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Universal Health Services, Inc. Reports 2007 Second Quarter Earnings

KING OF PRUSSIA, Pa., July 26 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income was $52.1 million, or $.97 per diluted share, during the second quarter of 2007 as compared to $60.3 million, or $1.04 per diluted share, during the comparable prior year quarter. Reported income from continuing operations was $52.0 million, or $.97 per diluted share, during the second quarter of 2007 as compared to $60.9 million, or $1.05 per diluted share, during the second quarter of 2006.

For the six months ended June 30, 2007, reported net income was $101.6 million, or $1.89 per diluted share, as compared to $111.3 million, or $1.93 per diluted share, during the comparable six-month period in the prior year. Reported income from continuing operations was $101.6 million, or $1.89 per diluted share, during the first six months of 2007 as compared to $111.4 million, or $1.93 per diluted share, during the comparable six-month period of the prior year.

After adjusting for the items mentioned below, and/or as indicated on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule"), our adjusted income from continuing operations was $42.6 million, or $.79 per diluted share, during the second quarter of 2007 as compared to $44.5 million, or $.78 per diluted share, during the comparable prior year quarter. During the six months ended June 30, 2007, our adjusted income from continuing operations was $90.6 million, or $1.69 per diluted share, as compared to $86.0 million, or $1.51 per diluted share, during the comparable six-month period of the prior year.

As indicated on the Supplemental Schedules, included in our income from continuing operations and net income during the three and six-month periods ended June 30, 2007, was $10.0 million, or $.19 per diluted share, representing the prior year impact of a favorable after-tax adjustment to reduce our professional and general liability self-insurance reserves based upon the results of a third-party actuarial analysis. Included in our income from continuing operations and net income during the three-month period ended June 30, 2006 was: (i) $12.8 million, or $.21 per diluted share, of after-tax income resulting from hurricane insurance recoveries, net of hurricane related expenses, and; (ii) $3.6 million, or $.06 per diluted share, of after-tax income resulting from the settlement of prior period cost reports. Included in our income from continuing operations and net income during the six month- period ended June 30, 2006 was: (i) $21.8 million, or $.36 per diluted share, of after-tax income resulting from hurricane insurance recoveries, net of hurricane related expenses, and; (ii) $3.6 million, or $.06 per diluted share, of after-tax income resulting from the settlement of prior period cost reports.

Net revenues increased 13% to $1.18 billion during the second quarter of 2007 as compared to $1.05 billion during the second quarter of 2006. Net revenues increased 14% to $2.38 billion during the first six months of 2007 as compared to $2.08 billion during the comparable six-month period of the prior year. Our consolidated operating margin, as calculated on the attached Supplemental Schedules, was 14.4% and 14.5% during the three-month periods ended June 30, 2007 and 2006, respectively, and 14.2% and 14.0% during the six-month periods ended June 30, 2007 and 2006, respectively.

At our acute care hospitals owned during both periods ("same facility basis"), inpatient admissions increased 1.9% and patient days increased 2.3% during the second quarter of 2007 as compared to the second quarter of 2006. On a same facility basis, net revenues at our acute care facilities increased 6% during the second quarter of 2007 as compared to the comparable prior year quarter. Net revenue per adjusted admission at these facilities increased 1.7% during the second quarter of 2007 over the comparable prior year quarter. The operating margin at our acute care hospitals owned during both periods decreased to 13.0% during the second quarter of 2007 as compared to 13.5% during the second quarter of 2006.

At our behavioral health facilities, on a same facility basis, inpatient admissions increased 3.5% and patient days increased 3.6% during the second quarter of 2007 as compared to the second quarter of 2006. On a same facility basis, net revenues at our behavioral health facilities increased 7% during the second quarter of 2007 as compared to the comparable prior year quarter. Net revenue per adjusted admission at these facilities increased 3.3% during the second quarter of 2007 over the comparable prior year quarter. The operating margin at our behavioral health facilities owned during both periods increased to 25.5% during the second quarter of 2007 as compared to 25.2% during the second quarter of 2006.

