12) SEGMENT REPORTING

We operate in two reportable segments: Acute Care Hospital Services and Behavioral Health Care Services. Our chief operating decision making (“CODM”) group is comprised of our President and Chief Executive Officer and each of our respective division Presidents for our Acute Care Hospital Services and Behavioral Health Care Services. The operating segments are managed separately because each operating segment represents a business unit that offers different types of healthcare services or operates in different healthcare environments. The primary profitability measurement utilized by the President and Chief Executive Officer as well as the Presidents of each operating segment is segment income before income taxes. Segment income before income taxes is

utilized by the CODM group during the annual budgeting process and during their reviews of our monthly operating results to monitor each segment’s operating results as compared to prior periods, and the respective operating budgets.

The expenses included in our non-segment operating expenses below include centralized services including, but not limited to, information technology, purchasing, reimbursement, accounting and finance, taxation, legal, advertising and design and construction. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies included in Note 1-Business and Summary of Significant Accounting Policies. We do not present asset information for our segments as this information is not used to allocate resources.

Note: prior year amounts related to certain facilities previously included in our Behavioral Health Care Services’ results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year presentation.

 

2025

 

Acute Care
Hospital
Services

 

 

Behavioral
Health Care
Services (c)

 

 

Total

 

 

 

(amounts in thousands)

 

Net revenue from reportable segments

 

$

9,925,907

 

 

$

7,425,500

 

 

$

17,351,407

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Revenue

 

 

 

 

 

 

 

 

 

Non-segment revenue

 

 

 

 

 

 

 

 

13,422

 

Total Net Revenue

 

 

 

 

 

 

 

$

17,364,829

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

$

3,797,810

 

 

$

3,893,474

 

 

 

 

Other segment item operating expenses (a)

 

 

4,707,603

 

 

 

1,848,084

 

 

 

 

Depreciation and amortization expense

 

 

388,804

 

 

 

220,464

 

 

 

 

Interest (income) expense, net

 

 

6,285

 

 

 

4,110

 

 

 

 

Other (income) expense, net

 

 

(21,533

)

 

 

(1,135

)

 

 

 

Reportable segment income before income taxes

 

$

1,046,938

 

 

$

1,460,503

 

 

$

2,507,441

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of non-segment revenue/expenses to consolidated income before income taxes

 

 

 

 

 

 

 

 

 

Non-segment revenue

 

 

 

 

 

 

 

 

13,422

 

Non-segment operating expenses (b)

 

 

 

 

 

 

 

 

514,575

 

Non-segment interest expense, net

 

 

 

 

 

 

 

 

145,673

 

Non-segment other (income) expense, net

 

 

 

 

 

 

 

 

(111,526

)

Income before income taxes

 

 

 

 

 

 

 

$

1,972,141

 

 

 

 

2024

 

Acute Care
Hospital
Services

 

 

Behavioral
Health Care
Services (c)

 

 

Total

 

 

 

(amounts in thousands)

 

Net revenue from reportable segments

 

$

8,944,288

 

 

$

6,873,090

 

 

$

15,817,378

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Revenue

 

 

 

 

 

 

 

 

 

Non-segment revenue

 

 

 

 

 

 

 

 

10,557

 

Total Net Revenue

 

 

 

 

 

 

 

$

15,827,935

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

$

3,523,526

 

 

$

3,590,956

 

 

 

 

Other segment item operating expenses (a)

 

 

4,206,890

 

 

 

1,720,364

 

 

 

 

Depreciation and amortization expense

 

 

368,717

 

 

 

205,741

 

 

 

 

Interest (income) expense, net

 

 

6,339

 

 

 

4,027

 

 

 

 

Other (income) expense, net

 

 

(1,305

)

 

 

(3,547

)

 

 

 

Reportable segment income before income taxes

 

$

840,121

 

 

$

1,355,549

 

 

$

2,195,670

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of non-segment revenue/expenses to consolidated income before income taxes

 

 

 

 

 

 

 

 

 

Non-segment revenue

 

 

 

 

 

 

 

 

10,557

 

Non-segment operating expenses (b)

 

 

 

 

 

 

 

 

529,927

 

Non-segment interest expense, net

 

 

 

 

 

 

 

 

175,743

 

Non-segment other (income) expense, net

 

 

 

 

 

 

 

 

2,621

 

Income before income taxes

 

 

 

 

 

 

 

$

1,497,936

 

 

 

 

2023

 

Acute Care
Hospital
Services

 

 

Behavioral
Health Care
Services (c)

 

 

Total

 

 

 

(amounts in thousands)

 

Net revenue from reportable segments

 

$

8,081,402

 

 

$

6,190,921

 

 

$

14,272,323

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Revenue

 

 

 

 

 

 

 

 

 

Non-segment revenue

 

 

 

 

 

 

 

 

9,653

 

Total Net Revenue

 

 

 

 

 

 

 

$

14,281,976

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

$

3,406,060

 

 

$

3,353,008

 

 

 

 

Other segment item operating expenses (a)

 

 

3,762,066

 

 

 

1,564,649

 

 

 

 

Depreciation and amortization expense

 

 

367,644

 

 

 

189,297

 

 

 

 

Interest (income) expense, net

 

 

(2,501

)

 

 

4,558

 

 

 

 

Other (income) expense, net

 

 

7,788

 

 

 

(4,271

)

 

 

 

Reportable segment income before income taxes

 

$

540,345

 

 

$

1,083,680

 

 

$

1,624,025

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of non-segment revenue/expenses to consolidated income before income taxes

 

 

 

 

 

 

 

 

 

Non-segment revenue

 

 

 

 

 

 

 

 

9,653

 

Non-segment operating expenses (b)

 

 

 

 

 

 

 

 

463,871

 

Non-segment interest expense, net

 

 

 

 

 

 

 

 

204,617

 

Non-segment other (income) expense, net

 

 

 

 

 

 

 

 

24,764

 

Income before income taxes

 

 

 

 

 

 

 

$

940,426

 

 

 

(a)
Other segment operating expenses for each period includes other operating expenses, supplies expense and lease and rental expense.
(b)
Non-segment operating expenses for each period includes salaries, wages and benefits, other operating expenses, supplies expense and lease and rental expense.
(c)
Includes net revenues generated from our behavioral health care facilities located in the U.K. amounting to approximately $1.001 billion in 2025, $880 million in 2024 and $761 million in 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 27, 2024
2022Feb 27, 2023

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.