UHID Universal Health Service Inc (PK)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 24, 2024

 

UNIVERSAL HEALTH SERVICES, INC.

(Exact name of registrant as specified in its charter)

Delaware		1-10765		23-2077891
(State or other jurisdiction of		(Commission		(I.R.S. Employer
Incorporation or Organization)		File Number)		Identification No.)

UNIVERSAL CORPORATE CENTER

367 SOUTH GULPH ROAD

KING OF PRUSSIA, Pennsylvania 19406

(Address of principal executive office) (Zip Code)

Registrant’s telephone number, including area code (610) 768-3300

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class B Common Stock	UHS	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

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Item 2.02 Results of Operations and Financial Condition

On April 24, 2024, Universal Health Services, Inc. issued the press release attached hereto as Exhibit 99.1.

 

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

 

99.1		Universal Health Services, Inc., press release, dated April 24, 2024.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

Exhibit Index

Exhibit No.		Exhibit
99.1		Universal Health Services, Inc., press release, dated April 24, 2024.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Universal Health Services, Inc.
By:		/s/ Steve Filton
Name: Steve Filton
Title: Executive Vice President and             Chief Financial Officer

Date: April 25, 2024

 

 

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Exhibit 99.1

FOR IMMEDIATE RELEASE

April 24, 2024

 

CONTACT:	Steve Filton
	Chief Financial Officer
	610-768-3300

 

 

UNIVERSAL HEALTH SERVICES, INC.

ANNOUNCES 2024 FIRST QUARTER FINANCIAL RESULTS

 

Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended March 31, 2024 and 2023:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $261.8 million, or $3.82 per diluted share, during the first quarter of 2024, as compared to $163.1 million, or $2.28 per diluted share, during the first quarter of 2023. Net revenues increased by 10.8% to $3.844 billion during the first quarter of 2024, as compared to $3.468 billion during the first quarter of 2023.

As reflected on the Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”), our adjusted net income attributable to UHS during the first quarter of 2024 was $253.1 million, or $3.70 per diluted share, as compared to $167.6 million, or $2.34 per diluted share, during the first quarter of 2023.

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2024 were: (i) a favorable after-tax impact of $9.2 million, or $.13 per diluted share, resulting from the tax benefit recorded in connection with employee share-based payments (pursuant to “ASU 2016-09”, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting), and; (ii) an unrealized after-tax loss of $0.4 million, or $.01 per diluted share ($0.6 million pre-tax), resulting from a decrease in the market value of certain equity securities (included in “Other (income) expense, net”). Our reported results during the first quarter of 2023 included an unrealized after-tax loss of $4.5 million, or $.06 per diluted share, ($5.8 million pre-tax) resulting from a decrease in the market value of certain equity securities.

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization (“EBITDA net of NCI”, NCI is net income attributable to noncontrolling interests), was $525.9 million during the first quarter of 2024, as compared to $407.3 million during the first quarter of 2023. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was $525.8 million during the first quarter of 2024, as compared to $421.1 million during the first quarter of 2023.

Acute Care Services – Three-month periods ended March 31, 2024 and 2023:

During the first quarter of 2024, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased by 4.5% while adjusted patient days increased by 3.4%, as compared to the first quarter of 2023. At these facilities, during the first quarter of 2024, net revenue per adjusted admission increased by 4.6% while net revenue per adjusted patient day increased by 5.8%, as compared to the first quarter of 2023. Net revenues generated from our acute care services, on a same facility basis, increased by 9.6% during the first quarter of 2024, as compared to the first quarter of 2023.

Behavioral Health Care Services – Three-month periods ended March 31, 2024 and 2023:

During the first quarter of 2024, at our behavioral health care facilities on a same facility basis, adjusted admissions decreased by 0.8% while adjusted patient days increased by 2.0%, as compared to the first quarter of 2023. At these facilities, during the first quarter of 2024, net revenue per adjusted admission increased by 11.2% and net revenue per adjusted patient day increased by 8.2%, as compared to the first quarter of 2023. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 10.4% during the first quarter of 2024, as compared to the first quarter of 2023.

