MenuSearch

News Release

Printer Friendly Version 
<< Back To Press Releases
Universal Health Services, Inc. Reports 2005 Fourth Quarter and Full Year Earnings

KING OF PRUSSIA, Pa., Feb. 27 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. (NYSE: UHS) announced today its results for the fourth quarter and full year ended December 31, 2005. For the fourth quarter ended December 31, 2005, reported income from continuing operations was $9.0 million or $.17 per diluted share as compared to $34.9 million or $.58 per diluted share during the fourth quarter of 2004. Reported net income was $12.3 million or $.23 per diluted share during the fourth quarter of 2005 as compared to $37.2 million or $.61 per diluted share during the comparable prior year quarter. Net revenues increased 6% to $967 million during the fourth quarter of 2005 as compared to $911 million during the fourth quarter of 2004.

As indicated on the attached Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information for the Three Months Ended December 31, 2005 and 2004, included in our income from continuing operations and income from continuing operations per diluted share during the fourth quarter of 2005 are the following:

    -- combined after-tax charges of $21.0 million or $.39 per diluted share
       resulting from expenses incurred in connection with damage sustained in
       Louisiana from Hurricane Katrina that resulted in the closure of our
       Methodist Hospital, Lakeland Medical Pavilion, Chalmette Medical Center
       and Virtue Street Pavilion during the third quarter;
    -- an after-tax gain of $3.7 million or $.07 per diluted share resulting
       from the sale of land, and;
    -- other combined net favorable after-tax adjustments of approximately
       $1.5 million or $.04 per diluted share which includes certain income
       tax benefits recognized in connection with the employee retention tax
       credit as provided in the "Gulf Opportunity Zone Act of 2005."

After adjusting for the above-mentioned items, our adjusted income from continuing operations was $24.8 million and our adjusted income from continuing operations per diluted share was $.45 during the three-month period ended December 31, 2005. Our adjusted income from continuing operations was $27.5 million or $.46 per diluted share during the fourth quarter of 2004. Impacting the results during the fourth quarter of 2005 are the loss of revenues from our above-mentioned acute care facilities in Louisiana, increased pressure on salaries in certain markets, the dilutive effect of integrating the Keystone and Brown Schools acquisitions and the continued high levels of uninsured patients.

At our acute care hospitals owned during both periods, inpatient admissions increased 3.4% and patient days increased 1.4% during the fourth quarter of 2005 as compared to the comparable 2004 quarter. Since our above- mentioned facilities located in Louisiana have been closed since the Hurricane, the inpatient statistics for those facilities have been excluded from the fourth quarter of each year. At our behavioral health care facilities owned during both quarters, inpatient admissions increased 7.4% and patient days increased 2.8% during the fourth quarter of 2005 as compared to the comparable 2004 quarter.

Our adjusted operating margin (as calculated on the attached Schedule of Non-GAAP Supplemental Consolidated Income Statement Information), decreased to 12.2% during the three-month period ended December 31, 2005 as compared to 13.2% during the same period of the prior year. The operating margin at our acute care hospitals owned during both periods ("same facility basis") decreased to 12.1% during the three months ended December 31, 2005 as compared to 12.9% during the three months ended December 31, 2004. On a same facility basis, the operating margin at our behavioral health hospitals increased to 22.4% during the fourth quarter of 2005 from 19.0% during the comparable quarter of the prior year.

The provision for doubtful accounts was 9.0% of net revenues during the fourth quarter of 2005 as compared to 7.6% during the prior year's fourth quarter. The increase resulted primarily from an increase in the number of uninsured patients treated at our acute care hospitals.

For the year ended December 31, 2005, reported income from continuing operations was $109.8 million or $1.91 per diluted share as compared to $161.1 million or $2.62 per diluted share during 2004. Reported net income was $240.8 million or $4.00 per diluted share during 2005 as compared to $169.5 million or $2.75 per diluted share during 2004. Included in our reported net income during 2005 were combined after-tax gains on divestitures of $132.9 million or $2.12 per diluted share resulting from the sale of fourteen acute care hospitals in France, two acute care hospitals in Puerto Rico, a women's hospital in Oklahoma, a home health business in Florida and land in Nevada. Net revenues increased 8% to $3.94 billion during 2005 as compared to $3.64 billion during 2004.

