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 nine-month periods ended September 30, 2021 and 2020 (in thousands):

	For the three months ended September 30, 2021
	Acute Care				Behavioral Health				Other		Total
Medicare	$	310,483	17	%	$	96,219	7	%			$	406,702	13	%
Managed Medicare		280,674	15	%		66,249	5	%				346,923	11	%
Medicaid		136,989	8	%		146,281	11	%				283,270	9	%
Managed Medicaid		176,497	10	%		326,789	25	%				503,286	16	%
Managed Care (HMO and PPOs)		674,396	37	%		349,275	26	%				1,023,671	32	%
UK Revenue		0	0	%		173,728	13	%				173,728	6	%
Other patient revenue and adjustments, net		69,935	4	%		117,442	9	%				187,377	6	%
Other non-patient revenue (a)		173,053	9	%		52,310	4	%		5,679		231,042	7	%
Total Net Revenue	$	1,822,027	100	%	$	1,328,293	100	%	$	5,679		3,155,999	100	%

	For the nine months ended September 30, 2021
	Acute Care				Behavioral Health				Other		Total
Medicare	$	954,207	18	%	$	277,438	7	%			$	1,231,645	13	%
Managed Medicare		830,627	16	%		185,323	5	%				1,015,950	11	%
Medicaid		418,335	8	%		526,945	13	%				945,280	10	%
Managed Medicaid		473,256	9	%		995,749	24	%				1,469,005	16	%
Managed Care (HMO and PPOs)		1,862,012	35	%		1,070,165	26	%				2,932,177	31	%
UK Revenue		0	0	%		510,614	13	%				510,614	5	%
Other patient revenue and adjustments, net		248,342	5	%		366,669	9	%				615,011	7	%
Other non-patient revenue (a)		484,221	9	%		142,224	3	%		20,739		647,184	7	%
Total Net Revenue	$	5,271,000	100	%	$	4,075,127	100	%	$	20,739	$	9,366,866	100	%


	For the three months ended September 30, 2020
	Acute Care				Behavioral Health				Other		Total
Medicare	$	319,259	20	%	$	120,691	9	%			$	439,950	15	%
Managed Medicare		234,169	15	%		62,618	5	%				296,787	10	%
Medicaid		160,671	10	%		159,756	12	%				320,427	11	%
Managed Medicaid		126,979	8	%		316,683	24	%				443,662	15	%
Managed Care (HMO and PPOs)		585,333	36	%		321,719	25	%				907,052	31	%
UK Revenue		0	0	%		155,323	12	%				155,323	5	%
Other patient revenue and adjustments, net		56,188	3	%		127,322	10	%				183,510	6	%
Other non-patient revenue (b)		127,404	8	%		35,479	3	%		2,947		165,830	6	%
Total Net Revenue	$	1,610,003	100	%	$	1,299,591	100	%	$	2,947	$	2,912,541	100	%


	For the nine months ended September 30, 2020
	Acute Care				Behavioral Health				Other		Total
Medicare	$	909,594	20	%	$	346,879	9	%			$	1,256,473	15	%
Managed Medicare		638,931	14	%		181,835	5	%				820,766	10	%
Medicaid		420,082	9	%		488,864	13	%				908,946	11	%
Managed Medicaid		358,770	8	%		900,105	23	%				1,258,875	15	%
Managed Care (HMO and PPOs)		1,558,765	34	%		955,530	25	%				2,514,295	30	%
UK Revenue		0	0	%		428,795	11	%				428,795	5	%
Other patient revenue and adjustments, net		198,983	4	%		371,517	10	%				570,500	7	%
Other non-patient revenue (b)		513,433	11	%		191,298	5	%		8,581		713,312	8	%
Total Net Revenue	$	4,598,558	100	%	$	3,864,823	100	%	$	8,581	$	8,471,962	100	%

(a) Acute Care includes CARES Act and other grant revenue of $2 million and $13 million recorded in the three and nine-months periods ended September 30, 2021, respectively. Behavioral Health includes CARES Act and other grant revenue of $114,000 and $2 million recorded in the three and nine-months periods ended September 30, 2021, respectively.

(b) Acute Care includes CARES Act and other grant income of $4 million and $161 million recorded in the three and nine-months periods ended September 30, 2020, respectively. Behavioral Health includes the reversal of CARES Act and other grant income of $9 million and CARES Act and other grant income of $52 million recorded in the three and nine-months periods ended September 30, 2020, respectively

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.