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Universal Health Services, Inc. Reports Significant Increases in 2008 Fourth Quarter and Full Year Earnings from Continuing Operations Per Diluted Share and Reports 2009 Guidance

Consolidated Results of Operations:

KING OF PRUSSIA, Pa., Feb. 26 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income was $46.5 million, or $.93 per diluted share, during the fourth quarter of 2008 as compared to $40.0 million, or $.75 per diluted share, during the comparable prior year quarter. Reported income from continuing operations was $40.5 million, or an increase of 8% to $.81 per diluted share, during the fourth quarter of 2008 as compared to $39.7 million, or $.75 per diluted share, during the comparable prior year quarter.

Reported net income was $199.4 million, or $3.93 per diluted share, during the year ended December 31, 2008 as compared to $170.4 million, or $3.18 per diluted share, during the comparable prior year. Reported income from continuing operations was $192.9 million, or an increase of 19% to $3.80 per diluted share, during the year ended December 31, 2008 as compared to $170.6 million, or $3.18 per diluted share, during the comparable prior year.

After adjusting for the items discussed below applicable to the periods presented, as indicated on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedules"), during the fourth quarter of 2008 our adjusted income from continuing operations was $43.7 million, or an increase of 16% to $.87 per diluted share, as compared to $39.7 million, or $.75 per diluted share, during the comparable prior year quarter. Adjusted net income was $41.4 million, or $.82 per diluted share, during the fourth quarter of 2008 as compared to $40.0 million, or $.75 per diluted share, during the comparable prior year quarter.

During the year ended December 31, 2008, our adjusted income from continuing operations was $197.3 million, or an increase of 27% to $3.89 per diluted share, as compared to $164.4 million, or $3.07 per diluted share, during 2007. Adjusted net income was $195.5 million, or $3.85 per diluted share, during the year ended December 31, 2008 as compared to $164.2 million, or $3.07 per diluted share, during 2007.

Net revenues increased 5% to $1.24 billion during the fourth quarter of 2008 as compared to $1.18 billion during the fourth quarter of 2007. Net revenues increased 7% to $5.02 billion during the year ended December 31, 2008 as compared to $4.68 billion during 2007. Our consolidated operating margin, as calculated on the attached Supplemental Schedules (without adjusting for the various items mentioned below), was 12.6% and 13.0% during the three-month periods ended December 31, 2008 and 2007, respectively, and 13.4% and 13.2% during the years ended December 31, 2008 and 2007, respectively.

"In what is proving to be an increasingly difficult operating environment, we are extremely proud of our significantly improved financial results in 2008" said Alan B. Miller, President and Chief Executive Officer. "We believe that our diversified business mix strategy and conservative balance sheet positions us well to weather the economic challenges we all face."

As indicated on the attached Supplemental Schedules, our income from continuing operations and net income for the three and twelve-month periods ended December 31, 2008 and 2007 include various items such as: (i) a $25 million pre-tax charge recorded during 2008 to establish a reserve in connection with the government's investigation of our South Texas Health System affiliates (see Other Matters below); (ii) reductions to our professional and general liability self-insured claims expense recorded during 2008 (partial liquidation proceeds from PHICO's estate as discussed in Other Matters below) and 2007 (based upon the results of a reserve analysis); (iii) gains realized during each year from the sales of certain businesses, real property and other investments; (iv) the prior period effect of the Texas Medicaid supplemental payments and cost reports settlements that were reserved for during 2007; (v) other items recorded during 2007 including reserve for legal judgment and lawsuit, the write-down of the carrying-value of investment in a joint-venture and favorable income tax adjustment to reduce reserves due to the expiration of statute of limitations in various tax jurisdictions.

Acute Care Services:

At our acute care hospitals owned during both periods ("same facility basis"), inpatient admissions decreased 0.4% and patient days increased 1.4% during the fourth quarter of 2008, as compared to the fourth quarter of 2007. On a same facility basis, net revenues at our acute care facilities increased 2.2% during the fourth quarter of 2008 as compared to the comparable prior year quarter. Net revenue per adjusted admission at these facilities increased 3.3% during the fourth quarter of 2008 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 2008 as compared to 13.6% during the fourth quarter of 2007.

On a same facility basis, inpatient admissions increased 0.1% and patient days increased 0.8% during the year ended December 31, 2008 as compared to the prior year. Net revenues at these facilities increased 4.8% during 2008 as compared to 2007. Net revenue per adjusted admission at these facilities increased 4.8% during the year ended December 31, 2008 over the prior year. The operating margin at our acute care hospitals owned during both years increased to 14.5% during 2008 as compared to 13.7% during 2007.

