UHS sees profit rise, strikes $127M deal with feds

King of Prussia, Pa.-based Universal Health Services saw revenues and net income increase in the second quarter of 2019.

UHS' revenues increased 6.5 percent year over year to $2.9 billion in the second quarter of 2019. The company's acute care hospitals and behavioral healthcare facilities contributed to the revenue growth. Revenues from UHS' acute care services were up 9 percent year over year in the second quarter of 2019, while revenues from behavioral healthcare services climbed 2.7 percent.

UHS saw expenses increase from $2.4 billion in the second quarter of 2018 to $2.5 billion in the same period of 2019. The company reported higher expenses across nearly all categories, including labor and supplies costs.

UHS' earnings release included an update on investigations into the company's behavioral health facilities by the Department of Justice. UHS said it has reached an agreement in principle with the Justice Department to resolve the civil aspect of the investigation for $127 million. The agreement is subject to requisite approvals and the execution of a definitive settlement and related agreements.

The company also announced that the Justice Department's Criminal Frauds Section has closed a related investigation into UHS' operations.  

"We are awaiting the initial draft of a potential corporate integrity agreement with the Office of Inspector General for the United States Department of Health and Human Services which we expect will be part of the overall settlement of this matter," UHS said in the earnings report.

UHS ended the second quarter of 2019 with net income of $238.3 million, compared to $226.1 million in the same period a year earlier.

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