UNIVERSAL HEALTH SERVICES INC

Previous wording

As of March 31, 2025, we owned and/or operated 362 inpatient facilities and 60 outpatient and other facilities, including the following, located in 39 states, Washington, D.C., the United Kingdom and Puerto Rico:

Current wording

As of June 30, 2025, we owned and/or operated 367 inpatient facilities and 61 outpatient and other facilities, including the following, located in 39 states, Washington, D.C., the United Kingdom and Puerto Rico:

Previous wording

28 inpatient acute care hospitals (excluding the newly constructed 142-bed Cedar Hill Regional Medical Center located Washington, D.C. that was completed and opened in April, 2025);

Current wording

29 inpatient acute care hospitals (including the newly constructed 142-bed Cedar Hill Regional Medical Center located Washington, D.C. that was completed and opened in April, 2025);

Previous wording

33 free-standing emergency departments, and;

Current wording

34 free-standing emergency departments, and;

Previous wording

Behavioral health care facilities (334 inpatient facilities and 16 outpatient facilities):

Current wording

Behavioral health care facilities (338 inpatient facilities and 16 outpatient facilities):

Previous wording

Net revenues from our acute care hospitals, outpatient facilities and commercial health insurer accounted for 57% of our consolidated net revenues during each of the three-month periods ended March 31, 2025 and 2024. Net revenues from our behavioral health care facilities and commercial health insurer accounted for 43% of our consolidated net revenues during each of the three-month periods ended March 31, 2025 and 2024.

Current wording

Net revenues from our acute care hospitals, outpatient facilities and commercial health insurer accounted for 56% of our consolidated net revenues during each of the three-month periods ended June 30, 2025 and 2024, and 57% and 56% of our consolidated net revenues during the six-month periods ended June 30, 2025 and 2024, respectively. Net revenues from our behavioral health care facilities and commercial health insurer accounted for 44% of our consolidated net revenues during each of the three-month periods ended June 30, 2025 and 2024, and 43% and 44% of our consolidated net revenues during the six-month periods ended June 30, 2025 and 2024, respectively.

Previous wording

Our behavioral health care facilities located in the U.K. generated net revenues of approximately $227 million and $208 million during the three-month periods ended March 31, 2025 and 2024, respectively. Total assets at our U.K. behavioral health care facilities were approximately $1.423 billion as of March 31, 2025 and $1.358 billion as of December 31, 2024.

Current wording

Our behavioral health care facilities located in the U.K. generated net revenues of approximately $247 million and $213 million during the three-month periods ended June 30, 2025 and 2024, respectively, and $474 million and $421 million during the six-month periods ended June 30, 2025 and 2024, respectively. Total assets at our U.K. behavioral health care facilities were approximately $1.512 billion as of June 30, 2025 and $1.358 billion as of December 31, 2024.

Previous wording

as discussed below in Sources of Revenue, we receive revenues from various state and county-based programs, including Medicaid in all the states in which we operate. We receive annual Medicaid revenues of approximately $100 million, or greater, from each of California, Nevada, Texas, Illinois, Pennsylvania, Washington, D.C., Kentucky, Massachusetts, Florida, Virginia, and Mississippi. Most of these programs are approved on a year-to-year basis and there is no assurance that these revenues will continue at their current rates or at all. The prior President Trump administration had attempted to limit Medicaid expenditures by, for example, attaching work requirements to eligibility for Medicaid waiver benefits. The second Trump administration is likely to explore similar solutions to limit Medicaid enrollment or expenditure. The Trump administration has already taken steps to undo Biden-era executive orders and to freeze funding for federal programs. While the administration’s initial freeze has since been rescinded, the administration is likely to make other attempts to reduce federal program expenditures and can generally be expected to oppose increases in ACA and Medicaid enrollment. We also receive Medicaid DSH payments in certain states including, most significantly, Texas. We are therefore particularly sensitive to potential reductions in Medicaid and other state-based revenue programs as well as regulatory, economic, environmental and competitive changes in those states;

