King of Prussia, Pa.-based Universal Health Services on Dec. 3 opened a 150-bed acute care hospital in Nevada that has had a certain “cannibalization impact” on the division’s same facility volumes and revenues in 2025, CFO Steve Filton said during the company’s second-quarter earnings call on July 29.
“The ZIP codes that West Henderson is getting patients from, these are the likely ZIP codes that prior to West Henderson opening would have gone to either Henderson Hospital or one of our other hospitals,” Mr. Filton said.
UHS estimates that this shift accounts for a decline of 50 to 60 basis points in adjusted admissions at existing hospitals. The revenue drag is about the same. Mr. Filton offered a “best guess” of a 0.5% to 0.6% reduction, stemming from patients now going to the new hospital rather than other UHS facilities.
“Still, same facility net revenues in our acute care hospital segment increased by 5.7% during the second quarter of 2025 as compared to last year’s second quarter, after excluding the impact of our insurance subsidiary,” Mr. Filton said.
Mr. Filton also offered a broader update on the Nevada market — particularly Las Vegas — where UHS operates several hospitals.
“We’ve seen a little bit of slowdown in our Nevada volumes. There’s been a great deal written in recent months about the overall Nevada economy and the Las Vegas economy slowing down a bit. We’re seeing some impact from that,” he said. “But as I said, even if you exclude the cannibalization from West Henderson or just exclude West Henderson’s ER volumes, like our overall ER volumes are up slightly, not by a great deal. Vegas’ performance while still very solid and while West Henderson’s performance is extremely positive, we are seeing a little bit of pressure from some of the economic softness in the market.”
Marc Miller, president and CEO, of UHS, added that the company is “pleased with the performance of West Henderson Hospital, which produced a positive EBITDA in the second quarter.”
