Two major hospital systems–Universal Health Services (UHS) and Tenet Healthcare–saw improved third-quarter profits in 2023, but Community Health Systems (CHS) and HCA Healthcare did not see similar upward trends, HealthLeaders November 3 reports.
According to the article, rising demand in services at UHS drove third-quarter earnings up 6.8% from the same period last year, to $3.6 billion. Despite the increase, however, UHS’s net income declined, from $182.8 million in 2022 to $167 million in 2023. UHS also saw increases in operating expenses (7.1%) and salaries, wages, and benefits (6.4%).
Tenet’s increased earnings growth–$851 million in the third quarter of 2023 from $787 million in the same period in 2022–can be attributed to a number of factors: increase in ambulatory care and hospital operations, improved contract labor costs, and $7 million from cybersecurity insurance proceeds, noted the article.
In comparison, HCA’s joint venture with Valesco led to higher costs and lower sales, diluting its third quarter gains. CHS, meanwhile, has struggled with challenges around reimbursement, inflation, and regulatory hurdles.
Both CHS and HCA said they would adjust their strategies heading into the new year following this third quarter earnings report.Read More >>