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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information

12. SEGMENT INFORMATION

The Company is principally engaged in the provision of healthcare services, including a broad range of general and specialized hospital healthcare services and outpatient services. Services are delivered within hospitals that the Company owns or operates as well as related healthcare entities that exist to support and supplement services provided in their associated hospital, including, for example, physician practices, urgent care centers, freestanding emergency departments, occupational medicine clinics, imaging centers, cancer centers and ambulatory surgery centers.

The Company has a single reportable segment represented by hospital operations, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services. The Company defined its single reportable segment consistent with the manner in which internally reported financial information is regularly reviewed by the Company’s chief executive officer, who is the Company’s chief operating decision maker (“CODM”). Resources are allocated and financial performance is assessed on a consolidated basis.

The CODM does not review assets at a different level or category than the amounts disclosed in the condensed consolidated balance sheets.

The Company’s CODM uses net income, as presented in the consolidated statements of income (loss), to assess performance and allocate resources. Net income is used in the annual budgeting process as well as throughout the period when projecting or forecasting quarterly and full-year performance. The CODM considers budget-to-actual and actual versus prior period (prior month, prior year, etc.) variances on a periodic basis as a means of assessing performance. The following segment information, including significant segment expenses, is presented in millions:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net operating revenues

 

$

3,133

 

 

$

3,140

 

 

$

6,292

 

 

$

6,279

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

 

1,327

 

 

 

1,329

 

 

 

2,699

 

 

 

2,696

 

Supplies

 

 

469

 

 

 

483

 

 

 

958

 

 

 

969

 

Contract labor

 

 

40

 

 

 

45

 

 

 

80

 

 

 

93

 

Medical specialist fees

 

 

152

 

 

 

154

 

 

 

314

 

 

 

303

 

Other segment items

 

 

767

 

 

 

756

 

 

 

1,498

 

 

 

1,482

 

Depreciation and amortization

 

 

105

 

 

 

125

 

 

 

211

 

 

 

241

 

Interest expense

 

 

215

 

 

 

216

 

 

 

433

 

 

 

427

 

Interest income

 

 

(1

)

 

 

—

 

 

 

(1

)

 

 

(1

)

Impairment and (gain) loss on sale of businesses, net

 

 

(239

)

 

 

10

 

 

 

(263

)

 

 

27

 

Gain from early extinguishment of debt

 

 

(138

)

 

 

(26

)

 

 

(138

)

 

 

(26

)

Equity in earnings of unconsolidated affiliates

 

 

(2

)

 

 

(2

)

 

 

(4

)

 

 

(4

)

Provision for income taxes

 

 

118

 

 

 

24

 

 

 

160

 

 

 

52

 

Net income

 

$

320

 

 

$

26

 

 

$

345

 

 

$

20

 

Other segment items include various purchased services and other operating expenses including, for example, lease cost and rent expense, repairs and maintenance, utilities, professional liability claims expense and software maintenance fees.