UHS CFO: New Nevada hospital causing ‘cannibalization’ of nearby facilities – Becker’s Hospital Review | Healthcare News

King of Prussia, Pa.-based Universal Health Services on Dec. 3 opened a 150-bed acute care hospital in Nevada that has had a certain “cannibalization impact” on the division’s same facility volumes and revenues in 2025, CFO Steve Filton said during the company’s second-quarter earnings call on July 29. 

The newly opened West Henderson (Nev.) Hospital is drawing patients away from other UHS facilities in the region, redistributing rather than expanding overall patient volume, according to Mr. Filton.

“We look at the zip codes that West Henderson is getting patients from and try and triangulate … the likely zip codes that prior to West Henderson opening would have gone to either Henderson Hospital or one of our other hospitals,” Mr. Filton said. 

UHS estimates that this shift accounts for a decline of 50 to 60 basis points in adjusted admissions at existing hospitals. The revenue drag is about the same. Mr. Filton offered a “best guess” of a 0.5% to 0.6% reduction, stemming from patients now going to the new hospital rather than other UHS facilities.

“Still, same facility net revenues in our acute care hospital segment increased by 5.7% during the second quarter of 2025 as compared to last year’s second quarter, after excluding the impact of our insurance subsidiary,” Mr. Filton said. 

Mr. Filton also offered a broader update on the Nevada market — particularly Las Vegas — where UHS operates several hospitals.

“We’ve seen a little bit of slowdown in our Nevada volume. There’s been a great deal written in recent months about the overall economy and Las Vegas economy slowing down a bit. We’re seeing some impact from that,” He said. “But as I said, even if you exclude the cannibalization from West Henderson, or just exclude West Henderson ER volume, our overall ER volumes are up slightly, but not by a great deal. [Las] Vegas’s performance was very solid, and while Henderson’s performance is extremely positive, we are seeing a little bit of pressure from some of the economic softness in the market.”