Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $174.3 million, or $1.73 per diluted share, during the first quarter of 2015 as compared to $138.1 million, or $1.38 per diluted share, during the comparable quarter of 2014. Net revenues increased 14.8% to $2.23 billion during the first quarter of 2015 as compared to $1.94 billion during the first quarter of 2014.
For the three-month period ended March 31, 2015, our adjusted net income attributable to UHS, as calculated on the attached Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule"), increased approximately 31% to $179.5 million, or $1.78 per diluted share, as compared to $136.7 million, or $1.36 per diluted share, during the first quarter of 2014.
As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2015 is a net unfavorable after-tax impact of approximately $5.2 million, or $.05 per diluted share, related to the depreciation and amortization expense recorded in connection with the implementation of electronic health records ("EHR") applications at our acute care hospitals.
As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2014 was an aggregate net favorable after-tax impact of approximately $1.4 million, or $.02 per diluted share, consisting of: (i) a favorable after-tax impact of $6.3 million, or $.07 per diluted share, resulting from a gain realized on the sale of a non-operating investment, and; (ii) a net unfavorable after-tax impact of approximately $4.9 million, or $.05 per diluted share, related to the incentive income and depreciation and amortization expense recorded in connection with the implementation of EHR applications.
Acute Care Services – Three-month periods ended March 31, 2015 and 2014:
During the first quarter of 2015, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased 5.7% and adjusted patient days increased 7.5%, as compared to the first quarter of 2014. Net revenues at these facilities increased 12.2% during the first quarter of 2015 as compared to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission increased 6.1% while net revenue per adjusted patient day increased 4.4% during the first quarter of 2015 as compared to the comparable quarter of 2014. On a same facility basis, the operating margin at our acute care hospitals increased to 21.6% during the first quarter of 2015 as compared to 19.2% during the first quarter of 2014. We define operating margin as net revenues less salaries, wages and benefits, other operating expenses and supplies expense (excluding the impact of EHR and other items as indicated on the Supplemental Schedules).
The increased operating performance experienced at our acute care facilities during the first quarter of 2015, as compared to the comparable quarter in 2014, was due in part to continued improvement in general economic conditions as well as a decrease in the number of uninsured patients treated at our hospitals. The decrease in the number of uninsured patients treated at our acute care hospitals was due primarily to the favorable impact of the Affordable Care Act which includes the expansion of Medicaid in certain states in which we operate and the enrollment of patients in newly created commercial exchanges.
We provide care to patients who meet certain financial or economic criteria without charge or at amounts substantially less than our established rates. Because we do not pursue collection of amounts determined to qualify as charity care, they are not reported in net revenues or in accounts receivable, net. Our acute care hospitals provided charity care and uninsured discounts, based on gross charges, amounting to approximately $287 million and $320 million during the three-month periods ended March 31, 2015 and 2014, respectively. The provision for doubtful accounts at our acute care hospitals decreased to approximately $124 million during the three-month period ended March 31, 2015 as compared to $182 million during the comparable quarter of 2014. During the three-month period ended March 31, 2015, as compared to the comparable period of 2014, our acute care hospitals experienced a decrease in the aggregate of charity care, uninsured discounts and provision for doubtful accounts as a percentage of gross charges.
Behavioral Health Care Services – Three-month periods ended March 31, 2015 and 2014:
During the first quarter of 2015, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 6.0% while adjusted patient days increased 2.6% as compared to the first quarter of 2014. At these facilities, net revenue per adjusted admission increased 0.4% while net revenue per adjusted patient day increased 3.7% during the first quarter of 2015 as compared to the comparable quarter in 2014. On a same facility basis, our behavioral health services' net revenues increased 6.3% during the first quarter of 2015, as compared to the comparable quarter in 2014, and the operating margins were 28.6% and 27.7% during the three-month periods ended March 31, 2015 and 2014, respectively.
Share Repurchase Program:
During the third quarter of 2014, our Board of Directors authorized a stock repurchase program whereby, from time to time as conditions allow, we may spend up to $400 million to purchase shares of our Class B Common Stock on the open market or in negotiated private transactions. In conjunction with this program, during the first quarter of 2015, we repurchased 48,269 shares at an aggregate cost of $5.6 million. Since inception of the program through March 31, 2015, we repurchased 596,461 shares at an aggregate cost of $63.6 million.
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