UHS · 10-Q · 2026Q3 · Full report
Medicaid Supplemental Payments
UNIVERSAL HEALTH SERVICES INC · 2026-11-06 · Importance 76 · Surprise 56 · Contradicted
For the nine months ended September 30, 2026, total supplemental Medicaid program revenues were $2.334 billion and aggregate net benefit was $1.584 billion, compared with $1.766 billion in revenues and $1.211 billion in net benefit for the comparable 2025 period. Projected full-year 2026 net benefit is $1.584 billion, including $297 million from Nevada’s State Directed Payment program and $128 million from Washington, D.C.’s program. Florida’s DPP approval in April 2026 increased the annual net benefit applicable to October 2024–September 2025 by approximately $100 million, recorded in the second quarter of 2026. The company receives annual Medicaid revenues of at least $100 million from each of California, Texas, Nevada, Washington, D.C., Florida, Illinois, Pennsylvania, Kentucky, Virginia, Michigan, Mississippi, Massachusetts, Tennessee, Arizona, and Washington.
Key facts
- The Texas CHIRP preprint for the September 1, 2026–August 31, 2027 rate period was approved by CMS in September 2026 with a $9.2 billion pool. source
- The Kentucky HRIP pool increased from $2.4 billion to $2.8 billion for January 1–December 31, 2026, following CMS approval in February 2026. source
- For ATLIS program year 2 covering FFY 2026, the pool is expected to be approximately $930 million, comparable in size to the year 1 pool. source
- UHS estimates aggregate net reimbursements from both Nevada SDP components, net of related provider taxes, of approximately $297 million for the year ended December 31, 2026. source
- Excluding the $100 million increase, UHS estimates Florida DPP reimbursements of approximately $58 million for the year ended December 31, 2026, applicable to October 1, 2025–September 30, 2026; CMS approval of that program preprint is pending and UHS is uncertain whether or when it will be approved and at what amount. source
- UHS estimates Washington Safety Net Assessment Program net reimbursements of approximately $48 million for the year ended December 31, 2026; CMS approved the program for January 1–December 31, 2026. source
- UHS estimates Ohio DPP net reimbursements of approximately $50 million for the year ended December 31, 2026, approximately $16 million of which relates to January–December 2025; CMS approval for the 2026 program period is pending. source
- UHS recorded Nevada SDP reimbursements of approximately $66 million and $58 million in the three months ended September 30, 2026 and 2025, respectively, and approximately $231 million and $171 million in the nine months ended those dates, respectively. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +1.3% | UHS recorded Nevada SDP reimbursements of approximately $66 million and $58 million in the three months ended September 30, 2026 and 2025,… |
| revenue | positive | probable | +0.5% | Excluding the $100 million increase, UHS estimates Florida DPP reimbursements of approximately $58 million for the year ended December 31,… |
| revenue | negative | contingent | — | The Nevada SDP for January 1–December 31, 2026 was approved by CMS in March 2026; there is no assurance the Medicaid managed care… |
| revenue | negative | contingent | — | The April 22, 2024 Managed Care Rule requires state directed payments for inpatient and outpatient hospital services, nursing facility… |
| liability | negative | contingent | — | If CMS determines a state's provider taxes used to finance SDP or other Medicaid supplemental payments are noncompliant, UHS's payments… |