UNIVERSAL HEALTH SERVICES INC

Previous wording

As of June 30, 2026, we owned and/or operated 376 inpatient facilities and 168 outpatient and other facilities located in 40 states, Washington, D.C., the United Kingdom and Puerto Rico.

Current wording

As of September 30, 2026, we owned and/or operated 418 inpatient facilities and 169 outpatient and other facilities located in 40 states, Washington, D.C., the United Kingdom, Ireland and Puerto Rico.

Previous wording

On March 9, 2026, we announced that we entered into a definitive agreement to acquire Talkspace, Inc. ("Talkspace") for $5.25 per share, or approximately $835 million in the aggregate. The transaction was approved by Talkspace's stockholders during the second quarter of 2026. The transaction is expected to close during the third quarter of 2026 and is subject to satisfaction of regulatory approvals and other customary closing conditions. Talkspace is a virtual behavioral healthcare company, with a network of approximately 6,000 licensed professionals that serve all 50 states, Washington, D.C., and Puerto Rico. We intend to finance the acquisition of Talkspace with additional borrowings pursuant to our Credit Agreement, as amended in April, 2026, as discussed in Note 4 – Treasury - Credit Facilities and Outstanding Debt Securities.

Current wording

In addition, in August, 2026, we completed our acquisition of Talkspace, Inc. ("Talkspace"), a virtual behavioral healthcare company, with a network of approximately 6,000 licensed professionals that serve all 50 states, Washington, D.C., and Puerto Rico.

Previous wording

35 free-standing emergency departments, and;

Current wording

36 free-standing emergency departments, and;

Previous wording

13 outpatient centers & 1 surgical hospital.

Current wording

12 outpatient centers & 1 surgical hospital.

Previous wording

In July 2026, we acquired 39 residential and community homes and 2 facilities that provide day services located in Ireland for a net purchase price of approximately $188 million.

Current wording

2 facilities that provide day services.

Previous 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, 2026 and 2025, and 57% of our consolidated net revenues during each of the six-month periods ended June 30, 2026 and 2025. 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, 2026 and 2025, and 43% of our consolidated net revenues during each of the six-month periods ended June 30, 2026 and 2025.

Current wording

Net revenues from our acute care hospitals, outpatient facilities and commercial health insurer accounted for 58% and 59% of our consolidated net revenues during the three-month periods ended September 30, 2026 and 2025, respectively, and 58% and 57% of our consolidated net revenues during the nine-month periods ended September 30, 2026 and 2025, respectively. Net revenues from our behavioral health care facilities and commercial health insurer accounted for 42% and 41% of our consolidated net revenues during the three-month periods ended September 30, 2026 and 2025, respectively, and 42% and 43% of our consolidated net revenues during the nine-month periods ended September 30, 2026 and 2025, respectively.

Previous wording

Our behavioral health care facilities located in the U.K. generated net revenues of approximately $269 million and $247 million during the three-month periods ended June 30, 2026 and 2025, respectively, and $530 million and $474 million during the six-month periods ended June 30, 2026 and 2025, respectively. Total assets at our U.K. behavioral health care facilities were approximately $1.530 billion as of June 30, 2026 and $1.531 billion as of December 31, 2025.

Current wording

Our behavioral health care facilities located in the U.K. and Ireland generated net revenues of approximately $299 million and $264 million during the three-month periods ended September 30, 2026 and 2025, respectively, and $829 million and $738 million during the nine-month periods ended September 30, 2026 and 2025, respectively. Total assets at our behavioral health care facilities located in the U.K and Ireland were approximately $1.745 billion as of September 30, 2026 and $1.531 billion as of December 31, 2025.