Current wording

as discussed below in Sources of Revenue, we receive revenues from various state and county-based programs, including Medicaid in all the states in which we operate. We receive annual Medicaid revenues of approximately $100 million, or greater, from each of California, Texas, Nevada, Illinois, Pennsylvania, Washington, D.C., Kentucky, Tennessee, Massachusetts, Virginia, Mississippi and Florida. Most of these programs are approved on a year-to-year basis and there is no assurance that these revenues will continue at their current rates or at all. We are therefore particularly sensitive to potential reductions in Medicaid and other state-based revenue programs as well as regulatory, economic, environmental and competitive changes in those states;

Previous wording

an increasing number of legislative initiatives have been passed into law that may result in major changes in the health care delivery system on a national or state level. For example, Congress has reduced to $0 the penalty for failing to maintain health coverage that was part of the original Patient Protection and Affordable Care Act, as amended by the Health and Education Reconciliation Act (collectively, the "Legislation") as part of the Tax Cuts and Jobs Act. The Biden administration had issued executive orders implementing a special enrollment period permitting individuals to enroll in health plans outside of the annual open enrollment period and reexamining policies that may undermine the Legislation or the Medicaid program. The Inflation Reduction Act of 2022 (“IRA”) was passed on August 16, 2022, which among other things, allows for the Centers for Medicare and Medicaid Services ("CMS") to negotiate prices for certain single-source drugs reimbursed under Medicare Part B and Part D. The American Rescue Plan Act’s expansion of subsidies to purchase coverage through a Legislation exchange, which the IRA continued through 2025, has increased exchange enrollment. However, the Trump administration has already taken steps to undo certain Biden-era executive orders, including those intended to lower drug costs for beneficiaries, and to freeze funding for federal programs. While the administration’s initial freeze has since been rescinded, the administration is likely to make other attempts to reduce federal program expenditures and can generally be expected to oppose increases in ACA and Medicaid enrollment. If the subsidies are not extended beyond 2025, exchange enrollment may be adversely impacted;

Current wording

there are additional legislative changes that are likely to result in major changes in the health care delivery system on a national or state level. For example, Congress has reduced to $0 the penalty for failing to maintain health coverage that was part of the original Patient Protection and Affordable Care Act, as amended by the Health and Education Reconciliation Act (collectively, the “ACA") as part of the Tax Cuts and Jobs Act. The Biden administration had issued executive orders implementing a special enrollment period permitting individuals to enroll in health plans outside of the annual open enrollment period and reexamining policies that may undermine the ACA or the Medicaid program. The Inflation Reduction Act of 2022 (“IRA”) was passed on August 16, 2022, which among other things, allows for the Centers for Medicare and Medicaid Services ("CMS") to negotiate prices for certain single-source drugs reimbursed under Medicare Part B and Part D. The American Rescue Plan Act’s expansion of subsidies to purchase coverage through an ACA exchange, which the IRA continued through 2025, has increased exchange enrollment. However, the Trump administration has already taken steps to undo these Biden-era initiatives, including adopting legislation eliminating certain exchange premium tax credits;

Previous wording

there have been numerous political and legal efforts to expand, repeal, replace or modify the Legislation, since its enactment, some of which have been successful, in part, in modifying the Legislation, as well as court challenges to the constitutionality of the Legislation. The U.S. Supreme Court held in California v. Texas that the plaintiffs lacked standing to challenge the Legislation’s requirement to obtain minimum essential health insurance coverage, or the individual mandate. The Court dismissed the case without specifically ruling on the constitutionality of the Legislation. As a result, the Legislation will continue to remain law, in its entirety, likely for the foreseeable future. On September 7, 2022, the Legislation faced its most recent challenge when a Texas Federal District Court judge, in the case of Braidwood Management v. Becerra, ruled that a requirement that certain health plans cover services without cost sharing violates the Appointments Clause of the U.S. Constitution and that the coverage of certain HIV prevention medication violates the Religious Freedom Restoration Act. The decision was ultimately appealed to the U.S. Supreme Court and a decision remains pending. The outcome and impacts of this litigation cannot be predicted. Any future efforts to challenge, replace or replace the Legislation or expand or substantially amend its provision is unknown. See below in Sources of Revenues and Health Care Reformfor additional disclosure;