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 $163 million and $140 million during the three-month periods ended December 31, 2008 and 2007, respectively, and $614 million and $562 million during the years ended December 31, 2008 and 2007, respectively.

Behavioral Health Care Services:

At our behavioral health facilities, on a same facility basis, inpatient admissions increased 0.7% and patient days decreased 0.2% during the fourth quarter of 2008 as compared to the fourth quarter of 2007. On a same facility basis, net revenues at our behavioral health facilities increased 4.0% during the fourth quarter of 2008 as compared to the comparable prior year quarter. Net revenue per adjusted patient day at these facilities increased 4.8% during the fourth quarter of 2008 over the comparable prior year quarter. The operating margin at our behavioral health facilities owned during both periods was 23.2% during the fourth quarter of 2008 as compared to 23.5% during the fourth quarter of 2007.

On a same facility basis, inpatient admissions increased 6.4% and patient days increased 3.2% during the year ended December 31, 2008 as compared to the prior year. On a same facility basis, net revenues at our behavioral health facilities increased 7.6% during 2008 as compared to 2007. Net revenue per adjusted patient day at these facilities increased 4.6% during 2008 over the prior year. The operating margin at our behavioral health facilities owned during both years was 23.9% during 2008 and 23.3% during 2007.

2009 Guidance:

During 2009, 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 $4.00 to $4.15 on projected net revenues of $5.34 billion.

During 2009, we expect to spend approximately $350 million to $400 million on capital expenditures, including approximately $220 million related to expenditures for capital equipment, renovations, new projects at existing hospitals and completion of major construction projects in progress at December 31, 2008.

Other Matters:

South Texas Health System affiliates investigation:

As previously disclosed, since November, 2005, the government has been investigating our South Texas Health System affiliates. The investigation has been focused on certain arrangements which, the government believes, may have violated Medicare and Medicaid rules and regulations pertaining to payments to physicians and the solicitation of patient referrals from physicians and other matters relating to payments to various individuals which may have constituted improper payments. We have been negotiating a possible settlement of this matter with the government and we expect to continue our discussions to attempt to resolve this matter in a manner satisfactory to us and the government. During 2008, we recorded a pre-tax charge of $25 million ($15 million of which was recorded during the fourth quarter of 2008) to establish a reserve in connection with this matter. However, there is no assurance that a settlement can be reached, and, should a settlement be reached, we are unable at this time to determine the ultimate settlement amount. Should we be unable to ultimately reach a settlement, we are unable at this time to determine the extent of the total financial and/or other exposure to us in connection with this matter.

PHICO estate liquidation:

For the years of 1998 through 2001, most of our subsidiaries were covered under commercial insurance policies with PHICO, a Pennsylvania based insurance company that was placed into liquidation in February, 2002. In January, 2009, a court order from the Commonwealth Court of Pennsylvania was executed in connection with the partial liquidation of the PHICO estate. As a result, during the fourth quarter of 2008, based upon our share of the undisputed and resolved claims made against the PHICO estate as of a specified date and as approved by the liquidator to the court, we recorded a $10 million reduction to our professional and general liability self-insured claims expense.

Divestitures of assets and businesses:

During the fourth quarter of 2008, we completed the sale of a 125-bed acute care hospital located in Lansdale, Pennsylvania. This transaction resulted in a pre-tax gain of approximately $13 million which is included in our financial results for the three and twelve-month periods ended December 31, 2008. In addition, included in our financial results for the twelve-month period ended December 31, 2008 is a combined pre-tax gain of $8 million from the sale of our ownership interest in a third-party provider of supply chain services, the sale our ownership interest in an outpatient surgery center and the sale of certain other real property assets.

Resignation of John F. Williams, M.D., Ed.D. from Our Board of Directors:

John F. Williams, M.D. has notified us that he intends to resign from our Board of Directors effective as of February 28, 2009. We thank Dr. Williams for his years of dedicated service to our Company and wish him well in his future endeavors.

Conference Call Information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on February 27, 2009. 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 27, 2009 and will continue through midnight on March 13, 2009. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 83016509. 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).

