King of Prussia’s Universal Health Services is shifting focus away from mergers and acquisitions, reports Rylee Wilson for Becker’s Behavioral Health.
Instead, CFO Steve Filton says they are looking toward capital expenditures and share repurchases.
On an Oct. 25 investor call, Filton explained that while the company is regularly presented with M&A prospects, “not a great deal of those opportunities to be very compelling, although we will continue to look at them.”
In its third-quarter earnings report released Oct. 24, UHS disclosed a 10.5% revenue increase in its behavioral health segment compared to last year. UHS operates 332 behavioral health hospitals and is expanding in this area with several initiatives.
The company recently opened a 128-bed behavioral health hospital in Madera, Calif., and is developing a 96-bed joint venture with Trinity Health Michigan, scheduled to open in spring 2025. UHS is also growing its outpatient and substance use disorder treatment services to meet rising demand and investing in patient monitoring technology to enhance care and risk management.
Filton sees this technology as pivotal for improving quality care and efficiency within UHS’s behavioral health sector.
Read more about Universal Health Services’ refocused business strategy at Becker’s Behavioral Health.
