Universal Health Services (UHS) saw its revenues rise but its profits dip during the third quarter of 2022, the acute and behavioral hospital operator reported Tuesday afternoon.
Net income attributable to UHS was $182.8 million ($2.50 per diluted share) for the quarter, down 16% from the $218.4 million ($2.60 per diluted share) of 2021’s same quarter.
Net revenues grew 5.7% year over year to $3.34 billion but were countered by a 7.7% increase in operating expenses ($3.06 billion).
The King of Prussia, Pennsylvania-based company said its operations continue to be impacted by COVID-19 and staffing shortages and noted that “certain facilities, particularly within our behavioral healthcare segment… have been unable to fill all vacant positions and, consequently, have been required to limit patient volumes” due to the labor crunch.
Still, the company held firm to 2022 projections from last quarter reflecting a sequential decline in staffing strain as well as incremental improvements in non-COVID patient volumes.
“We believe these assumptions will be bolstered by our continuing recruitment and retention initiatives, by changes to our historical patient care models, by other cost-cutting measures and by aggressive contractual negotiations and renegotiations with our managed care payers,” the system wrote in its earnings announcement.
Within its acute care business unit, UHS said its adjusted admissions increased by 1.9% and its adjusted patient days decreased by 5% year over year on a same-facility basis. The same facilities saw their net revenue per adjusted admission fall by 2.5% from last year’s third quarter, though net revenue per adjusted patient day and same-facility acute care net revenues grew by 4.5% and 0.9%, respectively.
UHS’ behavioral care facilities saw, on a same-facility basis, adjusted admissions rise by 4% and adjusted patient days grow by 3.3% over last year’s third quarter. The company saw increases across the segment’s net revenue per adjusted admission (4.2%), net revenue per adjusted patient day (5%) and overall net revenues (8.4%) year over year on a same-facility basis.
Year-to-date net income attributable to UHS was $500.8 million ($6.71 per diluted share), down 33% from the $752.5 million ($8.83 per diluted share) reported during the first nine months of 2021. Year-to-date net revenues have increased 6.3% year-over-year to $9.95 billion while operating expenses grew 10.7% to $9.21 billion.
UHS operates 28 acute care hospitals, 331 behavioral health facilities, 41 outpatient facilities and ambulatory care sites. It reported $12.6 billion in annual revenues in 2021.
Executives will elaborate on the results during an investor call scheduled for Wednesday morning.
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