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, 2008), 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, reserves for settlements, legal judgments and lawsuits 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, 2008. 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,
                                  ------------------    ------------------
                                      2008       2007       2008       2007
                                      ----       ----       ----       ----

    Net revenues                $1,237,402 $1,177,337 $5,022,417 $4,683,150

    Operating charges:
       Salaries, wages and
        benefits                   532,667    510,442  2,133,181  2,004,995
       Other operating expenses    267,021    244,909  1,044,278    982,614
       Supplies expense            170,231    166,390    694,477    666,320
       Provision for doubtful
        accounts                   111,299    102,180    476,745    410,543
       Depreciation and
        amortization                51,091     47,214    193,635    180,557
       Lease and rental expense     16,861     17,462     69,882     67,867
                                    ------     ------     ------     ------
                                 1,149,170  1,088,597  4,612,198  4,312,896
                                 ---------  ---------  ---------  ---------

    Income before interest
     expense, minority interests
     and income taxes               88,232     88,740    410,219    370,254


    Interest expense, net           13,060     12,983     53,207     51,626
    Minority interests in earnings
     of consolidated entities        6,671     10,710     40,693     43,361
                                     -----     ------     ------     ------

    Income before income taxes      68,501     65,047    316,319    275,267

    Provision for income taxes      28,026     25,357    123,378    104,625
                                    ------     ------    -------    -------

    Income from continuing
     operations                     40,475     39,690    192,941    170,642

    Income (loss) from discontinued
     operations, net of
     income tax expense (a)          6,002        264      6,436       (255)
                                     -----        ---      -----       ----


    Net income                     $46,477    $39,954   $199,377   $170,387
                                   =======    =======   ========   ========


    Basic earnings (loss)
     per share: (b)
      From continuing operations     $0.81      $0.75      $3.81      $3.20
      From discontinued operations    0.12          -       0.13      (0.01)
                                      ----        ---       ----      -----
        Total basic earnings per
         share                       $0.93      $0.75      $3.94      $3.19
                                     =====      =====      =====      =====

    Diluted earnings per share: (b)
      From continuing operations     $0.81      $0.75      $3.80      $3.18
      From discontinued operations    0.12          -       0.13          -
                                      ----        ---       ----        ---
        Total diluted earnings per
         share                       $0.93      $0.75      $3.93      $3.18
                                     =====      =====      =====      =====



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


                                            Three months      Twelve months
                                               ended               ended
                                            December 31,       December 31,
                                           ---------------------------------
                                           2008     2007      2008      2007
                                           ----     ----      ----      ----
     (a) Calculation of income (loss)
     from discontinued operations,
     net of income tax:
    -----------------------------------

    (Loss) income from operations, net
     of minority interest               ($3,702)    $427   ($2,996)    ($411)
    Gain on divestiture                  13,413        -    13,413         -
                                         ------      ---    ------       ---
    Income (loss) from discontinued
     operations, pre-tax                  9,711      427    10,417      (411)
    Income tax (expense) benefit         (3,709)    (163)   (3,981)      156
                                         ------     ----    ------       ---
    Income (loss) from discontinued
     operations, net of taxes            $6,002     $264    $6,436     ($255)
                                         ======     ====    ======     =====


    (b) Earnings per share calculation:
    -----------------------------------

    Basic:
    ------
    Income from continuing operations   $40,475  $39,690  $192,941  $170,642
    Less: Dividends on unvested
     restricted stock, net of taxes         (10)     (17)      (49)      (79)
                                            ---      ---       ---       ---
    Income from continuing operations
     - basic                             40,465   39,673   192,892   170,563
    Income (loss) from discontinued
     operations                           6,002      264     6,436      (255)
                                          -----      ---     -----      ----
    Net income - basic                  $46,467  $39,937  $199,328  $170,308
                                        =======  =======  ========  ========

    Weighted average number of common
     shares - basic                      50,008   53,051    50,611    53,381
                                         ------   ------    ------    ------

    Basic earnings (loss) per share:
      From continuing operations          $0.81    $0.75     $3.81     $3.20
      From discontinued operations         0.12     0.00      0.13     (0.01)
                                           ----     ----      ----     -----
        Total basic earnings per share    $0.93    $0.75     $3.94     $3.19
                                          =====    =====     =====     =====

    Diluted:
    --------
    Income from continuing operations   $40,475  $39,690  $192,941  $170,642
    Less: Dividends on unvested
     restricted stock, net of taxes         (10)     (17)      (49)      (79)
                                            ---      ---       ---       ---
    Income from continuing operations
     - diluted                           40,465   39,673   192,892   170,563
    Income (loss) from discontinued
     operations                           6,002      264     6,436      (255)
                                          -----      ---     -----      ----
    Net income - diluted                $46,467  $39,937  $199,328  $170,308
                                        =======  =======  ========  ========

