Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | UHS | |
Entity Registrant Name | UNIVERSAL HEALTH SERVICES INC | |
Entity Central Index Key | 352915 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,595,708 | |
Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 91,794,080 | |
Class C | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 664,000 | |
Class D | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 27,935 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net revenues before provision for doubtful accounts | $2,380,101 | $2,146,498 |
Less: Provision for doubtful accounts | 154,748 | 208,184 |
Net revenues | 2,225,353 | 1,938,314 |
Operating charges: | ||
Salaries, wages and benefits | 1,031,703 | 935,365 |
Other operating expenses | 505,966 | 399,908 |
Supplies expense | 238,741 | 215,798 |
Depreciation and amortization | 98,998 | 93,359 |
Lease and rental expense | 22,891 | 23,338 |
Electronic health records incentive income | 0 | -430 |
Operating Expenses, Total | 1,898,299 | 1,667,338 |
Income from operations | 327,054 | 270,976 |
Interest expense, net | 30,037 | 35,193 |
Income before income taxes | 297,017 | 235,783 |
Provision for income taxes | 102,694 | 83,931 |
Net income | 194,323 | 151,852 |
Less: Income attributable to noncontrolling interests | 20,024 | 13,774 |
Net income attributable to UHS | $174,299 | $138,078 |
Basic earnings per share attributable to UHS | $1.76 | $1.40 |
Diluted earnings per share attributable to UHS | $1.73 | $1.38 |
Weighted average number of common shares - basic | 98,910 | 98,572 |
Add: Other share equivalents | 1,737 | 1,585 |
Weighted average number of common shares and equivalents - diluted | 100,647 | 100,157 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $194,323 | $151,852 |
Other comprehensive income (loss): | ||
Unrealized derivative gains on cash flow hedges | 4,132 | 3,745 |
Amortization of terminated hedge | -84 | -84 |
Foreign currency translation adjustment | -418 | 0 |
Other comprehensive income before tax | 3,630 | 3,661 |
Income tax expense related to items of other comprehensive income | 1,497 | 1,354 |
Total other comprehensive income, net of tax | 2,133 | 2,307 |
Comprehensive income | 196,456 | 154,159 |
Less: Comprehensive income attributable to noncontrolling interests | 20,024 | 13,774 |
Comprehensive income attributable to UHS | $176,432 | $140,385 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $35,078 | $32,069 | $16,261 | $17,238 |
Accounts receivable, net | 1,383,964 | 1,282,735 | ||
Supplies | 108,269 | 108,115 | ||
Deferred income taxes | 109,402 | 114,565 | ||
Other current assets | 80,524 | 77,654 | ||
Total current assets | 1,717,237 | 1,615,138 | ||
Property and equipment | 6,301,410 | 6,212,030 | ||
Less: accumulated depreciation | -2,610,630 | -2,532,341 | ||
Property, plant and equipment, net, Total | 3,690,780 | 3,679,689 | ||
Other assets: | ||||
Goodwill | 3,297,436 | 3,291,213 | ||
Deferred charges | 38,761 | 40,319 | ||
Other | 340,141 | 348,084 | ||
Total assets | 9,084,355 | 8,974,443 | 8,431,385 | |
Current liabilities: | ||||
Current maturities of long-term debt | 89,023 | 68,319 | ||
Accounts payable and accrued liabilities | 1,101,143 | 1,113,062 | ||
Federal and state taxes | 65,106 | 1,446 | ||
Total current liabilities | 1,255,272 | 1,182,827 | ||
Other noncurrent liabilities | 277,617 | 268,555 | ||
Long-term debt | 3,051,571 | 3,210,215 | ||
Deferred income taxes | 280,662 | 282,214 | ||
Redeemable noncontrolling interests | 254,843 | 239,552 | ||
Equity: | ||||
UHS common stockholders' equity | 3,906,963 | 3,735,946 | ||
Noncontrolling interest | 57,427 | 55,134 | ||
Total equity | 3,964,390 | 3,791,080 | ||
Liabilities and Equity, Total | $9,084,355 | $8,974,443 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows from Operating Activities: | ||
Net income | $194,323 | $151,852 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation & amortization | 98,998 | 93,359 |
Stock-based compensation expense | 10,829 | 7,152 |
Gains on sales of assets and businesses, net of losses | 0 | -10,134 |
Changes in assets & liabilities, net of effects from acquisitions and dispositions: | ||
Accounts receivable | -96,972 | -95,633 |
Accrued interest | 1,117 | 11,063 |
Accrued and deferred income taxes | 79,050 | 65,321 |
Other working capital accounts | -29,829 | -34,999 |
Other assets and deferred charges | -234 | 9,982 |
Other | 17,807 | -3,833 |
Accrued insurance expense, net of commercial premiums paid | 22,748 | 21,302 |
Payments made in settlement of self-insurance claims | -26,562 | -20,793 |
Net cash provided by operating activities | 271,275 | 194,639 |
Cash Flows from Investing Activities: | ||
Property and equipment additions, net of disposals | -89,276 | -92,387 |
Proceeds received from sale of assets and businesses | 0 | 11,450 |
Acquisition of property and businesses | -34,500 | -3,301 |
Costs incurred for purchase and implementation of electronic health records application | 0 | -6,504 |
Net cash provided by (used in) investing activities | -123,776 | -90,742 |
Cash Flows from Financing Activities: | ||
Reduction of long-term debt | -158,871 | -109,054 |
Additional borrowings | 20,800 | 11,900 |
Repurchase of common shares | -28,767 | -13,993 |
Dividends paid | -9,899 | -4,933 |
Issuance of common stock | 1,768 | 1,445 |
Excess income tax benefits related to stock-based compensation | 20,807 | 11,750 |
Profit distributions to noncontrolling interests | -2,413 | -1,989 |
Proceeds received from sale/leaseback of real property | 12,551 | 0 |
Net cash (used in) provided by financing activities | -144,024 | -104,874 |
Effect of exchange rate changes on cash and cash equivalents | -466 | 0 |
Increase (decrease) in cash and cash equivalents | 3,009 | -977 |
Cash and cash equivalents, beginning of period | 32,069 | 17,238 |
Cash and cash equivalents, end of period | 35,078 | 16,261 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 27,158 | 18,893 |
Income taxes paid, net of refunds | 2,876 | 6,764 |
Noncash purchases of property and equipment | $33,082 | $49,533 |
General
General | 3 Months Ended |
Mar. 31, 2015 | |
General | (1) General |
This Quarterly Report on Form 10-Q is for the quarterly period ended March 31, 2015. In this Quarterly Report, “we,” “us,” “our” “UHS” and the “Company” refer to Universal Health Services, Inc. and its subsidiaries. | |
The condensed consolidated financial statements include the accounts of our majority-owned subsidiaries and partnerships and limited liability companies controlled by us, or our subsidiaries, as managing general partner or managing member. The condensed consolidated financial statements included herein have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and reflect all adjustments (consisting only of normal recurring adjustments) which, in our opinion, are necessary to fairly state results for the interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although we believe that the accompanying disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements, significant accounting policies and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014. | |
Provider Taxes: We incur health-care related taxes (“Provider Taxes”) imposed by states in the form of a licensing fee, assessment or other mandatory payment which are related to: (i) healthcare items or services; (ii) the provision of, or the authority to provide, the health care items or services, or; (iii) the payment for the health care items or services. Such Provider Taxes are subject to various federal regulations that limit the scope and amount of the taxes that can be levied by states in order to secure federal matching funds as part of their respective state Medicaid programs. We derive a related Medicaid reimbursement benefit from assessed Provider Taxes in the form of Medicaid claims based payment increases and/or lump sum Medicaid supplemental payments. | |
Under these programs, including the impact of Uncompensated Care and Upper Payment Limit programs, and the Texas Delivery System Reform Incentive program, we earned revenues (before Provider Taxes) of approximately $66 million and $49 million during the three-month periods ended March 31, 2015 and 2014, respectively. These revenues were offset by Provider Taxes of $28 million and $18 million during the three-month periods ended March 31, 2015 and 2014, respectively, which are recorded in other operating expenses on the Condensed Consolidated Statements of Income as included herein. Prior to 2015, these Provider Taxes were recorded as a reduction to our net revenues. Accordingly, the unaudited Condensed Consolidated Statement of Income for the three-month period ended March 31, 2014 has been revised to reflect the current period classification, resulting in an increase in net revenue and an increase in other operating expenses of $18 million. We assessed this adjustment to the classification and concluded that it was not material to our previously issued annual and quarterly Consolidated Statements of Income, which will be revised in future filings. |
Relationship_with_Universal_He
Relationship with Universal Health Realty Income Trust and Related Party Transactions | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Relationship with Universal Health Realty Income Trust and Related Party Transactions | (2) Relationship with Universal Health Realty Income Trust and Related Party Transactions | ||||||||||||
Relationship with Universal Health Realty Income Trust: | |||||||||||||
Universal Health Realty Income Trust (the “Trust”) commenced operations in 1986 by purchasing certain properties from us and immediately leasing the properties back to our respective subsidiaries. Most of the leases were entered into at the time the Trust commenced operations and provided for initial terms of 13 to 15 years with up to six additional 5-year renewal terms. Each lease also provided for additional or bonus rental, as discussed below. The base rents are paid monthly and the bonus rents are computed and paid on a quarterly basis, based upon a computation that compares current quarter revenue to a corresponding quarter in the base year. The leases with our subsidiaries are unconditionally guaranteed by us and are cross-defaulted with one another. | |||||||||||||
At March 31, 2015, we held approximately 5.9% of the outstanding shares of the Trust. We serve as Advisor to the Trust under an annually renewable advisory agreement pursuant to the terms of which we conduct the Trust’s day-to-day affairs, provide administrative services and present investment opportunities. In addition, certain of our officers and directors are also officers and/or directors of the Trust. Management believes that it has the ability to exercise significant influence over the Trust, therefore we account for our investment in the Trust using the equity method of accounting. | |||||||||||||
We earned an advisory fee from the Trust, which is included in net revenues in the accompanying consolidated statements of income, of approximately $700,000 and $600,000 during the three-month periods ended March 31, 2015 and 2014, respectively. Our pre-tax share of income from the Trust was $200,000 and $300,000 during the three-month periods ended March 31, 2015 and 2014, respectively. The carrying value of this investment was approximately $9.0 million and $9.3 million at March 31, 2015 and December 31, 2014, respectively, and is included in other assets in the accompanying consolidated balance sheets. The market value of our investment in the Trust was $44.3 million at March 31, 2015 and $37.9 million at December 31, 2014, based on the closing price of the Trust’s stock on the respective dates. | |||||||||||||
During the first quarter of 2015, wholly-owned subsidiaries of ours sold to and leased back from the Trust, two recently constructed free-standing emergency departments (“FEDs”) located in Texas which were completed and opened during the first quarter of 2015. In conjunction with these transactions, ten-year lease agreements with six, five-year renewal options have been executed with the Trust. We have the option to purchase the properties upon the expiration of the fixed terms and each five-year renewal terms at the fair market value of the property. The aggregate construction cost/sales proceeds of these facilities was approximately $13 million, and the aggregate rent expense paid to the Trust at the commencement of the leases will approximate $900,000 annually. | |||||||||||||
In December, 2014, upon the expiration of the lease term, we elected to purchase from the Trust for $17.3 million, the real property of The Bridgeway, a 103-bed behavioral health care facility located in North Little Rock, Arkansas. Pursuant to the terms of the lease, we and the Trust were both required to obtain appraisals of the property to determine its fair market value/purchase price. The rent expense paid by us to the Trust, prior to our purchase of The Bridgeway’s real property in December, 2014, was approximately $1.1 million annually. | |||||||||||||
The table below details the renewal options and terms for each of our three acute care hospital facilities leased from the Trust as of March 31, 2015: | |||||||||||||
Hospital Name | Annual | End of Lease Term | Renewal | ||||||||||
Minimum | Term | ||||||||||||
Rent | (years) | ||||||||||||
McAllen Medical Center | $ | 5,485,000 | December, 2016 | 15 | (a) | ||||||||
Wellington Regional Medical Center | $ | 3,030,000 | December, 2016 | 15 | (b) | ||||||||
Southwest Healthcare System, Inland Valley Campus | $ | 2,648,000 | December, 2016 | 15 | (b) | ||||||||
(a) | We have three 5-year renewal options at existing lease rates (through 2031). | ||||||||||||
(b) | We have one 5-year renewal option at existing lease rates (through 2021) and two 5-year renewal options at fair market value lease rates (2022 through 2031). | ||||||||||||
Total rent expense under the operating leases on these three hospital facilities was approximately $4 million during each of the three months ended March 31, 2015 and 2014. In addition, certain of our subsidiaries are tenants in several medical office buildings and two FEDs (as discussed above) owned by the Trust or by limited liability companies in which the Trust holds 100% of the ownership interest. | |||||||||||||
Pursuant to the terms of the three hospital leases with the Trust, we have the option to renew the leases at the lease terms described above by providing notice to the Trust at least 90 days prior to the termination of the then current term. We also have the right to purchase the respective leased hospitals at the end of the lease terms or any renewal terms at their appraised fair market value as well as purchase any or all of the three leased hospital properties at their appraised fair market value upon one month’s notice should a change of control of the Trust occur. In addition, we have rights of first refusal to: (i) purchase the respective leased facilities during and for 180 days after the lease terms at the same price, terms and conditions of any third-party offer, or; (ii) renew the lease on the respective leased facility at the end of, and for 180 days after, the lease term at the same terms and conditions pursuant to any third-party offer. | |||||||||||||
Other Related Party Transactions: | |||||||||||||
In December, 2010, our Board of Directors approved the Company’s entering into supplemental life insurance plans and agreements on the lives of our chief executive officer (“CEO”) and his wife. As a result of these agreements, based on actuarial tables and other assumptions, during the life expectancies of the insureds, we would pay approximately $25 million in premiums, and certain trusts owned by our chief executive officer, would pay approximately $8 million in premiums. Based on the projected premiums mentioned above, and assuming the policies remain in effect until the death of the insureds, we will be entitled to receive death benefit proceeds of no less than $33 million representing the $25 million of aggregate premiums paid by us as well as the $8 million of aggregate premiums paid by the trusts. During 2014 we paid approximately $1.3 million in premium payments and expect to pay similar amounts during 2015. | |||||||||||||
A member of our Board of Directors and member of the Executive Committee is Of Counsel to the law firm used by us as our principal outside counsel. This Board member is also the trustee of certain trusts for the benefit of our CEO and his family. This law firm also provides personal legal services to our CEO. |
Other_Noncurrent_liabilities_a
Other Noncurrent liabilities and Redeemable/Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2015 | |
Other Noncurrent liabilities and Redeemable/Noncontrolling Interests | (3) Other Noncurrent liabilities and Redeemable/Noncontrolling Interests |
Other noncurrent liabilities include the long-term portion of our professional and general liability, workers’ compensation reserves, pension and deferred compensation liabilities, and a liability incurred in connection with split-dollar life insurance agreements on the lives of our chief executive officer and his wife. | |
Outside owners hold noncontrolling, minority ownership interests of: (i) approximately 28% in our five acute care facilities (and one additional facility currently under construction) located in Las Vegas, Nevada; (ii) 20% in an acute care facility located in Washington, D.C.; (iii) approximately 11% in an acute care facility located in Laredo, Texas, and; (iv) 20% in a behavioral health care facility located in Philadelphia, Pennsylvania. The redeemable noncontrolling interest balances of $255 million as of March 31, 2015 and $240 million as of December 31, 2014, and the noncontrolling interest balances of $57 million as of March 31, 2015 and $55 million as of December 31, 2014, consist primarily of the third-party ownership interests in these hospitals. | |
