UHS Universal Health Services

 

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 24, 2024

 

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 24, 2024, 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 24, 2024.
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 24, 2024.
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 25, 2024

 

 

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Exhibit 99.1

FOR IMMEDIATE RELEASE

October 24, 2024

 

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

 

 

UNIVERSAL HEALTH SERVICES, INC.

ANNOUNCES 2024 THIRD QUARTER FINANCIAL RESULTS

 

 

Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended September 30, 2024 and 2023:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $258.7 million, or $3.80 per diluted share, during the third quarter of 2024, as compared to $167.0 million, or $2.40 per diluted share, during the third quarter of 2023. Net revenues increased by 11.2% to $3.963 billion during the third quarter of 2024, as compared to $3.563 billion during the third quarter of 2023.

As reflected on the Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”), our adjusted net income attributable to UHS during the third quarter of 2024 was $252.5 million, or $3.71 per diluted share, as compared to $177.5 million, or $2.55 per diluted share, during the third quarter of 2023.

As reflected on the Supplemental Schedule, included in our reported results during the third quarter of 2024 were: (i) an unrealized after-tax gain of $2.3 million, or $.03 per diluted share ($3.0 million pre-tax), resulting from an increase in the market value of certain equity securities (included in “Other (income) expense, net”), and; (ii) a favorable net after-tax impact of $3.9 million, or $.06 per diluted share, resulting from the net tax benefit recorded pursuant to “ASU 2016-09”, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, net of the impact of executive compensation limitations pursuant to IRC section 162(m).

As reflected on the Supplemental Schedule, included in our reported results during the third quarter of 2023, was an after-tax loss of $10.5 million, or $.15 per diluted share ($13.8 million pre-tax), resulting from a decrease 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 $528.6 million, or 13.3% of net revenues, during the third quarter of 2024, as compared to $410.1 million, or 11.5% of net revenues, during the third quarter of 2023. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was $526.5 million, or 13.3% of net revenues, during the third quarter of 2024, as compared to $421.5 million, or 11.8% of net revenues, during the third quarter of 2023.

Consolidated Results of Operations, As Reported and As Adjusted – Nine-month periods ended September 30, 2024 and 2023:

Reported net income attributable to UHS was $809.7 million, or $11.88 per diluted share, during the first nine months of 2024, as compared to $501.4 million, or $7.09 per diluted share, during the first nine months 2023. Net revenues increased by 10.7% to $11.714 billion during the first nine months of 2024, as compared to $10.578 billion during the comparable period of 2023.

As reflected on the Supplemental Schedule, our adjusted net income attributable to UHS during the first nine months of 2024 was $798.2 million, or $11.71 per diluted share, as compared to $524.5 million, or $7.42 per diluted share, during the comparable period of 2023.

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As reflected on the Supplemental Schedule, included in our reported results during the first nine months of 2024 were: (i) an unrealized after-tax loss of $4.0 million, or $.06 per diluted share ($5.3 million pre-tax), resulting from a decrease in the market value of certain equity securities (included in “Other (income) expense, net”), and; (ii) a favorable net after-tax impact of $15.5 million, or $.23 per diluted share, resulting from the above-mentioned net tax benefit recorded in connection with ASU 2016-09, net of the impact of executive compensation limitations pursuant to IRC section 162(m).

As reflected on the Supplemental Schedule, our reported results during the first nine months of 2023, included an unrealized after-tax loss of $23.0 million, or $.33 per diluted share, ($30.1 million pre-tax) resulting from a decrease in the market value of certain equity securities.

As calculated on the attached Supplemental Schedule, our EBITDA net of NCI, was $1.628 billion, or 13.9% of net revenues, during the first nine months of 2024, as compared to $1.237 billion, or 11.7% of net revenues, during the first nine months of 2023. Our Adjusted EBITDA net of NCI, which excludes the impact of other (income) expense, net, was $1.631 billion, or 13.9% of net revenues, during the first nine months of 2024, as compared to $1.268 billion, or 12.0% of net revenues, during the comparable period of 2023.