Included in our income from continuing operations and income from continuing operations per diluted share during 2005 are the following:

    -- combined after-tax charges of $99.0 million or $1.58 per diluted share
       resulting from expenses incurred in connection with damage sustained
       from Hurricane Katrina at our above-mentioned facilities located in
       Louisiana;
    -- after-tax Hurricane related insurance recoveries of $48.6 million or
       $.78 per diluted share reflecting the minimum level of commercial
       insurance proceeds due to us, substantially all of which have been
       received;
    -- the combined favorable prior year after-tax effect of $5.2 million or
       $.08 per diluted share resulting from supplemental reimbursements
       received from certain states and contractual settlements (as previously
       disclosed in our earnings release for the nine-month period ended
       September 30, 2005);
    -- an after-tax gain of $3.7 million or $.06 per diluted share resulting
       from the sale of land, and;
    -- other combined net favorable after-tax adjustments of approximately
       $203,000 or $.01 per diluted share.

After adjusting for the above-mentioned items, our adjusted income from continuing operations was $151.1 million and our adjusted income from continuing operations per diluted share was $2.56 during the 2005. Our adjusted income from continuing operations was $153.4 million or $2.51 per diluted share during 2004.

At our acute care hospitals owned during both years (excluding the inpatient statistics for our above-mentioned Louisiana hospitals for the period of September 1st through December 31st of each year), inpatient admissions increased 2.7% and patient days increased 1.4% during 2005 as compared to 2004. At our behavioral health care facilities owned during both years, inpatient admissions increased 5.9% and patient days increased 4.5% during 2005 as compared to 2004.

We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on February 28, 2006. 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 28, 2006 and will continue through midnight on March 7, 2006. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 5293421.

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 and in Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT). For additional information on the Company, visit our web site: http://www.uhsinc.com.

This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in "Forward-Looking Statements and Risk Factors" on pages 18 and 19 of our Form 10-Q for the quarterly period ended September 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, gains on sales of assets and businesses, Hurricane related expenses and insurance recoveries, and 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.



                         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,
                                     2005      2004       2005        2004

    Net revenues                   $967,175  $910,777  $3,935,480  $3,637,490

    Operating charges:
       Salaries, wages and
        benefits                    415,821   375,227   1,625,996   1,490,241
       Other operating expenses     226,127   225,265     921,118     862,870
       Supplies expense             120,212   120,561     489,999     463,381
       Provision for doubtful
        accounts                     87,438    69,306     368,058     307,014
       Depreciation and
        amortization                 39,242    36,786     155,478     142,481
       Lease and rental expense      15,347    15,502      60,790      60,907
       Hurricane related expenses    36,133       -       165,028         -
       Hurricane insurance
        recoveries                      -         -       (81,709)        -
                                    940,320   842,647   3,704,758   3,326,894

    Income before interest
     expense, minority interests
     and income taxes                26,855    68,130     230,722     310,596


    Interest expense, net             8,403     9,854      32,933      38,131
    Minority interests in earnings
     of consolidated entities         5,786     1,883      25,645      16,188

    Income before income taxes       12,666    56,393     172,144     256,277

    Provision for income taxes        3,624    21,541      62,301      95,179

    Income from continuing
     operations                       9,042    34,852     109,843     161,098

    Income from discontinued
     operations, net of income tax
     expense (a)                      3,232     2,322     131,002       8,394


    Net income                      $12,274   $37,174    $240,845    $169,492


    Basic earnings per share: (b)
         From continuing
          operations                  $0.17     $0.60       $1.98       $2.79
         From discontinued
          operations                   0.06      0.04        2.35        0.15
              Total basic earnings
               per share              $0.23     $0.64       $4.33       $2.94

    Diluted earnings per share: (b)
         From continuing
          operations                  $0.17     $0.58       $1.91       $2.62
         From discontinued
          operations                   0.06      0.03        2.09        0.13
              Total diluted
               earnings per share     $0.23     $0.61       $4.00       $2.75



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

                                           Three months      Twelve months
                                        ended December 31, ended December 31,
                                          2005     2004      2005      2004
    (a) Calculation of income from
     discontinued operations, net of
     income tax:

    Income from operations                  $747   $3,974    $3,355    $8,680
    Gains on divestitures                  4,338      -     190,558     5,382
    Income from discontinued operations,
     pre-tax                               5,085    3,974   193,913    14,062
    Income tax provision                  (1,853)  (1,652)  (62,911)   (5,668)
    Income from discontinued operations,
     net of income tax expense            $3,232   $2,322  $131,002    $8,394


    (b) Earnings per share calculation:

    Basic:
    Income from continuing operations     $9,042  $34,852  $109,843  $161,098
    Less: Dividends on unvested
     restricted stock, net of taxes          (23)     (27)     (104)     (111)
    Income from continuing operations -
     basic                                $9,019  $34,825  $109,739  $160,987
    Income from discontinued operations    3,232    2,322   131,002     8,394
    Net income - basic                   $12,251  $37,147  $240,741  $169,381

    Weighted average number of common
     shares - basic                       54,002   57,635    55,658    57,653

