King of Prussia, Pa.-based Universal Health Services has reported net income of $82.8 million for the third quarter of this year, which is down from the $114.6 million the hospital operator posted in the third quarter of 2013.
For the first nine months of 2014, UHS' net income was $372.5 million, which lags behind the $386.2 million it reported for the same period last year.
Included in UHS' reported financial results was a pre-tax charge of $44 million, which the hospital operator incurred in connection with a $65 million legal settlement. The settlement was related to a 2009 shareholder class-action lawsuit that was filed against Psychiatric Solutions — a UHA subsidiary — over allegedly misleading investors by failing to disclose information about violence at one of its psychiatric hospitals.
The financial report also included a $36.2 million pre-tax charge resulting primarily from UHS' early redemption of its previously outstanding debt of $250 million that was scheduled to mature in 2018.
Like many other healthcare organizations, UHS is benefiting from an increased volume of insured patients, which contributed to the hospital operator's revenue rising to $2.02 billion, an 11.1 percent increase over the third quarter of last year.
More articles on healthcare finance:
LifePoint reports strong Q3 financial results, expects trend to continue
For-profit hospital stock report: Week of Oct. 20-24
5 most-read finance stories: Week of Oct. 20-24