Universal Health Shares Fall Following 3Q Report

NEW YORK (AP) — Shares of hospital operator Universal Health Services Inc. fell Friday, despite a mostly positive third-quarter profit report showing admissions growth and revenue increases.

But, both charity care costs and bad debt grew in at the company's acute care facilities. Bad debt refers to patients' bills that are unlikely to be repaid.

The stock fell $3.04, or 5 percent, to $57.68 in late morning trading. Shares have traded between $30.43 and $66.64 over the last 52 weeks.

On Thursday, the company said profit rose 38 percent to $51.1 million, or $1.03 per share, from $37 million, or 73 cents per share, a year ago. Revenue rose 4 percent, to just under $1.3 billion from $1.24 billion.

Analysts polled by Thomson Reuters expected profit of 88 cents per share on revenue of $1.28 billion.

Admissions at behavioral health hospitals grew 2.1 percent, and revenue per adjusted patient day increased 2.2 percent. At its acute care hospitals, adjusted admissions rose a half-percent while revenue per adjusted admission increased 2.6 percent.