Acute Care Services – Three and nine-month periods ended September 30, 2024 and 2023:

During the third quarter of 2024, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased by 1.5% while adjusted patient days increased by 2.0%, as compared to the third quarter of 2023. At these facilities, during the third quarter of 2024, net revenue per adjusted admission increased by 7.0% while net revenue per adjusted patient day increased by 6.5%, as compared to the third quarter of 2023. Net revenues generated from our acute care services, on a same facility basis, increased by 9.2% during the third quarter of 2024, as compared to the third quarter of 2023.

During the nine-month period ended September 30, 2024, at our acute care hospitals on a same facility basis, adjusted admissions increased by 3.1% while adjusted patient days increased by 2.3%, as compared to the first nine months of 2023. At these facilities, during the first nine months of 2024, net revenue per adjusted admission increased by 5.0% while net revenue per adjusted patient day increased by 5.8%, as compared to the first nine months of 2023. Net revenues generated from our acute care services, on a same facility basis, increased by 8.5% during the first nine months of 2024, as compared to the comparable period of 2023.

Behavioral Health Care Services – Three and nine-month periods ended September 30, 2024 and 2023:

During the third quarter of 2024, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 2.2% while adjusted patient days increased by 1.8%, as compared to the third quarter of 2023. At these facilities, during the third quarter of 2024, net revenue per adjusted admission increased by 8.0% and net revenue per adjusted patient day increased by 8.5%, as compared to the third quarter of 2023. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 10.5% during the third quarter of 2024, as compared to the third quarter of 2023.

During the nine-month period ended September 30, 2024, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.3% while adjusted patient days increased by 1.7%, as compared to the first nine months of 2023. At these facilities, during the first nine months of 2024, net revenue per adjusted admission increased by 10.1% and net revenue per adjusted patient day increased by 8.7%, as compared to the first nine months of 2023. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 10.6% during the first nine months of 2024, as compared to the comparable period of 2023.

Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

During the nine-month period ended September 30, 2024, our net cash provided by operating activities was $1.409 billion as compared to $815 million during the first nine months of 2023. The $593 million net increase in our net cash provided by operating activities consisted of: (i) a favorable change of $353 million resulting from an increase in net income plus/minus depreciation and amortization expense, stock-based compensation expense, gains on sales of assets and businesses and costs related to extinguishment of debt; (ii) a favorable change of $205 million in accounts receivable; (iii) a favorable change of $66 million in other

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working capital accounts; (iv) an unfavorable change of $55 million in other assets and deferred charges, and; (v) $24 million of other combined net favorable changes.

Liquidity:

As previously disclosed on Form 8-K on October 1, 2024, in September, 2024, we completed the following financing transactions:

As of September 30, 2024, we had $1.01 billion of aggregate available borrowing capacity pursuant to our $1.3 billion revolving credit facility, net of outstanding borrowings and letters of credit.

Stock Repurchase Program:

In July, 2024, our Board of Directors authorized a $1.0 billion increase to our stock repurchase program. Pursuant to this 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 2024, we have repurchased 658,000 shares at an aggregate cost of approximately $153.9 million (approximately $234 per share) pursuant to the program. During the first nine months of 2024, we have repurchased 1.731 million shares at an aggregate cost of approximately $348.9 million (approximately $202 per share) pursuant to the program.

As of September 30, 2024, we had an aggregate available repurchase authorization of approximately $1.074 billion.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on October 25, 2024. 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. (the “Company”) has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues during 2023 were $14.282 billion. UHS ranked #299 on the Fortune 500; and #399 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 96,700 employees and, through its subsidiaries, operates 27 inpatient acute care hospitals, 334 inpatient behavioral health facilities, 49 outpatient

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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 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, 2024 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, 2023), 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:

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, the impact of ASU 2016-09 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

