UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 25, 2023

 

UNIVERSAL HEALTH SERVICES, INC.

(Exact name of registrant as specified in its charter)

Delaware		1-10765		23-2077891
(State or other jurisdiction of		(Commission		(I.R.S. Employer
Incorporation or Organization)		File Number)		Identification No.)

UNIVERSAL CORPORATE CENTER

367 SOUTH GULPH ROAD

KING OF PRUSSIA, Pennsylvania 19406

(Address of principal executive office) (Zip Code)

Registrant’s telephone number, including area code (610) 768-3300

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class B Common Stock	UHS	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

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Item 2.02 Results of Operations and Financial Condition

On October 25, 2023, Universal Health Services, Inc. issued the press release attached hereto as Exhibit 99.1.

 

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

 

99.1		Universal Health Services, Inc., press release, dated October 25, 2023.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

Exhibit Index

Exhibit No.		Exhibit
99.1		Universal Health Services, Inc., press release, dated October 25, 2023.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Universal Health Services, Inc.
By:		/s/ Steve Filton
Name: Steve Filton
Title: Executive Vice President and             Chief Financial Officer

Date: October 26, 2023

 

 

 

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Exhibit 99.1

FOR IMMEDIATE RELEASE

October 25, 2023

 

CONTACT:	Steve Filton
	Chief Financial Officer
	610-768-3300

 

 

UNIVERSAL HEALTH SERVICES, INC.

ANNOUNCES 2023 THIRD QUARTER FINANCIAL RESULTS

Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended September 30, 2023 and 2022:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $167.0 million, or $2.40 per diluted share, during the third quarter of 2023, as compared to $182.8 million, or $2.50 per diluted share, during the third quarter of 2022. Net revenues increased by 6.8% to $3.563 billion during the third quarter of 2023, as compared to $3.336 billion during the third quarter of 2022.

As reflected on the Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”), our adjusted net income attributable to UHS during the third quarter of 2023 was $177.5 million, or $2.55 per diluted share, as compared to $185.8 million, or $2.54 per diluted share, during the third quarter of 2022. As reflected on the Supplemental Schedule, included in our reported results were unrealized after-tax losses of $10.5 million, or $.15 per diluted share ($13.8 million pre-tax), during the third quarter of 2023, and $3.0 million, or $.04 per diluted share ($3.9 million pre-tax) during the third quarter of 2022. These unrealized losses, which are included in “Other (income) expense, net”, resulted from decreases in the market value of certain equity securities.

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization (“EBITDA net of NCI”, NCI is net income attributable to noncontrolling interests), was $410.1 million during the third quarter of 2023, as compared to $421.7 million during the third quarter of 2022. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was $421.5 million during the third quarter of 2023, as compared to $427.8 million during the third quarter of 2022.

Consolidated Results of Operations, As Reported and As Adjusted – Nine-month periods ended September 30, 2023 and 2022:

Reported net income attributable to UHS was $501.4 million, or $7.09 per diluted share, during the first nine months of 2023, as compared to $500.8 million, or $6.71 per diluted share, during the first nine months 2022. Net revenues increased by 6.3% to $10.578 billion during the first nine months of 2023, as compared to $9.952 billion during the comparable period of 2022.

As reflected on the Supplemental Schedule, our adjusted net income attributable to UHS during the first nine months of 2023, was $524.5 million, or $7.42 per diluted share, as compared to $513.1 million, or $6.88 per diluted share, during the nine-month period ended September 30, 2022.

As reflected on the Supplemental Schedule, included in our reported results were unrealized after-tax losses of $23.0 million, or $.33 per diluted share, ($30.1 million pre-tax) during the first nine months of 2023 and $12.4 million, or $.17 per diluted share, ($16.1 million pre-tax) during the first nine months of 2022. These unrealized losses, which are included in “Other (income) expense, net”, resulted from decreases in the market value of certain equity securities.

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization (“EBITDA net of NCI”), was $1.237 billion during the first nine months of 2023, as compared to $1.175 billion during the first nine months of 2022. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was

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$1.268 billion during the first nine months of 2023, as compared to $1.190 billion during the comparable period of 2022.