At our acute care hospitals, on a same facility basis, inpatient admissions increased 3.4% and patient days increased 3.5% during the six months ended June 30, 2007 as compared to the comparable prior year period. Net revenues at these facilities increased 9% during the first six months of 2007 as compared to the comparable prior year period. Net revenue per adjusted admission at these facilities increased 3.7% during the six months ended June 30, 2007 over the comparable prior year period. The operating margin at our acute care hospitals owned during both periods increased to 14.3% during the first six months of 2007 as compared to 14.1% during the comparable prior year period.

At our behavioral health facilities, on a same facility basis, inpatient admissions increased 3.3% and patient days increased 3.5% during the six months ended June 30, 2007 as compared to the comparable prior year period. On a same facility basis, net revenues at our behavioral health facilities increased 6% during the six months ended June 30, 2007 as compared to the comparable prior year period. Net revenue per adjusted admission at these facilities increased 2.5% during the first six months of 2007 over the comparable prior year period. The operating margin at our behavioral health facilities owned during both periods increased to 24.4% during the first six months of 2007 as compared to 24.3% during the comparable prior year period.

Effective July 1, 2006, the pharmacy services for our acute care facilities were brought in-house from an outsourced vendor. As a result of this change, we experienced an increase in our supplies expense and salaries, wages and benefits expense and a decrease in our other operating expenses during the three and six months ended June 30, 2007, as compared to the comparable prior year periods. The transition of our pharmacy services favorably impacted our pre-tax income by approximately $2 million and $4 million during the three and six-month periods ended June 30, 2007.

We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on July 27, 2007. The dial-in number is 1-877-648-7971. A digital recording of the conference call will be available two hours after the completion of the conference call on July 27, 2007 and will continue through midnight on August 10, 2007. The recording can be accessed by calling 1-800- 642-1687 and entering the conference ID number 6469379. This call will also be available live over the internet at our web site at www.uhsinc.com. It will also be distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at http://www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com).

Universal Health Services, Inc. is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT). For additional information on the Company, visit our web site: http://www.uhsinc.com.

This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors and in Item 7-Forward-Looking Statements and Risk Factors in our Form 10-K for the year ended December 31, 2006), may cause results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine our future results are beyond our capability to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

We believe that operating income, operating margin, adjusted income from continuing operations, adjusted income from continuing operations per diluted share, adjusted net income, adjusted net income per diluted share and earnings before interest, taxes, depreciation and amortization ("EBITDA"), which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of items that are nonrecurring or non-operational in nature including items such as, but not limited to, gains on sales of assets and businesses, hurricane-related expenses and insurance recoveries and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-Q for the quarter ended March 31, 2007 and our Report on Form 10-K for the year ended December 31, 2006. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.


                         Universal Health Services, Inc.
                        Consolidated Statements of Income
                     (in thousands, except per share amounts)
                                   (unaudited)

                                    Three months             Six months
                                   ended June 30,          ended June 30,
                                  2007        2006        2007        2006

    Net revenues               $1,178,976  $1,047,673  $2,376,577  $2,081,962

    Operating charges:
     Salaries, wages and
      benefits                    498,579     434,756   1,009,572     876,988
     Other operating
      expenses                    238,093     248,956     483,445     497,057
     Supplies expense             169,246     124,814     344,604     253,327
     Provision for doubtful
      accounts                    103,039      87,182     202,132     162,189
     Depreciation and
      amortization                 45,406      40,369      88,869      79,399
     Lease and rental
      expense                      16,605      15,831      32,781      32,063
     Hurricane related
      expenses, net                 1,058       3,356         625      10,260
     Hurricane insurance
      recoveries                      -        (3,356)        -       (10,260)
                                1,072,026     951,908   2,162,028   1,901,023

    Income before interest
     expense, hurricane insurance
     recoveries in excess of
     expenses, minority interests
     and income taxes             106,950      95,765     214,549     180,939

