- Universal Health Services saw its net income climb 8.7% to $224 million in the first quarter of 2018, up from $206 million a year earlier.
- Net revenue was $2.7 billion, a 2.9% increase over $2.6 billion in the first quarter of 2017.
- The King of Prussia, PA-based for-profit hospital chain reported adjusted admissions at its more than 26 acute care hospitals grew 2.3%, while adjusted patient days increased 5.4% compared with a year ago. Net revenue on a same facility basis increased 3.7% versus the prior year.
Behavioral health facilities at UHS also fared well, with adjusted admissions and adjusted patient days up 1.6% and 0.4%, respectively. Same facility net revenue climbed 3% during the quarter, compared with the same period in 2017.
During the quarter, UHS pumped $13 million into a reserve created in connection with a Department of Justice fraud investigation involving its behavioral health business, raising the total reserve to $35 million. The company noted discussions with DOJ continue and could result in future changes in the reserve.
The system reported $442 million EBITDA for the quarter, down from $460 million last year.
UHS’ results show some health systems are making a profit in the face of a changing ecosystem.
"Acute care hospitals and health systems with medical & surgical beds see the economics of capital spending in favor of acute care procedures & services as more attractive than behavioral, though it does not yet appear to be driving a large amount of outsourcing to free standing behavioral facilities players such as UHS & ACHC, while regulatory pressures persist," Leerink Research's Ana Gupte wrote prior to UHS releasing its results.
Among others seeing a healthy upswing is Adventist Health, which reported net income of $229.8 million in fiscal year 2017, up from $169.1 million the previous year. Revenue climbed 5.8% to $4.1 billion versus $3.9 billion in 2016. Mayo Clinic, UPMC and Geisinger Health System also saw financials increase over comparable periods in the prior year.