Acute Care Services – Three and nine-month periods ended September 30, 2023 and 2022:

During the third quarter of 2023, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased by 6.8% while adjusted patient days increased by 3.8%, as compared to the third quarter of 2022. At these facilities, during the third quarter of 2023, net revenue per adjusted admission increased by 0.4% while net revenue per adjusted patient day increased by 3.3%, as compared to the third quarter of 2022. Net revenues generated from our acute care services, on a same facility basis, increased by 7.5% during the third quarter of 2023, as compared to the third quarter of 2022.

During the nine-month period ended September 30, 2023, at our acute care hospitals on a same facility basis, adjusted admissions increased by 8.3% while adjusted patient days increased by 4.8%, as compared to the first nine months of 2022. At these facilities, during the first nine months of 2023, net revenue per adjusted admission decreased by 2.0% while net revenue per adjusted patient day increased by 1.3%, as compared to the first nine months of 2022. Net revenues generated from our acute care services, on a same facility basis, increased by 6.9% during the first nine months of 2023, as compared to the comparable period of 2022.

Behavioral Health Care Services – Three and nine-month periods ended September 30, 2023 and 2022:

During the third quarter of 2023, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.8% while adjusted patient days increased by 1.1%, as compared to the third quarter of 2022. At these facilities, during the third quarter of 2023, net revenue per adjusted admission increased by 6.8% and net revenue per adjusted patient day increased by 6.5%, as compared to the third quarter of 2022. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 7.6% during the third quarter of 2023, as compared to the third quarter of 2022.

During the nine-month period ended September 30, 2023, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 3.8% while adjusted patient days increased by 2.4%, as compared to the first nine months of 2022. At these facilities, during the first nine months of 2023, net revenue per adjusted admission increased by 4.4% and net revenue per adjusted patient day increased by 5.9%, as compared to the first nine months of 2022. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 8.3% during the first nine months of 2023, as compared to the comparable period of 2022.

Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

During the nine-month period ended September 30, 2023, our net cash provided by operating activities was $815 million as compared to $699 million during the first nine months of 2022. Included in the $117 million net increase in our net cash provided by operating activities was a favorable change of $109 million in other working capital accounts due primarily to the timing of disbursements for accrued compensation and accounts payable.

Liquidity:

As of September 30, 2023, we had $721 million of aggregate available borrowing capacity pursuant to our $1.2 billion revolving credit facility, net of outstanding borrowings and letters of credit.

Stock Repurchase Program:

As of December 31, 2022, we had an aggregate remaining repurchase authorization of approximately $947 million pursuant to our stock repurchase program. Pursuant to the terms of our stock repurchase program, shares of our Class B Common Stock may be repurchased, from time to time as conditions allow, on the open market or in negotiated private transactions.

During the third quarter of 2023, we have repurchased 1.32 million shares at an aggregate cost of approximately $175.1 million (approximately $133 per share) pursuant to the program. During the first nine months of 2023, we have repurchased approximately 2.73 million shares at an aggregate cost of approximately $367.2 million (approximately $135 per share) pursuant to the program.

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As of September 30, 2023, we had an aggregate available repurchase authorization of approximately $580 million.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on October 26, 2023. A live webcast of the call will be available on our website at www.uhs.com. To participate via telephone, please register in advance at this link.

Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the call will be available for one full year following the live call.

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

One of the nation’s largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues during 2022 were approximately $13.4 billion. UHS ranked #311 on the Fortune 500; and #434 on Forbes’ list of America’s Largest Public Companies. UHS was again recognized as one of the World’s Most Admired Companies by Fortune.

Our operating philosophy is as effective today as it was upon the Company’s founding in 1979, enabling us to provide compassionate care to our patients and their loved ones. Our strategy includes building or acquiring high quality hospitals in rapidly growing markets, investing in the people and equipment needed to allow each facility to thrive, and becoming the leading healthcare provider in each community we serve.

Headquartered in King of Prussia, PA, UHS has approximately 93,800 employees and, through its subsidiaries, operates 27 inpatient acute care hospitals, 331 inpatient behavioral health facilities, 43 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 39 states, Washington, D.C., the United Kingdom and Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT). For additional information visit www.uhs.com.

