Universal Health Services, Inc. Reports 2019 Third Quarter Financial Results And Revises 2019 Full Year Earnings Guidance Range

10/24/2019
Microphone Webcast - Live
Q3 2019 Universal Health Services Earnings Conference Call
10/25/19 at 9:00 a.m. ET
 
Consolidated Results of Operations, As Reported and As Adjusted - Three-month periods ended September 30, 2019 and 2018:

KING OF PRUSSIA, Pa., Oct. 24, 2019 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $97.2 million, or $1.10 per diluted share, during the third quarter of 2019 as compared to $171.7 million, or $1.84 per diluted share, during the comparable quarter of 2018.  Net revenues increased 6.6% to $2.822 billion during the third quarter of 2019 as compared to $2.649 billion during the third quarter of 2018.

For the three-month period ended September 30, 2019, our adjusted net income attributable to UHS, as calculated on the attached Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), was $176.3 million, or $1.99 per diluted share, as compared to $208.8 million, or $2.23 per diluted share, during the third quarter of 2018. 

Included in our reported and our adjusted net income attributable to UHS is a pre-tax unrealized loss of $15.2 million, or $.13 per diluted share after-tax, during the third quarter of 2019, as compared to a pre-tax unrealized gain of $10.5 million, or $.09 per diluted share after-tax, during the third quarter of 2018. These unrealized losses/gains, which are included in "Other (income) expense, net" on the accompanying consolidated statements of income, resulted from decreases/increases in the market value of shares of certain marketable securities held for investment and classified as available for sale.  

As reflected on the Supplemental Schedule, included in our reported results during the third quarter of 2019, is an aggregate net unfavorable after-tax impact of $79.1 million, or $.89 per diluted share, resulting from: (i) an unfavorable after-tax impact of $74.6 million, or $.84 per diluted share, resulting from a $97.6 million provision for asset impairment, as discussed below; (ii) an unfavorable after-tax impact of $6.2 million, or $.07 per diluted share, resulting from the net estimated federal and state income taxes due on the portion of the aggregate pre-tax reserve ("DOJ Reserve") established in connection with the previously disclosed agreement in principle with the Department Of Justice, Civil Division ("DOJ"), that is estimated to be non-deductible for income tax purposes, and; (iii) a favorable after-tax impact of $1.7 million, or $.02 per diluted share, resulting from our adoption of ASU 2016-09, "Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09").

As reflected on the Supplemental Schedule, included in our reported results during the third quarter of 2018, is a net aggregate unfavorable after-tax impact of $37.1 million, or $.39 per diluted share, substantially all of which resulted from an unfavorable after-tax impact of $36.6 million, or $.39 per diluted share, resulting from a $48.0 million pre-tax increase in the DOJ Reserve. 

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 $297.4 million during the third quarter of 2019 as compared to $377.7 million during the third quarter of 2018.  Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impacts of other (income) expense, net, as well as the unfavorable impact of the above-mentioned provision for asset impairment and increase in the DOJ Reserve, was $404.4 million during the third quarter of 2019 as compared to $414.3 million during the third quarter of 2018.

Consolidated Results of Operations, As Reported and As Adjusted  – Nine-month periods ended September 30, 2019 and 2018:
Reported net income attributable to UHS was $569.7 million, or $6.35 per diluted share, during the nine-month period ended September 30, 2019 as compared to $621.6 million, or $6.60 per diluted share, during the comparable nine-month period of 2018.  Net revenues increased 5.8% to $8.482 billion during the first nine months of 2019 as compared to $8.018 billion during the first nine months of 2018.

For the nine-month period ended September 30, 2019, our adjusted net income attributable to UHS, as calculated on the attached Supplemental Schedule, was $646.7 million, or $7.21 per diluted share, as compared to $674.3 million, or $7.16 per diluted share, during the comparable nine-month period of 2018. 

Included in our reported and our adjusted net income attributable to UHS is a pre-tax unrealized loss of $12.5 million, or $.11 per diluted share after-tax, during the first nine months of 2019, as compared to a pre-tax unrealized gain of $18.5 million, or $.15 per diluted share after-tax, during the comparable nine-month period of 2018. As discussed above, these unrealized losses/gains resulted from a decreases/increases in the market value of shares of certain marketable securities held for investment and classified as available for sale.  

As reflected on the Supplemental Schedule, included in our reported results during the nine-month period ended September 30, 2019, is an aggregate net unfavorable after-tax impact of $77.0 million, or $.86 per diluted share, resulting from: (i) an unfavorable after-tax impact of $74.6 million, or $.84 per diluted share, resulting from a $97.6 million provision for asset impairment, as discussed below; (ii) an unfavorable after-tax impact of $14.6 million, or $.16 per diluted share, resulting from an increase in the DOJ Reserve and the net estimated federal and state income taxes due on the portion of the DOJ Reserve that is estimated to be non-deductible for income tax purposes, and; (iii) a favorable after-tax impact of $12.1 million, or $.14 per diluted share, resulting from our adoption of ASU 2016-09.

As reflected on the Supplemental Schedule, included in our reported results during the nine-month period ended September 30, 2018, is a net aggregate unfavorable after-tax impact of $52.6 million, or $.56 per diluted share, consisting of: (i) an unfavorable after-tax impact of $53.7 million, or $.57 per diluted share, resulting from a $70.4 million pre-tax increase in the DOJ Reserve, partially offset by; (ii) a favorable after-tax impact of $1.1 million, or $.01 per diluted share, resulting from our adoption of ASU 2016-09. 

