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Universal Health Services, Inc. Reports 2004 Fourth Quarter and Full Year Earnings

KING OF PRUSSIA, Pa., Feb 24, 2005 /PRNewswire-FirstCall via COMTEX/ -- Universal Health Services, Inc. (NYSE: UHS) announced today its results for the fourth quarter and full year ended December 31, 2004. Reported net income was $37.2 million or $.61 per diluted share during the fourth quarter of 2004, as compared to $46.5 million or $.75 per diluted share during the fourth quarter of 2003. For the full year of 2004, reported net income was $169.5 million or $2.75 per diluted share as compared to $199.3 million or $3.20 per diluted share during 2003. Net revenues were $995 million and $887 million during the three-month periods ended December 31, 2004 and 2003, respectively, and $3.94 billion and $3.39 billion during the twelve-month periods ended December 31, 2004 and 2003, respectively.

Reported income from continuing operations was $38.1 million or $.62 per diluted share during the fourth quarter of 2004 as compared to $45.2 million or $.73 per diluted share during the fourth quarter of 2003. Income from continuing operations was $170.0 million or $2.76 per diluted share during the year ended December 31, 2004 as compared to $192.1 million or $3.09 per diluted share during the prior year.

Excluding the impact of a cumulative reduction to current and prior year's compensation expense resulting from the reversal of expense related to restricted shares granted to our Chief Executive Officer that were contingent on an earnings threshold which was not achieved, our adjusted income from continuing operations was $30.7 million or $.51 per diluted share during the three-month period ended December 31, 2004. Adjusted income from continuing operations was $162.3 million or $2.65 per diluted share during the year ended December 31, 2004 (as calculated on the attached Schedule of Non-GAAP Supplemental Consolidated Income Statement Information).

At our acute care hospitals owned during both periods located in the U.S., net revenues increased 2.6% during the fourth quarter of 2004, as compared to the comparable prior year quarter, due primarily to a 3.3% increase in revenue per adjusted patient day. Admissions to these facilities decreased .5% and patient days decreased 1.8% during the fourth quarter of 2004, as compared to the prior year quarter. At our behavioral health hospitals owned in both periods, admissions increased 2.0%, patient days increased 7.4%, net revenues increased 5.1% and revenue per adjusted patient day increased .5% during the fourth quarter of 2004, as compared to the prior year quarter.

Our adjusted operating margin (as calculated on the attached Schedule of Non-GAAP Supplemental Consolidated Income Statement Information), decreased to 12.3% during the three-month period ended December 31, 2004 as compared to 15.2% during the same period of the prior year. The operating margin at our acute care hospitals located in the U.S. owned during both periods ("same facility basis") decreased to 13.9% during the three months ended December 31, 2004 as compared to 14.8% during the three months ended December 31, 2003. Also contributing to the decrease in our consolidated operating margin during the fourth quarter of 2004, as compared to the comparable prior year quarter, was a much lower operating margin experienced at an acute care facility purchased during the first quarter of 2004 and a newly constructed acute care facility which opened during the third quarter of 2004. On a same facility basis, the operating margin at our behavioral health hospitals decreased to 19.3% during the fourth quarter of 2004 from 25.4% during the comparable quarter of the prior year. Favorably impacting the operating margin at our behavioral health hospitals during the fourth quarter of 2003 was the reversal of $4 million of previously established bad debt reserves which were reversed as a result of a certain payor's emergence from Chapter 11 bankruptcy protection.

The provision for doubtful accounts was 7.0% of net revenues during the fourth quarter of 2004 as compared to 8.0% during the prior year's fourth quarter. The decrease resulted primarily from an increase in balances classified as charity care as a result of implementation of an indigent discount policy.

We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on February 25, 2005. 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 25, 2005 and will continue through midnight on March 4, 2005. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 3720717.

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).