This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to the potential impact of COVID-19 on our operations and financial results, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarter ended June 30, 2023 and in Item 1A-Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended December 31, 2022), may cause the results to differ materially from those anticipated in the forward-looking statements. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management’s view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Many of the factors that could affect our future results are beyond our control or ability to predict, including, but not limited to:

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We believe that adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and Adjusted EBITDA net of NCI, which are non-GAAP financial measures (“GAAP” is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect of material items impacting our net income attributable to UHS, such as, changes in the market value of shares of certain equity securities and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income attributable to UHS, as determined in accordance with GAAP, and as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-Q for the quarter ended June 30, 2023 and our Report on Form 10-K for the year ended December 31, 2022. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.

(more)

 

 

 

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Universal Health Services, Inc.
Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
		Three months								Nine months
		ended September 30,								ended September 30,
		2023				2022				2023				2022
Net revenues		$	3,562,774				3,336,027			$	10,578,430				9,952,390
Operating charges:
Salaries, wages and benefits			1,784,870				1,677,431				5,308,476				5,061,173
Other operating expenses			941,219				837,241				2,758,484				2,526,060
Supplies expense			378,667				366,337				1,138,950				1,092,403
Depreciation and amortization			137,195				145,874				422,560				433,508
Lease and rental expense			35,466				33,264				105,775				97,075
			3,277,417				3,060,147				9,734,245				9,210,219
Income from operations			285,357				275,880				844,185				742,171
Interest expense, net			53,378				35,653				153,085				83,002
Other (income) expense, net			11,472				6,015				31,797				15,244
Income before income taxes			220,507				234,212				659,303				643,925
Provision for income taxes			52,499				57,401				159,618				157,312
Net income			168,008				176,811				499,685				486,613
Less: Net income (loss) attributable to noncontrolling interests ("NCI")			1,019				(6,003	)			(1,732	)			(14,176	)
Net income attributable to UHS		$	166,989			$	182,814			$	501,417			$	500,789
Basic earnings per share attributable to UHS (a)		$	2.42			$	2.52			$	7.18			$	6.78
Diluted earnings per share attributable to UHS (a)		$	2.40			$	2.50			$	7.09			$	6.71

 

 

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Universal Health Services, Inc.
Footnotes to Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
		Three months								Nine months
		ended September 30,								ended September 30,
		2023				2022				2023				2022
(a) Earnings per share calculation:
Basic and diluted:
Net income attributable to UHS		$	166,989			$	182,814			$	501,417			$	500,789
Less: Net income attributable to unvested restricted share grants			(52	)			(179	)			(242	)			(592	)
Net income attributable to UHS - basic and diluted		$	166,937			$	182,635			$	501,175			$	500,197
Weighted average number of common shares - basic			68,867				72,595				69,825				73,769
Basic earnings per share attributable to UHS:		$	2.42			$	2.52			$	7.18			$	6.78
Weighted average number of common shares			68,867				72,595				69,825				73,769
Add: Other share equivalents			757				465				825				743
Weighted average number of common shares and equiv. - diluted			69,624				73,060				70,650				74,512
Diluted earnings per share attributable to UHS:		$	2.40			$	2.50			$	7.09			$	6.71

 

 

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Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")
For the Three Months ended September 30, 2023 and 2022
(in thousands, except per share amounts)
(unaudited)
Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")
	Three months ended				% Net				Three months ended				% Net
	September 30, 2023				revenues				September 30, 2022				revenues
Net income attributable to UHS	$	166,989							$	182,814
Depreciation and amortization		137,195								145,874
Interest expense, net		53,378								35,653
Provision for income taxes		52,499								57,401
EBITDA net of NCI	$	410,061				11.5	%		$	421,742				12.6	%
Other (income) expense, net		11,472								6,015
Adjusted EBITDA net of NCI	$	421,533				11.8	%		$	427,757				12.8	%
Net revenues	$	3,562,774							$	3,336,027
Calculation of Adjusted Net Income Attributable to UHS
	Three months ended								Three months ended
	September 30, 2023								September 30, 2022
					Per								Per
	Amount				Diluted Share				Amount				Diluted Share
Net income attributable to UHS	$	166,989			$	2.40			$	182,814			$	2.50
Plus/minus after-tax adjustments:
Unrealized loss on equity securities		10,528				0.15				2,974				0.04
Subtotal adjustments		10,528				0.15				2,974				0.04
Adjusted net income attributable to UHS	$	177,517			$	2.55			$	185,788			$	2.54

 

