What are Universal Health Services’ major markets in 3Q14?
Key takeaways from Universal Health Services' 3Q14 earnings (Part 2 of 9)
Market breakup
Geographic location is one of the major factors that affects the healthcare industry’s (XLV) performance. It’s important to understand the healthcare industry’s market breakup. With an overall improvement in the economic and demographic indicators, for-profit hospital operators like—HCA Holdings (HCA), Community Health Systems (CYH), Universal Health Services (UHS), and Tenet Healthcare (THC)—recorded better financial performance in the first nine months of 2014, compared to the first nine months in 2013.
For more information on economic and social factors that affect hospital performance, please refer to The key economic and social factors affecting hospital revenues.
The above chart shows that Universal Health Services derives more than half of its total revenues from Texas, California, Florida, and Nevada. The company earns about 19% of its revenues from other states in the US. It earns its revenue from a total of 25 states and the US Virgin Islands. Each state contributes less than 2% revenue. Universal Health Services’ facilities are concentrated in regions with high economic growth.
Texas
In the south Texas market, especially in Hidalgo County, Universal Health Services is a market share leader. It occupies 25% of the market. The company has three acute care hospitals and one behavioral health hospital in the region. It plans to open two freestanding emergency departments in early 2015.
Nevada
Universal Health Services has a stronghold in the market in Las Vegas, Nevada. It has five acute care hospitals and two behavioral health hospitals. The company also plans to open the Henderson hospital in southeast Las Vegas in late 2016.
Washington, DC
The company operates George Washington University Hospital. The facility has 371 beds. It also operates the Psychiatric Institute of Washington, or PIW. It’s a behavioral healthcare facility and outpatient treatment center in Washington, DC. The facility has 124 beds. Universal Health Services enjoys national brand-name recognition in this highly populated market.
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