Universal Health Services, Inc. is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide, in Puerto Rico and in France. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT). 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 related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in "Forward-Looking Statements and Risk Factors" on pages 17 and 18 of our Form 10-Q for the quarterly period ended September 30, 2004), 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 operating income and adjusted operating margin, which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles), are helpful to our investors as measures of our operating performance. In addition, we believe that comparing and discussing our financial results based on adjusted income from continuing operations, 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 such as reversal of previously recorded stock grant amortization, property write- downs, gains on sales of assets and businesses or other amounts reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance, operating income, operating margin and adjusted income from continuing operations should be examined in connection with net income, determined in accordance with accounting principles generally accepted in the United States of America, 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, 2003. Since the items included or excluded from operating income, operating margin and adjusted income from continuing operations are significant components in understanding and assessing financial performance under accounting principles generally accepted in the United States of America, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since operating income, operating margin and adjusted income from continuing operations are not measurements determined in accordance with accounting principles generally accepted in the United States of America and are thus susceptible to varying calculations, these measures as presented may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance. Below are schedules of Non-GAAP Supplemental Consolidated Income Statement Information which reconcile operating income and adjusted income from continuing operations to net income for the periods presented.

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

                                      Three months         Twelve months
                                   ended December 31,    ended December 31,
                                     2004      2003       2004        2003

    Net revenues                   $994,836  $887,286  $3,938,320  $3,391,506

    Operating charges:
       Salaries, wages and
        benefits                    404,865   356,524   1,607,103   1,355,047
       Other operating expenses     239,068   202,532     916,542     778,656
       Supplies expense             147,589   122,547     546,801     449,225
       Provision for doubtful
        accounts                     69,169    70,945     307,163     252,644
       Depreciation and
        amortization                 40,085    34,956     155,514     130,039
       Lease and rental expense      17,962    15,195      70,433      59,479
                                    918,738   802,699   3,603,556   3,025,090

    Income before interest
     expense, minority interests
     and income taxes                76,098    84,587     334,764     366,416


    Interest expense, net            10,930     9,915      43,405      37,855
    Minority interests in earnings
     of consolidated entities         3,316     2,221      20,216      22,265

    Income before income taxes       61,852    72,451     271,143     306,296

    Provision for income taxes       23,733    27,204     101,137     114,217

    Income from continuing
     operations                      38,119    45,247     170,006     192,079

    Income (loss) from
     discontinued operations, net
     of income tax expense (a)         (945)    1,221        (514)      7,190


    Net income                      $37,174   $46,468    $169,492    $199,269


    Basic earnings (loss) per
     share: (b)
         From continuing
          operations                  $0.66     $0.79       $2.95       $3.33
         From discontinued
          operations                 ($0.02)    $0.02      ($0.01)      $0.12
              Total basic earnings
               per share              $0.64     $0.81       $2.94       $3.45

    Diluted earnings (loss) per
     share: (b)
         From continuing
          operations                  $0.62     $0.73       $2.76       $3.09
         From discontinued
          operations                 ($0.01)    $0.02      ($0.01)      $0.11
              Total diluted
               earnings per share     $0.61     $0.75       $2.75       $3.20


                         Universal Health Services, Inc.
                  Footnotes to Consolidated Statements of Income

                                           Three months       Twelve months
                                        ended December 31,  ended December 31,
                                          2004     2003       2004      2003

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

    Income (loss) from operations        ($1,458)     $26   ($6,191)   $1,655
    Gains (losses), net                      (29)   6,786     5,382    14,623
    Provision for asset impairment           -    (13,742)      -     (13,742)
    Recovery of provision for
     judgment/closure costs                  -      8,867       -       8,867
    Income (loss) from discontinued
     operations, pre-tax                  (1,487)   1,937      (809)   11,403
    Income tax (provision)/benefit           542     (716)      295    (4,213)
    Income (loss) from discontinued
     operations, net of income tax
     expense                               ($945)  $1,221     ($514)   $7,190


    (b) Earnings per share calculation:

    Basic:
    Income from continuing operations    $38,119  $45,247  $170,006  $192,079
    Less: Dividends on unvested
     restricted stock, net of taxes          (27)     (28)     (111)      (28)
    Income from continuing operations -
     basic                               $38,092  $45,219  $169,895  $192,051
    Income (loss) from discontinued
     operations                             (945)   1,221      (514)    7,190
    Net income - basic                   $37,147  $46,440  $169,381  $199,241

