Thursday, April 28, 2005 | 11:09 a.m.
Universal Health Services Inc. -- owner of four Las Vegas hospitals -- announced Wednesday afternoon that its profit rose 34 percent in the first quarter.
The King of Prussia, Pa.-based company -- operator of Desert Springs, Valley, Summerlin and Spring Valley hospitals in Las Vegas and 40 other hospitals nationally -- reported its net income rose to $61.4 million, 99 cents per share, in the first quarter from $46.2 million, or 74 cents per share, in the year-ago quarter.
The net income included several one-time financial boosts including a $3.8 million after-tax gain for the sale of two acute-care hospitals in Puerto Rico, which were sold March 31.
Net income from continuing operations for the quarter rose to $56.4 million, or 91 cents per share, from $45.6 million, 73 cents per share, in the year-ago period.
The acute-care and behavioral-health hospital operator beat analysts' estimates, which averaged 69 cents per share for 20 analysts surveyed by Thomson Financial.
Shares of Universal's stock rose $2.24, more than 4 percent, to $55.47 per share in midmorning trading on the New York Stock Exchange.
Revenue rose 11 percent to $1.09 billion in the first quarter, compared with $982.6 million in the year-ago quarter.
Universal increased its 2005 guidance from continuing operations to between $3.10 per share and $3.20 per share.
Patient admissions rose 2.3 percent to 67,015 admissions in the first quarter from 64,550 admissions in the year-ago quarter and revenue per adjusted admission rose 6.2 percent on a year-over-year basis.
In a conference call with investors today, Universal Chief Financial Officer Steve Filton touted Las Vegas as one of the company's strong markets, but specific admissions and revenue numbers were not released.
He attributed the increase to a busier flu season in markets such as Las Vegas and increased occupancy with the opening of Spring Valley Hospital in October 2003 and additional beds at Summerlin Hospital last summer.
"Clearly in some markets like Las Vegas there seemed to be much more of a flu season," Filton said.
Patient admissions have also improved in Florida and Texas, which is a highly competitive area for the company.
Patient-bed days -- the number of days a patient occupies a bed -- increased to 311,598 bed-days in the first quarter from 303,610 bed-days in the year-ago period.
Universal decreased its provision for bad debt -- patient bills that are written off because the patients did not pay -- to $82.5 million in the first quarter from $83.6 million in the year-ago period.
The number of uninsured patients was relatively flat on a year-over-year basis, Filton said.
In Las Vegas, Universal also owns two outpatient surgery centers, Spring Mountain Treatment Center and land in the northwest to build a fifth acute-care hospital, Centennial Hills.
Filton told investors that design work continues on Centennial Hills, which will mirror community-hospital models used by Summerlin and Spring Valley.
The hospital would likely open in the next 18 to 24 months with 150 beds and room to add an additional 150 beds, which is similar to Summerlin and Spring Valley hospitals' plans, Filton said.
The hospital will be constructed on 40 acres at the intersection of the Las Vegas Beltway and U.S. 95 in northwest Las Vegas.
"We're generally bullish about prospects in Las Vegas," Filton said, adding that there is still a shortage of hospitals beds locally since the population continues to grow.
When Spring Valley opened in 2003 it took some of the patient admissions that would normally go to its sister hospitals and then patient volumes shifted again when HCA Inc.-owned Southern Hills Hospital opened in March 2004, but the market disruptions are temporary, Filton said.
He said growth prospects would remain strong in Las Vegas as the market continues to grow.
In Las Vegas, Universal is spending millions of dollars to expand and upgrade its four hospitals.
For example, Desert Springs added a new catheterization lab, which enables doctors to treat cardiac and other vascular conditions at one location.
In the coming weeks, Desert Springs will begin construction of a cardiac progressive care unit, which will be part of the hospital's Cardiac Care Institute and is expected to open in mid-summer. The cardiac unit will include a 16-bed intermediate care unit, an 18-bed general cardiac care unit and an eight-bed chest pain center.
In January, Summerlin Hospital added 17 rehabilitation beds -- bringing the total to 46 rehab beds -- and a larger rehab area. This summer the hospital plans to add a computed-tomography scanner and a catheterization lab when it adds open-heart services.
Work continues to update Valley Hospital, which includes upgrades to the surgery department that is likely to start in the coming months, Filton said.
At Spring Valley, spinal surgery was added in the first quarter and construction continues on a second catheterization lab, which is scheduled to open this summer.
Desert Springs, Valley, Summerlin and Spring Valley hospitals have invested in community outreach through educational events and sponsorship of community events such as the Juvenile Diabetes Research Foundation's spring gala.
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