- Universal Health Services reported net income of $226.1 million for the second quarter of 2018, up from $185.4 million in the same period a year ago.
- Net revenue climbed 2.6% to $2.68 billion, versus $2.61 billion in Q2 2017, according to financial documents released Thursday by the King of Prussia, Pennsylvania-based hospital chain.
- Adjusted admissions at UHS’ 26 acute care hospitals increased 1.9%, while adjusted patient days were up 4.7%. Net revenue per adjusted admission and adjusted patient days grew by 3.1% and 0.4%, respectively. On a same-facility basis, net revenues showed 3.3% growth.
The Q2 results beat some expectations, and the health system seems to have a relatively stable outlook. Fitch Ratings recently said UHS should continue to have a "strong competitive position and market leading access to capital offset by higher leverage.”
Behavioral healthcare facilities saw somewhat slower growth, with adjusted admissions up 1.2% and adjusted patient days down 0.3%. Net revenue grew 2% and 3.6%, respectively, and 2.8% on a same-facility basis, compared with the prior year.
During the quarter, UHS added $9.5 million to the reserve created in connection with a Department of Justice investigation involving the company’s behavioral health business. During the first six months of 2018, the company recorded a pre-tax increase of about $12 million, bringing the total pre-tax reserve to about $43 million.
Future changes to the reserve are possible as discussions with DOJ are ongoing, but UHS Chief Financial Officer Steve Filton said during a Thursday earnings call that the company hopes to arrive at a final agreement by year’s end. “The process of offers and counter offers and demands and counter demands continues,” he said.
The for-profit chain reported $438.8 million EBITDA for the quarter, up slightly from $438.3 million in the second quarter of 2017.
Half-year net income was $499.9 million on net revenue of $5.37 billion. That compares with $391.4 million and $5.23 billion in the first six months of 2017.
Other providers are also posting positive financials for the quarter. HCA Healthcare reported $11.5 billion in revenue, up 7.4% from $10.7 billion in the same period a year ago. Total reported admissions grew 4.5%, while same facility admissions and same facility revenue per equivalent admission rose 2.7% and 3.6%, respectively.