In connection with five acute care facilities (and an additional facility currently under construction) located in Las Vegas, Nevada, the minority ownership interests of which are reflected as redeemable noncontrolling interests on our Consolidated Balance Sheet, the outside owners have certain “put rights” that, if exercisable, and if exercised, require us to purchase the minority member’s interests at fair market value. The put rights are exercisable upon the occurrence of: (i) certain specified financial conditions falling below established thresholds; (ii) breach of the management contract by the managing member (a subsidiary of ours), or; (iii) if the minority member’s ownership percentage is reduced to less than certain thresholds. In connection with a behavioral health care facility located in Philadelphia, Pennsylvania and acquired by us as part of the PSI acquisition, the minority ownership interest of which is also reflected as redeemable noncontrolling interests on our Consolidated Balance Sheet, the outside owner has a “put option” to put its entire ownership interest to us at any time. If exercised, the put option requires us to purchase the minority member’s interest at fair market value. |
Longterm_debt_and_cash_flow_he
Long-term debt and cash flow hedges | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Long-term debt and cash flow hedges | (4) Long-term debt and cash flow hedges | |||
Debt: | ||||
During the third quarter of 2014, we completed the following financing transactions: | ||||
• | In August, 2014, we entered into a fourth amendment to our credit agreement dated as of November 15, 2010, as amended (“Credit Agreement”). The Credit Agreement, which is scheduled to mature in August, 2019, consists of: (i) an $800 million revolving credit facility (no borrowings outstanding as of March 31, 2015), and; (ii) a $1.775 billion term loan A facility ($1.753 billion of borrowings outstanding as of March 31, 2015) which combined our previously outstanding term loan A and term loan A2 facilities which were scheduled to mature in 2016; | |||
• | Repaid $550 million of outstanding borrowings pursuant to our previously outstanding term loan B facility which was scheduled to mature in 2016; | |||
• | Increased the borrowing capacity on our existing accounts receivable securitization program (“Securitization”) to $360 million from $275 million, effective August 1, 2014. The Securitization, the terms of which remain the same as the previous agreement, as discussed below, is scheduled to mature in October, 2016; | |||
• | Issued $300 million aggregate principal amount of 3.750% senior secured notes due in 2019 (see below for additional disclosure); | |||
• | Issued $300 million aggregate principal amount of 4.750% senior secured notes due in 2022 (see below for additional disclosure); | |||
• | Redeemed our previously outstanding $250 million, 7.00% senior unsecured notes due in 2018 on July 31, 2014 for an aggregate price equal to 104.56% of the principal amount. | |||
Borrowings under the Credit Agreement bear interest at either (1) the ABR rate which is defined as the rate per annum equal to, at our election: the greatest of (a) the lender’s prime rate, (b) the weighted average of the federal funds rate, plus 0.5% and (c) one month LIBOR rate plus 1%, in each case, plus an applicable margin based upon our consolidated leverage ratio at the end of each quarter ranging from 0.50% to 1.25% for revolving credit and term loan-A borrowings, or (2) the one, two, three or six month LIBOR rate (at our election), plus an applicable margin based upon our consolidated leverage ratio at the end of each quarter ranging from 1.50% to 2.25% for revolving credit and term loan-A borrowings. As of March 31, 2015, the applicable margins were 0.50% for ABR-based loans, 1.50% for LIBOR-based loans under the revolving credit and term loan-A facilities. | ||||
As of March 31, 2015, we had no borrowings outstanding pursuant to the terms of our $800 million revolving credit facility and we had $739 million of available borrowing capacity, net of $21 million of outstanding borrowings pursuant to a short-term, on-demand credit facility and $40 million of outstanding letters of credit. The revolving credit facility includes a $125 million sub-limit for letters of credit. The Credit Agreement is secured by certain assets of the Company and our material subsidiaries and guaranteed by our material subsidiaries. | ||||
Pursuant to the terms of the Credit Agreement, term loan-A quarterly installment payments of approximately: (i) $11 million commenced during the fourth quarter of 2014 and are scheduled to continue through September, 2016, and; (ii) $22 million are scheduled from the fourth quarter of 2016 through June, 2019. | ||||
As discussed above, on August 1, 2014, our accounts receivable securitization program (“Securitization”), with a group of conduit lenders and liquidity banks which is scheduled to mature in October, 2016, was amended to increase the borrowing capacity to $360 million from $275 million. Substantially all of the patient-related accounts receivable of our acute care hospitals (“Receivables”) serve as collateral for the outstanding borrowings. We have accounted for this Securitization as borrowings. We maintain effective control over the Receivables since, pursuant to the terms of the Securitization, the Receivables are sold from certain of our subsidiaries to special purpose entities that are wholly-owned by us. The Receivables, however, are owned by the special purpose entities, can be used only to satisfy the debts of the wholly-owned special purpose entities, and thus are not available to us except through our ownership interest in the special purpose entities. The wholly-owned special purpose entities use the Receivables to collateralize the loans obtained from the group of third-party conduit lenders and liquidity banks. The group of third-party conduit lenders and liquidity banks do not have recourse to us beyond the assets of the wholly-owned special purpose entities that securitize the loans. At March 31, 2015, we had $325 million of outstanding borrowings and $35 million of additional capacity pursuant to the terms of our accounts receivable securitization program. | ||||
On August 7, 2014, we issued $300 million aggregate principal amount of 3.750% Senior Secured Notes due 2019 (the “2019 Notes”) and $300 million aggregate principal amount of 4.750% Senior Secured Notes due 2022 (the “2022 Notes”, and together with the 2019 Notes, the “New Senior Secured Notes”). The New Senior Secured Notes were offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The New Senior Secured Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Interest is payable on the New Senior Secured Notes on February 1 and August 1 of each year to the holders of record at the close of business on the January 15 and July 15 immediately preceding the related interest payment dates, commencing on February 1, 2015 until the maturity date of August 1, 2019 for the 2019 Notes and August 1, 2022 for the 2022 Notes. | ||||
On June 30, 2006, we issued $250 million of senior secured notes which have a 7.125% coupon rate and mature on June 30, 2016 (the “7.125% Notes”). Interest on the 7.125% Notes is payable semiannually in arrears on June 30th and December 30th of each year. In June, 2008, we issued an additional $150 million of 7.125% Notes which formed a single series with the original 7.125% Notes issued in June, 2006. Other than their date of issuance and initial price to the public, the terms of the 7.125% Notes issued in June, 2008 are identical to and trade interchangeably with, the 7.125% Notes which were originally issued in June, 2006. | ||||
On July 31, 2014, we redeemed the $250 million, 7.00% senior unsecured notes (the “Unsecured Notes”), which were scheduled to mature on October 1, 2018, at a redemption price equal to 104.56% of the principal amount of the Unsecured Notes resulting in a make-whole premium payment of approximately $11 million. The Unsecured Notes were issued on September 29, 2010 and registered in April, 2011. Interest on the Unsecured Note was payable semiannually in arrears on April 1st and October 1st of each year. | ||||
In connection with entering into the previous Credit Agreement on November 15, 2010, and in accordance with the Indenture dated January 20, 2000 governing the rights of our existing notes, we entered into a supplemental indenture pursuant to which our 7.125% Notes (due in 2016) were equally and ratably secured with the lenders under the Credit Agreement with respect to the collateral for so long as the lenders under the Credit Agreement are so secured. | ||||
Our Credit Agreement includes a material adverse change clause that must be represented at each draw. The Credit Agreement contains covenants that include a limitation on sales of assets, mergers, change of ownership, liens and indebtedness, transactions with affiliates, dividends and stock repurchases; and requires compliance with financial covenants including maximum leverage and minimum interest coverage ratios. We are in compliance with all required covenants as of March 31, 2015. | ||||
As of March 31, 2015, the carrying value of our debt was $3.1 billion and the fair-value of our debt was $3.2 billion. The fair value of our debt was computed based upon quotes received from financial institutions. We consider these to be “level 2” in the fair value hierarchy as outlined in the authoritative guidance for disclosures in connection with debt instruments. | ||||
Cash Flow Hedges: | ||||
We manage our ratio of fixed and floating rate debt with the objective of achieving a mix that management believes is appropriate. To manage this risk in a cost-effective manner, we, from time to time, enter into interest rate swap agreements in which we agree to exchange various combinations of fixed and/or variable interest rates based on agreed upon notional amounts. We account for our derivative and hedging activities using the Financial Accounting Standard Board’s (“FASB”) guidance which requires all derivative instruments, including certain derivative instruments embedded in other contracts, to be carried at fair value on the balance sheet. For derivative transactions designated as hedges, we formally document all relationships between the hedging instrument and the related hedged item, as well as its risk-management objective and strategy for undertaking each hedge transaction. | ||||
Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either an asset or liability, with a corresponding amount recorded in accumulated other comprehensive income (“AOCI”) within shareholders’ equity. Amounts are reclassified from AOCI to the income statement in the period or periods the hedged transaction affects earnings. We use interest rate derivatives in our cash flow hedge transactions. Such derivatives are designed to be highly effective in offsetting changes in the cash flows related to the hedged liability. For derivative instruments designated as cash flow hedges, the ineffective portion of the change in expected cash flows of the hedged item are recognized currently in the income statement. | ||||
For hedge transactions that do not qualify for the short-cut method, at the hedge’s inception and on a regular basis thereafter, a formal assessment is performed to determine whether changes in the fair values or cash flows of the derivative instruments have been highly effective in offsetting changes in cash flows of the hedged items and whether they are expected to be highly effective in the future. | ||||
The fair value of interest rate swap agreements approximates the amount at which they could be settled, based on estimates obtained from the counterparties. We assess the effectiveness of our hedge instruments on a quarterly basis. We performed periodic assessments of the cash flow hedge instruments during 2014 and the first three months of 2015 and determined the hedges to be highly effective. We also determined that any portion of the hedges deemed to be ineffective was de minimis and therefore there was no material effect on our consolidated financial position, operations or cash flows. The counterparties to the interest rate swap agreements expose us to credit risk in the event of nonperformance. However, at March 31, 2015 and December 31, 2014, each swap agreement entered into by us was in a liability position which would require us to make the settlement payments to the counterparties. We do not anticipate nonperformance by our counterparties. We do not hold or issue derivative financial instruments for trading purposes. | ||||
During 2010, we entered into four forward starting interest rate swaps whereby we pay a fixed rate on a total notional amount of $600 million and receive three-month LIBOR. Each of the four swaps became effective in December, 2011 and will mature in May, 2015. The average fixed rate payable on these swaps is 2.38%. | ||||
We also entered into six forward starting interest rate swaps in 2011 whereby we pay/paid a fixed rate on a total notional amount of $425 million and receive/received three-month LIBOR. Three of these swaps with a total notional amount of $225 million became effective in March, 2011 and will mature in May, 2015. The average fixed rate payable on these swaps is 1.91%. Two of the remaining three interest rate swaps, with total notional amounts of $75 million and $25 million, matured in December, 2012 and December, 2013, respectively. The third remaining interest rate swaps, with a total notional amount of $100 million, became effective in December, 2011, expired in December, 2014, and had a corresponding fixed rate of 2.50%. | ||||
We measure our interest rate swaps at fair value on a recurring basis. The fair value of our interest rate swaps is based primarily on quotes from banks. We consider those inputs to be “level 2” in the fair value hierarchy as outlined in the authoritative guidance for disclosures in connection with derivative instruments and hedging activities. The fair value of our interest rate swaps was a liability of $2 million at March 31, 2015 and $6 million at December 31, 2014, all of which is included in other current liabilities as of each date. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies | (5) Commitments and Contingencies |
Professional and General Liability, Workers’ Compensation Liability and Property Insurance | |
Professional and General Liability and Workers Compensation Liability: | |
Effective November, 2010, excluding certain subsidiaries acquired since 2010 as discussed below, the vast majority of our subsidiaries are self-insured for professional and general liability exposure up to $10 million and $3 million per occurrence, respectively. Our subsidiaries were provided with several excess policies through commercial insurance carriers which provide for coverage in excess of the applicable per occurrence self-insured retention (either $3 million or $10 million) up to $250 million per occurrence and in the aggregate for claims incurred in 2014 and up to $200 million per occurrence and in the aggregate for claims incurred from 2011 through 2013. We remain liable for 10% of the claims paid pursuant to the commercially insured coverage in excess of $10 million up to $60 million per occurrence and in the aggregate. | |
Since our acquisition of Psychiatric Solutions, Inc. (“PSI”) in November, 2010, the former PSI subsidiaries are self-insured for professional and general liability exposure up to $3 million per occurrence. The nine behavioral health facilities acquired from Ascend Health Corporation (“Ascend”) in October, 2012 have general and professional liability policies through commercial insurance carriers which provide for up to $12 million of aggregate coverage, subject to a $100,000 per occurrence deductible. The 17 facilities acquired from Cygnet Health Care Limited (“Cygnet”), consisting of 15 inpatient behavioral health hospitals and 2 nursing homes, have policies through a commercial insurance carrier located in the United Kingdom that provides for £10 million of professional liability coverage and £25 million of general liability coverage. The facilities acquired from PSI, Ascend and Cygnet, like our other facilities, are also provided excess coverage through commercial insurance carriers for coverage in excess of the underlying commercial policy limitations, as mentioned above. | |
Our estimated liability for self-insured professional and general liability claims is based on a number of factors including, among other things, the number of asserted claims and reported incidents, estimates of losses for these claims based on recent and historical settlement amounts, estimates of incurred but not reported claims based on historical experience, and estimates of amounts recoverable under our commercial insurance policies. While we continuously monitor these factors, our ultimate liability for professional and general liability claims could change materially from our current estimates due to inherent uncertainties involved in making this estimate. Given our significant self-insured exposure for professional and general liability claims, there can be no assurance that a sharp increase in the number and/or severity of claims asserted against us will not have a material adverse effect on our future results of operations. | |
As of March 31, 2015, the total accrual for our professional and general liability claims was $190 million, of which $51 million is included in current liabilities. As of December 31, 2014, the total accrual for our professional and general liability claims was $193 million, of which $51 million is included in current liabilities. | |
As of March 31, 2015, the total accrual for our workers’ compensation liability claims was $66 million, of which $32 million is included in current liabilities. As of December 31, 2014, the total accrual for our workers’ compensation liability claims was $67 million, of which $32 million is included in current liabilities. | |
Property Insurance: | |
We have commercial property insurance policies covering catastrophic losses, including windstorm damage, up to a $1 billion policy limit per occurrence, subject to a $250,000 deductible for the majority of our properties (the properties acquired from PSI are subject to a $50,000 deductible). Losses resulting from named windstorms are subject to deductibles between 3% and 5% of the declared total insurable value of the property. In addition, we have commercial property insurance policies covering catastrophic losses resulting from earthquake and flood damage, each subject to aggregated loss limits (as opposed to per occurrence losses). Our earthquake limit is $250 million, subject to a deductible of $250,000, except for facilities located within documented fault zones. Earthquake losses that affect facilities located in fault zones within the United States are subject to a $100 million limit and will have applied deductibles ranging from 1% to 5% of the declared total insurable value of the property. The earthquake limit in Puerto Rico is $25 million, subject to a $25,000 deductible. Non-critical flood losses have either a $250,000 or $500,000 deductible, based upon the location of the facility. Since certain of our facilities have been designated by our insurer as flood prone, we have elected to purchase policies from The National Flood Insurance Program to cover a substantial portion of the applicable deductible. Property insurance for the facilities acquired from Cygnet are provided on an all risk basis up to a £180 million limit that includes coverage for real and personal property as well as business interruption losses. | |
