UHS Acute-Care Hospitals Post 20% Margin in Q1
Net profit at King of Prussia, Pa.-based Universal Health Services soared 15.2 percent in the first quarter of 2014, totaling $138.1 million, and its acute-care hospital base performed particularly well.
UHS owns and operates 24 acute-care hospitals. Excluding its new Temecula (Calif.) Valley Hospital, net revenue at those facilities jumped 5.8 percent. Additionally, UHS acute-care hospitals posted a 19.8 percent operating margin in the first quarter, compared with 16 percent in 2013. UHS attributed the gains to increased patient days and cost controls.
Total revenue at UHS hit $1.92 billion, compared with $1.83 billion in the first quarter of 2013. UHS' operating income totaled $271 million, giving the hospital operator a total operating margin of 14.1 percent.
Most of UHS' revenue comes from its behavioral health business. As of March 31, UHS controlled 181 behavioral health facilities. In its earnings release, UHS announced it had bought another behavioral health facility: Psychiatric Institute of Washington, a 124-bed center in Washington, D.C. Terms of the deal were not disclosed. Alan Miller, CEO of UHS, said PIW complements the system's 371-bed George Washington University Hospital, also located in D.C.
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