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Here are 1-3 brief analogies to describe Universal Health Services (UHS):

• Universal Health Services is like the Marriott or Hilton of hospitals and behavioral health facilities, operating a large chain of service locations.
• Think of them as a healthcare version of a major restaurant chain like McDonald's, but instead of burger joints, they operate hospitals and mental health centers across many locations.

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• Acute Care Hospital Services: Provides comprehensive medical, surgical, and emergency care for severe illnesses and injuries.
• Behavioral Health Services: Offers inpatient and outpatient treatment for mental health and substance use disorders.
• Ambulatory Care Services: Delivers a range of outpatient medical services, including diagnostic and urgent care, that do not require overnight hospitalization.

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Universal Health Services (symbol: UHS) primarily sells its healthcare services to individuals (patients).

The company serves the following categories of customers:

1. Patients in Acute Care Hospitals: Individuals requiring inpatient and outpatient medical care, surgical services, emergency services, diagnostic procedures, and various therapeutic treatments for a wide range of medical conditions. This includes patients admitted for general medicine, surgery, critical care, obstetrics, and emergency room visits.
2. Patients in Behavioral Health Facilities: Individuals, including adults, adolescents, and children, seeking treatment for mental health disorders, substance abuse issues, eating disorders, and other behavioral conditions. These patients receive inpatient, residential, and outpatient services designed to address complex psychological and addiction challenges.

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• McKesson Corporation (MCK)
• Cardinal Health, Inc. (CAH)
• AmerisourceBergen Corporation (ABC)

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Marc D. Miller President and Chief Executive Officer

Mr. Miller was named CEO in January 2021 and has served as President since 2009. He began his career at Universal Health Services (UHS) in 1995, holding various positions of increasing responsibility at hospitals and the Corporate office, including serving in operating roles at several UHS Acute Care Hospitals. His previous roles include Group Director for Acute Care operations, Eastern Region Vice President of the Acute Care Division, Senior Vice President and Co-head of the UHS Acute Care Division, and President of the Acute Care Division. Mr. Miller is a member of the UHS Board of Directors, Executive Committee, and Finance Committee. He also serves on the Board of Directors of Universal Health Realty Income Trust and was selected to serve on the Board of Directors of the Federation of American Hospitals (FAH) in 2021, serving as Chair for 2025. He has been a member of the Board of Directors of Premier since 2015. Mr. Miller holds an MBA in Healthcare from The Wharton School of the University of Pennsylvania and a Bachelor of Arts in Political Science from the University of Vermont. He is the son of UHS founder Alan B. Miller. UHS has partnered with a private equity firm for technological changes and investments in the behavioral health space. Mr. Miller is also associated with investments in Hippocratic AI, backed by General Catalyst.

Steve G. Filton Executive Vice President and Chief Financial Officer

Mr. Filton was appointed Chief Financial Officer of UHS in July 2003 and became Executive Vice President in 2017. He joined UHS in 1985 as Director of Corporate Accounting. Prior to joining UHS, he worked for six years in the audit division of Arthur Andersen. His career at UHS has included promotions to Vice President and Controller in 1991 and Corporate Secretary in 1999. Mr. Filton holds a Bachelor of Science degree in accounting from the Wharton School of the University of Pennsylvania and is a Certified Public Accountant. There is no information indicating a pattern of managing companies backed by private equity firms.

Alan B. Miller Founder and Executive Chairman of the Board

Mr. Miller founded Universal Health Services in 1979 and currently serves as its Executive Chairman of the Board. He stepped down as CEO in January 2021, with his son Marc D. Miller succeeding him. Before founding UHS, Mr. Miller was Chairman and CEO of American Medicorp Inc., a hospital management company that was acquired by Humana in 1978. He also serves as Founder, Chairman of the Board, CEO, and President of Universal Health Realty Income Trust. Mr. Miller earned his MBA degree from the Wharton School of the University of Pennsylvania. There is no information indicating a pattern of managing companies backed by private equity firms.