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization ("EBITDA net of NCI"), was $1.222 billion during the nine-month period ended September 30, 2019 as compared to $1.264 billion during the nine-month period ended September 30, 2018.  Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impacts of other (income) expense, net, as well as the unfavorable impact of the above-mentioned provision for asset impairment and increase in the DOJ Reserve, was $1.336 billion during the nine-month period ended September 30, 2019 as compared to $1.308 billion during the nine-month period ended September 30, 2018.

Acute Care Services – Three and nine-month periods ended September 30, 2019 and 2018:
During the third quarter of 2019, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased 7.4% and adjusted patient days increased 7.0%, as compared to the third quarter of 2018. At these facilities, net revenue per adjusted admission increased 1.6% while net revenue per adjusted patient day increased 2.0% during the third quarter of 2019 as compared to the third quarter of 2018. Net revenues from our acute care services on a same facility basis increased 9.3% during the third quarter of 2019 as compared to the third quarter of 2018.

During the nine-month period ended September 30, 2019, at our acute care hospitals on a same facility basis, adjusted admissions increased 5.8% and adjusted patient days increased 5.5%, as compared to the first nine months of 2018. At these facilities, net revenue per adjusted admission increased 1.5% while net revenue per adjusted patient day increased 1.7% during the nine-month period ended September 30, 2019 as compared to the comparable nine-month period of 2018. Net revenues from our acute care services on a same facility basis increased 7.6% during the first nine months of 2019 as compared to the comparable period of 2018.

Behavioral Health Care Services – Three and nine-month periods ended September 30, 2019 and 2018:
During the third quarter of 2019, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 0.5% while adjusted patient days increased 0.4% as compared to the third quarter of 2018. At these facilities, net revenue per adjusted admission increased 2.0% while net revenue per adjusted patient day increased 2.2% during the third quarter of 2019 as compared to the comparable quarter in 2018. On a same facility basis, our behavioral health care services' net revenues increased 2.1% during the third quarter of 2019 as compared to the third quarter of 2018.   

During the nine-month period ended September 30, 2019, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 1.3% while adjusted patient days increased 0.5% as compared to the comparable nine-month period of 2018. At these facilities, net revenue per adjusted admission increased 1.5% while net revenue per adjusted patient day increased 2.3% during the first nine months of 2019 as compared to the comparable nine-month period in 2018. On a same facility basis, our behavioral health care services' net revenues increased 2.6% during the nine-month period ended September 30, 2019 as compared to the comparable nine-month period of 2018.   

Net Cash Provided by Operating Activities and Share Repurchase Program:
For the nine months ended September 30, 2019, our net cash provided by operating activities increased to $1.049 billion as compared to $949 million generated during the comparable nine-month period of 2018. The $100 million net increase was due to: (i) a favorable change of $69 million resulting from an increase in net income plus/minus depreciation and amortization expense, stock-based compensation expense, provision for asset impairment and net gains on sale of assets and businesses; (ii) a favorable change of $37 million in accounts receivable, and; (iii) $6 million of other combined net unfavorable changes.   

In conjunction with our January 1, 2019 adoption of ASU 2017-12, "Targeted Improvements to Accounting for Hedging Activities", we have included the net cash inflows/outflows, which were received/paid in connection with foreign exchange contracts that hedge our investment in the U.K., in investing cash flows on the consolidated statements of cash flows. For the nine-month periods ended September 30, 2019 and 2018, we have received $90.3 million and $26.1 million, respectively, of net cash inflows in connection with foreign exchange contracts that hedge our investment in the U.K. Prior to 2019, these net inflows/outflows were included in operating cash flows. Prior period amounts have been reclassified to conform with current year presentation on the consolidated statements of cash flows included herein.

In July, 2019, our Board of Directors authorized a $1.0 billion increase to our stock repurchase program, which increased the aggregate authorization to $2.7 billion from the previous $1.7 billion authorization approved in various increments since 2014. Pursuant to this program, which had an aggregate available repurchase authorization of $937.3 million as of September 30, 2019, 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. 

In conjunction with our stock repurchase program, during the third quarter of 2019, we have repurchased 550,564 shares at an aggregate cost of $79.5 million (approximately $144 per share). During the first nine months of 2019, we have repurchased approximately 4.11 million shares at an aggregate cost of $525.0 million (approximately $128 per share). Since inception of the program in 2014 through September 30, 2019, we have repurchased approximately 14.78 million shares at an aggregate cost of approximately $1.76 billion (approximately $119 per share). 

Update on Agreement in Principle with DOJ's Civil Division and DOJ Reserve:
As previously disclosed on July 25, 2019, we have reached an agreement in principle with the DOJ's Civil Division, and on behalf of various states' attorneys general offices, to resolve the civil aspect of the government's investigation of our behavioral health care facilities for $127 million subject to requisite approvals and preparation and execution of definitive settlement and related agreements.  At that time, we also disclosed that we were further advised that the previously disclosed investigations being conducted by the DOJ's Criminal Frauds Section in connection with these matters had been closed. 

In connection with the agreement in principle with the DOJ's Civil Division, during the nine-month period ended September 30, 2019, we recorded a pre-tax increase of approximately $11.0 million in the DOJ Reserve, which includes related fees and costs due to or on behalf of third-parties. The aggregate pre-tax DOJ Reserve amounted to approximately $134 million as of September 30, 2019 and approximately $123 million as of December 31, 2018.

In late August, 2019, we received the initial draft of the settlement agreement from the DOJ's Civil Division.  Negotiations regarding the terms and conditions of the settlement agreement continue. Based upon the terms and provisions included in the draft settlement agreement, and related subsequent discussions, our financial statements for each of the three and nine-month periods ended September 30, 2019 include an unfavorable provision for income taxes of $6.2 million resulting from the net estimated federal and state income taxes due on the portion of the aggregate pre-tax DOJ Reserve that is estimated to be non-deductible for income tax purposes.  