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Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")
For the Nine Months ended September 30, 2023 and 2022
(in thousands, except per share amounts)
(unaudited)
Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")
	Nine months ended				% Net				Nine months ended				% Net
	September 30, 2023				revenues				September 30, 2022				revenues
Net income attributable to UHS	$	501,417							$	500,789
Depreciation and amortization		422,560								433,508
Interest expense, net		153,085								83,002
Provision for income taxes		159,618								157,312
EBITDA net of NCI	$	1,236,680				11.7	%		$	1,174,611				11.8	%
Other (income) expense, net		31,797								15,244
Adjusted EBITDA net of NCI	$	1,268,477				12.0	%		$	1,189,855				12.0	%
Net revenues	$	10,578,430							$	9,952,390
Calculation of Adjusted Net Income Attributable to UHS
	Nine months ended								Nine months ended
	September 30, 2023								September 30, 2022
					Per								Per
	Amount				Diluted Share				Amount				Diluted Share
Net income attributable to UHS	$	501,417			$	7.09			$	500,789			$	6.71
Plus/minus after-tax adjustments:
Unrealized loss on equity securities		23,040				0.33				12,358				0.17
Subtotal adjustments		23,040				0.33				12,358				0.17
Adjusted net income attributable to UHS	$	524,457			$	7.42			$	513,147			$	6.88

 

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Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
		September 30,				December 31,
		2023				2022
Assets
Current assets:
Cash and cash equivalents		$	80,768			$	102,818
Accounts receivable, net			2,234,343				2,017,722
Supplies			214,587				218,517
Other current assets			223,303				198,283
Total current assets			2,753,001				2,537,340
Property and equipment			11,610,188				11,085,852
Less: accumulated depreciation			(5,523,135	)			(5,167,394	)
			6,087,053				5,918,458
Other assets:
Goodwill			3,912,122				3,909,456
Deferred income taxes			99,580				68,397
Right of use assets-operating leases			443,924				454,650
Deferred charges			7,062				6,264
Other			570,728				599,623
Total Assets		$	13,873,470			$	13,494,188
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term debt		$	126,555			$	81,447
Accounts payable and other liabilities			1,783,460				1,760,588
Operating lease liabilities			72,655				67,776
Federal and state taxes			7,145				4,608
Total current liabilities			1,989,815				1,914,419
Other noncurrent liabilities			587,829				487,669
Operating lease liabilities noncurrent			388,550				395,522
Long-term debt			4,796,074				4,726,533
Redeemable noncontrolling interest			4,719				4,695
UHS common stockholders' equity			6,064,915				5,920,582
Noncontrolling interest			41,568				44,768
Total equity			6,106,483				5,965,350
Total Liabilities and Stockholders' Equity		$	13,873,470			$	13,494,188

 

 

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Universal Health Services, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Nine months
	ended September 30,
	2023				2022
Cash Flows from Operating Activities:
Net income	$	499,685			$	486,613
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization		422,560				433,508
(Gain) loss on sale of assets and businesses		(6,250	)			584
Stock-based compensation expense		65,702				62,741
Changes in assets & liabilities, net of effects from acquisitions and dispositions:
Accounts receivable		(193,108	)			(155,142	)
Accrued interest		60				529
Accrued and deferred income taxes		(33,240	)			(4,900	)
Other working capital accounts		(65,062	)			(173,903	)
Medicare accelerated payments and deferred CARES Act and other grants		1,764				2,921
Other assets and deferred charges		48,985				22,219
Other		13,717				(23,358	)
Accrued insurance expense, net of commercial premiums paid		141,414				134,908
Payments made in settlement of self-insurance claims		(80,861	)			(88,001	)
Net cash provided by operating activities		815,366				698,719
Cash Flows from Investing Activities:
Property and equipment additions		(536,665	)			(569,555	)
Proceeds received from sales of assets and businesses		23,688				12,001
Acquisition of businesses and property		(3,728	)			(18,666	)
(Outflows) inflows from foreign exchange contracts that hedge our net U.K. investment		(7,723	)			177,214
Decrease in capital reserves of commercial insurance subsidiary		0				100
Net cash used in investing activities		(524,428	)			(398,906	)
Cash Flows from Financing Activities:
Repayments of long-term debt		(54,009	)			(194,115	)
Additional borrowings		165,000				705,321
Financing costs		(308	)			(2,541	)
Repurchase of common shares		(385,339	)			(723,384	)
Dividends paid		(41,964	)			(44,192	)
Issuance of common stock		9,841				10,399
Profit distributions to noncontrolling interests		(5,258	)			(5,426	)
(Purchase) sale of ownership interests by (from) minority members		408				(49,089	)
Net cash used in financing activities		(311,629	)			(303,027	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		493				(10,339	)
Decrease in cash, cash equivalents and restricted cash		(20,198	)			(13,553	)
Cash, cash equivalents and restricted cash, beginning of period		200,837				178,934
Cash, cash equivalents and restricted cash, end of period	$	180,639			$	165,381
Supplemental Disclosures of Cash Flow Information:
Interest paid	$	149,247			$	78,992
Income taxes paid, net of refunds	$	191,189			$	182,091
Noncash purchases of property and equipment	$	108,412			$	97,264