    Weighted average number of common
     shares                              50,008   53,051    50,611    53,381
    Add: Other share equivalents            189      182       165       188
                                            ---      ---       ---       ---
    Weighted average number of common
     shares and equiv. - diluted         50,197   53,233    50,776    53,569
                                         ------   ------    ------    ------

    Diluted earnings per share:
      From continuing operations          $0.81    $0.75     $3.80     $3.18
      From discontinued operations         0.12     0.00      0.13      0.00
                                           ----     ----      ----      ----
        Total diluted earnings per share  $0.93    $0.75     $3.93     $3.18
                                          =====    =====     =====     =====



                          Universal Health Services, Inc.
                          -------------------------------
       Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                       Information ("Supplemental Schedule")
       --------------------------------------------------------------------
               For the three months ended December 31, 2008 and 2007
               -----------------------------------------------------
                     (in thousands, except per share amounts)


                                     Three months ended    Three months ended
                                      December 31, 2008     December 31, 2007
                                      -----------------     -----------------


    Net revenues                    $1,237,402     100.0% $1,177,337    100.0%

    Operating charges:
       Salaries, wages and benefits    532,667      43.0%    510,442     43.4%
       Other operating expenses        267,021      21.6%    244,909     20.8%
       Supplies expense                170,231      13.8%    166,390     14.1%
       Provision for doubtful
        accounts                       111,299       9.0%    102,180      8.7%
                                       -------       ---     -------      ---
                                     1,081,218      87.4%  1,023,921     87.0%
                                     ---------      ----   ---------     ----

    Operating income/margin            156,184      12.6%    153,416     13.0%

       Lease and rental expense         16,861                17,462
       Minority interests in earnings
        of consolidated entities         6,671                10,710
                                         -----                ------

    Earnings before hurricane
     related expenses, depreciation
     and amortization, interest
     expense, and income taxes
     ("EBITDA")                        132,652               125,244

       Depreciation and
        amortization                    51,091                47,214
       Interest expense, net            13,060                12,983
                                        ------                ------

    Income before income taxes          68,501                65,047

    Provision for income taxes          28,026                25,357
                                        ------                ------

    Income from continuing
     operations                         40,475                39,690

    Income from discontinued
     operations, net of income
     taxes                               6,002                   264
                                       -------               -------
    Net income                         $46,477               $39,954
                                       =======               =======

                                     Three months ended    Three months ended
                                      December 31, 2008     December 31, 2007
                                      -----------------     -----------------
                                                   Per                  Per
                                                Diluted              Diluted
                                      Amount      Share     Amount     Share
                                      ------    --------    ------   --------
    Calculation of Adjusted Income
     from Continuing Operations
    ------------------------------
    Income from continuing
     operations                        $40,475     $0.81     $39,690    $0.75
    Plus/minus adjustments:
       South Texas Health System
        affiliates reserve, net of
        income taxes                     9,153      0.18           -        -
       PHICO estate liquidation
        proceeds, net of income
        taxes                           (5,968)    (0.12)          -        -
                                        ------     -----         ---      ---
    Subtotal after-tax adjustments
     to income from continuing
     operations                          3,185      0.06           -        -
                                         -----      ----         ---      ---
    Adjusted income from
     continuing operations             $43,660     $0.87     $39,690    $0.75
                                       =======     =====     =======    =====

    Calculation of Adjusted Net Income
    ----------------------------------
    Net income                         $46,477     $0.93     $39,954    $0.75
    After-tax adjustments to
     income from continuing
     operations, as indicated above      3,185      0.06           -        -
    After-tax gain on divestiture       (8,287)    (0.17)          -        -
                                        ------     -----         ---      ---
    Adjusted net income                $41,375     $0.82     $39,954    $0.75
                                       =======     =====     =======    =====



                         Universal Health Services, Inc.
                         -------------------------------
       Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                       Information ("Supplemental Schedule")
       --------------------------------------------------------------------
              For the twelve months ended December 31, 2008 and 2007
              ------------------------------------------------------
                     (in thousands, except per share amounts)


                                     Twelve months         Twelve months
                                          ended                 ended
                                      December 31,          December 31,
                                          2008                   2007
                                      -------------         ------------


    Net revenues                  $5,022,417     100.0% $4,683,150     100.0%

    Operating charges:
       Salaries, wages and
        benefits                   2,133,181      42.5%  2,004,995      42.8%
       Other operating expenses    1,044,278      20.8%    982,614      21.0%
       Supplies expense              694,477      13.8%    666,320      14.2%
       Provision for doubtful
        accounts                     476,745       9.5%    410,543       8.8%
                                     -------       ---     -------       ---
                                   4,348,681      86.6%  4,064,472      86.8%
                                   ---------      ----   ---------      ----