Previous wording

You should carefully review the information contained in this Quarterly Report and should particularly consider any risk factors that we set forth in our Annual Report on Form 10-K for the year ended December 31, 2025, this Quarterly Report and in other reports or documents that we file from time to time with the Securities and Exchange Commission (the “SEC”). In this Quarterly Report, we state our beliefs of future events and of our future financial performance. This Quarterly Report contains “forward-looking statements” that reflect our current estimates, expectations and projections about our future results, performance, prospects and opportunities. Forward-looking statements include, among other things, the information concerning our possible future results of operations, business and growth strategies, financing plans, expectations that regulatory developments or other matters will or will not have a material adverse effect on our business or financial condition, our competitive position and the effects of competition, the projected growth of the industry in which we operate, and the benefits and synergies to be obtained from our completed and any future acquisitions, and statements of our goals and objectives, and other similar expressions concerning matters that are not historical facts. Words such as “may,” “will,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “appears,” “projects” and similar expressions, as well as statements in future tense, identify forward-looking statements. In evaluating those statements, you should specifically consider various factors, including the risks related to healthcare industry trends and those set forth in Part 1, Item 1A. Risk Factorsand Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Forward Looking Statements and Risk Factorsin our

Current wording

You should carefully review the information contained in this Quarterly Report and should particularly consider any risk factors that we set forth in our Annual Report on Form 10-K for the year ended December 31, 2025, this Quarterly Report and in other reports or documents that we file from time to time with the Securities and Exchange Commission (the “SEC”). In this Quarterly Report, we state our beliefs of future events and of our future financial performance. This Quarterly Report contains “forward-looking statements” that reflect our current estimates, expectations and projections about our future results, performance, prospects and opportunities. Forward-looking statements include, among other things, the information concerning our possible future results of operations, business and growth strategies, financing plans, expectations that regulatory developments or other matters will or will not have a material adverse effect on our business or financial condition, our competitive position and the effects of competition, the projected growth of the industry in which we operate, and the benefits and synergies to be obtained from our completed and any future acquisitions, and statements of our goals and objectives, and other similar expressions concerning matters that are not historical facts. Words such as “may,” “will,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “appears,” “projects” and similar expressions, as well as statements in future tense, identify forward-looking statements. In evaluating those statements, you should specifically consider various factors, including the risks related to healthcare industry trends and those set forth in Part 1, Item 1A. Risk Factorsand Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Forward Looking Statements and Risk Factorsin our Annual Report on Form 10-K for the year ended December 31, 2025 and in Part II, Item 1A. Risk Factors and Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Forward Looking Statements and Risk Factors, as included herein. Those factors may cause our actual results to differ materially from any of our forward-looking statements.

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, Texas, Nevada, Florida, Washington, D.C., Illinois, Pennsylvania, Kentucky, Mississippi, Virginia, Michigan, Massachusetts, Tennessee, Arizona, Ohio, and Washington. 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;

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, Washington, D.C., Florida, Illinois, Pennsylvania, Kentucky, Virginia, Michigan, Mississippi, Massachusetts, Tennessee, Arizona, and Washington. 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

the increase in interest rates during the past few years has increased our interest expense significantly, increasing our expenses and reducing our free cash flow and our ability to access the capital markets on favorable terms. As such, the effects of increased borrowing rates have adversely impacted our results of operations, financial condition and cash flows. We cannot predict future changes to interest rates, however, significant increases in our borrowing rates could have a material unfavorable impact on our future results of operations. Our $700 million, 1.65% senior notes ("2026 Notes") mature on September 1, 2026. Market interest rates have increased significantly since the 2026 Notes were issued in 2021. We expect that we will refinance the 2026 Notes at significantly higher interest rates which will significantly increase our interest expense thereby decreasing our net income attributable to UHS;

Current wording

the increase in interest rates during the past few years has increased our interest expense significantly, increasing our expenses and reducing our free cash flow and our ability to access the capital markets on favorable terms. As such, the effects of increased borrowing rates have adversely impacted our results of operations, financial condition and cash flows. We cannot predict future changes to interest rates, however, significant increases in our borrowing rates could have a material unfavorable impact on our future results of operations. Our $700 million, 1.65% senior notes ("2026 Notes") matured on September 1, 2026. Since market interest rates have increased significantly since the 2026 Notes were issued (in 2021), our interest expense has increased significantly as a result of the maturity and refinancing of the 2026 Notes. In August 2026, we completed the public offering of: (i) $600 million, 5.500% senior notes due in 2031, and; (ii) $500 million, 6.000% senior notes due in 2036.