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Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

During the three-month period ended March 31, 2024, our net cash provided by operating activities was $396 million as compared to $291 million during the first three months of 2023. The $106 million net increase in our net cash provided by operating activities consisted of: (i) a favorable change of $98 million resulting from an increase in net income plus/minus depreciation and amortization expense, stock-based compensation expense and gains on sales of assets and businesses; (ii) a favorable change of $86 million in other working capital accounts due primarily to the timing of disbursements for other accrued liabilities; (iii) an unfavorable change of $59 million in accounts receivable; (iv) an unfavorable change of $45 million in other assets and deferred charges, and; (v) $26 million of other combined net favorable changes.

Liquidity:

As of March 31, 2024, we had $733 million of aggregate available borrowing capacity pursuant to our $1.2 billion revolving credit facility, net of outstanding borrowings and letters of credit.

Stock Repurchase Program:

Pursuant to the terms of our stock repurchase program, shares of our Class B Common Stock may be repurchased, from time to time as conditions allow, on the open market or in negotiated private transactions. During the first quarter of 2024, we have repurchased 700,000 shares at an aggregate cost of approximately $125.1 million (approximately $179 per share) pursuant to the program. As of March 31, 2024, we had an aggregate available repurchase authorization of approximately $298 million.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on April 25, 2024. A live webcast of the call will be available on our website at www.uhs.com. To participate via telephone, please register in advance at this link.

Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the call will be available for one full year following the live call.

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

One of the nation’s largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. (the “Company”) has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues during 2023 were $14.282 billion. UHS ranked #311 on the Fortune 500; and #434 on Forbes’ list of America’s Largest Public Companies. UHS was again recognized as one of the World’s Most Admired Companies by Fortune.

Our operating philosophy is as effective today as it was upon the Company’s founding in 1979, enabling us to provide compassionate care to our patients and their loved ones. Our strategy includes building or acquiring high quality hospitals in rapidly growing markets, investing in the people and equipment needed to allow each facility to thrive, and becoming the leading healthcare provider in each community we serve.

Headquartered in King of Prussia, PA, UHS has approximately 96,700 employees and, through its subsidiaries, operates 27 inpatient acute care hospitals, 333 inpatient behavioral health facilities, 48 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 39 states, Washington, D.C., the United Kingdom and Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT). For additional information visit www.uhs.com.

This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended

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December 31, 2023), may cause the results to differ materially from those anticipated in the forward-looking statements. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management’s view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Many of the factors that could affect our future results are beyond our control or ability to predict, including, but not limited to:

We believe that adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and Adjusted EBITDA net of NCI, which are non-GAAP financial measures (“GAAP” is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect of material items impacting our net income attributable to UHS, such as, changes in the market value of shares of certain equity securities, the impact of ASU 2016-09 and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income attributable to UHS, as determined in accordance with GAAP, and as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2023. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.

(more)

 

 

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Universal Health Services, Inc.
Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
		Three months
		ended March 31,
		2024				2023
Net revenues		$	3,843,582				3,467,518
Operating charges:
Salaries, wages and benefits			1,842,624				1,753,335
Other operating expenses			1,032,170				878,951
Supplies expense			403,573				379,989
Depreciation and amortization			141,003				141,621
Lease and rental expense			35,450				34,922
			3,454,820				3,188,818
Income from operations			388,762				278,700
Interest expense, net			52,826				50,876
Other (income) expense, net			(150	)			13,723
Income before income taxes			336,086				214,101
Provision for income taxes			70,264				51,726
Net income			265,822				162,375
Less: Net income (loss) attributable to noncontrolling interests ("NCI")			3,988				(740	)
Net income attributable to UHS		$	261,834			$	163,115
Basic earnings per share attributable to UHS (a)		$	3.90			$	2.31
Diluted earnings per share attributable to UHS (a)		$	3.82			$	2.28

 

 