 

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Universal Health Services, Inc.
Supplemental Statistical Information
(unaudited)
					% Change		% Change
Same Facility:					Three Months ended		Nine Months ended
					9/30/2023		9/30/2023
Acute Care Services
Revenues					7.5%		6.9%
Adjusted Admissions					6.8%		8.3%
Adjusted Patient Days					3.8%		4.8%
Revenue Per Adjusted Admission					0.4%		-2.0%
Revenue Per Adjusted Patient Day					3.3%		1.3%
Behavioral Health Care Services
Revenues					7.6%		8.3%
Adjusted Admissions					0.8%		3.8%
Adjusted Patient Days					1.1%		2.4%
Revenue Per Adjusted Admission					6.8%		4.4%
Revenue Per Adjusted Patient Day					6.5%		5.9%
UHS Consolidated	Third quarter ended				Nine months ended
	9/30/2023		9/30/2022		9/30/2023		9/30/2022
Revenues	$3,562,774		$3,336,027		$10,578,430		$9,952,390
EBITDA net of NCI	$410,061		$421,742		$1,236,680		$1,174,611
EBITDA Margin net of NCI	11.5%		12.6%		11.7%		11.8%
Adjusted EBITDA net of NCI	$421,533		$427,757		$1,268,477		$1,189,855
Adjusted EBITDA Margin net of NCI	11.8%		12.8%		12.0%		12.0%
Cash Flow From Operations	$161,665		$220,672		$815,366		$698,719
Capital Expenditures	$200,001		$161,593		$536,665		$569,555
Days Sales Outstanding					58		52
Debt					$4,922,629		$4,704,663
UHS' Shareholders Equity					$6,064,915		$5,855,353
Debt / Total Capitalization					44.8%		44.6%
Debt / EBITDA net of NCI (1)					2.97		2.87
Debt / Adjusted EBITDA net of NCI (1)					2.83		2.87
Debt / Cash From Operations (1)					4.42		4.61
(1) Latest 4 quarters.

 

---

Universal Health Services, Inc.

Acute Care Hospital Services

For the Three and Nine Months ended

September 30, 2023 and 2022

(in thousands)

 

