Dive Brief:
- Universal Health Services Inc. recently reported that its net income for the third quarter and year overall is down from the same time in 2013. The King of Prussia, PA-based provider has seen an increase in patient volume, but was hit by two large charges that dipped overall revenue.
- Third-quarter net income for the organization was $82.8 million, down from $114.6 in Q3 last year. Net income for the first three quarters of 2014 was $372.5 million, down from $382.6 million during the same period in 2013. One of its losses was a pre-tax charge of $44 million related to a $65-million legal settlement in 2009 alleging that the organization's subsidiary Psychiatric Solutions did not disclose information about violence at one of its hospitals. The other was a $36.2 million pre-tax charge resulting from previously outstanding debt of $250 million.
- Universal did have an increase in volume of insured patients. This helped boost the organization's operating revenue by 11% over the third quarter of 2013, to $2.02 billion.
Dive Insight:
As reports for 2014's third quarter have trickled in, it is clear that revenues are up across the board. Aetna and UnitedHealthcare both saw increased profits. Providers like UHS and LifePoint also have higher revenues, but have seen an increase in expenses that have dragged overall net income down. Not all had overall dips, however: The country's largest hospital chain, HCA, reported a 42% increase in net income in the third quarter and raised its projections for the year. It saw increased volumes, helping it reach $518 million in net income, up from $365 million during the third quarter of 2013.