Universal Health Services reported a 38.8% increase in its net income in the fourth quarter as its acute-care and behavioral health hospitals saw increases in volume.
The King of Prussia, Pa.-based chain reported $172.8 million in net income on $2.1 billion in revenue for the period compared with $124.5 million in net income on $1.8 billion in revenue during the fourth quarter of 2013.
In its acute-care division, same-hospital admissions increased 3.5% year over year. The company's operating margin also increased to 18.1% in the fourth quarter compared with 14.1% in the prior-year period.
UHS credited improving economic conditions and fewer uninsured patients for the financial boost.
At its behavioral health hospitals, admissions increased 6.4% but revenue per adjusted admission decreased 0.7%, UHS reported without elaborating. Its operating margin edged up to 28% for the quarter compared with the year-ago period's 27.7%.
For 2015, UHS is forecasting another strong year and expects adjusted net income to increase 6% to 13%. Net revenue also is expected to increase 8% to 9%, reaching about $8.7 billion to $8.8 billion for the year.
The chain is the last of the five publicly traded hospital operators to report its earnings results for the fourth quarter of 2014, a year that boosted market caps and brought higher-than-expected benefits from the Affordable Care Act.
UHS also said it closed on its acquisition of 46-bed Orchard Portman House Hospital, based in the United Kingdom. The deal builds on its September purchase of Cygnet Health Care Limited, a behavioral health provider with 17 hospitals in the U.K. Orchard Portman will be renamed Cygnet Hospital-Taunton.
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