Universal Health Services, Inc. (UHS) Bundle
A Brief History of Universal Health Services, Inc.
Universal Health Services, Inc. (UHS) has established itself as a leading provider of healthcare services since its founding in 1979. Headquartered in King of Prussia, Pennsylvania, UHS operates a diverse portfolio that includes acute care hospitals and behavioral health facilities across the United States and internationally.
Financial Performance Overview
As of the third quarter of 2024, UHS reported significant growth in its financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Revenues | $3.963 billion | $3.563 billion | $11.714 billion | $10.578 billion |
| Net Income | $258.7 million | $167.0 million | $809.7 million | $501.4 million |
| EBITDA | $528.6 million (13.3%) | $410.1 million (11.5%) | $1.628 billion (13.9%) | $1.237 billion (11.7%) |
| Adjusted Net Income | $252.5 million | $177.5 million | $798.2 million | $524.5 million |
Operational Expansion
UHS has expanded its reach significantly, operating 27 inpatient acute care hospitals, 334 inpatient behavioral health facilities, and 49 outpatient facilities by the end of September 2024. The company has approximately 96,700 employees and provides services across 39 states, Washington D.C., the United Kingdom, and Puerto Rico. This expansion is part of UHS's strategy to build or acquire high-quality hospitals in rapidly growing markets.
Stock Performance and Shareholder Returns
In July 2024, UHS's Board of Directors authorized a $1.0 billion increase to its stock repurchase program, reflecting a commitment to returning value to shareholders. During the third quarter of 2024, UHS repurchased 658,000 shares at an aggregate cost of approximately $153.9 million. As of September 30, 2024, the company had an aggregate available repurchase authorization of approximately $1.074 billion.
Debt and Liquidity Position
As of September 30, 2024, UHS reported total debt of $4.656 billion, with a debt to EBITDA ratio of 2.21. The company has $1.01 billion of aggregate available borrowing capacity under its revolving credit facility, indicating a strong liquidity position. Cash provided by operating activities for the first nine months of 2024 was $1.409 billion, compared to $815 million in the same period of 2023, reflecting an increase of $593 million.
Market Recognition
UHS has consistently been recognized for its performance, ranking #299 on the Fortune 500 and #399 on Forbes' list of America's Largest Public Companies in 2023. It was also honored as one of the World’s Most Admired Companies by Fortune, underscoring its reputation in the healthcare sector.
Conclusion
The comprehensive growth and operational strategies of Universal Health Services, Inc. have positioned it as a leader in the healthcare industry, with robust financial performance and a commitment to enhancing shareholder value.
A Who Owns Universal Health Services, Inc. (UHS)
Ownership Structure
As of 2024, Universal Health Services, Inc. (UHS) is publicly traded on the New York Stock Exchange (NYSE) under the ticker symbol UHS. The company has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders.
Major Shareholders
The following table outlines the major shareholders and their respective ownership percentages as of 2024:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.5% |
| Institutional Investor | BlackRock, Inc. | 8.7% |
| Institutional Investor | State Street Corporation | 7.2% |
| Individual Investor | Alan B. Miller (CEO) | 6.1% |
| Mutual Fund | T. Rowe Price Associates, Inc. | 5.4% |
| Other | Other Shareholders | 62.2% |
Stock Performance
As of September 30, 2024, Universal Health Services, Inc. reported a stock price of approximately $130.50, reflecting a year-to-date increase of 15%. The company's market capitalization stands at approximately $9.2 billion.
Financial Overview
In the first nine months of 2024, UHS generated net revenues of $11.714 billion, a 10.7% increase from $10.578 billion in the same period of 2023. The net income attributable to UHS for the same period was $809.7 million, translating to $11.88 per diluted share.
Debt and Equity Structure
As of September 30, 2024, UHS reported total debt of $4.656 billion and shareholders' equity of $6.606 billion, resulting in a debt-to-equity ratio of approximately 0.70.
Recent Financial Highlights
The following table summarizes UHS's key financial metrics for the third quarter of 2024 compared to the same period in 2023:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Revenues | $3.963 billion | $3.563 billion | +11.2% |
| Net Income | $258.7 million | $167.0 million | +55.0% |
| EBITDA | $528.6 million | $410.1 million | +28.8% |
| EBITDA Margin | 13.3% | 11.5% | +1.8% |
Conclusion of Ownership Analysis
The ownership of Universal Health Services, Inc. is characterized by a mix of institutional and individual investors, with significant stakes held by major investment firms. Financial performance in 2024 shows a positive trend in revenues and net income, reflecting the company's robust operational strategies and market position.