Current wording

there have been numerous political and legal efforts to expand, repeal, replace or modify the ACA since its enactment, some of which have been successful, in part, in modifying the ACA, as well as court challenges to the constitutionality of the legislation. The U.S. Supreme Court held in California v. Texas that the plaintiffs lacked standing to challenge the legislation’s requirement to obtain minimum essential health insurance coverage, or the individual mandate. The Court dismissed the case without specifically ruling on the constitutionality of the ACA. The legislation faced its most recent challenge when the Supreme Court, in the June 2025 Kennedy v. Braidwood Management decision, opined in favor of ACA HIV preventive care coverage. The impacts of this decision cannot be predicted. Any future efforts to challenge, replace or replace the ACA or expand or substantially amend its provision is unknown. See below in Sources of Revenues and Health Care Reformfor additional disclosure;

Previous wording

possible unfavorable changes in the levels and terms of reimbursement for our charges by third party payers or government based payers, including Medicare or Medicaid in the United States, and government based payers in the United Kingdom;

Current wording

additional possible unfavorable changes in the levels and terms of reimbursement for our charges by third party payers or government based payers, including Medicare or Medicaid in the United States, and government based payers in the United Kingdom;

Previous wording

the impact of a shift of care from inpatient to lower cost outpatient settings and controls designed to reduce inpatient services on our revenue, and;

Current wording

the impact of a shift of care from inpatient to lower cost outpatient settings and controls designed to reduce inpatient services;

Previous wording

Proceedings. We have reached an agreement in principle with respect to the Pavilion matter which is subject to the execution of a final settlement agreement and court approval of that agreement. Although the terms of the settlement are confidential, we expect that the settlement, if finalized and approved by the Court, will be covered by our commercial excess insurance and our existing reserves for that matter. We can make no assurances regarding the ultimate financial exposure, timing, substance or outcome of the Pavilion and Cumberland matters (which related to occurrences in the 2020 policy year), or the amount of damages that may be ultimately held recoverable after post-judgment proceedings and appeals, should the above-mentioned agreement in principle related to the Pavilion matter not be finalized. As of March 31, 2025, without reduction for any potential amounts related to the Pavilion and Cumberland matters, the Company and its subsidiaries have aggregate insurance coverage of approximately $221 million remaining under commercial policies for matters applicable to the 2020 policy year (in excess of the applicable self-insured retention amounts of $10 million per single occurrence/$25 million for multi-plaintiff matters for professional liability claims and $3 million per occurrence for general liability claims). In the event the resolution of the Pavilion and/or Cumberland matters exhausts all or a significant portion of the remaining commercial insurance coverage available to the Company and its subsidiaries related to other matters that occurred in 2020, or the Pavilion and Cumberland matters cause the posting of large bonds or other collateral during the appeal processes, our future results of operations and capital resources would be materially adversely impacted;