Previous wording

as of early August 2026, Congress has enacted appropriations funding most federal agencies for fiscal year 2026. In the past several years political disputes concerning authorization of a federal budget have led to shutdown of substantial portions of the federal government and other federal budget authorization delays have occurred. Federal budget delays and federal government shutdowns are unpredictable and may occur in the future. We cannot predict whether or not there will be future appropriations legislation avoiding a federal government shutdown, however, our operating cash flows and results of operations could be materially unfavorably impacted by a federal government shutdown;

Current wording

on September 2, 2026, the Continuing Appropriations and Extensions Act, 2027 was enacted, providing temporary funding for federal government operations through December 11, 2026. Full-year appropriations for fiscal year 2027 have not yet been enacted, and uncertainty remains regarding the timing of their enactment and the levels of funding that will ultimately be appropriated. If additional appropriations legislation or another continuing resolution is not enacted before the current funding expires, a lapse in appropriations could result in a partial or broader federal government shutdown. In the past several years political disputes concerning authorization of a federal budget have led to a shutdown of substantial portions of the federal government and other federal budget authorization delays have occurred. Federal budget delays and federal government shutdowns are unpredictable and may occur in the future. We cannot predict whether or not there will be future appropriations legislation avoiding a federal government shutdown, however, our operating cash flows and results of operations could be materially unfavorably impacted by a federal government shutdown.

Previous wording

the outcome of known and unknown litigation, government investigations, civil investigative demands, 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, as disclosed in Note 6 to the Condensed Consolidated Financial Statements - Commitments and Contingencies, including, but not limited to, the jury verdict returned against Cumberland Hospital for Children and Adolescents located in New Kent, Virginia, an indirect subsidiary of ours;

Current wording

the outcome of known and unknown litigation, government investigations, civil investigative demands, 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, as disclosed in Note 6 to the Condensed Consolidated Financial Statements - Commitments and Contingencies.

Previous wording

challenges, disruptions and costs of closing, integrating the business and achieving anticipated synergies, or that such synergies will take longer to realize than expected; failure to retain key employees of Talkspace during the period prior to closing or thereafter; failure to retain a significant portion of Talkspace’s providers or relationships with payors, risks that the merger and other transactions contemplated by the merger agreement disrupt current plans and operations that may harm the parties’ businesses or divert management’s attention from the parties’ ongoing business operations; and the amount of any costs, fees, expenses, impairments and charges related to the merger including costs and use of capital related to financing the merger;

Current wording

in August 2026, we completed the acquisition of Talkspace for a net purchase price of approximately $820 million. Our ability to realize the unanticipated benefits of the acquisition is subject to numerous risks and uncertainties including: integrating the business and achieving the anticipated synergies; the risk that such synergies may take longer to realize than expected; failure to retain key employees of Talkspace; failure to retain a significant portion of Talkspace’s providers or relationships with payers; the risk that the integration disrupts current plans and operations in a manner that harms our business or diverts management’s attention from ongoing business operations; and the amount of any costs, fees, expenses, impairments and charges related to the acquisition including the cost and use of capital related to financing the acquisition.

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, and;

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 and Ireland. 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.

Previous wording

Legislation adopted on July 4, 2025 attaches work and community service requirements to eligibility for Medicaid benefits that will have the effect of limiting Medicaid enrollment and expenditures and the legislation also places limits on provider taxes used to increase federal Medicaid funding to states. In addition, insurance exchange subsidies expired on December 31, 2025 which has unfavorably impacted insurance exchange enrollment and has increased the level of uncompensated care that we provide. As these provisions become effective over the next several years, they may be expected to reduce our revenues and likely further increase the level of uncompensated care provided by our facilities. Please see Sources of Revenue below for additional disclosure related to Medicaid supplemental payment programs in various states in which we operate.

