Universal Health Services, Inc.

Robbins Arroyo LLP: Universal Health Services, Inc. (UHS) Misled Shareholders According to a Recently Filed Lawsuit

Robbins Arroyo LLP announces that a lawsuit was filed against Universal Health Services, Inc. (NYSE: UHS) in the U.S. District Court for the Central District of California. The complaint is brought on behalf of all purchasers of Universal Health securities between February 26, 2015 and December 7, 2016, for alleged violations of the Securities Exchange Act of 1934 by Universal Health’s officers and directors. Universal Health, through its subsidiaries, owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers.

Universal Health Accused of Implementing Ineffective Internal Controls

According to the complaint, Universal Health submitted a series of filings with the U.S. Securities and Exchange Commission attesting to the accuracy of financial reporting, the disclosure of any material changes to the company’s internal controls over financial reporting, and the disclosure of all fraud. The company’s filings detailed the various commitments the company abides by in order to achieve “long-term results” for investors, including: service excellence, ethical and fair treatment, and continuous improvement in measurable ways. In addition, Universal Health stated that it has “a comprehensive ethics and compliance program that is designed to meet or exceed applicable federal guidelines and industry standards” and that it believes it complies with applicable government regulations.

However, the complaint alleges that Universal Health officials failed to disclose that: (1) Universal Health admitted patients based on its own financial considerations and not upon the medical necessity of the patient; (2) Universal Health would keep patients admitted until their insurance payments ran out in order to ensure the maximum payment for its services; (3) as a result, Universal Health’s revenue from inpatient care relied on unsustainable practices; and (4) in turn, Universal Health lacked effective internal control concerning its practices and policies of admitting patients. On December 7, 2016, BuzzFeed published a report stating that current and former Universal Health employees were under pressure to fill beds by almost any method. The report specified, “scores of employees from at least a dozen [Universal Health] hospitals said those facilities tried to keep beds filled even at the expense of the safety of their staff or the rights of the patients they were locking up.” The report also quoted a former employee who stated that this was a “common practice” that was openly discussed in regional conferences and phone calls with hospital executives. On this news, Universal Health stock fell $15.01 per share, or nearly 12%, to close at $111.36 per share on December 7, 2016.

Universal Health Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.


Shareholder Information

Items marked with an asterisk (*) are required information.

First Name * Last Name *
Phone *
E-mail * Confirm: E-mail *
Number of Shares Owned:

Please Note: Neither the submission to nor the receipt of information by Robbins Arroyo LLP or one of its attorneys through this website constitutes an agreement by our firm to represent the individual and does not create an attorney-client relationship. Please do not send confidential or sensitive information through this website. This information should be communicated through a direct contact with an individual at the firm.

* I have read the disclaimer information

    Send This Post