Same Facility Basis - Acute Care Hospital Services
		Three months ended								Three months ended								Nine months ended								Nine months ended
		September 30, 2023								September 30, 2022								September 30, 2023								September 30, 2022
		Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues
Net revenues		$	1,965,856				100.0	%		$	1,828,370				100.0	%		$	5,808,205				100.0	%		$	5,432,868				100.0	%
Operating charges:
Salaries, wages and benefits			854,215				43.5	%			801,252				43.8	%			2,493,271				42.9	%			2,412,699				44.4	%
Other operating expenses			543,707				27.7	%			478,221				26.2	%			1,584,820				27.3	%			1,382,250				25.4	%
Supplies expense			324,226				16.5	%			302,162				16.5	%			964,228				16.6	%			904,547				16.6	%
Depreciation and amortization			86,583				4.4	%			92,830				5.1	%			265,021				4.6	%			274,574				5.1	%
Lease and rental expense			24,404				1.2	%			21,847				1.2	%			71,635				1.2	%			62,756				1.2	%
Subtotal-operating expenses			1,833,135				93.2	%			1,696,312				92.8	%			5,378,975				92.6	%			5,036,826				92.7	%
Income from operations			132,721				6.8	%			132,058				7.2	%			429,230				7.4	%			396,042				7.3	%
Interest expense, net			(778	)			(0.0	)%			234				0.0	%			(1,858	)			(0.0	)%			1,350				0.0	%
Other (income) expense, net			(1,045	)			(0.1	)%			384				0.0	%			5,168				0.1	%			806				0.0	%
Income before income taxes		$	134,544				6.8	%		$	131,440				7.2	%		$	425,920				7.3	%		$	393,886				7.3	%
All Acute Care Hospital Services
		Three months ended								Three months ended								Nine months ended								Nine months ended
		September 30, 2023								September 30, 2022								September 30, 2023								September 30, 2022
		Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues
Net revenues		$	2,017,288				100.0	%		$	1,919,678				100.0	%		$	5,993,899				100.0	%		$	5,707,510				100.0	%
Operating charges:
Salaries, wages and benefits			854,587				42.4	%			824,942				43.0	%			2,534,878				42.3	%			2,497,888				43.8	%
Other operating expenses			596,834				29.6	%			535,463				27.9	%			1,731,750				28.9	%			1,550,044				27.2	%
Supplies expense			323,475				16.0	%			311,404				16.2	%			979,185				16.3	%			935,559				16.4	%
Depreciation and amortization			86,535				4.3	%			96,020				5.0	%			274,165				4.6	%			285,558				5.0	%
Lease and rental expense			24,440				1.2	%			21,990				1.1	%			72,629				1.2	%			63,324				1.1	%
Subtotal-operating expenses			1,885,871				93.5	%			1,789,819				93.2	%			5,592,607				93.3	%			5,332,373				93.4	%
Income from operations			131,417				6.5	%			129,859				6.8	%			401,292				6.7	%			375,137				6.6	%
Interest expense, net			(778	)			(0.0	)%			234				0.0	%			(1,858	)			(0.0	)%			1,350				0.0	%
Other (income) expense, net			(211	)			(0.0	)%			384				0.0	%			6,921				0.1	%			806				0.0	%
Income before income taxes		$	132,406				6.6	%		$	129,241				6.7	%		$	396,229				6.6	%		$	372,981				6.5	%

 

---

We believe that providing our results on a “Same Facility” basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2022 and Form 10-Q for the quarter ended June 30, 2023.

 

The All Acute Care Hospital Services table summarizes the results of operations for all our acute care operations during the periods presented. These amounts include: (i) our acute care results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

 

 

---

Universal Health Services, Inc.

Behavioral Health Care Services

For the Three and Nine Months ended

September 30, 2023 and 2022

(in thousands)

 

Same Facility - Behavioral Health Care Services
		Three months ended								Three months ended								Nine months ended								Nine months ended
		September 30, 2023								September 30, 2022								September 30, 2023								September 30, 2022
		Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues
Net revenues		$	1,513,354				100.0	%		$	1,407,039				100.0	%		$	4,490,078				100.0	%		$	4,144,998				100.0	%
Operating charges:
Salaries, wages and benefits			841,985				55.6	%			779,839				55.4	%			2,491,153				55.5	%			2,293,332				55.3	%
Other operating expenses			292,878				19.4	%			273,618				19.4	%			866,450				19.3	%			816,312				19.7	%
Supplies expense			55,102				3.6	%			55,466				3.9	%			161,205				3.6	%			157,457				3.8	%
Depreciation and amortization			47,484				3.1	%			46,487				3.3	%			139,039				3.1	%			137,249				3.3	%
Lease and rental expense			10,857				0.7	%			10,586				0.8	%			32,642				0.7	%			31,262				0.8	%
Subtotal-operating expenses			1,248,306				82.5	%			1,165,996				82.9	%			3,690,489				82.2	%			3,435,612				82.9	%
Income from operations			265,048				17.5	%			241,043				17.1	%			799,589				17.8	%			709,386				17.1	%
Interest expense, net			1,255				0.1	%			1,370				0.1	%			3,326				0.1	%			3,957				0.1	%
Other (income) expense, net			(985	)			(0.1	)%			(664	)			(0.0	)%			(2,294	)			(0.1	)%			(1,422	)			(0.0	)%
Income before income taxes		$	264,778				17.5	%		$	240,337				17.1	%		$	798,557				17.8	%		$	706,851				17.1	%
All Behavioral Health Care Services
		Three months ended								Three months ended								Nine months ended								Nine months ended
		September 30, 2023								September 30, 2022								September 30, 2023								September 30, 2022
		Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues
Net revenues		$	1,542,695				100.0	%		$	1,434,828				100.0	%		$	4,575,378				100.0	%		$	4,235,215				100.0	%
Operating charges:
Salaries, wages and benefits			844,244				54.7	%			782,909				54.6	%			2,498,338				54.6	%			2,310,761				54.6	%
Other operating expenses			322,208				20.9	%			300,406				20.9	%			949,958				20.8	%			898,655				21.2	%
Supplies expense			55,272				3.6	%			55,482				3.9	%			161,597				3.5	%			158,315				3.7	%
Depreciation and amortization			47,720				3.1	%			46,861				3.3	%			140,117				3.1	%			138,803				3.3	%
Lease and rental expense			10,911				0.7	%			11,010				0.8	%			32,834				0.7	%			32,803				0.8	%
Subtotal-operating expenses			1,280,355				83.0	%			1,196,668				83.4	%			3,782,844				82.7	%			3,539,337				83.6	%
Income from operations			262,340				17.0	%			238,160				16.6	%			792,534				17.3	%			695,878				16.4	%
Interest expense, net			1,252				0.1	%			1,375				0.1	%			3,456				0.1	%			4,106				0.1	%
Other (income) expense, net			(1,080	)			(0.1	)%			(1,164	)			(0.1	)%			(3,139	)			(0.1	)%			(1,922	)			(0.0	)%
Income before income taxes		$	262,168				17.0	%		$	237,949				16.6	%		$	792,217				17.3	%		$	693,694				16.4	%

