Universal Health Services, Inc. Reports 2020 Third Quarter Financial Results

10/29/2020
Microphone Webcast - Live
Q3 2020 Universal Health Services Earnings Conference Call
10/30/20 at 10:00 a.m. ET
Consolidated Results of Operations, As Reported and As Adjusted - Three-month periods ended September 30, 2020 and 2019:

KING OF PRUSSIA, Pa., Oct. 29, 2020 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $241.3 million, or $2.82 per diluted share, during the third quarter of 2020, as compared to $97.2 million, or $1.10 per diluted share, during the comparable quarter of 2019.  Net revenues increased 3.2% to $2.913 billion during the third quarter of 2020 as compared to $2.822 billion during the third quarter of 2019.

As reflected on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our adjusted net income attributable to UHS during the third quarter of 2020 was $246.5 million, or $2.88 per diluted share, as compared to $176.3 million, or $1.99 per diluted share, during the third quarter of 2019. 

Included in our reported and adjusted net income attributable to UHS during the three-month period ended September 30, 2020 were the following:

  • A favorable impact of approximately $21.4 million, or $0.25 per diluted share, resulting from $28 million of net revenues recorded in connection with the California Medicaid supplemental payment program related to our acute care hospitals. Approximately $11 million of these supplemental revenues were attributable to the first nine months of 2020 and $17 million were attributable to prior years, and;
  • An unfavorable impact of approximately $4.7 million, or $0.06 per diluted share, resulting from a reversal of previously recorded grant income revenues of approximately $5 million, as provided for by the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), as discussed below in CARES Act and Other Governmental Grants and Medicare Accelerated Payments.

As reflected on the Supplemental Schedule, included in our reported results during the third quarter of 2020, was a net aggregate unfavorable after-tax impact of $5.2 million, or $.06 per diluted share, consisting of the following: (i) an after-tax unrealized loss of $2.1 million, or $.02 per diluted share, ($2.7 million pre-tax which is included in "Other (income) expense, net"), resulting from a decrease in the market value of shares of certain marketable securities held for investment and classified as available for sale, and; (ii) a unfavorable after-tax impact of $3.1 million, or $.04 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 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 recorded in connection with Foundations Recovery Network, L.L.C.; (ii) an unfavorable after-tax impact of $6.2 million, or $.07 per diluted share, resulting from the non-deductible portion of the net federal and state income taxes due on the settlement finalized in July, 2020 with the Department of Justice, Civil Division, and; (iii) a favorable after-tax impact of $1.7 million, or $.02 per diluted share, resulting from our adoption of ASU 2016-09.

Included in our reported and our adjusted net income attributable to UHS during the third quarter of 2019 is a pre-tax unrealized loss of $15.2 million, or $.13 per diluted share (included in "Other (income) expense, net"), resulting from a decrease in the market value of shares of certain marketable securities held for investment and classified as available for sale.  

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 $471.0 million during the third quarter of 2020, as compared to $297.4 million during the third quarter of 2019. Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impact of other (income) expense, net, and the above-mentioned provision for asset impairment recorded during the third quarter of 2019, was $472.8 million during the third quarter of 2020 as compared to $404.4 million during the third quarter of 2019.

COVID-19

The impact of the COVID-19 pandemic, which began during the second half of March, 2020, has had a material unfavorable effect on our operations and financial results since that time, before giving effect to the revenues recorded in connection with the CARES Act and other governmental grants as discussed below in CARES Act and Other Governmental Grants and Medicare Accelerated Payments. Patient volumes at both our acute care and behavioral health care facilities were most significantly reduced in March and April. Our acute care and behavioral health facilities began experiencing gradual and continued improvement in patient volumes since May as various states eased stay-at-home restrictions and acute care hospitals were permitted to resume elective surgeries and procedures.  Although many of our acute care and behavioral health facilities are located in states that have continued to experience intermittent increases in COVID-19 infections, non-COVID-19 patient volumes at our hospitals have not been as dramatically impacted in recent months by increases experienced from time-to-time in COVID-19 patient volumes. We believe that the adverse impact that COVID-19 will have on our future operations and financial results will depend upon many factors, most of which are beyond our capability to control or predict. 

Consolidated Results of Operations, As Reported and As Adjusted  – Nine-month periods ended September 30, 2020 and 2019:

Reported net income attributable to UHS was $635.2 million, or $7.40 per diluted share, during the nine-month period ended September 30, 2020, as compared to $569.7 million, or $6.35 per diluted share, during the first nine months of 2019.  Net revenues decreased slightly to $8.472 billion during the first nine months of 2020 as compared to $8.482 billion during the comparable period of 2019.

As reflected on the Supplemental Schedule, our adjusted net income attributable to UHS during the nine-month period ended September 30, 2020 was $646.9 million, or $7.53 per diluted share, as compared to $646.7 million, or $7.21 per diluted share, during the first nine months of 2019. 

Our reported and adjusted net income attributable to UHS during the nine-month period ended September 30, 2020 included the following:

  • A favorable impact of $157.2 million, or $1.84 per diluted share, resulting from the recording of approximately $213 million of grant income revenues, as discussed below in CARES Act and Other Governmental Grants and Medicare Accelerated Payments, and;
  • A favorable impact of $21.4 million, or $0.25 per diluted share, resulting from the above-mentioned $28 million of net revenues recorded during the third quarter of 2020 in connection with the California Medicaid supplemental payment program.