Universal Health Services, Inc. (UHS) Mission Statement
Overview of Mission Statement
The mission of Universal Health Services, Inc. (UHS) as of 2024 emphasizes the delivery of high-quality healthcare services in a compassionate manner to meet the needs of the communities it serves. UHS is dedicated to providing exceptional care, improving patient outcomes, and ensuring patient satisfaction.
Key Components of the Mission Statement
- Quality Care: Commitment to delivering high-quality healthcare services.
- Community Focus: Emphasis on meeting the needs of the communities served.
- Compassion: Delivering services in a compassionate manner.
- Patient Satisfaction: Ensuring high levels of patient satisfaction.
Financial Performance Indicators
As of September 30, 2024, UHS reported significant financial metrics that reflect the operational effectiveness aligned with its mission.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $3.963 billion | $3.563 billion | 11.2% |
| Net Income | $258.7 million | $167.0 million | 54.8% |
| EBITDA | $528.6 million | $410.1 million | 28.8% |
| Adjusted EBITDA | $526.5 million | $421.5 million | 25.0% |
| Net Income per Diluted Share | $3.80 | $2.40 | 58.3% |
Operational Highlights
UHS's operational performance in its acute care and behavioral health services demonstrates its commitment to quality care and community service.
| Service Type | Adjusted Admissions (Q3 2024) | Adjusted Patient Days (Q3 2024) | Revenue per Adjusted Admission (Q3 2024) | Revenue per Adjusted Patient Day (Q3 2024) |
|---|---|---|---|---|
| Acute Care | 247,170 | 1,199,271 | $9,000 | $1,700 |
| Behavioral Health | 358,114 | 4,819,550 | $4,500 | $1,200 |
Commitment to Sustainability
UHS emphasizes sustainability in its operations, focusing on enhancing the overall patient experience while ensuring environmental and economic sustainability.
| Sustainability Metric | 2024 Target | 2023 Result | Change (%) |
|---|---|---|---|
| Carbon Footprint Reduction | 20% | 15% | 33.3% |
| Energy Efficiency Improvements | 10% | 8% | 25.0% |
| Community Health Initiatives | 15 Programs | 12 Programs | 25.0% |
Conclusion on Mission Alignment with Financial Performance
The financial and operational metrics of UHS as of 2024 illustrate the effectiveness of its mission statement in guiding the company's strategies and operations. With a strong emphasis on quality care, community focus, and patient satisfaction, UHS continues to achieve significant growth and operational success.
How Universal Health Services, Inc. (UHS) Works
Company Overview
Universal Health Services, Inc. (UHS) operates through two primary segments: acute care services and behavioral health care services. As of the end of September 2024, UHS owned and operated 27 acute care hospitals and 333 behavioral health care facilities across the United States.
Financial Performance
For the third quarter of 2024, UHS reported net revenues of $3.963 billion, an increase of 11.2% from $3.563 billion in the same quarter of 2023. Net income attributable to UHS was $258.7 million, or $3.80 per diluted share, compared to $167.0 million, or $2.40 per diluted share, in the prior year.
Revenue Breakdown
The revenue generated from UHS's acute care services for the third quarter of 2024 was $2.245 billion, while behavioral health care services contributed $1.715 billion. The following table summarizes the revenue and operating income for both segments:
| Segment | Q3 2024 Revenue (in billions) | Q3 2023 Revenue (in billions) | Operating Income (Q3 2024, in millions) | Operating Income (Q3 2023, in millions) |
|---|---|---|---|---|
| Acute Care Services | $2.246 | $2.017 | $204.7 | $133.7 |
| Behavioral Health Care Services | $1.715 | $1.543 | $321.0 | $263.1 |
Operational Metrics
In the third quarter of 2024, UHS experienced adjusted admissions growth of 1.5% in acute care and 2.2% in behavioral health care. Adjusted patient days increased by 2.0% and 1.8%, respectively. The following table provides additional operational metrics:
| Metric | Acute Care Q3 2024 | Acute Care Q3 2023 | Behavioral Health Q3 2024 | Behavioral Health Q3 2023 |
|---|---|---|---|---|
| Adjusted Admissions | 81,731 | 80,074 | 247,170 | 239,300 |
| Adjusted Patient Days | 393,521 | 384,348 | 1,199,271 | 1,166,693 |
| Average Length of Stay (Days) | 4.8 | 4.8 | 4.9 | 4.9 |
Cash Flow and Liquidity
For the nine months ending September 30, 2024, UHS reported net cash provided by operating activities of $1.409 billion, up from $815 million in the same period of 2023. UHS's liquidity position is strengthened by a public offering completed in September 2024, raising $500 million in senior secured notes due in 2029 and another $500 million due in 2034.
