Financial Data and Key Metrics Changes - The company reported net income attributable to Universal Health Services per diluted share of 4.96forQ42024,withadjustednetincomeperdilutedshareat4.92 [6] - Adjusted admissions to acute care hospitals increased by 2.2% year-over-year, while same facility net revenues in the acute care segment rose by 8.7%, driven by a 5.3% increase in net revenue per adjusted admission [6] - Operating expenses were well managed, with premium pay declining from 153millioninQ12022to60 million in Q4 2024, consistent with the previous two quarters [7] - Cash generated from operating activities was 658millioninQ42024,comparedto452 million in Q4 2023, and 2.067billionforthefullyear2024,upfrom1.268 billion in 2023 [9] Business Line Data and Key Metrics Changes - Same facility revenues at behavioral health hospitals increased by 11.1%, primarily due to an 8.7% increase in revenue per adjusted patient day [8] - The company opened West Henderson Hospital in Las Vegas in late 2024 and plans to open Cedar Hill Medical Center in Washington DC soon, expecting these facilities to be EBITDA positive in 2025 [10] Market Data and Key Metrics Changes - The company experienced a 35millionincreaseinreservesforself−insuredprofessionalandgeneralliabilityclaimsduetounfavorabletrends[9]−Thecompanyhad1.17 billion of available borrowing capacity under its 1.3billionrevolvingcreditfacilityasofDecember31,2024[12]CompanyStrategyandDevelopmentDirection−Thecompanyaimsformid−single−digitEBITDAgrowthin2025,withexpectationsofstablesalaryandwagetrends[13]−Thereisafocusonexpandingoutpatientpresenceandbroadeningthecontinuumofcare,withsignificantinvestmentsintechnologyforbehavioralhospitals[14]−ThecompanyacknowledgesuncertaintyinthepoliticalenvironmentregardingMedicaidreimbursement,whichcouldimpactfutureforecasts[15]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceinsoliddemandforbehavioralservices,forecastingsamefacilityadjustedpatientdaygrowthof2.5599 million of its own shares in 2024, representing approximately 32% of shares outstanding since January 1, 2019 [11] - The company expects total consolidated Medicaid supplemental payments to decrease slightly compared to 2024 [13] Q&A Session Summary Question: What is driving the higher underlying growth in 2025 despite state supplemental payments forecasted to be down year over year? - Management indicated that core EBITDA growth is driven by solid volume growth, robust pricing, and effective expense control [20] Question: Why is the guidance range wider than usual? - Management acknowledged that items beyond their control, such as government reimbursement changes, contributed to the wider range [24] Question: What is the main reason for the decline in DPP payments? - The decline is primarily due to recognizing DPP payments related to prior periods in 2024 [29] Question: How adequate are the malpractice reserves? - Management stated that they have moved towards the higher end of the range for reserves, hoping for conservatism built into those reserves [32] Question: What are the drivers for the acceleration in behavioral same store patient days? - Management noted that the decline in outpatient day volumes in December was temporary and expects growth to rebound [39] Question: What is the expected impact of the flu season on Q1? - Management indicated that while the flu season has been busy, it typically does not significantly impact earnings [131] Question: What is the targeted leverage ratio? - Management stated that they historically operate at a leverage level in the high twos, approaching three [60] Question: What is the expected contribution from DPP programs in guidance? - Management estimated that about half of the DPP money is in the forecast, with some programs still pending approval [95]
