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Universal Health Services, Inc. Reports Third Quarter Earnings Including Impact of Hurricane Katrina

KING OF PRUSSIA, Pa., Oct. 27 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its net income for the three- month period ended September 30, 2005 was $8.3 million, or $.15 per diluted share, as compared to $37.8 million, or $.62 per diluted share, during the third quarter of 2004. Net revenues increased 6% to $971 million during the third quarter of 2005 as compared to $914 million during the quarter ended September 30, 2004.

Net income was $228.6 million, or $3.73 per diluted share, during the nine-month period ended September 30, 2005 as compared to $132.3 million, or $2.14 per diluted share, during the nine-month period of 2004. Net revenues increased 9% to $2.97 billion during the nine-month period ended September 30, 2005 as compared to $2.73 billion during the prior year nine-month period.

As previously announced, our Methodist Hospital ("Methodist") and Lakeland Medical Pavilion ("Lakeland") located in New Orleans, Louisiana and Chalmette Medical Center ("Chalmette") and Virtue Street Pavilion located in Chalmette, Louisiana all suffered substantial damage from Hurricane Katrina. All facilities remain closed and non-operational as we continue to assess the damage and the likely recovery period for the facilities and surrounding communities.

The majority of the real estate assets of Chalmette are leased by us from Universal Health Realty Income Trust and according to the terms of the lease in such circumstances, we have the obligation to: (i) restore the property to substantially the same condition existing before the damage; (ii) offer to acquire the property in accordance with the terms of the lease; or, (iii) offer a substitution property equivalent in value to Chalmette.

Included in our financial results for the three-month period ended September 30, 2005 are the following items:

    --  a combined after-tax charge of $78.1 million ($128.9 million pre-tax
        and pre-minority interest) to reflect the impact of the Hurricane
        related expenses which include: (i) the write-down of the destroyed
        or damaged depreciable assets of each facility; (ii) a charge to
        reflect our estimated obligation pursuant to the terms of the lease
        on the Chalmette facility; (iii) asset impairment charges resulting
        from the Hurricane to further reduce the carrying-values of the
        depreciable real estate assets of Methodist and Lakeland to their
        estimated net realizable values; and, (iv) various other expenses
        incurred in connection with the Hurricane and its aftermath such as
        salaries, wages and benefits paid to employees of the facilities
        after the storm, an increase in the provision for doubtful accounts
        of these facilities, and other expenses incurred in connection with
        the patients, employees and properties of each facility;

    --  after-tax Hurricane related insurance recoveries of $49.8 million
        ($81.7 million pre-tax and pre-minority interest) reflecting our
        preliminary estimate of the minimum level of probable commercial
        insurance proceeds;

    --  $8.2 million of after-tax income ($13.0 million pre-tax) consisting
        primarily of the net combined prior period effect of supplemental
        reimbursements received from certain states and contractual
        settlements.

Reported income from continuing operations for the three-month period ended September 30, 2005 was $9.5 million, or $.17 per diluted share, as compared to $39.4 million, or $.64 per diluted share, during the three-month period ended September 30, 2004. Reported income from continuing operations for the nine-month period ended September 30, 2005 was $100.8 million, or $1.71 per diluted share, as compared to $126.2 million, or $2.05 per diluted share, during the nine-month period ended September 30, 2004.

Excluding the above-mentioned items included in our financial results for the three-month period ended September 30, 2005 and adjusting the other periods presented for the items listed on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information, our adjusted income from continuing operations was $29.6 million, or $.54 per diluted share, during the third quarter of 2005 as compared to $40.8 million, or $.66 per diluted share, during the third quarter of 2004. Our adjusted income from continuing operations was $123.9 million, or $2.07 per diluted share during the nine-month period ended September 30, 2005 as compared to $126.0 million, or $2.05 per diluted share, during the prior year nine-month period.

Since our above mentioned facilities located in Louisiana have been closed since the Hurricane and therefore no revenues have been reflected in the accompanying financial statements for the post-hurricane period, we have excluded these facilities from the following information for the period of September 1st through September 30th of 2005 and 2004. At our acute care hospitals owned during both periods, inpatient admissions increased 2.4%, patient days increased 0.3%, revenues increased 4.9% and revenue per adjusted patient day increased 3.9% during the 2005 third quarter, as compared to the comparable prior year quarter. At our behavioral health hospitals owned in both periods, inpatient admissions increased 8.2%, patient days increased 5.1%, revenues increased 10.0%, and revenue per adjusted patient day increased 5.1% during the third quarter of 2005 as compared to the comparable prior year quarter.

