UHS · 10-Q · 2026Q2 · Full report

California Medicaid Rate Methodology

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

California Medicaid adopted a new reimbursement method for inpatient psychiatric services under the Short-Doyle Medi-Cal program effective December 12, 2023. The methodology incorporates a cost-based ceiling that may require renegotiation of county contracts and could produce materially lower rates than prior market-based negotiated payments. Universal Health Services is awaiting formal California guidance on prospective implementation and whether counties may apply the change retroactively to December 12, 2023. Management states that the adverse financial impact could be material under some scenarios.