XML 45 R29.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Concentration of Net Operating Revenues by Payor

Our Net operating revenues disaggregated by payor source are as follows (in millions):


	Year Ended December 31,
	2022		2021		2020
Medicare	$	2,843.1	$	2,589.6	$	2,375.6
Medicare Advantage	654.6		609.6		544.9
Managed care	505.2		484.5		371.4
Medicaid	183.3		163.1		140.1
Other third-party payors	39.5		46.0		43.0
Workers’ compensation	24.7		23.1		21.5
Patients	16.6		19.3		19.2
Other income	81.6		79.7		50.6
Total	$	4,348.6	$	4,014.9	$	3,566.3

Schedule of Concentration of Net Operating Revenues and Net Patient Service Accounts Receivable by Payor and Payor Class

The concentration of patient service accounts receivable by payor class, as a percentage of total patient service accounts receivable, is as follows:


	As of December 31,
	2022		2021
Medicare	57.9	%	57.8	%
Managed care and other discount plans, including Medicare Advantage	31.1	%	31.4	%
Medicaid	4.4	%	4.1	%
Other third-party payors	3.4	%	3.3	%
Workers' compensation	2.2	%	1.9	%
Patients	1.0	%	1.5	%
Total	100.0	%	100.0	%

Schedule of Useful Lives of Property and Equipment

Useful lives are generally as follows:


			Years
Buildings			10 to 30
Leasehold improvements			2 to 15
Vehicles			5
Furniture, fixtures, and equipment			3 to 10

Property and equipment consists of the following (in millions):


	As of December 31,
	2022		2021
Land	$	286.1	$	259.8
Buildings	3,019.8		2,632.8
Leasehold improvements	281.5		251.1
Vehicles	4.5		3.8
Furniture, fixtures, and equipment	647.2		571.0
	4,239.1		3,718.5
Less: Accumulated depreciation and amortization	(1,659.4)		(1,490.5)
	2,579.7		2,228.0
Construction in progress	359.5		353.2
Property and equipment, net	$	2,939.2	$	2,581.2

Schedule of Estimated Useful Lives and Amortization Basis of Other Finite-lived Intangible Assets

The range of estimated useful lives and the amortization basis for our intangible assets, excluding goodwill, are generally as follows:

Estimated Useful Life
and Amortization Basis

Certificates of need

10 to 30 years using straight-line basis

Licenses

10 to 20 years using straight-line basis

Noncompete agreements

1 to 18 years using straight-line basis

Trade names:

Encompass

indefinite-lived asset

All other

10 to 20 years using straight-line basis

Internal-use software

3 to 7 years using straight-line basis

Market access assets

20 years using accelerated basis

The following table provides information regarding our other intangible assets (in millions):


	Gross Carrying Amount		Accumulated Amortization		Net
Certificates of need:
2022	$	120.4	$	(41.5)	$	78.9
2021	115.3		(36.0)		79.3
Licenses:
2022	$	65.7	$	(54.3)	$	11.4
2021	65.7		(53.2)		12.5
Noncompete agreements:
2022	$	66.2	$	(60.2)	$	6.0
2021	65.3		(58.4)		6.9
Trade name - Encompass:
2022	$	135.2	$	—	$	135.2
2021	—		—		—
Trade names - all other:
2022	$	37.5	$	(20.8)	$	16.7
2021	37.5		(19.5)		18.0
Internal-use software:
2022	$	183.2	$	(150.3)	$	32.9
2021	182.8		(142.6)		40.2
Market access assets:
2022	$	13.2	$	(12.0)	$	1.2
2021	13.2		(11.7)		1.5
Total intangible assets:
2022	$	621.4	$	(339.1)	$	282.3
2021	479.8		(321.4)		158.4

Schedule of Estimated Basis of Other Indefinite-lived Intangible Assets

The range of estimated useful lives and the amortization basis for our intangible assets, excluding goodwill, are generally as follows:

Estimated Useful Life
and Amortization Basis

Certificates of need

10 to 30 years using straight-line basis

Licenses

10 to 20 years using straight-line basis

Noncompete agreements

1 to 18 years using straight-line basis

Trade names:

Encompass

indefinite-lived asset

All other

10 to 20 years using straight-line basis

Internal-use software

3 to 7 years using straight-line basis

Market access assets

20 years using accelerated basis