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Universal Health Services, Inc. Reports Second Quarter Earnings, Including Gain on Sale of French Assets

KING OF PRUSSIA, Pa., July 27, 2005 /PRNewswire-FirstCall via COMTEX/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its net income was $146.5 million or $2.34 per diluted share during the three-month period ended June 30, 2005 as compared to $48.3 million or $.78 per diluted share during the second quarter of 2004. Net income was $207.9 million or $3.32 per diluted share during the six-month period ended June 30, 2005 as compared to $94.4 million or $1.52 per diluted share during the prior year six-month period. Net revenues increased 9% to $991 million during the second quarter of 2005 as compared to $905 million during the quarter ended June 30, 2004. Net revenues increased 10% to $2.0 billion during the six-month period ended June 30, 2005 as compared to $1.8 billion during the prior year six-month period.

Included in the reported results for the quarter ended June 30, 2005 (as listed on the attached Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information) was an after-tax gain of $108.3 million or $1.70 per diluted share resulting from the sale of our 81.5% ownership interest in Medi-Partenaires, an operating company which owned fourteen hospitals in France. The operating results of these facilities, as well as the gain resulting from the divestiture, are reflected as discontinued operations in the Consolidated Statements of Income for the three-month and six-month periods ended June 30, 2005 and 2004. Included in the reported results for the quarter ended June 30, 2004 was a net after-tax gain of $1.5 million or $.02 per diluted share resulting primarily from the sale of two acute care facilities located in Louisiana and one acute care facility located in Puerto Rico. Excluding these gains from both three-month periods, our adjusted net income was $38.2 million or $.64 per diluted share during the three-months ended June 30, 2005 as compared to $46.8 million or $.76 per diluted share during the three-months ended June 30, 2004.

Included in the reported results for the six-month period ended June 30, 2005 was a net after-tax gain on the sale of facilities of $114.1 million or $1.78 per diluted share resulting from the sale of our ownership interest in Medi-Partenaires during the second quarter of 2005 and the sale of two acute care hospitals located in Puerto Rico and a home health business in Florida sold during the first quarter of 2005. Also included in our reported results during the six-month period ended June 30, 2005 was an after-tax impairment charge of $2.0 million or $.03 per diluted share recorded in connection with a women's hospital located in Edmond, Oklahoma which is scheduled to close in late September, 2005. Included in the reported results for the six-month period ended June 30, 2004 was a net after-tax gain on sale of facilities of $1.5 million or $.02 per diluted share recorded during the second quarter of 2004, as mentioned above, as well as prior period Medicaid disproportionate share hospital revenue recorded during the first quarter of 2004 amounting to $1.7 million (after-tax) or $.02 per diluted share. Excluding these items from both six-month periods, our adjusted net income was $95.8 million or $1.57 per diluted share during the six-months ended June 30, 2005 as compared to $91.2 million or $1.48 per diluted share during the six-months ended June 30, 2004.

At our acute care hospitals owned during both periods, inpatient admissions increased 2.7%, patient days increased 2.1%, revenues increased 6.6% and revenue per adjusted patient day increased 4.1% during the 2005 second quarter, as compared to the comparable prior year quarter. At our behavioral health hospitals owned in both periods, inpatient admissions increased 7.6%, patient days increased 7.3%, revenues increased 9.4%, and revenue per adjusted patient day increased 2.0% during the second quarter of 2005 as compared to the comparable prior year quarter.

Our consolidated operating margin decreased to 12.8% during the three- month period ended June 30, 2005 as compared to 14.9% during the same prior year quarter. At our acute care hospitals owned during both three-month periods ended June 30, 2005 and June 30, 2004, the operating margin decreased to 13.3% during the second quarter of 2005 from 15.9% during the second quarter of the prior year. The operating margin at our behavioral health hospitals owned during both periods increased to 25.5% during the second quarter of 2005 from 24.1% during the comparable quarter of the prior year.

