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Segment Information
 9 Months Ended
Sep. 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. As more specifically described in Note 14 - Subsequent Events, the Company’s CODM changed effective October 1, 2025, in connection with the appointment of Kevin J. Hammons as the Company’s Interim Chief Executive Officer on such date.

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 (loss), as presented in the consolidated statements of income (loss), to assess performance and allocate resources. Net income (loss) 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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Net operating revenues

 

$

3,087

 

 

$

3,090

 

 

$

9,379

 

 

$

9,369

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

 

1,356

 

 

 

1,359

 

 

 

4,056

 

 

 

4,054

 

Supplies

 

 

460

 

 

 

469

 

 

 

1,418

 

 

 

1,439

 

Contract labor

 

 

38

 

 

 

41

 

 

 

119

 

 

 

134

 

Medical specialist fees

 

 

165

 

 

 

167

 

 

 

479

 

 

 

470

 

Other segment items

 

 

696

 

 

 

875

 

 

 

2,194

 

 

 

2,357

 

Depreciation and amortization

 

 

108

 

 

 

117

 

 

 

317

 

 

 

357

 

Interest expense

 

 

217

 

 

 

217

 

 

 

651

 

 

 

645

 

Interest income

 

 

(1

)

 

 

(1

)

 

 

(2

)

 

 

(2

)

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

 

 

21

 

 

 

267

 

 

 

(242

)

 

 

294

 

Loss (gain) from early extinguishment of debt

 

 

33

 

 

 

—

 

 

 

(105

)

 

 

(25

)

Equity in earnings of unconsolidated affiliates

 

 

(4

)

 

 

(2

)

 

 

(9

)

 

 

(7

)

Benefit from income taxes

 

 

(173

)

 

 

(64

)

 

 

(13

)

 

 

(13

)

Net income (loss)

 

$

171

 

 

$

(355

)

 

$

516

 

 

$

(334

)

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.