Other | |
Our accounts receivable as of March 31, 2015 and December 31, 2014 include amounts due from Illinois of approximately $42 million and $44 million, respectively. Collection of the outstanding receivables continues to be delayed due to state budgetary and funding pressures. Approximately $22 million as of March 31, 2015 and $23 million as of December 31, 2014, of the receivables due from Illinois were outstanding in excess of 60 days, as of each respective date. In addition, our accounts receivable as of March 31, 2015 and December 31, 2014 includes approximately $105 million and $102 million, respectively, due from Texas in connection with Medicaid supplemental payment programs. The $105 million due from Texas as of March 31, 2015 consists of $61 million related to uncompensated care program revenues and $44 million related to disproportionate share hospital program revenues. Although the accounts receivable due from Illinois and Texas could remain outstanding for the foreseeable future, since we expect to eventually collect all amounts due to us, no related reserves have been established in our consolidated financial statements. However, we can provide no assurance that we will eventually collect all amounts due to us from Illinois and/or Texas. Failure to ultimately collect all outstanding amounts due from these states would have an adverse impact on our future consolidated results of operations and cash flows. | |
As of March 31, 2015 we were party to certain off balance sheet arrangements consisting of standby letters of credit and surety bonds which totaled $114 million consisting of: (i) $93 million related to our self-insurance programs, and; (ii) $21 million of other debt and public utility guarantees. | |
Legal Proceedings | |
We are subject to claims and suits in the ordinary course of business, including those arising from care and treatment afforded by our hospitals and are party to litigation, as outlined below. | |
Office of Inspector General (“OIG”) and Other Government Investigations | |
In September, 2010, we, along with many other companies in the healthcare industry, received a letter from the United States Department of Justice (“DOJ”) advising of a False Claim Act investigation being conducted in connection with the implantation of implantable cardioverter defibrillators (“ICDs”) from 2003 to 2010 at several of our acute care facilities. The DOJ alleges that ICDs were implanted and billed by our facilities in contravention of a National Coverage Determination regarding these devices. We have established a reserve in connection with this matter which did not have a material impact on our consolidated financial statements. | |
In February, 2013, the OIG served a subpoena requesting various documents from January, 2008 to the date of the subpoena directed at Universal Health Services, Inc. (“UHS”) concerning it and UHS of Delaware, Inc., and several UHS owned behavioral health facilities including: Keys of Carolina, Old Vineyard Behavioral Health, The Meadows Psychiatric Center, Streamwood Behavioral Health, Hartgrove Hospital, Rock River Academy and Residential Treatment Center, Roxbury Treatment Center, Harbor Point Behavioral Health Center, f/k/a, The Pines Residential Treatment Center, including the Crawford, Brighton and Kempsville campuses, Wekiva Springs Center and River Point Behavioral Health. Prior to receiving this subpoena: (i) the Keys of Carolina and Old Vineyard received notification during the second half of 2012 from the United States Department of Justice of its intent to proceed with an investigation following requests for documents for the period of January, 2007 to the date of the subpoenas from the North Carolina state Attorney General’s Office; (ii) Harbor Point Behavioral Health Center received a subpoena in December, 2012 from the Attorney General of the Commonwealth of Virginia requesting various documents from July, 2006 to the date of the subpoena, and; (iii) The Meadows Psychiatric Center received a subpoena from the OIG in February, 2013 requesting certain documents from 2008 to the date of the subpoena. Unrelated to these matters, the Keys of Carolina was closed and the real property was sold in January, 2013. We were advised that a qui tam action had been filed against Roxbury Treatment Center but the government declined to intervene and the case was dismissed. | |
In April, 2013, the OIG served facility specific subpoenas on Wekiva Springs Center and River Point Behavioral Health requesting various documents from January, 2005 to the date of the subpoenas. In July, 2013, another subpoena was issued to Wekiva Springs Center and River Point Behavioral Health requesting additional records. In October, 2013, we were advised by the DOJ’s Criminal Frauds Section that they received a referral from the DOJ Civil Division and opened an investigation of River Point Behavioral Health and Wekiva Springs Center. Subsequent subpoenas have since been issued to River Point Behavioral Health and Wekiva Springs Center requesting additional documentation. In April, 2014, the Centers for Medicare and Medicaid Services (“CMS”) instituted a Medicare payment suspension at River Point Behavioral Health in accordance with federal regulations regarding suspension of payments during certain investigations. The Florida Agency for Health Care Administration subsequently issued a Medicaid payment suspension for the facility. River Point Behavioral Health submitted a rebuttal statement disputing the basis of the suspension and requesting revocation of the suspension. Notwithstanding, CMS continued the payment suspension. River Point Behavioral Health provided additional information to CMS in an effort to obtain relief from the payment suspension but the suspension remains in effect. In March 2015, we received notification from CMS that the payment suspension will be continued for another 180 days. We cannot predict if and/or when the facility’s suspended payments will resume. However, if continued for a significant period of time, the payment suspension will likely have a material adverse effect on River Point Behavioral Health’s future results of operations and financial condition. The operating results of River Point Behavioral Health did not have a material impact on our consolidated results of operations during the three-month period ended March 31, 2015 or the year ended December 31, 2014. | |
In June, 2013, the OIG served a subpoena on Coastal Harbor Health System in Savannah, Georgia requesting documents from January, 2009 to the date of the subpoena. | |
In February, 2014, we were notified that the investigation conducted by the Criminal Frauds Section had been expanded to include the National Deaf Academy. In March, 2014, a Civil Investigative Demand (“CID”) was served on the National Deaf Academy requesting documents and information from the facility from January 1, 2008 through the date of the CID. We have been advised by the government that the National Deaf Academy has been added to the facilities which are the subject of the coordinated investigation referenced above. | |
In March, 2014, CIDs were served on Hartgrove Hospital, Rock River Academy and Streamwood Behavioral Health requesting documents and information from those facilities from January, 2008 through the date of the CID. | |
In September, 2014, the DOJ Civil Division advised us that they were expanding their investigation to include four additional facilities and were requesting production of documents from these facilities. These facilities are Arbour-HRI Hospital, Behavioral Hospital of Bellaire, St. Simons by the Sea, and Turning Point Care Center. | |
In December 2014, the DOJ Civil Division requested that Salt Lake Behavioral Health produce documents responsive to the original subpoenas issued in February, 2013. | |
In March, 2015, the OIG issued subpoenas to Central Florida Behavioral Hospital and University Behavioral Center requesting certain documents from January, 2008 to the date of the subpoena. | |
In late March, 2015, we were notified that the investigation conducted by the Criminal Frauds Section has been expanded to include UHS as a corporate entity arising out of the coordinated investigation of the facilities described above and, in particular, Hartgrove Hospital. | |
The DOJ has advised us that the civil aspect of the coordinated investigation referenced above is a False Claim Act investigation focused on billings submitted to government payers in relation to services provided at those facilities. At present, we are uncertain as to potential liability and/or financial exposure of the Company and/or named facilities, if any, in connection with these matters. | |
Matters Relating to Psychiatric Solutions, Inc. (“PSI”): | |
The following matters pertain to PSI or former PSI facilities (owned by subsidiaries of PSI) which were in existence prior to the acquisition of PSI and for which we have assumed the defense as a result of our acquisition which was completed in November, 2010. | |
Department of Justice Investigation of Friends Hospital: | |
In October, 2010, Friends Hospital in Philadelphia, Pennsylvania, received a subpoena from the DOJ requesting certain documents from the facility. The requested documents were collected and provided to the DOJ for review and examination. Another subpoena was issued to the facility in July, 2011 requesting additional documents, which have also been delivered to the DOJ. All documents requested and produced pertained to the operations of the facility while under PSI’s ownership prior to our acquisition. At present, we are uncertain as to the focus, scope or extent of the investigation, liability of the facility and/or potential financial exposure, if any, in connection with this matter. | |
Department of Justice Investigation of Riveredge Hospital: | |
In 2008, Riveredge Hospital in Chicago, Illinois received a subpoena from the DOJ requesting certain information from the facility. Additional requests for documents were also received from the DOJ in 2009 and 2010. The requested documents have been provided to the DOJ. All documents requested and produced pertained to the operations of the facility while under PSI’s ownership prior to our acquisition. At present, we are uncertain as to the focus, scope or extent of the investigation, liability of the facility and/or potential financial exposure, if any, in connection with this matter. | |
General: | |
The healthcare industry is subject to numerous laws and regulations which include, among other things, matters such as government healthcare participation requirements, various licensure, certifications, and accreditations, reimbursement for patient services, and Medicare and Medicaid fraud and abuse. Government action has increased with respect to investigations and/or allegations concerning possible violations of fraud and abuse and false claims statutes and/or regulations by healthcare providers. Currently, and from time to time, some of our facilities are subjected to inquiries and/or actions and receive notices of potential non-compliance of laws and regulations from various federal and state agencies. Providers that are found to have violated these laws and regulations may be excluded from participating in government healthcare programs, subjected to potential licensure, certification, and/or accreditation revocation, subjected to payment suspension, subjected to fines or penalties or required to repay amounts received from the government for previously billed patient services. We monitor all aspects of our business and have developed a comprehensive ethics and compliance program that is designed to meet or exceed applicable federal guidelines and industry standards. Because the law in this area is complex and constantly evolving, governmental investigation or litigation may result in interpretations that are inconsistent with industry practices, including ours. Although we believe our policies, procedures and practices comply with governmental regulations, there is no assurance that we will not be faced with sanctions, fines or penalties in connection with such inquiries or actions, including with respect to the investigations and other matters discussed herein. Even if we were to ultimately prevail, such inquiries and/or actions could have a material adverse effect on us. | |
The outcome of any current or future litigation or governmental or internal investigations, including the matters described above, cannot be accurately predicted, nor can we predict any resulting penalties, fines or other sanctions that may be imposed at the discretion of federal or state regulatory authorities. We record accruals for such contingencies to the extent that we conclude it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. No estimate of the possible loss or range of loss in excess of amounts accrued, if any, can be made at this time regarding the matters specifically described above because the inherently unpredictable nature of legal proceedings may be exacerbated by various factors, including, but not limited to: (i) the damages sought in the proceedings are unsubstantiated or indeterminate; (ii) discovery is not complete; (iii) the proceeding is in its early stages; (iv) the matters present legal uncertainties; (v) there are significant facts in dispute; (vi) there are a large number of parties, or; (vii) there is a wide range of potential outcomes. It is possible that the outcome of these matters could have a material adverse impact on our future results of operations, financial position, cash flows and, potentially, our reputation. | |
In addition, various suits and claims arising against us in the ordinary course of business are pending. In the opinion of management, the outcome of such claims and litigation will not materially affect our consolidated financial position or results of operations. |
Segment_Reporting
Segment Reporting | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment Reporting | (6) Segment Reporting | ||||||||||||||||
Our reportable operating segments consist of acute care hospital services and behavioral health care services. The “Other” segment column below includes centralized services including information services, purchasing, reimbursement, accounting, taxation, legal, advertising, design and construction and patient accounting as well as the operating results for our other operating entities including outpatient surgery and radiation centers. The chief operating decision making group for our acute care hospital services and behavioral health care services is comprised of the Chief Executive Officer, the President and the Presidents of each operating segment. The Presidents of each operating segment also manage the profitability of each respective segment’s various facilities. The operating segments are managed separately because each operating segment represents a business unit that offers different types of healthcare services or operates in different healthcare environments. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies included in our Annual Report on Form 10-K for the year ended December 31, 2014. | |||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||
Acute Care | Behavioral | ||||||||||||||||
Hospital | Health | Total | |||||||||||||||
Services | Services | Other | Consolidated | ||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Gross inpatient revenues | $ | 4,328,767 | $ | 1,823,425 | — | $ | 6,152,192 | ||||||||||
Gross outpatient revenues | $ | 2,284,712 | $ | 204,569 | $ | 7,827 | $ | 2,497,108 | |||||||||
Total net revenues | $ | 1,145,940 | $ | 1,076,345 | $ | 3,068 | $ | 2,225,353 | |||||||||
Income/(loss) before allocation of corporate overhead and income taxes | $ | 155,200 | $ | 253,442 | ($ | 111,625 | ) | $ | 297,017 | ||||||||
Allocation of corporate overhead | ($ | 49,426 | ) | ($ | 29,666 | ) | $ | 79,092 | 0 | ||||||||
Income/(loss) after allocation of corporate overhead and before income taxes | $ | 105,774 | $ | 223,776 | ($ | 32,533 | ) | $ | 297,017 | ||||||||
Total assets as of 3/31/15 | $ | 3,431,688 | $ | 5,315,270 | $ | 337,397 | $ | 9,084,355 | |||||||||
Three months ended March 31, 2014 | |||||||||||||||||
Acute Care | Behavioral | ||||||||||||||||
Hospital | Health | Total | |||||||||||||||
Services | Services | Other | Consolidated | ||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Gross inpatient revenues | $ | 3,876,364 | $ | 1,608,899 | — | $ | 5,485,263 | ||||||||||
Gross outpatient revenues | $ | 1,957,491 | $ | 184,115 | $ | 8,514 | $ | 2,150,120 | |||||||||
Total net revenues | $ | 974,647 | $ | 960,347 | $ | 3,320 | $ | 1,938,314 | |||||||||
Income/(loss) before allocation of corporate overhead and income taxes | $ | 111,650 | $ | 221,148 | ($ | 97,015 | ) | $ | 235,783 | ||||||||
Allocation of corporate overhead | ($ | 44,697 | ) | ($ | 26,169 | ) | $ | 70,866 | 0 | ||||||||
Income/(loss) after allocation of corporate overhead and before income taxes | $ | 66,953 | $ | 194,979 | ($ | 26,149 | ) | $ | 235,783 | ||||||||
Total assets as of 3/31/14 | $ | 3,200,203 | $ | 5,004,478 | $ | 226,704 | $ | 8,431,385 |
Earnings_Per_Share_Data_EPS_an
Earnings Per Share Data ("EPS") and Stock Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share Data ("EPS") and Stock Based Compensation | (7) Earnings Per Share Data (“EPS”) and Stock Based Compensation | ||||||||
Basic earnings per share are based on the weighted average number of common shares outstanding during the period. Diluted earnings per share are based on the weighted average number of common shares outstanding during the period adjusted to give effect to common stock equivalents. | |||||||||
The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data): | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Basic and Diluted: | |||||||||
