UHS · 10-Q · 2026Q2 · Full report

Operating Expense Trends

UNIVERSAL HEALTH SERVICES INC · 2026-08-07 · Importance 54 · Surprise 40 · In source text

Consolidated second-quarter salaries, wages and benefits increased 6.2% to $2.140 billion but declined to 46.1% of revenue from 47.0%, while other operating expenses increased 16.3% to $1.352 billion and rose to 29.1% of revenue from 27.1%. In Same Facility acute care, other operating expenses increased $107 million, or 15.9%, including a $53 million, or 30.6%, increase in commercial insurer medical costs and a $22 million, or 12.4%, increase in physician expenses. Six-month Same Facility acute-care other operating expenses increased $196 million, or 15.0%, including $98 million of additional commercial insurer medical costs and a $43 million, or 12.4%, increase in physician expenses. Acute-care salaries and benefits increased 5.7% in the second quarter and 5.0% for six months, while their revenue ratios improved to 39.5% and 39.1%, respectively.

Key facts

• Other operating expenses on a Same Facility basis increased by $196 million, or 15.0%, during the six months ended June 30, 2026 versus the comparable six-month period of 2025. source
• Excluding the operating costs of the commercial insurer, other operating expenses increased by $98 million, or 10.1%, during the six months ended June 30, 2026 versus the comparable period of 2025. source
• Other operating expenses increased by $128 million, or 16.9%, during the second quarter of 2026, as compared to the comparable quarter of 2025. source
• Other operating expenses increased by $272 million, or 18.4%, during the first six months of 2026, compared to the comparable period of 2025. source
• The company increased reserves for self-insured professional and general liability claims by $28 million during each of the three and six-month periods ended June 30, 2026; approximately $17 million of the increase is included in same facility acute care results and approximately $11 million in same facility behavioral health results during each period. source
• Other operating expenses on a Same Facility basis increased by $107 million, or 15.9%, during the three months ended June 30, 2026 versus the comparable quarter of 2025. source
• Excluding the operating costs of the commercial insurer, other operating expenses increased by $54 million, or 10.8%, during the three months ended June 30, 2026 versus the comparable quarter of 2025. source
• During the three-month period ended June 30, 2026, as compared to the comparable quarter of 2025, salaries, wages and benefits expense increased by $61 million, or 6.5%. source

Impact estimates