Universal Health Services’ profit spiked dramatically during the third quarter of 2020, the for-profit hospital and behavioral health chain announced Thursday.
Net income attributable to UHS’ shareholders was $241.3 million in the quarter ended Sept. 30, a nearly 150% spike from the prior-year period, when it was $97.2 million. The King of Prussia, Pa.-based company generated $2.9 billion in net revenue in the quarter, up 3.2% from $2.8 billion in 2019 period.
UHS said its net income benefited from having recognized about $213 million in grants under the Coronavirus Aid, Relief, and Economic Security Act in the nine months ending Sept. 30. Of that money, $161 million went to its acute-care hospitals and $52 million went to its behavioral health division, which recently settled a sweeping federal lawsuit over allegedly admitting patients unnecessarily and holding them for as long as their insurance paid out.
UHS said its third quarter results reflect a reversal of about $5 million in previously recognized grants.
Like its peers, UHS’ facilities have struggled with lower volumes during the COVID-19 pandemic. Adjusted admissions to its acute-care hospitals declined 17.3% on a same-store basis year-over-year. Like HCA Healthcare and Tenet Healthcare Corp., UHS’ net revenue per adjusted admission saw a dramatic year-over-year spike: 26.2%. Other companies have said that’s because the patients staying in hospitals during the pandemic tend to be sicker and fewer Medicare patients are seeking care.
The company’s earnings before interest, taxes, depreciation and amortization also got a boost in the quarter, jumping 58% year-over-year to $471 million in the quarter ended Sept. 30.