Contributing significantly to the decrease in our operating margin and net income during the second quarter of 2005, as compared to the comparable prior year quarter, was a decrease in the combined admissions, patient days and payer mix at our acute care hospitals located in the McAllen/Edinburg, Texas market resulting primarily from continued intense competition from a physician-owned hospital in the market. In addition, an increased level of uninsured patients in our acute care hospitals during the quarter unfavorably impacted our bad debt expense and increased the level of charity care provided.

During the second quarter of 2005, using the cash proceeds generated from the sales of facilities as well as the net cash provided by operations, we repaid approximately $87 million of debt and purchased approximately 2.65 million shares of our outstanding common stock for approximately $59 per share or $156 million in the aggregate.

We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on July 28, 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 July 28, 2005 and will continue through midnight on August 5, 2005. The recording can be accessed by calling 1-800- 642-1687 and entering the conference ID number of 7490517. This call will also be available live over the internet at our web site at http://www.uhsinc.com.

Universal Health Services, Inc. is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT). For additional information on the Company, visit our website: 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 March 31, 2005), 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, adjusted operating income and adjusted operating margin, 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 such as 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 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, 2004. 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. Below are Schedules of Non-GAAP Supplemental Consolidated Income Statement Information which reconcile these measures to net income for the periods presented.

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

                                      Three months           Six months
                                     ended June 30,        ended June 30,
                                     2005      2004       2005        2004

    Net revenues                   $990,888  $905,494  $1,997,533  $1,812,620

    Operating charges:
       Salaries, wages and
        benefits                    407,897   369,335     814,237     740,793
       Other operating expenses     234,707   213,274     465,872     421,229
       Supplies expense             126,124   113,521     252,660     229,105
       Provision for doubtful
        accounts                     95,478    74,244     177,886     157,801
       Depreciation and
        amortization                 37,988    35,033      77,684      68,342
       Lease and rental expense      15,288    15,255      30,755      30,148
                                    917,482   820,662   1,819,094   1,647,418

    Income before interest
     expense, minority interests
     and
    income taxes                     73,406    84,832     178,439     165,202


    Interest expense, net             7,450     9,359      18,126      18,926
    Minority interests in earnings
         of consolidated entities     7,926     5,183      15,845       8,710

    Income before income taxes       58,030    70,290     144,468     137,566

    Provision for income taxes       21,398    25,908      53,146      50,671

    Income from continuing
     operations                      36,632    44,382      91,322      86,895

    Income from discontinued
     operations, net of income tax
    expense (a)                     109,822     3,907     116,541       7,578


    Net income                     $146,454   $48,289    $207,863     $94,473


    Basic earnings per share: (b)
         From continuing
          operations                  $0.65     $0.77       $1.60       $1.51
         From discontinued
          operations                   1.95      0.07        2.05        0.13
              Total basic earnings
               per share              $2.60     $0.84       $3.65       $1.64

    Diluted earnings per share: (b)
         From continuing
          operations                  $0.61     $0.72       $1.50       $1.40
         From discontinued
          operations                   1.73      0.06        1.82        0.12
              Total diluted
               earnings per share     $2.34     $0.78       $3.32       $1.52



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

                                           Three months        Six months
                                          ended June 30,     ended June 30,
                                           2005     2004      2005     2004

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

    Income from operations                 $2,602   $4,039    $4,433  $10,114
    Gains on divestitures                 164,736    2,338   173,831    2,338
    Income from discontinued operations,
     pre-tax                              167,338    6,377   178,264   12,452
    Income tax provision                  (57,516)  (2,470)  (61,723)  (4,874)
    Income from discontinued operations,
     net of income tax expense           $109,822   $3,907  $116,541   $7,578


    (b) Earnings per share calculation:

    Basic:
    Income from continuing operations     $36,632  $44,382   $91,322  $86,895
    Less: Dividends on unvested
     restricted stock, net of taxes           (28)     (28)      (55)     (56)
    Income from continuing operations -
     basic                                $36,604  $44,354   $91,267  $86,839
    Income from discontinued operations   109,822    3,907   116,541    7,578
    Net income - basic                   $146,426  $48,261  $207,808  $94,417

