The third quarter for King of Prussia, Pa.-based Universal Health Services was healthy, as net income increased 60 percent from the third quarter of 2012 to $114.6 million.
UHS' operating income similarly was strong at $224.9 million, or a 33 percent increase from last year. Third-quarter net revenue totaled $1.82 billion, up more than 8 percent from 2012.
The positive third-quarter earnings came from several sources, UHS officials said in a news release. UHS' acute-care hospitals in Texas benefited from a boost in Medicaid disproportionate share hospital payments, and the for-profit operator also recorded millions from the government's electronic health record incentive program.
UHS consequently raised its full-year earnings guidance, saying net income per diluted share is estimated to be $4.58 compared with its previous estimate of $4.52.
For the nine months ended Sept. 30, profit at UHS climbed more than 25 percent to $386.2 million. Net revenue in the first nine months exceeded $5.48 billion, up 5.5 percent from the same period a year ago. EBITDA rose to $303.3 million and $986.7 million in the third quarter and first nine months, respectively.
UHS mostly operates behavioral health facilities — 182 as of Sept. 30 — but it also owns and operates 23 acute-care hospitals. Its newest hospital, 140-bed Temecula (Calif.) Valley Hospital, officially opened earlier this month. In the third quarter of 2013, same-facility adjusted admissions at UHS acute-care hospitals increased 3.6 percent, while adjusted patient days rose 4.1 percent. The average operating margin at a UHS acute-hospital stood at a solid 12.8 percent.
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