Financial Data and Key Metrics Changes - The company reported adjusted net income attributable to UHS of $5.69 per share, a 53% increase from Q3 2024 [5][12] - Revenue growth for Q3 2025 was 13.4% year over year [5] - The midpoint of 2025 adjusted EPS guidance was increased by 6% to $21.80 per diluted share from $20.50 [7] Business Line Data and Key Metrics Changes - In the acute care segment, same facility adjusted admissions increased by 2.0% year over year, with net revenues increasing by 12.8% [13][14] - Behavioral health segment same-facility net revenues increased by 9.3% on a reported basis, driven by a 7.9% increase in revenue per adjusted patient day [15][16] Market Data and Key Metrics Changes - The company recognized approximately $90 million of net benefit from the District of Columbia Supplemental Medicaid Program during Q3 2025, with $73 million recognized in acute care results [12][13] - The percentage of total adjusted admissions from exchange patients was in the 6 to 6.5% range, with an increase noted [24] Company Strategy and Development Direction - The company is focusing on expanding its outpatient services, operating 45 outpatient access points and planning to open 10 step-in programs this year [9][10] - The next de novo acute care hospital opening is scheduled for spring 2026 in Palm Beach Gardens, Florida, with significant community interest [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for Cedar Hill Regional Medical Center, expecting it to break even in Q4 2025 and improve in 2026 [7][40] - The company anticipates further volume improvements in the behavioral health segment, targeting 2% to 3% growth in adjusted patient days [16][61] Other Important Information - The company spent $734 million on capital expenditures in the first nine months of 2025, with a significant portion related to new hospital projects [17] - The board authorized a new $1.5 billion increase to the stock repurchase program, bringing the total authorization to $1.759 billion [17] Q&A Session Summary Question: Update on pending Medicaid approvals in Florida and Nevada - Management indicated that Florida's pending plan could result in about a $47 million annual benefit, while Nevada's could add approximately $30 million, pending CMS approval [23] Question: 2025 guidance breakdown - The guidance increase was attributed to $140 million of increased DPP, with $90 million recorded in Q3 and $25 million expected in Q4, offset by malpractice and legal settlement costs [29][30] Question: Behavioral health business and state budget impacts - Management noted that while managed care players are aggressive in utilization management, they have not seen significant changes in payer behavior, and state budget cuts have not materially affected their operations [33][34] Question: Performance of West Henderson Hospital - West Henderson Hospital has been performing well, contributing positively to EBITDA since opening, though it has slightly impacted same-store adjusted admissions [38] Question: Trends in outpatient surgical initiatives - Outpatient surgical trends improved slightly over the prior year, with case mix up slightly, indicating a return to more normal levels [44][46] Question: Future margin trends - Management expressed confidence in achieving sustainable margins, with expectations for continued growth in both acute and behavioral segments [100]

Financial Data and Key Metrics Changes - The company reported adjusted net income attributable to UHS of $5.69 per share, a 53% increase from Q3 2024 [5][12] - Revenue growth for Q3 2025 was 13.4% year-over-year [5] - The midpoint of 2025 adjusted EPS guidance was increased by 6% to $21.80 per diluted share from $20.50 [7] Business Line Data and Key Metrics Changes - In the acute care segment, same facility adjusted admissions increased by 2.0% year-over-year, with net revenues increasing by 12.8% [13][15] - Behavioral health segment same-facility net revenues increased by 9.3% on a reported basis, driven by a 7.9% increase in revenue per adjusted patient day [16] - Operating expenses per adjusted admission in acute care increased by 4.0% year-over-year, while same-facility EBITDA margin increased by 190 basis points to 15.8% [15] Market Data and Key Metrics Changes - The company recognized approximately $90 million of net benefit from the District of Columbia Supplemental Medicaid Program during Q3 2025 [12][19] - The projected full-year net benefit from various approved Medicaid programs for 2025 is $1.3 billion [19] Company Strategy and Development Direction - The company is focusing on expanding its outpatient services, with 45 outpatient access points and plans to open 10 step-in programs this year [9][10] - The next acute care hospital opening is scheduled for spring 2026 in Palm Beach Gardens, Florida, with significant community interest [8] - The company aims to prioritize excess free cash flow for share buybacks and dividends in the absence of compelling acquisition opportunities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for the Cedar Hill facility due to community support and demand for services [7][8] - The company expects further volume improvements