Leases

6 Months Ended

Jun. 30, 2025

9. LEASES

The Company utilizes operating and finance leases for the use of certain hospitals, medical office buildings, and medical equipment. The components of lease cost and rent expense for the three and six months ended June 30, 2025 and 2024 are as follows (in millions):


	Three Months Ended June 30,						Six Months Ended June 30,
Lease Cost	2025			2024			2025			2024
Operating lease cost:
Operating lease cost	$	41		$	46		$	84		$	94
Short-term rent expense		23			22			43			45
Variable lease cost		11			6			17			14
Sublease income		(1	)		(1	)		(2	)		(2	)
Total operating lease cost	$	74		$	73		$	142		$	151
Finance lease cost:
Amortization of right-of-use assets	$	3		$	3		$	5		$	5
Interest on finance lease liabilities		3			3			6			7
Total finance lease cost	$	6		$	6		$	11		$	12

Supplemental balance sheet information related to leases is as follows (in millions):


	Balance Sheet Classification	June 30, 2025			December 31, 2024
Operating Leases:
Operating lease right-of-use assets	Other assets, net	$	599		$	623

Finance Leases:
Finance lease right-of-use assets	Property and equipment
	Land and improvements	$	—		$	—
	Buildings and improvements		235			235
	Equipment and fixtures		7			9
	Property and equipment		242			244
	Less: Accumulated depreciation and amortization		(66	)		(63	)
	Property and equipment, net	$	176		$	181

Current finance lease liabilities	Current maturities of long-term debt	$	2		$	2
Long-term finance lease liabilities	Long-term debt		200			193

Supplemental cash flow information related to leases for the six months ended June 30, 2025 and 2024 is as follows (in millions):


	Six Months Ended June 30,
Cash flow information	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (1)	$	82	$	91
Operating cash flows from finance leases		6		7
Financing cash flows from finance leases		2		2
Right-of-use assets obtained in exchange for new finance lease liabilities		—		3
Right-of-use assets obtained in exchange for new operating lease liabilities		52		32

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(1)

Included in the change in other operating assets and liabilities in the condensed consolidated statements of cash flows.