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Universal Health Services, Inc.
Footnotes to Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
		Three months
		ended March 31,
		2024				2023
(a) Earnings per share calculation:
Basic and diluted:
Net income attributable to UHS		$	261,834			$	163,115
Less: Net income attributable to unvested restricted share grants			(45	)			(129	)
Net income attributable to UHS - basic and diluted		$	261,789			$	162,986
Weighted average number of common shares - basic			67,204				70,535
Basic earnings per share attributable to UHS:		$	3.90			$	2.31
Weighted average number of common shares			67,204				70,535
Add: Other share equivalents			1,278				952
Weighted average number of common shares and equiv. - diluted			68,482				71,487
Diluted earnings per share attributable to UHS:		$	3.82			$	2.28

 

 

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Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")
For the Three Months ended March 31, 2024 and 2023
(in thousands, except per share amounts)
(unaudited)
Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")
	Three months ended				% Net				Three months ended				% Net
	March 31, 2024				revenues				March 31, 2023				revenues
Net income attributable to UHS	$	261,834							$	163,115
Depreciation and amortization		141,003								141,621
Interest expense, net		52,826								50,876
Provision for income taxes		70,264								51,726
EBITDA net of NCI	$	525,927				13.7	%		$	407,338				11.7	%
Other (income) expense, net		(150	)							13,723
Adjusted EBITDA net of NCI	$	525,777				13.7	%		$	421,061				12.1	%
Net revenues	$	3,843,582							$	3,467,518
Calculation of Adjusted Net Income Attributable to UHS
	Three months ended								Three months ended
	March 31, 2024								March 31, 2023
					Per								Per
	Amount				Diluted Share				Amount				Diluted Share
Net income attributable to UHS	$	261,834			$	3.82			$	163,115			$	2.28
Plus/minus after-tax adjustments:
Unrealized loss on equity securities		444				0.01				4,461				0.06
Impact of ASU 2016-09		(9,156	)			(0.13	)			-				-
Subtotal adjustments		(8,712	)			(0.12	)			4,461				0.06
Adjusted net income attributable to UHS	$	253,122			$	3.70			$	167,576			$	2.34

 

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Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
		March 31,				December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents		$	112,093			$	119,439
Accounts receivable, net			2,299,425				2,238,265
Supplies			216,058				216,988
Other current assets			243,352				236,658
Total current assets			2,870,928				2,811,350
Property and equipment			11,955,109				11,777,047
Less: accumulated depreciation			(5,770,371	)			(5,652,518	)
			6,184,738				6,124,529
Other assets:
Goodwill			3,928,120				3,932,407
Deferred income taxes			94,853				85,626
Right of use assets-operating leases			422,268				433,962
Deferred charges			6,871				6,974
Other			538,354				572,754
Total Assets		$	14,046,132			$	13,967,602
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term debt		$	127,477			$	126,686
Accounts payable and other liabilities			1,830,178				1,813,015
Operating lease liabilities			71,014				71,600
Federal and state taxes			46,667				2,046
Total current liabilities			2,075,336				2,013,347
Other noncurrent liabilities			551,257				584,007
Operating lease liabilities noncurrent			374,380				382,559
Long-term debt			4,734,328				4,785,783
Redeemable noncontrolling interest			4,987				5,191
UHS common stockholders' equity			6,256,697				6,149,001
Noncontrolling interest			49,147				47,714
Total equity			6,305,844				6,196,715
Total Liabilities and Stockholders' Equity		$	14,046,132			$	13,967,602

 

 