    Operating income/margin          673,736      13.4%    618,678      13.2%

       Lease and rental expense       69,882                67,867
       Minority interests in
        earnings of consolidated
        entities                      40,693                43,361
                                      ------                ------

    Earnings before hurricane
     related expenses,
     depreciation and
     amortization, interest
     expense, and income taxes
     ("EBITDA")                      563,161               507,450

       Depreciation and
        amortization                 193,635               180,557
       Interest expense, net          53,207                51,626
                                      ------                ------

    Income before income taxes       316,319               275,267

    Provision for income taxes       123,378               104,625
                                     -------               -------

    Income from continuing
     operations                      192,941               170,642

    Income (loss) from
     discontinued operations, net
     of income taxes                   6,436                  (255)

                                    --------              --------
    Net income                      $199,377              $170,387
                                    ========              ========

                                      Twelve months         Twelve months
                                          ended                 ended
                                      December 31,          December 31,
                                           2008                  2007
                                      ------------          ------------
                                                 Per                   Per
                                               Diluted               Diluted
                                     Amount     Share      Amount     Share
                                     ------    --------    ------    --------
    Calculation of Adjusted Income
     from Continuing Operations
    ------------------------------
    Income from continuing
     operations                     $192,941     $3.80    $170,642     $3.18
    Plus/minus adjustments:
       Gain on sale of real
        property and other
        investment, net of income
        taxes                         (4,894)    (0.09)     (1,364)    (0.02)
       South Texas Health System
        affiliates reserve, net of
        income taxes                  15,255      0.30           -         -
       PHICO estate liquidation
        proceeds, net of income
        taxes                         (5,968)    (0.12)          -         -
       Reduction of professional
        and general liability expense,
        net of minority interests
        and income taxes                   -         -     (10,104)    (0.19)
       Unfavorable prior period
        effect of Texas Medicaid
        supplemental payments
        and cost report settlements,
        net of income taxes                -         -       3,419      0.07
       Favorable tax reserve
        adjustment                         -         -      (2,079)    (0.04)
       Reserve for legal judgment
        and lawsuit, net of income
        taxes                              -         -       2,307      0.04
       Write-down of investment in
        joint-venture, net of income
        taxes                              -         -       1,612      0.03
                                         ---       ---       -----      ----
    Subtotal after-tax
     adjustments to income from
     continuing operations             4,393      0.09      (6,209)    (0.11)
                                       -----      ----      ------     -----
    Adjusted income from
     continuing operations          $197,334     $3.89    $164,433     $3.07
                                    ========     =====    ========     =====

    Calculation of Adjusted
     Net Income
    -----------------------
    Net income                      $199,377     $3.93    $170,387     $3.18
    After-tax adjustments to
     income from continuing
     operations, as indicated
     above                             4,393      0.09      (6,209)    (0.11)
    After-tax gain on divestiture     (8,287)    (0.17)          -         -
                                      ------     -----         ---       ---
    Adjusted net income             $195,483     $3.85    $164,178     $3.07
                                    ========     =====    ========     =====



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



                                             December 31, December 31,
                                                    2008         2007
                                                    ----         ----

    Assets:
    Cash and cash equivalents                     $5,460      $16,354
    Accounts receivable, net                     625,437      627,186
    Other current assets                         136,940      131,307
    Current assets held for sale                  21,580            -
    Property, plant and equipment, net         2,100,292    1,933,916
    Other assets                                 852,753      899,894
                                                 -------      -------
    Total Assets                              $3,742,462   $3,608,657
                                              ==========   ==========

    Liabilities and Stockholders' Equity:
    Current portion of long-term debt             $8,708       $3,116
    Other current liabilities                    552,417      484,595
    Other noncurrent liabilities                 407,652      344,755
    Long-term debt                               990,661    1,008,786
    Deferred income taxes                         12,439       40,022
    Minority interests                           226,735      210,184
    Stockholders' equity                       1,543,850    1,517,199
                                               ---------    ---------
    Total Liabilities and Stockholders'
     Equity                                   $3,742,462   $3,608,657
                                              ==========   ==========



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

                                                           Twelve months
                                                        ended December 31,
                                                        ------------------
                                                            2008      2007
                                                            ----      ----