Our consolidated operating margin decreased to 13.0% during the three- month period ended September 30, 2005 as compared to 14.2% during the same quarter in the prior year. At our acute care hospitals owned during both three-month periods ended September 30, 2005 and 2004, the operating margin decreased to 11.8% during the third quarter of 2005 from 16.4% during the third quarter of the prior year. The operating margin at our behavioral health hospitals owned during both three-month periods increased to 22.7% during the third quarter of 2005 from 22.2% during the comparable quarter of the prior year.

The large majority of the decrease in our adjusted income from continuing operations during the third quarter of 2005, as compared to the comparable prior year quarter, and in the operating margin at our acute care hospitals owned during both three-month periods, can be attributed to an increase in the level of uninsured patients at our acute care facilities and to a continued decline in the operating performance of our two acute care hospitals located in the McAllen/Edinburg, Texas market. The increase in the level of uninsured patients at our acute care facilities resulted in a significant increase in our provision for doubtful accounts and charity care provided during the third quarter of 2005 as compared to the comparable prior year quarter. Our hospitals in the McAllen/Edinburg market continue to experience a decrease in the combined admissions, patient days and payer mix resulting primarily from continued intense competition from a physician-owned hospital in the market.

During the third quarter, we repurchased 1.27 million of our shares at an average price of $52.70 per share. We also previously announced that our Board of Directors authorized an additional 2.0 million share repurchase program to supplement the 2.1 million shares remaining under previous authorizations.

We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on October 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 October 28, 2005 and will continue through midnight on November 4, 2005. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number of 1205569. 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 June 30, 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          Nine months
                                   ended September 30,   ended September 30,
                                     2005      2004       2005        2004

    Net revenues                   $970,772  $914,093  $2,968,305  $2,726,713

    Operating charges:
       Salaries, wages and
        benefits                    395,938   374,221   1,210,175   1,115,014
       Other operating expenses     229,119   216,375     694,991     637,605
       Supplies expense             117,127   113,715     369,787     342,820
       Provision for doubtful
        accounts                    102,734    79,907     280,620     237,708
       Depreciation and
        amortization                 38,552    37,353     116,236     105,695
       Lease and rental expense      14,688    15,257      45,443      45,405
       Hurricane related expenses   128,895       -       128,895         -
       Hurricane insurance
        recoveries                  (81,709)      -       (81,709)        -
                                    945,344   836,828   2,764,438   2,484,247

    Income before interest
     expense, minority interests
     and income taxes                25,428    77,265     203,867     242,466


    Interest expense, net             6,404     9,351      24,530      28,277
    Minority interests in earnings
     of consolidated entities         6,673     5,595      22,518      14,305
    Minority interests in
     hurricane related expenses
     and insurance recoveries        (2,659)      -        (2,659)        -

    Income before income taxes       15,010    62,319     159,478     199,884

    Provision for income taxes        5,531    22,967      58,677      73,638

    Income from continuing
     operations                       9,479    39,352     100,801     126,246

    Income (loss) from
     discontinued operations, net
     of income tax expense (a)       (1,160)   (1,507)    127,770       6,072


    Net income                       $8,319   $37,845    $228,571    $132,318


    Basic earnings (loss) per
     share: (b)
         From continuing
          operations                  $0.17     $0.68       $1.79       $2.19
         From discontinued
          operations                  (0.02)    (0.03)       2.27        0.10
              Total basic earnings
               per share              $0.15     $0.65       $4.06       $2.29

    Diluted earnings (loss) per
     share: (b)
         From continuing
          operations                  $0.17     $0.64       $1.71       $2.05
         From discontinued
          operations                  (0.02)    (0.02)       2.02        0.09
              Total diluted
               earnings per share     $0.15     $0.62       $3.73       $2.14


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

                                         Three months         Nine months
                                     ended September 30,   ended September 30,
                                        2005     2004        2005      2004