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Universal Health Services, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Three months
	ended March 31,
	2024				2023
Cash Flows from Operating Activities:
Net income	$	265,822			$	162,375
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization		141,003				141,621
Gains on sale of assets and businesses		(3,725	)			(295	)
Stock-based compensation expense		19,630				20,964
Changes in assets & liabilities, net of effects from acquisitions and dispositions:
Accounts receivable		(74,446	)			(15,723	)
Accrued interest		3,453				(662	)
Accrued and deferred income taxes		72,193				46,576
Other working capital accounts		(33,291	)			(119,605	)
Medicare accelerated payments and deferred CARES Act and other grants		0				136
Other assets and deferred charges		(20,307	)			24,727
Other		8,897				7,030
Accrued insurance expense, net of commercial premiums paid		51,112				42,545
Payments made in settlement of self-insurance claims		(33,935	)			(18,936	)
Net cash provided by operating activities		396,406				290,753
Cash Flows from Investing Activities:
Property and equipment additions		(208,539	)			(168,752	)
Proceeds received from sales of assets and businesses		5,428				9,259
Inflows (outflows) from foreign exchange contracts that hedge our net U.K. investment		8,319				(18,818	)
Decrease in capital reserves of commercial insurance subsidiary		155				0
Net cash used in investing activities		(194,637	)			(178,311	)
Cash Flows from Financing Activities:
Repayments of long-term debt		(63,905	)			(16,489	)
Additional borrowings		12,038				11,300
Financing costs		0				(292	)
Repurchase of common shares		(142,084	)			(85,039	)
Dividends paid		(13,601	)			(14,214	)
Issuance of common stock		3,241				2,988
Profit distributions to noncontrolling interests		(4,480	)			(4,145	)
(Purchase) sale of ownership interests by (from) minority members		(156	)			0
Net cash used in financing activities		(208,947	)			(105,891	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(492	)			1,650
(Decrease) increase in cash, cash equivalents and restricted cash		(7,670	)			8,201
Cash, cash equivalents and restricted cash, beginning of period		214,470				200,837
Cash, cash equivalents and restricted cash, end of period	$	206,800			$	209,038
Supplemental Disclosures of Cash Flow Information:
Interest paid	$	48,116			$	50,279
Income taxes paid, net of refunds	$	2,671			$	2,360
Noncash purchases of property and equipment	$	60,125			$	61,341

 

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Universal Health Services, Inc.
Supplemental Statistical Information
(unaudited)
				% Change
Same Facility:				Three Months ended
				3/31/2024
Acute Care Services
Revenues				9.6%
Adjusted Admissions				4.5%
Adjusted Patient Days				3.4%
Revenue Per Adjusted Admission				4.6%
Revenue Per Adjusted Patient Day				5.8%
Behavioral Health Care Services
Revenues				10.4%
Adjusted Admissions				-0.8%
Adjusted Patient Days				2.0%
Revenue Per Adjusted Admission				11.2%
Revenue Per Adjusted Patient Day				8.2%
UHS Consolidated		Three months ended
		3/31/2024		3/31/2023
Revenues		$3,843,582		$3,467,518
EBITDA net of NCI		$525,927		$407,338
EBITDA Margin net of NCI		13.7%		11.7%
Adjusted EBITDA net of NCI		$525,777		$421,061
Adjusted EBITDA Margin net of NCI		13.7%		12.1%
Cash Flow From Operations		$396,406		$290,753
Capital Expenditures		$208,539		$168,752
Days Sales Outstanding		54		53
Debt		$4,861,805		$4,803,556
UHS' Shareholders Equity		$6,256,697		$6,012,108
Debt / Total Capitalization		43.7%		44.4%
Debt / EBITDA net of NCI (1)		2.65		2.94
Debt / Adjusted EBITDA net of NCI (1)		2.63		2.82
Debt / Cash From Operations (1)		3.54		5.71
(1) Latest 4 quarters.

 

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Universal Health Services, Inc.

