The company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Or estimate for amounts not expected to be collected based on historical experience will continue to be recognized as a reduction to net revenue. However, subsequent changes in estimate of collectability due to a change in the financial status of a payer, for example a bankruptcy, will be recognized as bad debt expense in operating charges.

The performance obligation is separately identifiable from other promises in the customer contract. As the performance obligations are met (i.e.: room, board, ancillary services, level of care), revenue is recognized based upon allocated transaction price. The transaction

price is allocated to separate performance obligations based upon the relative standalone selling price. In instances where we determine there are multiple performance obligations across multiple months, the transaction price will be allocated by applying an estimated implicit and explicit rate to gross charges based on the separate performance obligations.

In assessing collectability, we have elected the portfolio approach. This portfolio approach is being used as we have large volume of similar contracts with similar classes of customers. We reasonably expect that the effect of applying a portfolio approach to a group of contracts would not differ materially from considering each contract separately. Management’s judgment to group the contracts by portfolio is based on the payment behavior expected in each portfolio category. As a result, aggregating all of the contracts (which are at the patient level) by the particular payer or group of payers, will result in the recognition of the same amount of revenue as applying the analysis at the individual patient level.

We group our revenues into categories based on payment behaviors. Each component has its own reimbursement structure which allows us to disaggregate the revenue into categories that share the nature and timing of payments. The other patient revenue consists primarily of self-pay, government-funded non-Medicaid, and other.

The following table disaggregates our revenue by major source for the three and six month periods ended June 30, 2020 and 2019 (in thousands):

	For the three months ended June 30, 2020
	Acute Care				Behavioral Health				Other		Total
Medicare	$	264,310	18	%	$	106,571	8	%			$	370,881	14	%
Managed Medicare		182,771	12	%		59,979	5	%				242,750	9	%
Medicaid		131,452	9	%		154,090	12	%				285,542	10	%
Managed Medicaid		108,336	7	%		280,865	22	%				389,201	14	%
Managed Care (HMO and PPOs)		432,695	29	%		293,124	23	%				725,819	27	%
UK Revenue		0	0	%		136,622	11	%				136,622	5	%
Other patient revenue and adjustments, net		78,196	5	%		121,135	10	%				199,331	7	%
Other non-patient revenue (a)		269,746	18	%		106,737	8	%		3,125		379,608	14	%
Total Net Revenue	$	1,467,506	100	%	$	1,259,123	100	%	$	3,125		2,729,754	100	%

	For the six months ended June 30, 2020
	Acute Care				Behavioral Health				Other		Total
Medicare	$	590,335	20	%	$	226,188	9	%			$	816,523	15	%
Managed Medicare		404,762	14	%		119,217	5	%				523,979	9	%
Medicaid		259,411	9	%		329,108	13	%				588,519	11	%
Managed Medicaid		231,791	8	%		583,422	23	%				815,213	15	%
Managed Care (HMO and PPOs)		973,432	33	%		633,811	25	%				1,607,243	29	%
UK Revenue		0	0	%		273,472	11	%				273,472	5	%
Other patient revenue and adjustments, net		142,795	5	%		244,195	10	%				386,990	7	%
Other non-patient revenue (a)		386,029	13	%		155,819	6	%		5,634		547,482	10	%
Total Net Revenue	$	2,988,555	100	%	$	2,565,232	100	%	$	5,634		5,559,421	100	%


	For the three months ended June 30, 2019
	Acute Care				Behavioral Health				Other		Total
Medicare	$	319,060	21	%	$	139,248	11	%			$	458,308	16	%
Managed Medicare		211,660	14	%		54,152	4	%				265,812	9	%
Medicaid		138,682	9	%		183,563	14	%				322,245	11	%
Managed Medicaid		145,970	10	%		275,252	21	%				421,222	15	%
Managed Care (HMO and PPOs)		566,165	37	%		346,717	26	%				912,882	32	%
UK Revenue		0	0	%		143,800	11	%				143,800	5	%
Other patient revenue and adjustments, net		36,161	2	%		126,903	10	%				163,064	6	%
Other non-patient revenue		114,011	7	%		50,606	4	%		3,218		167,835	6	%
Total Net Revenue	$	1,531,709	100	%	$	1,320,241	100	%	$	3,218		2,855,168	100	%


	For the six months ended June 30, 2019
	Acute Care				Behavioral Health				Other		Total
Medicare	$	654,969	21	%	$	276,704	11	%			$	931,673	16	%
Managed Medicare		420,763	14	%		106,411	4	%				527,174	9	%
Medicaid		243,192	8	%		356,479	14	%				599,671	11	%
Managed Medicaid		279,701	9	%		542,525	21	%				822,226	15	%
Managed Care (HMO and PPOs)		1,136,548	37	%		694,599	27	%				1,831,147	32	%
UK Revenue		0	0	%		280,502	11	%				280,502	5	%
Other patient revenue and adjustments, net		88,044	3	%		250,381	10	%				338,425	6	%
Other non-patient revenue		223,336	7	%		99,023	4	%		6,382		328,741	6	%
Total Net Revenue	$	3,046,553	100	%	$	2,606,624	100	%	$	6,382		5,659,559	100	%

(a) Includes $157 million in Acute Care and $61 million in Behavioral Health of governmental stimulus program revenues in each of the three and six-months periods ended June 30, 2020.