As reflected on the Supplemental Schedule, included in our reported results during the nine-month period ended September 30, 2020, was a net aggregate unfavorable after-tax impact of $11.6 million, or $.13 per diluted share, consisting of the following: (i) an after-tax unrealized loss of $7.2 million, or $.08 per diluted share, ($9.4 million pre-tax which is included in "Other (income) expense, net"), resulting from a decrease in the market value of shares of certain marketable securities held for investment and classified as available for sale, and; (ii) an unfavorable after-tax impact of $4.4 million, or $.05 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, 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 recorded in connection with Foundations Recovery Network, L.L.C.; (ii) an unfavorable after-tax impact of $14.6 million, or $.16 per diluted share, resulting from the non-deductible portion of the net federal and state income taxes due on the settlement finalized in July, 2020 with the Department of Justice, Civil Division, and; (iii) a favorable after-tax impact of $12.1 million, or $.14 per diluted share, resulting from our adoption of ASU 2016-09.

Included in our reported and our adjusted net income attributable to UHS during the nine-month period ended September 30, 2019 is a pre-tax unrealized loss of $12.5 million, or $.11 per diluted share (included in "Other (income) expense, net"), resulting from a decrease in the market value of shares of certain marketable securities held for investment and classified as available for sale.  

As calculated on the attached Supplemental Schedule, our EBITDA net of NCI was $1.303 billion during the first nine months of 2020, as compared to $1.222 billion during the first nine months of 2019. Our Adjusted EBITDA net of NCI, which excludes the impact of other (income) expense, net, and the increase in the Department of Justice settlement reserve and the provision for asset impairment, both of which were recorded during the first nine months of 2019, was $1.311 billion during the nine-month period ended September 30, 2020 and $1.336 billion during the comparable period of 2019.

Acute Care Services – Three and nine-month periods ended September 30, 2020 and 2019:

During the third quarter of 2020, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) decreased 17.3% and adjusted patient days decreased 1.6%, as compared to the third quarter of 2019. At these facilities, excluding the CARES Act and other grant income revenues of approximately $4 million recorded during the third quarter of 2020, net revenue per adjusted admission increased 26.2% while net revenue per adjusted patient day increased 6.0% during the third quarter of 2020 as compared to the third quarter of 2019. During the third quarter of 2020, as compared to the third quarter of 2019, net revenues generated from our acute care services on a same facility basis increased 5.5% including the impact of the CARES Act and other grant income revenues, and increased 5.2% excluding the impact of the CARES Act and other grant income revenues.

During the nine-month period ended September 30, 2020, at our acute care hospitals on a same facility basis, adjusted admissions decreased 15.4% and adjusted patient days decreased 6.6%, as compared to the first nine months of 2019. At these facilities, excluding the CARES Act and other grant income revenues of approximately $161 million recorded during the first nine months of 2020, net revenue per adjusted admission increased 13.8% while net revenue per adjusted patient day increased 3.0% during the nine-month period ended September 30, 2020 as compared to the comparable nine-month period of 2019. During the first nine months of 2020, as compared to the comparable period of 2019, net revenues generated from our acute care services on a same facility basis increased 0.8% including the CARES Act and other grant income revenues, and decreased 2.8% excluding the CARES Act and other grant income revenues.

Behavioral Health Care Services – Three and nine-month periods ended September 30, 2020 and 2019:

During the third quarter of 2020, at our behavioral health care facilities on a same facility basis, adjusted admissions decreased 5.6% while adjusted patient days decreased 3.6% as compared to the third quarter of 2019. At these facilities, excluding the impact of the CARES Act and other grant income revenue reversal of approximately $9 million recorded during the third quarter of 2020, net revenue per adjusted admission increased 8.0% while net revenue per adjusted patient day increased 5.7% during the third quarter of 2020 as compared to the comparable quarter in 2019. During the third quarter of 2020, as compared to the third quarter of 2019, net revenues generated from our behavioral health care services on a same facility basis increased 1.2% including the impact of the CARES Act and other grant income revenue reversal, and increased 1.9% excluding the impact of the CARES Act and other grant income revenue reversal.     

During the nine-month period ended September 30, 2020, at our behavioral health care facilities on a same facility basis, adjusted admissions decreased 7.6% and adjusted patient days decreased 5.1%, as compared to the first nine months of 2019. At these facilities, excluding the CARES Act and other grant income revenues of approximately $52 million recorded during the first nine months of 2020, net revenue per adjusted admission increased 6.6% while net revenue per adjusted patient day increased 3.8% during the first nine months of 2020 as compared to the comparable period of 2019. During the first nine months of 2020, as compared to the comparable period of 2019, net revenues generated from our behavioral health care services on a same facility basis decreased 0.2% including the CARES Act and other grant income revenues, and decreased 1.5% excluding the CARES Act and other grant income revenues.

Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

For the nine months ended September 30, 2020, our net cash provided by operating activities increased to $2.218 billion as compared to $1.105 billion generated during the first nine months of 2019.

The $1.113 billion net increase was due to: (i) a favorable change of $878 million resulting from the Medicare accelerated payments and deferred CARES Act and other grants; (ii) a favorable change of $111 million due to the payment deferral of the employer's share of Social Security taxes, as provided for by the CARES Act; (iii) a favorable change of $52 million in accrued and deferred income taxes; (iv) a favorable change of $49 million in accounts receivable; (v) a favorable change $30 million in other working capital accounts due primarily to the timing of accounts payable disbursements, and; (vi) $7 million of other combined net unfavorable changes.   

