Skip to main content

The plot thickens at

Universal Health Services

(UHS) - Get Universal Health Services, Inc. Class B Report


One week after the company dismissed its chief financial officer over an unusual dispute with its auditor, UHS said the

TheStreet Recommends

Securities and Exchange Commission

would like some more information on the incident. The firing sparked a selloff in the company's stock and also took a toll on shares of other hospital operators.

The CFO, Kirk Gorman, had apparently determined that KPMG should sign a representative letter, similar to those signed by the company itself, attesting to the accuracy of complex calculations in Universal's financial statements.

According to a company statement, the SEC's Philadelphia district office of the Securities and Exchange Commission has initiated an informal inquiry into the Gorman's departure, a probe with which the company will "fully cooperate."

The shares were selling off again in the premarket, losing 8% on Instinet to $35.50.