				Behavioral Health				Other		Total
Medicare	$	334,073	17	%	$	75,697	5	%			$	409,770	12	%
Managed Medicare		344,975	17	%		85,611	6	%				430,586	12	%
Medicaid		134,521	7	%		215,329	14	%				349,850	10	%
Managed Medicaid		171,824	9	%		397,389	26	%				569,213	16	%
Managed Care (HMO and PPOs)		702,499	35	%		386,377	25	%				1,088,876	31	%
UK Revenue		0	0	%		190,114	12	%				190,114	5	%
Other patient revenue and adjustments, net		74,290	4	%		136,158	9	%				210,448	6	%
Other non-patient revenue		240,897	12	%		55,519	4	%		2,865		299,281	8	%
Total Net Revenue	$	2,003,079	100	%	$	1,542,194	100	%	$	2,865	$	3,548,138	100	%

	For the six months ended June 30, 2023
	Acute Care				Behavioral Health				Other		Total
Medicare	$	663,519	17	%	$	152,241	5	%			$	815,760	12	%
Managed Medicare		689,007	17	%		160,688	5	%				849,695	12	%
Medicaid		244,530	6	%		421,802	14	%				666,332	9	%
Managed Medicaid		364,122	9	%		796,340	26	%				1,160,462	17	%
Managed Care (HMO and PPOs)		1,357,294	34	%		777,674	26	%				2,134,968	30	%
UK Revenue		0	0	%		357,903	12	%				357,903	5	%
Other patient revenue and adjustments, net		195,247	5	%		257,835	9	%				453,082	6	%
Other non-patient revenue		462,892	12	%		108,200	4	%		6,362		577,454	8	%
Total Net Revenue	$	3,976,611	100	%	$	3,032,683	100	%	$	6,362	$	7,015,656	100	%