Acute Care Hospital Services

For the Three Months ended

March 31, 2024 and 2023

(in thousands)

(unaudited)

 

Same Facility Basis - Acute Care Hospital Services
		Three months ended								Three months ended
		March 31, 2024								March 31, 2023
		Amount				% of Net Revenues				Amount				% of Net Revenues
Net revenues		$	2,107,434				100.0	%		$	1,922,464				100.0	%
Operating charges:
Salaries, wages and benefits			860,676				40.8	%			826,975				43.0	%
Other operating expenses			577,076				27.4	%			504,617				26.2	%
Supplies expense			347,095				16.5	%			325,371				16.9	%
Depreciation and amortization			90,120				4.3	%			93,007				4.8	%
Lease and rental expense			23,793				1.1	%			23,995				1.2	%
Subtotal-operating expenses			1,898,760				90.1	%			1,773,965				92.3	%
Income from operations			208,674				9.9	%			148,499				7.7	%
Interest expense, net			1,300				0.1	%			(577	)			(0.0	)%
Other (income) expense, net			(81	)			(0.0	)%			6,213				0.3	%
Income before income taxes		$	207,455				9.8	%		$	142,863				7.4	%
All Acute Care Hospital Services
		Three months ended								Three months ended
		March 31, 2024								March 31, 2023
		Amount				% of Net Revenues				Amount				% of Net Revenues
Net revenues		$	2,185,081				100.0	%		$	1,973,532				100.0	%
Operating charges:
Salaries, wages and benefits			861,547				39.4	%			843,960				42.8	%
Other operating expenses			654,983				30.0	%			544,300				27.6	%
Supplies expense			347,004				15.9	%			328,060				16.6	%
Depreciation and amortization			90,312				4.1	%			93,326				4.7	%
Lease and rental expense			23,833				1.1	%			24,154				1.2	%
Subtotal-operating expenses			1,977,679				90.5	%			1,833,800				92.9	%
Income from operations			207,402				9.5	%			139,732				7.1	%
Interest expense, net			1,300				0.1	%			(577	)			(0.0	)%
Other (income) expense, net			634				0.0	%			7,013				0.4	%
Income before income taxes		$	205,468				9.4	%		$	133,296				6.8	%

 

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We believe that providing our results on a “Same Facility” basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2023.

 

The All Acute Care Hospital Services table summarizes the results of operations for all our acute care operations during the periods presented. These amounts include: (i) our acute care results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

 

 

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Universal Health Services, Inc.

Behavioral Health Care Services

For the Three Months ended

March 31, 2024 and 2023

(in thousands)

(unaudited)

 

Same Facility - Behavioral Health Care Services
		Three months ended								Three months ended
		March 31, 2024								March 31, 2023
		Amount				% of Net Revenues				Amount				% of Net Revenues
Net revenues		$	1,616,312				100.0	%		$	1,463,723				100.0	%
Operating charges:
Salaries, wages and benefits			868,876				53.8	%			808,938				55.3	%
Other operating expenses			312,285				19.3	%			278,722				19.0	%
Supplies expense			56,766				3.5	%			52,485				3.6	%
Depreciation and amortization			47,108				2.9	%			45,332				3.1	%
Lease and rental expense			11,446				0.7	%			10,598				0.7	%
Subtotal-operating expenses			1,296,481				80.2	%			1,196,075				81.7	%
Income from operations			319,831				19.8	%			267,648				18.3	%
Interest expense, net			1,027				0.1	%			1,210				0.1	%
Other (income) expense, net			(676	)			(0.0	)%			(576	)			(0.0	)%
Income before income taxes		$	319,480				19.8	%		$	267,014				18.2	%
All Behavioral Health Care Services
		Three months ended								Three months ended
		March 31, 2024								March 31, 2023
		Amount				% of Net Revenues				Amount				% of Net Revenues
Net revenues		$	1,656,067				100.0	%		$	1,490,489				100.0	%
Operating charges:
Salaries, wages and benefits			872,196				52.7	%			809,786				54.3	%
Other operating expenses			347,268				21.0	%			305,232				20.5	%
Supplies expense			56,924				3.4	%			52,488				3.5	%
Depreciation and amortization			47,872				2.9	%			45,619				3.1	%
Lease and rental expense			11,518				0.7	%			10,668				0.7	%
Subtotal-operating expenses			1,335,778				80.7	%			1,223,793				82.1	%
Income from operations			320,289				19.3	%			266,696				17.9	%
Interest expense, net			1,027				0.1	%			1,211				0.1	%
Other (income) expense, net			(676	)			(0.0	)%			(871	)			(0.1	)%
Income before income taxes		$	319,938				19.3	%		$	266,356				17.9	%

 

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We believe that providing our results on a “Same Facility” basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2023.

