Universal Health Services (UHS)

Risks

• Our revenues and results of operations are significantly affected by payments received from the government and other third party payers.
• If we are not able to provide high quality medical care at a reasonable price, patients may choose to receive their health care from our competitors.
• An increase in uninsured and underinsured patients in our acute care facilities or the deterioration in the collectability of the accounts of such patients could harm our results of operations.
• Our hospitals face competition for patients from other hospitals and health care providers.
• Our performance depends on our ability to recruit and retain quality physicians.
• Our performance depends on our ability to attract and retain qualified nurses and medical support staff and we face competition for staffing that may increase our labor costs and harm our results of operations.
• The failure of certain employers, or the closure of certain facilities, could have a disproportionate impact on our hospitals.
• Controls designed to reduce inpatient services and increasing rates of “denials” may reduce our revenues.
• We depend heavily on key management personnel and the departure of one or more of our key executives or a significant portion of our local hospital management personnel could harm our business.
• Reductions or changes in Medicare and Medicaid funding could have a material adverse effect on our future results of operations.
• We are subject to uncertainties regarding health care reform.
• We are required to treat patients with emergency medical conditions regardless of ability to pay.
• If we fail to continue to meet the promoting interoperability criteria related to electronic health record systems (“EHR”), our operations could be harmed.
• If we fail to comply with extensive laws and government regulations, we could suffer civil or criminal penalties or be required to make significant changes to our operations that could reduce our revenue and profitability.
• We are subject to occupational health, safety and other similar regulations and failure to comply with such regulations could harm our business and results of operations.
• The failure of certain employers, or the closure of certain facilities, could have a disproportionate impact on our hospitals.
• If any of our existing health care facilities lose their accreditation or any of our new facilities fail to receive accreditation, such facilities could become ineligible to receive reimbursement under Medicare or Medicaid.
• State efforts to regulate the construction or expansion of health care facilities could impair our ability to expand.
• A cyber security incident could cause a violation of HIPAA, breach of member privacy, or other negative impacts.
• Our revenues and volume trends may be adversely affected by certain factors over which we have no control.
• A worsening of economic and employment conditions in the United States could materially affect our business and future results of operations.
• Legal uncertainty or a worsening of the economic conditions in the United Kingdom could materially affect our business and future results of operations.
• We continue to see rising costs in construction materials and labor. Such increased costs could have an adverse effect on the cash flow return on investment relating to our capital projects.
• The number of outstanding shares of our Class B Common Stock is subject to potential increases or decreases.
• The right to elect the majority of our Board of Directors and the majority of the general shareholder voting power resides with the holders of Class A and C Common Stock, the majority of which is owned by Alan B. Miller, Executive Chairman of our Board of Directors.