Lease Accounting

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Lease Accounting

(13) Lease Accounting

Our operating leases are primarily for real estate, including certain acute care facilities, off-campus outpatient facilities, medical office buildings, and corporate and other administrative offices.  Our real estate lease agreements typically have initial terms of five to ten years.  These real estate leases may include one or more options to renew, with renewals that can extend the lease term from five to ten years. The exercise of lease renewal options is at our sole discretion. When determining the lease term, we included options to extend or terminate the lease when it is reasonably certain that we will exercise that option.

Five of our hospital facilities are held under operating leases with Universal Health Realty Income Trust with two hospital terms expiring in 2026, two expiring in 2033 and one expiring in 2040 (see Note 2 for additional disclosure). We are also the lessee of the real property of certain facilities from unrelated third parties.

Supplemental cash flow information related to leases for the six-month periods ended June 30, 2022 and 2021 are as follows (in thousands):

	Six months ended June 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	61,964	$	59,818
Operating cash flows from finance leases	$	2,000	$	2,352
Financing cash flows from finance leases	$	1,798	$	1,589
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	27,930	$	12,322
Finance leases	$	1,066	$	7,690