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, 2022 and 2021 (in thousands):

	For the three months ended June 30, 2022
	Acute Care				Behavioral Health				Other		Total
Medicare	$	318,166	17	%	$	83,350	6	%			$	401,516	12	%
Managed Medicare		306,585	16	%		70,877	5	%				377,462	11	%
Medicaid		184,098	10	%		183,911	13	%				368,009	11	%
Managed Medicaid		162,092	9	%		364,171	25	%				526,263	16	%
Managed Care (HMO and PPOs)		627,475	33	%		376,011	26	%				1,003,486	30	%
UK Revenue		0	0	%		173,231	12	%				173,231	5	%
Other patient revenue and adjustments, net		74,123	4	%		125,995	9	%				200,118	6	%
Other non-patient revenue		202,977	11	%		56,374	4	%		13,971		273,322	8	%
Total Net Revenue	$	1,875,516	100	%	$	1,433,920	100	%	$	13,971		3,323,407	100	%

	For the six months ended June 30, 2022
	Acute Care				Behavioral Health				Other		Total
Medicare	$	655,275	17	%	$	162,862	6	%			$	818,137	12	%
Managed Medicare		638,833	17	%		134,727	5	%				773,560	12	%
Medicaid		339,934	9	%		359,314	13	%				699,248	11	%
Managed Medicaid		333,729	9	%		698,336	25	%				1,032,065	16	%
Managed Care (HMO and PPOs)		1,266,370	33	%		741,216	26	%				2,007,586	30	%
UK Revenue		0	0	%		349,323	12	%				349,323	5	%
Other patient revenue and adjustments, net		166,233	4	%		246,728	9	%				412,961	6	%
Other non-patient revenue		387,458	10	%		107,881	4	%		28,144		523,483	8	%
Total Net Revenue	$	3,787,832	100	%	$	2,800,387	100	%	$	28,144	$	6,616,363	100	%


	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		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		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	%