Universal Health Services cuts 2026 forecast on Medicaid reimbursement uncertainty
UHS•Quarterly results top estimates
Universal Health's quarterly same-facility adjusted admissions rose 2.9% in its acute care hospitals during the second quarter, while admissions in behavioral health facilities rose 0.5%.
The company reported an adjusted profit of $5.98 per share for the second quarter, just ahead of analysts' average estimate of $5.96, according to data compiled by LSEG.
Quarterly net revenue rose 8.3% to $4.64 billion, while analysts estimated $4.58 billion.
ACA subsidy uncertainty adds pressure
This comes against the backdrop of uncertainty surrounding the enhanced Affordable Care Act subsidies, as their expiration has left more patients uninsured and raised concerns about higher uncompensated-care costs for U.S. hospitals.
The King of Prussia, Pennsylvania-based company expects full-year adjusted earnings of $22.28 to $23.65 per share, down from its previous forecast of $22.64 to $24.52.
Larger peer HCA Healthcare also cut its annual profit forecast earlier this month, citing a rise in uninsured patients, largely due to a number of those who dropped coverage under ACA or "Obamacare" plans.
Forecast cut after Medicaid reimbursement changes
Hospital operator Universal Health Services lowered its full-year profit forecast on Monday, citing changes in reimbursements related to certain Medicaid supplemental payment programs, sending its shares down nearly 8% in extended trading.
Medicaid supplemental payment programs provide hospitals with reimbursements above standard Medicaid payment rates and help fund care for low-income patients.