Current wording

Legislation adopted on July 4, 2025 attaches work and community service requirements to eligibility for Medicaid benefits that, effective January 1, 2027, will have the effect of limiting Medicaid enrollment and expenditures. The legislation also places limits on provider taxes used to increase federal Medicaid funding to states. In addition, insurance exchange subsidies expired on December 31, 2025 which has unfavorably impacted insurance exchange enrollment and has increased the level of uncompensated care that we provide. As these provisions become effective over the next several years, they may be expected to reduce our revenues and likely further increase the level of uncompensated care provided by our facilities. Please see Sources of Revenue below for additional disclosure related to Medicaid supplemental payment programs in various states in which we operate.

Previous wording

Net revenues increased by 8.3%, or $354 million, to $4.638 billion during the three-month period ended June 30, 2026, as compared to $4.284 billion during the second quarter of 2025. The net increase was primarily attributable to: (i) a $322 million, or 7.8%, 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 $32 million, consisting of primarily of a $47 million increase in provider tax assessments (which had no impact on income before income taxes since the amounts offset between net revenues and other operating expenses).

Current wording

Net revenues increased by 5.3%, or $238 million, to $4.733 billion during the three-month period ended September 30, 2026, as compared to $4.495 billion during the third quarter of 2025. The net increase was primarily attributable to: (i) a $189 million, or 4.4%, 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 $49 million which includes the revenues generated during the third quarter of 2026 from our recent acquisitions (Talkspace and the behavioral health care facilities located in Ireland) and an increase in provider tax assessments (which had no impact on income before income taxes since the amounts offset between net revenues and other operating expenses).

Previous wording

Income before income taxes (before income attributable to noncontrolling interests) increased by $6 million, or 1%, to $479 million during the three-month period ended June 30, 2026 as compared to $473 million during the second quarter of 2025. The net increase was due to:

Current wording

Income before income taxes (before income attributable to noncontrolling interests) decreased by $83 million, or 17%, to $414 million during the three-month period ended September 30, 2026 as compared to $497 million during the third quarter of 2025. The net decrease was due to:

Previous wording

a decrease of $1 million at our acute care facilities, as discussed below in Acute Care Hospital Services;

Current wording

a decrease of $17 million at our acute care facilities, as discussed below in Acute Care Hospital Services;

Previous wording

an increase of $42 million at our behavioral health care facilities, as discussed below in Behavioral Health Care Services, and;

Current wording

a decrease of $29 million at our behavioral health care facilities, as discussed below in Behavioral Health Care Services;

Previous wording

a $3 million increase due to a decrease in income attributable to noncontrolling interests, and;

Current wording

a $2 million increase due to a decrease in income attributable to noncontrolling interests, and;

Previous wording

Financial results for the six-month periods ended June 30, 2026 and 2025:

Current wording

Financial results for the nine-month periods ended September 30, 2026 and 2025:

Previous wording

The following table summarizes our results of operations and is used in the discussion below for the six-month periods ended June 30, 2026 and 2025 (dollar amounts in thousands):

Current wording

The following table summarizes our results of operations and is used in the discussion below for the nine-month periods ended September 30, 2026 and 2025 (dollar amounts in thousands):

Previous wording

Income before income taxes (before income attributable to noncontrolling interests) increased by $54 million, or 6%, to $948 million during the six-month period ended June 30, 2026 as compared to $894 million during the first six months of 2025. The net increase was due to:

Current wording

Income before income taxes (before income attributable to noncontrolling interests) decreased by $29 million, or 2%, to $1.362 billion during the nine-month period ended September 30, 2026 as compared to $1.391 billion during the first nine months of 2025. The net decrease was due to:

Previous wording

an increase of $24 million at our acute care facilities, as discussed below in Acute Care Hospital Services;

Current wording

an increase of $7 million at our acute care facilities, as discussed below in Acute Care Hospital Services;

Previous wording

an increase of $15 million at our behavioral health care facilities, as discussed below in Behavioral Health Care Services, and;

Current wording

an increase of $12 million at our behavioral health care facilities, as discussed below in Behavioral Health Care Services;

Previous wording

a $12 million other combined net decrease.

