UHS Profits Increase 30%, Despite $21 Million Bad Debt Set Aside

United Health Services said today it set aside $120.9 million for doubtful accounts in its first quarter ended March 31, up from $99 million during the year ago period. The King of Prussia, Pa.-based hospital operator said it also provided $151 million in charity care and uninsured discounts, compared to $127 million in the year earlier.

Despite the increased expenses, United Health Services said it profits increased 30 percent to $61.7 million or $1.20 a share, in the quarter, up from $49.5 million or 92 cents a share. Excluding items related to hurricane expenses and a gain from the sale of land, UHS earned 89 cents per share, meeting analysts’ expectations. Net revenues increased 8 percent to $1.3 billion in the quarter versus $1.2 billion a year earlier.

UHS’s Behavioral Health Care business continued to perform strong. The company said inpatient admissions rose 8 percent during the quarter and patient days in hospital rose 6.3 percent.

UHS forecast 2008 earnings would come in between $3.70 to $3.80 per share.