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Securities and Exchange Commission including our Report on Form 10-Q for the quarter ended June 30, 2024 and our Report on Form 10-K for the year ended December 31, 2023. 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,
		2024				2023				2024				2023
Net revenues		$	3,963,027				3,562,774			$	11,714,213				10,578,430
Operating charges:
Salaries, wages and benefits			1,912,308				1,784,870				5,611,304				5,308,476
Other operating expenses			1,090,197				941,219				3,165,483				2,758,484
Supplies expense			390,250				378,667				1,181,886				1,138,950
Depreciation and amortization			149,567				137,195				438,050				422,560
Lease and rental expense			36,540				35,466				108,165				105,775
			3,578,862				3,277,417				10,504,888				9,734,245
Income from operations			384,165				285,357				1,209,325				844,185
Interest expense, net			44,660				53,378				146,385				153,085
Other (income) expense, net			(2,028	)			11,472				3,315				31,797
Income before income taxes			341,533				220,507				1,059,625				659,303
Provision for income taxes			75,623				52,499				233,563				159,618
Net income			265,910				168,008				826,062				499,685
Less: Net income (loss) attributable to noncontrolling interests ("NCI")			7,196				1,019				16,362				(1,732	)
Net income attributable to UHS		$	258,714			$	166,989			$	809,700			$	501,417
Basic earnings per share attributable to UHS (a)		$	3.89			$	2.42			$	12.11			$	7.18
Diluted earnings per share attributable to UHS (a)		$	3.80			$	2.40			$	11.88			$	7.09

 

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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,
		2024				2023				2024				2023
(a) Earnings per share calculation:
Basic and diluted:
Net income attributable to UHS		$	258,714			$	166,989			$	809,700			$	501,417
Less: Net income attributable to unvested restricted share grants			0				(52	)			(50	)			(242	)
Net income attributable to UHS - basic and diluted		$	258,714			$	166,937			$	809,650			$	501,175
Weighted average number of common shares - basic			66,537				68,867				66,873				69,825
Basic earnings per share attributable to UHS:		$	3.89			$	2.42			$	12.11			$	7.18
Weighted average number of common shares			66,537				68,867				66,873				69,825
Add: Other share equivalents			1,571				757				1,297				825
Weighted average number of common shares and equiv. - diluted			68,108				69,624				68,170				70,650
Diluted earnings per share attributable to UHS:		$	3.80			$	2.40			$	11.88			$	7.09

 

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Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")
For the Three Months ended September 30, 2024 and 2023
(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, 2024				revenues				September 30, 2023				revenues
Net income attributable to UHS	$	258,714							$	166,989
Depreciation and amortization		149,567								137,195
Interest expense, net		44,660								53,378
Provision for income taxes		75,623								52,499
EBITDA net of NCI	$	528,564				13.3	%		$	410,061				11.5	%
Other (income) expense, net		(2,028	)							11,472
Adjusted EBITDA net of NCI	$	526,536				13.3	%		$	421,533				11.8	%
Net revenues	$	3,963,027							$	3,562,774
Calculation of Adjusted Net Income Attributable to UHS
	Three months ended								Three months ended
	September 30, 2024								September 30, 2023
					Per								Per
	Amount				Diluted Share				Amount				Diluted Share
Net income attributable to UHS	$	258,714			$	3.80			$	166,989			$	2.40
Plus/minus after-tax adjustments:
Unrealized (gain) loss on equity securities		(2,275	)			(0.03	)			10,528				0.15
Impact of ASU 2016-09, net		(3,928	)			(0.06	)			-				-
Subtotal adjustments		(6,203	)			(0.09	)			10,528				0.15
Adjusted net income attributable to UHS	$	252,511			$	3.71			$	177,517			$	2.55

 

