Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2025

The following table shows the amounts recorded at our acute care hospitals for charity care and uninsured discounts, based on charges at established rates, for the years ended December 31, 2025, 2024 and 2023:


	(dollar amounts in thousands)
	2025					2024					2023
	Amount		%			Amount		%			Amount		%
Charity care	$	984,235		25	%	$	819,681		23	%	$	843,449		32	%
Uninsured discounts		2,964,840		75	%		2,677,026		77	%		1,792,493		68	%
Total uncompensated care	$	3,949,075		100	%	$	3,496,707		100	%	$	2,635,942		100	%

Estimated Cost of Providing Uncompensated Care

The estimated cost of providing uncompensated care, as reflected below, were based on a calculation which multiplied the percentage of operating expenses for our acute care hospitals to gross charges for those hospitals by the above-mentioned total uncompensated care amounts. The percentage of cost to gross charges is calculated based on the total operating expenses for our acute care facilities divided by gross patient service revenue for those facilities. An increase in the level of uninsured patients to our facilities and the resulting adverse trends in the adjustments to net revenues and uncompensated care provided could have a material unfavorable impact on our future operating results.


	(amounts in thousands)
	2025		2024		2023
Estimated cost of providing charity care	$	87,756	$	75,227	$	83,383
Estimated cost of providing uninsured discounts		264,349		245,687		177,206
Estimated cost of providing uncompensated care	$	352,105	$	320,914	$	260,589

Summary of Cash, Cash Equivalents and Restricted Cash Reported In Consolidated Statements of Cash Flows

Cash, cash equivalents, and restricted cash as reported in the consolidated statements of cash flows are presented separately on our consolidated balance sheets as follow:


	(amounts in thousands)
	2025		2024		2023
Cash and cash equivalents	$	137,797	$	125,983	$	119,439
Restricted cash (a)		133,525		98,769		95,031
Total cash, cash equivalents and restricted cash	$	271,322	$	224,752	$	214,470

           (a)Restricted cash is included in other assets on the accompanying consolidated balance sheets and consists of statutorily required capital reserves related to our commercial insurance subsidiary.
The fair value of our restricted cash was computed based upon quotes received from financial institutions. We consider these to be “level 1” in the fair value hierarchy as outlined in the authoritative guidance for disclosures in connection with financial securities.

Summary of Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill for the two years ended December 31, 2025 were as follows (in thousands):


	Acute Care Services		Behavioral Health Services			Total Consolidated
Balance, January 1, 2024	$	516,628	$	3,415,779		$	3,932,407
Goodwill acquired during the period		13,252		0			13,252
Goodwill divested during the period		0		(5,298	)		(5,298	)
Adjustments to goodwill (a)		0		(7,482	)		(7,482	)
Balance, December 31, 2024		529,880		3,402,999			3,932,879
Goodwill acquired during the period		0		21,786			21,786
Goodwill divested during the period		0		0			0
Adjustments to goodwill (a)		0		35,548			35,548
Balance, December 31, 2025	$	529,880	$	3,460,333		$	3,990,213

(a)

The changes in the Behavioral Health Services’ goodwill consist of foreign currency translation adjustments.

Summary of Net Intangible Assets

The following table shows the amounts recorded as net intangible assets for the years ended December 31, 2025 and 2024:


	(amounts in thousands)
	2025		2024
Medicare licenses (a)	$	57,226	$	57,226
Certificates of need		7,973		7,987
Contract relationships and other (net of $58,953 and $57,236 of accumulated amortization for 2025 and 2024, respectively)		10,677		11,060
Net Intangible Assets	$	75,876	$	76,273

(a) Indefinite lives.

Amounts Recognized in AOCI

The amounts recognized in AOCI for the three years ended December 31, 2025 were as follows (in thousands):


	Net Unrealized Gains (Losses) on Effective Cash Flow Hedges			Foreign Currency Translation Adjustment			Minimum Pension Liability			Total AOCI
Balance, January 1, 2023, net of income tax	$	(17	)	$	(4,255	)	$	(5,396	)	$	(9,668	)
2023 activity:
Pretax amount		0			15,271			4,166			19,437
Income tax effect		0			520			(1,000	)		(480	)
Change, net of income tax		0			15,791			3,166			18,957
Balance, January 1, 2024, net of income tax		(17	)		11,536			(2,230	)		9,289
2024 activity:
Pretax amount		17			(3,237	)		2,416			(804	)
Income tax effect		0			(704	)		(580	)		(1,284	)
Change, net of income tax		17			(3,941	)		1,836			(2,088	)
Balance, January 1, 2025, net of income tax		—			7,595			(394	)		7,201
2025 activity:
Pretax amount		0			37,841			3,015			40,856
Income tax effect		0			450			(724	)		(274	)
Change, net of income tax		0			38,291			2,291			40,582
Balance, December 31, 2025, net of income tax	$	—		$	45,886		$	1,897		$	47,783

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share, for the periods indicated (in thousands, except per share data):


	Twelve Months Ended December 31,
	2025			2024			2023
Basic and diluted:
Net Income	$	1,511,182		$	1,163,109		$	719,307
Less: Net (income) loss attributable to noncontrolling interest ("NCI")		(22,386	)		(21,012	)		(1,512	)
Less: Net income attributable to unvested restricted share grants		—			(50	)		(308	)
Net income attributable to UHS—basic and diluted	$	1,488,796		$	1,142,047		$	717,487
Basic earnings per share attributable to UHS:
Weighted average number of common shares—basic		63,581			66,554			69,321
Total basic earnings per share	$	23.42		$	17.16		$	10.35
Diluted earnings per share attributable to UHS:
Weighted average number of common shares		63,581			66,554			69,321
Net effect of dilutive stock options and grants based on the treasury stock method		881			1,342			804
Weighted average number of common shares and equivalents—diluted		64,462			67,896			70,125
Total diluted earnings per share	$	23.10		$	16.82		$	10.23

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

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+ Details

UNIVERSAL HEALTH SERVICES INC 10-K