 

---

We believe that providing our results on a “Same Facility” basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments, lawsuits and reserves established in connection with the government's investigation of our behavioral health care facilities, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and in the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2022 and Form 10-Q for the quarter ended June 30, 2023.

 

The All Behavioral Health Care Services table summarizes the results of operations for all our behavioral health care facilities during the periods presented. These amounts include: (i) our behavioral health results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months as well as the results of certain facilities that were closed or restructured during the past year.

 

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Universal Health Services, Inc.
Selected Hospital Statistics
For the Three Months Ended
September 30, 2023 and 2022
AS REPORTED:
		ACUTE												BEHAVIORAL HEALTH
		09/30/23				09/30/22				% change				09/30/23				09/30/22				% change
Hospitals owned and leased			27				28				-3.6	%			331				331				0.0	%
Average licensed beds			6,667				6,982				-4.5	%			24,194				24,222				-0.1	%
Average available beds			6,495				6,810				-4.6	%			24,094				24,122				-0.1	%
Patient days			384,348				386,341				-0.5	%			1,600,740				1,588,532				0.8	%
Average daily census			4,177.7				4,199.4				-0.5	%			17,399.3				17,266.7				0.8	%
Occupancy-licensed beds			62.7	%			60.1	%			4.2	%			71.9	%			71.3	%			0.9	%
Occupancy-available beds			64.3	%			61.7	%			4.3	%			72.2	%			71.6	%			0.9	%
Admissions			80,074				78,221				2.4	%			118,487				117,913				0.5	%
Length of stay			4.8				4.9				-2.8	%			13.5				13.4				0.8	%
Inpatient revenue		$	10,916,060			$	9,875,794				10.5	%		$	2,703,478			$	2,582,448				4.7	%
Outpatient revenue			7,480,353				6,379,324				17.3	%			259,060				248,167				4.4	%
Total patient revenue			18,396,413				16,255,118				13.2	%			2,962,538				2,830,615				4.7	%
Other revenue			251,985				215,179				17.1	%			81,149				67,228				20.7	%
Gross hospital revenue			18,648,398				16,470,297				13.2	%			3,043,687				2,897,843				5.0	%
Total deductions			16,631,110				14,550,619				14.3	%			1,500,992				1,463,015				2.6	%
Net hospital revenue		$	2,017,288			$	1,919,678				5.1	%		$	1,542,695			$	1,434,828				7.5	%
SAME FACILITY:
		ACUTE												BEHAVIORAL HEALTH
		09/30/23				09/30/22				% change				09/30/23				09/30/22				% change
Hospitals owned and leased			27				27				0.0	%			329				329				0.0	%
Average licensed beds			6,667				6,700				-0.5	%			23,983				24,077				-0.4	%
Average available beds			6,495				6,528				-0.5	%			23,883				23,977				-0.4	%
Patient days			384,348				372,480				3.2	%			1,589,806				1,577,358				0.8	%
Average daily census			4,177.7				4,048.7				3.2	%			17,280.5				17,145.2				0.8	%
Occupancy-licensed beds			62.7	%			60.4	%			3.7	%			72.1	%			71.2	%			1.2	%
Occupancy-available beds			64.3	%			62.0	%			3.7	%			72.4	%			71.5	%			1.2	%
Admissions			80,074				75,434				6.2	%			117,620				117,008				0.5	%
Length of stay			4.8				4.9				-2.8	%			13.5				13.5				0.3	%