    Weighted average number of common
     shares - basic                        56,425   57,622    56,974   57,593

    Basic earnings per share:
         From continuing operations         $0.65    $0.77     $1.60    $1.51
         From discontinued operations        1.95     0.07      2.05     0.13
              Total basic earnings per
               share                        $2.60    $0.84     $3.65    $1.64

    Diluted:
    Income from continuing operations     $36,632  $44,382   $91,322  $86,895
    Less: Dividends on unvested
     restricted stock, net of taxes           (28)     (28)      (55)     (56)
    Add: Debenture interest, net of
     taxes                                  2,382    2,305     4,764    4,573
    Income from continuing operations -
     diluted                              $38,986  $46,659   $96,031  $91,412
    Income from discontinued operations   109,822    3,907   116,541    7,578
    Net income - diluted                 $148,808  $50,566  $212,572  $98,990

    Weighted average number of common
     shares                                56,425   57,622    56,974   57,593
    Add: Shares for conversion of
     convertible debentures                 6,577    6,577     6,577    6,577
             Other share equivalents          646      774       481      860
    Weighted average number of common
     shares and equiv. - diluted           63,648   64,973    64,032   65,030

    Diluted earnings per share:
         From continuing operations         $0.61    $0.72     $1.50    $1.40
         From discontinued operations        1.73     0.06      1.82     0.12
              Total diluted earnings per
               share                        $2.34    $0.78     $3.32    $1.52



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


                                                 June 30,        December 31,
                                                   2005              2004

    Assets:
    Cash and cash equivalents                     $114,747           $33,125
    Accounts receivable, net                       550,437           552,538
    Other current assets                            97,591            90,392
    Property, plant and equipment, net           1,351,062         1,448,066
    Other assets                                   656,488           765,852
    Assets held for sale                               -             132,870
    Total Assets                                $2,770,325        $3,022,843

    Liabilities and Stockholders' Equity:
    Current portion of long-term debt               $3,994           $16,968
    Liabilities held for sale                          -              11,116
    Other current liabilities                      479,587           441,572
    Other noncurrent liabilities                   261,099           243,617
    Long-term debt                                 525,849           852,229
    Deferred income taxes                           49,161            50,212
    Minority interest                              168,849           186,543
    Stockholders' equity                         1,281,786         1,220,586
    Total Liabilities and Stockholders'
     Equity                                     $2,770,325        $3,022,843



                         Universal Health Services, Inc.
       Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                                   Information
                For the Three Months Ended June 30, 2005 and 2004
                                  (in thousands)
                                   (unaudited)

                                         Three months ended Three months ended
                                            June 30, 2005     June 30, 2004


    Net revenues                           $990,888  100.0%  $905,494  100.0%

    Operating charges:
       Salaries, wages and benefits         407,897   41.2%   369,335   40.8%
       Other operating expenses             234,707   23.7%   213,274   23.6%
       Supplies expense                     126,124   12.7%   113,521   12.5%
       Provision for doubtful accounts       95,478    9.6%    74,244    8.2%
                                            864,206   87.2%   770,374   85.1%

    Operating income/margin                 126,682   12.8%   135,120   14.9%

       Lease and rental expense              15,288            15,255
       Minority interests in earnings of
        consolidated entities                 7,926             5,183

    Earnings before depreciation and
     amortization, interest expense, and
     income taxes ("EBITDA")                103,468           114,682

       Depreciation and amortization         37,988            35,033
       Interest expense, net                  7,450             9,359

    Income before income taxes               58,030            70,290

    Provision for income taxes               21,398            25,908

    Income from continuing operations        36,632            44,382

    Income from discontinued operations,
     net of income taxes                    109,822             3,907