    Interest expense, net          13,040       8,697      25,762      17,222
    Hurricane insurance
     recoveries in excess of
     expenses                         -       (21,644)        -       (37,031)
    Minority interests in
     earnings of consolidated
     entities                       8,675      11,492      22,867      22,669

    Income before income taxes     85,235      97,220     165,920     178,079

    Provision for income taxes     33,193      36,349      64,306      66,716

    Income from continuing
     operations                    52,042      60,871     101,614     111,363

    Income (loss) from
     discontinued operations,
     net of income tax
     expense/(benefit) (a)             29        (612)        (35)        (20)

    Net income                    $52,071     $60,259    $101,579    $111,343

    Basic earnings (loss) per
     share: (b)
     From continuing operations     $0.97       $1.13       $1.90       $2.07
     From discontinued operations    0.00       (0.01)       0.00        0.00
      Total basic earnings per
       share                        $0.97       $1.12       $1.90       $2.07

    Diluted earnings (loss)
     per share: (b)
     From continuing operations     $0.97       $1.05       $1.89       $1.93
     From discontinued operations    0.00       (0.01)       0.00        0.00
      Total diluted earnings per
       share                        $0.97       $1.04       $1.89       $1.93


                         Universal Health Services, Inc.
                  Footnotes to Consolidated Statements of Income
                     (in thousands, except per share amounts)
                                   (unaudited)

                                             Three months        Six months
                                            ended June 30,     ended June 30,
                                            2007     2006      2007      2006

    (a) Calculation of income from
     discontinued operations, net of
     income tax:

    Income (loss) from operations            $46    ($972)     ($56)     ($32)
    Income tax (provision) benefit           (17)     360        21        12
    Income (loss) from discontinued
     operations, net of taxes                $29    ($612)     ($35)     ($20)


    (b) Earnings per share calculation:

    Basic:
    Income from continuing operations    $52,042  $60,871  $101,614  $111,363
    Less: Dividends on unvested
     restricted stock, net of taxes          (19)     (21)      (44)      (43)
    Income from continuing operations -
     basic                               $52,023  $60,850  $101,570  $111,320
    Income (loss) from discontinued
     operations                               29     (612)      (35)      (20)
    Net income - basic                   $52,052  $60,238  $101,535  $111,300

    Weighted average number of common
     shares - basic                       53,499   53,730    53,496    53,749

    Basic earnings (loss) per share:
     From continuing operations            $0.97    $1.13     $1.90     $2.07
     From discontinued operations           0.00    (0.01)     0.00      0.00
      Total basic earnings per share       $0.97    $1.12     $1.90     $2.07

    Diluted:
    Income from continuing operations    $52,042  $60,871  $101,614  $111,363
    Less: Dividends on unvested
     restricted stock, net of taxes          (19)     (21)      (44)      (43)
    Add: Debenture interest, net of
     taxes                                   -      2,445       -       4,902
    Income from continuing operations -
     diluted                             $52,023  $63,295  $101,570  $116,222
    Income (loss) from discontinued
     operations                               29     (612)      (35)      (20)
    Net income - diluted                 $52,052  $62,683  $101,535  $116,202

    Weighted average number of common
     shares                               53,499   53,730    53,496    53,749
    Add: Shares for conversion of
     convertible debentures                  -      5,999       -       6,286
     Other share equivalents                 229      258       211       237
    Weighted average number of common
     shares and equiv. - diluted          53,728   59,987    53,707    60,272

    Diluted earnings (loss) per share:
     From continuing operations            $0.97    $1.05     $1.89     $1.93
     From discontinued operations           0.00    (0.01)     0.00      0.00
      Total diluted earnings per
       share                               $0.97    $1.04     $1.89     $1.93


                         Universal Health Services, Inc.
       Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                      Information ("Supplemental Schedule")
                For the Three Months Ended June 30, 2007 and 2006
                     (in thousands, except per share amounts)
                                   (unaudited)

                                       Three months ended  Three months ended
                                         June 30, 2007       June 30, 2006