Current wording

the outcome of known and unknown litigation, government investigations, inquiries, false claims act allegations, and liabilities and other claims asserted against us and other matters, and the effects of adverse publicity relating to such matters, including, but not limited to, the jury verdict returned against Cumberland Hospital for Children and Adolescents ("Cumberland"), an indirect subsidiary of ours, as disclosed in Note 6 to the Condensed Consolidated Financial Statements - Commitments and Contingencies. We can make no assurances regarding the ultimate financial exposure, timing, substance or outcome of the Cumberland matter (which related to occurrences in the 2020 policy year), or the amount of damages that may be ultimately held recoverable after post-judgment proceedings and appeals. As of June 30, 2025, without reduction for potential amounts related to the Cumberland matter, the Company and its subsidiaries have aggregate insurance coverage of approximately $147 million remaining under commercial policies for matters applicable to the 2020 policy year (in excess of the applicable self-insured retention amounts of $10 million per single occurrence/$25 million for multi-plaintiff matters for professional liability claims and $3 million per occurrence for general liability claims). In the event the resolution of the Cumberland matter exhausts all or a significant portion of the remaining commercial insurance coverage available to the Company and its subsidiaries related to other matters that occurred in 2020, or the Cumberland matter causes the posting of a large bond or other collateral during the appeal processes, our future results of operations and capital resources would be materially adversely impacted;

Previous wording

the impact of severe weather conditions, including the effects of hurricanes and climate change;

Current wording

the impact of severe weather conditions, including the effects of hurricanes, flash floods, wildfires and climate change;

Previous wording

we have exposure to fluctuations in foreign currency exchange rates, primarily the pound sterling. We have international subsidiaries that operate in the United Kingdom. We routinely hedge our exposures to foreign currencies with certain financial institutions in an effort to minimize the impact of certain currency exchange rate fluctuations, but these hedges may be inadequate to protect us from currency exchange rate fluctuations. To the extent that these hedges are inadequate, our reported financial results or the way we conduct our business could be adversely affected. Furthermore, if a financial counterparty to our hedges experiences financial difficulties or is otherwise unable to honor the terms of the foreign currency hedge, we may experience material financial losses;

Current wording

we have exposure to fluctuations in foreign currency exchange rates, primarily the pound sterling. We have international subsidiaries that operate in the United Kingdom. We routinely hedge our exposures to foreign currencies with certain financial institutions in an effort to minimize the impact of certain currency exchange rate fluctuations, but these hedges may be inadequate to protect us from currency exchange rate fluctuations. To the extent that these hedges are inadequate, our reported financial results or the way we conduct our business could be adversely affected. Furthermore, if a financial counterparty to our hedges experiences financial difficulties or is otherwise unable to honor the terms of the foreign currency hedge, we may experience material financial losses, and;

Previous wording

Net revenues increased by 6.7%, or $256 million, to $4.100 billion during the three-month period ended March 31, 2025, as compared to $3.844 billion during first quarter of 2024. The net increase was primarily attributable to: (i) a $226 million, or 6.1%, increase in net revenues generated from our acute care hospital services and behavioral health services operated during both periods (which we refer to as “Same Facility”), and; (ii) an other combined net increase of $30 million, consisting primarily of $27 million of net revenues generated during the first quarter of 2025 at West Henderson Hospital, a newly constructed, 150-bed acute care hospital located in Las Vegas, Nevada, that was completed and opened during the fourth quarter of 2024.

Current wording

Net revenues increased by 9.6%, or $376 million, to $4.284 billion during the three-month period ended June 30, 2025, as compared to $3.908 billion during the second quarter of 2024. The net increase was primarily attributable to: (i) a $317 million, or 8.4%, increase in net revenues generated from our acute care hospital services and behavioral health services operated during both periods (which we refer to as “Same Facility”), and; (ii) an other combined net increase of $59 million, consisting primarily of $43 million of combined net revenues generated during the second quarter of 2025 at two newly constructed acute care hospitals located in Las Vegas, Nevada (West Henderson Hospital which opened during the fourth quarter of 2024), and Washington, D.C. (Cedar Hill Regional Medical Center which opened during the second quarter of 2025).