Since the agreement in principle with the DOJ's Civil Division is subject to certain required approvals and negotiation and execution of definitive settlement agreements, as well as finalization and execution of a corporate integrity agreement with the Office of Inspector General for the United States Department of Health and Human Services, we can provide no assurance that definitive agreements will ultimately be finalized. We therefore can provide no assurance that final amounts paid in settlement or otherwise, or associated costs, or the income tax deductibility of such payments, will not differ materially from our established reserve and assumptions related to income tax deductibility. Please see Item 1-Legal Proceedings in our Form 10-Q for the quarterly period ended June 30, 2019 for additional disclosure in connection with this matter.

Provision for Asset Impairment – Foundations Recovery Network    
Our financial results for the three and nine-month periods ended September 30, 2019, include an aggregate pre-tax provision for asset impairment of $97.6 million recorded in connection with Foundations Recovery Network, L.L.C. ("Foundations"), which was acquired by us in 2015. This pre-tax provision for asset impairment includes: (i) a $74.9 million impairment provision to write-off the carrying value of the Foundations' tradename intangible asset, and; (ii) a $22.7 million impairment provision to reduce the carrying value of real property assets of certain Foundations' facilities.

This provision for asset impairment, which is included in other operating expenses in our consolidated statements of income for the three and nine-month periods ended September 30, 2019, was recorded after evaluation of the estimated fair value of the Foundations' tradename as well as certain related real property assets. The provision for asset impairment was impacted by the following: (i) recent decisions made by management to cancel the opening of future planned de novo facilities; (ii) reductions in projected future patient volumes, revenues and cash flows based upon the operating trends and financial results experienced by existing facilities, and; (iii) competitive pressures experienced in certain markets.    

Revision of 2019 Full Year Earnings Guidance Range:
Based upon the operating trends and financial results experienced during the first nine months of 2019, we are revising our estimated range of adjusted net income attributable to UHS for the year ended December 31, 2019 to $9.60 to $9.90 per diluted share as compared to the previously provided range of $9.70 to $10.40 per diluted share. This revised estimated guidance range decreases the lower end of the previously provided range 1.0% and decreases the upper end of the previously provided range by 4.8%.   

Contributing to, and included in, the revised estimated earnings guidance range for the year ended December 31, 2019 is the above-mentioned unrealized loss of $.11 per diluted share ($12.5 million pre-tax), recorded during the first nine months of 2019 resulting from a decrease in the market value of shares of certain marketable securities held for investment and classified as available for sale.  For comparative purposes, included in our reported and our adjusted net income attributable to UHS during the first nine months of 2018, was an unrealized gain of $.15 per diluted share ($18.5 million pre-tax), resulting from an increase in the market value of these marketable securities.  The revised estimated earnings guidance range for the full year of 2019 assumes no change in the market value of these marketable securities during the fourth quarter of 2019.    

This revised estimated earnings guidance range excludes: (i) the unfavorable after-tax impact of $14.6 million, or $.16 per diluted share, representing the current year changes in the DOJ Reserve, and related provision for income taxes, established in connection with the civil aspects of the government's investigation of our certain of our behavioral health care facilities, as discussed above; (ii) the unfavorable after-tax impact of $74.6 million, or $.84 per diluted share, resulting from a $97.6 million provision for asset impairment, as discussed below, partially offset by; (iii) the favorable impact of $12.1 million, or $.14 per diluted share, on our provision for income taxes and net income attributable to UHS resulting from of our adoption of ASU 2016-09. 

In addition, this revised estimated earnings guidance range excludes the impact of future items, if applicable and material, that are nonrecurring or non-operational in nature including items such as, but not limited to, gains/losses on sales of assets and businesses, costs related to extinguishment of debt, reserves for settlements, legal judgments and lawsuits, impairments of long-lived assets, impact of share repurchases and other amounts that may be reflected in our financial statements that relate to prior periods. It is also subject to certain conditions including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.

Conference call information:
We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on October 25, 2019. The dial-in number is 1-877-648-7971. 

A live broadcast of the conference call will be available on our website at www.uhsinc.com.  Also, a replay of the call will be available following the conclusion of the live call and will be available for one full year.

Adoption of ASU 2016-02, "Leases (Topic 842): Amendments to the FASB Accounting Standards Codification":
Effective January 1, 2019, we adopted ASU 2016-02 which requires companies to, among other things, recognize lease assets and lease liabilities on the balance sheet. As a result of our adoption of ASU 2016-02, our consolidated balance sheet as of September 30, 2019 includes right of use assets-operating leases ($329.3 million) and operating lease liabilities ($55.1 million current and $274.2 million noncurrent).  Prior period financial statements were not adjusted for the effects of this new standard.     

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. has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues were $10.77 billion during 2018. In 2019, UHS was again recognized as one of the World's Most Admired Companies by Fortune; ranked #293 on the Fortune 500; and in 2017, listed #275 in Forbes inaugural ranking of America's Top 500 Public Companies.

Our operating philosophy is as effective today as it was 40 years ago, 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 more than 87,000 employees and through its subsidiaries operates 26 acute care hospitals, 327 behavioral health facilities, 40 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 37 U.S. states, Washington, D.C., Puerto Rico and the United Kingdom. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT).  For additional information on the Company, visit our web site: http://www.uhsinc.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 in Item 7-Forward-Looking Statements and Risk Factors in our Form 10-K for the year ended December 31, 2018 and in Item 2-Forward-Looking Statements and Risk Factors in our Form 10-Q for the quarterly period ended June 30, 2019), may cause the results to differ materially from those anticipated in the forward-looking statements.  Many of the factors that will determine our future results are beyond our capability to control or predict. 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.