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

    (Loss) income from operations      ($1,825) ($5,437)     $2,608    $4,677
    Gains on divestitures                    -    3,073     186,220     5,411
    (Loss) income from discontinued
     operations, pre-tax                (1,825)  (2,364)    188,828    10,088
    Income tax benefit (provision)         665      857     (61,058)   (4,016)
    (Loss) income from discontinued
     operations, net of income tax
     expense                           ($1,160) ($1,507)   $127,770    $6,072


    (b) Earnings per share calculation:

    Basic:
    Income from continuing operations   $9,479  $39,352    $100,801  $126,246
    Less: Dividends on unvested
     restricted stock, net of taxes        (26)     (28)        (81)      (84)
    Income from continuing operations -
     basic                              $9,453  $39,324    $100,720  $126,162
    (Loss) income from discontinued
     operations                         (1,160)  (1,507)    127,770     6,072
    Net income - basic                  $8,293  $37,817    $228,490  $132,234

    Weighted average number of common
     shares - basic                     54,682   57,791      56,210    57,659

    Basic earnings (loss) per share:
         From continuing operations      $0.17    $0.68       $1.79     $2.19
         From discontinued operations    (0.02)   (0.03)       2.27      0.10
              Total basic earnings per
               share                     $0.15    $0.65       $4.06     $2.29

    Diluted:
    Income from continuing operations   $9,479  $39,352    $100,801  $126,246
    Less: Dividends on unvested
     restricted stock, net of taxes        (26)     (28)        (81)      (84)
    Add: Debenture interest, net of
     taxes                                   -    2,333       7,196     6,906
    Income from continuing
     operations - diluted               $9,453  $41,657    $107,916  $133,068
    (Loss) income from discontinued
     operations                         (1,160)  (1,507)    127,770     6,072
    Net income - diluted                $8,293  $40,150    $235,686  $139,140

    Weighted average number of common
     shares                             54,682   57,791      56,210    57,659
    Add: Shares for conversion of
     convertible debentures                  -    6,577       6,577     6,577
             Other share equivalents       466      542         476       754
    Weighted average number of common
     shares and equiv. - diluted        55,148   64,910      63,263    64,990

    Diluted earnings (loss) per share:
         From continuing operations      $0.17    $0.64       $1.71     $2.05
         From discontinued operations    (0.02)   (0.02)       2.02      0.09
              Total diluted earnings per
               share                     $0.15    $0.62       $3.73     $2.14



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

                                               September 30,      December 31,
                                                   2005              2004

    Assets:
    Cash and cash equivalents                      $82,156           $33,125
    Accounts receivable, net                       505,366           552,538
    Other current assets                           103,663            90,392
    Hurricane insurance recoveries receivable       81,709               -
    Property, plant and equipment, net           1,312,351         1,448,066
    Other assets                                   655,998           765,852
    Assets held for sale                             1,782           132,870
    Total Assets                                $2,743,025        $3,022,843

    Liabilities and Stockholders' Equity:
    Current portion of long-term debt               $3,873           $16,968
    Liabilities held for sale                          -              11,116
    Other current liabilities                      522,435           441,572
    Other noncurrent liabilities                   259,033           243,617
    Long-term debt                                 528,302           852,229
    Deferred income taxes                           43,981            50,212
    Minority interest                              161,404           186,543
    Stockholders' equity                         1,223,997         1,220,586
    Total Liabilities and Stockholders'
     Equity                                     $2,743,025        $3,022,843



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

                                        Three months ended  Three months ended
                                        September 30, 2005  September 30, 2004

    Net revenues                         $970,772  100.0%    $914,093  100.0%

    Operating charges:
       Salaries, wages and benefits       395,938   40.8%     374,221   40.9%
       Other operating expenses           229,119   23.6%     216,375   23.7%
       Supplies expense                   117,127   12.1%     113,715   12.4%
       Provision for doubtful accounts    102,734   10.6%      79,907    8.7%
                                          844,918   87.0%     784,218   85.8%

    Operating income/margin               125,854   13.0%     129,875   14.2%

       Lease and rental expense            14,688              15,257
       Minority interests in earnings of
        consolidated entities               6,673               5,595

    Earnings before depreciation and
     amortization, interest expense, and
     income taxes ("EBITDA")              104,493             109,023