Previous wording

Income before income taxes (before income attributable to noncontrolling interests) increased by $84 million, or 25%, to $420 million during the three-month period ended March 31, 2025 as compared to $336 million during the first quarter of 2024. The net increase was due to:

Current wording

Income before income taxes (before income attributable to noncontrolling interests) increased by $91 million, or 24%, to $473 million during the three-month period ended June 30, 2025 as compared to $382 million during the second quarter of 2024. The net increase was due to:

Previous wording

an increase of $55 million at our acute care facilities, as discussed below in Acute Care Hospital Services;

Current wording

an increase of $15 million at our acute care facilities, as discussed below in Acute Care Hospital Services;

Previous wording

an increase of $17 million at our behavioral health care facilities, as discussed below in Behavioral Health Care Services;

Current wording

an increase of $37 million at our behavioral health care facilities, as discussed below in Behavioral Health Care Services;

Previous wording

an increase of $13 million from a decrease in interest expense, as discussed below in Other Operating Results-Interest Expense, and;

Current wording

an increase of $14 million from a decrease in interest expense, as discussed below in Other Operating Results-Interest Expense;

Previous wording

Net income attributable to UHS increased by $55 million, or 21%, to $317 million during the three-month period ended March 31, 2025, as compared to $262 million during the first quarter of 2024. This increase was attributable to:

Current wording

Net income attributable to UHS increased by $64 million, or 22%, to $353 million during the three-month period ended June 30, 2025, as compared to $289 million during the second quarter of 2024. This increase was attributable to:

Previous wording

a $84 million increase in income before income taxes, as discussed above;

Current wording

a $91 million increase in income before income taxes, as discussed above;

Previous wording

a decrease of $29 million resulting from an increase in the provision for income taxes resulting primarily from: (i) the increase in the provision for income taxes resulting from the $84 million increase in pre-tax income, and; (ii) a $9 million increase in the provision for income taxes due to a decrease in the net benefit recorded in connection with "ASU 2016-09", Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting, net of the impact of executive compensation limitations pursuant to IRC section 162(m) ($.4 million net benefit recorded during the first quarter of 2025 as compared to $9.2 million during the first quarter of 2024).

Current wording

a decrease of $23 million resulting from an increase in the provision for income taxes resulting primarily from: (i) the increase in the provision for income taxes resulting from the $87 million increase in pre-tax income, and; (ii) a $2 million increase in the provision for income taxes due to a decrease in the net benefit recorded in connection with "ASU 2016-09", Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting, net of the impact of executive compensation limitations pursuant to IRC section 162(m) ($0.8 million net benefit recorded during the second quarter of 2025 as compared to $2.5 million during the second quarter of 2024).

Previous wording

There were no adjustments recorded to our reserves for self-insured professional and general liability claims during the first quarter of 2025. During the first quarter of 2024, as a result of unfavorable trends experienced, our results of operations included a $7 million increase to our reserves for self-insured professional and general liability claims, of which approximately $5 million is included in our same facility basis acute care hospital services' results and approximately $2 million is included in our same facility basis behavioral health services' results.

Current wording

There were no adjustments recorded to our reserves for self-insured professional and general liability claims during the first six months of 2025. As a result of unfavorable trends experienced, included in our results of operations were increases to our reserves for self-insured professional and general liability claims amounting to approximately $7 million and $14 million during the three and six-month periods ended June 30, 2024, respectively. Approximately $5 million and $10 million of the increase is included in our same facility basis acute care hospital services' results during the three and six-month periods ended June 30, 2024, respectively, and approximately $2 million and $4 million is included in our same facility basis behavioral health services' results during the three and six-month periods ended June 30, 2024, respectively.

Previous wording

The following table sets forth certain operating statistics for our acute care hospital services for the three-month periods ended March 31, 2025 and 2024.

Current wording

The following table sets forth certain operating statistics for our acute care hospital services for the three and six-month periods ended June 30, 2025 and 2024.

Previous wording

Our Same Facility basis results reflected on the table below also exclude from net revenues and other operating expenses, provider tax assessments incurred in each period as discussed below Sources of Revenue-Summary of Various State Medicaid Supplemental Payment Programs. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table below under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the tables below since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with U.S. GAAP and as presented in the condensed consolidated financial statements and notes thereto as contained in this Quarterly Report on Form 10-Q.