    Cash Flows from Operating Activities:
      Net income                                        $199,377  $170,387
      Adjustments to reconcile net income to net
       cash provided by operating activities:
        Depreciation & amortization                      195,766   183,281
        Gains on sales of assets and businesses, net of
         losses                                          (21,464)   (3,722)
        Provision for settlements                         25,000         -
      Changes in assets & liabilities, net of effects
       from acquisitions and dispositions:
        Accounts receivable                               22,445   (13,050)
        Construction management and other receivable     (20,693)    1,510
        Accrued interest                                    (123)    2,143
        Accrued and deferred income taxes                 (3,483)    9,648
        Other working capital accounts                     3,878   (26,547)
        Other assets and deferred charges                 21,003    (4,700)
        Other                                             16,928     8,688
        Minority interest in earnings of consolidated
         entities, net of distributions                    9,614    10,334
        Accrued insurance expense, net of commercial
         premiums paid                                    73,413    64,131
        Payments made in settlement of self-insurance
         claims                                          (58,561)  (53,608)
                                                         -------   -------
          Net cash provided by operating activities      463,100   348,495
                                                         -------   -------

    Cash Flows from Investing Activities:
      Property and equipment additions, net of
       disposals                                        (354,537) (339,813)
      Proceeds received from sale of assets               82,062     6,818
      Settlement proceeds received related to prior year
       acquisition, net of expenses                        1,539         -
      Investment in joint-venture                         (1,249)        -
      Acquisition of assets and businesses               (23,481) (101,792)
      Purchase of minority ownership interest in
       majority owned business                            (1,058)  (14,762)
                                                          ------   -------
          Net cash used in investing activities         (296,724) (449,549)
                                                        --------  --------

    Cash Flows from Financing Activities:
      Additional borrowings                              151,129   183,206
      Reduction of long-term debt                       (166,557)   (8,716)
      Repurchase of common shares                       (149,404)  (74,091)
      Dividends paid                                     (16,150)  (17,169)
      Issuance of common stock                             2,354     2,264
      Financing costs                                       (975)     (588)
      Capital contributions from minority member           2,333    17,563
                                                           -----    ------
          Net cash (used in) provided by financing
           activities                                   (177,270)  102,469
                                                        --------   -------

    (Decrease) increase in cash and cash equivalents     (10,894)    1,415
    Cash and cash equivalents, beginning of period        16,354    14,939
                                                          ------    ------
    Cash and cash equivalents, end of period              $5,460   $16,354
                                                          ======   =======

    Supplemental Disclosures of Cash Flow Information:
      Interest paid                                      $62,285   $58,567
                                                         =======   =======

      Income taxes paid, net of refunds                 $130,379   $93,519
                                                        ========   =======



                              Universal Health Services, Inc.
                         Supplemental Statistical Information
                                     (un-audited)


                                               % Change    % Change
                                                Quarter    12 months
                                                 Ended       ended
    --------------
    Same Facility:                             12/31/2008  12/31/2008
    --------------                             ----------  ----------

    Acute Care Hospitals
    --------------------
    Revenues                                        2.2%        4.8%
    Adjusted Admissions                            -1.0%        0.0%
    Adjusted Patient Days                           0.7%        0.7%
    Revenue Per Adjusted Admission                  3.3%        4.8%
    Revenue Per Adjusted Patient Day                1.4%        4.1%



    Behavioral Health Hospitals
    ---------------------------

    Revenues                                        4.0%        7.6%
    Adjusted Admissions                             0.3%        6.1%
    Adjusted Patient Days                          -0.6%        2.9%
    Revenue Per Adjusted Admission                  3.9%        1.4%
    Revenue Per Adjusted Patient Day                4.8%        4.6%




    ----------------
    UHS Consolidated           Fourth Quarter Ended     Twelve months Ended
    ----------------           --------------------     -------------------
                              12/31/2008  12/31/2007  12/31/2008  12/31/2007
                              ----------  ----------  ----------  ----------
    Revenues                  $1,237,402  $1,177,337  $5,022,417  $4,683,150
    EBITDA (1)(5)                132,652     125,244     563,161     507,450
    EBITDA Margin(1)                10.7%       10.6%       11.2%       10.8%


    Cash Flow From Operations     67,157      25,714     463,100     348,495
    Days Sales Outstanding            47          49          46          49
    Capital Expenditures         114,657      76,447     354,537     339,813

    Debt                                                 999,369   1,011,902
    Shareholders Equity                                1,543,850   1,517,199
    Debt / Total Capitalization                             39.3%       40.0%
    Debt / EBITDA (2)                                       1.77        1.99
    Debt / Cash From
     Operations (2)                                         2.16        2.90


