Universal Health Services, Inc. Discusses Medicare Outlier Revenues


KING OF PRUSSIA, Pa., Nov. 12 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. (NYSE: UHS) discussed today information regarding the revenues its acute care hospitals receive under the Medicare outlier payment program.

Alan B. Miller, the Company's Chairman and CEO, said, "Due to questions raised concerning Medicare outlier payments received by another hospital company, many investors and analysts have asked about UHS's receipt of outlier payments. In calendar year 2002, UHS hospitals are expected to receive outlier payments which in total will be less than 1% of UHS's consolidated net revenues. No UHS hospital receives outlier revenue based on a statewide average cost-to-charge ratio. Because of the increase in the outlier threshold effective October 1, 2002, outlier revenues in 2003 are expected to be approximately $12 million and amount to less than 0.5% of UHS's consolidated net revenues. The Company expects that approximately 2% of its Medicare cases will qualify for outlier reimbursement in 2003. The decrease in outlier payments in 2003 as compared to 2002 is expected to be more than offset by increased revenues resulting from adjustments to the inpatient prospective payment system which became effective on October 1, 2002. Given these facts, the Company has limited exposure to potential changes by CMS to the outlier formula."

Universal Health Services, Inc. is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory surgery and radiation centers nationwide, in Puerto Rico and in France. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT).

Certain statements in this release may constitute forward-looking statements and are subject to various risks and uncertainties as discussed in the Company's filings with Securities and Exchange Commission. The Company is not obligated to update these forward-looking statements even if the Company's assessment of these risks and uncertainties changes.

For additional information on the Company, visit our web site: http://www.uhsinc.com.

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SOURCE Universal Health Services, Inc.

-0- 11/12/2002

/CONTACT: Kirk E. Gorman, Chief Financial Officer of Universal Health Services, +1-610-768-3300/

/Company News On-Call: http://www.prnewswire.com/gh/cnoc/comp/916225.html/