UHS · 10-Q · 2026Q2 · Full report
Medicaid Supplemental Payments
UNIVERSAL HEALTH SERVICES INC · 2026-08-07 · Importance 64 · Surprise 42 · No source text
Universal Health Services recorded an aggregate net benefit of $1.520 billion from supplemental Medicaid programs during projected full-year 2026, including $2.245 billion of revenue and $725 million of provider taxes. Nevada’s State Directed Payment program generated $164 million of revenue in the first six months of 2026, including $30 million attributable to 2025, and is expected to provide approximately $297 million of net reimbursements for full-year 2026. Florida’s Medicaid Directed Payment Program produced a favorable $100 million increase in the second quarter of 2026 related to the October 2024–September 2025 period, while Washington, D.C.’s program generated $53 million in first-half 2026 revenue versus none in the prior-year period. The company estimates 2026 net reimbursements of $107 million from Washington, D.C., $104 million from Kentucky, $68 million from California, and $61 million from Tennessee, subject to required approvals and program conditions.
Key facts
- Projected aggregate net benefit 2026: Based upon our current 2026 full year net benefit related to various state Medicaid supplemental payment programs, amounting to approximately $1.520 billion. source
- Nevada SDP full-year estimate: We estimate that our aggregate net reimbursements pursuant to both components of the Nevada SDP program (net of related provider taxes) will approximate $297 million during the year ended December 31, 2026. source
- ATLIS pool size year 2: For year 2, the ATLIS pool will be comparable in size to the year 1 pool amounting to approximately $930 million. source
- Kentucky HRIP full-year estimate: We estimate that our net reimbursements pursuant to HRIP will approximate $104 million during the year ended December 31, 2026. source
- Kentucky HRIP pool size increase: In February, 2026, CMS approved the program for the period of January 1, 2026 through December 31, 2026 whereby the HRIP pool size will increase from $2.4 billion to $2.8 billion. source
- California supplemental full-year estimate: We estimate that our net reimbursements pursuant to this program will approximate $68 million during the year ended December 31, 2026. source
- Mississippi MHAP full-year estimate: We estimate that our net reimbursements pursuant to these supplemental payment programs will approximate $62 million during the year ended December 31, 2026. source
- Florida DPP excluding $100M estimate: Excluding the $100 million increase, we estimate that our reimbursements pursuant to this DPP will approximate $53 million during the year ended December 31, 2026 (applicable to the period of October 1, 2025 to September 30, 2026). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -5.9% | Of the $272 million increase in other operating expenses for the six months, $196 million, or 15.0%, was related to acute care Same… |
| revenue | positive | probable | +3.2% | Nevada SDP full-year estimate: We estimate that our aggregate net reimbursements pursuant to both components of the Nevada SDP program… |
| operating_income | negative | realized | -2.8% | The $128 million increase in other operating expenses was due primarily to a $107 million, or 15.9% increase related to our acute care… |
| revenue | positive | realized | +2.2% | Florida DPP one-time increase: Pursuant to the recently approved program, the annual aggregate net benefit applicable to our facilities… |
| revenue | positive | probable | +1.2% | Washington, D.C. SDP full-year estimate: We estimate that our net reimbursements pursuant to this program will approximate $107 million… |
| revenue | positive | probable | +1.1% | Kentucky HRIP full-year estimate: We estimate that our net reimbursements pursuant to HRIP will approximate $104 million during the year… |
| revenue | negative | realized | -0.9% | Tennessee DPP recorded amounts three-months: Included in our results of operations was approximately $17 million and $58 million during… |
| revenue | positive | committed | +0.8% | Washington Safety Net full-year estimate: We estimate that our net reimbursements pursuant to this expanded program will approximate $41… |
| revenue | positive | probable | +0.7% | California supplemental full-year estimate: We estimate that our net reimbursements pursuant to this program will approximate $68 million… |
| revenue | positive | committed | +0.7% | Indiana DPP full-year estimate: We estimate that our net reimbursements pursuant to this program will approximate $39 million during the… |
| revenue | positive | probable | +0.7% | Mississippi MHAP full-year estimate: We estimate that our net reimbursements pursuant to these supplemental payment programs will… |
| revenue | positive | probable | +0.7% | Tennessee DPP full-year estimate: We estimate that our net reimbursements pursuant to this program will approximate $61 million during the… |