    Net revenues                       $1,178,976  100.0%  $1,047,673  100.0%

    Operating charges:
     Salaries, wages and benefits         498,579   42.3%     434,756   41.5%
     Other operating expenses             238,093   20.2%     248,956   23.8%
     Supplies expense                     169,246   14.4%     124,814   11.9%
     Provision for doubtful accounts      103,039    8.7%      87,182    8.3%
                                        1,008,957   85.6%     895,708   85.5%

    Operating income/margin               170,019   14.4%     151,965   14.5%

     Lease and rental expense              16,605              15,831
     Minority interests in earnings
      of consolidated entities              8,675              11,492

    Earnings before hurricane related
     expenses, hurricane insurance
     recoveries, depreciation and
     amortization, interest expense,
     and income taxes ("EBITDA")          144,739             124,642

     Hurricane related expenses, net
      of insurance recoveries               1,058             (21,644)
     Depreciation and amortization         45,406              40,369
     Interest expense, net                 13,040               8,697

    Income before income taxes             85,235              97,220

    Provision for income taxes             33,193              36,349

    Income from continuing operations      52,042              60,871

    Income (loss) from discontinued
     operations, net of income taxes           29                (612)

    Net income                            $52,071             $60,259

                                       Three months ended  Three months ended
                                         June 30, 2007       June 30, 2006
                                                    Per                 Per
                                         Amount   Diluted    Amount   Diluted
                                                   Share               Share
    Calculation of Adjusted Income
     from Continuing Operations
    Income from continuing operations     $52,042   $0.97     $60,871   $1.05
    Plus/minus adjustments:
     Hurricane related expenses, net
      of recoveries, minority
      interests and income taxes              652    0.01     (12,817)  (0.21)
     Reduction of reserve for
      professional and general
      liability self-insured claims,
      net of minority interests
      and income taxes                    (10,045)  (0.19)
     Favorable effect of prior
      period cost report
      settlements, net of income taxes                         (3,593)  (0.06)
    Subtotal after-tax adjustments to
     income from continuing operations     (9,393)  (0.18)    (16,410)  (0.27)
    Adjusted income from continuing
     operations                           $42,649   $0.79     $44,461   $0.78

    Calculation of Adjusted Net Income
    Net income                            $52,071   $0.97     $60,259   $1.04
    After-tax adjustments to income
     from continuing operations, as
     indicated above                       (9,393)  (0.18)    (16,410)  (0.27)
    Adjusted net income                   $42,678   $0.79     $43,849   $0.77


                         Universal Health Services, Inc.
       Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                      Information ("Supplemental Schedule")
                 For the Six Months Ended June 30, 2007 and 2006
                     (in thousands, except per share amounts)
                                   (unaudited)

                                        Six months ended    Six months ended
                                         June 30, 2007       June 30, 2006

    Net revenues                       $2,376,577  100.0%  $2,081,962  100.0%

    Operating charges:
     Salaries, wages and benefits       1,009,572   42.5%     876,988   42.1%
     Other operating expenses             483,445   20.3%     497,057   23.9%
     Supplies expense                     344,604   14.5%     253,327   12.2%
     Provision for doubtful accounts      202,132    8.5%     162,189    7.8%
                                        2,039,753   85.8%   1,789,561   86.0%

    Operating income/margin               336,824   14.2%     292,401   14.0%

     Lease and rental expense              32,781              32,063
     Minority interests in earnings
      of consolidated entities             22,867              22,669

    Earnings before hurricane related
     expenses, hurricane insurance
     recoveries, depreciation and
     amortization, interest expense,
     and income taxes ("EBITDA")          281,176             237,669

     Hurricane insurance recoveries
      in excess of expenses                   625             (37,031)
     Depreciation and amortization         88,869              79,399
     Interest expense, net                 25,762              17,222

    Income before income taxes            165,920             178,079

    Provision for income taxes             64,306              66,716

    Income from continuing operations     101,614             111,363

    (Loss) income from discontinued
     operations, net of income taxes          (35)                (20)