       Hurricane related expenses         128,895                 -
       Hurricane insurance recoveries     (81,709)                -
       Minority interests in hurricane
        related expenses and insurance
        recoveries                         (2,659)                -
       Depreciation and amortization       38,552              37,353
       Interest expense, net                6,404               9,351

    Income before income taxes             15,010              62,319

    Provision for income taxes              5,531              22,967

    Income from continuing operations       9,479              39,352

    Loss from discontinued operations,
     net of income taxes                   (1,160)             (1,507)

    Net income                             $8,319             $37,845


                                       Three months ended  Three months ended
                                       September 30, 2005  September 30, 2004

                                                     Per                Per
                                                   Diluted            Diluted
                                           Amount   Share     Amount   Share
    Calculation of Adjusted Income from
     Continuing Operations
    Income from continuing operations      $9,479   $0.17     $39,352   $0.64
    Add: Hurricane related expenses, net
     of minority interests and income
     taxes                                 78,064    1.42        -        -
    Less: Hurricane related insurance
     recoveries, net of minority
     interests and income taxes           (49,758)  (0.90)       -        -
    Less:  Prior period effect of
     supplemental reimbursements received
     from certain states and contractual
     settlements                           (8,201)  (0.15)       -        -
    Add: Hurricane related expenses, net
     of income taxes                           -       -        1,474    0.02
    Adjusted income from continuing
     operations                           $29,584   $0.54     $40,826   $0.66



                         Universal Health Services, Inc.
       Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                                   Information
              For the Nine Months Ended September 30, 2005 and 2004
                     (in thousands, except per share amounts)
                                   (unaudited)

                                       Nine months ended   Nine months ended
                                       September 30, 2005  September 30, 2004

    Net revenues                       $2,968,305  100.0%  $2,726,713  100.0%

    Operating charges:
       Salaries, wages and benefits     1,210,175   40.8%   1,115,014   40.9%
       Other operating expenses           694,991   23.4%     637,605   23.4%
       Supplies expense                   369,787   12.5%     342,820   12.6%
       Provision for doubtful accounts    280,620    9.5%     237,708    8.7%
                                        2,555,573   86.1%   2,333,147   85.6%

    Operating income/margin               412,732   13.9%     393,566   14.4%

       Lease and rental expense            45,443              45,405
       Minority interests in earnings
        of consolidated entities           22,518              14,305

    Earnings before depreciation and
     amortization, interest expense,
     and income taxes ("EBITDA")          344,771             333,856

       Hurricane related expenses         128,895                 -
       Hurricane insurance recoveries     (81,709)                -
       Minority interests in hurricane
        related expenses and insurance
        recoveries                         (2,659)                -
       Depreciation and amortization      116,236             105,695
       Interest expense, net               24,530              28,277

    Income before income taxes            159,478             199,884

    Provision for income taxes             58,677              73,638

    Income from continuing operations     100,801             126,246

    Income from discontinued
     operations, net of income taxes      127,770               6,072

    Net income                           $228,571            $132,318


                                        Nine months ended  Nine months ended
                                       September 30, 2005  September 30, 2004

                                                     Per                Per
                                                   Diluted            Diluted
                                           Amount   Share     Amount   Share
    Calculation of Adjusted Income from
     Continuing Operations
    Income from continuing operations    $100,801   $1.71    $126,246   $2.05
    Add: Hurricane related expenses, net
     of minority interests and income
     taxes                                 78,064    1.23         -       -
    Less: Hurricane related insurance
     recoveries, net of minority
     interests and income taxes           (49,758)  (0.79)        -       -
    Less:  Prior period effect of
     supplemental reimbursements received
     from certain states and contractual
     settlements                           (5,225)  (0.08)        -       -
    Add: Hurricane related expenses, net
     of income taxes                           -      -         1,474    0.02
    Less: DSH revenue attributable to
     prior year, net of income taxes           -      -        (1,748)  (0.02)
    Adjusted income from continuing
     operations                          $123,882   $2.07    $125,972   $2.05



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

                                              % Change          % Change
                                            Quarter Ended    9 months ended
    Same Facility:                            9/30/2005         9/30/2005