Current wording

a $14 million other combined net decrease.

Previous wording

As a result of unfavorable trends experienced, included in our results of operations was an increase to our reserves for self-insured professional and general liability claims amounting to $28 million during each of the three and six-month periods ended June 30, 2026. Approximately $17 million of the increase is included in our same facility basis acute care hospital services' results during each of the three and six-month periods ended June 30, 2026, and approximately $11 million is included in our same facility basis behavioral health services' results during each of the three and six-month periods ended June 30, 2026. There were no adjustments recorded to our reserves for self-insured professional and general liability claims during the first six months of 2025.

Current wording

During each of the three and nine-month periods ended September 30, 2025, we recorded a $35 million increase to our reserves for self-insured professional and general liability claims. Approximately $22 million of the increase is included in our same facility basis acute care hospital services' results during each of the three and nine-month periods ended September 30, 2025, and approximately $13 million is included in our same facility basis behavioral health services' results during each of the three and nine-month periods ended September 30, 2025.

Previous 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, 2026 and 2025.

Current wording

The following table sets forth certain operating statistics for our acute care hospital services for the three and nine-month periods ended September 30, 2026 and 2025.

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 and six-month periods ended June 30, 2026 and 2025 (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 nine-month periods ended September 30, 2026 and 2025 (dollar amounts in thousands):

Previous wording

Income before income taxes (and before income attributable to noncontrolling interests) increased by $17 million, or 7%, amounting to $246 million, or 9.8% of net revenues during the second quarter of 2026, as compared to $229 million, or 9.9% of net revenues during the second quarter of 2025.

Current wording

Income before income taxes (and before income attributable to noncontrolling interests) decreased by $17 million, or 5.3%, amounting to $302 million, or 11.6% of net revenues during the third quarter of 2026, as compared to $319 million, or 12.8% of net revenues during the third quarter of 2025.

Previous wording

During the three-month period ended June 30, 2026, net revenue per adjusted admission increased by 3.0% while net revenue per adjusted patient day increased 2.8%, as compared to the comparable quarter of 2025. During the three-month period ended June 30, 2026, as compared to the comparable prior year quarter, inpatient admissions to our acute care hospitals increased by 1.5% while adjusted admissions (adjusted for outpatient activity) increased by 2.9%. Patient days at these facilities increased by 1.7% and adjusted patient days increased by 3.1% during the three-month period ended June 30, 2026, as compared to the comparable prior year quarter. The average length of inpatient stay at these facilities was 4.7 days during each of the three-month periods ended June 30, 2026 and 2025, respectively. The occupancy rate, based on the average available beds at these facilities, was 64% and 65% during the three-month periods ended June 30, 2026 and 2025, respectively.

Current wording

During the three-month period ended September 30, 2026, as compared to the comparable prior year quarter, inpatient admissions to our acute care hospitals increased by 3.9% while adjusted admissions (adjusted for outpatient activity) increased by 4.9%. Patient days at these facilities increased by 4.0% and adjusted patient days increased by 4.9% during the three-month period ended September 30, 2026, as compared to the comparable prior year quarter. The average length of inpatient stay at these facilities was 4.7 days during each of the three-month periods ended September 30, 2026 and 2025. The occupancy rate, based on the average available beds at these facilities, was 65% and 64% during the three-month periods ended September 30, 2026 and 2025, respectively.

Previous wording

On a Same Facility basis, during the three-month period ended June 30, 2026, as compared to the comparable quarter of 2025, salaries, wages and benefits expense increased by $53 million, or 5.7% due, in part, to the increased patient volumes. As a percentage of net revenues, salaries, wages and benefits expense decreased to 39.5% during the second quarter of 2026 as compared to 40.5% during the second quarter of 2025.