Net income attributable to UHS | $ | 174,299 | $ | 138,078 | |||||
Less: Net income attributable to unvested restricted share grants | (68 | ) | (70 | ) | |||||
Net income attributable to UHS – basic and diluted | $ | 174,231 | $ | 138,008 | |||||
Weighted average number of common shares - basic | 98,910 | 98,572 | |||||||
Net effect of dilutive stock options and grants based on the treasury stock method | 1,737 | 1,585 | |||||||
Weighted average number of common shares and equivalents - diluted | 100,647 | 100,157 | |||||||
Earnings per basic share attributable to UHS: | $ | 1.76 | $ | 1.4 | |||||
Earnings per diluted share attributable to UHS: | $ | 1.73 | $ | 1.38 | |||||
The “Net effect of dilutive stock options and grants based on the treasury stock method”, for all periods presented above, excludes certain outstanding stock options applicable to each period since the effect would have been anti-dilutive. The excluded weighted-average stock options totaled 3.0 million for the three months ended March 31, 2015. There were no anti-dilutive stock options during the three months ended March 31, 2014. All classes of our common stock have the same dividend rights. | |||||||||
Stock-Based Compensation: During the three-month periods ended March 31, 2015 and 2014, compensation cost of $10.5 million and $6.8 million, respectively, was recognized related to outstanding stock options. In addition, during the three-month periods ended March 31, 2015 and 2014, compensation cost of approximately $219,000 and $409,000, respectively, was recognized related to restricted stock. As of March 31, 2015 there was $93.9 million of unrecognized compensation cost related to unvested options and restricted stock which is expected to be recognized over the remaining weighted average vesting period of 3.2 years. There were 2,964,850 stock options granted (net of cancellations) during the first three months of 2015 with a weighted-average grant date fair value of $21.28 per share. | |||||||||
The expense associated with share-based compensation arrangements is a non-cash charge. In the Consolidated Statements of Cash Flows, share-based compensation expense is an adjustment to reconcile net income to cash provided by operating activities and aggregated to $10.8 million and $7.2 million during the three-month periods ended March 31, 2015 and 2014, respectively. In accordance with ASC 718, excess income tax benefits related to stock based compensation are classified as cash inflows from financing activities on the Consolidated Statement of Cash Flows. During the first three months of 2015 and 2014, we generated $20.1 million and $11.7 million, respectively, of excess income tax benefits related to stock based compensation which are reflected as cash inflows from financing activities in our Consolidated Statements of Cash Flows. |
Dispositions_and_acquisitions
Dispositions and acquisitions | 3 Months Ended |
Mar. 31, 2015 | |
Dispositions and acquisitions | (8) Dispositions and acquisitions |
Three-month period ended March 31, 2015: | |
Acquisitions: | |
During the first quarter of 2015, we paid approximately $35 million to acquire: (i) the Orchard Portman House Hospital (now called Cygnet Hospital-Taunton), a 46-bed behavioral health care facility located near Taunton, United Kingdom; (ii) certain assets and a management contract related to the operations of a 24-bed critical access hospital located in Bonham, Texas, and; (iii) various other businesses and real property assets. | |
Three-month period ended March 31, 2014: | |
Acquisitions: | |
During the first quarter of 2014, we paid approximately $3 million to acquire the operations of Palo Verde Behavioral Health, a 48-bed behavioral health care facility located in Tucson, Arizona. | |
Divestitures: | |
During the first quarter of 2014, we received approximately $11 million of cash proceeds for the divestiture of a non-operating investment. This transaction resulted in a pre-tax gain of approximately $10 million which is included in our consolidated results of operations during the first quarter of 2014. |
Dividends
Dividends | 3 Months Ended |
Mar. 31, 2015 | |
Dividends | (9) Dividends |
We declared and paid dividends of $9.9 million, or $.10 per share, during the first quarter of 2015 and $4.9 million, or $.05 per share, during the first quarter of 2014. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Taxes | (10) Income Taxes |
As of January 1, 2015, our unrecognized tax benefits were approximately $2 million. The amount, if recognized, that would affect the effective tax rate is approximately $2 million. During the quarter ended March 31, 2015, changes to the estimated liabilities for uncertain tax positions (including accrued interest) relating to tax positions taken during prior and current periods did not have a material impact on our financial statements. | |
We recognize accrued interest and penalties associated with uncertain tax positions as part of the tax provision. As of March 31, 2015, we have less than $1 million of accrued interest and penalties. The U.S. federal statute of limitations remains open for the 2011 and subsequent years. Foreign and U.S. state and local jurisdictions have statutes of limitations generally ranging from 3 to 4 years. The statute of limitations on certain jurisdictions could expire within the next twelve months. It is reasonably possible that the amount of uncertain tax benefits will change during the next 12 months, however, it is anticipated that any such change, if it were to occur, would not have a material impact on our results of operations. | |
We operate in multiple jurisdictions with varying tax laws. We are subject to audits by any of these taxing authorities. Our tax returns have been examined by the Internal Revenue Service (“IRS”) through the year ended December 31, 2006. We believe that adequate accruals have been provided for federal, foreign and state taxes. |
Supplemental_Condensed_Consoli
Supplemental Condensed Consolidating Financial Information | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Supplemental Condensed Consolidating Financial Information | (11) Supplemental Condensed Consolidating Financial Information | ||||||||||||||||||||
Certain of our senior notes are guaranteed by a group of subsidiaries (the “Guarantors”). The Guarantors, each of which is a 100% directly owned subsidiary of Universal Health Services, Inc., fully and unconditionally guarantee the senior notes on a joint and several basis, subject to certain customary release provisions. | |||||||||||||||||||||
The following financial statements present condensed consolidating financial data for (i) Universal Health Services, Inc. (on a parent company only basis), (ii) the combined Guarantors, (iii) the combined non guarantor subsidiaries (all other subsidiaries), (iv) an elimination column for adjustments to arrive at the information for the parent company, Guarantors, and non guarantors on a consolidated basis, and (v) the parent company and our subsidiaries on a consolidated basis. | |||||||||||||||||||||
Investments in subsidiaries are accounted for by the parent company and the Guarantors using the equity method for this presentation. Results of operations of subsidiaries are therefore classified in the parent company’s and Guarantors’ investment in subsidiaries accounts. The elimination entries set forth in the following condensed consolidating financial statements eliminate distributed and undistributed income of subsidiaries, investments in subsidiaries, and intercompany balances and transactions between the parent, Guarantors, and non guarantors. | |||||||||||||||||||||
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Net revenues before provision for doubtful accounts | $ | 0 | $ | 1,661,612 | $ | 726,080 | $ | (7,591 | ) | $ | 2,380,101 | ||||||||||
Less: Provision for doubtful accounts | 0 | 106,304 | 48,444 | 0 | 154,748 | ||||||||||||||||
Net revenues | 0 | 1,555,308 | 677,636 | (7,591 | ) | 2,225,353 | |||||||||||||||
Operating charges: | |||||||||||||||||||||
Salaries, wages and benefits | 0 | 740,554 | 291,149 | 0 | 1,031,703 | ||||||||||||||||
Other operating expenses | 0 | 351,580 | 161,686 | (7,300 | ) | 505,966 | |||||||||||||||
Supplies expense | 0 | 141,361 | 97,380 | 0 | 238,741 | ||||||||||||||||
Depreciation and amortization | 0 | 69,645 | 29,353 | 0 | 98,998 | ||||||||||||||||
Lease and rental expense | 0 | 13,755 | 9,427 | (291 | ) | 22,891 | |||||||||||||||
0 | 1,316,895 | 588,995 | (7,591 | ) | 1,898,299 | ||||||||||||||||
Income from operations | 0 | 238,413 | 88,641 | 0 | 327,054 | ||||||||||||||||
Interest expense | 28,512 | 1,227 | 298 | 0 | 30,037 | ||||||||||||||||
Interest (income) expense, affiliate | 0 | 23,054 | (23,054 | ) | 0 | 0 | |||||||||||||||
Equity in net income of consolidated affiliates | (191,898 | ) | (59,515 | ) | 0 | 251,413 | 0 | ||||||||||||||
Income before income taxes | 163,386 | 273,647 | 111,397 | (251,413 | ) | 297,017 | |||||||||||||||
Provision for income taxes | (10,913 | ) | 92,130 | 21,477 | 0 | 102,694 | |||||||||||||||
Net income | 174,299 | 181,517 | 89,920 | (251,413 | ) | 194,323 | |||||||||||||||
Less: Income attributable to noncontrolling interests | 0 | 0 | 20,024 | 0 | 20,024 | ||||||||||||||||
Net income attributable to UHS | $ | 174,299 | $ | 181,517 | $ | 69,896 | $ | (251,413 | ) | $ | 174,299 | ||||||||||
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Net revenues before provision for doubtful accounts | $ | 0 | $ | 1,478,459 | $ | 675,196 | $ | (7,157 | ) | $ | 2,146,498 | ||||||||||
Less: Provision for doubtful accounts | 0 | 135,986 | 72,198 | 0 | 208,184 | ||||||||||||||||
Net revenues | 0 | 1,342,473 | 602,998 | (7,157 | ) | 1,938,314 | |||||||||||||||
Operating charges: | |||||||||||||||||||||
Salaries, wages and benefits | 0 | 669,253 | 266,112 | 0 | 935,365 | ||||||||||||||||
Other operating expenses | 0 | 254,715 | 152,134 | (6,941 | ) | 399,908 | |||||||||||||||
Supplies expense | 0 | 131,475 | 84,323 | 0 | 215,798 | ||||||||||||||||
EHR incentive income | 0 | (430 | ) | 0 | 0 | (430 | ) | ||||||||||||||
Depreciation and amortization | 0 | 67,714 | 25,645 | 0 | 93,359 | ||||||||||||||||
Lease and rental expense | 0 | 14,349 | 9,205 | (216 | ) | 23,338 | |||||||||||||||
0 | 1,137,076 | 537,419 | (7,157 | ) | 1,667,338 | ||||||||||||||||
Income from operations | 0 | 205,397 | 65,579 | 0 | 270,976 | ||||||||||||||||
Interest expense | 33,573 | 824 | 796 | 0 | 35,193 | ||||||||||||||||
Interest (income) expense, affiliate | 0 | 22,112 | (22,112 | ) | 0 | 0 | |||||||||||||||
Equity in net income of consolidated affiliates | (158,801 | ) | (42,952 | ) | 0 | 201,753 | 0 | ||||||||||||||
Income before income taxes | 125,228 | 225,413 | 86,895 | (201,753 | ) | 235,783 | |||||||||||||||
Provision for income taxes | (12,850 | ) | 78,753 | 18,028 | 0 | 83,931 | |||||||||||||||
Net income | 138,078 | 146,660 | 68,867 | (201,753 | ) | 151,852 | |||||||||||||||
Less: Income attributable to noncontrolling interests | 0 | 0 | 13,774 | 0 | 13,774 | ||||||||||||||||
Net income attributable to UHS | $ | 138,078 | $ | 146,660 | $ | 55,093 | $ | (201,753 | ) | $ | 138,078 | ||||||||||
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Net income | $ | 174,299 | $ | 181,517 | $ | 89,920 | $ | (251,413 | ) | $ | 194,323 | ||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||
Unrealized derivative gains on cash flow hedges | 4,132 | 0 | 0 | 0 | 4,132 | ||||||||||||||||
Amortization of terminated hedge | (84 | ) | 0 | 0 | 0 | (84 | ) | ||||||||||||||
Foreign currency translation adjustment | (418 | ) | (418 | ) | 0 | 418 | (418 | ) | |||||||||||||
Other comprehensive income before tax | 3,630 | (418 | ) | 0 | 418 | 3,630 | |||||||||||||||
Income tax expense related to items of other comprehensive income | 1,497 | 0 | 0 | 0 | 1,497 | ||||||||||||||||
Total other comprehensive income, net of tax | 2,133 | (418 | ) | 0 | 418 | 2,133 | |||||||||||||||
Comprehensive income | 176,432 | 181,099 | 89,920 | (250,995 | ) | 196,456 | |||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 20,024 | 0 | 20,024 | ||||||||||||||||
Comprehensive income attributable to UHS | $ | 176,432 | $ | 181,099 | $ | 69,896 | $ | (250,995 | ) | $ | 176,432 | ||||||||||
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Net income | $ | 138,078 | $ | 146,660 | $ | 68,867 | $ | (201,753 | ) | $ | 151,852 | ||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||
Unrealized derivative gains on cash flow hedges | 3,745 | 0 | 0 | 0 | 3,745 | ||||||||||||||||
Amortization of terminated hedge | (84 | ) | 0 | 0 | 0 | (84 | ) | ||||||||||||||
Other comprehensive income before tax | 3,661 | 0 | 0 | 0 | 3,661 | ||||||||||||||||
Income tax expense related to items of other comprehensive income | 1,354 | 0 | 0 | 0 | 1,354 | ||||||||||||||||
Total other comprehensive income, net of tax | 2,307 | 0 | 0 | 0 | 2,307 | ||||||||||||||||
Comprehensive income | 140,385 | 146,660 | 68,867 | (201,753 | ) | 154,159 | |||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 13,774 | 0 | 13,774 | ||||||||||||||||
Comprehensive income attributable to UHS | $ | 140,385 | $ | 146,660 | $ | 55,093 | $ | (201,753 | ) | $ | 140,385 | ||||||||||
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
AS OF MARCH 31, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 0 | $ | 15,518 | $ | 19,560 | $ | 0 | $ | 35,078 | |||||||||||
Accounts receivable, net | 0 | 992,008 | 391,956 | 0 | 1,383,964 | ||||||||||||||||
Supplies | 0 | 67,246 | 41,023 | 0 | 108,269 | ||||||||||||||||
Deferred income taxes | 108,654 | 748 | 0 | 0 | 109,402 | ||||||||||||||||
Other current assets | 0 | 66,039 | 14,485 | 0 | 80,524 | ||||||||||||||||
Total current assets | 108,654 | 1,141,559 | 467,024 | 0 | 1,717,237 | ||||||||||||||||
Investments in subsidiaries | 7,205,020 | 1,720,811 | 0 | (8,925,831 | ) | 0 | |||||||||||||||
Intercompany receivable | 14,763 | 0 | 452,172 | (466,935 | ) | 0 | |||||||||||||||
Intercompany note receivable | 0 | 0 | 1,222,637 | (1,222,637 | ) | 0 | |||||||||||||||
Property and equipment | 0 | 4,544,670 | 1,756,740 | 0 | 6,301,410 | ||||||||||||||||
Less: accumulated depreciation | 0 | (1,741,915 | ) | (868,715 | ) | 0 | (2,610,630 | ) | |||||||||||||
0 | 2,802,755 | 888,025 | 0 | 3,690,780 | |||||||||||||||||
Other assets: | |||||||||||||||||||||
Goodwill | 0 | 2,770,705 | 526,731 | 0 | 3,297,436 | ||||||||||||||||
Deferred charges | 30,661 | 5,463 | 2,637 | 0 | 38,761 | ||||||||||||||||
Other | 9,028 | 278,743 | 52,370 | 0 | 340,141 | ||||||||||||||||
$ | 7,368,126 | $ | 8,720,036 | $ | 3,611,596 | $ | (10,615,403 | ) | $ | 9,084,355 | |||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Current maturities of long-term debt | $ | 65,674 | $ | 1,215 | $ | 22,134 | $ | 0 | $ | 89,023 | |||||||||||
Accounts payable and accrued liabilities | 17,230 | 1,024,897 | 59,016 | 0 | 1,101,143 | ||||||||||||||||
Federal and state taxes | 65,106 | 0 | 0 | 0 | 65,106 | ||||||||||||||||
Total current liabilities | 148,010 | 1,026,112 | 81,150 | 0 | 1,255,272 | ||||||||||||||||
Intercompany payable | 0 | 466,935 | 0 | (466,935 | ) | 0 | |||||||||||||||
Other noncurrent liabilities | 1,354 | 193,215 | 83,048 | 0 | 277,617 | ||||||||||||||||
Long-term debt | 3,031,137 | 17,696 | 2,738 | 0 | 3,051,571 | ||||||||||||||||
Intercompany note payable | 0 | 1,222,637 | 0 | (1,222,637 | ) | 0 | |||||||||||||||
Deferred income taxes | 280,662 | 0 | 0 | 0 | 280,662 | ||||||||||||||||
Redeemable noncontrolling interests | 0 | 0 | 254,843 | 0 | 254,843 | ||||||||||||||||
UHS common stockholders’ equity | 3,906,963 | 5,793,441 | 3,132,390 | (8,925,831 | ) | 3,906,963 | |||||||||||||||
Noncontrolling interest | 0 | 0 | 57,427 | 0 | 57,427 | ||||||||||||||||
Total equity | 3,906,963 | 5,793,441 | 3,189,817 | (8,925,831 | ) | 3,964,390 | |||||||||||||||
$ | 7,368,126 | $ | 8,720,036 | $ | 3,611,596 | $ | (10,615,403 | ) | $ | 9,084,355 | |||||||||||
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
AS OF DECEMBER 31, 2014 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 0 | $ | 21,784 | $ | 10,285 | $ | 0 | $ | 32,069 | |||||||||||
Accounts receivable, net | 0 | 933,971 | 348,764 | 0 | 1,282,735 | ||||||||||||||||
Supplies | 0 | 67,847 | 40,268 | 0 | 108,115 | ||||||||||||||||
Deferred income taxes | 113,822 | 743 | 0 | 0 | 114,565 | ||||||||||||||||
Other current assets | 0 | 62,431 | 15,223 | 0 | 77,654 | ||||||||||||||||
Total current assets | 113,822 | 1,086,776 | 414,540 | 0 | 1,615,138 | ||||||||||||||||
Investments in subsidiaries | 7,013,540 | 1,661,296 | 0 | (8,674,836 | ) | 0 | |||||||||||||||
Intercompany receivable | 103,808 | 0 | 408,682 | (512,490 | ) | 0 | |||||||||||||||
Intercompany note receivable | 0 | 0 | 1,222,637 | (1,222,637 | ) | 0 | |||||||||||||||
Property and equipment | 0 | 4,494,567 | 1,717,463 | 0 | 6,212,030 | ||||||||||||||||
Less: accumulated depreciation | 0 | (1,686,192 | ) | (846,149 | ) | 0 | (2,532,341 | ) | |||||||||||||
0 | 2,808,375 | 871,314 | 0 | 3,679,689 | |||||||||||||||||
Other assets: | |||||||||||||||||||||
Goodwill | 0 | 2,764,555 | 526,658 | 0 | 3,291,213 | ||||||||||||||||
Deferred charges | 32,379 | 5,402 | 2,538 | 0 | 40,319 | ||||||||||||||||
Other | 9,601 | 283,302 | 55,181 | 0 | 348,084 | ||||||||||||||||
$ | 7,273,150 | $ | 8,609,706 | $ | 3,501,550 | $ | (10,409,963 | ) | $ | 8,974,443 | |||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Current maturities of long-term debt | $ | 44,874 | 1,260 | 22,185 | 0 | $ | 68,319 | ||||||||||||||
Accounts payable and accrued liabilities | 20,245 | 1,051,309 | 41,508 | 0 | 1,113,062 | ||||||||||||||||
Federal and state taxes | 1,446 | 0 | 0 | 0 | 1,446 | ||||||||||||||||
Total current liabilities | 66,565 | 1,052,569 | 63,693 | 0 | 1,182,827 | ||||||||||||||||
Intercompany payable | 0 | 512,490 | 0 | (512,490 | ) | 0 | |||||||||||||||
Other noncurrent liabilities | 1,322 | 189,456 | 77,777 | 0 | 268,555 | ||||||||||||||||
Long-term debt | 3,187,103 | 20,212 | 2,900 | 0 | 3,210,215 | ||||||||||||||||
Intercompany note payable | 0 | 1,222,637 | 0 | (1,222,637 | ) | 0 | |||||||||||||||
Deferred income taxes | 282,214 | 0 | 0 | 0 | 282,214 | ||||||||||||||||
Redeemable noncontrolling interests | 0 | 0 | 239,552 | 0 | 239,552 | ||||||||||||||||
UHS common stockholders’ equity | 3,735,946 | 5,612,342 | 3,062,494 | (8,674,836 | ) | 3,735,946 | |||||||||||||||
Noncontrolling interest | 0 | 0 | 55,134 | 0 | 55,134 | ||||||||||||||||
Total equity | 3,735,946 | 5,612,342 | 3,117,628 | (8,674,836 | ) | 3,791,080 | |||||||||||||||