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Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")
For the Nine Months ended September 30, 2024 and 2023
(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, 2024				revenues				September 30, 2023				revenues
Net income attributable to UHS	$	809,700							$	501,417
Depreciation and amortization		438,050								422,560
Interest expense, net		146,385								153,085
Provision for income taxes		233,563								159,618
EBITDA net of NCI	$	1,627,698				13.9	%		$	1,236,680				11.7	%
Other (income) expense, net		3,315								31,797
Adjusted EBITDA net of NCI	$	1,631,013				13.9	%		$	1,268,477				12.0	%
Net revenues	$	11,714,213							$	10,578,430
Calculation of Adjusted Net Income Attributable to UHS
	Nine months ended								Nine months ended
	September 30, 2024								September 30, 2023
					Per								Per
	Amount				Diluted Share				Amount				Diluted Share
Net income attributable to UHS	$	809,700			$	11.88			$	501,417			$	7.09
Plus/minus after-tax adjustments:
Unrealized loss on equity securities	$	4,038				0.06				23,040				0.33
Impact of ASU 2016-09, net		(15,540	)			(0.23	)			-				-
Subtotal adjustments		(11,502	)			(0.17	)			23,040				0.33
Adjusted net income attributable to UHS	$	798,198			$	11.71			$	524,457			$	7.42

 

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Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
		September 30,				December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents		$	106,077			$	119,439
Accounts receivable, net			2,214,268				2,238,265
Supplies			220,062				216,988
Other current assets			261,549				236,658
Total current assets			2,801,956				2,811,350
Property and equipment			12,448,230				11,777,047
Less: accumulated depreciation			(6,005,664	)			(5,652,518	)
			6,442,566				6,124,529
Other assets:
Goodwill			3,965,492				3,932,407
Deferred income taxes			121,904				85,626
Right of use assets-operating leases			421,441				433,962
Deferred charges			9,705				6,974
Other			590,784				572,754
Total Assets		$	14,353,848			$	13,967,602
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term debt		$	38,351			$	126,686
Accounts payable and other liabilities			1,896,234				1,813,015
Operating lease liabilities			72,801				71,600
Federal and state taxes			3,802				2,046
Total current liabilities			2,011,188				2,013,347
Other noncurrent liabilities			660,247				584,007
Operating lease liabilities noncurrent			377,644				382,559
Long-term debt			4,618,060				4,785,783
Redeemable noncontrolling interest			5,623				5,191
UHS common stockholders' equity			6,605,696				6,149,001
Noncontrolling interest			75,390				47,714
Total equity			6,681,086				6,196,715
Total Liabilities and Stockholders' Equity		$	14,353,848			$	13,967,602

 

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Universal Health Services, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Nine months
	ended September 30,
	2024				2023
Cash Flows from Operating Activities:
Net income	$	826,062			$	499,685
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization		438,050				422,560
Gains on sale of assets and businesses		(5,124	)			(6,250	)
Costs related to extinguishment of debt		3,158				0
Stock-based compensation expense		72,727				65,702
Changes in assets & liabilities, net of effects from acquisitions and dispositions:
Accounts receivable		11,703				(193,108	)
Accrued interest		(1,762	)			60
Accrued and deferred income taxes		(10,949	)			(33,240	)
Other working capital accounts		1,329				(65,062	)
Medicare accelerated payments and deferred CARES Act and other grants		0				1,764
Other assets and deferred charges		(5,621	)			48,985
Other		25,732				13,717
Accrued insurance expense, net of commercial premiums paid		175,104				141,414
Payments made in settlement of self-insurance claims		(121,745	)			(80,861	)
Net cash provided by operating activities		1,408,664				815,366
Cash Flows from Investing Activities:
Property and equipment additions		(697,865	)			(536,665	)
Proceeds received from sales of assets and businesses		30,219				23,688
Acquisition of businesses and property		0				(3,728	)
Outflows from foreign exchange contracts that hedge our net U.K. investment		(35,667	)			(7,723	)
Decrease in capital reserves of commercial insurance subsidiary		197				0
Net cash used in investing activities		(703,116	)			(524,428	)
Cash Flows from Financing Activities:
Repayments of long-term debt		(2,471,515	)			(54,009	)
Additional borrowings		2,210,248				165,000
Financing costs		(9,992	)			(308	)
Repurchase of common shares		(420,588	)			(385,339	)
Dividends paid		(40,302	)			(41,964	)
Issuance of common stock		10,864				9,841
Profit distributions to noncontrolling interests		(5,791	)			(5,258	)
Sale of ownership interests to minority members		8,959				408
Net cash used in financing activities		(718,117	)			(311,629	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		2,696				493
Increase (decrease) in cash, cash equivalents and restricted cash		(9,873	)			(20,198	)
Cash, cash equivalents and restricted cash, beginning of period		214,470				200,837
Cash, cash equivalents and restricted cash, end of period	$	204,597			$	180,639
Supplemental Disclosures of Cash Flow Information:
Interest paid	$	144,378			$	149,247
Income taxes paid, net of refunds	$	236,975			$	191,189
Noncash purchases of property and equipment	$	87,333			$	108,412

