UHS to Return $188M in CARES Act Funding Received in Q1

Notably, UHS reported that its net cash provided by operating activities fell from $502 million in Q1 2020 to $72 million in Q1 2021.

Universal Health Services, Inc., (UHS) said Monday afternoon that the company plans on returning $188 million in CARES Act funding that it received during Q1 2021.

In addition to returning the CARES Act funding, UHS stated that it funded the early repayment of $695 million received last year pursuant to the Medicare Accelerated and Advance Payment Program.

The King of Prussia, Pennsylvania–based hospital management company unveiled its Q1 earnings report, highlighted by net income of $209.1 million and net revenues of just more than $3 billion, up 6.5% year-over-year.

Both UHS' acute care services and behavioral healthcare services slumped to start 2021.

Adjusted admissions at acute care hospitals decreased 12.1% year-over-year, while adjusted patient days fell 0.7%.

Meanwhile, adjusted admissions at behavioral healthcare facilities on a same facility basis decreased 4.9% as adjusted patient days dropped 3.8%.

Related: UHS' Net Income, Revenues Increase in Q4 2020

Notably, UHS reported that its net cash provided by operating activities fell from $502 million in Q1 2020 to $72 million in Q1 2021.

The company attributed this to three factors: "an unfavorable change of $509 million resulting primarily from the above-mentioned $695 million of Medicare accelerated payments repaid during the first quarter of 2021, net of the $188 million of CARES Act grants received during the first quarter of 2021; a favorable change of $72 million resulting from an increase in net income plus depreciation and amortization expense and stock-based compensation expense, and; (iii) $7 million of other combined net favorable changes."

By the end of Q1, UHS stated that its cash and cash equivalents totaled $765 million.

Earlier this month, UHS' board of directors approved the resumption of the company's stock repurchase program. Since the program's inception in 2014 through the end of Q1 2021, UHS has repurchased shares at an aggregate cost of $2.14 billion.

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