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Universal Health Services, Inc. Reports 2007 Fourth Quarter and Full Year Earnings and 2008 Guidance

Consolidated Results of Operations

KING OF PRUSSIA, Pa., Feb. 28 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income was $40.0 million, or $.75 per diluted share, during the fourth quarter of 2007 as compared to $34.2 million, or $.63 per diluted share, during the comparable prior year quarter. For the year ended December 31, 2007, reported net income was $170.4 million, or $3.18 per diluted share, as compared to $259.5 million, or $4.56 per diluted share, during the prior year.

As indicated on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedules"), our income from continuing operations and net income for the three and twelve- month periods ended December 31, 2007 and 2006 include various items such as: (i) hurricane related expenses, net of recoveries, minority interests and income taxes; (ii) prior period effect of the recording or reserving of Texas Medicaid supplemental payments and cost reports settlements, net of income taxes; (iii) reserve for legal judgment and lawsuit, the write-down of the carrying-value of investment in a joint-venture and gain on sale of real property, net of income taxes; (iv) favorable income tax adjustments to reduce reserves due to the expiration of statute of limitations in various tax jurisdictions; (v) prior period effect of a favorable adjustment to reduce our professional and general liability self-insurance reserves based upon the results of a reserve analysis, net of minority interests and income taxes, and; (vi) a charge incurred during 2006 to record the aggregate present value of the future funding of a portion of a gift from our Chairman of the Board of Directors, Chief Executive Officer and President to The College of William & Mary ("W&M Funding").

After adjusting for the items discussed above applicable to each period presented, as indicated on the attached Supplemental Schedules, our adjusted net income during the three-month period ended December 31, 2007 was $39.6 million, or $.74 per diluted share, as compared to $32.4 million, or $.60 per diluted share, during the fourth quarter of 2006. Our adjusted net income during the year ended December 31, 2007 was $164.3 million, or $3.07 per diluted share, as compared to $157.3 million, or $2.79 per diluted share, during the prior year.

Net revenues increased 12% to $1.19 billion during the fourth quarter of 2007 as compared to $1.07 billion during the fourth quarter of 2006. Net revenues increased 13% to $4.75 billion during the year ended December 31, 2007 as compared to $4.19 billion during the prior year. Our consolidated operating margin, as calculated on the attached Supplemental Schedules (without adjusting for the various items mentioned above), was 12.9% and 12.3% during the three-month periods ended December 31, 2007 and 2006, respectively, and 13.1% during each of the years ended December 31, 2007 and 2006.

Acute Care Services:

At our acute care hospitals owned during both periods ("same facility basis"), inpatient admissions were unchanged and patient days decreased 1.4% during the fourth quarter of 2007 as compared to the fourth quarter of 2006. On a same facility basis, net revenues at our acute care facilities increased 7.6% during the fourth quarter of 2007 as compared to the comparable prior year quarter. Net revenue per adjusted admission at these facilities increased 4.8% during the fourth quarter of 2007 over the comparable prior year quarter. The operating margin at our acute care hospitals owned during both periods increased to 13.9% during the fourth quarter of 2007 as compared to 12.1% during the fourth quarter of 2006.

At our acute care hospitals, on a same facility basis, inpatient admissions increased 2.4% and patient days increased 2.1% during the year ended December 31, 2007 as compared to the prior year. Net revenues at these facilities increased 7.7% during 2007 as compared to 2006. Net revenue per adjusted admission at these facilities increased 3.3% during the year ended December 31, 2007 over the prior year. The operating margin at our acute care hospitals owned during both years increased to 13.8% during 2007 as compared to 13.4% during 2006.

We provide care to patients who meet certain financial or economic criteria without charge or at amounts substantially less than our established rates. Because we do not pursue collection of amounts determined to qualify as charity care, they are not reported in net revenues or in accounts receivable, net. Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $130 million and $117 million during the three-month periods ended December 31, 2007 and 2006, respectively, and $548 million and $443 million during the years ended December 31, 2007 and 2006, respectively.

Behavioral Health Care Services:

At our behavioral health facilities, on a same facility basis, inpatient admissions increased 7.3% and patient days increased 5.6% during the fourth quarter of 2007 as compared to the fourth quarter of 2006. On a same facility basis, net revenues at our behavioral health facilities increased 9.5% during the fourth quarter of 2007 as compared to the comparable prior year quarter. Net revenue per adjusted admission at these facilities increased 2.8% during the fourth quarter of 2007 over the comparable prior year quarter. The operating margin at our behavioral health facilities owned during both periods increased to 23.4% during the fourth quarter of 2007 as compared to 22.8% during the fourth quarter of 2006.

