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. 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, 2021 and 2020 (in thousands):

	For the three months ended June 30, 2021
	Acute Care				Behavioral Health				Other		Total
Medicare	$	308,211	18	%	$	92,727	6	%			$	400,938	13	%
Managed Medicare		274,393	16	%		61,532	4	%				335,925	11	%
Medicaid		169,705	10	%		227,524	16	%				397,229	12	%
Managed Medicaid		161,261	9	%		334,202	23	%				495,463	15	%
Managed Care (HMO and PPOs)		588,806	34	%		372,146	26	%				960,952	30	%
UK Revenue		0	0	%		172,220	12	%				172,220	5	%
Other patient revenue and adjustments, net		84,157	5	%		128,944	9	%				213,101	7	%
Other non-patient revenue (a)		167,898	10	%		42,202	3	%		11,952		222,052	7	%
Total Net Revenue	$	1,754,431	100	%	$	1,431,497	100	%	$	11,952		3,197,880	100	%

	For the six months ended June 30, 2021
	Acute Care				Behavioral Health				Other		Total
Medicare	$	643,724	19	%	$	181,219	7	%			$	824,943	13	%
Managed Medicare		549,953	16	%		119,074	4	%				669,027	11	%
Medicaid		281,346	8	%		380,664	14	%				662,010	11	%
Managed Medicaid		296,759	9	%		668,960	24	%				965,719	16	%
Managed Care (HMO and PPOs)		1,187,616	34	%		720,890	26	%				1,908,506	31	%
UK Revenue		0	0	%		336,886	12	%				336,886	5	%
Other patient revenue and adjustments, net		178,407	5	%		249,227	9	%				427,634	7	%
Other non-patient revenue (a)		311,168	9	%		89,914	3	%		15,060		416,142	7	%
Total Net Revenue	$	3,448,973	100	%	$	2,746,834	100	%	$	15,060	$	6,210,867	100	%


	For the three months ended June 30, 2020
	Acute Care				Behavioral Health				Other		Total
Medicare	$	264,310	18	%	$	106,571	8	%			$	370,881	14	%
Managed Medicare		182,771	12	%		59,979	5	%				242,750	9	%
Medicaid		131,452	9	%		154,090	12	%				285,542	10	%
Managed Medicaid		108,336	7	%		280,865	22	%				389,201	14	%
Managed Care (HMO and PPOs)		432,695	29	%		293,124	23	%				725,819	27	%
UK Revenue		0	0	%		136,622	11	%				136,622	5	%
Other patient revenue and adjustments, net		78,196	5	%		121,135	10	%				199,331	7	%
Other non-patient revenue (b)		269,746	18	%		106,737	8	%		3,125		379,608	14	%
Total Net Revenue	$	1,467,506	100	%	$	1,259,123	100	%	$	3,125	$	2,729,754	100	%


	For the six months ended June 30, 2020
	Acute Care				Behavioral Health				Other		Total
Medicare	$	590,335	20	%	$	226,188	9	%			$	816,523	15	%
Managed Medicare		404,762	14	%		119,217	5	%				523,979	9	%
Medicaid		259,411	9	%		329,108	13	%				588,519	11	%
Managed Medicaid		231,791	8	%		583,422	23	%				815,213	15	%
Managed Care (HMO and PPOs)		973,432	33	%		633,811	25	%				1,607,243	29	%
UK Revenue		0	0	%		273,472	11	%				273,472	5	%
Other patient revenue and adjustments, net		142,795	5	%		244,195	10	%				386,990	7	%
Other non-patient revenue (b)		386,029	13	%		155,819	6	%		5,634		547,482	10	%
Total Net Revenue	$	2,988,555	100	%	$	2,565,232	100	%	$	5,634	$	5,559,421	100	%

(a) Acute Care includes CARES Act and other grant revenue of $2 million and $11 million recorded in the three and six-months periods ended June 31, 2021, respectively. Behavioral Health includes CARES Act and other grant revenue of $173,000 and $2 million recorded in the three and six-months periods ended June 30, 2021, respectively.

(b) Includes $157 million in Acute Care and $61 million in Behavioral Health of CARES Act and other grant revenue in each of the three and six-months periods ended June 30, 2020.

As an accounting policy election, we have utilized ASC 958 by analogy to recognize funds received under the CARES Act from the Provider Relief Fund as revenue, given no direct authoritative guidance available to for-profit organizations to recognize revenue for government contributions and grants. CARES Act revenues may be subject to future adjustments based on future changes to statutes.