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Like Other For-Profit Hospital Companies, UHS Withdraws Guidance

Analysis  |  By Jack O'Brien  
   April 27, 2020

The King of Prussia, Pennsylvania–based hospital management company also acknowledged that it received funding from the CARES Act.

Universal Health Services, Inc., released its Q1 2020 earnings report and withdrew its full-year guidance Monday afternoon.

The King of Prussia, Pennsylvania–based hospital management company, citing the financial uncertainty caused by the coronavirus disease 2019 (COVID-19) pandemic, withdrew its guidance for 2020, suspended its stock repurchase program, and payment of quarterly dividends. 

UHS also acknowledged that it received funding as part of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES) Act but did not specify the amount other than acknowledging that it had no impact on the reported Q1 financials.

Related: Two-Thirds of Health Systems Report CARES Act Payments Cover Less Than a Week of Revenues

"The impact of the COVID-19 pandemic has had a material unfavorable effect on our operations and financial results during the first quarter of 2020," the report stated. "Patient volumes at our acute care hospitals and our behavioral health care facilities were significantly reduced during the second half of March as various COVID-19 policies were implemented by our facilities and federal and state governments. These significant reductions to patient volumes experienced at our facilities have continued into April, 2020."

To ease the financial burdens facing the organization, UHS introduced several productivity and cost control measures as well as a reduced spend rate, particularly on previously planned capital expenditures.

UHS' move came less than a week after HCA Healthcare announced that it would be withdrawing its financial guidance for 2020 and suspending its quarterly dividend.

Related: Citing COVID-19 Impact, HCA Suspends Dividend and Withdraws Guidance

For Q1, UHS reported a net income of $142 million, net revenues of $2.83 billion, and an EBITDA net of NCI of $349.1 million.

Related: UHS Reports $11.3B in Revenues, Up 5.6% During 2019

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

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.

Photo credit: Milan, Italy - November 1, 2017: Universal Health Services logo on the website homepage. - Image / Editorial credit: Casimiro PT / Shutterstock.com


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