Liquidity:

As of September 30, 2020, there were no borrowings outstanding pursuant to our $1 billion revolving credit facility or our $450 million accounts receivable securitization program.  As of that date, we had $1.447 billion of aggregate available borrowing capacity pursuant to the terms of these debt facilities, net of outstanding letters of credit.    

In addition, as of September 30, 2020, we had approximately $1.101 billion of cash and cash equivalents.  

CARES Act and Other Governmental Grants and Medicare Accelerated Payments:

As of September 30, 2020, we have received an aggregate of $1.091 billion as follows:

  • Approximately $396 million of funds received from various governmental stimulus programs, most notably the Public Health and Social Services Emergency Fund, as provided for by the CARES Act.
    • Included in our reported and adjusted net income attributable to UHS for the three-month period ended September 30, 2020, was an unfavorable impact of $4.7 million, or $0.06 per diluted share, resulting from a reversal of previously recorded CARES Act and other grant income revenues of approximately $5 million. During the third quarter of 2020, approximately $4 million of grant income revenues were recorded by our acute care services, while our behavioral health services reversed approximately $9 million of previously recorded CARES Act and other grant income revenues.
    • Included in our reported and adjusted net income attributable to UHS for the nine-month period ended September 30, 2020, was the favorable impact of $157.2 million, or $1.84 per diluted share, resulting from the recording of approximately $213 million of CARES Act and other grant income revenues. Approximately $161 million of the grant income revenues were attributable to our acute care services and approximately $52 million were attributable to our behavioral health care services.
    • As of September 30, 2020, approximately $183 million of these funds remain in the Medicare accelerated payments and deferred CARES Act and other grants liability account in our condensed consolidated balance sheet.
  • Approximately $695 million of Medicare accelerated payments received. Pursuant to legislation enacted on October 1, 2020, these funds are required to be repaid to the government beginning in the second quarter of 2021 through the third quarter of 2022 through withholding of future Medicare revenues earned during those periods. There was no impact on our earnings during the three and nine-month periods ended September 30, 2020 in connection with receipt of these funds. As of September 30, 2020, the funds are included in the Medicare accelerated payments and deferred CARES Act and other grants liability account in our condensed balance sheet.

We recognized grant income net revenues related to the CARES Act and other governmental grant funding based on information available at September 30, 2020 based upon laws and regulations governing the funding as well as interpretations issued by the Department of Health and Human Services ("HHS").  In October 2020, HHS issued new reporting requirements for the CARES Act funding. Due to these new reporting requirements and various interpretations, there is at least a reasonable possibility that amounts recorded under CARES Act funding will change in future periods. 

Update on Previously Disclosed Information Technology Incident:

As previously disclosed on September 29, 2020, we experienced an information technology security incident in the early morning hours of September 27, 2020. As a result of this cyberattack, we suspended user access to our information technology applications related to operations located in the United States. While our information technology applications were offline, patient care was delivered safely and effectively at our facilities across the country utilizing established back-up processes, including offline documentation methods.

Since that time, our information technology applications have been restored at our acute care and behavioral health hospitals, as well as at the corporate level, thereby re-establishing connections to all major systems and applications, including electronic medical records, laboratory and pharmacy systems. With the back-loading of data substantially complete at this point, our hospitals are resuming normal operations.

We have worked diligently with our information technology security partners to restore our information technology infrastructure and business operations as quickly as possible.  In parallel, we immediately began investigating the nature and potential impact of the security incident and engaged third-party information technology and forensic vendors to assist. Although the investigation remains ongoing, no evidence of unauthorized access, copying or misuse of any patient or employee data has been identified to date.  

Conference call information:

We will hold a conference call for investors and analysts at 10:00 a.m. eastern time on October 30, 2020. 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.

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 approximately $11.4 billion during 2019. In 2020, UHS was again recognized as one of the World's Most Admired Companies by Fortune; ranked #281 on the Fortune 500; and listed #330 in Forbes ranking of U.S.' Largest 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 90,000 employees and through its subsidiaries operates 26 acute care hospitals, 330 behavioral health facilities, 41 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 the anticipated impact of COVID-19 on our operations and financial results, 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-Q for the quarterly period ended June 30, 2020), 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 the impact of the COVID-19 pandemic. Our future operations and financial results will likely be materially impacted by developments related to COVID-19 including, but not limited to, the length of time and severity of the spread of the pandemic; the volume of cancelled or rescheduled elective procedures and the volume of COVID-19 patients treated at our hospitals and other healthcare facilities; measures we are taking to respond to the COVID-19 pandemic; the impact of government and administrative regulation and stimulus on the hospital industry and potential retrospective adjustment in future periods of CARES Act and other grant income revenues recorded as revenues in prior periods; declining patient volumes and unfavorable changes in payer mix caused by deteriorating macroeconomic conditions (including increases in uninsured and underinsured patients as the result of business closings and layoffs); potential disruptions to our clinical staffing and shortages and disruptions related to supplies required for our employees and patients; and potential increases to expenses related to staffing, supply chain or other expenditures; the impact of our substantial indebtedness and the ability to refinance such indebtedness on acceptable terms, as well as risks associated with disruptions in the financial markets and the business of financial institutions as the result of the COVID-19 pandemic which could impact us from a financing perspective; and changes in general economic conditions nationally and regionally in our markets resulting from the COVID-19 pandemic. We are not able to fully quantify the impact that these factors will have on our future financial results, but expect developments related to the COVID-19 pandemic to materially affect our financial performance in 2020.  In addition, although we are unable to quantify the ultimate impact of the above-mentioned information technology security incident that we experienced in late September, 2020, the incident could have an adverse effect on our future results of operations.