 

---

Universal Health Services, Inc.
Supplemental Statistical Information
(unaudited)
					% Change		% Change
Same Facility:					Three Months ended		Nine Months Ended
					9/30/2024		9/30/2024
Acute Care Services
Revenues					9.2%		8.5%
Adjusted Admissions					1.5%		3.1%
Adjusted Patient Days					2.0%		2.3%
Revenue Per Adjusted Admission					7.0%		5.0%
Revenue Per Adjusted Patient Day					6.5%		5.8%
Behavioral Health Care Services
Revenues					10.5%		10.6%
Adjusted Admissions					2.2%		0.3%
Adjusted Patient Days					1.8%		1.7%
Revenue Per Adjusted Admission					8.0%		10.1%
Revenue Per Adjusted Patient Day					8.5%		8.7%
UHS Consolidated	Third quarter ended				Nine Months Ended
	9/30/2024		9/30/2023		9/30/2024		9/30/2023
Revenues	$3,963,027		$3,562,774		$11,714,213		$10,578,430
EBITDA net of NCI	$528,564		$410,061		$1,627,698		$1,236,680
EBITDA Margin net of NCI	13.3%		11.5%		13.9%		11.7%
Adjusted EBITDA net of NCI	$526,536		$421,533		$1,631,013		$1,268,477
Adjusted EBITDA Margin net of NCI	13.3%		11.8%		13.9%		12.0%
Cash Flow From Operations	$332,977		$161,665		$1,408,664		$815,366
Capital Expenditures	$247,932		$200,001		$697,865		$536,665
Days Sales Outstanding					52		58
Debt					$4,656,411		$4,922,629
UHS' Shareholders Equity					$6,605,696		$6,064,915
Debt / Total Capitalization					41.3%		44.8%
Debt / EBITDA net of NCI (1)					2.21		2.97
Debt / Adjusted EBITDA net of NCI (1)					2.21		2.83
Debt / Cash From Operations (1)					2.50		4.42
(1) Latest 4 quarters.

 

---

Universal Health Services, Inc.

Acute Care Hospital Services

For the Three and Nine Months ended

September 30, 2024 and 2023

(in thousands)

(unaudited)

 

