Universal Health Services is looking at a financial curveball, but isn’t panicking, writes Harold Brubaker for the Philadelphia Inquirer.
The King of Prussia company operates acute-care and behavioral health facilities in 39 states, and is looking at up to $400 million in lost Medicaid funding by 2032 due to a shift in federal policy.
The projection stems from the One Big Beautiful Bill Act, which restricts how states like Pennsylvania and New Jersey can use provider taxes to increase federal Medicaid funding. Chief Financial Officer Steve Filton said the changes could jeopardize a big chunk of the company’s current $1.2 billion net Medicaid benefit.
Still, the company leaders are hopeful. CEO Marc Miller believes lawmakers are starting to realize the law’s unintended consequences, especially for hospitals across the country.
“They are starting to recognize right now that what they passed simply can’t be left as is,” said Miller.
UHS plans to gradually reduce its reliance on Medicaid-based programs, especially in behavioral health, which accounts for 60% of its supplemental Medicaid revenue.
Filton said they will not rush to pull back from their Medicaid-centered programs as the federal changes won’t go into affect for another three years.
Read more about the Big Beautiful Bill’s impact on Universal Health Services in the Philadelphia Inquirer.
