King of Prussia, Pa.-based Universal Health Services saw its revenues and net income grow in the third quarter of FY 2015. However, the for-profit hospital operator also said its acute care facilities provided more charity care and uninsured discounts.
UHS saw positive improvement in its net revenues during the third quarter. The hospital chain said its net revenues increased 9.3 percent to $2.2 billion in the third quarter of FY 2015 compared to the same period of FY 2014. UHS also saw its net income jump 81.5 percent year over year, increasing to $150.3 million in the third quarter of FY 2015.
After adjusting for outpatient activity, admissions were up 5.1 percent over the comparable period of FY 2014 at UHS' acute care hospitals. However, UHS said its operating margin for the acute care division fell to 15.4 percent, down from 17.1 percent during the same period a year ago. Adjusted admissions at UHS' behavioral health hospitals were up 1.6 percent in the third quarter of FY 2015 compared to the year prior, and the operating margin in that division fell slightly to 27.5 percent, down from 27.6 percent in the same period of FY 2014.
UHS also continued to grow its behavioral health division in the third quarter. In August, UHS purchased United Kingdom-based behavioral health provider Alpha Hospital Holdings. In October, UHS inked a $350 million deal to acquire Foundations Recovery Network, based in Brentwood, Tenn.
After accounting for operating expenses, which were up 4.9 percent year over year, UHS ended the third quarter with operating income of $275.2 million. That was an improvement over the third quarter of FY 2014 when UHS reported operating income of $176.6 million.
Based on operating trends and financial results during the first nine months of 2015, UHS revised its estimated adjusted net income for the year to a range of $6.75 to $7.05 per diluted share. This revised guidance maintains the lower end of the previously provided range of $6.75 to $7.15 per diluted share.
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