in the behavioral health segment, targeting 2%-3% growth in adjusted patient days [17][64] - Management noted that while labor tightness persists, hiring trends have improved steadily throughout the year [17][52] Other Important Information - The company has repurchased approximately 36% of its outstanding shares since 2019 and paid approximately $340 million in dividends [18] - The Board of Directors authorized a new $1.5 billion increase to the stock repurchase program, bringing total authorization to $1.759 billion [18] Q&A Session Summary Question: Update on pending Medicaid approvals in Florida and Nevada - Management estimates a potential $47 million annual benefit from Florida and approximately $30 million from Nevada, pending CMS approval [24] Question: 2025 guidance increase breakdown - The guidance increase is primarily due to $140 million of increased DPP, with $90 million recorded in Q3 and $25 million expected in Q4, offset by malpractice reserve increases and legal settlements [31] Question: Performance of West Henderson and Cedar Hill - West Henderson has been performing well with positive EBITDA since opening, while Cedar Hill is expected to break even in Q4 and improve in 2026 [40][41] Question: Trends in surgical volumes - Outpatient surgical trends increased slightly, with cardiology services performing particularly well [45][94] Question: Behavioral health supply-demand dynamics - Management noted labor scarcity in some markets but believes that increased focus on outpatient services will help capture more demand [52][76] Question: Capital allocation and leverage ratios - The company intends to continue share repurchases and is comfortable with current leverage ratios, prioritizing investments with compelling returns [100][66]

Core Insights - Universal Health Services (UHS) reported a revenue of $4.5 billion for the quarter ended September 2025, reflecting a year-over-year increase of 13.4% [1] - Earnings per share (EPS) for the quarter was $5.69, significantly higher than the $3.71 reported in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.31 billion by 4.23%, while the EPS surpassed the consensus estimate of $4.66 by 22.1% [1] Financial Performance Metrics - Behavioral health admissions totaled 120,655, slightly below the two-analyst average estimate of 125,542 [4] - Net revenues from behavioral health services were reported at $1.86 billion, compared to the average estimate of $1.88 billion, marking an 8.5% increase year over year [4] - Acute care hospital services generated net revenues of $2.63 billion, exceeding the average estimate of $2.43 billion, representing a 17.1% year-over-year change [4] - Operating income from behavioral health care services was $347.26 million, below the three-analyst average estimate of $356.37 million [4] - Operating income from acute care hospital services reached $300.01 million, significantly higher than the estimated $223.16 million [4] Stock Performance - Shares of Universal Health Services have returned +4.9% over the past month, outperforming the Zacks S&P 500 composite's +2.5% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - The company has increased its estimate of the potential impact from the expiration of enhanced subsidies from $50 million to a range of $50 million to $100 million, primarily affecting the acute care division [4][5] - The company reported a $25 million EBITDA loss in Q2 due to delays in obtaining deemed status for the Cedar Hill hospital, with an additional estimated loss of $25 million for the second half of the year [21][23] Business Line Data and Key Metrics Changes - The acute care division is expected to see same-store revenue growth in the range of 5% to 7%, with surgical volumes being somewhat soft compared to previous years [17][18] - The behavioral health segment is experiencing labor shortages, impacting the ability to meet demand, but improvements in recruitment and retention are anticipated [45][48] Market Data and Key Metrics Changes - Approximately 6% of adjusted acute admissions are exchange patients, which is lower than competitors like Tenet and HCA, indicating geographical differences in patient demographics [8] - The company expects to capture more market share in behavioral care as it addresses labor shortages and improves recruitment [51] Company Strategy and Development Direction - The company is prepared to implement cost efficiencies and modify its cost structure in response to potential revenue reductions from the loss of exchange volumes and Medicaid supplemental payments [10][12] - The company is exploring M&A opportunities, particularly in the acute care sector, if financially distressed not-for-profit hospitals become available [57][58] Management's Comments on Operating Environment and Future Outlook - Management described 2024 and 2025 as the first clean post-COVID years, expecting a return to normative growth models [17] - The company is optimistic about the sustainability of its growth rates, particularly in the acute care division, despite some softness in surgical volumes [18][19] Other Important Information - The company is leveraging technology, including AI, to improve