$ | 7,273,150 | $ | 8,609,706 | $ | 3,501,550 | $ | (10,409,963 | ) | $ | 8,974,443 | |||||||||||
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Net cash provided by operating activities | $ | 62,343 | 124,046 | 84,886 | $ | 0 | $ | 271,275 | |||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||
Property and equipment additions, net of disposals | 0 | (59,217 | ) | (30,059 | ) | 0 | (89,276 | ) | |||||||||||||
Acquisition of property and businesses | 0 | (22,513 | ) | (11,987 | ) | 0 | (34,500 | ) | |||||||||||||
Net cash used in investing activities | 0 | (81,730 | ) | (42,046 | ) | 0 | (123,776 | ) | |||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Reduction of long-term debt | (156,097 | ) | (2,561 | ) | (213 | ) | 0 | (158,871 | ) | ||||||||||||
Additional borrowings | 20,800 | 0 | 0 | 0 | 20,800 | ||||||||||||||||
Repurchase of common shares | (28,767 | ) | 0 | 0 | 0 | (28,767 | ) | ||||||||||||||
Dividends paid | (9,899 | ) | 0 | 0 | 0 | (9,899 | ) | ||||||||||||||
Issuance of common stock | 1,768 | 0 | 0 | 0 | 1,768 | ||||||||||||||||
Excess income tax benefits related to stock-based compensation | 20,807 | 0 | 0 | 0 | 20,807 | ||||||||||||||||
Profit distributions to noncontrolling interests | 0 | 0 | (2,413 | ) | 0 | (2,413 | ) | ||||||||||||||
Proceeds received from sale/leaseback of real property | 0 | 0 | 12,551 | 0 | 12,551 | ||||||||||||||||
Changes in intercompany balances with affiliates, net | 89,045 | (45,555 | ) | (43,490 | ) | 0 | 0 | ||||||||||||||
Net cash used in financing activities | (62,343 | ) | (48,116 | ) | (33,565 | ) | 0 | (144,024 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | (466 | ) | 0 | 0 | (466 | ) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 0 | (6,266 | ) | 9,275 | 0 | 3,009 | |||||||||||||||
Cash and cash equivalents, beginning of period | 0 | 21,784 | 10,285 | 0 | 32,069 | ||||||||||||||||
Cash and cash equivalents, end of period | $ | 0 | $ | 15,518 | $ | 19,560 | $ | 0 | $ | 35,078 | |||||||||||
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Net cash provided by operating activities | $ | 70,888 | 51,661 | 72,090 | $ | 0 | $ | 194,639 | |||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||
Property and equipment additions, net of disposals | 0 | (70,385 | ) | (22,002 | ) | 0 | (92,387 | ) | |||||||||||||
Proceeds received from sale of assets and businesses | 0 | 11,450 | 0 | 0 | 11,450 | ||||||||||||||||
Acquisition of property and businesses | 0 | 0 | (3,301 | ) | (3,301 | ) | |||||||||||||||
Costs incurred for purchase and implementation of electronic health records application | 0 | (6,504 | ) | 0 | 0 | (6,504 | ) | ||||||||||||||
Net cash used in investing activities | 0 | (65,439 | ) | (25,303 | ) | 0 | (90,742 | ) | |||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Reduction of long-term debt | (97,975 | ) | (228 | ) | (10,851 | ) | 0 | (109,054 | ) | ||||||||||||
Additional borrowings | 11,900 | 0 | 0 | 0 | 11,900 | ||||||||||||||||
Repurchase of common shares | (13,993 | ) | 0 | 0 | 0 | (13,993 | ) | ||||||||||||||
Dividends paid | (4,933 | ) | 0 | 0 | 0 | (4,933 | ) | ||||||||||||||
Issuance of common stock | 1,445 | 0 | 0 | 0 | 1,445 | ||||||||||||||||
Excess income tax benefits related to stock-based compensation | 11,750 | 0 | 0 | 0 | 11,750 | ||||||||||||||||
Profit distributions to noncontrolling interests | 0 | 0 | (1,989 | ) | 0 | (1,989 | ) | ||||||||||||||
Changes in intercompany balances with affiliates, net | 20,918 | 13,735 | (34,653 | ) | 0 | 0 | |||||||||||||||
Net cash (used in) provided by financing activities | (70,888 | ) | 13,507 | (47,493 | ) | 0 | (104,874 | ) | |||||||||||||
Decrease in cash and cash equivalents | 0 | (271 | ) | (706 | ) | 0 | (977 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | 0 | 7,990 | 9,248 | 0 | 17,238 | ||||||||||||||||
Cash and cash equivalents, end of period | $ | 0 | $ | 7,719 | $ | 8,542 | $ | 0 | $ | 16,261 | |||||||||||
Recent_Accounting_Standards
Recent Accounting Standards | 3 Months Ended |
Mar. 31, 2015 | |
Recent Accounting Standards | (12) Recent Accounting Standards |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers”, which provides guidance for revenue recognition. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosures. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. We are currently in the process of evaluating the impact of adoption of this ASU on our consolidated financial statements. | |
In August 2014, FASB issued ASU No. 2014-15, “Preparation of Financial Statements—Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (ASU 2014-15). Continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, “Presentation of Financial Statements—Liquidation Basis of Accounting”. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the new criteria in ASU 2014-15 should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. We will evaluate the going concern considerations in this ASU. | |
In April 2015, the FASB issued an update to the accounting standard relating to the presentation of debt issuance costs. Under the new guidance, debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability. This amendment becomes effective for annual periods beginning on or after December 15, 2015, and interim periods beginning on or after December 15, 2015; however, early adoption is permitted. We do not expect the adoption of this guidance to have a material impact on our condensed consolidated financial statements. | |
In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis, which amends the consolidation requirements in Accounting Standards Codification (“ASC”) 810, Consolidation. ASU 2015-02 makes targeted amendments to the current consolidation guidance, which could change consolidation conclusions. This guidance will be effective for us beginning in our first quarter of 2016 and early adoption is permitted. We do not expect the adoption of this guidance to have a material impact on our condensed consolidated financial statements. |
General_Policies
General (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Provider Taxes | Provider Taxes: We incur health-care related taxes (“Provider Taxes”) imposed by states in the form of a licensing fee, assessment or other mandatory payment which are related to: (i) healthcare items or services; (ii) the provision of, or the authority to provide, the health care items or services, or; (iii) the payment for the health care items or services. Such Provider Taxes are subject to various federal regulations that limit the scope and amount of the taxes that can be levied by states in order to secure federal matching funds as part of their respective state Medicaid programs. We derive a related Medicaid reimbursement benefit from assessed Provider Taxes in the form of Medicaid claims based payment increases and/or lump sum Medicaid supplemental payments. |
Under these programs, including the impact of Uncompensated Care and Upper Payment Limit programs, and the Texas Delivery System Reform Incentive program, we earned revenues (before Provider Taxes) of approximately $66 million and $49 million during the three-month periods ended March 31, 2015 and 2014, respectively. These revenues were offset by Provider Taxes of $28 million and $18 million during the three-month periods ended March 31, 2015 and 2014, respectively, which are recorded in other operating expenses on the Condensed Consolidated Statements of Income as included herein. Prior to 2015, these Provider Taxes were recorded as a reduction to our net revenues. Accordingly, the unaudited Condensed Consolidated Statement of Income for the three-month period ended March 31, 2014 has been revised to reflect the current period classification, resulting in an increase in net revenue and an increase in other operating expenses of $18 million. We assessed this adjustment to the classification and concluded that it was not material to our previously issued annual and quarterly Consolidated Statements of Income, which will be revised in future filings. |
Relationship_with_Universal_He1
Relationship with Universal Health Realty Income Trust and Related Party Transactions (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Remaining Renewal Options and Terms for Each of Three Hospital Facilities Leased from Trust | The table below details the renewal options and terms for each of our three acute care hospital facilities leased from the Trust as of March 31, 2015: | ||||||||||||
Hospital Name | Annual | End of Lease Term | Renewal | ||||||||||
Minimum | Term | ||||||||||||
Rent | (years) | ||||||||||||
McAllen Medical Center | $ | 5,485,000 | December, 2016 | 15 | (a) | ||||||||
Wellington Regional Medical Center | $ | 3,030,000 | December, 2016 | 15 | (b) | ||||||||
Southwest Healthcare System, Inland Valley Campus | $ | 2,648,000 | December, 2016 | 15 | (b) | ||||||||
(a) | We have three 5-year renewal options at existing lease rates (through 2031). | ||||||||||||
(b) | We have one 5-year renewal option at existing lease rates (through 2021) and two 5-year renewal options at fair market value lease rates (2022 through 2031). |
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment Reporting | |||||||||||||||||
Three months ended March 31, 2015 | |||||||||||||||||
Acute Care | Behavioral | ||||||||||||||||
Hospital | Health | Total | |||||||||||||||
Services | Services | Other | Consolidated | ||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Gross inpatient revenues | $ | 4,328,767 | $ | 1,823,425 | — | $ | 6,152,192 | ||||||||||
Gross outpatient revenues | $ | 2,284,712 | $ | 204,569 | $ | 7,827 | $ | 2,497,108 | |||||||||
Total net revenues | $ | 1,145,940 | $ | 1,076,345 | $ | 3,068 | $ | 2,225,353 | |||||||||
Income/(loss) before allocation of corporate overhead and income taxes | $ | 155,200 | $ | 253,442 | ($ | 111,625 | ) | $ | 297,017 | ||||||||
Allocation of corporate overhead | ($ | 49,426 | ) | ($ | 29,666 | ) | $ | 79,092 | 0 | ||||||||
Income/(loss) after allocation of corporate overhead and before income taxes | $ | 105,774 | $ | 223,776 | ($ | 32,533 | ) | $ | 297,017 | ||||||||
Total assets as of 3/31/15 | $ | 3,431,688 | $ | 5,315,270 | $ | 337,397 | $ | 9,084,355 | |||||||||
Three months ended March 31, 2014 | |||||||||||||||||
Acute Care | Behavioral | ||||||||||||||||
Hospital | Health | Total | |||||||||||||||
Services | Services | Other | Consolidated | ||||||||||||||
(Amounts in thousands) | |||||||||||||||||
Gross inpatient revenues | $ | 3,876,364 | $ | 1,608,899 | — | $ | 5,485,263 | ||||||||||
Gross outpatient revenues | $ | 1,957,491 | $ | 184,115 | $ | 8,514 | $ | 2,150,120 | |||||||||
Total net revenues | $ | 974,647 | $ | 960,347 | $ | 3,320 | $ | 1,938,314 | |||||||||
Income/(loss) before allocation of corporate overhead and income taxes | $ | 111,650 | $ | 221,148 | ($ | 97,015 | ) | $ | 235,783 | ||||||||
Allocation of corporate overhead | ($ | 44,697 | ) | ($ | 26,169 | ) | $ | 70,866 | 0 | ||||||||
Income/(loss) after allocation of corporate overhead and before income taxes | $ | 66,953 | $ | 194,979 | ($ | 26,149 | ) | $ | 235,783 | ||||||||
Total assets as of 3/31/14 | $ | 3,200,203 | $ | 5,004,478 | $ | 226,704 | $ | 8,431,385 |
Earnings_Per_Share_Data_EPS_an1
Earnings Per Share Data ("EPS") and Stock Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data): | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Basic and Diluted: | |||||||||
Net income attributable to UHS | $ | 174,299 | $ | 138,078 | |||||
Less: Net income attributable to unvested restricted share grants | (68 | ) | (70 | ) | |||||
Net income attributable to UHS – basic and diluted | $ | 174,231 | $ | 138,008 | |||||
Weighted average number of common shares - basic | 98,910 | 98,572 | |||||||
Net effect of dilutive stock options and grants based on the treasury stock method | 1,737 | 1,585 | |||||||
Weighted average number of common shares and equivalents - diluted | 100,647 | 100,157 | |||||||
Earnings per basic share attributable to UHS: | $ | 1.76 | $ | 1.4 | |||||
Earnings per diluted share attributable to UHS: | $ | 1.73 | $ | 1.38 | |||||
Supplemental_Condensed_Consoli1
Supplemental Condensed Consolidating Financial Information (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Condensed Consolidating Statements of Income | UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Net revenues before provision for doubtful accounts | $ | 0 | $ | 1,661,612 | $ | 726,080 | $ | (7,591 | ) | $ | 2,380,101 | ||||||||||
Less: Provision for doubtful accounts | 0 | 106,304 | 48,444 | 0 | 154,748 | ||||||||||||||||
Net revenues | 0 | 1,555,308 | 677,636 | (7,591 | ) | 2,225,353 | |||||||||||||||
Operating charges: | |||||||||||||||||||||
Salaries, wages and benefits | 0 | 740,554 | 291,149 | 0 | 1,031,703 | ||||||||||||||||
Other operating expenses | 0 | 351,580 | 161,686 | (7,300 | ) | 505,966 | |||||||||||||||
Supplies expense | 0 | 141,361 | 97,380 | 0 | 238,741 | ||||||||||||||||
Depreciation and amortization | 0 | 69,645 | 29,353 | 0 | 98,998 | ||||||||||||||||
Lease and rental expense | 0 | 13,755 | 9,427 | (291 | ) | 22,891 | |||||||||||||||
0 | 1,316,895 | 588,995 | (7,591 | ) | 1,898,299 | ||||||||||||||||
Income from operations | 0 | 238,413 | 88,641 | 0 | 327,054 | ||||||||||||||||
Interest expense | 28,512 | 1,227 | 298 | 0 | 30,037 | ||||||||||||||||
Interest (income) expense, affiliate | 0 | 23,054 | (23,054 | ) | 0 | 0 | |||||||||||||||
Equity in net income of consolidated affiliates | (191,898 | ) | (59,515 | ) | 0 | 251,413 | 0 | ||||||||||||||
Income before income taxes | 163,386 | 273,647 | 111,397 | (251,413 | ) | 297,017 | |||||||||||||||
Provision for income taxes | (10,913 | ) | 92,130 | 21,477 | 0 | 102,694 | |||||||||||||||
Net income | 174,299 | 181,517 | 89,920 | (251,413 | ) | 194,323 | |||||||||||||||
Less: Income attributable to noncontrolling interests | 0 | 0 | 20,024 | 0 | 20,024 | ||||||||||||||||
Net income attributable to UHS | $ | 174,299 | $ | 181,517 | $ | 69,896 | $ | (251,413 | ) | $ | 174,299 | ||||||||||
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Net revenues before provision for doubtful accounts | $ | 0 | $ | 1,478,459 | $ | 675,196 | $ | (7,157 | ) | $ | 2,146,498 | ||||||||||
Less: Provision for doubtful accounts | 0 | 135,986 | 72,198 | 0 | 208,184 | ||||||||||||||||
Net revenues | 0 | 1,342,473 | 602,998 | (7,157 | ) | 1,938,314 | |||||||||||||||
Operating charges: | |||||||||||||||||||||
Salaries, wages and benefits | 0 | 669,253 | 266,112 | 0 | 935,365 | ||||||||||||||||
Other operating expenses | 0 | 254,715 | 152,134 | (6,941 | ) | 399,908 | |||||||||||||||
Supplies expense | 0 | 131,475 | 84,323 | 0 | 215,798 | ||||||||||||||||
EHR incentive income | 0 | (430 | ) | 0 | 0 | (430 | ) | ||||||||||||||
Depreciation and amortization | 0 | 67,714 | 25,645 | 0 | 93,359 | ||||||||||||||||
Lease and rental expense | 0 | 14,349 | 9,205 | (216 | ) | 23,338 | |||||||||||||||
0 | 1,137,076 | 537,419 | (7,157 | ) | 1,667,338 | ||||||||||||||||
Income from operations | 0 | 205,397 | 65,579 | 0 | 270,976 | ||||||||||||||||
Interest expense | 33,573 | 824 | 796 | 0 | 35,193 | ||||||||||||||||
Interest (income) expense, affiliate | 0 | 22,112 | (22,112 | ) | 0 | 0 | |||||||||||||||
Equity in net income of consolidated affiliates | (158,801 | ) | (42,952 | ) | 0 | 201,753 | 0 | ||||||||||||||
Income before income taxes | 125,228 | 225,413 | 86,895 | (201,753 | ) | 235,783 | |||||||||||||||
Provision for income taxes | (12,850 | ) | 78,753 | 18,028 | 0 | 83,931 | |||||||||||||||
Net income | 138,078 | 146,660 | 68,867 | (201,753 | ) | 151,852 | |||||||||||||||
Less: Income attributable to noncontrolling interests | 0 | 0 | 13,774 | 0 | 13,774 | ||||||||||||||||
Net income attributable to UHS | $ | 138,078 | $ | 146,660 | $ | 55,093 | $ | (201,753 | ) | $ | 138,078 | ||||||||||
Condensed Consolidating Statements of Comprehensive Income | UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Net income | $ | 174,299 | $ | 181,517 | $ | 89,920 | $ | (251,413 | ) | $ | 194,323 | ||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||
Unrealized derivative gains on cash flow hedges | 4,132 | 0 | 0 | 0 | 4,132 | ||||||||||||||||
Amortization of terminated hedge | (84 | ) | 0 | 0 | 0 | (84 | ) | ||||||||||||||
Foreign currency translation adjustment | (418 | ) | (418 | ) | 0 | 418 | (418 | ) | |||||||||||||
Other comprehensive income before tax | 3,630 | (418 | ) | 0 | 418 | 3,630 | |||||||||||||||
Income tax expense related to items of other comprehensive income | 1,497 | 0 | 0 | 0 | 1,497 | ||||||||||||||||
Total other comprehensive income, net of tax | 2,133 | (418 | ) | 0 | 418 | 2,133 | |||||||||||||||
Comprehensive income | 176,432 | 181,099 | 89,920 | (250,995 | ) | 196,456 | |||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 20,024 | 0 | 20,024 | ||||||||||||||||
Comprehensive income attributable to UHS | $ | 176,432 | $ | 181,099 | $ | 69,896 | $ | (250,995 | ) | $ | 176,432 | ||||||||||
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Net income | $ | 138,078 | $ | 146,660 | $ | 68,867 | $ | (201,753 | ) | $ | 151,852 | ||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||
Unrealized derivative gains on cash flow hedges | 3,745 | 0 | 0 | 0 | 3,745 | ||||||||||||||||
Amortization of terminated hedge | (84 | ) | 0 | 0 | 0 | (84 | ) | ||||||||||||||
Other comprehensive income before tax | 3,661 | 0 | 0 | 0 | 3,661 | ||||||||||||||||
Income tax expense related to items of other comprehensive income | 1,354 | 0 | 0 | 0 | 1,354 | ||||||||||||||||
Total other comprehensive income, net of tax | 2,307 | 0 | 0 | 0 | 2,307 | ||||||||||||||||
Comprehensive income | 140,385 | 146,660 | 68,867 | (201,753 | ) | 154,159 | |||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 13,774 | 0 | 13,774 | ||||||||||||||||
Comprehensive income attributable to UHS | $ | 140,385 | $ | 146,660 | $ | 55,093 | $ | (201,753 | ) | $ | 140,385 | ||||||||||
Condensed Consolidating Balance Sheet | UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
AS OF MARCH 31, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 0 | $ | 15,518 | $ | 19,560 | $ | 0 | $ | 35,078 | |||||||||||
Accounts receivable, net | 0 | 992,008 | 391,956 | 0 | 1,383,964 | ||||||||||||||||
Supplies | 0 | 67,246 | 41,023 | 0 | 108,269 | ||||||||||||||||
Deferred income taxes | 108,654 | 748 | 0 | 0 | 109,402 | ||||||||||||||||
Other current assets | 0 | 66,039 | 14,485 | 0 | 80,524 | ||||||||||||||||
Total current assets | 108,654 | 1,141,559 | 467,024 | 0 | 1,717,237 | ||||||||||||||||
