Though it was dinged by lower admissions and intensifying costs amidst the COVID-19 pandemic, Universal Health Services still reported earnings of $252 million in the second quarter, up somewhat year over year despite alarming economic projections for health center operators. Practically $162 million in earnings was from congressional bailout plans, consisting of grants from the Coronavirus Aid, Relief, and Economic Security Act.
The King of Prussia, Pennsylvania-based systems income was down more than 4% year over year to $2.73 billion, still well above Wall Street expectations for its monetary results launched aftermarket Monday, including $218 million in income from federal government stimulus programs.
UHS, which rescinded its full-year earnings projections after an ominous very first quarter, is continuing to withhold revenues guidance due to continuous uncertainty as COVID-19 cases surge again in the U.S.
For its behavioral health facilities, UHS same-facility adjusted admissions reduced by more than 15%, while changed client days reduced more than 10% compared to very same time last year. Leaving out CARES funds, earnings from behavioral healthcare services reduced 8.5%. Consisting of the congressionally appropriated dollars, behavioral health earnings dipped just 3.8%.
The operator reported net earnings of $394 million in the first six months of the year, down practically 17% compared to the very first half of 2019. UHS, which has actually quickly freed up cash and embarked on cost reduction steps to weather the pandemic, had $540 million in money and cash equivalents since June 30, compared to just $61.3 million at the end of 2019.
Rebecca Pifer/Healthcare Dive
Rival HCA Healthcare, which reported earlier this month, saw a corresponding dip in its second quarter volumes, by 20%. Profits for the Nashville-based healthcare facility operator fell more than 12% year over year to $11.1 billion, though HCA still stroked to net earnings of $1.1 billion, assisted mostly by taxpayer bailout dollars from congressional stimulus plans.
By mid-June, both intense and behavioral facilities were averaging 95% of pre-COVID levels, UHS CEO Alan Miller stated on a profits call Tuesday morning. However, in the last 10 days of June and throughout July, admissions started to tick back. Elective procedures, for example, are now running in between 85% to 90% of pre-COVID levels.
The impact of the pandemics monetary results are beginning to surface area as companies 2nd quarter earning season begins in earnest. Ongoing market volatility tanked stocks of openly traded healthcare facilities and health systems previously this year, most of which were currently struggling prior to COVID-19. Indications of a nascent healing might be thwarted by rising COVID-19 cases in the U.S.– almost 4.3 million verified to date.
Leaving out taxpayer bailout dollars, acute care profits dropped 14%.
UHS, which has 26 acute care medical facilities, 328 behavioral health facilities, and 42 outpatient facilities and ambulatory care gain access to points in 37 states, has actually been looking for methods to diversify its offerings as patients progressively seek out outpatient care. It inked a collaboration with home health huge Bayada earlier this month to form a joint venture to provide care in the home for UHS patients.
In the first half of the year, UHS capital from operations ballooned to $1.45 billion, more than double the $673 million in money reported in the very first half of 2019. Of that increase, $477 million was due to sped up Medicare loans ($ 375 million) and bailout grants ($ 102 million).
UHS severe care facilities same-facility adjusted admissions stopped by about a 4th in the quarter, compared to the exact same time last year, while adjusted client days decreased more than 18%. Acute care services brought in 3.5% less profits than the 2nd quarter of 2019, consisting of CARES funds.
For its behavioral health facilities, UHS same-facility adjusted admissions decreased by more than 15%, while adjusted client days reduced more than 10% compared to same time in 2015. Leaving out CARES funds, profits from behavioral health care services decreased 8.5%. Consisting of the congressionally appropriated dollars, behavioral health earnings dipped just 3.8%.
And much of its severe healthcare facilities are situated in states with greatly increasing caseloads, like Florida, Texas and Nevada, which makes complex efforts to prepare ahead for volume. Congress has actually appropriated $175 billion for supplier grants through relief legislation in an effort to assist healthcare facilities and physicians workplaces remain functional throughout the pandemic as volume slides.
By mid-June, both behavioral and intense centers were balancing 95% of pre-COVID levels, UHS CEO Alan Miller said on an incomes call Tuesday morning. Optional treatments, for example, are now running between 85% to 90% of pre-COVID levels.
The product effect of COVID-19 on UHS became obvious in the last weeks of the first quarter, the company stated. Its intense care and behavioral health centers started to see enhancing patient volumes in May and June, as governors reduced optional surgeries and stay-at-home orders were permitted to resume.
Previously this month, UHS paid $122 million to the U.S. Department of Justice to settle a yearslong examination into supposed billing scams at its behavioral health centers.