operational efficiency and reduce costs in areas such as revenue cycle management and patient follow-up [38][40] - The company anticipates that Medicaid supplemental payment programs pending approval could add $150 million to $200 million annually if approved [14][15] Q&A Session Summary Question: What is the impact of potential subsidy expiration? - Management noted that there is speculation about an extension of subsidies, but they have increased their estimate of the impact on revenue due to potential loss of coverage [4][5] Question: How is the company addressing cost efficiencies? - Management indicated that they have a menu of options to adjust the cost structure and are prepared to react to regulatory changes [10][12] Question: What is the outlook for surgical volumes? - Management expects surgical volumes to improve incrementally as the year progresses, although they have not seen dramatic changes in Q3 [19] Question: What is the status of Cedar Hill hospital? - Cedar Hill is awaiting deemed status approval, which is expected soon, and management anticipates improved financial performance following this approval [22][23] Question: How is the labor market affecting operations? - Management reported that labor pressures have stabilized, with wage inflation returning to more normative levels [26][28] Question: What is the outlook for commercial rates? - Management expects contractual price increases from payers to be in the 4% to 5% range moving forward [33][34] Question: What is the company's approach to M&A? - Management is open to M&A opportunities, particularly in the acute care sector, if financially distressed hospitals become available [57][58]

Summary of Universal Health Services (UHS) FY Conference Call - June 09, 2025 Company Overview - **Company**: Universal Health Services (UHS) - **Industry**: Healthcare, specifically acute care and behavioral health services Key Points Industry and Market Dynamics - 2024 is viewed as a transition year post-COVID, with 2025 expected to be the first full post-COVID year [2] - Acute care metrics are returning to pre-COVID levels, with mid-single-digit revenue growth projected at around 6% [3] - Adjusted admission growth is expected to be between 2.5% to 3.5%, with pricing growth contributing similarly [3] - The industry is experiencing a catch-up in procedures that were postponed during the pandemic, leading to softer procedural volumes compared to previous years [4] Financial Performance - Revenue growth is described as sustainable, with well-controlled expenses leading to increasing EBITDA and margins [7] - Wage inflation has decelerated, and the use of temporary labor has significantly reduced, contributing to better expense management [6] - The company aims to return acute care margins to pre-pandemic levels within the next 18 to 24 months [32] Operational Insights - Length of stay for patients remains above pre-COVID levels, with opportunities to reduce it further, primarily hindered by challenges in discharging patients to subacute settings [10][12] - The company is actively working on partnerships with subacute providers to improve patient discharge processes [17] Growth and Expansion - UHS is in a period of expansion, adding approximately 300 beds in 2025 and another 300 in 2026, which is expected to contribute to future admissions growth [18][19] - New hospitals typically take 18 to 24 months to ramp up to divisional average performance, with some exceptions in high-demand areas like Las Vegas [20][21] Pricing and Revenue Outlook - Contractual pricing is stable, with annual increases in the 4% to 5% range, although payer behavior regarding denials and nonpayment remains a concern [27][28] - The company anticipates a return to pre-COVID margins of 16% to 16.5% in the acute care segment within the next 18 to 24 months [30] Behavioral Health Segment - The behavioral health business is expected to achieve a volume growth trajectory of 2% to 3%, supported by increasing demand for mental health services [33] - Labor shortages have impacted the ability to meet patient needs, but improvements are anticipated as staffing levels stabilize [34] - The company is expanding its outpatient services to capture a larger share of the growing demand in behavioral health [39] Future Considerations - The company is cautious about the sustainability of high pricing levels in the behavioral health market, anticipating a potential moderation as volumes increase [48] - EBITDA margins in the behavioral segment are currently at the upper end of historical ranges, with room for further expansion if revenue growth continues [52] Regulatory Environment - Ongoing discussions regarding the DPP (Direct Payment Program) and its implications for reimbursement rates are being monitored closely [56][57] Financial Projections - The company estimates a potential impact of $95 million from changes in ACA subsidies, reflecting the uncertainty in the regulatory landscape [59] This summary encapsulates the key insights and projections discussed during the UHS FY Conference Call, highlighting the company's strategic focus on recovery, growth, and operational efficiency in the post-COVID landscape.