Current wording

Our Same Facility basis results reflected on the table below also exclude from net revenues and other operating expenses, provider tax assessments incurred in each period as discussed below Sources of Revenue-Summary of Various State Medicaid Supplemental Payment Programs. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table below under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the tables below since the amounts offset between net revenues and other operating expenses. Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services’ results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year presentation. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with U.S. GAAP and as presented in the condensed consolidated financial statements and notes thereto as contained in this Quarterly Report on Form 10-Q.

Previous wording

The following table summarizes the results of operations for our acute care facilities on a Same Facility basis and is used in the discussion below for the three-month periods ended March 31, 2025 and 2024 (dollar amounts in thousands):

Current wording

The following table summarizes the results of operations for our acute care facilities on a Same Facility basis and is used in the discussion below for the three and six-month periods ended June 30, 2025 and 2024 (dollar amounts in thousands):

Previous wording

During the three-month period ended March 31, 2025, net revenue per adjusted admission increased by 2.5% while net revenue per adjusted patient day increased 4.7%, as compared to the comparable quarter of 2024. During the three-month period ended March 31, 2025, as compared to the comparable prior year quarter, inpatient admissions to our acute care hospitals increased by 2.0% while adjusted admissions (adjusted for outpatient activity) increased by 2.4%. Patient days at these facilities decreased by 0.1% and adjusted patient days increased by 0.3% during the three-month period ended March 31, 2025, as compared to the comparable prior year quarter. The average length of inpatient stay at these facilities was 4.9 days and 5.0 days during the three-month periods ended March 31, 2025 and 2024, respectively. The occupancy rate, based on the average available beds at these facilities, was 71% and 70% during the three-month periods ended March 31, 2025 and 2024, respectively.

Current wording

During the three-month period ended June 30, 2025, net revenue per adjusted admission increased by 3.8% while net revenue per adjusted patient day increased 4.7%, as compared to the comparable quarter of 2024. During the three-month period ended June 30, 2025, as compared to the comparable prior year quarter, inpatient admissions to our acute care hospitals increased by 2.2% while adjusted admissions (adjusted for outpatient activity) increased by 2.0%. Patient days at these facilities increased by 1.3% and adjusted patient days increased by 1.1% during the three-month period ended June 30, 2025, as compared to the comparable prior year quarter. The average length of inpatient stay at these facilities was 4.7 days and 4.8 days during the three-month periods ended June 30, 2025 and 2024, respectively. The occupancy rate, based on the average available beds at these facilities, was 66% during each of the three-month periods ended June 30, 2025 and 2024, respectively.

Previous wording

Other operating expenses increased by $52 million, or 9.1%, during the first quarter of 2025, as compared to the comparable quarter of 2025. Operating expenses incurred by our commercial health insurer, consisting primarily of medical costs, increased by $41 million, or 32.9%, during the first quarter of 2025, as compared to the comparable quarter of 2024. Excluding the operating costs of our commercial insurer from each period, other operating expenses increased by $12 million, or 2.6%. As a percentage of net revenues, other operating expenses increased to 28.1% during the first quarter of 2025, as compared to 27.4% during the comparable quarter of 2024.

Current wording

Other operating expenses increased by $67 million, or 11.5%, during the second quarter of 2025, as compared to the comparable quarter of 2025. Operating expenses incurred by our commercial health insurer, consisting primarily of medical costs, increased by $52 million, or 43.5% (due to a corresponding increase in membership), during the second quarter of 2025, as compared to the comparable quarter of 2024. Excluding the operating costs of our commercial insurer from each period, other operating expenses increased by $14 million, or 3.1%. As a percentage of net revenues, other operating expenses increased to 28.5% during the second quarter of 2025, as compared to 27.6% during the comparable quarter of 2024.

