Company: UHS
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000950170-25-105857
Chunk: 11

Company: UNIVERSAL HEALTH SERVICES INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 11
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 and 2024, respectively.In addition, certain of our officers and directors are also officers and/or directors of the Trust. Management believes that it has the ability to exercise significant influence over the Trust, therefore we account for our investment in the Trust using the equity method of accounting.Our pre-tax share of income from the Trust was approximately $268,000 and $314,000 during the three-month periods ended June 30, 2025 and 2024, respectively, and approximately $568,000 and $614,000 during the six-month periods ended June 30, 2025 and 2024, respectively, and is included in other income (expense), net, on the accompanying condensed consolidated statements of income for each period. We received dividends from the Trust amounting to $583,000 and $575,000 during the three-month periods ended June 30, 2025 and 2024, respectively, and $1.2 million and $1.1 million during the six-month periods ended June 30, 2025 and 2024, respectively. The carrying value of our investment in the Trust was $5.2 million and $5.8 million at June 30, 2025 and December 31, 2024, respectively, and is included in other assets in the accompanying condensed consolidated balance sheets. The market value of our investment in the Trust was $31.5 million at June 30, 2025 and $29.3 million at December 31, 2024, based on the closing price of the Trust’s stock on the respective dates.The Trust commenced operations in 1986 by purchasing certain hospital properties from us and immediately leasing the properties back to our respective subsidiaries. The base rents are paid monthly and the bonus rents, which effective as of January 1, 2022 are applicable only to McAllen Medical Center, are computed and paid on a quarterly basis, based upon a computation that compares current quarter revenue to a corresponding quarter in the base year. The leases with those subsidiaries are unconditionally guaranteed by us and are cross-defaulted with one another.The aggregate rent payable to the Trust in connection with the leases on McAllen Medical Center, Wellington Regional Medical Center, Aiken Regional Medical Center and Canyon Creek Behavioral Health was approximately $5 million during each of the three-month periods ended June 30, 2025 and 2024 and approximately $11 million during each of the six-month periods ended June 30, 2025 and 2024. In connection