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Marriott for hospitals and behavioral health centers.

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• Acute Care Hospital Services: Provides a broad spectrum of medical and surgical treatments within hospital settings.
• Behavioral Health Care Services: Offers mental health and substance abuse treatment through inpatient and outpatient facilities.
• Commercial Health Insurance Services: Sells health insurance plans to commercial customers.
• Management and Administrative Services: Provides centralized support functions such as purchasing, IT, finance, facility planning, and human resources for its healthcare operations.

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Universal Health Services (UHS) primarily serves individuals directly through its healthcare facilities and, in some cases, through its commercial health insurance services. As such, its major customers can be categorized as follows:

• Patients Requiring Acute Medical Care: This category includes individuals seeking a wide range of medical services offered by UHS's acute care hospitals, such as general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic and coronary care, and pediatric services.
• Patients Requiring Behavioral Health Services: This category encompasses individuals seeking mental health and substance abuse treatment services provided by UHS's extensive network of behavioral health care facilities.
• Individuals Enrolled in Commercial Health Insurance Plans: UHS also provides commercial health insurance services. Therefore, individuals who purchase or are covered by these health insurance plans are direct customers for that specific service offering.

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Marc D. Miller, President and Chief Executive Officer

Marc D. Miller was named CEO of Universal Health Services in January 2021, having served as President since 2009. He began his career at UHS in 1995, holding various positions of increasing responsibility at both hospitals and the corporate office. His prior operating roles included CEO/Managing Director of Central Montgomery Medical Center and Chief Operating Officer of Wellington Regional Medical Center. He also served as 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 holds an MBA in Healthcare from The Wharton School of the University of Pennsylvania.

Steve G. Filton, Executive Vice President and Chief Financial Officer

Steve G. Filton joined Universal Health Services in 1985 as Director of Corporate Accounting after six years in the audit division of Arthur Andersen. He assumed the role of Chief Financial Officer effective July 1, 2003, having previously served as UHS Vice President, Controller, and Secretary. Mr. Filton is a Certified Public Accountant and holds a Bachelor of Science degree in accounting from the Wharton School of the University of Pennsylvania.

Alan B. Miller, Founder and Executive Chairman of the Board

Alan B. Miller founded Universal Health Services, Inc. in 1979. Prior to establishing UHS, he served as Chairman and CEO of American Medicorp Inc., a pioneering hospital management company. He stepped down as CEO of UHS in January 2021, transitioning the role to Marc D. Miller, and continues to serve as Executive Chairman of the Board. Mr. Miller also founded Universal Health Realty Income Trust (UHT) in 1986, where he continues to serve as Chairman of the Board, President, and Chief Executive Officer.

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

Matthew D. Klein, Senior Vice President and General Counsel

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Universal Health Services (UHS) faces several key risks that could impact its business operations and financial performance. These risks primarily stem from the evolving healthcare landscape, operational challenges, and potential legal issues.

1. Policy Headwinds and Regulatory Shifts: UHS is significantly exposed to changes in government healthcare policies and reimbursement models. The expiration of enhanced subsidies for Affordable Care Act (ACA) plans is projected to result in a $75 million pretax headwind for the company, as it may lead to higher premiums and a potential loss of insurance coverage for millions of Americans. Furthermore, there is a broader industry shift towards value-based care and site-neutral payments, driven by the Centers for Medicare & Medicaid Services (CMS)'s 2026 Physician Fee Schedule Final Rule, which accelerates the transition to two-sided financial risk. UHS's reliance on Medicaid supplemental payments also poses a risk, with federal and state proposed changes potentially reducing these payments by $300-400 million annually, impacting profits. Policy uncertainty around government reimbursement is identified as a significant near-term structural risk.
2. Labor Shortages and Rising Costs: The healthcare industry, including UHS, is grappling with persistent labor shortages and escalating operational costs. These shortages have particularly affected UHS's behavioral health unit, leading to struggles in meeting patient day growth targets. The company anticipates a $35 million impact in its behavioral unit due to higher labor costs for recruiting and training staff, with ongoing annual costs projected at $30 million beyond 2026 due to new California staffing mandates. This trend of rising costs contributes to a shrinking adjusted operating margin and free cash flow margin, indicating challenges in passing these increased expenses on to customers.
3. Legal and Reputational Risks: Universal Health Services faces significant legal and reputational risks due to numerous lawsuits, particularly those alleging sexual abuse at its facilities. These allegations, especially concerning its psychiatric centers, have led to investigations into the potential failings of UHS's leadership for breaches of fiduciary duties. Such legal challenges and investigations amplify pressure on the company, potentially swaying public sentiment, impacting investor confidence, and casting a shadow over its leadership and ethical practices.

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Emergence of hospital-at-home models: These programs provide acute-level care to patients in their own homes, leveraging remote monitoring, telemedicine, and in-person visits from healthcare professionals. This directly challenges the traditional inpatient hospital model for certain conditions, potentially diverting admissions and reducing demand for acute care beds, a core service of Universal Health Services.