    Weighted average number of common
     shares - basic                       57,635   57,466    57,653    57,688

    Basic earnings (loss) per share:
         From continuing operations        $0.66    $0.79     $2.95     $3.33
         From discontinued operations     ($0.02)   $0.02    ($0.01)    $0.12
              Total basic earnings per
               share                       $0.64    $0.81     $2.94     $3.45

    Diluted:
    Income from continuing operations    $38,119  $45,247  $170,006  $192,079
    Less: Dividends on unvested
     restricted stock, net of taxes          (27)     (28)     (111)      (28)
    Add: Debenture interest, net of
     taxes                                 2,334    2,222     9,240     8,799
    Income from continuing operations -
     diluted                             $40,426  $47,441  $179,135  $200,850
    Income (loss) from discontinued
     operations                             (945)   1,221      (514)    7,190
    Net income - diluted                 $39,481  $48,662  $178,621  $208,040

    Weighted average number of common
     shares                               57,635   57,466    57,653    57,688
    Add: Shares for conversion of
          convertible debentures           6,577    6,577     6,577     6,577
         Other share equivalents             280      935       635       824
    Weighted average number of common
     shares and equiv. - diluted          64,492   64,978    64,865    65,089

    Diluted earnings (loss) per share:
         From continuing operations        $0.62    $0.73     $2.76     $3.09
         From discontinued operations     ($0.01)   $0.02    ($0.01)    $0.11
              Total diluted earnings per
               share                       $0.61    $0.75     $2.75     $3.20


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

                                               December 31,      December 31,
                                                   2004              2003

    Assets:
    Cash and cash equivalents                      $33,125           $34,863
    Accounts receivable, net                       552,538           503,929
    Other current assets                            90,392           106,999
    Property, plant and equipment, net           1,448,066         1,304,341
    Other assets                                   765,852           822,598
    Assets held for sale                           132,870               -
    Total Assets                                $3,022,843        $2,772,730

    Liabilities and Stockholders' Equity:
    Current portion of long-term debt              $16,968           $10,871
    Liabilities held for sale                       14,720               -
    Other current liabilities                      437,968           384,882
    Other noncurrent liabilities                   243,617           216,094
    Long-term debt                                 852,229           868,566
    Deferred income taxes                           50,212            41,841
    Minority interest                              186,543           159,554
    Stockholders' equity                         1,220,586         1,090,922
    Total Liabilities and Stockholders' Equity  $3,022,843        $2,772,730


                       Universal Health Services, Inc.
                Schedule of Non-GAAP Supplemental Consolidated
                       Statements of Income Information
            For the Three Months Ended December 31, 2004 and 2003
                                (in thousands)
                                 (unaudited)

                                        Three months ended  Three months ended
                                         December 31, 2004   December 31, 2003


    Net revenues                           $994,836  100.0%  $887,286  100.0%

    Operating charges:
       Salaries, wages and benefits         404,865   40.7%   356,524   40.2%
       Other operating expenses             239,068   24.0%   202,532   22.8%
       Supplies expense                     147,589   14.8%   122,547   13.8%
       Provision for doubtful accounts       69,169    7.0%    70,945    8.0%
                                            860,691   86.5%   752,548   84.8%

    Operating income/margin                 134,145   13.5%   134,738   15.2%

       Lease and rental expense              17,962            15,195
       Minority interests in earnings of
        consolidated entities                 3,316             2,221

    Earnings before depreciation and
     amortization, interest expense, and
     income taxes ("EBITDA")                112,867           117,322

       Depreciation and amortization         40,085            34,956
       Interest expense, net                 10,930             9,915

    Income before income taxes               61,852            72,451

    Provision for income taxes               23,733            27,204

    Income from continuing operations        38,119            45,247

    Income (loss) from discontinued
     operations, net of income taxes           (945)            1,221

    Net income                              $37,174           $46,468


                                        Three months ended  Three months ended
                                         December 31, 2004   December 31, 2003

                                                       Per               Per
    Calculation of Adjusted Income from              Diluted           Diluted
     Continuing Operations                   Amount   Share    Amount   Share