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, our adoption of ASU 2016-09, unrealized gains/losses resulting from changes in the market value of shares of certain marketable securities held for investment and classified as available for sale, 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, changes in the reserve established in connection with our discussions with the Department of Justice, 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, 2019 and Form 10-Q for the quarterly period ended June 30, 2020. 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,

 

2020

 

2019

 

2020

 

2019

               

Net revenues

$2,912,541

 

$2,822,453

 

$8,471,962

 

$8,482,012

               

Operating charges:

             

   Salaries, wages and benefits

1,406,348

 

1,408,226

 

4,147,027

 

4,157,253

   Other operating expenses

666,665

 

762,174

 

1,982,202

 

2,079,518

   Supplies expense

335,409

 

313,936

 

936,808

 

927,256

   Depreciation and amortization

125,961

 

121,528

 

376,563

 

362,736

   Lease and rental expense

28,488

 

27,660

 

84,967

 

80,320

 

2,562,871

 

2,633,524

 

7,527,567

 

7,607,083

               

Income from operations

349,670

 

188,929

 

944,395

 

874,929

               

Interest expense, net

24,575

 

41,447

 

86,399

 

123,574

Other (income) expense, net

1,831

 

9,407

 

8,291

 

6,176

               

Income before income taxes

323,264

 

138,075

 

849,705

 

745,179

               

Provision for income taxes

79,172

 

37,205

 

204,649

 

165,646

               

Net income

244,092

 

100,870

 

645,056

 

579,533

               

Less:  Net income attributable to

             

noncontrolling interests ("NCI")

2,813

 

3,680

 

9,811

 

9,855

               

Net income attributable to UHS

$241,279

 

$97,190

 

$635,245

 

$569,678

               
               
               
               
               
               

Basic earnings per share attributable to UHS (a)

$2.84

 

$1.10

 

$7.44

 

$6.36

               

Diluted earnings per share attributable to UHS (a)

$2.82

 

$1.10

 

$7.40

 

$6.35

 

 

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,

 

2020

 

2019

 

2020

 

2019

Basic and diluted:

             

Net income attributable to UHS

$241,279

 

$97,190

 

$635,245

 

$569,678

Less: Net income attributable to unvested restricted share grants

(790)

 

(243)

 

(1,987)

 

(1,414)

Net income attributable to UHS - basic and diluted

$240,489

 

$96,947

 

$633,258

 

$568,264

               

Weighted average number of common shares - basic

84,672

 

87,952

 

85,172

 

89,288

               

Basic earnings per share attributable to UHS:

$2.84

 

$1.10

 

$7.44

 

$6.36

               

Weighted average number of common shares

84,672

 

87,952

 

85,172

 

89,288

Add: Other share equivalents

575

 

403

 

415

 

231

Weighted average number of common shares and equiv. - diluted

85,247

 

88,355

 

85,587

 

89,519

               

Diluted earnings per share attributable to UHS:

$2.82

 

$1.10

 

$7.40

 

$6.35

 

 

 

Universal Health Services, Inc.

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

For the Three Months ended September 30, 2020 and 2019

(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, 2020

 

revenues

 

September 30, 2019

 

revenues

               

Net income attributable to UHS

$241,279

     

$97,190

   

   Depreciation and amortization

125,961

     

121,528

   

   Interest expense, net

24,575

     

41,447

   

   Provision for income taxes

79,172

     

37,205

   

EBITDA net of NCI

$470,987

 

16.2%

 

$297,370

 

10.5%

               

Other (income) expense, net

1,831

     

9,407

   

Provision for asset impairment

-

     

97,631

   

Adjusted EBITDA net of NCI

$472,818

 

16.2%

 

$404,408

 

14.3%

               

Net revenues

$2,912,541

     

$2,822,453

   
               
               
               
               
               

Calculation of Adjusted Net Income Attributable to UHS

               
 

Three months ended

 

Three months ended

 

September 30, 2020

 

September 30, 2019

     

Per

     

Per

 

Amount

 

Diluted Share

 

Amount

 

Diluted Share

               

Net income attributable to UHS

$241,279

 

$2.82

 

$97,190

 

$1.10

Plus/minus after-tax adjustments:

             

Unrealized loss on marketable securities held for sale

2,066

 

0.02

 

-

 

-

Increase in DOJ Reserve and related income taxes

-

 

-

 

6,214

 

0.07

Impact of ASU 2016-09

3,137

 

0.04

 

(1,724)

 

(0.02)

Provision for asset impairment

-

 

-

 

74,583

 

0.84

Subtotal adjustments

5,203

 

0.06

 

79,073

 

0.89

Adjusted net income attributable to UHS

$246,482

 

$2.88

 

$176,263

 

$1.99

 

 

 

Universal Health Services, Inc.

