UNIVERSAL HEALTH SERVICES INC Revenue Disclosure
10) REVENUE RECOGNITION
We recognize revenue when services/goods have been provided to patients/customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Our estimate for amounts not expected to be collected based on historical experience will continue to be recognized as a reduction to net revenue. However, subsequent changes in estimate of collectability due to a change in the financial status of a payer, for example a bankruptcy, will be recognized as bad debt expense in operating charges.
The performance obligation is separately identifiable from other promises in the customer contract. As the performance obligations are met (i.e.: room, board, ancillary services, level of care), revenue is recognized based upon allocated transaction price. The transaction price is allocated to separate performance obligations based upon the relative standalone selling price. In instances where we determine there are multiple performance obligations across multiple months, the transaction price will be allocated by applying an estimated implicit and explicit rate to gross charges based on the separate performance obligations.
In assessing collectability, we have elected the portfolio approach. This portfolio approach is being used as we have large volume of similar contracts with similar classes of customers. We reasonably expect that the effect of applying a portfolio approach to a group of contracts would not differ materially from considering each contract separately. Management’s judgment to group the contracts by portfolio is based on the payment behavior expected in each portfolio category. As a result, aggregating all of the contracts (which are at the patient level) by the particular payer or group of payers, will result in the recognition of the same amount of revenue as applying the analysis at the individual patient level.
We group our revenues into categories based on payment behaviors. Each component has its own reimbursement structure which allows us to disaggregate the revenue into categories that share the nature and timing of payments. The other patient revenue consists primarily of self-pay, government-funded non-Medicaid, and other.
The following table disaggregates our revenue by major source for the years ended December 31, 2025, 2024 and 2023 (in thousands):
|
For the year ended December 31, 2025 |
|
||||||||||||||||||||||
|
Acute Care |
|
|
Behavioral Health |
|
|
Other |
|
|
Total |
|
|||||||||||||
Medicare |
$ |
1,538,151 |
|
|
15 |
% |
|
$ |
318,253 |
|
|
4 |
% |
|
|
|
|
$ |
1,856,404 |
|
|
11 |
% |
|
Managed Medicare |
|
1,658,864 |
|
|
17 |
% |
|
|
421,414 |
|
|
6 |
% |
|
|
|
|
|
2,080,278 |
|
|
12 |
% |
|
Medicaid |
|
1,337,579 |
|
|
13 |
% |
|
|
1,349,388 |
|
|
18 |
% |
|
|
|
|
|
2,686,967 |
|
|
15 |
% |
|
Managed Medicaid |
|
685,083 |
|
|
7 |
% |
|
|
1,797,518 |
|
|
24 |
% |
|
|
|
|
|
2,482,601 |
|
|
14 |
% |
|
Managed Care (HMO and PPOs) |
|
3,257,367 |
|
|
33 |
% |
|
|
1,644,729 |
|
|
22 |
% |
|
|
|
|
|