    Income from continuing operations        $38,119   $0.62   $45,247  $0.73
    Less:  After-tax reversal of previously
     recorded stock grant amortization
     expense                                  (7,394) ($0.11)      -      -
    Adjusted income from continuing
     operations                              $30,725   $0.51   $45,247  $0.73


    Calculation of Adjusted Operating
     Income/Margin                           Amount   Margin   Amount  Margin

    Operating income/margin                 $134,145   13.5%  $134,738  15.2%
    Less:  Pre-tax reversal of previously
     recorded stock grant amortization
     expense                                 (11,632)  (1.2%)      -      -
    Adjusted operating income/margin        $122,513   12.3%  $134,738  15.2%


                         Universal Health Services, Inc.
                 Schedule of Non-GAAP Supplemental Consolidated
                        Statements of Income Information
              For the Twelve Months Ended December 31, 2004 and 2003
                                  (in thousands)
                                   (unaudited)

                                     Twelve months ended  Twelve months ended
                                       December 31, 2004   December 31, 2003


    Net revenues                       $3,938,320  100.0%  $3,391,506  100.0%

    Operating charges:
       Salaries, wages and benefits     1,607,103   40.8%   1,355,047   40.0%
       Other operating expenses           916,542   23.3%     778,656   23.0%
       Supplies expense                   546,801   13.9%     449,225   13.2%
       Provision for doubtful accounts    307,163    7.8%     252,644    7.4%
                                        3,377,609   85.8%   2,835,572   83.6%

    Operating income/margin               560,711   14.2%     555,934   16.4%

       Lease and rental expense            70,433              59,479
       Minority interests in earnings
        of consolidated entities           20,216              22,265

    Earnings before depreciation and
     amortization, interest expense,
     and income taxes ("EBITDA")          470,062             474,190

       Depreciation and amortization      155,514             130,039
       Interest expense, net               43,405              37,855

    Income before income taxes            271,143             306,296

    Provision for income taxes            101,137             114,217

    Income from continuing operations     170,006             192,079

    Income (loss) from discontinued
     operations, net of income taxes         (514)              7,190

    Net income                           $169,492            $199,269


                                             Twelve months     Twelve months
                                                 ended             ended
                                          December 31, 2004  December 31, 2003

                                                       Per               Per
    Calculation of Adjusted Income from              Diluted           Diluted
     Continuing Operations                   Amount   Share    Amount   Share

    Income from continuing operations       $170,006   $2.76  $192,079  $3.09
    Less:  After-tax DSH revenue
     attributable to prior year               (1,748) ($0.02)      -      -
    Add:  After-tax hurricane property
     damage                                    1,474   $0.02       -      -
    Less:  After-tax reversal of previously
     recorded stock grant amortization
     expense                                  (7,394) ($0.11)      -      -
    Adjusted income from continuing
     operations                             $162,338   $2.65  $192,079  $3.09


    Calculation of Adjusted Operating
     Income/Margin                           Amount   Margin   Amount  Margin

    Operating income/margin                 $560,711   14.2%  $555,934  16.4%
    Less:  Pre-tax reversal of previously
     recorded stock grant amortization
     expense                                 (11,632)  (0.3%)      -      -
    Adjusted operating income/margin        $549,079   13.9%  $555,934  16.4%


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

                                                    % Change        % Change
                                                 Quarter Ended   12 mos. ended
    Same Facility:                                 12/31/2004      12/31/2004

    Acute Care Hospitals
    Revenues                                           2.6%              3.1%
    Adjusted Admissions                                0.9%              0.3%
    Adjusted Patient Days                             -0.7%             -0.4%
    Revenue Per Adjusted Admission                     1.7%              2.8%
    Revenue Per Adjusted Patient Day                   3.3%              3.4%


    Behavioral Health Hospitals

    Revenues                                           7.3%              7.9%
    Adjusted Admissions                                1.5%              5.4%
    Adjusted Patient Days                              6.8%              6.3%
    Revenue Per Adjusted Admission                     5.7%              2.4%
    Revenue Per Adjusted Patient Day                   0.5%              1.5%



