On an Oct. 25 call with investors, transcribed by Seeking Alpha, Mr. Filton said the company is likely to focus on putting its capital toward expenditures and share repurchases.
We often comment that we are presented with [M&A] opportunities reasonably regularly,” Mr. Filton said. “We have found, if you look at the last five, seven years, not a great deal of those opportunities to be very compelling, although we will continue to look at them.”
The company reported its third-quarter earnings Oct. 24. Net revenues in the company’s behavioral health segment increased 10.5% compared to the third quarter of 2023.
King of Prussia, Pa.-based UHS operates 332 behavioral health hospitals.
Here are three things to note about the company’s behavioral health strategy:
- 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. The hospital is expected to open in spring 2025, Mr. Filton said.
- UHS is expanding its outpatient and substance use disorder treatment services in response to growing demand, Mr. Filton said.
- The company is investing in patient monitoring technology to help staff observe patients more efficiently, Mr. Filton said.
“I think that’s going to be a significant development that will help in the behavioral business in a great many ways in terms of quality of patient care and risk management in the next few years,” he said.