Universal Health Services (UHS) risk factors, FY2024 10-K

Risks Related to Business Operations

1. 01A significant portion of our revenue is produced by facilities located in Texas, Nevada and California
2. 02Our revenues and results of operations are significantly affected by payments received from the government and other third party payers
3. 03If we are not able to provide high quality medical care at a reasonable price, patients may choose to receive their health care from our competitors
4. 04An increase in uninsured and underinsured patients in our acute care facilities or the deterioration in the collectability of the accounts of such patients could harm our results of operations
5. 05Our hospitals face competition for patients from other hospitals and health care providers
6. 06We also operate health care facilities in the United Kingdom where the National Health Service (the “NHS”) is the principal provider of healthcare services. In addition to the NHS, we face competition in the United Kingdom from independent sector providers and other publicly funded entities for patients
7. 07Our performance depends on our ability to recruit and retain quality physicians
8. 08Continued increase in hospital based physician expenses will materially affect our costs and results of operations
9. 09If we do not continually enhance our hospitals with the most recent technological advances in diagnostic and surgical equipment, our ability to maintain and expand our markets will be adversely affected
10. 10We depend on the efforts, abilities, and experience of our medical support personnel, including our nurses, pharmacists and lab technicians and other healthcare professionals. We compete with other healthcare providers in recruiting and retaining qualified hospital management, nurses and other medical personnel
11. 11The failure of certain employers, or the closure of certain facilities, could have a disproportionate impact on our hospitals
12. 12The trend toward value-based purchasing may negatively impact our revenues
13. 13Controls designed to reduce inpatient services and increasing rates of “denials” may reduce our revenues
14. 14We depend heavily on key management personnel and the departure of one or more of our key executives or a significant portion of our local hospital management personnel could harm our business

Risks Related to the Regulatory Environment

1. 15Reductions or changes in Medicare and Medicaid funding could have a material adverse effect on our future results of operations
2. 16On March 23, 2010, President Obama signed into law the Legislation. Two primary goals of the Legislation are to provide for increased access to coverage for healthcare and to reduce healthcare-related expenses
3. 17We are required to treat patients with emergency medical conditions regardless of ability to pay
4. 18If we fail to continue to meet the promoting interoperability criteria related to electronic health record systems (“EHR”), our operations could be harmed
5. 19If we fail to comply with extensive laws and government regulations, we could suffer civil or criminal penalties or be required to make significant changes to our operations that could reduce our revenue and profitability
6. 20We are subject to occupational health, safety and other similar regulations and failure to comply with such regulations could harm our business and results of operations
7. 21We are subject to pending legal actions, purported stockholder class actions, governmental investigations and regulatory actions
8. 22Defending ourselves against the allegations in the lawsuits and governmental investigations, or similar matters and any related publicity, could potentially entail significant costs and could require significant attention from our management and our reputation could suffer significantly
9. 23If any of our existing health care facilities lose their accreditation or any of our new facilities fail to receive accreditation, such facilities could become ineligible to receive reimbursement under Medicare or Medicaid
10. 24State efforts to regulate the construction or expansion of health care facilities could impair our ability to expand
11. 25Changes U.S. and other countries’ trade policies and other factors beyond our control may adversely impact our business and operating results

Risks Related to Information Technology

1. 26A cyber security incident could cause a violation of HIPAA, breach of patient or other persons privacy, or other negative impacts

Risks Related to the Market Conditions and Liquidity

1. 27Our revenues and volume trends may be adversely affected by certain factors over which we have no control
2. 28A worsening of economic and employment conditions in the United States could materially affect our business and future results of operations
3. 29Continuing Inflationary Pressures continue to increase our operating costs and we may not be able to pass on increases in costs commensurate with these increases in costs
4. 30We continue to see rising costs in construction materials and labor. Such increased costs could have an adverse effect on the cash flow return on investment relating to our capital projects
5. 31The deterioration of credit and capital markets may adversely affect our access to sources of funding and we cannot be certain of the availability and terms of capital to fund the growth of our business when needed

Risks Related to Our Common Stock

1. 32The number of outstanding shares of our Class B Common Stock is subject to potential increases or decreases
2. 33The right to elect the majority of our Board of Directors and the majority of the general shareholder voting power resides with the holders of Class A and C Common Stock, the majority of which is owned by Alan B. Miller, Executive Chairman of our Board of Directors
3. 34As to matters other than the election of directors, our Restated Certificate of Incorporation provides that holders of Class A, Class B, Class C and Class D Common Stock all vote together as a single class, except as otherwise provided by law