Current wording

On a Same Facility basis, during the three-month period ended September 30, 2026, as compared to the comparable quarter of 2025, salaries, wages and benefits expense increased by $71 million, or 7.3% due primarily to inflationary adjustments as well as increased staffing levels resulting from the increased patient volumes experienced during the third quarter of 2026. As a percentage of net revenues, salaries, wages and benefits expense increased to 40.0% during the third quarter of 2026 as compared to 39.1% during the third quarter of 2025.

Previous wording

Other operating expenses increased by $107 million, or 15.9%, during the second quarter of 2026, as compared to the comparable quarter of 2025. Operating expenses incurred by our commercial health insurer, consisting primarily of medical costs, increased by $53 million, or 30.6% (due to an increase in membership), during the second quarter of 2026, as compared to the comparable quarter of 2025. Excluding the operating costs of our commercial insurer from each period, other operating expenses increased by $54 million, or 10.8%. Contributing to the increased operating expenses during the second quarter of 2026, as compared to the comparable quarter of 2025, was a $22 million, or 12.4%, aggregate increase in physician expenses incurred at certain hospitals. Also contributing to the increased operating expenses during the second quarter of 2026, as compared to the comparable quarter of 2025, was $17 million of expense recorded in connection with an increase to our reserves for self-insured professional and general liability claims, as discussed above in Adjustments to self-insured professional and general liability reserves. As a percentage of net revenues, other operating expenses increased to 31.1% during the second quarter of 2026, as compared to 29.0% during the comparable quarter of 2025.

Current wording

Other operating expenses increased by $54 million, or 7.4%, during the third quarter of 2026, as compared to the comparable quarter of 2025. Operating expenses incurred by our commercial health insurer, consisting primarily of medical costs, increased by $40 million, or 23.1% (due to an increase in membership), during the third quarter of 2026, as compared to the comparable quarter of 2025. Excluding the operating costs of our commercial insurer from each period, other operating expenses increased by $14 million, or 2.5%. As a percentage of net revenues, other operating expenses increased to 29.7% during the third quarter of 2026, as compared to 29.0% during the comparable quarter of 2025.

Previous wording

Supplies expense increased by $1 million, or 0.3%, during the second quarter of 2026, as compared to the comparable quarter of 2025. As a percentage of net revenues, supplies expense decreased to 14.4% during the three-month period ended June 30, 2026, as compared to 15.6% during the second quarter of 2025.

Current wording

Supplies expense increased by $9 million, or 2.6%, during the third quarter of 2026, as compared to the comparable quarter of 2025. As a percentage of net revenues, supplies expense decreased to 13.9% during the three-month period ended September 30, 2026, as compared to 14.2% during the third quarter of 2025.

Previous wording

During the six-month period ended June 30, 2026, net revenue per adjusted admission increased by 4.6% while net revenue per adjusted patient day increased by 4.2%, as compared to the comparable period of 2025. During the six-month period ended June 30, 2026, as compared to the comparable prior year period, inpatient admissions to our acute care hospitals were unchanged while adjusted admissions increased by 1.4%. Patient days at these facilities increased by 0.4% and adjusted patient days increased by 1.9% during the six-month period ended June 30, 2026, as compared to the comparable prior year period. The average length of inpatient stay at these facilities was 4.8 days during each of the six-month periods ended June 30, 2026 and 2025, respectively. The occupancy rate, based on the average available beds at these facilities, was 67% during each of the six-month periods ended June 30, 2026 and 2025, respectively.

Current wording

During the nine-month period ended September 30, 2026, net revenue per adjusted admission increased by 2.4% while net revenue per adjusted patient day increased by 2.1%, as compared to the comparable period of 2025. During the nine-month period ended September 30, 2026, as compared to the comparable prior year period, inpatient admissions to our acute care hospitals increased by 1.3% while adjusted admissions increased by 2.6%. Patient days at these facilities increased by 1.6% and adjusted patient days increased by 2.9% during the nine-month period ended September 30, 2026, as compared to the comparable prior year period. The average length of inpatient stay at these facilities was 4.8 days during each of the nine-month periods ended September 30, 2026 and 2025. The occupancy rate, based on the average available beds at these facilities, was 66% during each of the nine-month periods ended September 30, 2026 and 2025.