Investments in subsidiaries | 7,205,020 | 1,720,811 | 0 | (8,925,831 | ) | 0 | |||||||||||||||
Intercompany receivable | 14,763 | 0 | 452,172 | (466,935 | ) | 0 | |||||||||||||||
Intercompany note receivable | 0 | 0 | 1,222,637 | (1,222,637 | ) | 0 | |||||||||||||||
Property and equipment | 0 | 4,544,670 | 1,756,740 | 0 | 6,301,410 | ||||||||||||||||
Less: accumulated depreciation | 0 | (1,741,915 | ) | (868,715 | ) | 0 | (2,610,630 | ) | |||||||||||||
0 | 2,802,755 | 888,025 | 0 | 3,690,780 | |||||||||||||||||
Other assets: | |||||||||||||||||||||
Goodwill | 0 | 2,770,705 | 526,731 | 0 | 3,297,436 | ||||||||||||||||
Deferred charges | 30,661 | 5,463 | 2,637 | 0 | 38,761 | ||||||||||||||||
Other | 9,028 | 278,743 | 52,370 | 0 | 340,141 | ||||||||||||||||
$ | 7,368,126 | $ | 8,720,036 | $ | 3,611,596 | $ | (10,615,403 | ) | $ | 9,084,355 | |||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Current maturities of long-term debt | $ | 65,674 | $ | 1,215 | $ | 22,134 | $ | 0 | $ | 89,023 | |||||||||||
Accounts payable and accrued liabilities | 17,230 | 1,024,897 | 59,016 | 0 | 1,101,143 | ||||||||||||||||
Federal and state taxes | 65,106 | 0 | 0 | 0 | 65,106 | ||||||||||||||||
Total current liabilities | 148,010 | 1,026,112 | 81,150 | 0 | 1,255,272 | ||||||||||||||||
Intercompany payable | 0 | 466,935 | 0 | (466,935 | ) | 0 | |||||||||||||||
Other noncurrent liabilities | 1,354 | 193,215 | 83,048 | 0 | 277,617 | ||||||||||||||||
Long-term debt | 3,031,137 | 17,696 | 2,738 | 0 | 3,051,571 | ||||||||||||||||
Intercompany note payable | 0 | 1,222,637 | 0 | (1,222,637 | ) | 0 | |||||||||||||||
Deferred income taxes | 280,662 | 0 | 0 | 0 | 280,662 | ||||||||||||||||
Redeemable noncontrolling interests | 0 | 0 | 254,843 | 0 | 254,843 | ||||||||||||||||
UHS common stockholders’ equity | 3,906,963 | 5,793,441 | 3,132,390 | (8,925,831 | ) | 3,906,963 | |||||||||||||||
Noncontrolling interest | 0 | 0 | 57,427 | 0 | 57,427 | ||||||||||||||||
Total equity | 3,906,963 | 5,793,441 | 3,189,817 | (8,925,831 | ) | 3,964,390 | |||||||||||||||
$ | 7,368,126 | $ | 8,720,036 | $ | 3,611,596 | $ | (10,615,403 | ) | $ | 9,084,355 | |||||||||||
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
AS OF DECEMBER 31, 2014 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Assets | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 0 | $ | 21,784 | $ | 10,285 | $ | 0 | $ | 32,069 | |||||||||||
Accounts receivable, net | 0 | 933,971 | 348,764 | 0 | 1,282,735 | ||||||||||||||||
Supplies | 0 | 67,847 | 40,268 | 0 | 108,115 | ||||||||||||||||
Deferred income taxes | 113,822 | 743 | 0 | 0 | 114,565 | ||||||||||||||||
Other current assets | 0 | 62,431 | 15,223 | 0 | 77,654 | ||||||||||||||||
Total current assets | 113,822 | 1,086,776 | 414,540 | 0 | 1,615,138 | ||||||||||||||||
Investments in subsidiaries | 7,013,540 | 1,661,296 | 0 | (8,674,836 | ) | 0 | |||||||||||||||
Intercompany receivable | 103,808 | 0 | 408,682 | (512,490 | ) | 0 | |||||||||||||||
Intercompany note receivable | 0 | 0 | 1,222,637 | (1,222,637 | ) | 0 | |||||||||||||||
Property and equipment | 0 | 4,494,567 | 1,717,463 | 0 | 6,212,030 | ||||||||||||||||
Less: accumulated depreciation | 0 | (1,686,192 | ) | (846,149 | ) | 0 | (2,532,341 | ) | |||||||||||||
0 | 2,808,375 | 871,314 | 0 | 3,679,689 | |||||||||||||||||
Other assets: | |||||||||||||||||||||
Goodwill | 0 | 2,764,555 | 526,658 | 0 | 3,291,213 | ||||||||||||||||
Deferred charges | 32,379 | 5,402 | 2,538 | 0 | 40,319 | ||||||||||||||||
Other | 9,601 | 283,302 | 55,181 | 0 | 348,084 | ||||||||||||||||
$ | 7,273,150 | $ | 8,609,706 | $ | 3,501,550 | $ | (10,409,963 | ) | $ | 8,974,443 | |||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Current maturities of long-term debt | $ | 44,874 | 1,260 | 22,185 | 0 | $ | 68,319 | ||||||||||||||
Accounts payable and accrued liabilities | 20,245 | 1,051,309 | 41,508 | 0 | 1,113,062 | ||||||||||||||||
Federal and state taxes | 1,446 | 0 | 0 | 0 | 1,446 | ||||||||||||||||
Total current liabilities | 66,565 | 1,052,569 | 63,693 | 0 | 1,182,827 | ||||||||||||||||
Intercompany payable | 0 | 512,490 | 0 | (512,490 | ) | 0 | |||||||||||||||
Other noncurrent liabilities | 1,322 | 189,456 | 77,777 | 0 | 268,555 | ||||||||||||||||
Long-term debt | 3,187,103 | 20,212 | 2,900 | 0 | 3,210,215 | ||||||||||||||||
Intercompany note payable | 0 | 1,222,637 | 0 | (1,222,637 | ) | 0 | |||||||||||||||
Deferred income taxes | 282,214 | 0 | 0 | 0 | 282,214 | ||||||||||||||||
Redeemable noncontrolling interests | 0 | 0 | 239,552 | 0 | 239,552 | ||||||||||||||||
UHS common stockholders’ equity | 3,735,946 | 5,612,342 | 3,062,494 | (8,674,836 | ) | 3,735,946 | |||||||||||||||
Noncontrolling interest | 0 | 0 | 55,134 | 0 | 55,134 | ||||||||||||||||
Total equity | 3,735,946 | 5,612,342 | 3,117,628 | (8,674,836 | ) | 3,791,080 | |||||||||||||||
$ | 7,273,150 | $ | 8,609,706 | $ | 3,501,550 | $ | (10,409,963 | ) | $ | 8,974,443 | |||||||||||
Condensed Consolidating Statements of Cash Flows | UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Net cash provided by operating activities | $ | 62,343 | 124,046 | 84,886 | $ | 0 | $ | 271,275 | |||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||
Property and equipment additions, net of disposals | 0 | (59,217 | ) | (30,059 | ) | 0 | (89,276 | ) | |||||||||||||
Acquisition of property and businesses | 0 | (22,513 | ) | (11,987 | ) | 0 | (34,500 | ) | |||||||||||||
Net cash used in investing activities | 0 | (81,730 | ) | (42,046 | ) | 0 | (123,776 | ) | |||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Reduction of long-term debt | (156,097 | ) | (2,561 | ) | (213 | ) | 0 | (158,871 | ) | ||||||||||||
Additional borrowings | 20,800 | 0 | 0 | 0 | 20,800 | ||||||||||||||||
Repurchase of common shares | (28,767 | ) | 0 | 0 | 0 | (28,767 | ) | ||||||||||||||
Dividends paid | (9,899 | ) | 0 | 0 | 0 | (9,899 | ) | ||||||||||||||
Issuance of common stock | 1,768 | 0 | 0 | 0 | 1,768 | ||||||||||||||||
Excess income tax benefits related to stock-based compensation | 20,807 | 0 | 0 | 0 | 20,807 | ||||||||||||||||
Profit distributions to noncontrolling interests | 0 | 0 | (2,413 | ) | 0 | (2,413 | ) | ||||||||||||||
Proceeds received from sale/leaseback of real property | 0 | 0 | 12,551 | 0 | 12,551 | ||||||||||||||||
Changes in intercompany balances with affiliates, net | 89,045 | (45,555 | ) | (43,490 | ) | 0 | 0 | ||||||||||||||
Net cash used in financing activities | (62,343 | ) | (48,116 | ) | (33,565 | ) | 0 | (144,024 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | (466 | ) | 0 | 0 | (466 | ) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 0 | (6,266 | ) | 9,275 | 0 | 3,009 | |||||||||||||||
Cash and cash equivalents, beginning of period | 0 | 21,784 | 10,285 | 0 | 32,069 | ||||||||||||||||
Cash and cash equivalents, end of period | $ | 0 | $ | 15,518 | $ | 19,560 | $ | 0 | $ | 35,078 | |||||||||||
UNIVERSAL HEALTH SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Total | |||||||||||||||||||||
Non | Consolidating | Consolidated | |||||||||||||||||||
Parent | Guarantors | Guarantors | Adjustments | Amounts | |||||||||||||||||
Net cash provided by operating activities | $ | 70,888 | 51,661 | 72,090 | $ | 0 | $ | 194,639 | |||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||
Property and equipment additions, net of disposals | 0 | (70,385 | ) | (22,002 | ) | 0 | (92,387 | ) | |||||||||||||
Proceeds received from sale of assets and businesses | 0 | 11,450 | 0 | 0 | 11,450 | ||||||||||||||||
Acquisition of property and businesses | 0 | 0 | (3,301 | ) | (3,301 | ) | |||||||||||||||
Costs incurred for purchase and implementation of electronic health records application | 0 | (6,504 | ) | 0 | 0 | (6,504 | ) | ||||||||||||||
Net cash used in investing activities | 0 | (65,439 | ) | (25,303 | ) | 0 | (90,742 | ) | |||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Reduction of long-term debt | (97,975 | ) | (228 | ) | (10,851 | ) | 0 | (109,054 | ) | ||||||||||||
Additional borrowings | 11,900 | 0 | 0 | 0 | 11,900 | ||||||||||||||||
Repurchase of common shares | (13,993 | ) | 0 | 0 | 0 | (13,993 | ) | ||||||||||||||
Dividends paid | (4,933 | ) | 0 | 0 | 0 | (4,933 | ) | ||||||||||||||
Issuance of common stock | 1,445 | 0 | 0 | 0 | 1,445 | ||||||||||||||||
Excess income tax benefits related to stock-based compensation | 11,750 | 0 | 0 | 0 | 11,750 | ||||||||||||||||
Profit distributions to noncontrolling interests | 0 | 0 | (1,989 | ) | 0 | (1,989 | ) | ||||||||||||||
Changes in intercompany balances with affiliates, net | 20,918 | 13,735 | (34,653 | ) | 0 | 0 | |||||||||||||||
Net cash (used in) provided by financing activities | (70,888 | ) | 13,507 | (47,493 | ) | 0 | (104,874 | ) | |||||||||||||
Decrease in cash and cash equivalents | 0 | (271 | ) | (706 | ) | 0 | (977 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | 0 | 7,990 | 9,248 | 0 | 17,238 | ||||||||||||||||
Cash and cash equivalents, end of period | $ | 0 | $ | 7,719 | $ | 8,542 | $ | 0 | $ | 16,261 | |||||||||||
General_Detail
General (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Organization And Description Of Business [Line Items] | ||
Revenue from Medicaid programs | $2,380,101,000 | $2,146,498,000 |
Increase (decrease) in net revenue | 18,000,000 | |
Increase (decrease) in other operating expense | 18,000,000 | |
State Medicaid programs | ||
Organization And Description Of Business [Line Items] | ||
Revenue from Medicaid programs | 66,000,000 | 49,000,000 |
Revenue offset amount | $28,000,000 | $18,000,000 |
Relationship_with_Universal_He2
Relationship with Universal Health Realty Income Trust and Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Lease renewal period, years | 5 | ||
Notice period on renewal of lease | 90 | ||
Period of rights of refusal to leased facilities | 180 | ||
Minimum | |||
Related Party Transaction [Line Items] | |||
Lease initial terms | 13 | ||
Maximum | |||
Related Party Transaction [Line Items] | |||
Lease initial terms | 15 | ||
Chief Executive Officer | |||
Related Party Transaction [Line Items] | |||
Estimated payments to acquire life insurance policies | $25,000,000 | ||
Payments to acquire life insurance policies | 1,300,000 | ||
Chief Executive Officer | Trust Owned by Chief Executive Officer | |||
Related Party Transaction [Line Items] | |||
Estimated payments to acquire life insurance policies | 8,000,000 | ||
Chief Executive Officer | Minimum | |||
Related Party Transaction [Line Items] | |||
Estimated death benefit proceeds | 33,000,000 | ||
Relationship with Universal Health Realty Income Trust | |||
Related Party Transaction [Line Items] | |||
Trust outstanding shares held, percentage | 5.90% | ||
Advisory fee earned | 700,000 | 600,000 | |
Pre-tax share of income from the Trust | 200,000 | 300,000 | |
Carrying value of investment in Trust | 9,000,000 | 9,300,000 | |
Market value of investment in Trust | 44,300,000 | 37,900,000 | |
Aggregate construction cost/sales proceeds | 13,000,000 | ||
Aggregate rent expense paid | 900,000 | 1,100,000 | |
Estimated purchase price of The Bridgeway's real property | 17,300,000 | ||
Rent expense under operating leases | $4,000,000 | $4,000,000 | |
Non-controlling ownership interests by subsidiaries | 100.00% | ||
Relationship with Universal Health Realty Income Trust | Texas | |||
Related Party Transaction [Line Items] | |||
Number of free-standing emergency departments to be acquired | 2 |
Remaining_Renewal_Options_and_
Remaining Renewal Options and Terms for Hospital Facilities Leased from Trust (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | ||
McAllen Medical Center | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Annual Minimum Rent | $5,485,000 | |
End of Lease Term | 2016-12 | |
Renewal Term (years) | 15 years | [1] |
Wellington Regional Medical Center | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Annual Minimum Rent | 3,030,000 | |
End of Lease Term | 2016-12 | |
Renewal Term (years) | 15 years | [2] |
Southwest Healthcare System, Inland Valley Campus | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Annual Minimum Rent | $2,648,000 | |
End of Lease Term | 2016-12 | |
Renewal Term (years) | 15 years | [2] |
[1] | We have three 5-year renewal options at existing lease rates (through 2031). | |
[2] | We have one 5-year renewal option at existing lease rates (through 2021) and two 5-year renewal options at fair market value lease rates (2022 through 2031). |
Remaining_Renewal_Options_and_1
Remaining Renewal Options and Terms for Hospital Facilities Leased from Trust (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
RenewalOptions | |
McAllen Medical Center | |
Property Subject to or Available for Operating Lease [Line Items] | |
Number of renewal options at existing lease rates | 3 |
Renewal options term at existing lease rates | 5 years |
Wellington Regional Medical Center | |
Property Subject to or Available for Operating Lease [Line Items] | |
Number of renewal options at existing lease rates | 1 |
Renewal options term at existing lease rates | 5 years |
Number of renewal options at fair market lease rates | 2 |
Renewal options term at fair market lease rates | 5 years |
Southwest Healthcare System, Inland Valley Campus | |
Property Subject to or Available for Operating Lease [Line Items] | |
Number of renewal options at existing lease rates | 1 |
Renewal options term at existing lease rates | 5 years |
Number of renewal options at fair market lease rates | 2 |
Renewal options term at fair market lease rates | 5 years |
Maximum | McAllen Medical Center | |
Property Subject to or Available for Operating Lease [Line Items] | |
Renewal options at existing lease rates expiration year | 2031 |
Maximum | Wellington Regional Medical Center | |
Property Subject to or Available for Operating Lease [Line Items] | |
Renewal options at existing lease rates expiration year | 2021 |
Renewal options at fair market value lease rates expiration year | 2031 |
Maximum | Southwest Healthcare System, Inland Valley Campus | |
Property Subject to or Available for Operating Lease [Line Items] | |
Renewal options at existing lease rates expiration year | 2021 |
Renewal options at fair market value lease rates expiration year | 2031 |
Minimum | Wellington Regional Medical Center | |
Property Subject to or Available for Operating Lease [Line Items] | |
Renewal options at fair market value lease rates expiration year | 2022 |
Minimum | Southwest Healthcare System, Inland Valley Campus | |
Property Subject to or Available for Operating Lease [Line Items] | |
Renewal options at fair market value lease rates expiration year | 2022 |
Recovered_Sheet1
Other Noncurrent Liabilities and Redeemable/Noncontrolling Interests - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Noncontrolling Interest [Line Items] | ||
Redeemable non-controlling interest balances | $255 | $240 |
Non-controlling interest balances | $57 | $55 |
Acute Care Hospital Services | Las Vegas, Nevada | ||
Noncontrolling Interest [Line Items] | ||
Percentage of noncontrolling, minority ownership interests held by outside owners | 28.00% | |
Acute care facilities with outside owners holding non-controlling minority interest | 5 | |
Acute Care Hospital Services | Washington, District of Columbia | ||
Noncontrolling Interest [Line Items] | ||
Percentage of noncontrolling, minority ownership interests held by outside owners | 20.00% | |
Acute Care Hospital Services | Laredo, Texas | ||
Noncontrolling Interest [Line Items] | ||
Percentage of noncontrolling, minority ownership interests held by outside owners | 11.00% | |
Behavioral Health Services | Philadelphia, Pennsylvania | ||
Noncontrolling Interest [Line Items] | ||
Percentage of noncontrolling, minority ownership interests held by outside owners | 20.00% |
Longterm_debt_and_cash_flow_he1
Long-term debt and cash flow hedges - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2014 | Aug. 07, 2014 | Aug. 30, 2014 | Aug. 01, 2014 | Jul. 31, 2014 | Oct. 31, 2013 | Jun. 30, 2008 | Jun. 30, 2006 | |
Derivative | Derivative | |||||||||||
Debt Instrument [Line Items] | ||||||||||||
Reduction of long-term debt | $158,871,000 | $109,054,000 | ||||||||||
Rate adjustment to weighted average federal funds rate for credit facility borrowings | 0.50% | |||||||||||
Rate adjustment to one month Eurodollar rate on credit facility borrowings | 1.00% | |||||||||||
Accounts receivable securitization program credit facility, amount outstanding | 325,000,000 | |||||||||||
Long-term debt | 3,051,571,000 | 3,210,215,000 | ||||||||||
Fair value of debt | 3,200,000,000 | |||||||||||
Number of additional forward starting interest rate swaps | 6 | 4 | ||||||||||
Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, borrowing capacity | 800,000,000 | |||||||||||
Line of credit facility amount outstanding | 0 | |||||||||||
Current applicable margins | 1.50% | |||||||||||
Line of credit facility, available borrowing capacity | 739,000,000 | |||||||||||
Letters of credit, outstanding | 40,000,000 | |||||||||||
Term Loan A | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Current applicable margins | 1.50% | |||||||||||
Term Loan A | Quarterly installment payments commence in the fourth quarter of 2014 through September, 2016 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Scheduled principal payments made | 11,000,000 | |||||||||||
Term Loan A | Quarterly installment payments after September, 2016 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Scheduled principal payments made | 22,000,000 | |||||||||||
Term Loan B Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Reduction of long-term debt | 550,000,000 | |||||||||||
Line of credit facility, maturity year | 2016 | |||||||||||
New Senior Secured Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior notes, repayment terms | Interest is payable on the New Senior Secured Notes on February 1 and August 1 of each year | |||||||||||
Senior notes, interest payment, commencement date | 1-Feb-15 | |||||||||||
One Point Nine One Percent Forward Starting Interest Rate Swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Average fixed rate payable on interest rate swap | 1.91% | |||||||||||
Two Point Five Zero Percent Forward Starting Interest Rate Swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of interest rate cash flow hedges | 1-Dec-14 | |||||||||||
Fixed rate payable on interest rate swap | 2.50% | |||||||||||
One Point Nine Six Percent Forward Starting Interest Rate Swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of interest rate cash flow hedges | 1-Dec-13 | |||||||||||
