Universal Health Services has followed in the wake of other outperforming for-profit health systems during the second quarter of 2021, reporting $325 million in profits and a 17.1% year-over-year increase in net revenues.
UHS is increasing its forecast for the remainder of 2021 by a percent or two, now predicting net revenues for the year will fall between $12.12 billion and $12.36 billion.
The for-profit’s board has also authorized a $1 billion increase to its stock repurchase program, bumping it up from $2.7 billion to $3.7 billion since 2014.
UHS noted that it has returned all $189 million that it received this year back to the government using its cash reserves.
“Therefore, our results of operations for the three and six-month periods ended June 30, 2021 include no impact from the receipt of those funds,” it wrote in the earnings announcement.
King of Prussia, Pennsylvania-based UHS owns and operates 26 hospitals and employs approximately 89,000 people. It reported $11.6 billion in 2020 revenues, which was up 1.6% from the previous year’s $11.4 billion despite the pandemic.
For the second quarter of 2021 ended on June 30, UHS’ $325 million net income represented a 29% increase from the $251.9 million reported during the second quarter of 2020.
Year-over-year net revenues grew from $2.7 billion to $3.2 billion for the three-month period of each year and from $5.6 billion to $6.2 billion for the first halves.
Among UHS’ acute care hospitals, revenues, adjusted admissions and adjusted patient days for the quarter were up 18.5%, 26.4% and 21.6%, respectively, compared to the prior year’s quarter.
These volumes “reflect robust recoveries from the COVID-19 pandemic-related restrictions and policies that negatively affected patient volumes during the second quarter of 2020,” the system wrote in its earnings announcement.
UHS behavioral health hospitals’ revenues and volumes were also higher, albeit to a lesser degree. Here, revenue jumped 13.7% year-over-year while adjusted admissions and adjusted patient days rose 14.1% and 7.4%.
Net revenue for both of these service groups included $218 million of recognized government stimulus funding from the CARES Act and other programs, the system noted. About $157 million of this net revenue was attributable to UHS’ acute care services, while about $61 million went to its behavioral healthcare services.
UHS is currently sitting on $199 million in cash and cash equivalents and $996 million of aggregate available borrowing capacity.
The system noted that it has added just $119 million to its cash on hand as a result of its operating activities, down from $1.45 billion during the year prior. The system attributed the majority of that decline, about $695 million, to Medicare accelerated payments made during the first quarter.
UHS’ results from the quarter keep up the rising profits and volumes trend reported last week by HCA and Tenet Healthcare. The former outlined a nearly 20% year-over-year increase in admissions and a $1.4 billion profit for the quarter, while the latter touted a 13.7% gain in hospital admissions and a 36% increase in net income to $120 million.