    Acute Care EBITDAR
     Margin(3)(4)(5)                13.6%       13.1%       14.1%       13.7%
    Behavioral Health EBITDAR
     Margin(3)(4)                   22.7%       22.8%       23.3%       22.9%


    (1) Net of Minority Interest
    (2) Latest 4 quarters
    (3) Before Corporate overhead allocation and minority interest
    (4) Excluding discontinued operations
    (5) 2008 Acute care margin excludes $25.1 million South Texas Reserve



             UNIVERSAL HEALTH SERVICES, INC.
              SELECTED HOSPITAL STATISTICS
               FOR THE THREE MONTHS ENDED
                      DECEMBER 31, 2008


    ------------
    AS REPORTED:
    ------------


                                            ACUTE (1)
                                 12/31/08    12/31/07   %  change
                                 --------    --------   ---------

    Hospitals owned and leased          22          22        0.0%
    Average licensed beds            5,450       5,415        0.6%
    Patient days                   291,885     285,286        2.3%
    Average daily census           3,172.7     3,100.9        2.3%
    Occupancy-licensed beds           58.2%       57.3%       1.7%
    Admissions                      65,302      64,425        1.4%
    Length of stay                     4.5         4.4        0.9%

    Inpatient revenue           $2,292,917  $2,075,508       10.5%
    Outpatient revenue             906,669     850,047        6.7%
    Total patient revenue        3,199,586   2,925,555        9.4%
    Other revenue                   16,837      14,881       13.1%
    Gross hospital revenue       3,216,423   2,940,436        9.4%

    Total deductions             2,323,146   2,088,830       11.2%

    Net hospital revenue          $893,277    $851,606        4.9%


    ------------
    AS REPORTED:
    ------------


                                         BEHAVIORAL HEALTH
                                 12/31/08    12/31/07   %  change
                                 --------    --------   ---------

    Hospitals owned and leased          81          85       -4.7%
    Average licensed beds            7,742       7,573        2.2%
    Patient days                   505,028     517,818       -2.5%
    Average daily census           5,489.4     5,628.5       -2.5%
    Occupancy-licensed beds           70.9%       74.3%      -4.6%
    Admissions                      31,325      30,548        2.5%
    Length of stay                    16.1        17.0       -4.9%

    Inpatient revenue             $484,524    $467,737        3.6%
    Outpatient revenue              64,741      62,362        3.8%
    Total patient revenue          549,265     530,099        3.6%
    Other revenue                    8,096       7,750        4.5%
    Gross hospital revenue         557,361     537,849        3.6%

    Total deductions               247,251     239,349        3.3%

    Net hospital revenue          $310,110    $298,500        3.9%



    SAME FACILITY:
    --------------
                                           ACUTE (2)
                                  12/31/08  12/31/07   %  change
                                  --------  --------   ---------
    Hospitals owned and leased          22        22        0.0%
    Average licensed beds            5,285     5,290       -0.1%
    Patient days                   283,507   279,560        1.4%
    Average daily census           3,081.6   3,038.7        1.4%
    Occupancy-licensed beds           58.3%     57.4%       1.5%
    Admissions                      62,860    63,092       -0.4%
    Length of stay                     4.5       4.4        1.8%



                                       BEHAVIORAL HEALTH (3)
                                  12/31/08   12/31/07   % change
                                  --------   --------   --------

    Hospitals owned and leased          81        81        0.0%
    Average licensed beds            7,546     7,354        2.6%
    Patient days                   500,848   501,869       -0.2%
    Average daily census           5,444.0   5,455.1       -0.2%
    Occupancy-licensed beds           72.1%     74.2%      -2.7%
    Admissions                      30,652    30,449        0.7%
    Length of stay                    16.3      16.5       -0.9%



    (1) Acute care hospitals located in New Orleans and discontinued
        operations are excluded in 2007 and 2008.

    (2) Acute care hospitals located in New Orleans, discontinued
        operations and Centennial Hills Hospital are excluded in
        current and prior years.

    (3) Casa de Lago, Central Florida, Summit Ridge Hospital and Shenandoah
        Valley are excluded in both current and prior years. Highlands
        Behavioral is included in both current and prior years from March 1st
        through year to date. Dover Behavioral is included in both current
        and prior years from May 1st through year to date. Foundations
        Behavioral is included in both current and prior years from July 1st
        through year to date. Cottonwood Treatment is included in both
        current and prior years from August 1st through year to date. Broad
        Horizons, Highlander RTC, Midwest Youth and Vista Group Homes are
        excluded in both current and prior years from July 1st through year to
        date.