    Net income                             $146,454           $48,289



                                         Three months ended Three months ended
                                            June 30, 2005     June 30, 2004
                                                      Per               Per
                                                    Diluted           Diluted
                                           Amount    Share    Amount   Share
    Calculation of Adjusted Net Income
    Net income                             $146,454   $2.34   $48,289   $0.78
    Less:  After-tax gain on sale of
     facilities                            (108,291)  (1.70)   (1,486)  (0.02)
    Adjusted net income                     $38,163   $0.64   $46,803   $0.76



                         Universal Health Services, Inc.
       Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                                   Information
                 For the Six Months Ended June 30, 2005 and 2004
                                  (in thousands)
                                   (unaudited)

                                        Six months ended    Six months ended
                                         June 30, 2005       June 30, 2004


    Net revenues                       $1,997,533  100.0%  $1,812,620  100.0%

    Operating charges:
       Salaries, wages and benefits       814,237   40.8%     740,793   40.9%
       Other operating expenses           465,872   23.3%     421,229   23.2%
       Supplies expense                   252,660   12.6%     229,105   12.6%
       Provision for doubtful accounts    177,886    8.9%     157,801    8.7%
                                        1,710,655   85.6%   1,548,928   85.5%

    Operating income/margin               286,878   14.4%     263,692   14.5%

       Lease and rental expense            30,755              30,148
       Minority interests in earnings
        of consolidated entities           15,845               8,710

    Earnings before depreciation and
     amortization, interest expense,
     and income taxes ("EBITDA")          240,278             224,834

       Depreciation and amortization       77,684              68,342
       Interest expense, net               18,126              18,926

    Income before income taxes            144,468             137,566

    Provision for income taxes             53,146              50,671

    Income from continuing operations      91,322              86,895

    Income from discontinued
     operations, net of income taxes      116,541               7,578

    Net income                           $207,863             $94,473



                                         Six months ended  Six months ended
                                           June 30, 2005    June 30, 2004
                                                     Per              Per
                                                   Diluted          Diluted
                                           Amount   Share   Amount   Share
    Calculation of Adjusted Income from
     Continuing Operations
    Income from continuing operations      $91,322  $1.50   $86,895  $1.40
    Less:  After-tax DSH revenue
     attributable to prior year                -      -      (1,748) (0.02)
    Adjusted income from continuing
     operations                            $91,322  $1.50   $85,147  $1.38

    Calculation of Adjusted Net Income
    Net income                            $207,863  $3.32   $94,473  $1.52
    Add:  After-tax asset impairment
     charge                                  1,974   0.03       -      -
    Less:  After-tax gain on sale of
     facilities                           (114,073) (1.78)   (1,486) (0.02)
    Less:  After-tax DSH revenue
     attributable to prior year                -      -      (1,748) (0.02)
    Adjusted net income                    $95,764  $1.57   $91,239  $1.48

                                           Amount  Margin   Amount  Margin
    Calculation of Adjusted Operating
     Income/Margin
    Operating income/margin               $286,878  14.4%  $263,692  14.5%
    Less:  After-tax DSH revenue
     attributable to prior year                -      -      (1,748)   -
    Adjusted operating income/margin      $286,878  14.4%  $261,944  14.5%



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


                                                   % Change          % Change
                                                Quarter Ended   6 months ended
    Same Facility:                                 6/30/2005         6/30/2005

    Acute Care Hospitals
    Revenues                                           6.6%              7.7%
    Adjusted Admissions                                2.6%              2.4%
    Adjusted Patient Days                              2.4%              1.9%
    Revenue Per Adjusted Admission                     3.9%              5.1%
    Revenue Per Adjusted Patient Day                   4.1%              5.7%


    Behavioral Health Hospitals

    Revenues                                           9.4%              7.5%
    Adjusted Admissions                                7.2%              3.6%
    Adjusted Patient Days                              7.3%              5.0%
    Revenue Per Adjusted Admission                     2.1%              3.7%
    Revenue Per Adjusted Patient Day                   2.0%              2.3%



