UHS net income falls 26.4% in Q1 of 2022

The net income attributable to King of Prussia, Pa.-based Universal Health Services slid 26.4 percent to $153.9 million for the three months ended March 31, compared to $209.1 million in the same period of 2021, according to the system's financial results released April 25.

UHS, which has more than 400 facilities, had a 9.3 percent increase in revenue year over year for the first quarter of 2022. Net revenue was $3.3 billion for the three months ended March 31, up from a little over $3 billion in the same period of 2021.

Its operating charges also rose, by 12.6 percent, from $2.7 billion in the first quarter of 2021 to $3.1 billion in the first quarter of 2022. This can be largely attributed to salaries, wages and benefits, which reached $1.7 billion for the first quarter, a 13 percent increase from 2021 at $1.5 billion.

UHS' operating income fell by 21.2 percent year over year for the first quarter of 2022 to $232.9 million, compared to $295.7 million for the same period last year.

"Our operating results during the first quarter of 2022 reflect continued uncertainties related to the COVID-19 pandemic, as well cost as escalations related to the nationwide shortage of nurses and other clinical staff and support personnel," UHS said in the report. "As a result, our labor costs were higher than anticipated, and patient volumes at our behavioral healthcare facilities were lower than anticipated, which unfavorably impacted our operating results during the first quarter of 2022."

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