(Reuters) -Universal Health Services ( UHS ) beat Wall Street estimates for third-quarter profit on Monday, driven by steady demand for medical care services at its hospitals, sending its shares surging 6% in extended trading.

Health insurers have flagged elevated demand and rising costs in individual Affordable Care Act, also known as Obamacare, and Medicaid plans for low-income individuals, trends that are expected to benefit hospital operators.

For the quarter ended September 30, the King of Prussia, Pennsylvania-based hospital operator reported an adjusted profit of $5.69 per share, beating estimates of $4.84 per share, according to LSEG data.

Last week, larger peer HCA Healthcare ( HCA ) also beat quarterly profit estimates, though it noted Medicaid volumes remained low and were offset by strength in its Medicare business.

UHS said its results included a $90 million pre-tax reimbursement tied to a newly approved Medicaid state-directed payment program in Washington, D.C. The payment covered services provided over the past year and was not part of its earlier forecast.

However, the company also took a $35 million pre-tax charge to increase reserves for self-insured liabilities due to unfavorable claims trends.

Same-facility adjusted admissions rose 2% at its acute care hospitals during the quarter, while admissions at behavioral healthcare facilities grew by 0.5%.

The company raised its 2025 revenue forecast to between $17.31 billion and $17.45 billion, up from its prior range of between $17.10 billion and $17.31 billion. Analysts, on average, expect 2025 revenue of $17.21 billion.

The company's board also authorized a $1.5 billion increase to its stock buyback plan.

(Reporting by Kamal Choudhury in Bengaluru; Editing by Anil D'Silva)