Steve G. Filton
Executive Vice President And Chief Financial Officer at Universal Health Services
Yes. So I think my previous comments, clearly, called out the fact that because half of our revenue comes from government sources, and we know that they are simply not at the moment keeping up with inflation, although I think we believe that we'll continue to get incremental increases from those government sources over the next couple of years that, that was probably the bigger challenge. I think on the commercial side of things, we continue to see higher rates and more acknowledgment from our commercial payers that we need greater reimbursement to operate in this sort of inflationary environment. On the behavioral side, that overall pricing has been strong. It was strong in the quarter. We've talked in previous calls about our relatively aggressive stance that we've been taking with a number of payers in part because that's a business in which we've been capacity constrained.
So it makes sense to us or for us to go to our lowest paying payers and either require them to come up to market levels of reimbursement or terminate those contracts because we're going to turn patients away. It makes sense to terminate those that are sort of the most inadequate, if you will, payers. On the acute side, and again, there's an idea of sort of how many of our contracts have been renewed, etc., I think, is a little bit outdated in the sense that virtually all of our managed care contracts have short-term outs. The most of them have 90 or 120 days out.
So we're renegotiating contracts in both our acute and behavioral spaces, where we think there's an opportunity where we think that a payer may be under market where we think that we might have an appropriate amount of leverage to press for greater rates, etc.. So yes, we will definitely get more relief on the pricing side, clearly on our commercial side of the business, and we're aggressively seeking that. And again, I was sort of describing the shortfall, clearly, as being more on the government side.