The company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Or 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 month periods ended March 31, 2020 and 2019 (in thousands):

	For the three months ended March 31, 2020
	Acute Care				Behavioral Health				Other		Total
Medicare	$	326,025	21	%	$	119,617	9	%			$	445,642	16	%
Managed Medicare		221,991	15	%		59,238	5	%				281,229	10	%
Medicaid		127,959	8	%		175,018	13	%				302,977	11	%
Managed Medicaid		123,455	8	%		302,557	23	%				426,012	15	%
Managed Care (HMO and PPOs)		540,737	36	%		340,687	26	%				881,424	31	%
UK Revenue		0	0	%		136,850	10	%				136,850	5	%
Other patient revenue and adjustments, net		64,599	4	%		123,060	9	%				187,659	7	%
Other non-patient revenue		116,283	8	%		49,082	4	%		2,509		167,874	6	%
Total Net Revenue	$	1,521,049	100	%	$	1,306,109	100	%	$	2,509		2,829,667	100	%

	For the three months ended March 31, 2019
	Acute Care				Behavioral Health				Other		Total
Medicare	$	335,909	22	%	$	137,456	11	%			$	473,365	17	%
Managed Medicare		209,103	14	%		52,259	4	%				261,362	9	%
Medicaid		104,510	7	%		172,916	13	%				277,426	10	%
Managed Medicaid		133,731	9	%		267,273	21	%				401,004	14	%
Managed Care (HMO and PPOs)		570,383	38	%		347,882	27	%				918,265	33	%
UK Revenue		0	0	%		136,702	11	%				136,702	5	%
Other patient revenue and adjustments, net		51,883	3	%		123,478	10	%				175,361	6	%
Other non-patient revenue		109,325	7	%		48,417	4	%		3,164		160,906	6	%
Total Net Revenue	$	1,514,844	100	%	$	1,286,383	100	%	$	3,164		2,804,391	100	%