Universal Health Services: Aging Population, Rising Healthcare Costs Won't Be A Problem 'If The Economy Picks Up'

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Healthcare provider Universal Health Services, Inc. UHS reported strong second-quarter results on Thursday. Both EPS of $1.85 (adjusted for non-reoccurring costs) and revenue of $2.28 came significantly above Wall Street's expectations of EPS of $1.65 on revenue of $2.18 billion.

Alan Miller, Universal Health Services CEO, was on CNBC recently to weigh in on the rising healthcare costs and how an economic improvement will help in reducing the impact of it.

Lots Of Winners

"There will be many millions more that will have coverage as the rest of the program rolls out," Miller. "So, that's good for providers. It's good for the people that haven't had coverage before. So, there are a lot of winners in this regard.

If Economy Picks Up...

Miller was asked what he thinks about the recent study done by Centers for Medicare & Medicaid Services (CMS), which confirmed the notion that healthcare costs are rising at a tremendous pace compared to the relatively slower growth in wages. He was asked in particular if healthcare spending will soon total 20 percent of U.S. GDP. He replied, "What you really have to look at is if the economy picks up. We have had a poor economy for a number of years; it's limping along. If the economy picks up, then we will have more people working, will be generating more GDP and it won't be as big a problem."

He explained further, "I certainly can't tell whether that 20 percent is accurate or not. But what we have to focus on is the economy. And if that happens, then the other things will take care of themselves. We do have an aging population.

"The country is also growing and more people, more coverage – so, more expense. But, if you look at the statistics of what is happening with regard to that expenditure, people are living longer and living better," Miller concluded.

Image Credit: Public Domain
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Posted In: CNBCHealth CareMediaGeneralAlan Miller
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