4,902,096 |
|
|
28 |
% |
|
UK Revenue |
|
0 |
|
|
0 |
% |
|
|
1,001,356 |
|
|
13 |
% |
|
|
|
|
|
1,001,356 |
|
|
6 |
% |
|
Other patient revenue and adjustments, net |
|
584,535 |
|
|
6 |
% |
|
|
655,743 |
|
|
9 |
% |
|
|
|
|
|
1,240,278 |
|
|
7 |
% |
|
Other non-patient revenue |
|
864,328 |
|
|
9 |
% |
|
|
237,099 |
|
|
3 |
% |
|
|
13,422 |
|
|
|
1,114,849 |
|
|
6 |
% |
Total Net Revenue |
$ |
9,925,907 |
|
|
100 |
% |
|
$ |
7,425,500 |
|
|
100 |
% |
|
$ |
13,422 |
|
|
$ |
17,364,829 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
For the year ended December 31, 2024 |
|
||||||||||||||||||||||
|
Acute Care |
|
|
Behavioral Health |
|
|
Other |
|
|
Total |
|
|||||||||||||
Medicare |
$ |
1,363,090 |
|
|
15 |
% |
|
$ |
306,035 |
|
|
4 |
% |
|
|
|
|
$ |
1,669,125 |
|
|
11 |
% |
|
Managed Medicare |
|
1,480,707 |
|
|
17 |
% |
|
|
403,198 |
|
|
6 |
% |
|
|
|
|
|
1,883,905 |
|
|
12 |
% |
|
Medicaid |
|
1,113,070 |
|
|
12 |
% |
|
|
1,138,960 |
|
|
17 |
% |
|
|
|
|
|
2,252,030 |
|
|
14 |
% |
|
Managed Medicaid |
|
626,352 |
|
|
7 |
% |
|
|
1,677,586 |
|
|
24 |
% |
|
|
|
|
|
2,303,938 |
|
|
15 |
% |
|
Managed Care (HMO and PPOs) |
|
2,865,515 |
|
|
32 |
% |
|
|
1,630,887 |
|
|
24 |
% |
|
|
|
|
|
4,496,402 |
|
|
28 |
% |
|
UK Revenue |
|
0 |
|
|
0 |
% |
|
|
880,148 |
|
|
13 |
% |
|
|
|
|
|
880,148 |
|
|
6 |
% |
|
Other patient revenue and adjustments, net |
|
499,420 |
|
|
6 |
% |
|
|
613,388 |
|
|
9 |
% |
|
|
|
|
|
1,112,808 |
|
|
7 |
% |
|
Other non-patient revenue |
|
996,134 |
|
|
11 |
% |
|
|
222,888 |
|
|
3 |
% |
|
|
10,557 |
|
|
|
1,229,579 |
|
|
8 |
% |
Total Net Revenue |
$ |
8,944,288 |
|
|
100 |
% |
|
$ |
6,873,090 |
|
|
100 |
% |
|
$ |
10,557 |
|
|
$ |
15,827,935 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
For the year ended December 31, 2023 |
|
||||||||||||||||||||||
|
Acute Care |
|
|
Behavioral Health |
|
|
Other |
|
|
Total |
|
|||||||||||||
Medicare |
$ |
1,297,084 |
|
|
16 |
% |
|
$ |
310,321 |
|
|
5 |
% |
|
|
|
|
$ |
1,607,405 |
|
|
11 |
% |
|
Managed Medicare |
|
1,368,284 |
|
|
17 |
% |
|
|
345,771 |
|
|
6 |
% |
|
|
|
|
|
1,714,055 |
|
|
12 |
% |
|
Medicaid |
|
638,986 |
|
|
8 |
% |
|
|
893,918 |
|
|
14 |
% |
|
|
|
|
|
1,532,904 |
|
|
11 |
% |
|
Managed Medicaid |
|
716,380 |
|
|
9 |
% |
|
|
1,574,281 |
|
|
25 |
% |
|
|
|
|
|
2,290,661 |
|
|
16 |
% |
|
Managed Care (HMO and PPOs) |
|
2,658,890 |
|
|
33 |
% |
|
|
1,552,304 |
|
|
25 |
% |
|
|
|
|
|
4,211,194 |
|
|
29 |
% |
|
UK Revenue |
|
0 |
|
|
0 |
% |
|
|
761,124 |
|
|
12 |
% |
|
|
|
|
|
761,124 |
|
|
5 |
% |
|
Other patient revenue and adjustments, net |
|
452,781 |
|
|
6 |
% |
|
|
528,422 |
|
|
9 |
% |
|
|
|
|
|
981,203 |
|
|
7 |
% |
|
Other non-patient revenue |
|
948,997 |
|
|
12 |
% |
|
|
224,780 |
|
|
4 |
% |
|
|
9,653 |
|
|
|
1,183,430 |
|
|
8 |
% |
Total Net Revenue |
$ |
8,081,402 |
|
|
100 |
% |
|
$ |
6,190,921 |
|
|
100 |
% |
|
$ |
9,653 |
|
|
$ |
14,281,976 |
|
|
100 |
% |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 27, 2023 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.