 

---

Universal Health Services, Inc.
Selected Hospital Statistics
For the Nine Months Ended
September 30, 2023 and 2022
AS REPORTED:
		ACUTE												BEHAVIORAL HEALTH
		09/30/23				09/30/22				% change				09/30/23				09/30/22				% change
Hospitals owned and leased			27				28				-3.6	%			331				331				0.0	%
Average licensed beds			6,697				6,901				-3.0	%			24,203				24,269				-0.3	%
Average available beds			6,525				6,729				-3.0	%			24,103				24,169				-0.3	%
Patient days			1,172,957				1,168,248				0.4	%			4,761,887				4,669,598				2.0	%
Average daily census			4,296.5				4,279.3				0.4	%			17,442.8				17,104.8				2.0	%
Occupancy-licensed beds			64.2	%			62.0	%			3.5	%			72.1	%			70.5	%			2.3	%
Occupancy-available beds			65.8	%			63.6	%			3.5	%			72.4	%			70.8	%			2.3	%
Admissions			239,300				230,223				3.9	%			358,703				346,973				3.4	%
Length of stay			4.9				5.1				-3.4	%			13.3				13.5				-1.4	%
Inpatient revenue		$	33,278,396			$	29,821,756				11.6	%		$	8,001,838			$	7,580,475				5.6	%
Outpatient revenue			22,292,249				18,360,902				21.4	%			812,467				773,769				5.0	%
Total patient revenue			55,570,645				48,182,658				15.3	%			8,814,305				8,354,244				5.5	%
Other revenue			714,877				602,635				18.6	%			220,393				209,284				5.3	%
Gross hospital revenue			56,285,522				48,785,293				15.4	%			9,034,698				8,563,528				5.5	%
Total deductions			50,291,623				43,077,783				16.7	%			4,459,320				4,328,313				3.0	%
Net hospital revenue		$	5,993,899			$	5,707,510				5.0	%		$	4,575,378			$	4,235,215				8.0	%
SAME FACILITY:
		ACUTE												BEHAVIORAL HEALTH
		09/30/23				09/30/22				% change				09/30/23				09/30/22				% change
Hospitals owned and leased			27				27				0.0	%			329				329				0.0	%
Average licensed beds			6,581				6,619				-0.6	%			24,010				23,985				0.1	%
Average available beds			6,409				6,447				-0.6	%			23,910				23,885				0.1	%
Patient days			1,161,260				1,124,897				3.2	%			4,726,012				4,625,248				2.2	%
Average daily census			4,253.7				4,120.5				3.2	%			17,311.4				16,942.3				2.2	%
Occupancy-licensed beds			64.6	%			62.3	%			3.8	%			72.1	%			70.6	%			2.1	%
Occupancy-available beds			66.4	%			63.9	%			3.8	%			72.4	%			70.9	%			2.1	%
Admissions			236,911				221,868				6.8	%			355,419				343,014				3.6	%
Length of stay			4.9				5.1				-3.3	%			13.3				13.5				-1.4	%

 

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v3.23.3

Document and Entity Information	Oct. 25, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 25, 2023
Entity Registrant Name	UNIVERSAL HEALTH SERVICES, INC.
Entity Central Index Key	0000352915
Entity Emerging Growth Company	false
Entity File Number	1-10765
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-2077891
Entity Address, Address Line One	UNIVERSAL CORPORATE CENTER
Entity Address, Address Line Two	367 SOUTH GULPH ROAD
Entity Address, City or Town	KING OF PRUSSIA
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19406
City Area Code	610
Local Phone Number	768-3300
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of each class	Class B Common Stock
Trading Symbol	UHS
Security Exchange Name	NYSE

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