Universal Health Services cuts 2026 forecast on Medicaid reimbursement uncertainty - SRN News
July 27 (Reuters) – 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 […]
Universal Health Services cuts 2026 forecast on Medicaid reimbursement uncertaintyAudio By CarbonatixJuly 27 (Reuters) – 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. Here are some details:• 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. • 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. (Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shilpi Majumdar)