King of Prussia, Pa.-based Universal Health Services reported $1.2 billion in operating income (8.4% margin) in 2023, up from a $1 billion gain (7.5% margin) reported in 2022.
Seven things to know:
1. The for-profit health system saw overall revenue increase 6.6% year over year to $14.3 billion while expenses rose 5.7% to $13.1 billion.
2. Labor costs increased 5.1% to $7.1 billion and supply expenses grew by 3.9% to $1.5 billion.
3. UHS' acute care hospitals saw adjusted admissions increase 7.6% while adjusted patient days were up 4.7% year over year. Net revenue per adjusted admission declined by 0.6% while net revenue per adjusted patient day increased by 2.2%, as compared to 2022. Net revenues generated from acute care services — on a same facility basis — increased 7.6%.
4. Net cash provided by operating activities was $1.3 billion in 2023 compared to $996 million in 2022.
5. After accounting for nonoperating items, such as investment returns, UHS reported $719.3 million in net income, compared to $656.9 million the previous year.
6. In 2024, the health system expects net revenues to be between $15.4 billion and $15.7 billion, representing an increase of 7.9% to 10% year over year. UHS plans to spend $1 billion on capital expenses this year, up from $850 million in 2023.
7. UHS operates 27 acute care hospitals, 333 inpatient behavioral health facilities, 48 outpatient facilities, an insurance offering and a physician network in 39 states, Washington, D.C., the United Kingdom and Puerto Rico.