 

The All Behavioral Health Care Services table summarizes the results of operations for all our behavioral health care facilities during the periods presented. These amounts include: (i) our behavioral health results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

 

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Universal Health Services, Inc.
Selected Hospital Statistics
For the Three Months Ended
March 31, 2024 and 2023
(unaudited)
AS REPORTED:
		ACUTE												BEHAVIORAL HEALTH
		03/31/24				03/31/23				% change				03/31/24				03/31/23				% change
Hospitals owned and leased			27				27				0.0	%			333				331				0.6	%
Average licensed beds			6,657				6,798				-2.1	%			24,378				24,232				0.6	%
Average available beds			6,485				6,626				-2.1	%			24,278				24,132				0.6	%
Patient days			415,327				404,253				2.7	%			1,608,992				1,572,571				2.3	%
Average daily census			4,564.0				4,491.7				1.6	%			17,681.2				17,473.0				1.2	%
Occupancy-licensed beds			68.6	%			66.1	%			3.8	%			72.5	%			72.1	%			0.6	%
Occupancy-available beds			70.4	%			67.8	%			3.8	%			72.8	%			72.4	%			0.6	%
Admissions			83,581				80,126				4.3	%			119,930				120,560				-0.5	%
Length of stay			5.0				5.0				0.0	%			13.4				13.0				3.1	%
Inpatient revenue		$	12,910,102			$	11,401,491				13.2	%		$	2,754,684			$	2,627,990				4.8	%
Outpatient revenue			8,346,289				7,296,116				14.4	%			278,528				272,371				2.3	%
Total patient revenue			21,256,391				18,697,607				13.7	%			3,033,212				2,900,361				4.6	%
Other revenue			246,251				221,993				10.9	%			80,211				65,318				22.8	%
Gross revenue			21,502,642				18,919,600				13.7	%			3,113,423				2,965,679				5.0	%
Total deductions			19,317,561				16,946,068				14.0	%			1,457,356				1,475,190				-1.2	%
Net revenue		$	2,185,081			$	1,973,532				10.7	%		$	1,656,067			$	1,490,489				11.1	%
SAME FACILITY:
		ACUTE												BEHAVIORAL HEALTH
		03/31/24				03/31/23				% change				03/31/24				03/31/23				% change
Hospitals owned and leased			27				27				0.0	%			331				331				0.0	%
Average licensed beds			6,657				6,610				0.7	%			24,124				24,106				0.1	%
Average available beds			6,485				6,438				0.7	%			24,024				24,006				0.1	%
Patient days			415,327				397,998				4.4	%			1,596,431				1,562,130				2.2	%
Average daily census			4,564.0				4,422.2				3.2	%			17,543.2				17,357.0				1.1	%
Occupancy-licensed beds			68.6	%			66.9	%			2.5	%			72.7	%			72.0	%			1.0	%
Occupancy-available beds			70.4	%			68.7	%			2.5	%			73.0	%			72.3	%			1.0	%
Admissions			83,581				79,063				5.7	%			118,897				119,615				-0.6	%
Length of stay			5.0				5.0				0.0	%			13.4				13.1				2.3	%

 

 

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v3.24.1.u1

Document and Entity Information	Apr. 24, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 24, 2024
Entity Registrant Name	UNIVERSAL HEALTH SERVICES, INC.
Entity Central Index Key	0000352915
Entity Emerging Growth Company	false
Entity File Number	1-10765
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-2077891
Entity Address, Address Line One	UNIVERSAL CORPORATE CENTER
Entity Address, Address Line Two	367 SOUTH GULPH ROAD
Entity Address, City or Town	KING OF PRUSSIA
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19406
City Area Code	610
Local Phone Number	768-3300
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of each class	Class B Common Stock
Trading Symbol	UHS
Security Exchange Name	NYSE

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