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

For the Nine Months ended September 30, 2020 and 2019

(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, 2020

 

revenues

 

September 30, 2019

 

revenues

               

Net income attributable to UHS

$635,245

     

$569,678

   

   Depreciation and amortization

376,563

     

362,736

   

   Interest expense, net

86,399

     

123,574

   

   Provision for income taxes

204,649

     

165,646

   

EBITDA net of NCI

$1,302,856

 

15.4%

 

$1,221,634

 

14.4%

               

Other (income) expense, net

8,291

     

6,176

   

Increase in DOJ Reserve

-

     

10,978

   

Provision for asset impairment

-

     

97,631

   

Adjusted EBITDA net of NCI

$1,311,147

 

15.5%

 

$1,336,419

 

15.8%

               

Net revenues

$8,471,962

     

$8,482,012

   
               
               
               
               
               

Calculation of Adjusted Net Income Attributable to UHS

               
 

Nine months ended

 

Nine months ended

 

September 30, 2020

 

September 30, 2019

     

Per

     

Per

 

Amount

 

Diluted Share

 

Amount

 

Diluted Share

               

Net income attributable to UHS

$635,245

 

$7.40

 

$569,678

 

$6.35

Plus/minus after-tax adjustments:

             

Unrealized loss on marketable securities held for sale

7,193

 

0.08

 

-

 

-

Increase in DOJ Reserve and related income taxes

-

 

-

 

14,583

 

0.16

Impact of ASU 2016-09

4,412

 

0.05

 

(12,122)

 

(0.14)

Provision for asset impairment

-

 

-

 

74,583

 

0.84

Subtotal adjustments

11,605

 

0.13

 

77,044

 

0.86

Adjusted net income attributable to UHS

$646,850

 

$7.53

 

$646,722

 

$7.21

 

 

Universal Health Services, Inc.

Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)

               
 

Three months

 

Nine months

 

ended September 30,

 

ended September 30,

 

2020

 

2019

 

2020

 

2019

               

Net income

$244,092

 

$100,870

 

$645,056

 

$579,533

Other comprehensive income (loss):

             

   Unrealized derivative gains (losses) on cash flow hedges

0

 

0

 

0

 

(3,925)

   Foreign currency translation adjustment

14,245

 

(10,089)

 

(18,280)

 

(19,192)

Other comprehensive income (loss) before tax

14,245

 

(10,089)

 

(18,280)

 

(23,117)

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

302

 

174

 

(908)

 

(676)

Total other comprehensive income (loss), net of tax

13,943

 

(10,263)

 

(17,372)

 

(22,441)

               

Comprehensive income

258,035

 

90,607

 

627,684

 

557,092

Less: Comprehensive income attributable to noncontrolling interests

2,813

 

3,680

 

9,811

 

9,855

Comprehensive income attributable to UHS

$255,222

 

$86,927

 

$617,873

 

$547,237

 

 

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

               
     

September 30,

   

December 31,

 
     

2020

   

2019

 

Assets

             

Current assets:

             

    Cash and cash equivalents

 

$

1,101,230

 

$

61,268

 

    Accounts receivable, net

   

1,574,751

   

1,560,847

 

    Supplies

   

176,105

   

159,889

 

    Other current assets

   

143,072

   

133,930

 

          Total current assets

   

2,995,158

   

1,915,934

 
               

Property and equipment

   

9,652,778

   

9,106,377

 

Less: accumulated depreciation

   

(4,403,941)

   

(4,089,679)

 
     

5,248,837

   

5,016,698

 
               

Other assets:

             

 Goodwill

   

3,854,265

   

3,869,760

 

    Deferred income taxes

   

19,936

   

16,189

 

    Right of use assets-operating leases

   

330,172

   

326,518

 

    Deferred charges

   

5,136

   

6,373

 

    Other

   

556,258

   

516,778

 

Total Assets

 

$

13,009,762

 

$

11,668,250

 
               

Liabilities and Stockholders' Equity

             

Current liabilities:

             

    Current maturities of long-term debt

 

$

94,504

 

$

87,550

 

    Accounts payable and other liabilities

   

1,625,262

   

1,272,374

 

    Medicare accelerated payments and deferred CARES Act and other grants

 

878,480

   

0

 

    Legal reserves

   

5,426

   

144,509

 

    Operating lease liabilities

   

57,219

   

56,442

 

    Federal and state taxes

   

7,335

   

2,515

 

          Total current liabilities

   

2,668,226

   

1,563,390

 
               

Other noncurrent liabilities

   

488,457

   

329,932

 

Operating lease liabilities noncurrent

   

274,236

   

270,076

 

Long-term debt

   

3,514,673

   

3,896,577

 

Deferred income taxes

   

24,895

   

25,071

 
               

Redeemable noncontrolling interest

   

4,177

   

4,333

 
               

UHS common stockholders' equity

   

5,962,788

   

5,504,105

 

Noncontrolling interest

   

72,310

   

74,766

 

          Total equity

   

6,035,098

   

5,578,871

 
               

Total Liabilities and Stockholders' Equity

 

$

13,009,762

 

$

11,668,250

 

 

 

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

Nine months

   
 

ended September 30,

 

2020

 

2019

       

Cash Flows from Operating Activities:

     

  Net income

$645,056

 

$579,533

  Adjustments to reconcile net income to net 

     

cash provided by operating activities:

     

Depreciation & amortization

376,563

 

362,736

(Gain) loss on sale of assets and businesses

2,124

 

(5,982)

Stock-based compensation expense

49,928

 

52,167

Costs related to extinguishment of debt

1,365

 

0

Provision for asset impairment

0

 

97,631

  Changes in assets & liabilities, net of effects from

     

acquisitions and dispositions:

     

   Accounts receivable

11,431

 

(37,332)

   Accrued interest

(10,526)

 

(2,962)

   Accrued and deferred income taxes 

(2,095)

 

(53,714)

   Other working capital accounts 

119,948

 

90,262

   Medicare accelerated payments and deferred CARES Act and other grants

878,480

 

0

   Other assets and deferred charges

1,271

 

15,237

   Other 

115,431

 

(663)

   Accrued insurance expense, net of commercial premiums paid

113,571

 