At our behavioral health facilities, on a same facility basis, inpatient admissions and patient days each increased 4.3% during the year ended December 31, 2007 as compared to the prior year. On a same facility basis, net revenues at our behavioral health facilities increased 7.4% during 2007 as compared to 2006. Net revenue per adjusted admission at these facilities increased 3.1% during 2007 over the prior year. The operating margin at our behavioral health facilities owned during both years was 23.6% during 2007 and 23.5% during 2006.

2008 Guidance:

During 2008, based upon current trends and subject to certain provisions and adjustments, including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures, we estimate that we will achieve earnings per diluted share from continuing operations of approximately $3.37 to $3.42 on projected net revenues of $5.13 billion.

During 2008, we expect to spend approximately $400 million to $425 million on capital expenditures, including approximately $240 million related to expenditures for capital equipment, renovations, new projects at existing hospitals and completion of major construction projects in progress at December 31, 2007.

Conference Call Information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on February 29, 2008. 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 February 29, 2008 and will continue through midnight on March 14, 2008. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 32133043. This call will also be available live over the internet at our web site at http://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 (http://www.streetevents.com).

General Information, Forward-Looking Statements and Risk Factors and Non- GAAP Financial Measures:

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, 2007), 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, reserves for legal judgments, lawsuits and other settlements 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-K for the year ended December 31, 2007. 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)

                                    Three months           Twelve months
                                 ended December 31,      ended December 31,
                                  2007        2006        2007        2006

    Net revenues               $1,194,211  $1,065,881  $4,751,005  $4,191,300

    Operating charges:
      Salaries, wages and
       benefits                   519,187     461,500   2,039,676   1,797,587
      Other operating expenses    248,828     228,026     997,807     936,958
      Supplies expense            168,811     156,431     675,757     556,702
      Provision for doubtful
       accounts                   103,378      88,940     415,961     349,030
      Depreciation and
       amortization                47,864      43,334     183,281     163,694
      Lease and rental expense     17,552      15,813      68,253      64,060
      Hurricane related
       expenses, net                 (493)       (640)        214      13,792
      Hurricane insurance
       recoveries                     -           -           -       (13,792)
                                1,105,127     993,404   4,380,949   3,868,031

    Income before interest
     expense, hurricane
     insurance recoveries
     in excess of expenses,
     minority interests and
     income taxes                  89,084      72,477     370,056     323,269
    Interest expense, net          12,983       9,196      51,626      32,558
    Hurricane insurance recoveries
     in excess of expenses            -           -           -      (167,999)
    Minority interests in
     earnings of consolidated
     entities                      10,710       8,621      43,361      46,238
    Income before income taxes     65,391      54,660     275,069     412,472
    Provision for income taxes     25,488      20,458     104,550     152,878
    Income from continuing
     operations                    39,903      34,202     170,519     259,594
    Income (loss) from
     discontinued operations,
     net of income tax
     benefit (a)                       51         (32)       (132)       (136)

    Net income                    $39,954     $34,170    $170,387    $259,458

    Basic earnings per share: (b)
      From continuing operations    $0.75       $0.63       $3.19       $4.76
      From discontinued operations   0.00        0.00        0.00        0.00
        Total basic earnings
         per share                  $0.75       $0.63       $3.19       $4.76

    Diluted earnings (loss)
     per share: (b)
      From continuing operations    $0.75       $0.63       $3.18       $4.57
      From discontinued operations   0.00        0.00        0.00       (0.01)
        Total diluted earnings
         per share                  $0.75       $0.63       $3.18       $4.56



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

                                           Three months       Twelve months
                                        ended December 31,  ended December 31,
                                          2007     2006       2007      2006
    (a) Calculation of income from
     discontinued operations,
     net of income tax:

    Income (loss) from operations         $83     ($52)      ($213)    ($217)
    Income tax (expense) benefit          (32)      20          81        81
    Income (loss) from discontinued
     operations, net of taxes             $51     ($32)      ($132)    ($136)

