GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Universal Health Services Inc. Reports Operating Results (10-Q)

August 08, 2012 | About:
10qk

10qk

18 followers
Universal Health Services Inc. (UHS) filed Quarterly Report for the period ended 2012-06-30.

Universal Health Services, Inc. has a market cap of $3.81 billion; its shares were traded at around $39.73 with a P/E ratio of 9.8 and P/S ratio of 0.5. The dividend yield of Universal Health Services, Inc. stocks is 0.5%. Universal Health Services, Inc. had an annual average earning growth of 18.5% over the past 10 years. GuruFocus rated Universal Health Services, Inc. the business predictability rank of 3-star.

Highlight of Business Operations:

During the three-month period ended June 30, 2012, as compared to the comparable prior year quarter, net revenues at our acute care hospitals, on a same facility basis, decreased $19 million or 2%. Income before income taxes (and before income attributable to noncontrolling interests) decreased $18 million or 19% to $75 million or 8.8% of net revenues during the second quarter of 2012 as compared to $92 million or 10.7% of net revenues during the comparable prior year quarter.

During the three-month period ended June 30, 2012, as compared to the comparable prior year quarter, inpatient admissions to our acute care facilities decreased 4.3% and adjusted admissions (adjusted for outpatient activity) decreased 1.3%. Patient days at these facilities decreased 2.4% during the second quarter of 2012 and adjusted patient days increased 0.7% during the three-month period ended June 30, 2012 as compared to the comparable prior year quarter. The average length of inpatient stay at these facilities was 4.5 days and 4.4 days during the three-month periods ended June 30, 2012 and 2011, respectively. The occupancy rate, based on the average available beds at these facilities, was 53% and 55% during the three-month periods ended June 30, 2012 and 2011, respectively. During the three-month period ended June 30, 2012, net revenue per adjusted admission decreased 0.9% and net revenue per adjusted patient day decreased 2.9%, as compared to the comparable quarter of the prior year.

On a same facility basis, during the second quarter of 2012, as compared to the second quarter of 2011, net revenues at our behavioral health care facilities increased 4% or $34 million to $862 million from $827 million. Income before income taxes increased $23 million or 12% to $215 million or 25.0% of net revenues during the three-month period ended June 30, 2012, as compared to $192 million or 23.2% of net revenues during the comparable prior year quarter.

On a same facility basis, during the first six months of 2012, as compared to the comparable period of 2011, net revenues at our behavioral health care facilities increased 5% or $77 million to $1.72 billion from $1.64 billion. Income before income taxes increased $35 million or 9% to $413 million or 24.1% of net revenues during the six-month period ended June 30, 2012, as compared to $378 million or 23.0% of net revenues during the comparable period of 2011.

We receive Medicaid revenues in excess of $90 million annually from each of Texas, Pennsylvania, Washington, D.C., Illinois, Massachusetts and Virginia, making us particularly sensitive to reductions in Medicaid and other state based revenue programs (which have been implemented in various forms with respect to our areas of operation in the respective 2013 state fiscal years) as well as regulatory, economic, environmental and competitive changes in those states. In the states in which we operate, based upon the state budgets for the 2012 fiscal year (which generally began at various times during the second half of 2011), we estimate that, on a blended basis, our aggregate Medicaid rates have been reduced by approximately 3% to 4% (or approximately $45 million to $55 million annually) from the average rates in effect during the states 2011 fiscal years (which generally ended during the third quarter of 2011). Our consolidated results of operations for the three and six-month periods ended June 30, 2012 include the pro rata portion of these Medicaid rate reductions. Based upon the state budgets for the 2013 fiscal year (which generally begin at various times during the second half of 2012), we estimate that, on a blended basis, our aggregate Medicaid rates will be reduced by approximately .5% to 1% (or approximately $8 million to $15 million annually) from the average rates in effect during the states 2012 fiscal years (which generally end during the third quarter of 2012). We can provide no assurance that further reductions to Medicaid revenues, particularly in the above-mentioned states, will not have a material adverse effect on our future results of operations.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide