Universal Health Services

Universal Health Services, Inc.
Public
Traded as NYSE: UHS
S&P 500 component
Founded 1979
Headquarters King of Prussia, Pennsylvania, United States
Website www.uhsinc.com

Universal Health Services, Inc. (NYSE: UHS) is a Fortune 500 company[1] based in King of Prussia, Pennsylvania.

Company description

Universal Health Services, Inc. (UHS) is one of the largest hospital management companies in the United States.

As of February 25, 2016, UHS operates through its subsidiaries 24 inpatient acute care hospitals, 3 free-standing emergency departments and 213 inpatient and 16 outpatient behavioral health care facilities located in 37 states, Washington, D.C., the United Kingdom, Puerto Rico and the U.S. Virgin Islands. The UHS facilities located in the U.S. had approximately 72,600 employees as of December 31, 2015, of whom approximately 52,400 were employed full-time. In addition, the facilities located in the U.K. had approximately 2,000 employees as of December 31, 2015.[2]

The company aims to provide quality healthcare at affordable cost, strengthen physician and community relationships, and pursue conservative growth.

Company history

Alan B. Miller, who currently serves as the company’s Chairman and Chief Executive Officer, founded Universal Health Services, Inc. in 1978 after he engineered a financial turnaround of American Medicorp, only to lose the control of the company in a hostile takeover by Humana. The next day, Miller founded UHS with $3.2 million from venture capitalists and $750,000 put up by himself and several former American Medicorp employees who decided to follow Miller into his new venture. Within 18 months of its founding, UHS would own four hospitals and have management contracts with two additional hospitals.[3]

  • 1979: UHS entered Las Vegas with the purchase of Spring Valley Hospital, which has been part of UHS longer than any other hospital in the system. The acquisition gave UHS its entry into the growing southeast Nevada marketplace.[4]
  • 1979: The company’s annual gross revenue was $30.9 million.
  • 1980: The company chose its first Board of Directors. Members included Alan B. Miller, Sidney Miller, George H. Strong, Edwin C. Cohen, Leonard Shaykin and Thomas L. Kempner.
  • 1981: UHS held its Initial Public Offering.[5] Analysts offered positive recommendations for the IPO because of significant and successful experience that company managers had with UHS and with American Medicorp. Annual gross revenue at the time was $119.4 million.
  • 1982: UHS purchased five hospitals from the Stewards Foundation, marking the first time a for-profit corporation purchased hospitals from a nonprofit religious organization.[4]
  • 1983-07: UHS stock split for the first time.[6]
  • 1983: UHS purchased Qualicare, Inc. for more than $116 million. The purchase included 11 acute care hospitals and four behavioral health hospitals, giving the company its entry into the psychiatric healthcare market.[4]
  • 1983: Universal Health Services, Inc. was ranked first for growth in the healthcare industry over five years by Financial World magazine.
  • 1984: Company revenues continued to increase as Medicare introduced fixed payments for diagnostic related groups (DRGs), a move experts said would benefit well-managed companies such as UHS.
  • 1985: Annual gross revenue exceeded $500 million for the first time.
  • 1986: Wellington Regional Medical Center in Wellington, Florida begins its operation.[7]
  • 1986: UHS created Universal Health Realty Income Trust,[4] the first REIT in the healthcare industry.
  • 1991: UHS stock trading moved from NASDAQ to NYSE.[4] Annual gross revenues exceeded $1 billion.
  • 1994: Inland Valley Medical Center was chosen as one of the Top 100 Hospitals in the country by Modern Healthcare magazine.[4]
  • 1996-05: UHS stock split, two for one.[6] Outstanding shares increased from 14.4 million to 28.8 million. Annual gross revenue: $2.3 billion.
  • 1997: UHS acquires an 80% stake in George Washington University Hospital.[8] The company introduced its Service Excellence program to focus on making patients the first priority.
  • 1998: UHS was named to the Wall Street Journal’s “Shareholder Honor Roll.”
  • 1999: Debra K. Osteen appointed vice president of UHS and president of the Behavioral Health Division.[9]
  • 2001-06: UHS stock split, two for one.[6] The Wall Street Journal named UHS as the best performing healthcare stock over 10 years.
  • 2002: UHS was listed among America’s Best Big Companies in the Forbes Platinum 400.
  • 2002: The replacement building for the George Washington University Hospital opened.[10]
  • 2003: Steve Filton was named Chief Operating Officer.[11]
  • 2003: The Wall Street Journal’s Shareholder Scorecard listed UHS as the best performing stock among healthcare providers from 1992 to 2002. Charles Boyle named Controller, Cheryl Ramagano appointed Treasurer and J.P. Christen promoted to Assistant Vice President of Hospital Finance.
  • 2003: UHS makes the Fortune 500 for the first time, with a rank of 468.[12]
  • 2004: UHS was number 10 among the “Top 100 Places to Work in IT” by Computerworld magazine.
  • 2007: UHS formed UHS Development Company, Inc. to build better quality hospitals at lower costs for the industry. Richard C. Wright was named President of the new venture.
  • 2008: Annual revenue reached $5 billion.[13]
  • 2009-12: UHS stock split, two for one.[6]
  • 2010-11-16: UHS reached an agreement in May to acquire Psychiatric Solutions, Inc., one of the nation’s largest behavioral health operators with 94 locations, over 11,000 beds and a 19 percent market share, for $3,1 billion. As a result of the acquisition, completed in November, UHS more than doubled its beds count in the behavioral health segment and became the country's top inpatient psychiatric services provider.[14][15]
  • 2012-06-04: UHS announced its plans to acquire Ascend Health Corporation for $517 million,[16] adding 9 freestanding inpatient psychiatric facilities with 867 licensed beds in Texas, Arizona, Utah, Oregon and Washington State to its portfolio.[17]
  • 2013-10-14: The 140-bed, five-story Temecula Valley Hospital in Temecula, California begins its operation, offering a comprehensive range of services similar to hospitals in large metropolitan areas with 300 affiliated physicians, over 600 employees, and 170 volunteers.[18]
  • 2013-10-30: A total of 48 facilities owned and operated by subsidiaries of UHS are recognized by the Joint Commission as a Top Performer on Key Quality Measures® for 2012. There are 43 behavioral health and five acute care hospitals listed, including 16 facilities honored for the second consecutive year.[19]
  • 2014: UHS listed among Fortune 500 (with a rank of 324[20]) and "World's Most Admired Companies"
  • 2014: A total of 46 facilities owned and operated by subsidiaries of Universal Health Services, Inc. are recognized by the Joint Commission as a Top Performer on Key Quality Measures® for 2013.
  • 2014-02-28: UHS buys Palo Verde Mental Health with 48 beds for an undisclosed amount, renaming the facility to Palo Verde Behavioral Health.[21]
  • 2014-04-24: UHS announced the acquisition of the Psychiatric Institute of Washington, a 124-bed behavioral health care facility and outpatient treatment center located in the District of Columbia. As part of this transaction, the company also acquired the Arbor Group, L.L.C. which operates three management contracts covering 66 beds in the Washington, D.C. and Maryland market.[22]
  • 2014-09-26: UHS acquires Cygnet Health Care Limited for approximately $335 million, adding 17 facilities throughout the United Kingdom including 15 inpatient behavioral health hospitals and 2 nursing homes with a total of 743 beds,[23] just a few days after the company's stock joined the S&P500 index.[24]
  • 2015: UHS listed among Fortune 500 "World's Most Admired Companies"[25] and "America's Largest Corporations," "30 Most Meaningful Companies to Work For in America"[26] by Business Insider and a Recipient of "Leadership 500 Excellence Awards 2015".[27]
  • 2015-08-20: UHS expands its presence in the U.K with the acquisition of Alpha Hospitals Holdings Limited, a provider of low and medium secure mental health care facilities and services, for $148 million from private equity group C&C Alpha Group, adding four hospitals and 350 beds to its portfolio.[28]
  • 2015-09-18: UHS announces the acquisition of Foundations Recovery Network based in Brentwood, Tennessee for $350 million,[29] adding 322 residential beds in four inpatient facilities and eight outpatient centers to its substance use disorder service line.[30]
  • 2015-11-17: A total of 46 facilities owned and operated by subsidiaries of UHS are recognized by The Joint Commission as a Top Performer on Key Quality Measures® for 2014.[31]
  • 2016-08-17: UHS buys Desert View Hospital in Pahrump, Nevada with 25 beds for an undisclosed amount.[32]

Facilities

According to their annual report for fiscal year 2015,[33] UHS is running the following facilities:

Acute Care Hospitals

Outpatient Behavioral Health Care Facilities

Surgical Hospitals, Ambulatory Surgery Centers and Radiation Oncology Centers

Issues with government agencies

Hospital licenses

The Centers for Medicare and Medicaid Services (CMS) threatened the Rancho Springs Medical Center (Murrieta) and Inland Valley Regional Medical Center (Wildomar) in California with decertification in June 2010 while the State of California warned of a possible hospital license revocation.[34] Universal Health Services implemented a program to address all concerns and in November 2011, the two hospitals passed a CMS Certification Survey.[35] As a result, CMS rescinded its termination notice and the California Department of Public Health withdrew its license revocation notice.

Allegations of noncompliance with same-sex visitation law

According to a petition started on change.org[36] by Terri-Ann Simonelli of Henderson, Nevada, Spring Valley Hospital (owned and operated by UHS) claimed that their "policy" required power of attorney for a same-sex partner to make medical decisions on behalf of their partner. If true, this would seemingly violate new Department of Health and Human Services rules enabling same-sex partners to make said decisions, with or without power of attorney.

Fraudulent medicaid claims

In September 2012, UHS and its subsidiaries, Keystone Education and Youth Services LLC and Keystone Marion LLC d/b/a Keystone Marion Youth Center agreed to pay over $6.9 million to resolve allegations that they submitted false and fraudulent claims to Medicaid. Between October 2004 and March 2010, the entities allegedly provided substandard psychiatric counseling and treatment to adolescents in violation of the Medicaid requirements. The United States alleged that UHS falsely represented Keystone Marion Youth Center as a residential treatment facility providing inpatient psychiatric services to Medicaid enrolled children, when in fact it was a juvenile detention facility. The United States further alleged that neither a medical director nor licensed psychiatrist provided the required direction for psychiatric services or for the development of initial or continuing treatment plans. The settlement further resolved allegations that the entities filed false records or statements to Medicaid when they filed treatment plans that falsely represented the level of services that would be provided to the patients.[37]

References

  1. ↑ "Health care groups that made this year's Fortune 500 list". advisory.com. The Advisory Board Company. 2014-06-03. Retrieved 2016-10-07.
  2. ↑ "Form 10-K - Item 1: Business". EDGAR. U.S. Securities and Exchange Commission. 2016-02-25. Retrieved 2016-10-07.
  3. ↑ Kepos, Paula (1992). International Directory of Company Histories, Vol. 6. St. James Press. ISBN 9781558621763.
  4. 1 2 3 4 5 6 "UHS Timeline". Universal Health Services. 2015. Retrieved 2016-10-07.
  5. ↑ "Universal Health Services: IPOs as UHS". Crunchbase. 1981-07-17. Retrieved 2016-10-07.
  6. 1 2 3 4 "Stock split history". UHS Investor FAQ. Universal Health Services. Retrieved 2016-10-07.
  7. ↑ Bavley, Alan (1986-09-17). "Hospital Stocks Up On Luxury Wellington Center Caters To Clients". Sun-Sentinel. Retrieved 2016-10-07.
  8. ↑ Fischer, Ben (2012-04-06). "30 Years: Universal Health buys control of George Washington University Hospital (July 22, 1997)". Washington Business Journal. American City Business Journals. Retrieved 2016-10-07.
  9. ↑ "Debbie Osteen". National Action Alliance for Suicide Prevention. 2016. Retrieved 2016-10-07.
  10. ↑ "New GW hospital opens doors". The Washington Times. Larry Beasley. 2002-08-25. Retrieved 2016-10-07.
  11. ↑ "Steve G. Filton Appointed Chief Financial Officer Of Universal Health Services, Inc.". PR Newswire. 2003-07-14. Retrieved 2016-10-07.
  12. ↑ "Fortune 500 2003: [468] Universal Health Services, Inc.". Fortune (magazine). Time, Inc. 2003. Retrieved 2016-10-10.
  13. ↑ "Form 10-K: ITEM 6. Selected Financial Data". EDGAR. U.S. Securities and Exchange Commission. 2009-02-26. Retrieved 2016-10-07.
  14. ↑ Burling, Stacey (16 November 2010). "UHS completes $3.1 billion Psychiatric Solutions acquisition". Philadelphia Inquirer. Retrieved 16 November 2010.
  15. ↑ Grantham, Dennis (2011-01-01). "Patience ... Patients: How Universal Health Systems became the top inpatient psychiatric services provider". Behavioral Healthcare. Vendome Group. Retrieved 2016-10-07.
  16. ↑ Evans, Melanie (2012-06-04). "UHS to acquire Ascend Health in $517 million deal". Modern Healthcare. Retrieved 2016-10-07.
  17. ↑ "Universal Health Services, Inc. Completes Acquisition Of Ascend Health Corporation And Divestiture Of Auburn Regional Medical Center". PR Newswire. 2012-10-10. Retrieved 2016-10-07.
  18. ↑ "About the Hospital". Temecula Valley Hospital. Retrieved 2016-10-07.
  19. ↑ "48 UHS Facilities Recognized by The Joint Commission". UHS News & Press Releases. Universal Health Services. 2013-10-30. Retrieved 2016-10-07.
  20. ↑ "Fortune 500 2014: [324] Universal Health Services, Inc.". Fortune (magazine). Time, Inc. 2014. Retrieved 2016-10-10.
  21. ↑ Szekely, Balazs (2014-03-08). "Universal Health Services Acquires Palo Verde Mental Health Facility". Commercial Property Executive. Retrieved 2016-10-07.
  22. ↑ "Universal Health Services, Inc. Reports 2014 First Quarter Financial Results And Acquisition Of Behavioral Health Care Facility In Washington, D.C.". News Release. Universal Health Services. 2014-04-24. Retrieved 2016-10-07.
  23. ↑ "Universal Health Services, Inc. Announces Acquisition of Cygnet Health Care Limited and is Added to the S&P 500 Index". The Globe and Mail. Phillip Crawley. 2014-09-26. Retrieved 2016-10-07.
  24. ↑ "BRIEF-S&P 500 to add United Rentals, Universal Health Services; drop Graham Holdings, Peabody Energy". Reuters. 2014-09-12. Retrieved 2016-10-07.
  25. ↑ "World's Most Admired Companies: Universal Health Services". Fortune (magazine). Retrieved 2016-10-07.
  26. ↑ Smith, Jacquelyn; Gould, Skye (2015-05-11). "The 30 most meaningful companies to work for in America". Business Insider. Axel Springer SE. Retrieved 2016-10-07.
  27. ↑ "Winners of Leadership 500 Excellence Awards 2015". HR.com. 2015-01-04. Retrieved 2016-10-07.
  28. ↑ Burdo, Alison (2015-08-20). "KoP firm buys English hospitals for $148M". Philadelphia Business Journal. Sandy Smith. Retrieved 2016-10-07.
  29. ↑ Powderly, Henry (21 September 2015). "Universal Health Services acquires Foundations Recovery Network.". Healthcare Finance News. Retrieved 21 September 2015.
  30. ↑ George, John (2015-09-18). "UHS buys provider of substance-abuse treatment services for $350M". Philadelphia Business Journal. Sandy Smith. Retrieved 2016-10-07.
  31. ↑ "46 Universal Health Services Facilities Recognized by The Joint Commission". UHS News & Press Releases. Universal Health Services. 2015-11-17. Retrieved 2016-10-07.
  32. ↑ Usufzy, Pashtana (2016-08-17). "Universal Health Services buys Desert View Hospital in Pahrump". Las Vegas Review-Journal. News + Media Capital Group LLC. Retrieved 2016-10-07.
  33. ↑ "Form 10-K: ITEM 2. Properties". EDGAR. U.S. Securities and Exchange Commission. 2016-02-25. Retrieved 2016-10-08.
  34. ↑ Dunn, Lindsey (28 September 2010). "UHS Reaches Agreement With CMS, California Department of Health to Keep Southwest Healthcare System's License". Becker's Hospital Review. Retrieved 28 September 2010.
  35. ↑ Oh, Jaimie (2011-11-08). "CMS: Two Southwest Healthcare Hospitals Back in Compliance". Becker's ASC Review. Retrieved 2016-10-07.
  36. ↑ Vogel, Ed (2012-08-19). "Same-sex couple in Henderson upset with hospital's treatment". Las Vegas Review-Journal. News + Media Capital Group LLC. Retrieved 2015-04-16.
  37. ↑ "The Department of Health and Human Services and The Department of Justice Health Care Fraud and Abuse Control Program Annual Report for Fiscal Year 2012" (PDF). Justice.gov. Retrieved 2015-04-24.

External links

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