    (b) Earnings per share calculation:
    Basic:
    Income from continuing
     operations                       $39,903  $34,202    $170,519  $259,594
    Less: Dividends on unvested
     restricted stock, net of taxes       (17)     (26)        (79)      (89)
    Income from continuing
     operations - basic               $39,886  $34,176    $170,440  $259,505
    Income (loss) from
     discontinued operations               51      (32)       (132)     (136)
    Net income - basic                $39,937  $34,144    $170,308  $259,369

    Weighted average number
     of common shares - basic          53,051   53,936      53,381    54,557

    Basic earnings per share:
      From continuing operations        $0.75    $0.63       $3.19     $4.76
      From discontinued operations       0.00     0.00        0.00      0.00
        Total basic earnings
         per share                      $0.75    $0.63       $3.19     $4.76

    Diluted:
    Income from continuing
     operations                       $39,903  $34,202    $170,519  $259,594
    Less: Dividends on unvested
     restricted stock,
     net of taxes                         (17)     (26)        (79)      (89)
    Add: Debenture interest,
     net of taxes                         -        -           -       4,887
    Income from continuing
     operations - diluted             $39,886  $34,176    $170,440  $264,392
    Income (loss) from
     discontinued operations               51      (32)       (132)     (136)
    Net income - diluted              $39,937  $34,144    $170,308  $264,256

    Weighted average number
     of common shares                  53,051   53,936      53,381    54,557
    Add: Shares for conversion of
     convertible debentures               -        -           -       3,117
        Other share equivalents           182      255         188       234
    Weighted average number
     of common shares and
     equiv. - diluted                  53,233   54,191      53,569    57,908

    Diluted earnings (loss) per share:
      From continuing operations        $0.75    $0.63       $3.18     $4.57
      From discontinued operations       0.00     0.00        0.00     (0.01)
        Total diluted earnings
         per share                      $0.75    $0.63       $3.18     $4.56



                       Universal Health Services, Inc.
     Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                    Information ("Supplemental Schedule")
            For the three months ended December 31, 2007 and 2006
                   (in thousands, except per share amounts)
                                 (unaudited)

                                         Three months         Three months
                                      ended December 31,   ended December 31,
                                             2007                2006

    Net revenues                       $1,194,211  100.0%  $1,065,881  100.0%

    Operating charges:
      Salaries, wages and benefits        519,187   43.5%     461,500   43.3%
      Other operating expenses            248,828   20.8%     228,026   21.4%
      Supplies expense                    168,811   14.1%     156,431   14.7%
      Provision for doubtful accounts     103,378    8.7%      88,940    8.3%
                                        1,040,204   87.1%     934,897   87.7%

    Operating income/margin               154,007   12.9%     130,984   12.3%

      Lease and rental expense             17,552              15,813
      Minority interests in earnings
       of consolidated entities            10,710               8,621

    Earnings before hurricane related
     expenses, hurricane insurance
     recoveries, depreciation and
     amortization, interest expense,
     and income taxes ("EBITDA")          125,745             106,550

      Hurricane related expenses, net
       of insurance recoveries               (493)               (640)
      Depreciation and amortization        47,864              43,334
      Interest expense, net                12,983               9,196

    Income before income taxes             65,391              54,660

    Provision for income taxes             25,488              20,458

    Income from continuing operations      39,903              34,202

    Income (loss) from discontinued
     operations, net of income taxes           51                 (32)

    Net income                            $39,954             $34,170



                                         Three months         Three months
                                      ended December 31,   ended December 31,
                                             2007                2006

                                                  Per                 Per
                                                Diluted             Diluted
                                       Amount    Share     Amount    Share
    Calculation of Adjusted Income
     from Continuing Operations
    Income from continuing
     operations                       $39,903    $0.75    $34,202    $0.63
    Plus/minus adjustments:
      Hurricane related expenses, net
       of recoveries, minority
       interests and income taxes        (306)   (0.01)      (233)      -
      Favorable prior period effect
       of Texas Medicaid supplemental
       payments and cost report
       settlements, net of
       income taxes                       -       -        (6,280)   (0.12)
      Reserve for lawsuit, net of
       income taxes                       -       -         4,704     0.09
    Subtotal after-tax adjustments
     to income from continuing
     operations                          (306)   (0.01)    (1,809)   (0.03)
    Adjusted income from
     continuing operations            $39,597    $0.74     $32,393   $0.60

