UHS Net Revenues Fell 4.4% in Q2, Company Received More Than $200M in Stimulus Funding

The earnings report was released just over two weeks after the King of Prussia, Pennsylvania–based hospital management company reached a final agreement on its $127 million settlement with the Department of Justice.

Universal Health Services, Inc., (UHS) saw its net revenues fall more than 4% in Q2 2020, though the company recognized more than $200 million in net revenues related to the various governmental stimulus programs, including the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act.

According to the company's latest earnings report released Monday afternoon, posted a quarterly net income of $251.9 million, a $13 million increase year-over-year, but also recorded net revenues of $2.7 billion, down 4.4% over the same period.

Additionally, the King of Prussia, Pennsylvania–based hospital management company reported a net income of $161.9 million at the end of Q2. 

The latest earnings report displayed the continued financial pain suffered by UHS and other for-profit hospital companies during the ongoing coronavirus disease 2019 (COVID-19) pandemic.

In its Q1 earnings report released in April, UHS withdrew its guidance for 2020, suspended its stock repurchase program, and payment of quarterly dividends. 

Related: Like Other For-Profit Hospital Companies, UHS Withdraws Guidance

"The impact of the COVID-19 pandemic, which began during the second half of March, 2020, has had a material unfavorable effect on our operations and financial results since that time" the report read. "Patient volumes at both our acute care and behavioral health care facilities were most significantly reduced in April. Our acute care and behavioral health facilities began experiencing gradual and continued improvement in patient volumes in May and June as various states eased stay-at-home restrictions and acute care hospitals were permitted to resume elective surgeries and procedures.  However, many of our acute care and behavioral health facilities are located in states that began experiencing significant increases in COVID-19 infections in June and continuing into July."

The earnings report was released just over two weeks after the King of Prussia, Pennsylvania–based hospital management company reached a final agreement on its $127 million settlement with the Department of Justice.

Related: Universal Health Services Finalizes $127M Settlement in Long-Running Fraud Investigation

In early June, UHS announced voluntary salary reductions by senior executives, including CEO Alan B. Miller, to the UHS Foundation. 

Related: Universal Health Services to Donate Executive Pay to Employee Financial Assistance Program

For complete financial information, review UHS' filing with the Securities and Exchange Commission.