NEW YORK, December 31, 2025, 13:23 ET — Regular session
- Universal Health Services shares fell about 2.8% in afternoon trading, underperforming hospital peers.
- An SEC filing detailed a renewed CEO employment agreement through early 2029 and updated compensation terms.
- Investors are looking ahead to the company’s next earnings update and 2026 outlook.
Universal Health Services, Inc. shares were down 2.75% at $218.87 in afternoon trading on Wednesday, extending losses as the hospital operator underperformed its peer group. The stock was down $6.19 from Tuesday’s close and touched $218.59 at the session low, with about 293,000 shares traded.
The move matters now because governance and pay disclosures can become a catalyst in thin year-end trading, when investors reassess leadership incentives and stewardship. Hospital operators also enter 2026 facing close scrutiny on costs, staffing and reimbursement — areas where execution can swing margins quickly.
UHS came into the final session of 2025 up about 24% for the year, leaving the stock more sensitive to headlines that can shift sentiment without changing near-term volumes. 1
In an 8-K filing — a form companies use to report significant events between quarterly reports — UHS said its compensation committee approved an amended and restated employment agreement for CEO Marc D. Miller, extending his term to January 1, 2029, with automatic one-year renewals unless either side opts out. The filing set Miller’s 2026 base salary at $1.575 million, a 5% increase over his 2025 base salary, and kept his target annual bonus opportunity at 150% of salary. It also described executive benefits including a company automobile and personal use of company fractionally owned aircraft, and said Miller would generally continue to receive cash compensation, long-term equity incentives and other benefits for the remainder of the term if the company terminates him without cause or otherwise breaches the agreement, with equity awards accelerating in certain cases. 2
UHS lagged hospital peers on the day. HCA Healthcare was down about 1.3% and Tenet Healthcare slipped about 0.7%, while the SPDR S&P 500 ETF was off about 0.3%.
Miller has recently framed 2026 as a year of continued expansion and investment. “Looking ahead, I’m excited to build on this momentum in 2026 and beyond,” he said in a Dec. 29 LinkedIn post cited by Becker’s Hospital Review, which also noted he pointed to facility growth plans and technology initiatives including work tied to Hippocratic AI and Oracle Health systems. 3
For investors, the focus is less the headline raise than how incentives and severance terms line up with operating performance. “Accelerated vesting” means stock awards that haven’t vested yet can become owned sooner, a feature investors often track because it can increase the cost of leadership changes.
Universal Health Services operates acute care hospitals and behavioral health facilities, making it sensitive to swings in patient volumes, staffing costs and government reimbursement. Those fundamentals tend to drive earnings more than one-off corporate actions, but governance disclosures can still influence short-term positioning.
The company last reported quarterly results in late October, when it topped profit estimates and raised its 2025 revenue forecast, supported in part by a Medicaid state-directed payment in Washington, D.C., while also flagging higher reserves for self-insured liabilities. 4
Next, investors will watch for UHS’s next earnings release and management’s 2026 outlook, along with any further disclosures tied to executive pay as proxy season approaches. Earnings calendars tracked by MarketBeat list an estimated report date of February 25, 2026, though the company has not confirmed a date. 5
