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UHS(UHS) - 2024 Q3 - Quarterly Report
UHSUHS(UHS)2024-11-08 21:15
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Facilities and Operations - As of September 30, 2024, the company owned and/or operated 361 inpatient facilities and 49 outpatient facilities across 39 states, Washington, D.C., the U.K., and Puerto Rico[68]. - Average daily census for acute care facilities increased to 4,277.4 for the three-month period ended September 30, 2024, compared to 4,177.7 for the same period in 2023[85]. - Average daily census for behavioral health care services was 17,590.7 for the three months ended September 30, 2024, compared to 17,240.3 in the same period of 2023[97]. - Total admissions for acute care facilities increased to 81,731 for the three-month period ended September 30, 2024, compared to 80,074 for the same period in 2023[85]. - The occupancy rate for the facilities was 73% for the nine-month period ended September 30, 2024, compared to 72% in the prior year[101]. Financial Performance - Net revenues increased by 11.2%, or 400million,to400 million, to 3.963 billion for the three-month period ended September 30, 2024, compared to 3.563billioninthesameperiodof2023[80].−Incomebeforeincometaxesincreasedby3.563 billion in the same period of 2023[80]. - Income before income taxes increased by 121 million, or 55%, to 342millionduringthethree−monthperiodendedSeptember30,2024,comparedto342 million during the three-month period ended September 30, 2024, compared to 221 million in the third quarter of 2023[80]. - Net income attributable to UHS increased by 92million,or5592 million, or 55%, to 259 million during the three-month period ended September 30, 2024, compared to 167millioninthesameperiodof2023[80].−NetrevenuesfortheninemonthsendedSeptember30,2024,are167 million in the same period of 2023[80]. - Net revenues for the nine months ended September 30, 2024, are 9,384,032 thousand, compared to 11,454,260thousandforthetwelvemonthsendedDecember31,2023,indicatingadecline[180].−NetincomefortheninemonthsendedSeptember30,2024,is11,454,260 thousand for the twelve months ended December 31, 2023, indicating a decline[180]. - Net income for the nine months ended September 30, 2024, is 689,397 thousand, an increase from 556,423thousandforthetwelvemonthsendedDecember31,2023[180].RevenueSources−Netrevenuesfromacutecarehospitalsandoutpatientfacilitiesaccountedfor57556,423 thousand for the twelve months ended December 31, 2023[180]. Revenue Sources - Net revenues from acute care hospitals and outpatient facilities accounted for 57% of consolidated net revenues for the three-month periods ended September 30, 2024 and 2023[69]. - Behavioral health care facilities in the U.K. generated net revenues of approximately 230 million for the three-month period ended September 30, 2024, compared to 203millionforthesameperiodin2023[69].−Thecompanyexperienceda203 million for the same period in 2023[69]. - The company experienced a 975 million, or 9.4%, increase in net revenues from acute care hospital services and behavioral health services on a same facility basis[82]. - For the nine-month period ended September 30, 2024, net revenues from acute care hospital services increased by 610million,or10.2610 million, or 10.2%, due to a 497 million increase in Same Facility revenues[92]. - Net revenues from behavioral health services increased by 527million,or11.5527 million, or 11.5%, during the nine-month period ended September 30, 2024, compared to the same period in 2023[105]. Expenses and Costs - The company experienced significant increases in hospital-based physician-related expenses, particularly in emergency room care and anesthesiology, which could adversely impact future results[72]. - Salaries, wages, and benefits accounted for 48.3% of net revenues in Q3 2024, compared to 50.1% in Q3 2023[80]. - Other operating expenses increased to 1.090 billion, representing 27.5% of net revenues in Q3 2024, up from 26.4% in Q3 2023[80]. - Salaries, wages, and benefits expense increased by 39million,or4.639 million, or 4.6%, but as a percentage of net revenues, it decreased to 41.6% in Q3 2024 from 43.5% in Q3 2023[87]. - Other operating expenses increased by 102 million, or 17.2%, in the third quarter of 2024, attributed to a 55millionincreaserelatedtoacutecarehospitalservicesanda55 million increase related to acute care hospital services and a 47 million increase in provider tax assessments[92]. Regulatory and Legislative Risks - The company faces risks related to potential changes in healthcare legislation that could impact reimbursement levels and operational costs[74]. - The Budget Control Act of 2011 has resulted in Medicare payment reductions of up to 2% per fiscal year, extended through 2032, impacting the company's financial outlook[75]. - The company is particularly sensitive to potential reductions in Medicaid and other state-based revenue programs, receiving approximately 100millionannuallyfrommultiplestates[75].−TheManagedCareRulecouldhaveamaterialadverseimpactonthecompany′sfutureresultsofoperationsifimplementedasproposed[150].−TheMedicaidDSHpaymentsarescheduledtobereducedby100 million annually from multiple states[75]. - The Managed Care Rule could have a material adverse impact on the company's future results of operations if implemented as proposed[150]. - The Medicaid DSH payments are scheduled to be reduced by 8 billion annually from FFY 2025 through FFY 2027, with delays in implementation due to recent legislation[153]. Cash Flow and Financing - Net cash provided by operating activities increased by 593millionto593 million to 1.409 billion for the nine-month period ended September 30, 2024, compared to 815millionforthesameperiodin2023[166].−Thecompanyspent815 million for the same period in 2023[166]. - The company spent 718 million on net cash used in financing activities during the first nine months of 2024, compared to 312millioninthesameperiodin2023[169].−Thecompanygenerated312 million in the same period in 2023[169]. - The company generated 2.210 billion from additional borrowings during the first nine months of 2024, including 1.200billionfromanewtrancheAtermloanfacility[169].−Thecompanyincurredapre−taxchargeofapproximately1.200 billion from a new tranche A term loan facility[169]. - The company incurred a pre-tax charge of approximately 6 million related to the costs of extinguishing debt during the three and nine-month periods ended September 30, 2024[163]. - The company anticipates sufficient capital resources to fund its operating, investing, and financing requirements for the next twelve months[174]. Insurance and Liabilities - As of September 30, 2024, the company has approximately 221millioninaggregateinsurancecoverageremainingundercommercialpoliciesformattersapplicabletothe2020policyyear[74].−TotalliabilitiesasofSeptember30,2024,are221 million in aggregate insurance coverage remaining under commercial policies for matters applicable to the 2020 policy year[74]. - Total liabilities as of September 30, 2024, are 7,333,860 thousand, a slight decrease from 7,515,013thousandonDecember31,2023[179].−Off−balancesheetarrangementsasofSeptember30,2024,total7,515,013 thousand on December 31, 2023[179]. - Off-balance sheet arrangements as of September 30, 2024, total 154 million, including 130millionrelatedtoself−insuranceprograms[183].−Thecompanyhasgoodwillof130 million related to self-insurance programs[183]. - The company has goodwill of 3,262 million as of September 30, 2024, compared to 3,267milliononDecember31,2023[179].−Thecarryingvalueofthecompany′sdebtwasapproximately3,267 million on December 31, 2023[179]. - The carrying value of the company's debt was approximately 4.7 billion as of September 30, 2024, down from $4.9 billion at December 31, 2023[174].