- Universal Health Services founder and four-decade CEO Alan Miller is stepping down as top executive at the King of Prussia, Pennsylvania-based system in January.
- Alan Miller will be replaced as CEO by his son, Marc Miller, who has served as president leading UHS' business operations, including its acute care and behavioral health divisions, since 2009.
- Miller founded UHS in 1979 with just six employees, eventually growing the venture into a massive international healthcare company with annual revenue of $11.4 billion last year. He is the longest-serving CEO in healthcare, and one of the highest paid.
UHS has turned into a formidable system under Alan Miller's tenure.
Today, UHS employs 90,000 people and operates almost 400 facilities in 37 states, Puerto Rico and the United Kingdom, including 26 acute care hospitals, 328 behavioral health facilities and 42 outpatient facilities and ambulatory care access points. The integrated system also sells health insurance and runs a physician network.
According to Statista, Miller is the second longest-serving CEO in the country, after Berkshire Hathaway leader Warren Buffet. In his 42-year tenure, Miller drove exponential growth and profitability for his shareholders: Both Fortune Magazine and The Wall Street Journal recognized UHS for having the highest return to shareholders — 38% — in the 10 years from 1990 to 2000. From 1995 to 2015, Miller achieved 3,715% total shareholder returns, per WSJ.
Last year, the 83-year-old executive made $24.47 million in compensation for his roles as chairman of the board and CEO, making him one of the highest-paid CEOs in healthcare. Miller's base salary is well above the 90th percentile of peer and industry groups, per annual proxy statements filed with the U.S. Securities and Exchange Commission. UHS' ratio of CEO pay to median worker compensation is 629:1.
Before founding UHS, Miller was CEO of American Medicorp Inc., a hospital management company.
UHS leadership applauded Miller's record in a statement on his departure and pledged to continue growing and improving on UHS in the future. As per the longstanding succession plan, the elder Miller will be replaced by his son, Marc, who's worn many hats in his more than 25 years at UHS.
Prior to being promoted to president, the younger Miller was SVP of UHS and ran the company's acute care division, which makes up about half the company's total revenue, since 2007. He was named VP in 2004, and previously served in management positions at various UHS hospitals from 1999 to 2003, including eastern region vice president of the acute care division, assistant administrator of The George Washington University Hospital in Washington, D.C. and chief operating officer of Wellington Regional Medical Center in West Palm Beach, Florida.
Marc Miller, who is also on the board of group purchasing organization Premier, earned his Master of Business Administration degree from the University of Pennsylvania's Wharton School and his bachelor's degree from the University of Vermont.
The elder Miller will stay on as executive chairman of UHS' board. He will also keep running the Universal Health Realty Income Trust, a real estate investment trust with 71 investments across 20 states. He founded the company in 1986.
Like other operators, UHS has struggled during the coronavirus pandemic, facing lower patient volumes and rising expenses in the second quarter. However, the system still managed net income of $252 million, up slightly on a year-over-year basis, mostly due to congressional bailout funds. UHS continues to withhold earnings guidance, citing ongoing public health and financial uncertainty.
Also this year, the integrated system paid $122 million to the U.S. Department of Justice to settle a yearslong investigation into alleged billing fraud at its behavioral health facilities.