The King of Prussia, Pennsylvania-based company did see its net income and revenues rise.
Universal Health Services, Inc. (UHS) agreed to settle an investigation by the Department of Justice's (DOJ) Civil Division for $127 million, according to the company's latest earnings release Thursday evening.
Though the King of Prussia, Pennsylvania-based hospital management company saw its net income rise by $12 million to $238.3 million, while its net revenues rose 6.5% to $2.86 billion, focus on UHS' earnings centered primarily on the DOJ settlement.
The government had been looking into UHS' behavioral health facilities, though the company said that previously disclosed investigations have been closed.
"We are awaiting the initial draft of a potential corporate integrity agreement with the Office of Inspector General for the United States Department of Health and Human Services ("OIG") which we expect will be part of the overall settlement of this matter," the company stated in the earnings report.
Just as in Q2, the company's EBITDA increased, going from $444.7 million in Q2 2018 to $471.5 million, while net cash provided by operating activities actually increased by $17 million year-over-year, totaling $624 million.
As part of UHS' reported net income, the company included an unrealized gain of $6.9 million, resulting from an increase in "the market value of shares of certain marketable securities held for investment" that were listed for sale.
UHS also announced the authorization of a $1 billion increase to the company's stock repurchase program, boosting the total to $2.7 billion. During Q2, UHS repurchased 2.72 million shares for $339.2 million.
ADDITIONAL UHS Q2 EARNINGS REPORT HIGHLIGHTS:
- UHS reported capital expenditures just shy of $154 million, down from $181.2 million this time last year.
- The company also reported an unfavorable after-tax impact of $8.9 million in Q2.
- Adjusted admissions for acute care services increased 5% year-over-year and adjusted patient days increased 5.2%.
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