Universal Health Services, Inc.

Good day and thank you for standing by. Welcome to the Q2 2026 Universal Health Services Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To answer your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Darren Lyric. Please go ahead.

Thank you. Good morning and welcome to Universal Health Services' second quarter 2026 earnings conference call. I'm Darren Lyric, Vice President of Investor Relations. With me this morning are our President and CEO, Marc Miller, and our Chief Financial Officer, Steve Filton. Marc and Steve will provide some prepared remarks and then we will open it up for 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. Form 10-K for the year ended December 31, 2025, and Reform 10-Q for the quarter ended March 31, 2026. 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 yesterday's press release and our supplemental materials on our website. With that, let me now turn it over to Marc for some introductory remarks.

Thanks, Darren. Good morning and thank you for joining today's call. I'm pleased to share some operational and strategic highlights from the second quarter before Steve discusses financial highlights. Overall, our second quarter of 2026 featured a rebound in acute care volumes, behavioral health volumes, that were consistent with recent trends, continued expense management, and exchange trends that progressed in line with our expectations. During the quarter, we also benefited from the approval of the Florida DPP program for 2025, which was not contemplated in our original outlook. From an operational perspective, I want to highlight the investments we are making. to expand capacity in the communities that we serve. We continue to see favorable demand trends across our markets, supporting confidence in the long-term need for capacity in both inpatient and outpatient service lines in our acute care and behavioral health segments, allowing us to extend our footprint with access points that are convenient to our patients and help further align us with physician stakeholders. In acute care, we added 177 licensed beds in three hospitals during the second quarter. These new beds represent a 2.5% increase to our same facility bed capacity and position us to respond to strong demand in these communities. In May, we officially opened the Alan B. Miller Medical Center in Palm Beach Gardens, Florida. And we are very pleased to have achieved Joint Commission accreditation for the Stenovo Hospital in July, reflecting sound execution by our local team. We've experienced a strong reception from the Palm Beach Gardens community and are excited to serve this fast-growing area of Florida with the newest and one of the most advanced medical campuses in the region. Within our behavioral health segments, we continue to make strong progress in our integration planning for the pending Talkspace acquisition. which we expect to close in mid-August of this year. Talkspace represents not only a unique opportunity for us to accelerate our presence in the outpatient market, but also creates the nation's first end-to-end continuum of behavioral healthcare services, from acute inpatient and residential services, inpatient, in-person outpatient care, and soon with Talkspace, virtual services nationally. As Steve will detail shortly, we've increased our professional and general liability reserves and now assume higher anticipated operating losses at our de novo hospital in Washington, D.C., as well as San Diego, I'm sorry, San Antonio, Texas Behavioral Hospital that we're in the process of recertifying in order to reestablish much needed mental health services capacity in that region of Texas. Accountability and delivery of high quality care are at the core of our purpose. We are deeply committed to excellence and to addressing any instances that fall short. Overall, the broad portfolio continues to perform well operationally and clinically, and we have a 46-year track record of strong quality and safety performance across both our behavioral health and acute care divisions. Before passing it over to Steve, I want to make a brief comment about our share repurchase activity during the second quarter, which accelerated to $320 million as compared to $127 million in the first quarter of 2026. The recent dislocation in our share price represents a compelling opportunity to deploy capital and retire UHS shares at heavily discounted levels. Given the strength of our balance sheet and the confidence we have in our ability to generate cash flow, we intend to remain highly active with our share repurchase program at these levels. In closing, I want to thank the UHS team for their focus on quality ability to adapt in such a dynamic 2026 operating environment. I want to emphasize that our strategy remains steadfast to invest in high growth markets, expand access to care, operate efficiently, and create long-term value for patients, employees and shareholders. I remain very optimistic about our long-term outlook given the quality and strength of our portfolio, the experience of our management team and the underlying demand characteristics of the markets that we serve. With that, I'll now turn the call over to Steve Filton for more details on the quarter.