Previous wording

On a Same Facility basis, during the three-month period ended March 31, 2025, as compared to the comparable quarter of 2024, salaries, wages and benefits expense increased by $33 million, or 3.8%. As a percentage of net revenues, salaries, wages and benefits expense decreased to 39.8% during the first quarter of 2025 as compared to 40.8% during the first quarter of 2024.

Current wording

On a Same Facility basis, during the six-month period ended June 30, 2025, as compared to the comparable period of 2024, salaries, wages and benefits expense increased by $80 million, or 4.7%. As a percentage of net revenues, salaries, wages and benefits expense decreased to 39.9% during the first six months of 2025 as compared to 40.8% during the first six months of 2024.

Previous wording

Other operating expenses increased by $7 million, or 2.4%, during the first quarter of 2025, as compared to the comparable quarter of 2024. As a percentage of net revenues during each quarter, other operating expenses decreased to 18.8% during the first quarter of 2025 as compared to 19.4% during the first quarter of 2024.

Current wording

Supplies expense increased by $17 million, or 2.4%, during the second quarter of 2025, as compared to the second quarter of 2024. As a percentage of net revenues, supplies expense decreased to 15.4% during the six-month period ended June 30, 2025, as compared to 16.1% during the first six months of 2024.

Previous wording

The following table summarizes the results of operations for all our acute care operations during the three-month periods ended March 31, 2025 and 2024. These amounts include: (i) our acute care results on a Same Facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including, if applicable, the results of recently acquired/opened facilities and businesses. Dollar amounts below are reflected in thousands.

Current wording

The following table summarizes the results of operations for all our acute care operations during the three and six-month periods ended June 30, 2025 and 2024. These amounts include: (i) our acute care results on a Same Facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of recently acquired and/or opened facilities and businesses. Dollar amounts below are reflected in thousands.

Previous wording

During the three-month period ended March 31, 2025, as compared to the comparable prior year quarter, net revenues from our acute care hospital services increased by $164 million, or 7.5%, due to: (i) the $136 million, or 6.5% increase in Same Facility revenues, as discussed above, and; (ii) $28 million increase consisting primarily of the $27 million of net revenues generated during the first quarter of 2025 at West Henderson Hospital, a newly constructed, 150-bed acute care hospital located in Las Vegas, Nevada, that was completed and opened during the fourth quarter of 2024.

Current wording

During the three-month period ended June 30, 2025, as compared to the comparable prior year quarter, net revenues from our acute care hospital services increased by $222 million, or 10.2%, due to: (i) the $167 million, or 7.9% increase in Same Facility revenues, as discussed above, and; (ii) an other combined net increase of $55 million consisting primarily of $43 million of combined net revenues generated during the second quarter of 2025 at two newly constructed and recently opened acute care hospitals, as mentioned above.

Previous wording

During the three-month period ended March 31, 2025, as compared to the comparable quarter of 2024, salaries, wages and benefits expense increased by $49 million, or 5.7%. The increase was due primarily to the above-mentioned $33 million increase related to our acute care hospital services, on a Same Facility basis, as well as the salaries, wages and benefits expense incurred at West Henderson Hospital and Cedar Hill Regional Medical Center.

Current wording

During the three-month period ended June 30, 2025, as compared to the comparable quarter of 2024, salaries, wages and benefits expense increased by $78 million, or 9.1%. The increase was due primarily to the above-mentioned $47 million increase related to our acute care hospital services, on a Same Facility basis, as well as the salaries, wages and benefits expense incurred at the two above-mentioned newly constructed and recently opened acute care hospitals.

Previous wording

Other operating expenses increased by $60 million, or 9.2%, during the first quarter of 2025, as compared to the comparable quarter of 2024. The increase was due primarily to the $52 million above-mentioned increase related to our acute care hospital services, on a Same Facility basis, as well as the other operating expenses incurred at West Henderson Hospital and Cedar Hill Regional Medical Center.