Same Facility Basis - Acute Care Hospital Services
		Three months ended								Three months ended								Nine months ended								Nine months ended
		September 30, 2024								September 30, 2023								September 30, 2024								September 30, 2023
		Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues
Net revenues		$	2,147,732				100.0	%		$	1,965,985				100.0	%		$	6,355,078				100.0	%		$	5,858,015				100.0	%
Operating charges:
Salaries, wages and benefits			893,436				41.6	%			854,284				43.5	%			2,609,544				41.1	%			2,517,163				43.0	%
Other operating expenses			598,840				27.9	%			543,584				27.6	%			1,754,999				27.6	%			1,604,084				27.4	%
Supplies expense			332,799				15.5	%			323,580				16.5	%			1,011,602				15.9	%			976,712				16.7	%
Depreciation and amortization			93,752				4.4	%			86,437				4.4	%			278,062				4.4	%			273,646				4.7	%
Lease and rental expense			24,202				1.1	%			24,443				1.2	%			72,308				1.1	%			72,459				1.2	%
Subtotal-operating expenses			1,943,029				90.5	%			1,832,328				93.2	%			5,726,515				90.1	%			5,444,064				92.9	%
Income from operations			204,703				9.5	%			133,657				6.8	%			628,563				9.9	%			413,951				7.1	%
Interest expense, net			1,077				0.1	%			(778	)			(0.0	)%			3,363				0.1	%			(1,858	)			(0.0	)%
Other (income) expense, net			(590	)			(0.0	)%			(490	)			(0.0	)%			(1,348	)			(0.0	)%			5,723				0.1	%
Income before income taxes		$	204,216				9.5	%		$	134,925				6.9	%		$	626,548				9.9	%		$	410,086				7.0	%
All Acute Care Hospital Services
		Three months ended								Three months ended								Nine months ended								Nine months ended
		September 30, 2024								September 30, 2023								September 30, 2024								September 30, 2023
		Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues
Net revenues		$	2,245,517				100.0	%		$	2,017,288				100.0	%		$	6,604,007				100.0	%		$	5,993,899				100.0	%
Operating charges:
Salaries, wages and benefits			894,551				39.8	%			854,587				42.4	%			2,612,118				39.6	%			2,534,878				42.3	%
Other operating expenses			699,316				31.1	%			596,834				29.6	%			2,009,231				30.4	%			1,731,750				28.9	%
Supplies expense			332,772				14.8	%			323,475				16.0	%			1,011,460				15.3	%			979,185				16.3	%
Depreciation and amortization			94,522				4.2	%			86,535				4.3	%			279,048				4.2	%			274,165				4.6	%
Lease and rental expense			24,490				1.1	%			24,440				1.2	%			72,638				1.1	%			72,629				1.2	%
Subtotal-operating expenses			2,045,651				91.1	%			1,885,871				93.5	%			5,984,495				90.6	%			5,592,607				93.3	%
Income from operations			199,866				8.9	%			131,417				6.5	%			619,512				9.4	%			401,292				6.7	%
Interest expense, net			1,077				0.0	%			(778	)			(0.0	)%			3,363				0.1	%			(1,858	)			(0.0	)%
Other (income) expense, net			(527	)			(0.0	)%			(211	)			(0.0	)%			(354	)			(0.0	)%			6,921				0.1	%
Income before income taxes		$	199,316				8.9	%		$	132,406				6.6	%		$	616,503				9.3	%		$	396,229				6.6	%

 

---

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, 2023 and our Form 10-Q for the quarter ended June 30, 2024 .

 

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, 2024 and 2023

(in thousands)

(unaudited)

 