    UHS Consolidated              Fourth Quarter Ended  Twelve months Ended
                                 12/31/2004 12/31/2003 12/31/2004 12/31/2003

    Revenues                       $994,836  $887,286  $3,938,320  $3,391,506
    EBITDA (1)                      112,867   117,322     470,062     474,190
    EBITDA Margin (1)                 11.3%     13.2%       11.9%       14.0%

    Cash Flow From Operations        81,015    63,373     394,529     376,775
    Days Sales Outstanding               51        52          51          54
    Capital Expenditures             54,658    57,140     231,987     224,370

    Debt (net of cash)                     -         -    836,072    $844,574
    Shareholders Equity                    -         -  1,220,586  $1,090,922
    Debt / Total Capitalization            -         -      40.7%       43.6%
    Debt / EBITDA                          -         -       1.78        1.78
    Debt / Cash From Operations            -         -       2.12        2.24


    Acute Care EBITDAR Margin (2)     12.5%     15.3%       14.7%       18.1%
    Behavioral Health EBITDAR
     Margin (2)                       19.0%     25.4%       22.3%       23.5%

    (1)  Net of Minority Interest
    (2)  Before Corporate overhead allocation and minority interest


                       UNIVERSAL HEALTH SERVICES, INC.
                         SELECTED HOSPITAL STATISTICS
                              DECEMBER 31, 2004

         AS REPORTED:
                                              FOR THE THREE MONTHS ENDED

                                                  ACUTE (1) (2)
                                             12/31/04      12/31/03       %

           Hospitals owned and leased               25            25     0.0%
           Average licensed beds                 5,602         4,998    12.1%
           Patient days                        284,920       260,778     9.3%
           Average daily census                3,097.0       2,834.5     9.3%
           Occupancy-licensed beds               55.3%         56.7%    -2.5%
           Admissions                           63,218        57,795     9.4%
           Length of stay                          4.5           4.5    -0.1%

           Inpatient revenue                $1,692,754    $1,453,424    16.5%
           Outpatient revenue                  648,448       512,535    26.5%
           Total patient revenue             2,341,202     1,965,959    19.1%
           Other revenue                         8,274         8,261     0.2%
           Gross hospital revenue            2,349,476     1,974,220    19.0%

           Total deductions                  1,629,805     1,339,457    21.7%

           Net hospital revenue               $719,671      $634,763    13.4%


                                                BEHAVIORAL HEALTH
                                              12/31/04     12/31/03       %

           Hospitals owned and leased               44            39    12.8%
           Average licensed beds                 4,386         3,902    12.4%
           Patient days                        320,753       265,733    20.7%
           Average daily census                3,486.4       2,888.4    20.7%
           Occupancy-licensed beds               79.5%         74.0%     7.4%
           Admissions                           22,896        21,756     5.2%
           Length of stay                         14.0          12.2    14.7%

           Inpatient revenue                  $318,264      $274,269    16.0%
           Outpatient revenue                   45,538        40,600    12.2%
           Total patient revenue               363,802       314,869    15.5%
           Other revenue                         7,482         7,432     0.7%
           Gross hospital revenue              371,284       322,301    15.2%

           Total deductions                    192,938       167,501    15.2%

           Net hospital revenue               $178,346      $154,800    15.2%


         SAME FACILITY:
                                       FOR THE THREE MONTHS ENDED

                               ACUTE (1) (3)          BEHAVIORAL HEALTH (4)
                             12/31/04 12/31/03    %   12/31/04 12/31/03   %

         Hospitals owned and
          leased                   25       25   0.0%       39       39  0.0%
         Average licensed
          beds                  4,894    4,998  -2.1%    3,980    3,902  2.0%
         Patient days         255,990  260,778  -1.8%  285,494  265,733  7.4%
         Average daily census 2,782.5  2,834.5  -1.8%  3,103.2  2,888.2  7.4%
         Occupancy-licensed
          beds                  56.9%    56.7%   0.3%    78.0%    74.0%  5.3%
         Admissions            57,488   57,795  -0.5%   22,195   21,756  2.0%
         Length of stay           4.5      4.5  -1.3%     12.9     12.2  5.3%


         (1) Does not include hospitals located in France
         (2) Does not include discontinued operations
         (3) Does not include discontinued operations, Corona,
             Methodist/Lakeland or Lakewood Ranch in current or prior years.
             Spring Valley is included in the current and prior year from
             October 1st through year end.
         (4) Stonington is excluded in both current and prior years from April
             1 through year end and the four facilities purchased from
             Keystone are excluded in both years from May 1 through year end.


