Universal Health Services is predicting a more profitable 2015 than it had originally expected, after second-quarter results continued to show strong demand for healthcare services.
The King of Prussia, Pa.-based chain reported higher admissions in both its acute-care and behavioral-health hospitals. Each acute-care admission also brought in more revenue.
UHS is the second chain to paint a bright picture as the second-quarter earnings season kicks off for hospital operating companies. HCA's preview of its second quarter results also highlighted higher volume, as well as an 8.8% increase in net income.
UHS' same-hospital admissions, adjusted for outpatient activity, increased 5.7% year over year, while net revenue per adjusted admissions increased 3.2%. Operating margins in its acute-care business increased to 19.8% in the second quarter, up from 18.7% during the same period last year.
Charity care and uninsured discounts edged down 1.1%, while UHS' provision for bad debt remained flat.
Adjusted admissions also increased 4.2% in its behavioral-health hospitals, but revenue per adjusted admissions was up just 0.5%. UHS' operating margin in the division was 28.5% in the quarter, compared with 28.4% in the prior-year period.
With its strong performance in the past two quarters, UHS said it expects profits to be approximately 9% to 10% higher than its forecast earlier this year. It is now forecasting earnings per share in the range of $6.75 to $7.15, up from $6.15 to $6.55 per share.
In total, UHS reported second-quarter net income of $182.2 million on $2.3 billion in revenue, compared with $151.7 million in net income on $2.1 billion in revenue for the same period a year ago.
The chain will hold a call for analysts and investors Friday.