              UNIVERSAL HEALTH SERVICES, INC.
               SELECTED HOSPITAL STATISTICS
                FOR THE TWELVE MONTHS ENDED
                     DECEMBER 31, 2008
    ------------
    AS REPORTED:
    ------------
                                            ACUTE (1)
                                 12/31/08    12/31/07   %  change
                                 --------    --------   ---------

    Hospitals owned and leased         22          22        0.0%
    Average licensed beds           5,452       5,417        0.6%
    Patient days                1,200,672   1,172,130        2.4%
    Average daily census          3,280.5     3,211.3        2.2%
    Occupancy-licensed beds          60.2%       59.3%       1.5%
    Admissions                    268,207     262,147        2.3%
    Length of stay                    4.5         4.5        0.1%

    Inpatient revenue          $9,292,596  $8,375,435       11.0%
    Outpatient revenue          3,655,051   3,382,862        8.0%
    Total patient revenue      12,947,647  11,758,297       10.1%
    Other revenue                  72,578      58,661       23.7%
    Gross hospital revenue     13,020,225  11,816,958       10.2%

    Total deductions            9,350,721   8,406,590       11.2%

    Net hospital revenue       $3,669,504  $3,410,368        7.6%


    ------------
    AS REPORTED:
    ------------
                                      BEHAVIORAL HEALTH
                                 12/31/08    12/31/07   %  change
                                 --------    --------   ---------

    Hospitals owned and leased         81          85       -4.7%
    Average licensed beds           7,658       7,573        1.1%
    Patient days                2,085,114   2,007,119        3.9%
    Average daily census          5,697.0     5,499.0        3.6%
    Occupancy-licensed beds          74.4%       72.6%       2.5%
    Admissions                    129,553     119,730        8.2%
    Length of stay                   16.1        16.8       -4.0%

    Inpatient revenue          $1,951,560  $1,806,835        8.0%
    Outpatient revenue            258,022     235,920        9.4%
    Total patient revenue       2,209,582   2,042,755        8.2%
    Other revenue                  34,330      29,688       15.6%
    Gross hospital revenue      2,243,912   2,072,443        8.3%

    Total deductions              992,796     926,365        7.2%

    Net hospital revenue       $1,251,116  $1,146,078        9.2%



    SAME FACILITY:
    --------------
                                         ACUTE   (2)
                               12/31/08   12/31/07  %  change
                               --------   --------  ---------

    Hospitals owned and leased       22         22        0.0%
    Average licensed beds         5,287      5,292       -0.1%
    Patient days              1,158,353  1,149,422        0.8%
    Average daily census        3,164.9    3,149.1        0.5%
    Occupancy-licensed beds        59.9%      59.5%       0.6%
    Admissions                  256,873    256,681        0.1%
    Length of stay                  4.5        4.5        0.7%

                                   BEHAVIORAL HEALTH (3)
                               12/31/08   12/31/07  %  change
                               --------   --------  ---------

    Hospitals owned and leased       81         81        0.0%
    Average licensed beds         7,443      7,231        2.9%
    Patient days              2,038,217  1,974,322        3.2%
    Average daily census        5,568.9    5,409.1        3.0%
    Occupancy-licensed beds        74.8%      74.8%       0.0%
    Admissions                  127,226    119,585        6.4%
    Length of stay                 16.0       16.5        3.0%


    (1) Acute care hospitals located in New Orleans and discontinued
        operations are excluded in 2007 and 2008.

    (2) Acute care hospitals located in New Orleans, discontinued operations
        and Centennial Hills Hospital are excluded in current and prior years.

    (3) Casa de Lago, Central Florida, Summit Ridge Hospital and Shenandoah
        Valley are excluded in both current and prior years. Highlands
        Behavioral is included in both current and prior years from March 1st
        through year to date. Dover Behavioral is included in both current
        and prior years from May 1st through year to date. Foundations
        Behavioral is included in both current and prior years  from July 1st
        through year to date. Cottonwood Treatment is included in both current
        and prior years from August 1st through year to date. Broad Horizons,
        Highlander RTC, Midwest Youth and Vista Group Homes are excluded in
        both current and prior years from July 1st through year to date.





SOURCE Universal Health Services, Inc.
02/26/2009 CONTACT:
Steve Filton, Chief Financial Officer of Universal Health Services, Inc., +1-610-768-3300/
Web Site: http://www.uhsinc.com / (UHS UHT)

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