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Lease Accounting
9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Lease Accounting

(13) Lease Accounting

Our operating leases are primarily for real estate, including certain acute care facilities, off-campus outpatient facilities, medical office buildings, and corporate and other administrative offices. Our real estate lease agreements typically have initial terms of five to ten years. These real estate leases may include one or more options to renew, with renewals that can extend the lease term from five to ten years. The exercise of lease renewal options is at our sole discretion. When determining the lease term, we included options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

Five of our hospital facilities are held under operating leases with Universal Health Realty Income Trust with two leases expiring in 2026, two expiring in 2033 and one expiring in 2040 (for additional disclosure, see Note 2 to the Consolidated Financial Statements-Relationship with Universal Health Realty Income Trust and Other Related Party Transactions). We are also the lessee of the real property of certain facilities from unrelated third parties.

Supplemental cash flow information related to leases for the nine-month period ended September 30, 2024 and 2023 are as follows (in thousands):

 

Nine months ended
September 30,

 

 

2024

 

 

2023

 

 

 

 

 

 

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

Operating cash flows from operating leases

$

99,526

 

 

$

96,922

 

Operating cash flows from finance leases

$

2,756

 

 

$

2,890

 

Financing cash flows from finance leases

$

3,167

 

 

$

2,910

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations:

 

 

 

 

 

Operating leases

$

50,696

 

 

$

50,940

 

Finance leases

$

8,441

 

 

$

452