Behavioral Health Business October 25, 2024
Universal Health Services (NYSE: UHS) is enjoying robust behavioral health pricing, driven by negotiations with lower-paying payers.
Steve Filton, UHS’s chief financial officer, attributed historically high behavioral health pricing to the company’s ability to leverage higher rates from lower-paying payers, naming managed Medicaid payers specifically on the company’s Q3 earnings call Friday.
“In an environment where there’s not a great deal of excess capacity in the behavioral industry writ large, that’s been an effective strategy,” Filton said.
Despite effective payer negotiations, during which UHS is more likely to cancel contracts than receive inadequate rates, the King of Prussia, Pennsylvania-based provider anticipates that pricing will drop in the future.
“We’ve been suggesting for some time that payer pricing is likely to...
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