    Net income                           $101,579            $111,343

                                        Six months ended    Six months ended
                                         June 30, 2007       June 30, 2006
                                                    Per                 Per
                                         Amount   Diluted     Amount  Diluted
                                                   Share               Share
    Calculation of Adjusted Income
     from Continuing Operations
    Income from continuing operations    $101,614   $1.89    $111,363   $1.93
    Plus/minus adjustments:
     Hurricane related expenses, net
      of recoveries, minority
      interests and income taxes              386    0.01     (21,798)  (0.36)
     Gain on sale of real property,
      net of income taxes                  (1,356)  (0.02)
     Reduction of reserve for professional
      and general liability self-insured
      claims,                                                     -       -
       net of minority interests
        and income taxes                  (10,045)  (0.19)
     Favorable effect of prior
      period cost report settlements,
      net of income taxes                     -       -        (3,593)  (0.06)
    Subtotal after-tax adjustments to
     income from continuing operations    (11,015)  (0.20)    (25,391)  (0.42)
    Adjusted income from continuing
     operations                           $90,599   $1.69     $85,972   $1.51

    Calculation of Adjusted Net Income
    Net income                           $101,579   $1.89    $111,343   $1.93
    After-tax adjustments to income
     from continuing operations, as
     indicated above                      (11,015)  (0.20)    (25,391)  (0.42)
    Adjusted net income                   $90,564   $1.69     $85,952   $1.51


                         Universal Health Services, Inc.
                      Condensed Consolidated Balance Sheets
                                 (in thousands)
                                   (unaudited)

                                                 June 30,        December 31,
                                                   2007              2006

    Assets:
    Cash and cash equivalents                      $12,663           $14,939
    Accounts receivable, net                       647,852           595,009
    Other current assets                           141,268           118,558
    Property, plant and equipment, net           1,840,847         1,685,085
    Other assets                                   890,309           863,451
    Total Assets                                $3,532,939        $3,277,042

    Liabilities and Stockholders' Equity:
    Current portion of long-term debt               $3,014            $1,938
    Other current liabilities                      492,384           500,513
    Other noncurrent liabilities                   342,872           340,815
    Long-term debt                                 951,060           821,363
    Deferred income taxes                           29,062            35,888
    Minority interest                              199,773           174,061
    Stockholders' equity                         1,514,774         1,402,464
    Total Liabilities and Stockholders' Equity  $3,532,939        $3,277,042


                         Universal Health Services, Inc.
                      Consolidated Statements of Cash Flows
                                 (in thousands)
                                   (unaudited)
                                                         Six months
                                                        ended June 30,
                                                   2007              2006

    Cash Flows from Operating Activities:
     Net income                                   $101,579          $111,343
     Adjustments to reconcile net income
      to net cash provided by operating
      activities:
      Depreciation & amortization                   88,888            79,399
      Accretion of discount on convertible
       debentures                                      -               6,364
      Gain on sale of assets                        (2,200)              -
      Hurricane insurance recoveries                   -             (47,291)
     Changes in assets & liabilities, net of
      effects from acquisitions and dispositions:
      Accounts receivable                          (36,291)          (46,618)
      Accrued interest                               9,260              (488)
      Accrued and deferred income taxes             (7,368)           57,195
      Other working capital accounts                  (125)           (6,702)
      Other assets and deferred charges             (3,783)             (856)
      Other                                         (1,240)            7,884
      Minority interest in earnings of
       consolidated entities, net of distributions   9,260            10,734
      Accrued insurance expense, net of
       commercial premiums paid                     23,395            41,173
      Payments made in settlement of
       self-insurance claims                       (22,399)          (23,065)
       Net cash provided by operating activities   158,976           189,072

    Cash Flows from Investing Activities:
     Property and equipment additions,
      net of disposals                            (184,587)         (152,673)
     Proceeds received from sale of
      assets                                         5,268               -
     Acquisition of assets and
      businesses                                   (81,195)          (14,250)
     Hurricane insurance recoveries received           -              53,000
     Purchase of minority ownership
      interest in majority owned business          (14,762)              -
      Net cash used in investing activities       (275,276)         (113,923)