Previous wording

On a Same Facility basis, during the six-month period ended June 30, 2026, as compared to the comparable period of 2025, salaries, wages and benefits expense increased by $92 million, or 5.0%. As a percentage of net revenues, salaries, wages and benefits expense decreased to 39.1% during the first six months of 2026 as compared to 40.3% during the comparable period of 2025.

Current wording

On a Same Facility basis, during the nine-month period ended September 30, 2026, as compared to the comparable period of 2025, salaries, wages and benefits expense increased by $163 million, or 5.8%. As a percentage of net revenues, salaries, wages and benefits expense decreased to 39.4% during the first nine months of 2026 as compared to 39.8% during the comparable period of 2025.

Previous wording

Other operating expenses increased by $196 million, or 15.0%, during the first six months of 2026, as compared to the comparable period of 2025. Operating expenses incurred by our commercial health insurer, consisting primarily of medical costs, increased by $98 million, or 29.1% (due to an increase in membership), during the first six months of 2026 as compared to the comparable period of 2025. Excluding the operating costs of our commercial insurer from each period, other operating expenses increased by $98 million, or 10.1%. Contributing to the increased operating expenses during the first six months of 2026, as compared to the comparable period of 2025, was a $43 million, or 12.4%, aggregate increase in physician expenses incurred at certain hospitals. As a percentage of net revenues, other operating expenses increased to 30.3% during the first six months of 2026, as compared to 28.5% during the comparable period of 2025.

Current wording

Other operating expenses increased by $250 million, or 12.3%, during the first nine months of 2026, as compared to the comparable period of 2025. Operating expenses incurred by our commercial health insurer, consisting primarily of medical costs, increased by $138 million, or 27.1% (due to an increase in membership), during the first nine months of 2026 as compared to the comparable period of 2025. Excluding the operating costs of our commercial insurer from each period, other operating expenses increased by $112 million, or 7.4%. Contributing to the increased operating expenses during the first nine months of 2026, as compared to the comparable period of 2025, was a $48 million, or 9.0%, aggregate increase in physician expenses incurred at certain hospitals. As a percentage of net revenues, other operating expenses increased to 30.1% during the first nine months of 2026, as compared to 28.7% during the comparable period of 2025.

Previous wording

Supplies expense increased by $18 million, or 2.5%, during the first six months of 2026, as compared to the comparable period of 2025. As a percentage of net revenues, supplies expense decreased to 14.6% during the six-month period ended June 30, 2026, as compared to 15.4% during the first six months of 2025.

Current wording

Supplies expense increased by $27 million, or 2.5%, during the first nine months of 2026, as compared to the comparable period of 2025. As a percentage of net revenues, supplies expense decreased to 14.4% during the nine-month period ended September 30, 2026, as compared to 15.0% during the first nine months of 2025.

Previous 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, 2026 and 2025. 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.

Current wording

The following table summarizes the results of operations for all our acute care operations during the three and nine-month periods ended September 30, 2026 and 2025. 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 June 30, 2026, as compared to the comparable prior year quarter, net revenues from our acute care hospital services increased by $206 million, or 8.6%, due to: (i) the $189 million, or 8.2% increase in Same Facility revenues, as discussed above, and; (ii) an other combined net increase of $17 million consisting of increased provider tax assessments.

Current wording

During the three-month period ended September 30, 2026, as compared to the comparable prior year quarter, net revenues from our acute care hospital services increased by $134 million, or 5.1%, due to: (i) the $118 million, or 4.7% increase in Same Facility revenues, as discussed above, and; (ii) an other combined net increase of $16 million consisting of increased provider tax assessments and the revenues generated during the third quarter of 2026 at a newly constructed acute care hospital located in Palm Beach Gardens, FL, that was completed and opened in May 2026.