    Acute Care Hospitals
    Revenues                                      4.9%             7.0%
    Adjusted Admissions                           2.9%             2.6%
    Adjusted Patient Days                         1.0%             1.6%
    Revenue Per Adjusted Admission                2.0%             4.3%
    Revenue Per Adjusted Patient Day              3.9%             5.3%


    Behavioral Health Hospitals

    Revenues                                     10.0%             8.3%
    Adjusted Admissions                           7.5%             4.8%
    Adjusted Patient Days                         4.7%             4.8%
    Revenue Per Adjusted Admission                2.4%             3.4%
    Revenue Per Adjusted Patient Day              5.1%             3.4%



    UHS Consolidated              Third Quarter Ended    Nine months Ended
                                  9/30/2005 9/30/2004  9/30/2005   9/30/2004

    Revenues                       $970,772  $914,093  $2,968,305  $2,726,713
    EBITDA (1)                      104,493   109,023     344,771     333,856
    EBITDA Margin (1)                 10.8%     11.9%       11.6%       12.2%

    Cash Flow From Operations       115,301    88,840     345,739     313,515
    Days Sales Outstanding               48        53          46          52
    Capital Expenditures             62,496    59,311     171,343     177,329

    Debt (net of cash)                  -         -       450,019    $806,136
    Shareholders' Equity                -         -     1,223,997  $1,214,377
    Debt / Total Capitalization         -         -         26.9%       39.9%
    Debt / EBITDA (2)                   -         -          0.94        1.66
    Debt / Cash From Operations (2)     -         -          1.05        2.14


    Acute Care EBITDAR Margin (3)     13.0%     15.8%       14.4%       15.5%
    Behavioral Health EBITDAR
     Margin (3)                       23.2%     22.2%       24.4%       23.4%


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



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

         AS REPORTED:
                              FOR THE THREE MONTHS ENDED

                                                 ACUTE (1) (2)
                                            09/30/05     09/30/04       %

            Hospitals owned and leased             21           24   -12.5%
            Average licensed beds               5,375        5,615    -4.3%
            Patient days                      275,148      280,876    -2.0%
            Average daily census              2,990.7      3,053.0    -2.0%
            Occupancy-licensed beds             55.6%        54.4%     2.3%
            Admissions                         62,502       61,980     0.8%
            Length of stay                        4.4          4.5    -2.9%

            Inpatient revenue              $1,752,146   $1,643,610     6.6%
            Outpatient revenue                707,282      647,127     9.3%
            Total patient revenue           2,459,428    2,290,737     7.4%
            Other revenue                      12,352        9,531    29.6%
            Gross hospital revenue          2,471,780    2,300,268     7.5%

            Total deductions                1,708,052    1,572,998     8.6%

            Net hospital revenue             $763,728     $727,270     5.0%


                                              BEHAVIORAL HEALTH
                                            09/30/05     09/30/04        %

            Hospitals owned and leased            45           44       2.3%
            Average licensed beds              4,517        4,386       3.0%
            Patient days                     335,825      318,778       5.3%
            Average daily census             3,650.3      3,465.0       5.3%
            Occupancy-licensed beds            80.8%        79.0%       2.3%
            Admissions                        25,724       23,764       8.2%
            Length of stay                      13.1         13.4      -2.7%

            Inpatient revenue               $336,676     $315,401       6.7%
            Outpatient revenue                45,111       42,374       6.5%
            Total patient revenue            381,787      357,775       6.7%
            Other revenue                      7,122        8,416     -15.4%
            Gross hospital revenue           388,909      366,191       6.2%

            Total deductions                 193,839      189,400       2.3%

            Net hospital revenue            $195,070     $176,791      10.3%


         SAME FACILITY:
                              FOR THE THREE MONTHS ENDED

                               ACUTE (1) (3)        BEHAVIORAL HEALTH (4)
                            09/30/05 09/30/04    %   09/30/05 09/30/04    %

         Hospitals owned and
          leased                  21       21   0.0%       44       44   0.0%
         Average licensed
          beds                 5,295    5,430  -2.5%    4,487    4,386   2.3%
         Patient days        273,718  272,955   0.3%  335,036  318,817   5.1%
         Average daily
          census             2,975.2  2,966.9   0.3%  3,641.7  3,465.4   5.1%
         Occupancy-licensed
          beds                 56.2%    54.6%   2.8%    81.2%    79.0%   2.7%
         Admissions           62,017   60,577   2.4%   25,721   23,764   8.2%
         Length of stay          4.4      4.5  -2.0%     13.0     13.4  -2.9%