    Calculation of Adjusted Net Income
    Net income                        $39,954    $0.75     $34,170   $0.63
    After-tax adjustments to income
     from continuing operations, as
     indicated above                     (306)   (0.01)     (1,809)  (0.03)
    Adjusted net income               $39,648    $0.74     $32,361   $0.60



                       Universal Health Services, Inc.
     Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                    Information ("Supplemental Schedule")
            For the twelve months ended December 31, 2007 and 2006
                   (in thousands, except per share amounts)
                                 (unaudited)

                                         Twelve months        Twelve months
                                       ended December 31,   ended December 31,
                                              2007                 2006

    Net revenues                       $4,751,005  100.0%  $4,191,300  100.0%

    Operating charges:
      Salaries, wages and benefits      2,039,676   42.9%   1,797,587   42.9%
      Other operating expenses            997,807   21.0%     936,958   22.4%
      Supplies expense                    675,757   14.2%     556,702   13.3%
      Provision for doubtful accounts     415,961    8.8%     349,030    8.3%
                                        4,129,201   86.9%   3,640,277   86.9%

    Operating income/margin               621,804   13.1%     551,023   13.1%

      Lease and rental expense             68,253              64,060
      Minority interests in earnings
       of consolidated entities            43,361              46,238

    Earnings before hurricane related
     expenses, hurricane insurance
     recoveries, depreciation and
     amortization, interest expense,
     and income taxes ("EBITDA")          510,190             440,725

      Hurricane insurance recoveries
       in excess of expenses                  214            (167,999)
      Depreciation and amortization       183,281             163,694
      Interest expense, net                51,626              32,558

    Income before income taxes            275,069             412,472

    Provision for income taxes            104,550             152,878

    Income from continuing operations     170,519             259,594

    Loss from discontinued operations,
     net of income taxes                     (132)               (136)

    Net income                           $170,387            $259,458


                                         Twelve months        Twelve months
                                       ended December 31,   ended December 31,
                                              2007                 2006

                                                   Per                 Per
                                                 Diluted             Diluted
                                        Amount    Share     Amount    Share
    Calculation of Adjusted Income
     from Continuing Operations
    Income from continuing
     operations                       $170,519   $3.18    $259,594   $4.57
    Plus/minus adjustments:
      Hurricane related expenses, net
       of recoveries, minority
       interests and income taxes         133     -       (99,908)  (1.73)
      Gain on sale of real property,
       net of income taxes             (1,364)  (0.02)        -        -
      Reduction of reserve for
       professional and general
       liability self-insured claims,
       net of minority interests
       and income taxes               (10,104)  (0.19)        -        -
      Unfavorable (favorable) prior
       period effect of Texas
      Medicaid supplemental payments
       and cost report settlements,
       net of income taxes              3,419    0.07     (10,059)  (0.18)
      Favorable tax reserve
       adjustment                      (2,079)  (0.04)     (2,900)  (0.05)
      Reserve for legal judgment and
       lawsuit, net of income taxes     2,307    0.04       6,273    0.11
      Write-down of investment in
       joint-venture, net of income
       taxes                            1,612    0.03         -        -
      W&M Funding                         -        -        4,466    0.08
    Subtotal after-tax adjustments to
     income from continuing
     operations                        (6,076)  (0.11)   (102,128)  (1.77)
    Adjusted income from
     continuing operations           $164,443   $3.07    $157,466   $2.80

    Calculation of Adjusted
     Net Income
    Net income                       $170,387   $3.18    $259,458   $4.56
    After-tax adjustments to
     income from continuing
     operations, as indicated
     above                             (6,076)  (0.11)   (102,128)  (1.77)
    Adjusted net income              $164,311   $3.07    $157,330   $2.79



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

                                             December 31,      December 31,
                                                2007              2006
    Assets:
    Cash and cash equivalents                  $16,354           $14,939
    Accounts receivable, net                   627,186           595,009
    Other current assets                       131,307           118,558
    Property, plant and equipment, net       1,933,916         1,685,085
    Other assets                               899,894           863,451
    Total Assets                            $3,608,657        $3,277,042

    Liabilities and Stockholders' Equity:
    Current portion of long-term debt           $3,116            $1,938
    Other current liabilities                  484,595           500,513
    Other noncurrent liabilities               344,755           340,815
    Long-term debt                           1,008,786           821,363
    Deferred income taxes                       40,022            35,888
    Minority interest                          210,184           174,061
    Stockholders' equity                     1,517,199         1,402,464
    Total Liabilities and
     Stockholders' Equity                   $3,608,657        $3,277,042



