Universal Health Services Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Universal Health Services Inc. (UHS) has filed its 2023 10-K annual report detailing financial performance and operational aspects.</b>

AI Summary

UNIVERSAL HEALTH SERVICES INC (UHS) filed a Annual Report (10-K) with the SEC on February 27, 2024. Universal Health Services Inc. (UHS) filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the company's financial performance and operational details for the year. Key financial data and risk factors are detailed within the report. The report includes information on various insurance policies and debt instruments. UHS operates in the general medical and surgical hospitals sector.

Why It Matters

For investors and stakeholders tracking UNIVERSAL HEALTH SERVICES INC, this filing contains several important signals. This 10-K filing provides investors and stakeholders with a comprehensive overview of UHS's financial health, operational strategies, and potential risks for the fiscal year 2023. Understanding the details within this report is crucial for assessing the company's current standing and future outlook in the healthcare services industry.

Risk Assessment

Risk Level: medium — UNIVERSAL HEALTH SERVICES INC shows moderate risk based on this filing. The company faces medium risk due to its extensive operations in the healthcare sector, which is subject to regulatory changes, labor costs, and insurance liabilities as detailed in its 10-K filing.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to assess UHS's performance and identify potential investment opportunities or concerns.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-27 — Filing Date (Date of submission)
• 001-10765 — SEC File Number (Company's SEC file number)
• 232077891 — IRS Number (Company's IRS number)

Key Players & Entities

• UNIVERSAL HEALTH SERVICES INC (company) — Filer name
• UHS (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-27 (date) — Filing date
• King of Prussia, PA (location) — Business address
• 8062 (industry_code) — Standard Industrial Classification

FAQ

Risk Factors

• Regulatory Compliance [high — regulatory]: The company must comply with numerous federal, state, and local laws and regulations governing healthcare providers, including Medicare and Medicaid participation requirements.
• Debt Obligations [medium — financial]: UHS has significant debt obligations, including senior secured notes and credit facilities, which require substantial interest payments and principal repayments.
• Labor Costs and Staffing [medium — operational]: The company is subject to rising labor costs and challenges in attracting and retaining qualified healthcare professionals, impacting operational efficiency and profitability.
• Insurance Liabilities [medium — financial]: UHS faces potential liabilities related to general and professional liability insurance policies, with significant reserves maintained for claims.

Industry Context

Universal Health Services Inc. operates within the healthcare services industry, specifically focusing on hospitals and healthcare facilities.

Regulatory Implications

The healthcare industry is heavily regulated, with UHS needing to adhere to various federal and state laws, including those related to Medicare and Medicaid reimbursement and patient care standards.

What Investors Should Do

1. Analyze the company's revenue streams and profitability by segment.
2. Evaluate the company's debt structure and its ability to service its obligations.
3. Assess the impact of regulatory changes and labor market dynamics on future operations.

Year-Over-Year Comparison

This filing represents the annual 10-K report for the fiscal year ending December 31, 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $0.01 — hich registered Class B Common Stock, $0.01 par value UHS New York Stock Exchan
• $761 million — generated net revenues of approximately $761 million in 2023 and $685 million in 2022. Total
• $685 million — approximately $761 million in 2023 and $685 million in 2022. Total assets at our U.K. behav
• $1.327 billion — alth care facilities were approximately $1.327 billion as of December 31, 2023 and $1.235 bill
• $1.235 billion — 327 billion as of December 31, 2023 and $1.235 billion as of December 31, 2022. Services pro
• $29,899 — Stark Law include civil penalties up to $29,899 for each violation, and up to $199,338
• $199,338 — o $29,899 for each violation, and up to $199,338 for sham arrangements. There are a numb
• $100,000 — be punished by a criminal fine of up to $100,000 for each violation or impris

Filing Documents

• uhs-20231231.htm (10-K) — 5949KB
• uhs-ex10_1.htm (EX-10.1) — 12KB
• uhs-ex21.htm (EX-21) — 526KB
• uhs-ex22_1.htm (EX-22.1) — 919KB
• uhs-ex23_1.htm (EX-23.1) — 6KB
• uhs-ex31_1.htm (EX-31.1) — 10KB
• uhs-ex31_2.htm (EX-31.2) — 10KB
• uhs-ex32_1.htm (EX-32.1) — 7KB
• uhs-ex32_2.htm (EX-32.2) — 7KB
• uhs-ex97.htm (EX-97) — 59KB
• img192703659_0.jpg (GRAPHIC) — 148KB
• 0000950170-24-021175.txt (&nbsp;) — 24181KB
• uhs-20231231.xsd (EX-101.SCH) — 2696KB
• uhs-20231231_htm.xml (XML) — 4662KB

