December 14, 2016 (Shareholders Foundation) - An investigation on behalf of investors of Universal Health Services, Inc. (NYSE:UHS) shares over potential securities laws violations by Universal Health Services and certain of its directors and officers in connection certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Universal Health Services, Inc. (NYSE:UHS) concerning whether a series of statements by Universal Health Services regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Universal Health Services, Inc. reported that its annual Total Revenue rose from over $8.2 billion in 2014 to over $9.04 billion in 2015 and that its Net Income increased from $545.34 million in 2014 to $680.53 million in 2015.
On December 7, 2016, a report was published detailing its investigation into Universal Health, which was based on interviews with 175 current and former UHS staff, including 18 executives who ran UHS hospitals; more than 120 additional interviews with patients, government investigators, and other experts; and a cache of internal documents. The report stated that [c]urrent and former employees from at least 10 UHS hospitals in nine states said they were under pressure to fill beds by almost any method which sometimes meant exaggerating peoples symptoms or twisting their words to make them seem suicidal and to hold them until their insurance payments ran out.
On December 8, 2016, Universal Health Services, Inc published a statement regarding the report and said that it disputes and denies the conclusions in the report.
Shares of Universal Health Services, Inc. (NYSE:UHS) declined from %127.94 per share on December 7, 2016 to as low as $99.72 per share on December 14, 2016.