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 in each year of material items impacting our net income attributable to UHS, such as, changes in the reserve established in connection with our discussions with the Department of Justice, our adoption of ASU 2016-09 and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of 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, 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 Reports on Form 10-K for the year ended December 31, 2018 and Form 10-Q for the quarterly period ended June 30, 2019. 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.

 

Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

               
 

Three months

 

Nine months

 

ended September 30,

 

ended September 30,

 

2019

 

2018

 

2019

 

2018

               

Net revenues

$2,822,453

 

$2,648,913

 

$8,482,012

 

$8,017,782

               

Operating charges:

             

   Salaries, wages and benefits

1,408,226

 

1,316,710

 

4,157,253

 

3,922,832

   Other operating expenses

762,174

 

651,442

 

2,079,518

 

1,896,745

   Supplies expense

313,936

 

285,201

 

927,256

 

867,863

   Depreciation and amortization

121,528

 

112,286

 

362,736

 

334,970

   Lease and rental expense

27,660

 

26,110

 

80,320

 

79,932

 

2,633,524

 

2,391,749

 

7,607,083

 

7,102,342

Income from operations

188,929

 

257,164

 

874,929

 

915,440

Interest expense, net

41,447

 

39,506

 

123,574

 

115,082

Other (income) expense, net

9,407

 

(11,409)

 

6,176

 

(26,717)

Income before income taxes

138,075

 

229,067

 

745,179

 

827,075

Provision for income taxes

37,205

 

54,186

 

165,646

 

192,814

Net income

100,870

 

174,881

 

579,533

 

634,261

Less:  Net income attributable to

             

noncontrolling interests ("NCI")

3,680

 

3,135

 

9,855

 

12,631

Net income attributable to UHS

$97,190

 

$171,746

 

$569,678

 

$621,630

               
               
               

Basic earnings per share attributable to UHS (a)

$1.10

 

$1.85

 

$6.36

 

$6.63

               

Diluted earnings per share attributable to UHS (a)

$1.10

 

$1.84

 

$6.35

 

$6.60

               

 

 

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

               
 

Three months

 

Nine months

(a) Earnings per share calculation:

ended September 30,

 

ended September 30,

 

2019

 

2018

 

2019

 

2018

Basic and diluted:

             

Net income attributable to UHS

$97,190

 

$171,746

 

$569,678

 

$621,630

Less: Net income attributable to unvested restricted share grants

(243)

 

(317)

 

(1,414)

 

(813)

Net income attributable to UHS - basic and diluted

$96,947

 

$171,429

 

$568,264

 

$620,817

               

Weighted average number of common shares - basic

87,952

 

92,849

 

89,288

 

93,639

               

Basic earnings per share attributable to UHS:

$1.10

 

$1.85

 

$6.36

 

$6.63

               

Weighted average number of common shares

87,952

 

92,849

 

89,288

 

93,639

Add: Other share equivalents

403

 

481

 

231

 

459

Weighted average number of common shares and equiv. - diluted

88,355

 

93,330

 

89,519

 

94,098

               

Diluted earnings per share attributable to UHS:

$1.10

 

$1.84

 

$6.35

 

$6.60

               

 

 

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

For the Three Months ended September 30, 2019 and 2018

(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

 

September 30, 2019

 

revenues

 

September 30, 2018

 

revenues

               

Net income attributable to UHS

$97,190

     

$171,746

   

   Depreciation and amortization

121,528

     

112,286

   

   Interest expense, net

41,447

     

39,506

   

   Provision for income taxes

37,205

     

54,186

   

EBITDA net of NCI

$297,370

 

10.5%

 

$377,724

 

14.3%

               

Other (income) expense, net

9,407

     

(11,409)

   

Increase in DOJ Reserve

-

     

47,981

   

Provision for asset impairment

97,631

     

-

   

Adjusted EBITDA net of NCI

$404,408

 

14.3%

 

$414,296

 

15.6%

               

Net revenues

$2,822,453

     

$2,648,913

   
               
               
               
               
               

Calculation of Adjusted Net Income Attributable to UHS

               
 

Three months ended

 

Three months ended

 

September 30, 2019

 

September 30, 2018

     

Per

     

Per

 

Amount

 

Diluted Share

 

Amount

 

Diluted Share

               

Net income attributable to UHS

$97,190

 

$1.10

 

$171,746

 

$1.84

Plus/minus after-tax adjustments:

             

Increase in DOJ Reserve and related income taxes

6,214

 

0.07

 

36,578

 

0.39

Impact of ASU 2016-09

(1,724)

 

(0.02)

 

481

 

-

Provision for asset impairment, after-tax

74,583

 

0.84

 

-

 

-

Subtotal adjustments

79,073

 

0.89

 

37,059

 

0.39

Adjusted net income attributable to UHS

$176,263

 

$1.99

 

$208,805

 

$2.23

               

 

 

 

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

For the Nine Months ended September 30, 2019 and 2018

(in thousands, except per share amounts)

(unaudited)

               
               
               

Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA/Adjusted EBITDA net of NCI")

               
 

Nine months ended

 

% Net

 

Nine months ended

 

% Net

 

September 30, 2019

 

revenues

 

September 30, 2018

 

revenues

               

Net income attributable to UHS

$569,678

     

$621,630

   

   Depreciation and amortization

362,736

     

334,970

   

   Interest expense, net

123,574

     

115,082

   

   Provision for income taxes

165,646

     

192,814

   

EBITDA net of NCI

$1,221,634

 

14.4%

 

$1,264,496

 

15.8%

               

Other (income) expense, net

6,176

     

(26,717)

   

Increase in DOJ Reserve

10,978

     

70,432

   

Provision for asset impairment

97,631

     

-

   

Adjusted EBITDA net of NCI

$1,336,419

 