76,245

   Payments made in settlement of self-insurance claims

(84,390)

 

(68,046)

          Net cash provided by operating activities

2,218,157

 

1,105,112

       

Cash Flows from Investing Activities:

     

   Property and equipment additions, net of disposals

(546,656)

 

(480,247)

   Proceeds received from sales of assets and businesses

7,851

 

7,497

   Acquisition of businesses and property

(52,009)

 

0

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

22,453

 

34,484

   Costs incurred for purchase and implementation of information technology applications

(5,345)

 

(18,240)

   Investment in, and advances to,  joint ventures and other

(997)

 

(11,949)

          Net cash used in investing activities

(574,703)

 

(468,455)

       

Cash Flows from Financing Activities:

     

   Reduction of long-term debt

(1,173,590)

 

(68,175)

   Additional borrowings

803,197

 

15,100

   Financing costs

(8,256)

 

0

   Repurchase of common shares

(200,098)

 

(587,976)

   Dividends paid

(17,344)

 

(35,556)

   Issuance of common stock

9,288

 

8,248

   Profit distributions to noncontrolling interests

(15,175)

 

(11,887)

   Purchase of ownership interests from minority members

(548)

 

0

          Net cash used in financing activities

(602,526)

 

(680,246)

       

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

(706)

 

(1,259)

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

1,040,222

 

(44,848)

Cash, cash equivalents and restricted cash, beginning of period

105,667

 

199,685

Cash, cash equivalents and restricted cash, end of period

$1,145,889

 

$154,837

       

Supplemental Disclosures of Cash Flow Information:

     

  Interest paid

$93,579

 

$122,699

       

  Income taxes paid, net of refunds

$208,460

 

$221,298

       

  Noncash purchases of property and equipment

$76,402

 

$83,552

       

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

$47,679

 

$364,453

 

Universal Health Services, Inc.

   

Supplemental Statistical Information

   

(unaudited)

   
     
                   
             

 % Change 

 

 % Change 

             

Quarter ended

 

9 months ended

Same Facility:

           

9/30/2020

 

9/30/2020

                   

Acute Care Hospitals

                 

Revenues (a)

           

5.5%

 

0.8%

Revenues-excludes CARES Act and other grant income

     

5.2%

 

-2.8%

Adjusted Admissions

           

-17.3%

 

-15.4%

Adjusted Patient Days

           

-1.6%

 

-6.6%

Revenue Per Adjusted Admission-excludes CARES Act and other grant income

 

26.2%

 

13.8%

Revenue Per Adjusted Patient Day-excludes CARES Act and other grant income

6.0%

 

3.0%

                   

Behavioral Health Hospitals

                 

Revenues (b)

           

1.2%

 

-0.2%

Revenues-excludes CARES Act and other grant income

     

1.9%

 

-1.5%

Adjusted Admissions

           

-5.6%

 

-7.6%

Adjusted Patient Days

           

-3.6%

 

-5.1%

Revenue Per Adjusted Admission-excludes CARES Act and other grant income

 

8.0%

 

6.6%

Revenue Per Adjusted Patient Day-excludes CARES Act and other grant income

5.7%

 

3.8%

                   

(a) Includes CARES Act and other grant income of $4 million and $161 million recorded in the three and nine-months periods ended September 30, 2020, respectively.

(b) Includes the reversal of CARES Act and other grant income of $9 million and CARES Act and other grant income of $52 million recorded in the three and nine-months periods ended September 30, 2020, respectively.

                   
                   

UHS Consolidated

   

third quarter ended

 

nine months ended

     

9/30/2020

 

9/30/2019

 

9/30/2020

 

9/30/2019

                   

Revenues

   

$2,912,541

 

$2,822,453

 

$8,471,962

 

$8,482,012

EBITDA net of NCI

   

$470,987

 

$297,370

 

$1,302,856

 

$1,221,634

EBITDA Margin net of NCI

   

16.2%

 

10.5%

 

15.4%

 

14.4%

Adjusted EBITDA net of NCI

   

$472,818

 

$404,408

 

$1,311,147

 

$1,336,419

Adjusted EBITDA Margin net of NCI

 

16.2%

 

14.3%

 

15.5%

 

15.8%

                   

Cash Flow From Operations

           

$2,218,157

 

$1,105,112

Days Sales Outstanding

           

51

 

50

Capital Expenditures  

           

$546,656

 

$480,247

                   

Debt 

           

$3,609,177

 

$3,948,371

UHS' Shareholders Equity

           

$5,962,788

 

$5,389,215

Debt / Total Capitalization

           

37.7%

 

42.3%

Debt / EBITDA net of NCI (1)

           

2.02

 

2.50

Debt / Adjusted EBITDA net of NCI (1)

       

2.03

 

2.21

Debt / Cash From Operations (1)

           

1.41

 

2.76

Net Debt / EBITDA net of NCI (1) (2)

         

1.40

   

Net Debt / Adjusted EBITDA net of NCI (1) (2)

     

1.41

   

Net Debt / Cash From Operations (1) (2)

       

0.98

   
                   

(1) Latest 4 quarters

(2) Debt, net of $1.101 billion of cash and cash equivalents as of September 30, 2020

 

 

Universal Health Services, Inc.

