Feb 25 (Reuters) – Hospital operator Universal Health Services on Wednesday missed estimates for quarterly results, hurt by lower-than-expected admissions.
Shares of the company were down 1.3% in after-market trading.
As subsidies under Affordable Care Act or Obamacare plans expire this year, hospitals are set to face declining patient volumes for elective surgeries, preventive visits and diagnostics, alongside rising medical costs from treating more uninsured patients.
Larger peer HCA Healthcare had said the company anticipates a decline of about 30% in utilization from those individuals no longer having coverage compared to when they had healthcare insurance through ACA plans.
For the quarter ended December 31, the King of Prussia, Pennsylvania-based hospital operator reported an adjusted profit of $5.88 per share, lower than analysts’ estimates of $5.90 per share, as per data compiled by LSEG.
Quarterly same-facility adjusted admissions remained unchanged at its acute care hospitals during the quarter, while admissions at behavioral healthcare facilities grew by 1.8%.
Net revenues increased by 9.1% to $4.49 billion during the fourth quarter, compared with analysts’ estimates of $4.50 billion.
The company also forecast 2026 net revenue to be in the range of $18.42 billion to $18.79 billion, above estimates of $18.25 billion.
It forecast 2026 adjusted profit to be between $22.64 and $24.52 per share, compared with estimates of $23.49.
(Reporting by Sneha S K in Bengaluru; Editing by Maju Samuel)
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