Q2 2024 Universal Health Services Inc Earnings Call Transcript
Key Points
- Universal Health Services Inc (UHS) reported a net income attributable to UHS per diluted share of $4.26 for Q2 2024, with an adjusted net income of $4.31 per diluted share.
- Revenue growth was a solid 6.6% year-over-year, despite a moderation in demand for acute hospital services.
- Same facility EBITDA at acute care hospitals increased by 37% year-over-year, or 20% excluding incremental Medicaid supplemental payments in Nevada.
- Behavioral health hospitals saw an 11% increase in same facility revenues, driven by a 9.3% increase in revenue per adjusted patient day.
- Cash generated from operating activities increased by $422 million to $1.1 billion in the first six months of 2024, compared to $654 million in the same period in 2023.
- Acute hospital surgical growth flattened out, indicating a potential slowdown in high-margin procedures.
- Behavioral health volumes were impacted by Medicaid disenrollments, particularly in Southern states, affecting patient day growth.
- Labor challenges persist, with specific markets facing difficulties in filling positions, which can limit capacity and patient admissions.
- The company did not include potential benefits from new supplemental programs in Tennessee and Washington, DC, in their revised guidance, indicating uncertainty in future revenue from these sources.
- Turnover rates in behavioral health remain high, creating inefficiencies and challenges in maintaining a stable workforce.
Good day. And thank you for standing by. Welcome to the Q2 2024 Universal Health Services Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Steve Filton, Executive Vice President and CFO. Please go ahead.
Good morning. Marc Miller is also joining us this morning. We welcome you to this review of Universal Health Services results for the second quarter ended June 30, 2024.
During the conference call, we'll be using words such as believes, expects, anticipates, estimates, and similar words that represent forecasts, projections, and forward-looking statements. For anyone not familiar with the risks and uncertainties inherent in these forward-looking statements, I recommend a careful reading of the section on Risk Factors and forward-looking statements and Risk Factors in our Form 10-K for the year ended December 31, 2023, and
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