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Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended
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Sep. 30, 2025
Accounting Policies [Abstract] |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal and recurring nature. The majority of our expenses are “costs of revenues” items. Costs that could be classified as general and administrative would include our corporate office costs, which were $139 million and $111 million for the quarters ended September 30, 2025 and 2024, respectively, and $395 million and $301 million for the nine months ended September 30, 2025 and 2024, respectively. Operating results for the quarter and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. For further information, refer to the consolidated financial statements and footnotes thereto included in our annual report on Form 10-K for the year ended December 31, 2024.
Revenues | Revenues Our revenues generally relate to contracts with patients in which our performance obligations are to provide health care services to the patients. Revenues are recorded during the period our obligations to provide health care services are satisfied. Our performance obligations for inpatient services are generally satisfied over periods that average approximately five days, and revenues are recognized based on charges incurred in relation to total expected charges. Our performance obligations for outpatient services are generally satisfied over a period of less than one day. The contractual relationships with patients, in most cases, also involve a third-party payer (Medicare, Medicaid, managed care health plans and commercial insurance companies, including plans offered through the health insurance exchanges), and the transaction prices for the services provided are dependent upon the terms provided by (Medicare and Medicaid) or negotiated with (managed care health plans and commercial insurance companies) the third-party payers. The payment arrangements with third-party payers for the services we provide to the related patients typically specify payments at amounts less than our standard charges. Medicare generally pays for inpatient and outpatient services at prospectively determined rates based on clinical, diagnostic and other factors. Services provided to patients having Medicaid coverage are generally paid at prospectively determined rates per discharge, per identified service or per covered member. Agreements with commercial insurance carriers, managed care and preferred provider organizations generally provide for payments based upon predetermined rates per diagnosis, per diem rates or discounted fee-for-service rates. Management continually reviews the contractual estimation process to consider and incorporate updates to laws and regulations and the frequent changes in managed care contractual terms resulting from contract renegotiations and renewals. Our revenues are based upon the estimated amounts we expect to be entitled to receive from patients and third-party payers. Estimates of contractual adjustments under managed care and commercial insurance plans are based upon the payment terms specified in the related contractual agreements. Revenues related to uninsured patients and uninsured copayment and deductible amounts for patients who have health care coverage may have discounts applied (uninsured and other discounts). We also record estimated implicit price concessions (based primarily on historical collection experience) related to uninsured accounts to record these revenues at the estimated amounts we expect to collect. Patients treated at our hospitals for non-elective care, who have income at or below 400% of the federal poverty level, are eligible for charity care. Because we do not pursue collection of amounts determined to qualify as charity care, they are not reported in revenues. Our revenues by primary third-party payer classification and other (including uninsured patients) for the quarters and nine months ended September 30, 2025 and 2024 are summarized in the following table (dollars in millions):
|  | Quarter |
|  | 2025 |  |  | Ratio |  |  | 2024 |  |  | Ratio |
Medicare |  | $ | 2,728 |  |  |  | 14.2 | % |  | $ | 2,584 |  |  |  | 14.8 | %
Managed Medicare |  |  | 3,306 |  |  |  | 17.3 |  |  |  | 2,949 |  |  |  | 16.9 |
Medicaid |  |  | 1,783 |  |  |  | 9.3 |  |  |  | 1,127 |  |  |  | 6.4 |
Managed Medicaid |  |  | 949 |  |  |  | 4.9 |  |  |  | 1,031 |  |  |  | 5.9 |
Managed care and insurers |  |  | 9,267 |  |  |  | 48.4 |  |  |  | 8,497 |  |  |  | 48.6 |
International (managed care and insurers) |  |  | 484 |  |  |  | 2.5 |  |  |  | 424 |  |  |  | 2.4 |
Other |  |  | 644 |  |  |  | 3.4 |  |  |  | 875 |  |  |  | 5.0 |
Revenues |  | $ | 19,161 |  |  |  | 100.0 | % |  | $ | 17,487 |  |  |  | 100.0 | %
|  | Nine Months |
|  | 2025 |  |  | Ratio |  |  | 2024 |  |  | Ratio |
Medicare |  | $ | 8,426 |  |  |  | 15.0 | % |  | $ | 8,043 |  |  |  | 15.4 | %
Managed Medicare |  |  | 9,957 |  |  |  | 17.8 |  |  |  | 8,888 |  |  |  | 17.0 |
Medicaid |  |  | 4,413 |  |  |  | 7.9 |  |  |  | 3,316 |  |  |  | 6.3 |
Managed Medicaid |  |  | 2,727 |  |  |  | 4.9 |  |  |  | 3,042 |  |  |  | 5.8 |
Managed care and insurers |  |  | 27,432 |  |  |  | 48.8 |  |  |  | 25,591 |  |  |  | 49.0 |
International (managed care and insurers) |  |  | 1,390 |  |  |  | 2.5 |  |  |  | 1,252 |  |  |  | 2.4 |
Other |  |  | 1,742 |  |  |  | 3.1 |  |  |  | 2,186 |  |  |  | 4.1 |
Revenues |  | $ | 56,087 |  |  |  | 100.0 | % |  | $ | 52,318 |  |  |  | 100.0 | %
To quantify the total impact of the trends related to uninsured patient accounts, we believe it is beneficial to view total uncompensated care, which is comprised of charity care, uninsured discounts and implicit price concessions. A summary of the estimated cost of total uncompensated care for the quarters and nine months ended September 30, 2025 and 2024 follows (dollars in millions):
|  | Quarter |  |  | Nine Months |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Patient care costs (salaries and benefits, supplies, other operating expense and depreciation and amortization) |  | $ | 16,196 |  |  | $ | 15,077 |  |  | $ | 47,300 |  |  | $ | 44,617 |
Cost-to-charges ratio (patient care costs as percentage of gross patient charges) |  |  | 10.0 | % |  |  | 10.3 | % |  |  | 9.7 | % |  |  | 10.2 | %
Total uncompensated care |  | $ | 12,015 |  |  | $ | 10,958 |  |  | $ | 34,633 |  |  | $ | 31,571 |
Multiply by the cost-to-charges ratio |  |  | 10.0 | % |  |  | 10.3 | % |  |  | 9.7 | % |  |  | 10.2 | %
Estimated cost of total uncompensated care |  | $ | 1,188 |  |  | $ | 1,138 |  |  | $ | 3,359 |  |  | $ | 3,220 |
Revenues (continued) The total uncompensated care amounts include charity care of $4.131 billion and $4.001 billion, respectively, and the related estimated costs of charity care were $408 million and $416 million, respectively, for the quarters ended September 30, 2025 and 2024. The total uncompensated care amounts include charity care of $11.887 billion and $12.091 billion, respectively, and the related estimated costs of charity care were $1.153 billion and $1.233 billion, respectively, for the nine months ended September 30, 2025 and 2024.
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation.
Earnings Per Share | We compute basic earnings per share using the weighted average number of common shares outstanding. We compute diluted earnings per share using the weighted average number of common shares outstanding, plus the dilutive effect of outstanding equity awards, computed using the treasury stock method.
Fair Value Measurements and Disclosures | Accounting Standards Codification 820, Fair Value Measurements and Disclosures (“ASC 820”), emphasizes fair value is a market-based measurement, and fair value measurements should be determined based on the assumptions market participants would use in pricing assets or liabilities. ASC 820 utilizes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity.
Investment Securities | The investments of our insurance subsidiaries are generally classified within Level 1 or Level 2 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency.

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