One Point Three Two Percent Forward Starting Interest Rate Swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of interest rate cash flow hedges | 1-Dec-12 | |||||||||||
Two Point Three Eight Percent Forward Starting Interest Rate Swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of interest rate cash flow hedges | 1-May-15 | |||||||||||
Fixed rate payable on interest rate swap | 2.38% | |||||||||||
Interest Rate Swap | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fair value of our interest rate swaps, liability | 2,000,000 | 6,000,000 | ||||||||||
Cash Flow Hedging | Forward Starting Interest Rate Swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notional amount of interest rate cash flow hedges | 425,000,000 | |||||||||||
Cash Flow Hedging | One Point Nine One Percent Forward Starting Interest Rate Swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notional amount of interest rate cash flow hedges | 225,000,000 | |||||||||||
Cash Flow Hedging | Two Point Five Zero Percent Forward Starting Interest Rate Swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notional amount of interest rate cash flow hedges | 100,000,000 | |||||||||||
Cash Flow Hedging | One Point Nine Six Percent Forward Starting Interest Rate Swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notional amount of interest rate cash flow hedges | 25,000,000 | |||||||||||
Cash Flow Hedging | One Point Three Two Percent Forward Starting Interest Rate Swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notional amount of interest rate cash flow hedges | 75,000,000 | |||||||||||
Cash Flow Hedging | Two Point Three Eight Percent Forward Starting Interest Rate Swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notional amount of interest rate cash flow hedges | 600,000,000 | |||||||||||
One Month Eurodollar Rate Plus Index Based Loans | Minimum | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio | 0.50% | |||||||||||
One Month Eurodollar Rate Plus Index Based Loans | Minimum | Term Loan A | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio | 0.50% | |||||||||||
One Month Eurodollar Rate Plus Index Based Loans | Maximum | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio | 1.25% | |||||||||||
One Month Eurodollar Rate Plus Index Based Loans | Maximum | Term Loan A | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio | 1.25% | |||||||||||
One Two Three Six Month Eurodollar Rate Plus Index Based Loans | Minimum | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio | 1.50% | |||||||||||
One Two Three Six Month Eurodollar Rate Plus Index Based Loans | Minimum | Term Loan A | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio | 1.50% | |||||||||||
One Two Three Six Month Eurodollar Rate Plus Index Based Loans | Maximum | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio | 2.25% | |||||||||||
One Two Three Six Month Eurodollar Rate Plus Index Based Loans | Maximum | Term Loan A | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio | 2.25% | |||||||||||
ABR-based loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Current applicable margins | 0.50% | |||||||||||
Short Term on Demand Credit Facility | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility amount outstanding | 21,000,000 | |||||||||||
Letter of Credit | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, borrowing capacity | 125,000,000 | |||||||||||
Amendment of Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, starting date | 7-Aug-14 | |||||||||||
Line of credit facility, maturity | 2019-08 | |||||||||||
Accounts receivable securitization program credit facility, borrowing capacity | 360,000,000 | 275,000,000 | ||||||||||
Amendment of Credit Facility | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, borrowing capacity | 800,000,000 | |||||||||||
Amendment of Credit Facility | Term Loan A | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, borrowing capacity | 1,775,000,000 | |||||||||||
Line of credit facility amount outstanding | 1,753,000,000 | |||||||||||
Accounts Receivable Securitization Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Accounts receivable securitization program, additional capacity | 35,000,000 | |||||||||||
Accounts Receivable Securitization Facility | Amendment of Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, starting date | 1-Aug-14 | |||||||||||
Line of credit facility, maturity | 2016-10 | |||||||||||
3.750% Senior Secured Notes due 2019 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior notes, issued | 300,000,000 | |||||||||||
Senior notes, interest rate | 3.75% | |||||||||||
3.750% Senior Secured Notes due 2019 | New Senior Secured Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior notes, issued | 300,000,000 | |||||||||||
Senior notes, interest rate | 3.75% | |||||||||||
Senior notes, maturity date | 1-Aug-19 | |||||||||||
4.750% Senior Secured Notes due 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior notes, issued | 300,000,000 | |||||||||||
Senior notes, interest rate | 4.75% | |||||||||||
4.750% Senior Secured Notes due 2022 | New Senior Secured Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior notes, issued | 300,000,000 | |||||||||||
Senior notes, interest rate | 4.75% | |||||||||||
Senior notes, maturity date | 1-Aug-22 | |||||||||||
Senior Notes 7.125% | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Senior notes, issued | 250,000,000 | |||||||||||
Senior notes, interest rate | 7.13% | |||||||||||
Senior notes, repayment terms | Interest on the 7.125% Notes is payable semiannually in arrears on June 30th and December 30th of each year. | |||||||||||
Senior notes, maturity date | 30-Jun-16 | |||||||||||
Line of credit facility additional borrowing capacity | 150,000,000 | |||||||||||
7.00% Senior Unsecured Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Reduction of long-term debt | 250,000,000 | |||||||||||
Senior notes, interest rate | 7.00% | |||||||||||
Debt instrument redemption, date | 31-Jul-14 | 31-Jul-14 | ||||||||||
Unsecured notes make-whole redemption price | 104.56% | |||||||||||
Senior notes, maturity date | 1-Oct-18 | |||||||||||
Write-off deferred charges, original issue discount and make-whole premiums paid | $11,000,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Nov. 30, 2010 | Mar. 31, 2015 | Nov. 30, 2010 | Nov. 30, 2010 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Nov. 30, 2010 | Nov. 30, 2010 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2013 | Mar. 31, 2015 | Mar. 31, 2015 | Oct. 31, 2012 | Mar. 31, 2015 | Mar. 31, 2015 | |
USD ($) | USD ($) | Letters of Credit and Surety Bonds | Cygnet Health Care Limited | Cygnet Health Care Limited | Professional Liability | General Liability | Location 2 | Location 1 | Illinois | Illinois | Illinois | Illinois | Wind Storms | Wind Storms | Earthquake | Earthquake | Earthquake | Earthquake | Earthquake | Flood | Flood | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | Psychiatric Solutions Inc | Behavioral Health Facilities Acquired from Ascend Health Corporation | Self Insurance Programs | Other Debt Guarantees | |
USD ($) | Facility | GBP (£) | Cygnet Health Care Limited | Cygnet Health Care Limited | USD ($) | USD ($) | USD ($) | USD ($) | Uncompensated Care Program Revenues | Disproportionate Share Hospital Program Revenues | Maximum | Minimum | USD ($) | Maximum | UNITED STATES | UNITED STATES | PUERTO RICO | Location 2 | Location 1 | Professional Liability | General Liability | General and Professional Liability Insurance Policies | General and Professional Liability Insurance Policies | General and Professional Liability Insurance Policies | General and Professional Liability Insurance Policies | General and Professional Liability Insurance Policies | General and Professional Liability Insurance Policies | Letters of Credit and Surety Bonds | Letters of Credit and Surety Bonds | |||
Patient | GBP (£) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | Maximum | Minimum | USD ($) | USD ($) | USD ($) | Maximum | Maximum | Maximum | Maximum | Minimum | Maximum | USD ($) | USD ($) | USD ($) | ||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||||||||||||||||||||||||||
Self-insured for professional and general liability | $190,000,000 | $193,000,000 | £ 10,000,000 | £ 25,000,000 | $10,000,000 | $3,000,000 | $3,000,000 | $12,000,000 | ||||||||||||||||||||||||
Purchased several excess policies through commercial insurance carriers per occurrence | 250,000,000 | 200,000,000 | ||||||||||||||||||||||||||||||
Percentage of liability for claims paid under commercially insured coverage | 10.00% | |||||||||||||||||||||||||||||||
Liability for claims paid under commercially insured coverage | 60,000,000 | 10,000,000 | ||||||||||||||||||||||||||||||
Minimum Insurance Deductible | 250,000 | 50,000 | 250,000 | 100,000 | ||||||||||||||||||||||||||||
Number of patients | 15 | |||||||||||||||||||||||||||||||
Number of facilities | 17 | |||||||||||||||||||||||||||||||
Number of nursing homes | 2 | |||||||||||||||||||||||||||||||
Self-insured for professional and general liability, current | 51,000,000 | 51,000,000 | ||||||||||||||||||||||||||||||
Compensation liability claims | 66,000,000 | 67,000,000 | ||||||||||||||||||||||||||||||
Compensation and related benefits | 32,000,000 | 32,000,000 | ||||||||||||||||||||||||||||||
Commercial property insurance policies covering catastrophic losses | 1,000,000,000 | 250,000,000 | 100,000,000 | 25,000,000 | ||||||||||||||||||||||||||||
Percentage of insurance deductible | 5.00% | 3.00% | 5.00% | 1.00% | ||||||||||||||||||||||||||||
Maximum insurance deductible | 25,000 | 250,000 | 500,000 | |||||||||||||||||||||||||||||
Property insurance | 180,000,000 | |||||||||||||||||||||||||||||||
Accounts receivable, net | 1,383,964,000 | 1,282,735,000 | 42,000,000 | 44,000,000 | ||||||||||||||||||||||||||||
Accounts receivable net greater than sixty days Past due | 22,000,000 | 23,000,000 | ||||||||||||||||||||||||||||||
Accounts receivable | 105,000,000 | 102,000,000 | 61,000,000 | 44,000,000 | ||||||||||||||||||||||||||||
Off-balance sheet contingent obligation | $114,000,000 | $93,000,000 | $21,000,000 | |||||||||||||||||||||||||||||
Payment suspension period increased | 180 days |
Segment_Reporting_Detail
Segment Reporting (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Gross inpatient revenues | $6,152,192 | $5,485,263 | |
Gross outpatient revenues | 2,497,108 | 2,150,120 | |
Total net revenues | 2,225,353 | 1,938,314 | |
Income/(loss) before allocation of corporate overhead and income taxes | 297,017 | 235,783 | |
Allocation of corporate overhead | 0 | 0 | |
Income/(loss) after allocation of corporate overhead and before income taxes | 297,017 | 235,783 | |
Total assets | 9,084,355 | 8,431,385 | 8,974,443 |
Acute Care Hospital Services | |||
Segment Reporting Information [Line Items] | |||
Gross inpatient revenues | 4,328,767 | 3,876,364 | |
Gross outpatient revenues | 2,284,712 | 1,957,491 | |
Total net revenues | 1,145,940 | 974,647 | |
Income/(loss) before allocation of corporate overhead and income taxes | 155,200 | 111,650 | |
Allocation of corporate overhead | -49,426 | -44,697 | |
Income/(loss) after allocation of corporate overhead and before income taxes | 105,774 | 66,953 | |
Total assets | 3,431,688 | 3,200,203 | |
Behavioral Health Services | |||
Segment Reporting Information [Line Items] | |||
Gross inpatient revenues | 1,823,425 | 1,608,899 | |
Gross outpatient revenues | 204,569 | 184,115 | |
Total net revenues | 1,076,345 | 960,347 | |
Income/(loss) before allocation of corporate overhead and income taxes | 253,442 | 221,148 | |
Allocation of corporate overhead | -29,666 | -26,169 | |
Income/(loss) after allocation of corporate overhead and before income taxes | 223,776 | 194,979 | |
Total assets | 5,315,270 | 5,004,478 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Gross outpatient revenues | 7,827 | 8,514 | |
Total net revenues | 3,068 | 3,320 | |
Income/(loss) before allocation of corporate overhead and income taxes | -111,625 | -97,015 | |
Allocation of corporate overhead | 79,092 | 70,866 | |
Income/(loss) after allocation of corporate overhead and before income taxes | -32,533 | -26,149 | |
Total assets | $337,397 | $226,704 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Basic and Diluted: | ||
Net income attributable to UHS | $174,299 | $138,078 |
Less: Net income attributable to unvested restricted share grants | -68 | -70 |
Net income attributable to UHS - basic and diluted | $174,231 | $138,008 |
Weighted average number of common shares-basic | 98,910 | 98,572 |
Net effect of dilutive stock options and grants based on the treasury stock method | 1,737 | 1,585 |
Weighted average number of common shares and equivalents-diluted | 100,647 | 100,157 |
Earnings per basic share attributable to UHS | $1.76 | $1.40 |
Earnings per diluted share attributable to UHS | $1.73 | $1.38 |
Earnings_Per_Share_Data_EPS_an2
Earnings Per Share Data ("EPS") and Stock Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Anti-dilutive weighted average stock options excluded from computation of earnings per share | 3,000,000 | 0 |
Unrecognized compensation cost related to unvested options and restricted stock | $93,900,000 | |
Unrecognized compensation cost, remaining weighted average vesting period in years | 3 years 2 months 12 days | |
Stock options granted during period (net of cancellations) | 2,964,850 | |
Weighted-average grant date fair value, per share | $21.28 | |
Stock-based compensation expense | 10,829,000 | 7,152,000 |
Excess income tax benefits related to stock-based compensation | 20,807,000 | 11,750,000 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost recognized | 10,500,000 | 6,800,000 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation cost recognized | $219,000 | $409,000 |
Dispositions_and_Acquisitions_
Dispositions and Acquisitions - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Bed | ||
Significant Acquisitions and Disposals [Line Items] | ||
Cash paid/reserved related to acquisition of property and businesses | $34,500,000 | $3,301,000 |
Number of beds | 24 | |
Aggregate cash proceeds from divestiture of businesses | 11,000,000 | |
Pre-tax gain (loss) proceeds from divestiture of businesses | $10,000,000 | |
Cygnet Hospital-Taunton | ||
Significant Acquisitions and Disposals [Line Items] | ||
Number of beds | 46 | |
Palo Verde Behavioral Health | ||
Significant Acquisitions and Disposals [Line Items] | ||
Number of beds | 48 |
Dividends_Additional_Informati
Dividends - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Dividends [Line Items] | ||
Dividends declared and paid | $9.90 | $4.90 |
Quarterly cash dividend | $0.10 | $0.05 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Jan. 01, 2015 |
Income Taxes [Line Items] | ||
Unrecognized tax benefits | $2 | |
Impact of unrecognized tax benefits if recognized | 2 | |
Jurisdictions statutes of limitations expiration period | 12 months | |
Period of expiration of the statute of limitations for certain jurisdictions | Within the next twelve months | |
Minimum | ||
Income Taxes [Line Items] | ||
Foreign and U.S. state and local jurisdictions have statutes of limitations, in years | 3 years | |
Maximum | ||
Income Taxes [Line Items] | ||
Accrued interest and penalties | $1 | |
Foreign and U.S. state and local jurisdictions have statutes of limitations, in years | 4 years |
Supplemental_Condensed_Consoli2
Supplemental Condensed Consolidating Financial Information - Additional Information (Detail) (Guarantors) | Mar. 31, 2015 |
Guarantors | |
Supplementary Information [Line Items] | |
Percentage of ownership interests | 100.00% |
Supplemental_Condensed_Consoli3
Supplemental Condensed Consolidating Statements of Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||
Net revenues before provision for doubtful accounts | $2,380,101 | $2,146,498 |
Less: Provision for doubtful accounts | 154,748 | 208,184 |
Net revenues | 2,225,353 | 1,938,314 |
Operating charges: | ||
Salaries, wages and benefits | 1,031,703 | 935,365 |
Other operating expenses | 505,966 | 399,908 |
Supplies expense | 238,741 | 215,798 |
EHR incentive income | 0 | -430 |
Depreciation and amortization | 98,998 | 93,359 |
Lease and rental expense | 22,891 | 23,338 |
Operating expenses | 1,898,299 | 1,667,338 |
Income from operations | 327,054 | 270,976 |
Interest expense | 30,037 | 35,193 |
Interest (income) expense, affiliate | 0 | 0 |
Equity in net income of consolidated affiliates | 0 | 0 |
Income before income taxes | 297,017 | 235,783 |
Provision for income taxes | 102,694 | 83,931 |
Net income | 194,323 | 151,852 |
Less: Income attributable to noncontrolling interests | 20,024 | 13,774 |
Net income attributable to UHS | 174,299 | 138,078 |
Consolidating Adjustments | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net revenues before provision for doubtful accounts | -7,591 | -7,157 |
Less: Provision for doubtful accounts | 0 | 0 |
Net revenues | -7,591 | -7,157 |
Operating charges: | ||
Salaries, wages and benefits | 0 | 0 |
Other operating expenses | -7,300 | -6,941 |
Supplies expense | 0 | 0 |
EHR incentive income | 0 | |
Depreciation and amortization | 0 | 0 |
Lease and rental expense | -291 | -216 |
Operating expenses | -7,591 | -7,157 |
Income from operations | 0 | 0 |
Interest expense | 0 | 0 |
Interest (income) expense, affiliate | 0 | 0 |
Equity in net income of consolidated affiliates | 251,413 | 201,753 |
Income before income taxes | -251,413 | -201,753 |
Provision for income taxes | 0 | 0 |
Net income | -251,413 | -201,753 |
Less: Income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to UHS | -251,413 | -201,753 |
Parent | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net revenues before provision for doubtful accounts | 0 | 0 |
Less: Provision for doubtful accounts | 0 | 0 |
Net revenues | 0 | 0 |
Operating charges: | ||
Salaries, wages and benefits | 0 | 0 |
Other operating expenses | 0 | 0 |
Supplies expense | 0 | 0 |
EHR incentive income | 0 | |
Depreciation and amortization | 0 | 0 |
Lease and rental expense | 0 | 0 |
Operating expenses | 0 | 0 |
Income from operations | 0 | 0 |
Interest expense | 28,512 | 33,573 |
Interest (income) expense, affiliate | 0 | 0 |
Equity in net income of consolidated affiliates | -191,898 | -158,801 |
Income before income taxes | 163,386 | 125,228 |
Provision for income taxes | -10,913 | -12,850 |
Net income | 174,299 | 138,078 |
Less: Income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to UHS | 174,299 | 138,078 |
Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net revenues before provision for doubtful accounts | 1,661,612 | 1,478,459 |
Less: Provision for doubtful accounts | 106,304 | 135,986 |
Net revenues | 1,555,308 | 1,342,473 |
Operating charges: | ||
Salaries, wages and benefits | 740,554 | 669,253 |
Other operating expenses | 351,580 | 254,715 |
Supplies expense | 141,361 | 131,475 |
EHR incentive income | -430 | |
Depreciation and amortization | 69,645 | 67,714 |
Lease and rental expense | 13,755 | 14,349 |
Operating expenses | 1,316,895 | 1,137,076 |
Income from operations | 238,413 | 205,397 |
Interest expense | 1,227 | 824 |
Interest (income) expense, affiliate | 23,054 | 22,112 |
Equity in net income of consolidated affiliates | -59,515 | -42,952 |
Income before income taxes | 273,647 | 225,413 |
Provision for income taxes | 92,130 | 78,753 |
Net income | 181,517 | 146,660 |
Less: Income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to UHS | 181,517 | 146,660 |
Non Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net revenues before provision for doubtful accounts | 726,080 | 675,196 |
Less: Provision for doubtful accounts | 48,444 | 72,198 |
Net revenues | 677,636 | 602,998 |
Operating charges: | ||
Salaries, wages and benefits | 291,149 | 266,112 |
Other operating expenses | 161,686 | 152,134 |
Supplies expense | 97,380 | 84,323 |
EHR incentive income | 0 | |
Depreciation and amortization | 29,353 | 25,645 |
Lease and rental expense | 9,427 | 9,205 |
Operating expenses | 588,995 | 537,419 |
Income from operations | 88,641 | 65,579 |
Interest expense | 298 | 796 |
Interest (income) expense, affiliate | -23,054 | -22,112 |
Equity in net income of consolidated affiliates | 0 | 0 |
Income before income taxes | 111,397 | 86,895 |
Provision for income taxes | 21,477 | 18,028 |
Net income | 89,920 | 68,867 |
Less: Income attributable to noncontrolling interests | 20,024 | 13,774 |
Net income attributable to UHS | $69,896 | $55,093 |
Supplemental_Condensed_Consoli4
Supplemental Condensed Consolidating Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Statement of Income Captions [Line Items] | ||
Net income | $194,323 | $151,852 |
Other comprehensive income (loss): | ||
Unrealized derivative gains on cash flow hedges | 4,132 | 3,745 |
Amortization of terminated hedge | -84 | -84 |
Foreign currency translation adjustment | -418 | 0 |
Other comprehensive income (loss) before tax | 3,630 | 3,661 |
Income tax (benefit) expense related to items of other comprehensive income | 1,497 | 1,354 |
Total other comprehensive income, net of tax | 2,133 | 2,307 |
Comprehensive income | 196,456 | 154,159 |
Less: Comprehensive income attributable to noncontrolling interests | 20,024 | 13,774 |
Comprehensive income attributable to UHS | 176,432 | 140,385 |
Consolidating Adjustments | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | -251,413 | -201,753 |
Other comprehensive income (loss): | ||
Unrealized derivative gains on cash flow hedges | 0 | 0 |
Amortization of terminated hedge | 0 | 0 |
Foreign currency translation adjustment | 418 | |
Other comprehensive income (loss) before tax | 418 | 0 |
Income tax (benefit) expense related to items of other comprehensive income | 0 | 0 |
Total other comprehensive income, net of tax | 418 | 0 |
Comprehensive income | -250,995 | -201,753 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to UHS | -250,995 | -201,753 |
Parent | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 174,299 | 138,078 |
Other comprehensive income (loss): | ||
Unrealized derivative gains on cash flow hedges | 4,132 | 3,745 |
Amortization of terminated hedge | -84 | -84 |
Foreign currency translation adjustment | -418 | |
Other comprehensive income (loss) before tax | 3,630 | 3,661 |
Income tax (benefit) expense related to items of other comprehensive income | 1,497 | 1,354 |
Total other comprehensive income, net of tax | 2,133 | 2,307 |
Comprehensive income | 176,432 | 140,385 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to UHS | 176,432 | 140,385 |
Guarantors | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 181,517 | 146,660 |
Other comprehensive income (loss): | ||
Unrealized derivative gains on cash flow hedges | 0 | 0 |
Amortization of terminated hedge | 0 | 0 |
Foreign currency translation adjustment | -418 | |
Other comprehensive income (loss) before tax | -418 | 0 |
Income tax (benefit) expense related to items of other comprehensive income | 0 | 0 |
Total other comprehensive income, net of tax | -418 | 0 |
Comprehensive income | 181,099 | 146,660 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to UHS | 181,099 | 146,660 |
Non Guarantors | ||
Condensed Statement of Income Captions [Line Items] | ||
Net income | 89,920 | 68,867 |
Other comprehensive income (loss): | ||
Unrealized derivative gains on cash flow hedges | 0 | 0 |
Amortization of terminated hedge | 0 | 0 |
Foreign currency translation adjustment | 0 | |
Other comprehensive income (loss) before tax | 0 | 0 |
Income tax (benefit) expense related to items of other comprehensive income | 0 | 0 |
Total other comprehensive income, net of tax | 0 | 0 |
Comprehensive income | 89,920 | 68,867 |
Less: Comprehensive income attributable to noncontrolling interests | 20,024 | 13,774 |
Comprehensive income attributable to UHS | $69,896 | $55,093 |
Supplemental_Condensed_Consoli5
Supplemental Condensed Consolidating Balance Sheet (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $35,078 | $32,069 | $16,261 | $17,238 |
Accounts receivable, net | 1,383,964 | 1,282,735 | ||
Supplies | 108,269 | 108,115 | ||
Deferred income taxes | 109,402 | 114,565 | ||
Other current assets | 80,524 | 77,654 | ||
Total current assets | 1,717,237 | 1,615,138 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Intercompany note receivable | 0 | 0 | ||
Property and equipment | 6,301,410 | 6,212,030 | ||
Less: accumulated depreciation | -2,610,630 | -2,532,341 | ||
Property, Plant and Equipment, Net | 3,690,780 | 3,679,689 | ||
Other assets: | ||||
Goodwill | 3,297,436 | 3,291,213 | ||
Deferred charges | 38,761 | 40,319 | ||
Other | 340,141 | 348,084 | ||
Total assets | 9,084,355 | 8,974,443 | 8,431,385 | |
Current liabilities: | ||||
Current maturities of long-term debt | 89,023 | 68,319 | ||
Accounts payable and accrued liabilities | 1,101,143 | 1,113,062 | ||
Federal and state taxes | 65,106 | 1,446 | ||
Total current liabilities | 1,255,272 | 1,182,827 | ||
Intercompany payable | 0 | 0 | ||
Other noncurrent liabilities | 277,617 | 268,555 | ||
Long-term debt | 3,051,571 | 3,210,215 | ||
Intercompany note payable | 0 | 0 | ||
Deferred income taxes | 280,662 | 282,214 | ||
Redeemable noncontrolling interests | 254,843 | 239,552 | ||
UHS common stockholders' equity | 3,906,963 | 3,735,946 | ||
Noncontrolling interest | 57,427 | 55,134 | ||
Total equity | 3,964,390 | 3,791,080 | ||
Liabilities and Equity, Total | 9,084,355 | 8,974,443 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Supplies | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Investments in subsidiaries | -8,925,831 | -8,674,836 | ||
Intercompany receivable | -466,935 | -512,490 | ||
Intercompany note receivable | -1,222,637 | -1,222,637 | ||
Property and equipment | 0 | 0 | ||
Less: accumulated depreciation | 0 | 0 | ||
Property, Plant and Equipment, Net | 0 | 0 | ||
Other assets: | ||||
Goodwill | 0 | 0 | ||
Deferred charges | 0 | 0 | ||
Other | 0 | 0 | ||
Total assets | -10,615,403 | -10,409,963 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable and accrued liabilities | 0 | 0 | ||
Federal and state taxes | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Intercompany payable | -466,935 | -512,490 | ||
Other noncurrent liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Intercompany note payable | -1,222,637 | -1,222,637 | ||
Deferred income taxes | 0 | 0 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
UHS common stockholders' equity | -8,925,831 | -8,674,836 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | -8,925,831 | -8,674,836 | ||
Liabilities and Equity, Total | -10,615,403 | -10,409,963 | ||
Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Supplies | 0 | 0 | ||
Deferred income taxes | 108,654 | 113,822 | ||
Other current assets | 0 | 0 | ||
Total current assets | 108,654 | 113,822 | ||
Investments in subsidiaries | 7,205,020 | 7,013,540 | ||
Intercompany receivable | 14,763 | 103,808 | ||
Intercompany note receivable | 0 | 0 | ||
Property and equipment | 0 | 0 | ||
Less: accumulated depreciation | 0 | 0 | ||
Property, Plant and Equipment, Net | 0 | 0 | ||
Other assets: | ||||
Goodwill | 0 | 0 | ||
Deferred charges | 30,661 | 32,379 | ||
Other | 9,028 | 9,601 | ||
Total assets | 7,368,126 | 7,273,150 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 65,674 | 44,874 | ||
Accounts payable and accrued liabilities | 17,230 | 20,245 | ||
Federal and state taxes | 65,106 | 1,446 | ||
Total current liabilities | 148,010 | 66,565 | ||
Intercompany payable | 0 | 0 | ||
Other noncurrent liabilities | 1,354 | 1,322 | ||
Long-term debt | 3,031,137 | 3,187,103 | ||
Intercompany note payable | 0 | 0 | ||
Deferred income taxes | 280,662 | 282,214 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
UHS common stockholders' equity | 3,906,963 | 3,735,946 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 3,906,963 | 3,735,946 | ||
Liabilities and Equity, Total | 7,368,126 | 7,273,150 | ||
Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 15,518 | 21,784 | 7,719 | 7,990 |
Accounts receivable, net | 992,008 | 933,971 | ||
Supplies | 67,246 | 67,847 | ||
Deferred income taxes | 748 | 743 | ||
Other current assets | 66,039 | 62,431 | ||
Total current assets | 1,141,559 | 1,086,776 | ||
Investments in subsidiaries | 1,720,811 | 1,661,296 | ||
Intercompany receivable | 0 | 0 | ||
Intercompany note receivable | 0 | 0 | ||
Property and equipment | 4,544,670 | 4,494,567 | ||
Less: accumulated depreciation | -1,741,915 | -1,686,192 | ||
Property, Plant and Equipment, Net | 2,802,755 | 2,808,375 | ||
Other assets: | ||||
Goodwill | 2,770,705 | 2,764,555 | ||
Deferred charges | 5,463 | 5,402 | ||
Other | 278,743 | 283,302 | ||
Total assets | 8,720,036 | 8,609,706 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 1,215 | 1,260 | ||
Accounts payable and accrued liabilities | 1,024,897 | 1,051,309 | ||
Federal and state taxes | 0 | 0 | ||
Total current liabilities | 1,026,112 | 1,052,569 | ||
Intercompany payable | 466,935 | 512,490 | ||
Other noncurrent liabilities | 193,215 | 189,456 | ||
Long-term debt | 17,696 | 20,212 | ||
Intercompany note payable | 1,222,637 | 1,222,637 | ||
Deferred income taxes | 0 | 0 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
UHS common stockholders' equity | 5,793,441 | 5,612,342 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 5,793,441 | 5,612,342 | ||
Liabilities and Equity, Total | 8,720,036 | 8,609,706 | ||
Non Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 19,560 | 10,285 | 8,542 | 9,248 |
Accounts receivable, net | 391,956 | 348,764 | ||
Supplies | 41,023 | 40,268 | ||
Deferred income taxes | 0 | 0 | ||
Other current assets | 14,485 | 15,223 | ||
Total current assets | 467,024 | 414,540 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany receivable | 452,172 | 408,682 | ||
Intercompany note receivable | 1,222,637 | 1,222,637 | ||
Property and equipment | 1,756,740 | 1,717,463 | ||
Less: accumulated depreciation | -868,715 | -846,149 | ||
Property, Plant and Equipment, Net | 888,025 | 871,314 | ||
Other assets: | ||||
Goodwill | 526,731 | 526,658 | ||
Deferred charges | 2,637 | 2,538 | ||
Other | 52,370 | 55,181 | ||
Total assets | 3,611,596 | 3,501,550 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 22,134 | 22,185 | ||
Accounts payable and accrued liabilities | 59,016 | 41,508 | ||
Federal and state taxes | 0 | 0 | ||
Total current liabilities | 81,150 | 63,693 | ||
Intercompany payable | 0 | 0 | ||
Other noncurrent liabilities | 83,048 | 77,777 | ||
Long-term debt | 2,738 | 2,900 | ||
Intercompany note payable | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Redeemable noncontrolling interests | 254,843 | 239,552 | ||
UHS common stockholders' equity | 3,132,390 | 3,062,494 | ||
Noncontrolling interest | 57,427 | 55,134 | ||
Total equity | 3,189,817 | 3,117,628 | ||
Liabilities and Equity, Total | $3,611,596 | $3,501,550 |
Supplemental_Condensed_Consoli6
Supplemental Condensed Consolidating Statements of Cash flows (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | $271,275 | $194,639 |
Cash Flows from Investing Activities: | ||
Property and equipment additions, net of disposals | -89,276 | -92,387 |
Proceeds received from sale of assets and businesses | 0 | 11,450 |
Acquisition of property and businesses | -34,500 | -3,301 |
Costs incurred for purchase and implementation of electronic health records application | 0 | -6,504 |
Net cash used in investing activities | -123,776 | -90,742 |
Cash Flows from Financing Activities: | ||
Reduction of long-term debt | -158,871 | -109,054 |
Additional borrowings | 20,800 | 11,900 |
Repurchase of common shares | -28,767 | -13,993 |
Dividends paid | -9,899 | -4,933 |
Issuance of common stock | 1,768 | 1,445 |
Excess income tax benefits related to stock-based compensation | 20,807 | 11,750 |
Profit distributions to noncontrolling interests | -2,413 | -1,989 |
Proceeds received from sale/leaseback of real property | 12,551 | 0 |
Changes in intercompany balances with affiliates, net | 0 | 0 |
Net cash (used in) provided by financing activities | -144,024 | -104,874 |
Effect of exchange rate changes on cash and cash equivalents | -466 | 0 |
Decrease in cash and cash equivalents | 3,009 | -977 |
Cash and cash equivalents, beginning of period | 32,069 | 17,238 |
Cash and cash equivalents, end of period | 35,078 | 16,261 |
Consolidating Adjustments | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 0 | 0 |
Cash Flows from Investing Activities: | ||
Property and equipment additions, net of disposals | 0 | 0 |
Proceeds received from sale of assets and businesses | 0 | |
Acquisition of property and businesses | 0 | |
Costs incurred for purchase and implementation of electronic health records application | 0 | |
Net cash used in investing activities | 0 | 0 |
Cash Flows from Financing Activities: | ||
Reduction of long-term debt | 0 | 0 |
Additional borrowings | 0 | 0 |
Repurchase of common shares | 0 | 0 |
Dividends paid | 0 | 0 |
Issuance of common stock | 0 | 0 |
Excess income tax benefits related to stock-based compensation | 0 | 0 |
Profit distributions to noncontrolling interests | 0 | 0 |
Proceeds received from sale/leaseback of real property | 0 | |
Changes in intercompany balances with affiliates, net | 0 | 0 |
Net cash (used in) provided by financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | |
Decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Parent | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 62,343 | 70,888 |
Cash Flows from Investing Activities: | ||
Property and equipment additions, net of disposals | 0 | 0 |
Proceeds received from sale of assets and businesses | 0 | |
Acquisition of property and businesses | 0 | 0 |
Costs incurred for purchase and implementation of electronic health records application | 0 | |
Net cash used in investing activities | 0 | 0 |
Cash Flows from Financing Activities: | ||
Reduction of long-term debt | -156,097 | -97,975 |
Additional borrowings | 20,800 | 11,900 |
Repurchase of common shares | -28,767 | -13,993 |
Dividends paid | -9,899 | -4,933 |
Issuance of common stock | 1,768 | 1,445 |
Excess income tax benefits related to stock-based compensation | 20,807 | 11,750 |
Profit distributions to noncontrolling interests | 0 | 0 |
Proceeds received from sale/leaseback of real property | 0 | |
Changes in intercompany balances with affiliates, net | 89,045 | 20,918 |
Net cash (used in) provided by financing activities | -62,343 | -70,888 |
Effect of exchange rate changes on cash and cash equivalents | 0 | |
Decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 124,046 | 51,661 |
Cash Flows from Investing Activities: | ||
Property and equipment additions, net of disposals | -59,217 | -70,385 |
Proceeds received from sale of assets and businesses | 11,450 | |
Acquisition of property and businesses | -22,513 | 0 |
Costs incurred for purchase and implementation of electronic health records application | -6,504 | |
Net cash used in investing activities | -81,730 | -65,439 |
Cash Flows from Financing Activities: | ||
Reduction of long-term debt | -2,561 | -228 |
Additional borrowings | 0 | 0 |
Repurchase of common shares | 0 | 0 |
Dividends paid | 0 | 0 |
Issuance of common stock | 0 | 0 |
Excess income tax benefits related to stock-based compensation | 0 | 0 |
Profit distributions to noncontrolling interests | 0 | 0 |
Proceeds received from sale/leaseback of real property | 0 | |
Changes in intercompany balances with affiliates, net | -45,555 | 13,735 |
Net cash (used in) provided by financing activities | -48,116 | 13,507 |
Effect of exchange rate changes on cash and cash equivalents | -466 | |
Decrease in cash and cash equivalents | -6,266 | -271 |
Cash and cash equivalents, beginning of period | 21,784 | 7,990 |
Cash and cash equivalents, end of period | 15,518 | 7,719 |
Non Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 84,886 | 72,090 |
Cash Flows from Investing Activities: | ||
Property and equipment additions, net of disposals | -30,059 | -22,002 |
Proceeds received from sale of assets and businesses | 0 | |
Acquisition of property and businesses | -11,987 | -3,301 |
Costs incurred for purchase and implementation of electronic health records application | 0 | |
Net cash used in investing activities | -42,046 | -25,303 |
Cash Flows from Financing Activities: | ||
Reduction of long-term debt | -213 | -10,851 |
Additional borrowings | 0 | 0 |
Repurchase of common shares | 0 | 0 |
Dividends paid | 0 | 0 |
Issuance of common stock | 0 | 0 |
Excess income tax benefits related to stock-based compensation | 0 | 0 |
Profit distributions to noncontrolling interests | -2,413 | -1,989 |
Proceeds received from sale/leaseback of real property | 12,551 | |
Changes in intercompany balances with affiliates, net | -43,490 | -34,653 |
Net cash (used in) provided by financing activities | -33,565 | -47,493 |
Effect of exchange rate changes on cash and cash equivalents | 0 | |
Decrease in cash and cash equivalents | 9,275 | -706 |
Cash and cash equivalents, beginning of period | 10,285 | 9,248 |
Cash and cash equivalents, end of period | $19,560 | $8,542 |