15.8%

 

$1,308,211

 

16.3%

               

Net revenues

$8,482,012

     

$8,017,782

   
               
               
               
               
               

Calculation of Adjusted Net Income Attributable to UHS

               
 

Nine months ended

 

Nine months ended

 

September 30, 2019

 

September 30, 2018

     

Per

     

Per

 

Amount

 

Diluted Share

 

Amount

 

Diluted Share

               

Net income attributable to UHS

$569,678

 

$6.35

 

$621,630

 

$6.60

Plus/minus after-tax adjustments:

             

Increase in DOJ Reserve and related income taxes

14,583

 

0.16

 

53,694

 

0.57

Impact of ASU 2016-09

(12,122)

 

(0.14)

 

(1,056)

 

(0.01)

Provision for asset impairment, after-tax

74,583

 

0.84

 

-

 

-

Subtotal adjustments

77,044

 

0.86

 

52,638

 

0.56

Adjusted net income attributable to UHS

$646,722

 

$7.21

 

$674,268

 

$7.16

               

 

 

 

Universal Health Services, Inc.

Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)

               
 

Three months

 

Nine months

 

ended September 30,

 

ended September 30,

 

2019

 

2018

 

2019

 

2018

               

Net income

$100,870

 

$174,881

 

$579,533

 

$634,261

Other comprehensive income (loss):

             

   Unrealized derivative gains (losses) on cash flow hedges

0

 

(1,924)

 

(3,925)

 

(345)

   Foreign currency translation adjustment

(10,089)

 

(12,323)

 

(19,192)

 

(15,480)

Other comprehensive income (loss) before tax

(10,089)

 

(14,247)

 

(23,117)

 

(15,825)

Income tax expense (benefit) related to items of other comprehensive income (loss)

174

 

(457)

 

(676)

 

(82)

Total other comprehensive income (loss), net of tax

(10,263)

 

(13,790)

 

(22,441)

 

(15,743)

               

Comprehensive income

90,607

 

161,091

 

557,092

 

618,518

Less: Comprehensive income attributable to noncontrolling interests

3,680

 

3,135

 

9,855

 

12,631

Comprehensive income attributable to UHS

$86,927

 

$157,956

 

$547,237

 

$605,887

               

 

 

 

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

             
     

September 30,

   

December 31,

     

2019

   

2018

Assets

           

Current assets:

           

    Cash and cash equivalents

 

$

58,905

 

$

105,220

    Accounts receivable, net

   

1,544,077

   

1,509,909

    Supplies

   

156,285

   

148,206

    Other current assets

   

171,360

   

174,467

          Total current assets

   

1,930,627

   

1,937,802

             

Property and equipment

   

8,967,340

   

8,563,455

Less: accumulated depreciation

   

(4,008,931)

   

(3,715,515)

     

4,958,409

   

4,847,940

             

Other assets:

           

    Goodwill

   

3,827,867

   

3,844,628

    Deferred income taxes

   

19,199

   

5,280

    Right of use assets-operating leases

   

329,328

   

0

    Deferred charges

   

6,926

   

8,772

    Other

   

522,045

   

621,058

Total Assets

 

$

11,594,401

 

$

11,265,480

             

Liabilities and Stockholders' Equity

           

Current liabilities:

           

    Current maturities of long-term debt

 

$

78,077

 

$

63,446

    Accounts payable and accrued liabilities

   

1,343,922

   

1,253,714

    Legal reserves

   

144,120

   

129,150

    Operating lease liabilities

   

55,080

   

0

    Federal and state taxes

   

570

   

2,428

          Total current liabilities

   

1,621,769

   

1,448,738

             

Other noncurrent liabilities

   

338,871

   

361,809

Operating lease liabilities noncurrent

   

274,248

   

0

Long-term debt

   

3,870,294

   

3,935,187

Deferred income taxes

   

21,213

   

49,661

             

Redeemable noncontrolling interest

   

4,061

   

4,292

             

UHS common stockholders' equity

   

5,389,215

   

5,389,262

Noncontrolling interest

   

74,730

   

76,531

          Total equity

   

5,463,945

   

5,465,793

             

Total Liabilities and Stockholders' Equity

 

$

11,594,401

 

$

11,265,480

             

 

 

 

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

Nine months

 

ended September 30,

 

2019

 

2018

       

Cash Flows from Operating Activities:

     

Net income

$579,533

 

$634,261

Adjustments to reconcile net income to net 

     

cash provided by operating activities:

     

Depreciation & amortization

362,736

 

335,002

Stock-based compensation expense

52,167

 

50,645

Gain on sale of assets and businesses

(5,982)

 

(2,513)

Provision for asset impairment

97,631

 

0

Changes in assets & liabilities, net of effects from

     

acquisitions and dispositions:

     

  Accounts receivable

(37,332)

 

(74,129)

  Accrued interest

(2,962)

 

(5,808)

  Accrued and deferred income taxes 

(53,714)

 

(53,165)

  Other working capital accounts 

90,262

 

89,157

  Other assets and deferred charges

15,237

 

(37,133)

  Other 

(56,465)

 

(3,080)

  Accrued insurance expense, net of commercial premiums paid

76,245

 

69,386

  Payments made in settlement of self-insurance claims

(68,046)

 

(53,223)

          Net cash provided by operating activities

1,049,310

 

949,400

       

Cash Flows from Investing Activities:

     

   Property and equipment additions, net of disposals

(480,247)

 

(521,349)

   Acquisition of property and businesses

0

 

(108,016)

   Inflows from foreign exchange contracts that hedge our net U.K. investment

90,286

 

26,088

   Proceeds received from sales of assets and businesses

7,497

 

13,502

   Costs incurred for purchase and implementation of information technology applications

