University General Health System Reports Occupancy, Patient Days and Surgical
Volumes for First Half of 2014
Results Reflect Growth at Hospitals in Both Houston and Dallas
HOUSTON, TX -- (Marketwired) -- 07/22/14 -- University General
Health System, Inc. (OTCQB: UGHS) ("University General"), a
diversified, multi-specialty, integrated, physician-centric general
acute care regional health care delivery system, today reported
occupancies, patient days and surgical volumes for the six months
ended June 30, 2014 at its flagship Houston hospital ("UGH-Houston")
and its Dallas hospital ("UGH-Dallas"), which was acquired in
December 2012. UGH-Houston recorded an increase in average daily
census ("ADC") of 9%, reflecting an average of 41 patients per day
versus 38 for the same period in 2013, while adjusted patient days
(taking into account outpatient volumes) increased by 15%, from
10,515 during the first half of 2013 to 12,121 in the first six
months of 2014, and surgical volumes were flat at 4,342 procedures
versus 4,346 in the 2013 period.
UGH-Dallas also reported significant growth in ADC, which increased
from 18.6 in the first half of 2013 to 21.6 in the first half of
2014, an improvement of 16%. Adjusted patient days in Dallas
increased 47%, from 6,473 to 9,537, and surgical volumes rose from
865 to 1,833, for an increase of 112%.
"We are very pleased with the organic growth in Houston, despite the
maturity of our hospital in that market," stated Hassan Chahadeh, MD,
Chairman and Chief Executive Officer of University General Health
System, Inc. "UGH-Houston benefited from the recent execution of
agreements with Humana and United, and we expect such benefits to
continue for the balance of the year. In addition, we are pleased
with the continued development of our outpatient network and
inpatient growth at our Dallas hospital. However, we remain diligent
in pursuing further cost reductions and operating efficiencies at
"The Company previously announced the implementation of cost
containment measures that resulted in a reduction of $1,000,000 in
monthly expenses at the flagship Houston hospital during the first
half of 2014. The Company continues to pursue multiple paths for cost
reductions throughout the system as part of an overall plan to
improve its performance in 2014 when compared with 2013. Primarily
reflecting higher systemwide volumes, we expect 2014 EBITDA to show
improvement in Houston, while we have taken steps to suspend certain
unprofitable activities and eliminate non-core assets throughout our
health care network," continued Chahadeh.
"We are working diligently to complete our quarterly reports (both
the first and second quarters) in a timely manner, while focusing on
cash management as well as cost containment," stated Kris Trent, the
Company's Chief Financial Officer.
About University General Health System, Inc.
University General Health System, Inc. ("University General") is a
diversified, integrated multi-specialty health care provider that
delivers physician-centric, high quality patient-oriented services by
providing timely, innovative health solutions that are uniquely
competitive, efficient, and adaptive in today's health care delivery
environment. The Company currently operates two hospitals, multiple
ambulatory surgical centers, a number of diagnostic imaging, physical
therapy and sleep clinics, and a hyperbaric wound care center in the
Houston and Dallas metropolitan areas. Also, University General owns
three senior living facilities, manages six senior living facilities,
and owns a Support Services company that provides revenue cycle and
luxury facilities management services.
University General Health System, Inc. is headquartered in Houston,
Texas, and its common stock trades on the OTCQB under the symbol
The information in this news release may include certain
forward-looking statements that are based upon assumptions that in
the future may prove not to have been accurate and are subject to
significant risks and uncertainties, including statements related to
the future financial performance of University General Health System,
Inc. (UGHS). Although UGHS believes that the expectations reflected
in the forward-looking statements are reasonable, it can give no
assurance that such expectations or any of its forward-looking
statements will prove to be correct. Factors that could cause results
to differ include, but are not limited to, successful execution of
growth strategies, product development and acceptance, the impact of
competitive services and pricing, general economic conditions, and
other risks and uncertainties described in UGHS's periodic filings
with the Securities and Exchange Commission.
For Further Information, Please Contact:
University General Health System, Inc.
R. Jerry Falkner, CFA
RJ Falkner & Company, Inc.
Investor Relations Counsel
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