King of Prussia, Pa.-based Universal Health Services saw revenues and net income increase in the third quarter of 2018 compared to the same period of the year prior.
Here are six things to know:
1. UHS' revenues increased 4.2 percent year over year to $2.65 billion in the quarter ended Sept. 30.
2. The revenue growth was partially due to increased patient admissions at UHS' acute care hospitals. Admissions when adjusted for outpatient activity increased 1.5 percent on a same-facility basis in the third quarter of 2018 compared to the same period of the year prior. At UHS' behavioral healthcare facilities, adjusted admissions increased 4.7 percent on a same-facility basis year over year.
3. UHS saw expenses increase from $2.28 billion in the third quarter of 2017 to $2.39 billion in the third quarter of 2018.
4. In the third quarter of this year, UHS said it added $48 million to its reserve for an ongoing investigation into its behavioral health facilities by the Department of Justice. The reserve now totals about $90 million.
"Changes in the reserve may be required in future periods as discussions with the Department of Justice continue and additional information becomes available," UHS said in an earnings release. "We cannot predict the ultimate resolution of this matter and therefore can provide no assurance that final amounts paid in settlement or otherwise, if any, or associated costs, will not differ materially from our established reserve."
5. The fact that the reserves are increasing more frequently is a "good thing," said Steve Filton, UHS executive vice president and CFO, during a third quarter earnings call.
"I think it's reflective of the fact that … our settlement and negotiations with the government are meaningful," he said. "The gap between where our offers and the government demands are has narrowed and we are optimistic or hopeful that that means that we can reach a resolution of this relatively soon."
6. UHS ended the third quarter of 2018 with net income of $171.75 million, compared to $141.25 million in the same period of the year prior.
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