(18,240)

 

(25,487)

   Decrease in capital reserves of commercial insurance subsidiary

0

 

100

   Investment in, and advances to,  joint ventures and other

(11,949)

 

(13,910)

          Net cash used in investing activities

(412,653)

 

(629,072)

       

Cash Flows from Financing Activities:

     

   Reduction of long-term debt

(68,175)

 

(99,969)

   Additional borrowings

15,100

 

82,400

   Financing costs

0

 

(774)

   Repurchase of common shares

(587,976)

 

(261,256)

   Dividends paid

(35,556)

 

(28,086)

   Issuance of common stock

8,248

 

7,737

   Profit distributions to noncontrolling interests

(11,887)

 

(8,243)

          Net cash used in financing activities

(680,246)

 

(308,191)

       

   Effect of exchange rate changes on cash, cash equivalents and restricted cash

(1,259)

 

(1,742)

(Decrease) Increase in cash, cash equivalents and restricted cash

(44,848)

 

10,395

Cash, cash equivalents and restricted cash, beginning of period

199,685

 

167,297

Cash, cash equivalents and restricted cash, end of period

$154,837

 

$177,692

       

Supplemental Disclosures of Cash Flow Information:

     

  Interest paid

$122,699

 

$114,162

  Income taxes paid, net of refunds

$221,298

 

$247,486

  Noncash purchases of property and equipment

$83,552

 

$88,932

  Right-of-use assets obtained in exchange for lease obligations

$364,453

 

$0

       

 

 

 

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)

                   
                   
                   
         

 % Change 

 

 % Change 

   
         

Quarter ended

 

9 months ended

   

Same Facility:

       

9/30/2019

 

9/30/2019

   
                   

Acute Care Hospitals

                 

Revenues

       

9.3%

 

7.6%

   

Adjusted Admissions

       

7.4%

 

5.8%

   

Adjusted Patient Days

       

7.0%

 

5.5%

   

Revenue Per Adjusted Admission

     

1.6%

 

1.5%

   

Revenue Per Adjusted Patient Day

     

2.0%

 

1.7%

   
                   
                   
                   

Behavioral Health Hospitals

                 

Revenues

       

2.1%

 

2.6%

   

Adjusted Admissions

       

0.5%

 

1.3%

   

Adjusted Patient Days

       

0.4%

 

0.5%

   

Revenue Per Adjusted Admission

     

2.0%

 

1.5%

   

Revenue Per Adjusted Patient Day

     

2.2%

 

2.3%

   
                   
                   
                   
                   

UHS Consolidated

   

Third quarter ended

 

Nine months ended

     

9/30/2019

 

9/30/2018

 

9/30/2019

 

9/30/2018

                   

Revenues

   

$2,822,453

 

$2,648,913

 

$8,482,012

 

$8,017,782

EBITDA net of NCI

   

$297,370

 

$377,724

 

$1,221,634

 

$1,264,496

EBITDA Margin net of NCI

   

10.5%

 

14.3%

 

14.4%

 

15.8%

Adjusted EBITDA net of NCI

   

$404,408

 

$414,296

 

$1,336,419

 

$1,308,211

Adjusted EBITDA Margin net of NCI

 

14.3%

 

15.6%

 

15.8%

 

16.3%

                   
                   

Cash Flow From Operations

   

$425,224

 

$342,437

 

$1,049,310

 

$949,400

Days Sales Outstanding

   

50

 

54

 

50

 

53

Capital Expenditures  

   

$156,327

 

$151,097

 

$480,247

 

$521,349

                   

Debt 

           

$3,948,371

 

$4,026,344

UHS' Shareholders Equity

           

$5,389,215

 

$5,363,745

Debt / Total Capitalization

           

42.3%

 

42.9%

Debt / EBITDA net of NCI (1)

           

2.50

 

2.35

Debt / Adjusted EBITDA net of NCI (1)

       

2.21

 

2.29

Debt / Cash From Operations (1)

           

2.87

 

3.23

                   

(1)  Latest 4 quarters

                 
                   

 

 

 

Universal Health Services, Inc.

Acute Care Hospital Services

For the three and nine months ended

September 30, 2019 and 2018

(in thousands)

                                 
                                 

Same Facility Basis - Acute Care Hospital Services

                               
                                 
   

Three months ended

 

Three months ended

 

Nine months ended

 

Nine months ended

   

September 30, 2019

 

September 30, 2018

 

September 30, 2019

 

September 30, 2018

   

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

Net revenues

 

$1,502,383

 

100.0%

 

$1,375,116

 

100.0%

 

$4,491,738

 

100.0%

 

$4,173,618

 

100.0%

Operating charges:

                               

Salaries, wages and benefits

 

652,804

 

43.5%

 

596,903

 

43.4%

 

1,894,713

 

42.2%

 

1,762,797

 

42.2%

Other operating expenses

 

343,845

 

22.9%

 

312,383

 

22.7%

 

1,015,237

 

22.6%

 

929,224

 

22.3%

Supplies expense

 

263,198

 

17.5%

 

235,272

 

17.1%

 

776,231

 

17.3%

 

718,543

 

17.2%

Depreciation and amortization

 

76,028

 

5.1%

 

68,647

 

5.0%

 

225,624

 

5.0%

 

207,962

 

5.0%

Lease and rental expense

 

16,168

 

1.1%

 

14,052

 

1.0%

 

45,078

 

1.0%

 

43,043

 

1.0%

Subtotal-operating expenses

 

1,352,043

 

90.0%

 

1,227,257

 

89.2%

 

3,956,883

 

88.1%

 

3,661,569

 

87.7%

Income from operations

 

150,340

 

10.0%

 

147,859

 

10.8%

 