Current wording

Other operating expenses increased by $101 million, or 15.5%, during the second quarter of 2025, as compared to the comparable quarter of 2024. The increase was due primarily to the $67 million above-mentioned increase related to our acute care hospital services, on a Same Facility basis, as well as the other operating expenses incurred at the two above-mentioned newly constructed and recently opened acute care hospitals.

Previous wording

Supplies expense increased by $1 million, or 0.4%, during the first quarter of 2025, as compared to the comparable quarter of 2024. The increase was due to the above-mentioned $4 million decrease related to our acute care hospital services, on a Same Facility basis, offset by the supplies expense incurred during the first quarter of 2025 at West Henderson Hospital.

Current wording

Supplies expense increased by $29 million, or 8.8%, during the second quarter of 2025, as compared to the comparable quarter of 2024. The increase was due to the above-mentioned $20 million increase related to our acute care hospital services, on a Same Facility basis, as well as the supplies expense incurred during the second quarter of 2025 at the two above-mentioned newly constructed and recently opened acute care hospitals.

Previous wording

Income before income taxes increased by $55 million, or 27%, to $261 million, or 11.1% of net revenues during the first quarter of 2025, as compared to $205 million, or 9.4% of net revenues during the comparable quarter of 2024. The increase resulted primarily from the $63 million, or 31%, increase in income before income taxes from our acute care hospital services, on a Same Facility basis, as discussed above, and $8 million of other combined net decreases resulting primarily from the pre-tax loss/expenses incurred during the first quarter of 2025 at the above-mentioned West Henderson Hospital and Cedar Hill Regional Medical Center which opened in April, 2025.

Current wording

Income before income taxes increased by $70 million, or 17%, to $489 million, or 10.3% of net revenues during the first six months of 2025, as compared to $418 million, or 9.6% of net revenues during the comparable period of 2024. The increase resulted primarily from the $104 million, or 25%, increase in income before income taxes from our acute care hospital services, on a Same Facility basis, as discussed above, and $34 million of other combined net decreases resulting primarily from the pre-tax losses incurred during the first six months of 2025 at the above-mentioned West Henderson Hospital and Cedar Hill Regional Medical Center.

Previous wording

The following tables show the amounts recorded at our acute care hospitals for charity care and uninsured discounts, based on charges at established rates, for the three-month periods ended March 31, 2025 and 2024:

Current wording

The following tables show the amounts recorded at our acute care hospitals for charity care and uninsured discounts, based on charges at established rates, for the three and six-month periods ended June 30, 2025 and 2024:

Previous wording

The following table sets forth certain operating statistics for our behavioral health care services for the three-month periods ended March 31, 2025 and 2024.

Current wording

The following table sets forth certain operating statistics for our behavioral health care services for the three and six-month periods ended June 30, 2025 and 2024.

Previous wording

Our Same Facility basis results reflected on the table below also excludes from net revenues and other operating expenses, provider tax assessments incurred in each period as discussed below Sources of Revenue-Summary of Various State Medicaid Supplemental Payment Programs. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table below under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the tables below since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with U.S. GAAP and as presented in the condensed consolidated financial statements and notes thereto as contained in this Quarterly Report on Form 10-Q.

Current wording

Our Same Facility basis results reflected on the table below also excludes from net revenues and other operating expenses, provider tax assessments incurred in each period as discussed below Sources of Revenue-Summary of Various State Medicaid Supplemental Payment Programs. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table below under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the tables below since the amounts offset between net revenues and other operating expenses. Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services’ results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year presentation. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with U.S. GAAP and as presented in the condensed consolidated financial statements and notes thereto as contained in this Quarterly Report on Form 10-Q.

Previous wording

The following table summarizes the results of operations for our behavioral health care facilities, on a Same Facility basis, and is used in the discussions below for the three-month periods ended March 31, 2025 and 2024 (dollar amounts in thousands):

Current wording

The following table summarizes the results of operations for our behavioral health care facilities, on a Same Facility basis, and is used in the discussions below for the three and six-month periods ended June 30, 2025 and 2024 (dollar amounts in thousands):