Universal Health Services Exceeds Expectations in Q1 2025 with Strong Revenue Growth and Effective Expense Management
Universal Health Services (UHS), a leading healthcare provider, announced impressive financial results for the first quarter of 2025. The company's net income attributable to UHS per diluted share came in at $4.80, with adjusted net income hitting $4.84 after excluding certain items.
One of the key highlights from Q1 was the significant revenue growth in both acute care and behavioral health hospitals. Adjusted admissions to UHS's acute care hospitals increased by 2.4% on a same-facility basis, while same-facility net revenues rose by 5.0%, excluding the impact of its insurance subsidiary. This notable increase in revenue was further boosted by effective expense controls, resulting in a 21% jump in EBITDA after excluding Medicaid supplemental payments.
In the behavioral health segment, UHS saw same-facility net revenues climb by 5.5%, driven primarily by a 5.8% rise in revenue per adjusted day. Adjusted patient days remained relatively flat compared to the prior year quarter, though this growth comparison was impacted by factors such as leap day in 2024 and challenging winter weather conditions.
UHS's cash generated from operating activities experienced a slight decline from $396 million in Q1 2024 to $360 million in Q1 2025, primarily due to delayed Medicaid supplemental payments. However, the company received $82 million of such payments in April related to revenues recorded in Q1.
On the capital expenditure front, UHS spent a substantial $239 million on acquisitions and expansions during the quarter, with this figure representing a significant investment in its growth strategy. Additionally, the company repurchased approximately 1 million shares at a cost of around $181 million, bringing total share repurchases to nearly 33% since January 2019.
As of March 31, 2025, UHS boasted an impressive aggregate available borrowing capacity of $1.02 billion under its $1.3 billion revolving credit facility. This shows the company's commitment to financial stability and access to capital for future growth initiatives.
"We are pleased with our first quarter operating results," stated Marc Miller, President and CEO of UHS, "which on a consolidated basis exceeded our internal expectations." He also highlighted the importance of Medicaid supplemental programs in addressing historic underpayment issues for healthcare providers. The company's strong performance in Q1 2025 positions it well for continued success throughout the year.