Same Facility - Behavioral Health Care Services
		Three months ended								Three months ended								Nine months ended								Nine months ended
		September 30, 2024								September 30, 2023								September 30, 2024								September 30, 2023
		Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues
Net revenues		$	1,672,453				100.0	%		$	1,514,017				100.0	%		$	4,972,612				100.0	%		$	4,494,791				100.0	%
Operating charges:
Salaries, wages and benefits			916,435				54.8	%			842,683				55.7	%			2,679,938				53.9	%			2,494,850				55.5	%
Other operating expenses			313,402				18.7	%			294,788				19.5	%			934,107				18.8	%			869,771				19.4	%
Supplies expense			57,723				3.5	%			55,112				3.6	%			171,594				3.5	%			161,371				3.6	%
Depreciation and amortization			52,075				3.1	%			47,472				3.1	%			149,094				3.0	%			139,358				3.1	%
Lease and rental expense			11,806				0.7	%			10,883				0.7	%			34,908				0.7	%			32,684				0.7	%
Subtotal-operating expenses			1,351,441				80.8	%			1,250,938				82.6	%			3,969,641				79.8	%			3,698,034				82.3	%
Income from operations			321,012				19.2	%			263,079				17.4	%			1,002,971				20.2	%			796,757				17.7	%
Interest expense, net			1,041				0.1	%			1,252				0.1	%			3,076				0.1	%			3,455				0.1	%
Other (income) expense, net			(794	)			(0.0	)%			(985	)			(0.1	)%			(2,341	)			(0.0	)%			(2,294	)			(0.1	)%
Income before income taxes		$	320,765				19.2	%		$	262,812				17.4	%		$	1,002,236				20.2	%		$	795,596				17.7	%
All Behavioral Health Care Services
		Three months ended								Three months ended								Nine months ended								Nine months ended
		September 30, 2024								September 30, 2023								September 30, 2024								September 30, 2023
		Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues				Amount				% of Net Revenues
Net revenues		$	1,714,914				100.0	%		$	1,542,695				100.0	%		$	5,102,290				100.0	%		$	4,575,378				100.0	%
Operating charges:
Salaries, wages and benefits			919,301				53.6	%			844,244				54.7	%			2,690,118				52.7	%			2,498,338				54.6	%
Other operating expenses			354,331				20.7	%			322,208				20.9	%			1,054,007				20.7	%			949,958				20.8	%
Supplies expense			57,830				3.4	%			55,272				3.6	%			172,031				3.4	%			161,597				3.5	%
Depreciation and amortization			52,452				3.1	%			47,720				3.1	%			150,949				3.0	%			140,117				3.1	%
Lease and rental expense			11,956				0.7	%			10,911				0.7	%			35,235				0.7	%			32,834				0.7	%
Subtotal-operating expenses			1,395,870				81.4	%			1,280,355				83.0	%			4,102,340				80.4	%			3,782,844				82.7	%
Income from operations			319,044				18.6	%			262,340				17.0	%			999,950				19.6	%			792,534				17.3	%
Interest expense, net			1,041				0.1	%			1,252				0.1	%			3,076				0.1	%			3,456				0.1	%
Other (income) expense, net			(861	)			(0.1	)%			(1,080	)			(0.1	)%			(2,408	)			(0.0	)%			(3,139	)			(0.1	)%
Income before income taxes		$	318,864				18.6	%		$	262,168				17.0	%		$	999,282				19.6	%		$	792,217				17.3	%

 

---

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 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 the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2023 and our Form 10-Q for the quarter ended June 30, 2024.

 

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.

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Universal Health Services, Inc.
Selected Hospital Statistics
For the Three Months Ended
September 30, 2024 and 2023
(unaudited)
AS REPORTED:
		ACUTE												BEHAVIORAL HEALTH
		09/30/24				09/30/23				% change				09/30/24				09/30/23				% change
Hospitals owned and leased			27				27				0.0	%			334				331				0.9	%
Average licensed beds			6,657				6,667				-0.1	%			24,446				24,194				1.0	%
Average available beds			6,485				6,495				-0.2	%			24,346				24,094				1.0	%
Patient days			393,521				384,348				2.4	%			1,630,369				1,600,740				1.9	%
Average daily census			4,277.4				4,177.7				2.4	%			17,721.4				17,399.3				1.9	%
Occupancy-licensed beds			64.3	%			62.7	%			2.5	%			72.5	%			71.9	%			0.8	%
Occupancy-available beds			66.0	%			64.3	%			2.5	%			72.8	%			72.2	%			0.8	%
Admissions			81,731				80,074				2.1	%			121,421				118,487				2.5	%
Length of stay			4.8				4.8				0.3	%			13.4				13.5				-0.6	%
Inpatient revenue		$	12,277,563			$	10,916,060				12.5	%		$	2,835,301			$	2,703,478				4.9	%
Outpatient revenue			8,573,270				7,480,353				14.6	%			268,182				259,060				3.5	%
Total patient revenue			20,850,833				18,396,413				13.3	%			3,103,483				2,962,538				4.8	%
Other revenue			266,822				251,985				5.9	%			84,770				81,149				4.5	%
Gross revenue			21,117,655				18,648,398				13.2	%			3,188,253				3,043,687				4.7	%
Total deductions			18,872,138				16,631,110				13.5	%			1,473,339				1,500,992				-1.8	%
Net revenue		$	2,245,517			$	2,017,288				11.3	%		$	1,714,914			$	1,542,695				11.2	%
SAME FACILITY:
		ACUTE												BEHAVIORAL HEALTH
		09/30/24				09/30/23				% change				09/30/24				09/30/23				% change
Hospitals owned and leased			27				27				0.0	%			333				333				0.0	%
Average licensed beds			6,657				6,667				-0.1	%			24,277				24,012				1.1	%
Average available beds			6,485				6,495				-0.2	%			24,177				23,912				1.1	%
Patient days			393,521				384,348				2.4	%			1,618,344				1,586,108				2.0	%
Average daily census			4,277.4				4,177.7				2.4	%			17,590.7				17,240.3				2.0	%
Occupancy-licensed beds			64.3	%			62.7	%			2.5	%			72.5	%			71.8	%			0.9	%
Occupancy-available beds			66.0	%			64.3	%			2.5	%			72.8	%			72.1	%			0.9	%
Admissions			81,731				80,074				2.1	%			120,515				117,635				2.4	%
Length of stay			4.8				4.8				0.3	%			13.4				13.5				-0.4	%

