Global Health Services profits fell about 27% in the fourth quarter, and the system says workforce shortages remain one of its biggest challenges.
King of Prussia, Pennsylvania’s for-profit system on Monday reported net income of $174.82 million for the fourth quarter, compared with $239.12 million a year ago. Revenue rose 5.2% to $3.45 billion.
Operating expenses increased 7.6% to $3.19 billion, driven in part by increases in wages and salaries, supplies, and changes in property values, including the write-down of the Medical Center. Desert Springs Hospital in Las Vegas, which will end impatient care in March.
The system said in a press release that labor shortages remained one of the biggest challenges, creating “material adverse effects” due to high labor costs and demand for contract workers. copper. It said its behavioral health facilities in particular were unable to fill job openings and were, therefore, forced to limit patient numbers.
Universal Health Services operates 28 acute care hospitals, 331 inpatient behavioral health facilities, and 39 outpatient and outpatient care locations across 39 states, plus Washington, DC, Puerto Rico and Great Britain.
For the full year, Universal reported net income of $675.61 million, compared with $991.59 million in 2021. Revenue grew 6% to $13.4 billion and operating expenses rose 9, 9% to $12.4 billion.
In February 2022, the system’s board of directors approved the buyback of the system’s shares up to $1.4 billion. At the end of the year, that group’s $947 million was still available.
Shares in Universal Health Services closed at $146.08 per share on Monday, up 2.4% year-to-date.
Executives will discuss the financial results during an investor call on Tuesday.