    Cash Flows from Financing Activities:
     Additional borrowings                         116,271           248,645
     Reduction of long-term debt                       -            (140,824)
     Repurchase of common shares                    (3,341)          (71,008)
     Dividends paid                                 (8,621)           (8,620)
     Issuance of common stock                        1,444             2,638
     Financing costs                                   -              (1,625)
     Net cash received for termination
      of derivatives                                   -               3,393
     Capital contributions from
      minority member                                8,271             8,639
      Net cash provided by financing activities    114,024            41,238

    (Decrease) Increase in cash and cash
     equivalents                                    (2,276)          116,387
    Cash and cash equivalents, beginning
     of period                                      14,939             7,963
    Cash and cash equivalents, end of
     period                                        $12,663          $124,350

    Supplemental Disclosures of Cash Flow
     Information:
     Interest paid                                 $20,216           $18,019

     Income taxes paid, net of refunds             $71,410            $9,559


                        Universal Health Services, Inc.
                     Supplemental Statistical Information
                                  (unaudited)


                                         % Change         % Change
                                       Quarter Ended    6 months ended
    Same Facility:                       06/30/2007       06/30/2007

    Acute Care Hospitals
    Revenues                                5.8%             8.6%
    Adjusted Admissions                     4.0%             4.7%
    Adjusted Patient Days                   4.4%             4.8%
    Revenue Per Adjusted Admission          1.7%             3.7%
    Revenue Per Adjusted Patient Day        1.3%             3.6%


    Behavioral Health Hospitals

    Revenues                                6.5%             6.1%
    Adjusted Admissions                     3.1%             3.4%
    Adjusted Patient Days                   3.3%             3.7%
    Revenue Per Adjusted Admission          3.3%             2.5%
    Revenue Per Adjusted Patient Day        3.1%             2.3%


    UHS Consolidated          Second Quarter Ended       Six months Ended
                            06/30/2007   06/30/2006   06/30/2007  06/30/2006

    Revenues                 $1,178,976   $1,047,673   $2,376,577 $2,081,962
    EBITDA   (1)                144,739      124,642      281,176    237,669
    EBITDA Margin (1)             12.3%        11.9%        11.8%      11.4%

    Cash Flow From
     Operations                  60,000       78,732      158,976    189,072
    Days Sales Outstanding           50           47           49         47
    Capital Expenditures         85,238       69,485      184,587    152,673

    Debt                                                  954,074    468,930
    Shareholders Equity                                 1,514,774  1,530,968
    Debt / Total
     Capitalization                                         38.6%      23.4%
    Debt / Cash From
     Operations  (2)                                         6.86       1.22


    Acute Care EBITDAR
     Margin  (3) (4)              14.7%        14.2%        14.9%      14.4%
    Behavioral Health
     EBITDAR Margin  (3) (4)      25.2%        25.0%        23.8%      24.1%


    (1)  Net of Minority Interest
    (2)  Latest 4 quarters
    (3)  Before Corporate overhead allocation and minority interest
    (4)  Excluding discontinued operations


                           UNIVERSAL HEALTH SERVICES, INC.
                             SELECTED HOSPITAL STATISTICS
                              FOR THE THREE MONTHS ENDED
                                    JUNE 30, 2007

           AS REPORTED:
                                                                ACUTE(1)
                                              06/30/07      06/30/06  % change

           Hospitals owned and leased               22            21     4.8%
           Average licensed beds                 5,498         5,014     9.7%
           Patient days                        286,702       267,945     7.0%
           Average daily census                3,150.6       2,944.5     7.0%
           Occupancy-licensed beds               57.3%         58.7%    -2.4%
           Admissions                           64,139        60,551     5.9%
           Length of stay                          4.5           4.4     1.0%

           Inpatient revenue                $2,092,069    $1,853,383    12.9%
           Outpatient revenue                  897,359       720,893    24.5%
           Total patient revenue             2,989,428     2,574,276    16.1%
           Other revenue                        15,110        14,341     5.4%
           Gross hospital revenue            3,004,538     2,588,617    16.1%

