Universal Health Services (UHS) Shines Bright: A Financial Success Story of 2023 and a Promising Forecast for 2024

Universal Health Services

KING OF PRUSSIA, PA — In a recent disclosure, Universal Health Services, Inc. (NYSE: UHS) reported a remarkable performance in the fourth quarter of 2023 and the full year, sparking enthusiasm among industry insiders. This impressive financial performance is derived from the company’s net income attributable to UHS which peaked at $216.4 million (or $3.16 per diluted share) in the fourth quarter of 2023, up from $174.8 million (or $2.43 per diluted share) a year prior.

The company’s net revenues saw an upturn too, with a 7.4% increase to $3.704 billion in Q4 2023 compared to $3.447 billion in Q4 2022. Moreover, the adjusted net income attributable to UHS for Q4 2023 was reported at $214.9 million (or $3.13 per diluted share), a slight dip from $217.1 million (or $3.02 per diluted share) in Q4 2022.

These figures reflect several various influences. For instance, in Q4 2023, UHS reported incremental reimbursements of approximately $17.8 million (or $0.20 per diluted share) linked to the newly approved Mississippi Hospital Access Program, which spanned from July to December 2023. Comparatively, in Q4 2022, the company had a favorable after-tax impact of approximately $19.6 million (or $0.27 per diluted share) after receiving $26.0 million of commercial insurance proceeds.

What’s more, the company’s earnings before interest, taxes, depreciation & amortization (EBITDA) net of net income attributable to noncontrolling interests, was significantly heightened at $476.9 million in Q4 2023, as compared to $419.0 million in Q4 2022.

Furthermore, the full-year financial statements for 2023 also revealed robust results. UHS reported a net income of $717.8 million, or $10.23 per diluted share, during 2023, an increase from $675.6 million, or $9.14 per diluted share, during 2022. Meanwhile, net revenues rose by 6.6% to $14.282 billion in 2023, as compared to $13.399 billion in 2022.

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As for the company’s acute care services, in the fourth quarter of 2023, adjusted admissions increased by 5.6% and adjusted patient days increased by 4.3%. On a same-facility basis, net revenues generated from these services increased by 9.7% during Q4 2023 compared to Q4 2022. Meanwhile, during the full year of 2023, adjusted admissions increased by 7.6% and adjusted patient days increased by 4.7%.

In the behavioral health sector, adjusted admissions and patient days increased modestly in the fourth quarter of 2023 by 1.4% and 1.1% respectively. However, net revenues climbed by 7.2% in Q4 2023 compared to the same period in 2022. This upward trend carried on through the full year of 2023, with net revenues growing by 8.0%.

From an operational perspective, the net cash provided by operating activities for the full year of 2023 stood at $1.268 billion, a substantial rise from $996 million in 2022. In terms of liquidity, as of December 31, 2023, UHS had $701 million available from its $1.2 billion revolving credit facility.

UHS also executed its stock repurchase program during the fourth quarter of 2023, repurchasing 1.13 million shares at an approximate cost of $157.3 million. Throughout 2023, the company repurchased around 3.86 million shares at an estimated cost of $524.5 million.

In addition, Universal Health Services has also forecasted a prosperous outlook for 2024, predicting a growth in consolidated net revenues, net income attributable to UHS per diluted share, and capital expenditures. Overall, industry watchers should keep a keen eye on UHS as it continues to prosper in the tumultuous healthcare sector.

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