                       Universal Health Services, Inc.
                    Consolidated Statements of Cash Flows
                                (in thousands)

                                                        Twelve months
                                                      ended December 31,
                                                    2007              2006
    Cash Flows from Operating Activities:
      Net income                                  $170,387          $259,458
      Adjustments to reconcile net income
       to net cash provided by operating
       activities:
        Depreciation & amortization                183,281           163,694
        Accretion of discount on convertible
         debentures                                    -               6,364
        Gain on sale of assets and businesses       (3,722)              -
        Hurricane related expenses                     -              13,792
        Hurricane insurance recoveries accrued         -            (181,791)
        Hurricane insurance recoveries received
         for operating expenses                        -              43,929
      Changes in assets & liabilities, net of
       effects from acquisitions and dispositions:
        Accounts receivable                        (11,540)          (93,552)
      Accrued interest                               2,143               796
      Accrued and deferred income taxes              9,648          (111,438)
      Other working capital accounts               (26,547)           18,090
      Other assets and deferred charges             (4,700)            2,524
      Payment of hurricane related expenses           -              (14,889)
      Other                                          8,688            15,126
      Minority interest in earnings of
       consolidated entities, net of
       distributions                                10,334            15,536
      Accrued insurance expense, net of
       commercial premiums paid                     64,131            76,456
      Payments made in settlement of
       self-insurance claims                       (53,608)          (44,856)
        Net cash provided by operating
         activities                                348,495           169,239

    Cash Flows from Investing Activities:
      Property and equipment additions,
       net of disposals                           (339,813)         (341,140)
      Proceeds received from sale of assets          6,818              -
      Acquisition of assets and businesses        (101,792)          (81,800)
      Hurricane insurance recoveries received         -              144,571
      Purchase of minority ownership
       interest in majority owned business         (14,762)             -
        Net cash used in investing activities     (449,549)         (278,369)

    Cash Flows from Financing Activities:
      Additional borrowings                        183,206           494,353
      Reduction of long-term debt                   (8,716)          (34,898)
      Repurchase of common shares                  (74,091)         (350,372)
      Dividends paid                               (17,169)          (17,445)
      Issuance of common stock                       2,264             5,637
      Financing costs                                 (588)           (2,020)
      Net cash received for termination
       of derivatives                                 -                3,393
      Capital contributions from minority
       member                                       17,563            17,458
        Net cash provided by financing
         activities                                102,469           116,106

    Increase in cash and cash equivalents            1,415             6,976
    Cash and cash equivalents, beginning
     of period                                      14,939             7,963
    Cash and cash equivalents, end of period       $16,354           $14,939

    Supplemental Disclosures of Cash Flow
     Information:
      Interest paid                                $58,567           $35,474

      Income taxes paid, net of refunds            $93,519          $263,465



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

                                            % Change      % Change
                                             Quarter      12 months
                                              ended         ended
    Same Facility:                          12/31/2007   12/31/2007

    Acute Care Hospitals
    Revenues                                    7.6%         7.7%
    Adjusted Admissions                         2.6%         4.3%
    Adjusted Patient Days                       1.2%         4.0%
    Revenue Per Adjusted Admission              4.8%         3.3%
    Revenue Per Adjusted Patient Day            6.4%         3.6%

    Behavioral Health Hospitals

    Revenues                                    9.5%         7.4%
    Adjusted Admissions                         6.5%         4.1%
    Adjusted Patient Days                       4.8%         4.2%
    Revenue Per Adjusted Admission              2.8%         3.1%
    Revenue Per Adjusted Patient Day            4.5%         3.1%



    UHS Consolidated          Fourth quarter ended      Twelve months ended
                             12/31/2007   12/31/2006   12/31/2007  12/31/2006

    Revenues                 $1,194,211   $1,065,881   $4,751,005   $4,191,300
    EBITDA   (1)                125,745      106,550      510,190      440,725
    EBITDA Margin (1)             10.5%        10.0%        10.7%        10.5%

    Cash Flow From Operations    25,714      -80,781      348,495      169,239
    Days Sales Outstanding           48           51           48           52
    Capital Expenditures         76,447      108,132      339,813      341,140