Acute Care Hospital Services

For the Three and Nine Months ended

September 30, 2020 and 2019

(in thousands)

                                 
                                 

Same Facility Basis - Acute Care Hospital Services

                               
                                 
   

Three months ended

 

Three months ended

 

Nine months ended

 

Nine months ended

   

September 30, 2020

 

September 30, 2019

 

September 30, 2020

 

September 30, 2019

   

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

Net revenues (a)

 

$1,585,142

 

100.0%

 

$1,502,891

 

100.0%

 

$4,528,364

 

100.0%

 

$4,493,296

 

100.0%

Operating charges:

                               

Salaries, wages and benefits

 

660,610

 

41.7%

 

653,792

 

43.5%

 

1,909,216

 

42.2%

 

1,897,144

 

42.2%

Other operating expenses

 

366,754

 

23.1%

 

344,681

 

22.9%

 

1,086,669

 

24.0%

 

1,017,833

 

22.7%

Supplies expense

 

283,829

 

17.9%

 

263,462

 

17.5%

 

781,778

 

17.3%

 

777,309

 

17.3%

Depreciation and amortization

 

78,388

 

4.9%

 

76,318

 

5.1%

 

234,756

 

5.2%

 

226,489

 

5.0%

Lease and rental expense

 

17,641

 

1.1%

 

16,235

 

1.1%

 

50,224

 

1.1%

 

45,270

 

1.0%

Subtotal-operating expenses

 

1,407,222

 

88.8%

 

1,354,488

 

90.1%

 

4,062,643

 

89.7%

 

3,964,045

 

88.2%

Income from operations

 

177,920

 

11.2%

 

148,403

 

9.9%

 

465,721

 

10.3%

 

529,251

 

11.8%

Interest expense, net

 

205

 

0.0%

 

305

 

0.0%

 

1,339

 

0.0%

 

828

 

0.0%

Other (income) expense, net

 

-

 

-

 

13

 

0.0%

 

-

 

-

 

(32)

 

(0.0)%

Income before income taxes

 

$177,715

 

11.2%

 

$148,085

 

9.9%

 

$464,382

 

10.3%

 

$528,455

 

11.8%

                                 
                                 
                                 

All Acute Care Hospital Services

                               
                                 
   

Three months ended

 

Three months ended

 

Nine months ended

 

Nine months ended

   

September 30, 2020

 

September 30, 2019

 

September 30, 2020

 

September 30, 2019

   

Amount

 

% of Net
Revenues

 

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues

 

Amount

 

% of Net
Revenues 

Net revenues (a)

 

$1,610,003

 

100.0%

 

$1,528,535

 

100.0%

 

$4,598,558

 

100.0%

 

$4,575,088

 

100.0%

Operating charges:

                               

Salaries, wages and benefits

 

660,694

 

41.0%

 

653,792

 

42.8%

 

1,909,415

 

41.5%

 

1,897,144

 

41.5%

Other operating expenses

 

391,642

 

24.3%

 

370,325

 

24.2%

 

1,156,909

 

25.2%

 

1,099,625

 

24.0%

Supplies expense

 

283,827

 

17.6%

 

263,462

 

17.2%

 

781,776

 

17.0%

 

777,309

 

17.0%

Depreciation and amortization

 

78,388

 

4.9%

 

76,318

 

5.0%

 

234,756

 

5.1%

 

226,489

 

5.0%

Lease and rental expense

 

17,641

 

1.1%

 

16,235

 

1.1%

 

50,224

 

1.1%

 

45,270

 

1.0%

Subtotal-operating expenses

 

1,432,192

 

89.0%

 

1,380,132

 

90.3%

 

4,133,080

 

89.9%

 

4,045,837

 

88.4%

Income from operations

 

177,811

 

11.0%

 

148,403

 

9.7%

 

465,478

 

10.1%

 

529,251

 

11.6%

Interest expense, net

 

205

 

0.0%

 

305

 

0.0%

 

1,339

 

0.0%

 

828

 

0.0%

Other (income) expense, net

 

-

 

-

 

13

 

0.0%

 

-

 

-

 

(32)

 

(0.0)%

Income before income taxes

 

$177,606

 

11.0%

 

$148,085

 

9.7%

 

$464,139

 

10.1%

 

$528,455

 

11.6%

                                 

(a) Includes CARES Act and other grant income of $4 million and $161 million recorded in the three and nine-months periods ended September 30, 2020, respectively.

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, 2019 and Form 10-Q for the quarter ended June 30, 2020.

                                 

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.

 

 

 

Universal Health Services, Inc.

Behavioral Health Care Services

For the Three and Nine Months ended

September 30, 2020 and 2019

(in thousands)

                                 
                                 

Same Facility - Behavioral Health Care Services

                               
                                 
   

Three months ended

 

Three months ended

 

Nine months ended

 

Nine months ended

   

September 30, 2020

 

September 30, 2019

 

September 30, 2020

 

September 30, 2019

   

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

Net revenues (a)

 

$1,276,975

 

100.0%

 

$1,261,774

 

100.0%

 

$3,801,606

 

100.0%

 

$3,807,798

 

100.0%

Operating charges:

                               

Salaries, wages and benefits

 

683,441

 

53.5%

 

683,345

 

54.2%

 

2,024,303

 

53.2%

 

2,027,271

 

53.2%

Other operating expenses

 

230,060

 

18.0%

 

239,548

 

19.0%

 

694,978

 

18.3%

 

714,310

 

18.8%

Supplies expense

 

51,811

 

4.1%

 

50,336

 

4.0%

 

153,827

 

4.0%

 

148,660

 

3.9%

Depreciation and amortization

 

43,985

 

3.4%

 

41,595

 

3.3%

 

130,258

 

3.4%

 

123,089

 

3.2%

Lease and rental expense

 

