July 28 (Reuters) - U.S. hospital operator Universal Health Services UHS.N beat Wall Street estimates for second-quarter profit on Monday, driven by sustained demand for medical care services.
Health insurers have flagged elevated demand and costs in individual Affordable Care Act (Obamacare) and Medicaid plans for low-income individuals, which could benefit hospital operators.
Last week, larger peer HCA Healthcare HCA.N beat quarterly profit estimates but saw its shares decline amid concerns over impending changes to Medicaid and Obamacare insurance plans under the Trump administration.
Universal Health's same-facility adjusted admissions increased by 2% at acute care hospitals during the quarter, while admissions at behavioral healthcare facilities grew by 0.4%.
The company now sees its 2025 revenue to be between $17.10 billion and $17.31 billion, compared to the previously expected range of $17.02 billion to $17.36 billion.
Analysts, on average, expect 2025 revenue of $17.14 billion, according to data compiled by LSEG data.
For the quarter ended June 30, the King Of Prussia, Pennsylvania-based company reported an adjusted profit of $5.43 per share, beating estimates of $4.92 per share.
Investors are currently focused on how hospital operators will address potential tariffs affecting global supply chains for medical devices and surgical equipments.
The sector is also preparing for the expiry of Obamacare subsidies next year, a change expected to impact patient coverage, raise insurance premiums and reduce enrollment numbers, potentially leaving hospitals responsible for increased uncompensated care costs.
(Reporting by Christy Santhosh in Bengaluru; Editing by Mohammed Safi Shamsi)
((Christy.Santhosh@thomsonreuters.com;))
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