Segment Information
We report the results of our operations as three segments in our consolidated financial statements: (i) the hospital division, (ii) the population health management division and (iii) the real estate division.
The Company’s chief operating decision maker (“CODM”) is our Chief Executive Officer. The determination of our reporting segments was made based on our strategic priorities, which corresponds to the manner in which our CODM reviews and evaluates operating performance to make decisions about resources to be allocated. For our operating segments, the CODM uses segment operating income and segment income before tax to allocate resources (including financial and capital resources) in the annual and forecasting processes. On a monthly basis, the CODM considers month-to-month and budget-to-actual variances on a monthly basis for both measures when allocating resources to segments.
Other hospital division expenses include expenses such as facility-specific utilities, marketing and advertising, repairs and maintenance, and other tax expenses. Corporate costs primarily include expenses for support functions and salaries and benefits for corporate employees and are excluded from segment operating results.
Reportable segment information, including intercompany transactions, is presented below (in thousands):
| | | | | | | | | | | | | | | | | |
| Year ended December 31, |
| 2025 | | 2024 | | 2023 |
| Revenue from external customers: | | | | | |
| Hospital division | $ | 844,162 | | | $ | 449,064 | | | $ | 218,070 | |
| Population health management division | 31,095 | | | 30,885 | | | 29,576 | |
| Total revenue | $ | 875,257 | | | $ | 479,949 | | | $ | 247,646 | |
| | | | | |
| Revenue from inter-segment activities (expense): | | | | | |
| Real estate division | $ | 2,490 | | | $ | 2,420 | | | $ | (800) | |
| | | | | |
| Segment expenses: | | | | | |
| Hospital division | | | | | |
| Payroll | $ | 156,770 | | | $ | 114,158 | | | $ | 103,781 | |
| Contract services | 162,723 | | | 77,789 | | | 19,455 | |
| Medical supplies | 17,241 | | | 15,285 | | | 14,151 | |
| Other hospital division expenses | 44,108 | | | 29,512 | | | 28,407 | |
| Hospital division expenses | 380,842 | | | 236,744 | | | 165,794 | |
| Population health management division expenses | 28,875 | | | 27,971 | | | 29,487 | |
| Total segment expenses | $ | 409,717 | | | $ | 264,715 | | | $ | 195,281 | |
| | | | | |
| Depreciation and amortization: | | | | | |
| Hospital division | $ | 18,734 | | | $ | 16,781 | | | $ | 15,941 | |
| Population health management division | 1,360 | | | 1,533 | | | 1,648 | |
| Real estate division | 436 | | | 658 | | | 3 | |
| Total depreciation and amortization | $ | 20,530 | | | $ | 18,972 | | | $ | 17,592 | |
| | | | | |
| Segment operating income (loss): | | | | | |
| Hospital division | $ | 444,027 | | | $ | 195,539 | | | $ | 36,336 | |
| Population health management division | 690 | | | 1,381 | | | (1,559) | |
| Real estate division | (436) | | | (658) | | | (3) | |
| Total segment operating income | $ | 444,281 | | | $ | 196,262 | | | $ | 34,774 | |
| | | | | |
| Consolidated operating income (loss) | | | | | |
| Total segment operating income | $ | 444,281 | | | $ | 196,262 | | | $ | 34,774 | |
| Corporate and other costs | (168,656) | | | (65,564) | | | (66,548) | |
| Consolidated operating income (loss) | $ | 275,625 | | | $ | 130,698 | | | $ | (31,774) | |
| | | | | |
| Segment other income (loss): | | | | | |
| Hospital division | | | | | |
| Interest expense, net | $ | 23,077 | | | $ | 18,284 | | | $ | 14,042 | |
| Other expense (income) | 8,700 | | | (333) | | | 142 | |
| Hospital division income before income taxes | $ | 412,250 | | | $ | 177,588 | | | $ | 22,152 | |
| Population health management division income (loss) before income taxes | 708 | | | 1,613 | | | (1,656) | |
| Real estate division loss before income taxes | (436) | | | (658) | | | (3) | |
| Non-segment loss before income taxes | (167,741) | | | (68,717) | | | (68,984) | |
| Income (loss) before income taxes | $ | 244,781 | | | $ | 109,826 | | | $ | (48,491) | |
| | | | | |
| Capital expenditures: | | | | | |
| Hospital division | $ | 2,647 | | | $ | 2,304 | | | $ | 9,497 | |
| | | | | |
| Total capital expenditures | $ | 2,647 | | | $ | 2,304 | | | $ | 9,497 | |
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| Assets: | | | |
| Hospital division | $ | 851,344 | | | $ | 607,590 | |
| Population health management division | 29,505 | | | 28,338 | |
| Real estate division | 37,676 | | | 19,392 | |
| Total Assets | $ | 918,525 | | | $ | 655,320 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.