UHS · 10-Q · 2026Q2 · Full report

Physician Cost Pressure

UNIVERSAL HEALTH SERVICES INC · 2026-08-07 · Importance 42 · Surprise 40

Hospital-based physician expenses increased materially, especially in emergency room care, anesthesiology and radiology. Same Facility acute-care physician expenses rose 12.4%, or $22 million, in the second quarter and 12.4%, or $43 million, in the first six months of 2026. UHS has implemented initiatives to mitigate these increases, but continued physician-cost escalation could pressure hospital economics and the ability to maintain service volumes.

Key facts

• Contributing to increased operating expenses during the six months ended June 30, 2026 was a $43 million, or 12.4%, aggregate increase in physician expenses incurred at certain hospitals. source
• Aggregate physician expenses incurred at certain hospitals increased by $22 million, or 12.4%, contributing to the increased operating expenses during the three months ended June 30, 2026 versus the comparable quarter of 2025. source
• On a Same Facility basis during Q2 2026, salaries, wages and benefits expense in behavioral health increased by $60 million or 6.3%, driven by a 4.2% increase in expense per average FTE and a 2.0% increase in average number of FTEs; as a percent of net revenues salaries fell to 52.8% from 53.4%. source
• During the three months ended June 30, 2026, the company experienced significant increases in hospital-based physician related expenses, especially in emergency room care, anesthesiology and radiology. source