# UHS Sees $175 Million to $200 Million Medicaid Supplemental Payment Headwind in 2027 By John Kim Canonical URL: https://www.tokenpost.com/news/business/43041 Published: 2026-10-28T23:08:54.000Z Updated: 2026-10-28T23:08:54.000Z Section: Business > The estimate includes a $10 million fourth-quarter impact from OB3 funding cuts. UHS kept its 2026 outlook, with adjusted EBITDA expected near the low end of its range. Universal Health Services expects Medicaid supplemental payments to weigh $175 million to $200 million on 2027 results, as some directed-payment amounts recorded in 2026 cover earlier periods. UHS Chief Financial Officer Steve Filton gave the estimate during the company’s Oct. 28 earnings call. “As it relates to Medicaid supplemental payments, we estimate the 2027 headwind will be approximately $175 million to $200 million,” Filton said. The estimate covers directed-payment programs in Florida, Nevada, Ohio, California and Washington, D.C. It also includes an expected $10 million impact in the fourth quarter of 2027 from the initial provider-tax portion of OB3 funding cuts. The estimate applies to supplemental payments; it is not UHS’ comprehensive financial outlook for 2027. Filton said UHS plans to provide comprehensive guidance for 2027 in February. That guidance will follow the payment estimate, which reflects amounts recorded in 2026 for earlier periods alongside the expected fourth-quarter impact from the provider-tax portion of the funding cuts. UHS reaffirmed its 2026 outlook. The company projects adjusted earnings before interest, taxes, depreciation and amortization, net of noncontrolling interests, of $2.610 billion to $2.717 billion and expects the result to land toward the lower end of that range. Its revenue forecast is $18.501 billion to $18.762 billion, while adjusted earnings per share are projected at $22.28 to $23.65. For the quarter ended Sept. 30, adjusted EBITDA net of noncontrolling interests was $624.6 million, compared with $670.6 million in the year-earlier quarter. Revenue increased 5.3% to $4.733 billion. The earnings call began at 8 a.m. ET (12:00 UTC) on Oct. 28, after UHS released its third-quarter results. A [preview of the quarterly report]() ran before the release. Filton said the company’s comprehensive 2027 guidance is due in February. ## Links in this article - [preview of the quarterly report](https://www.tokenpost.com/news/business/41753)