Universal Health Services (UHS) Goldman Sachs 47th Annual Global Healthcare Conference 2026 summary

Volume and demand trends

• Acute volume growth for 2026 is expected in the 2%-3% range, with Q1 volumes at the low end after adjusting for flu and weather.

• Significant Acute capacity was added in Q2, including 178 beds across three projects in Florida, Las Vegas, and California, expected to ramp quickly.

• Cedar Hill Hospital in Washington, D.C. is expected to see higher volumes and earnings in the second half of the year.

• Outpatient growth is emphasized, with plans to double or triple the number of ASCs and expand freestanding emergency departments.

Margin outlook and headwinds

• Acute margins have nearly recovered to pre-COVID targets, reaching 15.8% on a same-store basis in 2025.

• New headwinds include the end of exchange subsidies, Medicaid work requirements, and supplemental payment reductions starting in 2028.

• Technology and AI investments are expected to offset some margin pressures, with 50 basis points of revenue per unit improvement in 2025.

AI and productivity initiatives

• Over two dozen AI projects are active, including ER coding, denials management, and intake process automation.

• AI-generated denial appeal letters and post-discharge calls have improved labor productivity and patient satisfaction.

• AI is used to project and manage patient length of stay in real time, aiming for further reductions.

• Labor productivity and efficiency gains are expected to be key multi-year margin drivers.