    UHS Consolidated              Second Quarter Ended    Six months Ended
                                  6/30/2005 6/30/2004  6/30/2005   6/30/2004

    Revenues                       $990,888  $905,494  $1,997,533  $1,812,620
    EBITDA   (1)                    103,468   114,682     240,278     224,834
    EBITDA Margin (1)                 10.4%     12.7%       12.0%       12.4%

    Cash Flow From Operations        92,260   129,549     226,872     224,675
    Days Sales Outstanding               51        52          50          51
    Capital Expenditures             50,927    47,582     108,847     118,018

    Debt (net of cash)                               -    415,096    $826,445
    Shareholders Equity                              -  1,281,786  $1,178,943
    Debt / Total Capitalization                      -      24.5%       41.2%
    Debt / EBITDA  (2)                               -       0.85        1.71
    Debt / Cash From Operations (2)                  -       1.05        2.13


    Acute Care EBITDAR Margin  (3)    13.2%     15.7%       15.0%       15.3%
    Behavioral Health EBITDAR
     Margin  (3)                      25.5%     24.1%       25.0%       24.1%


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



                       UNIVERSAL HEALTH SERVICES, INC.
                         SELECTED HOSPITAL STATISTICS
                                JUNE 30, 2005



            AS REPORTED:
                                               FOR THE THREE MONTHS ENDED

                                                    ACUTE (1) (2)
                                              06/30/05      06/30/04       %

            Hospitals owned and leased              24            23     4.3%
            Average licensed beds                5,552         5,704    -2.7%
            Patient days                       289,568       281,476     2.9%
            Average daily census               3,147.5       3,059.5     2.9%
            Occupancy-licensed beds              56.7%         53.6%     5.7%
            Admissions                          64,301        61,907     3.9%
            Length of stay                         4.5           4.5    -1.0%

            Inpatient revenue               $1,839,847    $1,644,878    11.9%
            Outpatient revenue                 718,853       632,882    13.6%
            Total patient revenue            2,558,700     2,277,760    12.3%
            Other revenue                       14,382         8,788    63.7%
            Gross hospital revenue           2,573,082     2,286,548    12.5%

            Total deductions                 1,792,209     1,568,221    14.3%

            Net hospital revenue              $780,873      $718,327     8.7%


                                               FOR THE THREE MONTHS ENDED

                                                BEHAVIORAL HEALTH
                                             06/30/05     06/30/04       %

             Hospitals owned and leased            44           44      0.0%
             Average licensed beds              4,456        4,214      5.7%
             Patient days                     343,214      310,723     10.5%
             Average daily census             3,730.6      3,377.4     10.5%
             Occupancy-licensed beds            83.7%        80.1%      4.5%
             Admissions                        25,983       23,944      8.5%
             Length of stay                      13.2         13.0      1.8%

             Inpatient revenue               $344,811     $310,737     11.0%
             Outpatient revenue                51,466       46,472     10.7%
             Total patient revenue            396,277      357,209     10.9%
             Other revenue                      8,719        8,610      1.3%
             Gross hospital revenue           404,996      365,819     10.7%

             Total deductions                 205,608      188,087      9.3%

             Net hospital revenue            $199,388     $177,732     12.2%



         SAME FACILITY:
                                       FOR THE THREE MONTHS ENDED

                              ACUTE  (1) (3)        BEHAVIORAL HEALTH (4)
                            06/30/05 06/30/04    %   06/30/05 06/30/04    %

         Hospitals owned and
          leased                  23       23   0.0%       44       44   0.0%
         Average licensed
          beds                 5,432    5,704  -4.8%    4,341    4,214   3.0%
         Patient days        287,314  281,463   2.1%  333,497  310,729   7.3%
         Average daily
          census             3,157.3  3,093.0   2.1%  3,664.8  3,414.6   7.3%
         Occupancy-licensed
          beds                 58.1%    54.2%   7.2%    84.4%    81.0%   4.2%
         Admissions           63,567   61,907   2.7%   25,773   23,944   7.6%
         Length of stay          4.5      4.5  -0.6%     12.9     13.0  -0.3%


         (1) Does not include hospitals located in France
         (2) Does not include Discontinued Operations
         (3) All Discontinued Operations and Lakewood Ranch are excluded in
             current and prior years. Lakeland is included in both current and
             prior years for January only.
         (4) Stonington is included in both current and prior years from April
             1 through year to date. The four facilities purchased from
             Keystone are included in both current and prior years from May
             1st through year to date.



                       UNIVERSAL HEALTH SERVICES, INC.
                         SELECTED HOSPITAL STATISTICS
                                JUNE 30, 2005


         AS REPORTED:
                                                  FOR THE SIX MONTHS ENDED

                                                    ACUTE (1) (2)
                                              06/30/05      06/30/04       %

            Hospitals owned and leased              24            23     4.3%
            Average licensed beds                5,551         5,678    -2.2%
            Patient days                       602,068       585,086     2.9%
            Average daily census               3,326.3       3,214.8     3.5%
            Occupancy-licensed beds              59.9%         56.6%     5.8%
            Admissions                         131,392       126,457     3.9%
            Length of stay                         4.6           4.6    -1.0%

            Inpatient revenue               $3,786,715    $3,396,296    11.5%
            Outpatient revenue               1,409,433     1,249,316    12.8%
            Total patient revenue            5,196,148     4,645,612    11.9%
            Other revenue                       27,498        17,799    54.5%
            Gross hospital revenue           5,223,646     4,663,411    12.0%

            Total deductions                 3,636,149     3,212,633    13.2%

            Net hospital revenue            $1,587,497    $1,450,778     9.4%


                                                FOR THE SIX MONTHS ENDED

                                               BEHAVIORAL HEALTH
                                             06/30/05     06/30/04       %

             Hospitals owned and leased            44           44      0.0%
             Average licensed beds              4,435        4,059      9.3%
             Patient days                     669,088      594,621     12.5%
             Average daily census             3,696.6      3,267.1     13.1%
             Occupancy-licensed beds            83.4%        80.5%      3.6%
             Admissions                        51,028       48,083      6.1%
             Length of stay                      13.1         12.4      6.0%

             Inpatient revenue               $670,708     $604,466     11.0%
             Outpatient revenue                99,981       89,448     11.8%
             Total patient revenue            770,689      693,914     11.1%
             Other revenue                     16,679       16,951     -1.6%
             Gross hospital revenue           787,368      710,865     10.8%

             Total deductions                 398,420      367,230      8.5%

             Net hospital revenue            $388,948     $343,635     13.2%



         SAME FACILITY:
                                         FOR THE SIX MONTHS ENDED

                               ACUTE  (1) (3)        BEHAVIORAL HEALTH (4)
                             06/30/05 06/30/04    %   06/30/05 06/30/04   %

         Hospitals owned and
          leased                   23       23   0.0%       44       44  0.0%
         Average licensed
          beds                  5,420    5,678  -4.5%    4,175    4,059  2.9%
         Patient days         595,743  585,112   1.8%  625,500  594,612  5.2%
         Average daily census 3,291.4  3,214.9   2.4%  3,455.8  3,267.1  5.8%
         Occupancy-licensed
          beds                  60.7%    56.6%   7.3%    82.8%    80.5%  2.8%
         Admissions           129,687  126,457   2.6%   49,994   48,083  4.0%
         Length of stay           4.6      4.6  -0.7%     12.5     12.4  1.2%


         (1) Does not include hospitals located in France
         (2) Does not include Discontinued Operations
         (3) All Discontinued Operations and Lakewood Ranch are excluded in
             current and prior years. Lakeland is included in both current and
             prior years for January only.
         (4) Stonington is included in both current and prior years from April
             1 through year to date. The four facilities purchased from
             Keystone are included in both current and prior years from May
             1st through year to date.

SOURCE Universal Health Services, Inc.

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

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