Segment and Geographic Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment and Geographic Information

NOTE 10 — SEGMENT AND GEOGRAPHIC INFORMATION

We operate in one line of business, which is operating hospitals and related health care entities. We operate in three geographically organized groups: the National, American and Atlantic Groups. At March 31, 2024, the National Group included 56 hospitals located in Alaska, California, Idaho, Indiana, Kentucky, Nevada, New Hampshire, North Carolina, Tennessee, Utah and Virginia, the American Group included 62 hospitals located in Colorado, central Kansas, Louisiana and Texas, and the Atlantic Group included 62 hospitals located in Florida, Georgia, northern Kansas, Missouri and South Carolina. We also operate eight hospitals in England, and these facilities are included in the Corporate and other group.

NOTE 10 — SEGMENT AND GEOGRAPHIC INFORMATION (continued)

Adjusted segment EBITDA is defined as income before depreciation and amortization, interest expense, gains and losses on sales of facilities, income taxes and net income attributable to noncontrolling interests. We use adjusted segment EBITDA as an analytical indicator for purposes of allocating resources to geographic areas and assessing their performance. Adjusted segment EBITDA is commonly used as an analytical indicator within the health care industry, and also serves as a measure of leverage capacity and debt service ability. Adjusted segment EBITDA should not be considered as a measure of financial performance under generally accepted accounting principles, and the items excluded from adjusted segment EBITDA are significant components in understanding and assessing financial performance. Because adjusted segment EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, adjusted segment EBITDA, as presented, may not be comparable to other similarly titled measures of other companies. The geographic distributions of our revenues, equity in earnings or losses of affiliates, adjusted segment EBITDA and depreciation and amortization for the quarters ended March 31, 2024 and 2023 are summarized in the following table (dollars in millions):

	2024			2023
Revenues:
National Group	$	4,795		$	4,616		(1)
Atlantic Group		5,677			5,109
American Group		5,914			5,199
Corporate and other		953			667
	$	17,339		$	15,591
Equity in (earnings) losses of affiliates:
National Group	$	(1	)	$	(1	)
Atlantic Group		(1	)		(1	)
American Group		(13	)		(12	)
Corporate and other		17			32
	$	2		$	18
Adjusted segment EBITDA:
National Group	$	1,068		$	1,149		(1)
Atlantic Group		1,289			1,086
American Group		1,320			1,133
Corporate and other		(324	)		(196	)
	$	3,353		$	3,172
Depreciation and amortization:
National Group	$	212		$	207
Atlantic Group		258			239
American Group		255			237
Corporate and other		70			73
	$	795		$	756
Adjusted segment EBITDA	$	3,353		$	3,172
Depreciation and amortization		795			756
Interest expense		512			479
Losses (gains) on sales of facilities		(201	)		15
Income before income taxes	$	2,247		$	1,922

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(1) Includes $145 million related to resolving certain disputed claims from prior years with a commercial payer.