Edward H. Sim Executive Vice President and President, Acute Care Division

Mr. Sim was appointed Executive Vice President and President, Acute Care Division, at UHS in December 2022, bringing nearly 30 years of healthcare and leadership experience. Most recently, he served as Chief Operating Officer at Centura Health from January 2017 to November 2022, where he was responsible for leading three operating groups, clinical delivery, and shared services with annual revenues of approximately $5 billion. His responsibilities at Centura Health included supporting improved care coordination, operational and clinical excellence, and alignment across its 19 facilities and over 250 clinics. Prior to Centura Health, Mr. Sim spent 11 years in senior leadership roles at Baptist Health in Jacksonville, Florida, where he was President of Physician Integration, President of a community hospital, and Vice President of Operations for a tertiary care facility. His earlier career also includes leadership positions at Tenet Healthcare and Advisory Board. Mr. Sim holds a BA in Economics from Boston University, an MS in Pathology and Laboratory Medicine from Albany Medical College, and an MBA from Duke University, The Fuqua School of Business.

Cheryl K. Ramagano Senior Vice President and Treasurer

Ms. Ramagano has served as Senior Vice President and Treasurer of UHS since 2016 and Vice President and Treasurer since 2003. Her tenure at UHS includes roles as Assistant Vice President and Assistant Treasurer since 1994, and Director of Finance since 1990. Additionally, she was elected Vice President and Treasurer of Universal Health Realty Income Trust in September 1992 and appointed Corporate Secretary in 2003, later promoted to Senior Vice President - Operations of the Trust in June 2022. There is no information indicating a pattern of managing companies backed by private equity firms.

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1. Reliance on Government Healthcare Programs and Regulatory Changes: UHS is significantly dependent on revenue generated from government healthcare programs, particularly Medicaid and Medicare. These programs are subject to annual approval and potential changes in healthcare policy, reimbursement rates, and regulations, including those related to the Affordable Care Act (ACA). The uncertainty surrounding the continuity of funding at current levels and the potential for decreased ACA subsidies pose substantial risks to the company's revenue streams and profitability. Goldman Sachs notably downgraded UHS due to rising policy uncertainty within the healthcare sector.
2. Labor Shortages and High Operational Costs: The healthcare industry, including UHS, continues to experience a nationwide shortage of nurses and other clinical and support staff. This shortage can lead to increased labor costs as the company competes for qualified personnel, directly impacting operational costs and overall profitability.
3. Intense Competition: UHS operates in a highly competitive environment. The company faces significant competition from other healthcare providers and new entrants to the market. This competition could lead to erosion of UHS's market share, particularly as competitors increasingly adopt new technologies and innovative care models.

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The rapid expansion and increasing consumer adoption of virtual and digital behavioral health platforms represent a clear emerging threat to Universal Health Services (UHS).

UHS operates a significant number of behavioral health facilities, including psychiatric hospitals and residential treatment centers. The proliferation of direct-to-consumer and payer-integrated virtual behavioral health providers (such as Teladoc's BetterHelp, Talkspace, Headspace Health, and numerous others) offers convenient, often lower-cost access to therapy, psychiatry, and other mental health services through teleconferencing, apps, and digital tools.

This trend directly threatens UHS's behavioral health segment by diverting patients, particularly those seeking outpatient or less acute care, who might traditionally have sought facility-based services. These digital alternatives remove geographical barriers and can reduce the stigma associated with visiting physical facilities, making them a preferred option for a growing segment of the population. This shift in consumer behavior and care delivery models can lead to decreased utilization rates, lower occupancy, and revenue pressure for traditional inpatient and outpatient behavioral health providers like UHS, mirroring the disruptive impact streaming services had on physical media rental businesses.

