BUZZ - Global medical services company’s shares fall due to warning on Medicaid program impact

October 27 - ** Universal Health Services (UHS.N) shares fell 5% in after-hours trading to $168.5

** UHS warned that changes to Medicaid programs could have a significant impact on its future operating results

** The company said the new Medicaid eligibility requirements are expected to reduce enrollment and spending, which will lower revenues and increase uncompensated care in its facilities

** The company said higher borrowing costs have led to increased interest expenses and reduced free cash flow; if interest rates rise further, this could adversely affect future performance and cash flow

** According to LSEG-compiled data, the company's adjusted earnings per share for the third quarter were $5.22, higher than analysts' expectations of $5.16

** The report said third-quarter revenue was $4.73 billion, above the expected $4.71 billion

** Additionally, larger peer HCA Healthcare (HCA.N) also said that due to reduced Medicaid payments and an increase in uninsured patients, its profits will be flat in 2027 ((link))

** UHS shares have fallen 18.6% year-to-date

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