    Debt                                                1,011,902      823,301
    Shareholders Equity                                 1,517,199    1,402,464
    Debt / Total Capitalization                             40.0%        37.0%
    Debt / EBITDA (2)                                        1.98         1.87
    Debt / Cash From Operations (2)                          2.98         4.86

    Acute Care EBITDAR
     Margin(3)(4)                 13.0%        12.1%        13.5%        13.5%
    Behavioral Health EBITDAR
     Margin(3)(4)                 22.8%        22.6%        22.9%        23.3%

    (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
                              DECEMBER 31, 2007

    AS REPORTED:
                                                          ACUTE (1)
                                             12/31/07     12/31/06   % change

    Hospitals owned and leased                    22            21     4.8%
    Average licensed beds                      5,415         5,139     5.4%
    Patient days                             285,286       275,664     3.5%
    Average daily census                     3,100.9       2,996.3     3.5%
    Occupancy-licensed beds                    57.3%         58.3%    -1.8%
    Admissions                                64,425        62,055     3.8%
    Length of stay                               4.4           4.4    -0.3%

    Inpatient revenue                     $2,130,045    $1,910,457    11.5%
    Outpatient revenue                       894,019       729,711    22.5%
    Total patient revenue                  3,024,064     2,640,168    14.5%
    Other revenue                             15,510        12,859    20.6%
    Gross hospital revenue                 3,039,574     2,653,027    14.6%

    Total deductions                       2,171,094     1,870,204    16.1%

    Net hospital revenue                    $868,480      $782,823    10.9%


    SAME FACILITY:
                                                          ACUTE (2)
                                            12/31/07      12/31/06   % change

    Hospitals owned and leased                    21            21     0.0%
    Average licensed beds                      5,181         5,139     0.8%
    Patient days                             271,823       275,664    -1.4%
    Average daily census                     2,954.6       2,996.3    -1.4%
    Occupancy-licensed beds                    57.0%         58.3%    -2.2%
    Admissions                                62,079        62,055     0.0%
    Length of stay                               4.4           4.4    -1.4%


    AS REPORTED:
                                                   BEHAVIORAL HEALTH
                                            12/31/07     12/31/06   % change

    Hospitals owned and leased                    85           79      7.6%
    Average licensed beds                      7,573        6,927      9.3%
    Patient days                             517,818      469,340     10.3%
    Average daily census                     5,628.5      5,101.5     10.3%
    Occupancy-licensed beds                    74.3%        73.6%      0.9%
    Admissions                                30,548       27,211     12.3%
    Length of stay                              17.0         17.2     -1.7%

    Inpatient revenue                       $467,737     $418,770     11.7%
    Outpatient revenue                        62,362       51,848     20.3%
    Total patient revenue                    530,099      470,618     12.6%
    Other revenue                              7,750        8,115     -4.5%
    Gross hospital revenue                   537,849      478,733     12.3%

    Total deductions                         239,349      217,182     10.2%

    Net hospital revenue                    $298,500     $261,551     14.1%


    SAME FACILITY:
                                                  BEHAVIORAL HEALTH(3)
                                            12/31/07     12/31/06   % change

    Hospitals owned and leased                    79           79      0.0%
    Average licensed beds                      7,174        6,918      3.7%
    Patient days                             494,813      468,666      5.6%
    Average daily census                     5,378.4      5,094.2      5.6%
    Occupancy-licensed beds                    75.0%        73.6%      1.8%
    Admissions                                29,126       27,154      7.3%
    Length of stay                              17.0         17.3     -1.6%

    (1) Licensed beds from our Acute care hospitals located in New Orleans are
        excluded in 2006 and 2007.
    (2) Acute care hospitals located in New Orleans and Texoma are excluded in
        current and prior years.
    (3) Cottonwood, Dover Behavioral, Foundations Behavioral, Highlands
        Behavioral and Shenandoah Valley are excluded in both current and
        prior years. Cedar Ridge RTC and Northstar RTC are included in both
        current and prior years from July 1st through year to date ("YTD").
        Academy at Canyon Creek and Casa de Lago are included in both current
        and prior years from August 1st through YTD. Cedar Ridge Hospital is
        included in both current and prior years from September 1st through
        YTD. Lincoln Trail is included in both current and prior years from
        November 1 through YTD and Spring Mountain is included in both current
        and prior years from December 1 through YTD. Tennessee Valley,
        Tuscaloosa Juvenile Detention Center and Triple L Group homes are
        excluded in current and prior years.



