Moving UHS' Uncertainty to High

We're moving our fair value uncertainty rating for Universal Health Systems UHS to high from medium. We're primarily concerned about the impact of the company's high operating leverage on its earnings in the event of admissions declines and bad-debt expense increases in a prolonged economic downturn. Higher copays and deductibles have made it more expensive for commercially insured patients to receive care and may deter cash-strapped patients from seeking treatment for non-life-threatening conditions. Commercially insured patients generate the highest revenue per patient for hospitals, and a decline in this base would hurt growth and profitability. All of the hospital operators we cover now have at least a high uncertainty rating.