    (1) Does not include hospitals located in France
    (2) Does not include Discontinued Operations. Acute care hospitals
        located in New Orleans are excluded from September 1, 2005 through
        year-to-date.
    (3) All Discontinued Operations are excluded in current and prior years.
        Lakeland is included in both current and prior years for January
        only. All three acute care hospitals located in New Orleans are
        excluded in both current and prior years from September 1st through
        year to date. Lakewood Ranch is included in both current and prior
        years from September 1 through year to date.
    (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. King George School is excluded in both current and prior years.



         AS REPORTED:
                               FOR THE NINE MONTHS ENDED

                                                 ACUTE (1) (2)
                                            09/30/05     09/30/04       %

            Hospitals owned and leased             21           24   -12.5%
            Average licensed beds               5,493        5,657    -2.9%
            Patient days                      877,216      865,962     1.3%
            Average daily census              3,213.2      3,160.4     1.7%
            Occupancy-licensed beds             58.5%        55.9%     4.7%
            Admissions                        193,894      188,437     2.9%
            Length of stay                        4.5          4.6    -1.6%

            Inpatient revenue              $5,538,861   $5,039,906     9.9%
            Outpatient revenue              2,116,715    1,896,443    11.6%
            Total patient revenue           7,655,576    6,936,349    10.4%
            Other revenue                      39,850       27,330    45.8%
            Gross hospital revenue          7,695,426    6,963,679    10.5%

            Total deductions                5,344,201    4,785,631    11.7%

            Net hospital revenue           $2,351,225   $2,178,048     8.0%


                                                BEHAVIORAL HEALTH
                                             09/30/05     09/30/04       %

            Hospitals owned and leased              45           44     2.3%
            Average licensed beds                4,463        4,168     7.1%
            Patient days                     1,004,913      913,399    10.0%
            Average daily census               3,681.0      3,333.6    10.4%
            Occupancy-licensed beds              82.5%        80.0%     3.1%
            Admissions                          76,752       71,847     6.8%
            Length of stay                        13.1         12.7     3.0%

            Inpatient revenue               $1,007,384     $919,867     9.5%
            Outpatient revenue                 145,092      131,822    10.1%
            Total patient revenue            1,152,476    1,051,689     9.6%
            Other revenue                       23,801       25,367    -6.2%
            Gross hospital revenue           1,176,277    1,077,056     9.2%

            Total deductions                   592,259      556,630     6.4%

            Net hospital revenue              $584,018     $520,426    12.2%


         SAME FACILITY:
                               FOR THE NINE MONTHS ENDED

                              ACUTE (1) (3)         BEHAVIORAL HEALTH (4)
                            09/30/05 09/30/04    %   09/30/05 09/30/04    %

         Hospitals owned and
          leased                  21       21   0.0%       44       44   0.0%
         Average licensed
          beds                 5,379    5,595  -3.9%    4,279    4,168   2.7%
         Patient days        869,420  858,020   1.3%  960,469  913,352   5.2%
         Average daily
          census             3,184.7  3,131.5   1.7%  3,518.2  3,333.4   5.5%
         Occupancy-licensed
          beds                 59.2%    56.0%   5.8%    82.2%    80.0%   2.8%
         Admissions          191,704  187,034   2.5%   75,715   71,847   5.4%
         Length of stay          4.5      4.6  -1.1%     12.7     12.7  -0.2%

    (1) Does not include hospitals located in France
    (2) Does not include Discontinued Operations. Acute care hospitals
        located in New Orleans are excluded from September 1, 2005 through
        year-to-date.
    (3) All Discontinued Operations are excluded in current and prior years.
        Lakeland is included in both current and prior years for January
        only. All three acute care hospitals located in New Orleans are
        excluded in both current and prior years from September 1st through
        year to date. Lakewood Ranch is included in both current and prior
        years from September 1 through year to date.
    (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. King George School is excluded in both current and prior years.

SOURCE: Universal Health Services, Inc.

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

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