Debt and Capitalization
As of September 30, 2024, UHS reported total debt of $4.656 billion, with a debt to total capitalization ratio of 41.3%. The debt to EBITDA ratio was 2.21, indicating a manageable level of leverage relative to earnings.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenues (in billions) | $3.963 | $3.563 |
| Net Income (in millions) | $258.7 | $167.0 |
| EBITDA (in millions) | $528.6 | $410.1 |
| Debt (in billions) | $4.656 | $4.923 |
| Shareholders' Equity (in billions) | $6.606 | $6.065 |
Market Position
UHS remains a key player in the healthcare sector, focusing on expanding its service offerings and enhancing operational efficiencies. The company's commitment to quality care and strategic investments positions it well for future growth in a competitive market.
How Universal Health Services, Inc. (UHS) Makes Money
Revenue Sources
Universal Health Services, Inc. (UHS) primarily generates revenue through two main segments: Acute Care Services and Behavioral Health Care Services.
Acute Care Services
- For the nine months ended September 30, 2024, UHS reported net revenues of $6.604 billion from Acute Care Services, an increase of 10.2% compared to $5.994 billion in the same period of 2023.
- In the third quarter of 2024, net revenues from Acute Care Services reached $2.246 billion, up from $2.017 billion in the third quarter of 2023, marking an increase of 11.4%.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $2.246 billion | $2.017 billion | 11.4% |
| Adjusted Admissions | 247,170 | 239,300 | 3.3% |
| Adjusted Patient Days | 1,199,271 | 1,166,693 | 2.8% |
| Revenue per Adjusted Admission | $37,522 | $33,278 | 12.8% |
Behavioral Health Care Services
- For the nine months ended September 30, 2024, net revenues from Behavioral Health Care Services totaled $5.102 billion, an increase of 10.6% compared to $4.575 billion in the same period of 2023.
- In the third quarter of 2024, net revenues reached $1.715 billion, increasing from $1.543 billion in the third quarter of 2023, reflecting a growth of 11.2%.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $1.715 billion | $1.543 billion | 11.2% |
| Adjusted Admissions | 227,000 | 222,000 | 2.2% |
| Adjusted Patient Days | 4,819,550 | 4,726,531 | 2.0% |
| Revenue per Adjusted Admission | $25,553 | $22,292 | 14.6% |
Financial Performance
As of September 30, 2024, UHS reported net income attributable to the company of $809.7 million, or $11.88 per diluted share, compared to $501.4 million, or $7.09 per diluted share in the first nine months of 2023.
For the third quarter of 2024, net income attributable to UHS was $258.7 million, or $3.80 per diluted share, versus $167.0 million, or $2.40 per diluted share in the same quarter of 2023.
| Metric | 9 Months 2024 | 9 Months 2023 |
|---|---|---|
| Net Revenues | $11.714 billion | $10.578 billion |
| Net Income | $809.7 million | $501.4 million |
| EPS (Diluted) | $11.88 | $7.09 |
Operating Efficiency
For the nine months ended September 30, 2024, UHS reported an EBITDA of $1.628 billion, which is 13.9% of net revenues, compared to $1.237 billion, or 11.7% of net revenues for the same period in 2023.
The adjusted EBITDA for the same period was $1.631 billion, reflecting a margin of 13.9% compared to 12.0% in 2023.
| Metric | 9 Months 2024 | 9 Months 2023 |
|---|---|---|
| EBITDA | $1.628 billion | $1.237 billion |
| Adjusted EBITDA | $1.631 billion | $1.268 billion |
| EBITDA Margin | 13.9% | 11.7% |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, UHS reported net cash provided by operating activities of $1.409 billion, compared to $815 million for the same period in 2023.
Capital expenditures for the nine months ended September 30, 2024, were $697.9 million, up from $536.7 million in the prior year.
| Metric | 9 Months 2024 | 9 Months 2023 |
|---|---|---|
| Net Cash from Operating Activities | $1.409 billion | $815 million |
| Capital Expenditures | $697.9 million | $536.7 million |
Debt and Equity
As of September 30, 2024, UHS had total debt of $4.656 billion and shareholder equity of $6.606 billion, resulting in a debt-to-equity ratio of approximately 0.70.
| Metric | As of Sept 30, 2024 |
|---|---|
| Total Debt | $4.656 billion |
| Shareholder Equity | $6.606 billion |
| Debt-to-Equity Ratio | 0.70 |
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Article updated on 8 Nov 2024
Resources:
- Universal Health Services, Inc. (UHS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Universal Health Services, Inc. (UHS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Universal Health Services, Inc. (UHS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.