Universal Health Services Accountable Care Organizations (ACOs) Drive Record Results, Saving Medicare $100 Million in 2024

Reno, NV (October 14, 2025) – Prominence Health is proud to announce the results of its 2024 Accountable Care Organization (ACO) performance, achieving over $100 million in savings for Medicare. This success also generated more than $75 million in shared earnings for 3,000 participating physicians, bringing the total Medicare savings to over $600 million since the first Universal Health Services (UHS) ACO was established in 2014.

“Prominence Health’s results are made possible by the dedication of physicians and providers who embrace value-based care every day,” said Kamal Jemmoua, CEO of Prominence Health. “We are building a future where healthcare quality and affordability go hand in hand, and this milestone underscores the importance of that mission.”

Prominence Health plays a critical role in Medicare’s value-based care initiatives by owning and operating several Medicare Shared Savings Program (MSSP) ACOs and participating in the ACO REACH (Accountable Care Organization Realizing Equity, Access, and Community Health) program. Within the MSSP, providers are incentivized to reduce costs and improve care quality through value-based contracts. These ACOs reward participating physicians for achieving predetermined financial and quality benchmarks, allowing them to share in the savings they generate for Medicare.

“As physicians, we see firsthand how value-based care allows us to spend more time focusing on what truly matters, our patients’ health,” said Dr. Robert Sanders of Texoma Clinical Partners ACO. “By aligning around shared goals, our team has created a system where patients benefit from higher quality care and Medicare benefits from lower costs.”

South Texas Clinical Partners (STCP) ACO, part of Prominence Health, also participates in the ACO REACH program, which takes value-based care a step further by emphasizing health equity and encouraging providers to take on financial risk. The program focuses on improving healthcare for underserved communities while maintaining financial sustainability.

Universal Health Services (UHS), through its subsidiary Prominence Health, sponsors ACOs that are physician-led and focused on primary care, often in collaboration with post-acute and specialty care providers. Depending on the ACO structure, UHS either wholly owns these ACOs or operates them through joint ventures with participating providers. UHS’s unique model integrates hospital resources with ACO operations, providing capital funding, tools for managing financial risk, and initiatives to reduce unnecessary hospital utilization.

UHS ACO Highlights

• Silver State ACO: Ranked #1 ACO in the state of Nevada for total savings at $21 million and for savings rate at 7% below the benchmark
• California Clinical Partners ACO: Ranked #1 ACO in the state of California for savings rate at 14% below the benchmark and ranked #5 ACO in the state of California for total savings at $42 million
• Texoma Clinical Partners: Ranked #3 in Texas and #7 nationally and for highest quality score at 97%

The Center for Medicare and Medicaid Services (CMS) established the ACO program to improve the quality of care for Medicare beneficiaries and lower Medicare costs. In 2024, ACOs in the Shared Savings Program earned shared savings payments (also known as performance payments) totaling $4.1 billion, the highest since the program’s inception more than 10 years ago.

About Prominence Health

Prominence Health is a value-based care organization bridging the gap between affiliated health systems and independent providers, building trust and collaboration between the two. Prominence Health creates value for populations and providers to strengthen integrated partnership, advance market opportunities, and improve outcomes for our patients and members. Founded in 1993, Prominence Health started as a health maintenance organization (HMO) and was acquired by a subsidiary of Universal Health Services, Inc. (UHS) in 2014. Prominence Health serves members, physicians, and health systems across Medicare, Medicare Advantage, Accountable Care Organizations, and commercial payer partnerships. For more information about Prominence Health, visit www.prominencehealth.com.

About Universal Health Services

One of the nation’s largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 300 corporation, our annual revenues during 2024 were approximately $15.8 billion. In 2025, UHS was again recognized as one of the World’s Most Admired Companies by Fortune; ranked #271 on the Fortune 500; and in 2024, ranked #399 among U.S. companies on Forbes Global 2000 World’s Largest Public Companies.

Our operating philosophy is as effective today as it was upon the Company’s founding in 1979, enabling us to provide compassionate care to our patients and their loved ones. Our strategy includes building or acquiring high quality hospitals in rapidly growing markets, investing in the people and equipment needed to allow each facility to thrive, and becoming the leading healthcare provider in each community we serve.

Headquartered in King of Prussia, PA, UHS has approximately 99,000 employees and through its subsidiaries operates 29 inpatient acute care hospitals, 331 inpatient behavioral health facilities, 60 outpatient and other facilities, an insurance offering, a physician network and various related services located in 39 U.S. States, Washington, D.C., Puerto Rico and the United Kingdom. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT).

Disclaimer Required by CMS

The statements contained in this press release are solely those of the authors and do not necessarily reflect the views or policies of CMS. The authors assume responsibility for the accuracy and completeness of the information contained in this document.