           Total deductions                  2,150,866     1,812,641    18.7%

           Net hospital revenue               $853,672      $775,976    10.0%


           SAME FACILITY:
                                                               ACUTE(2)
                                              06/30/07      06/30/06  % change

           Hospitals owned and leased               21            21     0.0%
           Average licensed beds                 5,183         5,014     3.4%
           Patient days                        274,147       267,940     2.3%
           Average daily census                3,012.6       2,944.4     2.3%
           Occupancy-licensed beds               58.1%         58.7%    -1.0%
           Admissions                           61,719        60,551     1.9%
           Length of stay                          4.4           4.4     0.4%


        (1) Does not include discontinued operations. Licensed beds from our
            Acute care hospitals located in New Orleans are excluded in 2006
            and 2007.
        (2) Discontinued operations, acute care hospitals located in New
            Orleans and Texoma are excluded in current and prior years.
        (3) Academy at Canyon Creek, Casa de Lago, Cedar Ridge RTC, Cedar
            Ridge Hospital, Dover Behavioral, Highlands Behavioral, Lincoln
            Trail, North Star RTC and Spring Mountain Sahara are excluded in
            both current and prior years.


                           UNIVERSAL HEALTH SERVICES, INC.
                             SELECTED HOSPITAL STATISTICS
                              FOR THE THREE MONTHS ENDED
                                    JUNE 30, 2007

            AS REPORTED:
                                                        BEHAVIORAL HEALTH
                                             06/30/07     06/30/06    % change

            Hospitals owned and leased             82           75       9.3%
            Average licensed beds               7,258        6,439      12.7%
            Patient days                      501,482      466,554       7.5%
            Average daily census              5,510.8      5,127.0       7.5%
            Occupancy-licensed beds             75.9%        79.6%      -4.6%
            Admissions                         29,707       27,974       6.2%
            Length of stay                       16.9         16.7       1.2%

            Inpatient revenue                $452,963     $418,824       8.2%
            Outpatient revenue                 59,443       53,522      11.1%
            Total patient revenue             512,406      472,346       8.5%
            Other revenue                       6,632        8,471     -21.7%
            Gross hospital revenue            519,038      480,817       7.9%

            Total deductions                  232,185      221,199       5.0%

            Net hospital revenue             $286,853     $259,618      10.5%


            SAME FACILITY:
                                                      BEHAVIORAL HEALTH(3)
                                             06/30/07     06/30/06    % change

            Hospitals owned and leased             73           73       0.0%
            Average licensed beds               6,720        6,363       5.6%
            Patient days                      477,923      461,261       3.6%
            Average daily census              5,251.9      5,068.8       3.6%
            Occupancy-licensed beds             78.2%        79.7%      -1.9%
            Admissions                         28,588       27,621       3.5%
            Length of stay                       16.7         16.7       0.1%


        (1) Does not include discontinued operations. Licensed beds from our
            Acute care hospitals located in New Orleans are excluded in 2006
            and 2007.
        (2) Discontinued operations, acute care hospitals located in New
            Orleans and Texoma are excluded in current and prior years.
        (3) Academy at Canyon Creek, Casa de Lago, Cedar Ridge RTC, Cedar
            Ridge Hospital, Dover Behavioral, Highlands Behavioral, Lincoln
            Trail, North Star RTC and Spring Mountain Sahara are excluded in
            both current and prior years.