534,855

 

11.9%

 

512,049

 

12.3%

Interest expense, net

 

305

 

0.0%

 

382

 

0.0%

 

828

 

0.0%

 

1,344

 

0.0%

Other (income) expense, net

 

13

 

0.0%

 

-

 

-

 

(32)

 

(0.0)%

 

(2,498)

 

(0.1)%

Income before income taxes

 

150,022

 

10.0%

 

$147,477

 

10.7%

 

534,059

 

11.9%

 

$513,203

 

12.3%

                                 
                                 
                                 

All Acute Care Hospital Services

                               
                                 
   

Three months ended

 

Three months ended

 

Nine months ended

 

Nine months ended

   

September 30, 2019

 

September 30, 2018

 

September 30, 2019

 

September 30, 2018

   

Amount

 

% of Net
Revenues

 

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues

 

Amount

 

% of Net
Revenues 

Net revenues

 

$1,528,535

 

100.0%

 

$1,383,050

 

100.0%

 

$4,575,088

 

100.0%

 

$4,232,673

 

100.0%

Operating charges:

                               

Salaries, wages and benefits

 

653,792

 

42.8%

 

596,932

 

43.2%

 

1,897,144

 

41.5%

 

1,762,826

 

41.6%

Other operating expenses

 

370,325

 

24.2%

 

320,317

 

23.2%

 

1,099,625

 

24.0%

 

988,279

 

23.3%

Supplies expense

 

263,462

 

17.2%

 

235,272

 

17.0%

 

777,309

 

17.0%

 

718,543

 

17.0%

Depreciation and amortization

 

76,318

 

5.0%

 

68,647

 

5.0%

 

226,489

 

5.0%

 

207,962

 

4.9%

Lease and rental expense

 

16,235

 

1.1%

 

14,052

 

1.0%

 

45,270

 

1.0%

 

43,043

 

1.0%

Subtotal-operating expenses

 

1,380,132

 

90.3%

 

1,235,220

 

89.3%

 

4,045,837

 

88.4%

 

3,720,653

 

87.9%

Income from operations

 

148,403

 

9.7%

 

147,830

 

10.7%

 

529,251

 

11.6%

 

512,020

 

12.1%

Interest expense, net

 

305

 

0.0%

 

382

 

0.0%

 

828

 

0.0%

 

1,344

 

0.0%

Other (income) expense, net

 

13

 

0.0%

 

-

 

-

 

(32)

 

(0.0)%

 

(2,498)

 

(0.1)%

Income before income taxes

 

148,085

 

9.7%

 

$147,448

 

10.7%

 

528,455

 

11.6%

 

$513,174

 

12.1%

                                 
                                 

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 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, 2018 and Form 10-Q for the quarter ended June 30, 2019.

                                 

The All Acute Care Hospital Servicestable 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.

                                 

 

 

 

Universal Health Services, Inc.

Behavioral Health Care Services

For the three and nine months ended

September 30, 2019 and 2018

(in thousands)

                                 
                                 

Same Facility - Behavioral Health Care Services

                               
                                 
   

Three months ended

 

Three months ended

 

Nine months ended

 

Nine months ended

   

September 30, 2019

 

September 30, 2018

 

September 30, 2019

 

September 30, 2018

   

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

Net revenues

 

$1,256,549

 

100.0%

 

$1,230,406

 

100.0%

 

$3,770,023

 

100.0%

 

$3,673,717

 

100.0%

Operating charges:

                               

Salaries, wages and benefits

 

679,995

 

54.1%

 

651,145

 

52.9%

 

2,000,128

 

53.1%

 

1,924,344

 

52.4%

Other operating expenses

 

238,637

 

19.0%

 

237,698

 

19.3%

 

707,624

 

18.8%

 

701,869

 

19.1%

Supplies expense

 

50,301

 

4.0%

 

49,291

 

4.0%

 

148,418

 

3.9%

 

146,842

 

4.0%

Depreciation and amortization

 

40,688

 

3.2%

 

39,134

 

3.2%

 

119,655

 

3.2%

 

113,606

 

3.1%

Lease and rental expense

 

11,202

 

0.9%

 

11,296

 

0.9%

 

33,125

 

0.9%

 

34,520

 

0.9%

Subtotal-operating expenses

 

1,020,823

 

81.2%

 

988,564

 

80.3%

 

3,008,950

 

79.8%

 

2,921,181

 

79.5%

Income from operations

 

235,726

 

18.8%

 

241,842

 

19.7%

 

761,073

 

20.2%

 

752,536

 

20.5%

Interest expense, net

 

359

 

0.0%

 

397

 

0.0%

 

1,103

 

0.0%

 

1,234

 

0.0%

Other (income) expense, net

 

1,058

 

0.1%

 

1,325

 

0.1%

 

1,058

 

0.0%

 

1,325

 

0.0%

Income before income taxes

 

$234,309

 

18.6%

 

$240,120

 

19.5%

 

$758,912

 

20.1%

 

$749,977

 

20.4%

                                 
                                 
                                 

All Behavioral Health Care Services

                               
                                 
   

Three months ended

 

Three months ended

 

Nine months ended

 

Nine months ended

   

September 30, 2019

 

September 30, 2018

 

September 30, 2019

 

September 30, 2018

   

Amount

 

% of Net
Revenues

 

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues

 

Amount

 

% of Net
Revenues 

Net revenues

 

$1,291,816

 

100.0%

 

$1,262,472

 

100.0%

 

$3,898,440

 

100.0%

 

$3,774,551

 

100.0%

Operating charges:

                               

Salaries, wages and benefits

 

690,084

 

53.4%

 

661,240

 

52.4%

 

2,049,731

 

52.6%

 

1,955,220

 