Business

Business 1 Item 1A

Risk Factors

Risk Factors 14 Item 1B Unresolved Staff Comments 27 Item 1C Cybersecurity 27 Item 2

Properties

Properties 28 Item 3

Legal Proceedings

Legal Proceedings 37 Item 4 Mine Safety Disclosure 37 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 38 Item 6 [RESERVED] 39 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 75 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 76 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 76 Item 9A

Controls and Procedures

Controls and Procedures 76 Item 9B Other Information 77 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 77 PART III Item 10 Directors, Executive Officers and Corporate Governance 78 Item 11

Executive Compensation

Executive Compensation 78 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 78 Item 13 Certain Relationships and Related Transactions, and Director Independence 78 Item 14 Principal Accountant Fees and Services 78 PART IV Item 15 Exhibits and Financial Statement Schedules 79 Item 16 Form 10-K Summary 86

SIGNATURES

SIGNATURES 87 This Annual Report on Form 10-K is for the year ended December 31, 2023. This Annual Report modifies and supersedes documents filed prior to this Annual Report. Information that we file with the Securities and Exchange Commission (the "SEC") in the future will automatically update and supersede information contained in this Annual Report. In this Annual Report, "we," "us," "our" "UHS" and the "Company" refer to Universal Health Services, Inc. and its subsidiaries. UHS is a registered trademark of UHS of Delaware, Inc., the management company for, and a wholly-owned subsidiary of Universal Health Services, Inc. Universal Health Services, Inc. is a holding company and operates through its subsidiaries including its management company, UHS of Delaware, Inc. All healthcare and management operations are conducted by subsidiaries of Universal Health Services, Inc. To the extent any reference to "UHS" or "UHS facilities" in this report including letters, narratives or other forms contained herein relates to our healthcare or management operations it is referring to Universal Health Services, Inc.'s subsidiaries including UHS of Delaware, Inc. Further, the terms "we," "us," "our" or the "Company" in such context similarly refer to the operations of Universal Health Services Inc.'s subsidiaries including UHS of Delaware, Inc. Any reference to employees or employment contained herein refers to employment with or employees of the subsidiaries of Universal Health Services, Inc. including UHS of Delaware, Inc. PART I

B usiness

ITEM 1. B usiness Our principal business is owning and operating, through our subsidiaries, acute care hospitals and outpatient facilities and behavioral health care facilities. As of February 27, 2024, we owned and/or operated 360 inpatient facilities and 48 outpatient and other facilities, including the following, located in 39 states, Washington, D.C., the United Kingdom and Puerto Rico: Acute care facilities located in the U.S.: 27 inpatient acute care hospitals; 27 free-standing emergency departments, and; 10 outpatient centers & 1 surgical hospital. Behavioral health care facilities (333 inpatient facilities and 10 outpatient facilities): Located in the U.S.: 186 inpatient behavioral health care facilities, and; 8 outpatient behavioral health care facilities. Located in the U.K.: 144 inpatient behavioral health care facilities, and; 2 outpatient behavioral health care facilities. Located in Puerto Rico: 3 inpatient behavioral health care facilities. Net revenues from our acute care hospitals, outpatient facilities and commercial health insurer accounted for 57% of our consolidated net revenues during each of 2023 and 2022. Net revenues from our behavioral health care facilities and commercial health insurer accounted for 43% of our consolidated net revenues during each of 2023 and 2022. Our behavioral health care facilities located in the U.K. generated net revenues of approximately $761 million in 2023 and $685 million in 2022. Total assets at our U.K. behavioral health care facilities were approximately $1.327 billion as of December 31, 2023 and $1.235 billion as of December 31, 2022. Services provided by our hospitals include general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services, pharmacy services and/or behavioral health services. We provide capital resources as well as a variety of management services to our facilities,

View Full Filing

View this 10-K filing on SEC EDGAR