Financial Data and Key Metrics Changes - LifeMD achieved total revenues of $65.7 million, a 49% increase year over year [12] - Core telehealth revenue grew by 70% compared to the prior year, with adjusted EBITDA of $5.3 million, a significant improvement from a loss of $1.3 million in the same period last year [12][15] - GAAP net income attributable to common stockholders was $608,000, compared to a net loss of $7.5 million in the first quarter of 2024 [14] - Adjusted EBITDA totaled $8.7 million for the first quarter, compared to $100,000 in the year-ago period [15] - Gross margin for the first quarter was 86.8%, a decline of 270 basis points year over year but an increase of 150 basis points sequentially [12][13] Business Line Data and Key Metrics Changes - The telehealth business saw a 22% increase in active subscribers, reaching over 290,000 [12] - WorkSimply active subscribers declined by 5% to 158,000, but the business continued to perform well financially with quarterly adjusted EBITDA exceeding $3 million [12] - The RExMD brand showed consistent growth in revenue and active patient count, reinforcing its position in men's health [5] Market Data and Key Metrics Changes - LifeMD expanded coverage to over 21 million Medicare Part B beneficiaries across 26 states, with plans to reach 49 states and over 60 million beneficiaries by the end of Q2 [9] - The company is entering high-growth verticals such as women's health and behavioral health, with new offerings expected to launch soon [10][11] Company Strategy and Development Direction - LifeMD aims to build a trusted vertically integrated marketplace for healthcare services, prescription medications, and over-the-counter health products [17] - The company is expanding its offerings beyond sexual health into weight management, behavioral health, insomnia, and hormone replacement therapy [6][10] - Strategic collaborations with Lilly Direct and NovoCare are intended to improve access to GLP-1 medications for weight management patients [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory for the remainder of the year, citing strong early traction across key initiatives [17] - The company is focused on delivering high-quality virtual care and enhancing patient experience through technology and a mission-driven team [18] - Management highlighted the importance of insurance in their offerings, believing it will drive retention and expand the total addressable market [28] Other Important Information - LifeMD's cash position at the end of the first quarter was $34.4 million [16] - The company raised its financial guidance for 2025 due to the outperformance of its telehealth business [16] Q&A Session Summary Question: Can you talk about your relationships with Lilly and Novo? - Management clarified that the pricing for medications is the same for patients regardless of the source, and there are no discounts or rebates from drug manufacturers [23][24] Question: Can you discuss the role of insurance in your offerings? - Management emphasized the importance of insurance in making care more accessible and driving retention, while also acknowledging the complexity of integrating cash pay and insurance offerings [28] Question: What were the main drivers of earnings upside compared to expectations? - The main driver was higher-than-expected retention revenue, with a small contribution from increased acquisitions in the weight management space [31][32] Question: Can you provide an update on your compounding pharmacy? - The compounding pharmacy is on track for licensing, with expectations to scale the mail order pharmacy significantly [33] Question: Does your 2025 guidance include contributions from mental health and women's health? - Yes, but the contributions are expected to be minimal initially, with growth anticipated as the offerings are fully integrated [38] Question: How much of the positive guidance revision is related to the recent pharmacy announcement? - The guidance revision is primarily based on Q1 performance, with potential long-term benefits from the partnerships not yet incorporated into guidance [44][45] Question: How will patients choose between Wegovy and Zepbound? - Patient choice will not affect LifeMD's revenue, as both therapies are offered based on clinical recommendations [50] Question: Will LifeMD continue to offer compounded GLP-1 in the coming years? - LifeMD does not compound GLP-1 medications but will assist patients in accessing branded therapies [56]