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BULLETIN:Universal Health Services Reports $40 Million Noncash Charge to 4th Quarter Earnings Dec 01
Standard & Poors, Dec 2001
Abstract
Universal Health Services Inc. (UHS) (BBB-/Positive/--) announced that, in the fourth quarter 2001, it will take a $40 million noncash charge to earnings related to the potential liquidation of PHICO, Universal's malpractice insurance provider. The charge is a result of UHS's decision to establish a special reserve fund in the event that PHICO is liquidated and UHS becomes exposed to malpractice claims. Should UHS need to make cash payments from claims due to this exposure, it is likely that the payments would be spread out (estimated by the company) over a five- to eight-year period. Furthermore, UHS would incur higher annual malpractice insurance expenses, currently estimated to be $25 million annually beginning in 2002. Given their limited impact on cash...
Companies mentioned in this report are: Universal Health Services Inc.
Action: S&P Event
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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