Universal Health Services, Inc.

session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Darren Larrick, Vice President of Investor Relations. Please go ahead.

Good morning and welcome to Universal Health Services third quarter 2025 earnings conference call. I'm Darren Larix, Vice President of Investor Relations. With me this morning are our President and CEO, Mark Miller, and our Chief Financial Officer, Steve Filton. Mark and Steve will provide some prepared remarks, and then we'll open it up to Q&A. During today's conference call, we will be using words such as believes, expects, anticipates, estimates, and similar words that represent forecasts, projections, and forward-looking statements. For anyone not familiar with the risks and uncertainties inherent in these forward-looking statements, we recommend a careful reading of the section on risk factors and forward-looking statements and risk factors in our Form 10-K for the year ended December 31, 2024, and our Form 10-Q for the quarter ended June 30, 2025. In addition, we may reference during today's call measures such as EBITDA, adjusted EBITDA, adjusted EBITDA net of NCI, and adjusted net income attributable to UHS, which are non-GAAP financial measures. Information and reconciliations of these non-GAAP financial measures to net income attributable to UHS can be found in today's press release. With that, let me now turn it over to Mark Miller for some introductory remarks.

Thank you, Darren. Good morning, everybody. Thank you for your interest in UHS. I also want to take this opportunity to welcome down to the UHS team. We look forward to having him in a dedicated investor relations function for our company. Turning to our third quarter 2025 results, we reported adjusted net income attributable to UHS of $5.69 per share, representing a 53% increase from the third quarter of 2024. Revenue growth for the third quarter of 2025 was 13.4% year over year. Our third quarter performance reflects continued growth in our acute care operating environment, modest volume improvement in our behavioral health segment, and solid pricing across both segments. The third quarter included $90 million of net benefit from the recently approved supplemental Medicaid program in the District of Columbia. Steve will cover the details of this approval and other supplemental Medicaid program updates. Based on our operational performance year to date and the increased supplemental reimbursement in the District of Columbia, offset somewhat by additional professional and general liability reserves, we are increasing the midpoint of our 2025 adjusted EPS guidance by 6% to $21.80 per diluted share from $20.50 per diluted share previously. During the quarter, we experienced progress in our two most recent acute care hospital openings, West Henderson Hospital in Henderson, Nevada, and Cedar Hill Regional Medical Center in Washington, D.C. Specific to Cedar Hill, we achieved accreditation in early September. As a result, the financial drag from our certification timing delay and startup issues began to subside during the third quarter. and we expect to exit this year at break even or better, putting us in a stronger position at this facility heading into 2026. We believe the long-term outlook for Cedar Hill remains favorable due to demand for services and strong support within the community, as well as our longstanding presence in the district at the George Washington University Hospital. Our next de novo acute care hospital opening will be the Allen B. Miller Medical Center in Palm Beach Gardens, slated for the spring of 2026. This project remains on track and we are encouraged by significant interest in the new medical campus by members of the community and the healthcare professionals that serve patients within this fast-growing market. We have a long track record of expanding presence in core markets with new state-of-the-art hospitals and are excited to build on our existing presence on the east coast of Florida. Separate from these new hospital projects, we've also been active on the outpatient side within our acute care segment, where we operate 45 outpatient access points, including freestanding emergency departments, surgery centers, and other ambulatory services. On a year-to-date basis, we've opened four freestanding EDs, bringing our total to 34, And we believe our FDD strategy is highly complimentary to our acute care operations by allowing us to capture incremental higher acuity outpatient volume within our markets. Within our behavioral health segment, we've taken a disciplined approach to new bed capacity growth, which has allowed us to focus on the highest potential expansion and de novo projects while we increasingly devote resources to accelerate our outpatient behavioral strategy. On the outpatient side of our behavioral segment, we operate approximately 100 access points, including step-down programs closely aligned with inpatient and residential operations, as well as step-in programs that allow us to reach patients in convenient community settings. We are on track to open 10 of these step-in programs this year under local brands, as well as our new Thousand Branches Wellness brand in a model that supports outpatient services through both virtual and in-person settings. Our strategies are designed to accelerate our outpatient growth rate, diversify our payer mix, and allow us to be the provider of choice within a behavioral marketplace that continues to have strong demand across the continuum. The behavioral healthcare we provide serves an important need within the healthcare system and our society more broadly. With that, I will now turn the call over to Steve Filton for a financial review of the third quarter.