                       UNIVERSAL HEALTH SERVICES, INC.
                         SELECTED HOSPITAL STATISTICS
                              DECEMBER 31, 2004

         AS REPORTED:
                                               FOR THE TWELVE MONTHS ENDED

                                                  ACUTE (1) (2)
                                            12/31/04      12/31/03       %

           Hospitals owned and leased               25            25     0.0%
           Average licensed beds                 5,645         4,792    17.8%
           Patient days                      1,150,882     1,032,348    11.5%
           Average daily census                3,144.5       2,828.4    11.2%
           Occupancy-licensed beds               55.7%         59.0%    -5.6%
           Admissions                          251,655       227,932    10.4%
           Length of stay                          4.6           4.5     1.0%

           Inpatient revenue                $6,732,660    $5,658,490    19.0%
           Outpatient revenue                2,544,891     1,985,040    28.2%
           Total patient revenue             9,277,551     7,643,530    21.4%
           Other revenue                        35,604        37,757    -5.7%
           Gross hospital revenue            9,313,155     7,681,287    21.2%

           Total deductions                  6,415,436     5,181,737    23.8%

           Net hospital revenue             $2,897,719    $2,499,550    15.9%


                                               BEHAVIORAL HEALTH
                                             12/31/04      12/31/03       %

           Hospitals owned and leased               44            39    12.8%
           Average licensed beds                 4,225         3,894     8.5%
           Patient days                      1,234,152     1,067,200    15.6%
           Average daily census                3,372.0       2,923.8    15.3%
           Occupancy-licensed beds               79.8%         75.1%     6.3%
           Admissions                           94,743        87,688     8.0%
           Length of stay                         13.0          12.2     7.0%

           Inpatient revenue                $1,238,131    $1,091,885    13.4%
           Outpatient revenue                  177,360       156,115    13.6%
           Total patient revenue             1,415,491     1,248,000    13.4%
           Other revenue                        32,849        33,345    -1.5%
           Gross hospital revenue            1,448,340     1,281,345    13.0%

           Total deductions                    749,568       668,941    12.1%

           Net hospital revenue               $698,772      $612,404    14.1%


         SAME FACILITY:
                                               FOR THE TWELVE MONTHS ENDED

                                                ACUTE (1) (3)
                                            12/31/04      12/31/03       %

           Hospitals owned and leased              25            25      0.0%
           Average licensed beds                4,837         4,792      0.9%
           Patient days                     1,018,249     1,032,348     -1.4%
           Average daily census               2,782.1       2,828.6     -1.6%
           Occupancy-licensed beds              57.5%         59.0%     -2.6%
           Admissions                         225,803       227,932     -0.9%
           Length of stay                         4.5           4.5     -0.4%


                                              BEHAVIORAL HEALTH (4)
                                             12/31/04      12/31/03       %

           Hospitals owned and leased              39            39      0.0%
           Average licensed beds                3,947         3,894      1.4%
           Patient days                     1,138,297     1,067,200      6.7%
           Average daily census               3,110.1       2,923.8      6.4%
           Occupancy-licensed beds              78.8%         75.1%      4.9%
           Admissions                          92,850        87,688      5.9%
           Length of stay                        12.3          12.2      0.7%

         (1) Does not include hospitals located in France
         (2) Does not include discontinued operations
         (3) Does not include discontinued operations, Corona,
             Methodist/Lakeland or Lakewood Ranch in current or prior years.
             Spring Valley is included in the current and prior year from
             October 1st through year end.
         (4) Stonington is excluded in both current and prior years from April
             1 through year end and the four facilities purchased from
             Keystone are excluded in both years from May 1 through year end.

SOURCE Universal Health Services, Inc.

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

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