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Universal Health Services (UHS) operates primarily in two main market segments: Acute Care Hospital Services and Behavioral Health Services. The addressable market sizes for these services in the U.S. are as follows:

Acute Care Hospital Services

The U.S. acute hospital care market was valued at approximately USD 1,480.9 billion in 2021. It is projected to expand at a compound annual growth rate (CAGR) of 6.6% from 2022 to 2030, with an expected market size of USD 2,635.6 billion by 2030. Another report indicates the U.S. acute hospital care market size was estimated at USD 1.27 trillion in 2024 and is predicted to increase to approximately USD 2.43 trillion by 2034, expanding at a CAGR of 6.70% from 2025 to 2034.

Behavioral Health Services

The U.S. behavioral health market was valued at USD 92.2 billion in 2024. It is expected to reach USD 151.62 billion by 2034, growing at a CAGR of 5.1%. Another estimate places the U.S. behavioral health market size at USD 87.82 billion in 2024, with a projection to grow to USD 132.46 billion by 2032, exhibiting a CAGR of 5.3% during the forecast period.

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Universal Health Services (UHS) is anticipated to drive future revenue growth over the next 2-3 years through several key strategies and market dynamics:

1. Continued Growth in Acute Care Services: The acute care segment has demonstrated strong performance, with Universal Health Services reporting increased admissions and higher net revenues. The company projects a 5-6% increase in acute care revenue for 2025, indicating an expectation of sustained growth in this area through consistent volume improvement and effective revenue cycle management.
2. Expansion and Improvement in Behavioral Health Services: UHS is strategically expanding its outpatient and behavioral health services to align with broader industry trends and meet increasing demand. While volume growth in behavioral health has been modest, the company anticipates further improvements and is targeting a 2-3% increase in adjusted patient days. Efforts to launch new outpatient programs and increase revenue per adjusted patient day are expected to contribute to future revenue.
3. Strategic Facility Expansion and New Market Penetration: Universal Health Services is actively investing in new facility construction, expansions, and renovations. The opening of new hospitals, such as West Henderson Hospital in Las Vegas and Cedar Hill Medical Center in Washington, D.C., is expected to contribute positively to EBITDA in 2025 and generate future revenue as these facilities ramp up operations and become profitable.
4. Favorable Pricing and Revenue Per Service Increases: The company has consistently achieved solid pricing across both its acute care and behavioral health segments. Increases in net revenue per adjusted admission in acute care and per adjusted patient day in behavioral health have been significant drivers of revenue growth and are expected to continue.
5. Benefits from Medicaid Supplemental Programs: Universal Health Services has received substantial benefits from Medicaid supplemental programs, including a significant boost from the District of Columbia's program. The company expects to net approximately $1.3 billion from state supplemental payment programs in 2025, with further benefits anticipated from incremental programs in states like Florida and Nevada, providing a stable source of revenue augmentation.

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Share Repurchases

• In October 2025, Universal Health Services' Board of Directors authorized a $1.5 billion increase to its stock repurchase program, bringing the total available authorization to approximately $1.759 billion.
• During the third quarter of 2025, the company repurchased 1.315 million shares at an approximate aggregate cost of $234.3 million.
• Annual share buybacks amounted to $670.754 million in 2024 and $832.918 million in 2022.

Share Issuance

• In October 2025, a $4 million registered direct offering of common stock was announced.

Outbound Investments

• Universal Health Services is generally open to merger and acquisition (M&A) opportunities, particularly in acquiring underperforming not-for-profit acute care hospitals.
• The company's CFO indicated in October 2024 a shift in focus away from M&A towards capital expenditures and share repurchases, as many M&A opportunities have not been compelling.
• UHS is developing a 96-bed joint venture with Trinity Health Michigan, which is slated to open in spring 2025.

Capital Expenditures

• Universal Health Services' capital expenditures were $943.8 million in 2024 and $743 million in 2023.
• The company projects capital expenses between $850 million and $1 billion for 2025.
• A significant portion of capital spending is focused on new hospital projects, facility upgrades, and, in the long term, on developing 10 to 15 freestanding outpatient behavioral health facilities annually.