Segmental revenue breakup

Universal Health Services’ (UHS) net revenues increased by 4.6% from $6.96 billion in 2012 to $7.28 billion in 2013. This increase was due to a combined impact of increase in revenue per admission, length of patient stay, and  total admissions in 2013 as compared to 2012.

Exploring Universal Health Services’ revenue streams

Operating groups

Universal Health Services is organized in three reporting segments: acute care hospital services, behavioral healthcare services, and “other.” The “other” segment comprises centralized services such as information services, purchasing, reimbursement, accounting, taxation, and legal.

The graph above shows that the contribution of acute care hospital services to the company’s net revenues decreased from 51.0% in 2011 to 49.3% in 2013, while that of behavioral health services increased from 49.0% to 50.3% in the same period.

Behavioral health and related services are among the few subsectors in the healthcare industry (XLV) that perform better in periods of economic downturns, as more people are afflicted with stress and mental ailments.

Utilization trends

Despite a decline in total admissions in the acute care services segment by 2.0% from 2012 to 2013, Universal Health Services projected a growth in total revenues on account of rise in admissions in behavioral health services segment by 7.3% in the same period. In 2013, the average length of stay and occupancy rate for licensed beds, or the average percentage of beds occupied in the acute care services segment, was 4.5 days and 56%. In the behavioral health services segment, the averages were 13.3 days and 74%.

The solid performance of the behavioral health services segment has helped the company exceed the utilization levels of its competitors, such as HCA Holdings (HCA), Community Health Systems (CYH), and LifePoint Hospitals (LPNT), which concentrate only on acute care services.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.

172.31.16.229