Proliferation of digital mental health platforms and virtual-first behavioral health providers: These platforms offer a wide range of services, including virtual therapy, psychiatry, and digital therapeutics, often through subscription models or direct employer partnerships. This could significantly impact demand for Universal Health Services' traditional brick-and-mortar outpatient and potentially even some inpatient behavioral health services by offering more accessible, convenient, and often lower-cost alternatives.

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Universal Health Services (UHS) operates primarily in two main segments: Acute Care Hospital Services and Behavioral Health Care Services. The addressable markets for these services are substantial in the regions where the company operates.

Acute Care Hospital Services

• In the U.S., the acute hospital care market was valued at approximately USD 1.35 trillion in 2025 and is projected to grow to about USD 2.43 trillion by 2034. Another estimate valued the market at USD 1,480.9 billion in 2021, with a projection to reach USD 2,635.6 billion by 2030.
• In the United Kingdom, the total private acute healthcare market was valued at £13.8 billion (approximately USD 17.5 billion) in 2024. Independent acute hospitals, a key part of this market, accounted for £7.2 billion of this value in 2024. The broader UK private healthcare market, which includes acute services, was valued at approximately USD 13.75 billion in 2024 and is projected to surpass USD 18.56 billion by 2033.

Behavioral Health Care Services

• In the U.S., the behavioral health market was valued at USD 94.82 billion in 2025 and is anticipated to reach around USD 174.78 billion by 2035. Other projections estimate the U.S. market at USD 87.82 billion in 2024, growing to USD 132.46 billion by 2032.
• Globally, the behavioral health market was valued at USD 184.94 billion in 2025 and is projected to reach approximately USD 349.88 billion by 2035. North America contributed the largest market share of 63.7% in 2025 to the global behavioral health market.

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1. Increased Patient Volumes and Demand: UHS anticipates continued strong demand and volume growth in both its Acute Care and Behavioral Health segments. For instance, same-facility volume growth is projected to be in the range of 2% to 3% for both segments for the full year 2026. Acute care hospitals have demonstrated consistent increases in adjusted admissions, such as a 4.5% year-over-year rise in Q1 2024. The behavioral health segment is also expected to see improved patient day growth, with investments in staffing capacity intended to support higher volumes.
2. Strategic Expansion of Facilities and Services: The company is actively expanding its physical footprint and service offerings. This includes opening new acute care hospitals, such as West Henderson Hospital in Las Vegas in late 2024 and Cedar Hill Medical Center in Washington D.C. in the coming months. UHS also plans for inpatient expansions in various states like Florida, California, and Nevada, alongside the opening of new behavioral health facilities and a state-of-the-art de novo hospital in Palm Beach Gardens, Florida. Furthermore, the company is growing its outpatient behavioral health network, with plans to open at least 10 new "1,000 branches Wellness brand" locations in 2026.
3. Pricing Gains and Enhanced Revenue per Patient: UHS expects to benefit from solid pricing across both its acute care and behavioral health segments. There have been consistent increases in net revenue per adjusted admission for acute care (e.g., 4.6% in Q1 2024) and net revenue per adjusted patient day for behavioral health (e.g., 8.2% in Q1 2024). A favorable payer mix, with a shift towards less Medicaid and more Commercial and Exchange volume, is also contributing to advantageous pricing in the acute care segment and is expected to continue.
4. Medicaid Supplemental Reimbursement Programs: Incremental income from state-specific Medicaid supplemental reimbursement programs is a recurring driver. Examples include approximately $18 million from the Mississippi Hospital Access Program in Q4 2023 and around $38 million from a newly implemented program in Nevada in Q1 2024. The company recorded an aggregate of approximately $50 million in similar reimbursements during Q4 2024.
5. Expansion into Virtual Services and Integrated Care Models: The strategic acquisition of Talkspace is a pivotal move that positions UHS to expand into a comprehensive, hybrid care model leveraging virtual services. This acquisition is expected to address behavioral health staffing bottlenecks and diversify the company's payer mix, contributing to long-term growth.

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Share Repurchases

• Universal Health Services has consistently engaged in significant share repurchases, with $599 million in shares repurchased during 2024.
• In the first quarter of 2025, the company acquired 1 million shares for approximately $181 million, and in the second quarter of 2025, repurchased 875,000 shares for approximately $150.8 million.
• Since 2019, UHS has repurchased approximately 31% of its outstanding shares, contributing to a steady decline in shares outstanding over the last several years, including a 5.06% decline in 2025 from 2024.

Outbound Investments

• In March 2026, Universal Health Services announced a definitive agreement to acquire virtual behavioral health provider Talkspace for approximately $835 million in an all-cash transaction.
• This acquisition is strategically aimed at integrating Talkspace's nationwide digital behavioral health platform with UHS's extensive network to address staffing bottlenecks and expand into a hybrid care model.

Capital Expenditures

• Universal Health Services consistently invests significantly in capital expenditures, with $944 million spent in 2024 and $743 million in 2023.
• Projected capital expenditures are between $850 million and $1 billion for 2025, and $950 million to $1.1 billion for 2026.
• The primary focus of these expenditures includes expanding capacity and improving efficiency through new facilities (e.g., West Henderson Hospital in late 2024, a new acute care hospital in Washington D.C. in April 2025), adding behavioral health beds, and investing in advanced technology, including AI tools.