10,067

 

0.8%

 

10,910

 

0.9%

 

31,854

 

0.8%

 

32,248

 

0.8%

Subtotal-operating expenses

 

1,019,364

 

79.8%

 

1,025,734

 

81.3%

 

3,035,220

 

79.8%

 

3,045,578

 

80.0%

Income from operations

 

257,611

 

20.2%

 

236,040

 

18.7%

 

766,386

 

20.2%

 

762,220

 

20.0%

Interest expense, net

 

354

 

0.0%

 

359

 

0.0%

 

1,079

 

0.0%

 

1,103

 

0.0%

Other (income) expense, net

 

526

 

0.0%

 

1,058

 

0.1%

 

2,337

 

0.1%

 

1,842

 

0.0%

Income before income taxes

 

$256,731

 

20.1%

 

$234,623

 

18.6%

 

$762,970

 

20.1%

 

$759,275

 

19.9%

                                 
                                 
                                 

All Behavioral Health Care Services

                               
                                 
   

Three months ended

 

Three months ended

 

Nine months ended

 

Nine months ended

   

September 30, 2020

 

September 30, 2019

 

September 30, 2020

 

September 30, 2019

   

Amount

 

% of Net
Revenues

 

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues

 

Amount

 

% of Net
Revenues 

Net revenues (a)

 

$1,299,591

 

100.0%

 

$1,291,816

 

100.0%

 

$3,864,823

 

100.0%

 

$3,898,440

 

100.0%

Operating charges:

                               

Salaries, wages and benefits

 

684,575

 

52.7%

 

690,084

 

53.4%

 

2,027,223

 

52.5%

 

2,049,731

 

52.6%

Other operating expenses

 

253,779

 

19.5%

 

363,328

 

28.1%

 

765,006

 

19.8%

 

891,250

 

22.9%

Supplies expense

 

51,858

 

4.0%

 

50,692

 

3.9%

 

153,861

 

4.0%

 

149,809

 

3.8%

Depreciation and amortization

 

45,154

 

3.5%

 

42,436

 

3.3%

 

134,081

 

3.5%

 

127,327

 

3.3%

Lease and rental expense

 

10,734

 

0.8%

 

11,822

 

0.9%

 

34,151

 

0.9%

 

35,185

 

0.9%

Subtotal-operating expenses

 

1,046,100

 

80.5%

 

1,158,362

 

89.7%

 

3,114,322

 

80.6%

 

3,253,302

 

83.5%

Income from operations

 

253,491

 

19.5%

 

133,454

 

10.3%

 

750,501

 

19.4%

 

645,138

 

16.5%

Interest expense, net

 

433

 

0.0%

 

359

 

0.0%

 

1,184

 

0.0%

 

1,103

 

0.0%

Other (income) expense, net

 

526

 

0.0%

 

(4,924)

 

(0.4)%

 

2,337

 

0.1%

 

(4,138)

 

(0.1)%

Income before income taxes

 

$252,532

 

19.4%

 

$138,019

 

10.7%

 

$746,980

 

19.3%

 

$648,173

 

16.6%

                                 

(a) Includes the reversal of CARES Act and other grant income of $9 million and CARES Act and other grant income of $52 million recorded in the three and nine-months periods ended September 30, 2020, respectively.

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, lawsuits and reserves established in connection with the government's investigation of our behavioral health care facilities, 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, 2019 and Form 10-Q for the quarter ended June 30, 2020.

                                 

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 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, 2020 and 2019

         
                         
                         

AS REPORTED:

                       
                         
                         
   

ACUTE

 

BEHAVIORAL HEALTH

   

09/30/20

 

09/30/19

 

%  change

 

09/30/20

 

09/30/19

 

%  change

                         

Hospitals owned and leased

 

26

 

26

 

0.0%

 

330

 

327

 

0.9%

Average licensed beds

 

6,451

 

6,387

 

1.0%

 

23,566

 

23,637

 

-0.3%

Average available beds

 

6,279

 

6,211

 

1.1%

 

23,464

 

23,536

 

-0.3%

Patient days

 

383,958

 

356,914

 

7.6%

 

1,563,259

 

1,623,465

 

-3.7%

Average daily census

 

4,173.5

 

3,879.5

 

7.6%

 

16,991.9

 

17,646.4

 

-3.7%

Occupancy-licensed beds

 

64.7%

 

60.7%

 

6.5%

 

72.1%

 

74.7%

 

-3.4%

Occupancy-available beds

 

66.5%

 

62.5%

 

6.4%

 

72.4%

 

75.0%

 

-3.4%

Admissions

 

71,682

 

79,285

 

-9.6%

 

115,569

 

122,709

 

-5.8%

Length of stay

 

5.4

 

4.5

 

19.0%

 

13.5

 

13.2

 

2.2%

                         

Inpatient revenue

 

$8,137,264

 

$7,004,832

 

16.2%

 

$2,487,568

 

$2,536,504

 

-1.9%

Outpatient revenue

 

4,128,549

 

4,477,277

 

-7.8%

 

243,600

 

257,690

 

-5.5%

Total patient revenue

 

12,265,813

 

11,482,109

 

6.8%

 

2,731,168

 

2,794,194

 

-2.3%

Other revenue

 

127,396

 

114,026

 

11.7%

 

53,105

 

57,602

 

-7.8%

Gross hospital revenue

 

12,393,209

 

11,596,135

 

6.9%

 

2,784,273

 

2,851,796

 

-2.4%

Total deductions

 

10,783,206

 

10,067,600