                           UNIVERSAL HEALTH SERVICES, INC.
                             SELECTED HOSPITAL STATISTICS
                               FOR THE SIX MONTHS ENDED
                                    JUNE 30, 2007

           AS REPORTED:
                                                                ACUTE(1)
                                              06/30/07      06/30/06  % change

           Hospitals owned and leased               22            21     4.8%
           Average licensed beds                 5,498         5,002     9.9%
           Patient days                        595,876       551,174     8.1%
           Average daily census                3,292.1       3,045.2     8.1%
           Occupancy-licensed beds               59.9%         60.9%    -1.6%
           Admissions                          132,905       123,718     7.4%
           Length of stay                          4.5           4.5     0.6%

           Inpatient revenue                $4,363,208    $3,794,538    15.0%
           Outpatient revenue                1,765,490     1,429,404    23.5%
           Total patient revenue             6,128,698     5,223,942    17.3%
           Other revenue                        29,561        27,676     6.8%
           Gross hospital revenue            6,158,259     5,251,618    17.3%

           Total deductions                  4,411,722     3,705,690    19.1%

           Net hospital revenue             $1,746,537    $1,545,928    13.0%


           SAME FACILITY:
                                                                ACUTE(2)
                                              06/30/07      06/30/06  % change

           Hospitals owned and leased               21            21     0.0%
           Average licensed beds                 5,183         5,002     3.6%
           Patient days                        570,313       551,199     3.5%
           Average daily census                3,150.9       3,045.3     3.5%
           Occupancy-licensed beds               60.8%         60.9%    -0.1%
           Admissions                          127,954       123,718     3.4%
           Length of stay                          4.5           4.5     0.0%


        (1) Does not include discontinued operations. Licensed beds from our
            Acute care hospitals located in New Orleans are excluded in 2006
            and 2007.
        (2) Discontinued operations, acute care hospitals located in New
            Orleans and Texoma are excluded in current and prior years.
        (3) Academy at Canyon Creek, Casa de Lago, Cedar Ridge RTC, Cedar
            Ridge Hospital, Dover Behavioral, Highlands Behavioral, Lincoln
            Trail, North Star RTC and Spring Mountain Sahara are excluded in
            both current and prior years.


                           UNIVERSAL HEALTH SERVICES, INC.
                             SELECTED HOSPITAL STATISTICS
                               FOR THE SIX MONTHS ENDED
                                    JUNE 30, 2007

           AS REPORTED:
                                                       BEHAVIORAL HEALTH
                                           06/30/07     06/30/06    %  change

           Hospitals owned and leased              75           75       0.0%
           Average licensed beds                7,158        6,419      11.5%
           Patient days                       982,835      918,439       7.0%
           Average daily census               5,430.0      5,074.2       7.0%
           Occupancy-licensed beds              75.9%        79.1%      -4.0%
           Admissions                          59,026       56,046       5.3%
           Length of stay                        16.7         16.4       1.6%

           Inpatient revenue                 $886,875     $828,224       7.1%
           Outpatient revenue                 119,088      106,796      11.5%
           Total patient revenue            1,005,963      935,020       7.6%
           Other revenue                       14,462       16,546     -12.6%
           Gross hospital revenue           1,020,425      951,566       7.2%

           Total deductions                   457,860      438,320       4.5%

           Net hospital revenue              $562,565     $513,246       9.6%


           SAME FACILITY:
                                                      BEHAVIORAL HEALTH(3)
                                           06/30/07     06/30/06    %  change

           Hospitals owned and leased              73           73       0.0%
           Average licensed beds                6,667        6,342       5.1%
           Patient days                       939,625      907,498       3.5%
           Average daily census               5,191.3      5,013.8       3.5%
           Occupancy-licensed beds              77.9%        79.1%      -1.5%
           Admissions                          57,155       55,313       3.3%
           Length of stay                        16.4         16.4       0.2%


        (1) Does not include discontinued operations. Licensed beds from our
            Acute care hospitals located in New Orleans are excluded in 2006
            and 2007.
        (2) Discontinued operations, acute care hospitals located in New
            Orleans and Texoma are excluded in current and prior years.
        (3) Academy at Canyon Creek, Casa de Lago, Cedar Ridge RTC, Cedar
            Ridge Hospital, Dover Behavioral, Highlands Behavioral, Lincoln
            Trail, North Star RTC and Spring Mountain Sahara are excluded in
            both current and prior years.

SOURCE Universal Health Services, Inc.

CONTACT: Steve Filton, Chief Financial Officer of Universal Health Services, Inc., +1-610-768-3300

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