51.8%

Other operating expenses

 

363,328

 

28.1%

 

262,337

 

20.8%

 

891,250

 

22.9%

 

778,698

 

20.6%

Supplies expense

 

50,692

 

3.9%

 

49,958

 

4.0%

 

149,809

 

3.8%

 

148,965

 

3.9%

Depreciation and amortization

 

42,436

 

3.3%

 

40,718

 

3.2%

 

127,327

 

3.3%

 

118,948

 

3.2%

Lease and rental expense

 

11,822

 

0.9%

 

11,931

 

0.9%

 

35,185

 

0.9%

 

36,489

 

1.0%

Subtotal-operating expenses

 

1,158,362

 

89.7%

 

1,026,184

 

81.3%

 

3,253,302

 

83.5%

 

3,038,320

 

80.5%

Income from operations

 

133,454

 

10.3%

 

236,288

 

18.7%

 

645,138

 

16.5%

 

736,231

 

19.5%

Interest expense, net

 

359

 

0.0%

 

397

 

0.0%

 

1,103

 

0.0%

 

1,234

 

0.0%

Other (income) expense, net

 

(4,924)

 

(0.4)%

 

1,721

 

0.1%

 

(4,138)

 

(0.1)%

 

636

 

0.0%

Income before income taxes

 

$138,019

 

10.7%

 

$234,170

 

18.5%

 

$648,173

 

16.6%

 

$734,361

 

19.5%

                                 
                                 

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 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 in the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2018 and Form 10-Q for the quarter ended June 30, 2019.

                                 

The All Behavioral Health Care Servicestable 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 as well as the results of certain facilities that were closed or restructured during the past year.

                                 

 

 

 

Universal Health Services, Inc.

Selected Hospital Statistics

For the three months ended

September 30, 2019 and 2018

                         
                         

AS REPORTED:

                       
                         
                         
   

ACUTE

 

BEHAVIORAL HEALTH

   

9/30/19

 

9/30/18

 

%  change

 

9/30/19

 

9/30/18

 

%  change

                         

Hospitals owned and leased

 

26

 

26

 

0.0%

 

327

 

324

 

0.9%

Average licensed beds

 

6,387

 

6,213

 

2.8%

 

23,637

 

23,612

 

0.1%

Average available beds

 

6,211

 

6,037

 

2.9%

 

23,536

 

23,528

 

0.0%

Patient days

 

356,914

 

336,093

 

6.2%

 

1,623,465

 

1,618,280

 

0.3%

Average daily census

 

3,879.5

 

3,653.2

 

6.2%

 

17,646.4

 

17,590.0

 

0.3%

Occupancy-licensed beds

 

60.7%

 

58.8%

 

3.3%

 

74.7%

 

74.5%

 

0.2%

Occupancy-available beds

 

62.5%

 

60.5%

 

3.2%

 

75.0%

 

74.8%

 

0.3%

Admissions

 

79,285

 

74,357

 

6.6%

 

122,709

 

122,212

 

0.4%

Length of stay

 

4.5

 

4.5

 

-0.4%

 

13.2

 

13.2

 

-0.1%

                         

Inpatient revenue

 

$7,004,832

 

$6,009,303

 

16.6%

 

$2,536,504

 

$2,459,078

 

3.1%

Outpatient revenue

 

4,477,277

 

3,694,389

 

21.2%

 

257,690

 

242,167

 

6.4%

Total patient revenue

 

11,482,109

 

9,703,692

 

18.3%

 

2,794,194

 

2,701,245

 

3.4%

Other revenue

 

114,026

 

99,094

 

15.1%

 

57,602

 

51,096

 

12.7%

Gross hospital revenue

 

11,596,135

 

9,802,786

 

18.3%

 

2,851,796

 

2,752,341

 

3.6%

Total deductions

 

10,067,600

 

8,419,736

 

19.6%

 

1,559,980

 

1,489,869

 

4.7%

Net hospital revenue 

 

$1,528,535

 

$1,383,050

 

10.5%

 

$1,291,816

 

$1,262,472

 

2.3%

                         
                         

SAME FACILITY:

                       
                         
   

ACUTE

 

BEHAVIORAL HEALTH

   

9/30/19

 

9/30/18

 

%  change

 

9/30/19

 

9/30/18

 

%  change

                         

Hospitals owned and leased

 

26

 

26

 

0.0%

 

313

 

313

 

0.0%

Average licensed beds

 

6,387

 

6,213

 

2.8%

 

23,096

 

22,944

 

0.7%

Average available beds

 

6,211

 

6,037

 

2.9%

 

22,995

 

22,860

 

0.6%

Patient days

 

356,914

 

336,093

 

6.2%

 

1,593,992

 

1,593,458

 

0.0%

Average daily census

 

3,879.5

 

3,653.2

 

6.2%

 

17,326.0

 

17,320.2

 

0.0%

Occupancy-licensed beds

 

60.7%

 

58.8%

 

3.3%

 

75.0%

 

75.5%

 

-0.6%

Occupancy-available beds

 

62.5%

 

60.5%

 

3.2%

 

75.3%

 

75.8%

 

-0.6%

Admissions

 

79,285

 

74,357

 

6.6%

 

121,290

 

121,124

 

0.1%

Length of stay

 

4.5

 

4.5

 

-0.4%

 

13.1

 

13.2

 

-0.1%

                         

 

 

 

Universal Health Services, Inc.

Selected Hospital Statistics

For the nine months ended

September 30, 2019 and 2018

                         
                         

AS REPORTED:

                       
                         
                         
   

ACUTE

 

BEHAVIORAL HEALTH

   

9/30/19

 

9/30/18

 

%  change

 

9/30/19

 

9/30/18

 

%  change