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NET OPERATING REVENUES
9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
NET OPERATING REVENUES NET OPERATING REVENUES
Net operating revenues for our Hospital Operations and Ambulatory Care segments primarily consist of net patient service revenues, principally for patients covered by Medicare, Medicaid, and managed care and other health plans, as well as certain uninsured patients under our Compact with Uninsured Patients and other uninsured discount and charity programs. Net operating revenues for our Hospital Operations segment also include revenues from providing revenue cycle management and value‑based care services to hospitals, health systems, physician practices, employers and other clients, as well as income recognized under grant programs.
The table below presents our sources of net operating revenues:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025202420252024
Hospital Operations:  
Net patient service revenues from hospitals and related outpatient facilities:
Medicare$512 $504 $1,590 $1,632 
Medicaid404 342 1,163 1,123 
Managed care2,374 2,425 7,197 7,464 
Uninsured15 10 50 40 
Indemnity and other157 148 395 439 
Total3,462 3,429 10,395 10,698 
Other revenues(1)
552 558 1,649 1,629 
Total Hospital Operations4,014 3,987 12,044 12,327 
Ambulatory Care1,275 1,139 3,739 3,275 
Net operating revenues$5,289 $5,126 $15,783 $15,602 
(1)Primarily revenue from physician practices and revenue cycle management.
Adjustments for prior‑year cost reports and related valuation allowances, principally related to Medicare and Medicaid, increased revenues in the nine months ended September 30, 2025 by $24 million, but did not result in a change in revenues during the nine months ended September 30, 2024. Estimated cost report settlements receivable, net of payables and valuation allowances, were included in accounts receivable in the accompanying Condensed Consolidated Balance Sheets (see Note 2). We believe that we have made adequate provision for any adjustments that may result from the final determination of amounts earned under all the above arrangements with Medicare and Medicaid.
The table below presents the composition of net operating revenues for our Ambulatory Care segment:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025202420252024
Net patient service revenues
$1,222 $1,098 $3,579 $3,152 
Other revenues(1)
53 41 160 123 
Net operating revenues$1,275 $1,139 $3,739 $3,275 
(1)Primarily revenue from management fees and other sources.
Performance Obligations
The following table presents revenue from revenue cycle management services that is expected to be recognized in the future related to performance obligations that are unsatisfied, or partially unsatisfied, at the end of the reporting period:
  Three
Months
 Ending
Years EndingLater Years
December 31,
 Total20252026202720282029
Performance obligations$5,128 $180 $720 $719 $718 $718 $2,073 
The amounts in the table primarily consist of revenue cycle management fixed fees, which are typically recognized ratably as the performance obligation is satisfied. The estimated revenue does not include volume‑ or contingency‑based contracts, variable‑based escalators, performance incentives, penalties or other variable consideration that is considered constrained. Our contract with Catholic Health Initiatives (“CHI”), now known as CommonSpirit Health and the minority interest holder in our Conifer Health Solutions, LLC joint venture, represents the majority of the fixed‑fee revenue related to remaining performance obligations. Our contract term with CHI is scheduled to end on December 31, 2032.