 

---

Universal Health Services, Inc.
Selected Hospital Statistics
For the Nine Months Ended
September 30, 2024 and 2023
AS REPORTED:
		ACUTE												BEHAVIORAL HEALTH
		09/30/24				09/30/23				% change				09/30/24				09/30/23				% change
Hospitals owned and leased			27				27				0.0	%			334				331				0.9	%
Average licensed beds			6,657				6,697				-0.6	%			24,413				24,203				0.9	%
Average available beds			6,485				6,525				-0.6	%			24,313				24,103				0.9	%
Patient days			1,199,271				1,172,957				2.2	%			4,858,431				4,761,887				2.0	%
Average daily census			4,376.9				4,296.5				1.9	%			17,731.5				17,442.8				1.7	%
Occupancy-licensed beds			65.7	%			64.2	%			2.5	%			72.6	%			72.1	%			0.8	%
Occupancy-available beds			67.5	%			65.8	%			2.5	%			72.9	%			72.4	%			0.8	%
Admissions			247,170				239,300				3.3	%			361,149				358,703				0.7	%
Length of stay			4.9				4.9				0.0	%			13.5				13.3				1.7	%
Inpatient revenue		$	37,522,395			$	33,278,396				12.8	%		$	8,375,470			$	8,001,838				4.7	%
Outpatient revenue			25,553,451				22,292,249				14.6	%			833,260				812,467				2.6	%
Total patient revenue			63,075,846				55,570,645				13.5	%			9,208,730				8,814,305				4.5	%
Other revenue			747,424				714,877				4.6	%			247,182				220,393				12.2	%
Gross revenue			63,823,270				56,285,522				13.4	%			9,455,912				9,034,698				4.7	%
Total deductions			57,219,263				50,291,623				13.8	%			4,353,622				4,459,320				-2.4	%
Net revenue		$	6,604,007			$	5,993,899				10.2	%		$	5,102,290			$	4,575,378				11.5	%
SAME FACILITY:
		ACUTE												BEHAVIORAL HEALTH
		09/30/24				09/30/23				% change				09/30/24				09/30/23				% change
Hospitals owned and leased			27				27				0.0	%			333				333				0.0	%
Average licensed beds			6,657				6,634				0.3	%			24,189				24,060				0.5	%
Average available beds			6,485				6,462				0.4	%			24,089				23,960				0.5	%
Patient days			1,199,271				1,166,693				2.8	%			4,819,550				4,726,531				2.0	%
Average daily census			4,376.9				4,273.6				2.4	%			17,589.6				17,313.3				1.6	%
Occupancy-licensed beds			65.7	%			64.4	%			2.1	%			72.7	%			72.0	%			1.1	%
Occupancy-available beds			67.5	%			66.1	%			2.1	%			73.0	%			72.3	%			1.1	%
Admissions			247,170				238,237				3.7	%			358,114				356,028				0.6	%
Length of stay			4.9				4.9				0.0	%			13.5				13.3				1.5	%

 

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v3.24.3

Document and Entity Information	Oct. 24, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 24, 2024
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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