                       UNIVERSAL HEALTH SERVICES, INC.
                         SELECTED HOSPITAL STATISTICS
                         FOR THE TWELVE MONTHS ENDED
                              DECEMBER 31, 2007
    AS REPORTED:
                                                          ACUTE (1)
                                             12/31/07      12/31/06   % change

    Hospitals owned and leased                     22            21     4.8%
    Average licensed beds                       5,417         5,070     6.8%
    Patient days                            1,172,130     1,095,375     7.0%
    Average daily census                      3,211.3       3,000.9     7.0%
    Occupancy-licensed beds                     59.3%         59.2%     0.2%
    Admissions                                262,147       246,429     6.4%
    Length of stay                                4.5           4.4     0.6%

    Inpatient revenue                      $8,588,580    $7,518,157    14.2%
    Outpatient revenue                      3,560,296     2,876,867    23.8%
    Total patient revenue                  12,148,876    10,395,024    16.9%
    Other revenue                              60,878        51,549    18.1%
    Gross hospital revenue                 12,209,754    10,446,573    16.9%

    Total deductions                        8,731,499     7,339,940    19.0%

    Net hospital revenue                   $3,478,255    $3,106,633    12.0%


    SAME FACILITY:
                                                          ACUTE (2)
                                            12/31/07      12/31/06    % change

    Hospitals owned and leased                     21            21     0.0%
    Average licensed beds                       5,183         5,070     2.2%
    Patient days                            1,118,543     1,095,375     2.1%
    Average daily census                      3,064.5       3,000.9     2.1%
    Occupancy-licensed beds                     59.1%         59.2%    -0.1%
    Admissions                                252,226       246,429     2.4%
    Length of stay                                4.4           4.4    -0.2%


    AS REPORTED:
                                                    BEHAVIORAL HEALTH
                                             12/31/07      12/31/06   % change

    Hospitals owned and leased                     85            79     7.6%
    Average licensed beds                       7,348         6,607    11.2%
    Patient days                            2,007,119     1,855,306     8.2%
    Average daily census                      5,499.0       5,083.0     8.2%
    Occupancy-licensed beds                     74.8%         76.9%    -2.7%
    Admissions                                119,730       111,490     7.4%
    Length of stay                               16.8          16.6     0.7%

    Inpatient revenue                      $1,806,835    $1,663,509     8.6%
    Outpatient revenue                        235,920       206,453    14.3%
    Total patient revenue                   2,042,755     1,869,962     9.2%
    Other revenue                              29,688        32,207    -7.8%
    Gross hospital revenue                  2,072,443     1,902,169     9.0%

    Total deductions                          926,365       873,202     6.1%

    Net hospital revenue                   $1,146,078    $1,028,967    11.4%


    SAME FACILITY:
                                                   BEHAVIORAL HEALTH (3)
                                             12/31/07      12/31/06   % change

    Hospitals owned and leased                     79            79     0.0%
    Average licensed beds                       6,877         6,548     5.0%
    Patient days                            1,919,426     1,839,564     4.3%
    Average daily census                      5,258.7       5,039.9     4.3%
    Occupancy-licensed beds                     76.5%         77.0%    -0.7%
    Admissions                                115,111       110,361     4.3%
    Length of stay                               16.7          16.7     0.0%

    (1) Licensed beds from our Acute care hospitals located in New Orleans are
        excluded in 2006 and 2007.
    (2) Acute care hospitals located in New Orleans and Texoma are excluded in
        current and prior years.
    (3) Cottonwood, Dover Behavioral, Foundations Behavioral, Highlands
        Behavioral and Shenandoah Valley are excluded in both current and
        prior years. Cedar Ridge RTC and Northstar RTC are included in both
        current and prior years from July 1st through year to date ("YTD").
        Academy at Canyon Creek and Casa de Lago are included in both current
        and prior years from August 1st through YTD. Cedar Ridge Hospital is
        included in both current and prior years from September 1st through
        YTD. Lincoln Trail is included in both current and prior years from
        November 1 through YTD and Spring Mountain is included in both current
        and prior years from December 1 through YTD. Tennessee Valley,
        Tuscaloosa Juvenile Detention Center and Triple L Group homes are
        excluded in 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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