Hurricanes, litigation costs hurt UHS' bottom line

King of Prussia, Pa.-based Universal Health Services saw revenues increase in the third quarter of 2017, but ended the period with lower net income than in the same period of last year.

UHS said revenues climbed 5.5 percent year over year to $2.5 billion in the third quarter of this year. The revenue boost was partially attributable to an increase in patient volume. UHS said admissions when adjusted for outpatient activity were up 3.5 percent compared to the same quarter of 2016. On the behavioral health side, adjusted admissions increased 1.1 percent year over year.

After accounting for an increase in expenses, UHS ended the third quarter with net income of $141.2 million, down from net income of $151.9 million in the same period of the year prior.

UHS said it incurred a $22 million to $24 million hit from litigation and hurricanes Harvey, Irma and Maria. The company said most of its facilities affected by the hurricanes did not sustain significant property damage and the vast majority have resumed normal operations. However, some beds at its 124-bed behavioral health facility in Houston remain closed, and its three behavioral health facilities in Puerto Rico continue to operate on auxiliary power. "It is difficult to predict the impact that the hurricanes may have on the future operating results of these four facilities," said UHS.

More articles on healthcare finance:

Shareholders push for changes at Tenet and CHS: 6 things to know
HCA reports $140M hit from hurricanes, expects 31% drop in Q3 profit
Florida hospital to suspend all services as it seeks capital


© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.


Featured Webinars

Featured Whitepapers