    Basic earnings per share:
         From continuing operations        $0.17    $0.60     $1.98     $2.79
         From discontinued operations       0.06     0.04      2.35      0.15
              Total basic earnings per
               share                       $0.23    $0.64     $4.33     $2.94

    Diluted:
    Income from continuing operations     $9,042  $34,852  $109,843  $161,098
    Less: Dividends on unvested
     restricted stock, net of taxes          (23)     (27)     (104)     (111)
    Add: Debenture interest, net of
     taxes                                   -      2,334     9,628     9,240
    Income from continuing operations -
     diluted                              $9,019  $37,159  $119,367  $170,227
    Income from discontinued operations    3,232    2,322   131,002     8,394
    Net income - diluted                 $12,251  $39,481  $250,369  $178,621

    Weighted average number of common
     shares                               54,002   57,635    55,658    57,653
    Add: Shares for conversion of
         convertible debentures              -      6,577     6,577     6,577
         Other share equivalents             222      280       412       635
    Weighted average number of common
     shares and equiv. - diluted          54,224   64,492    62,647    64,865

    Diluted earnings per share:
         From continuing operations        $0.17    $0.58     $1.91     $2.62
         From discontinued operations       0.06     0.03      2.09      0.13
              Total diluted earnings per
               share                       $0.23    $0.61     $4.00     $2.75



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


                                               December 31,      December 31,
                                                   2005              2004

    Assets:
    Cash and cash equivalents                       $7,963           $33,125
    Accounts receivable, net                       499,726           552,538
    Other current assets                           100,609            90,392
    Property, plant and equipment, net           1,422,053         1,448,066
    Other assets                                   820,758           765,852
    Assets held for sale                               -             132,870
    Total Assets                                $2,851,109        $3,022,843

    Liabilities and Stockholders' Equity:
    Current portion of long-term debt               $5,191           $16,968
    Liabilities held for sale                          -              11,116
    Other current liabilities                      511,379           441,572
    Other noncurrent liabilities                   289,195           243,617
    Long-term debt                                 637,654           852,229
    Deferred income taxes                           42,713            50,212
    Minority interest                              159,879           186,543
    Stockholders' equity                         1,205,098         1,220,586
    Total Liabilities and Stockholders'
     Equity                                     $2,851,109        $3,022,843



                         Universal Health Services, Inc.
       Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                                   Information
              For the Three Months Ended December 31, 2005 and 2004
                     (in thousands, except per share amounts)
                                   (unaudited)

                                        Three months ended  Three months ended
                                        December 31, 2005   December 31, 2004

    Net revenues                         $967,175  100.0%    $910,777  100.0%

    Operating charges:
       Salaries, wages and benefits       415,821   43.0%     375,227   41.2%
       Other operating expenses           226,127   23.4%     225,265   24.7%
       Supplies expense                   120,212   12.4%     120,561   13.2%
       Provision for doubtful accounts     87,438    9.0%      69,306    7.6%
                                          849,598   87.8%     790,359   86.8%

    Operating income/margin               117,577   12.2%     120,418   13.2%

       Lease and rental expense            15,347              15,502
       Minority interests in earnings of
        consolidated entities               5,786               1,883

    Earnings before depreciation and
     amortization, interest expense, and
     income taxes ("EBITDA")               96,444             103,033

       Hurricane related expenses          36,133                 -
       Depreciation and amortization       39,242              36,786
       Interest expense, net                8,403               9,854

    Income before income taxes             12,666              56,393

    Provision for income taxes              3,624              21,541

    Income from continuing operations       9,042              34,852

    Income from discontinued operations,
     net of income taxes                    3,232               2,322

    Net income                            $12,274             $37,174


                                        Three months ended  Three months ended
                                        December 31, 2005   December 31, 2004
                                                     Per                 Per
                                                   Diluted             Diluted
                                           Amount   Share     Amount    Share
    Calculation of Adjusted Income from
     Continuing Operations
    Income from continuing operations      $9,042   $0.17     $34,852   $0.58
    Add: Hurricane related expenses, net
     of minority interests and income
     taxes                                 20,978    0.39         -       -
    Less:  Gain on sale of land, net of
     income taxes                          (3,711)  (0.07)        -       -
    Less: Other combined net favorable
     adjustments                           (1,531)  (0.04)        -       -
    Less:  After-tax reversal of
     previously recorded stock grant
     amortization expense                     -       -        (7,394)  (0.12)
    Adjusted income from continuing
     operations                           $24,778   $0.45     $27,458   $0.46



                         Universal Health Services, Inc.
       Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                                   Information
              For the Twelve Months Ended December 31, 2005 and 2004
                     (in thousands, except per share amounts)
                                   (unaudited)

                                    Twelve months ended   Twelve months ended
                                     December 31, 2005     December 31, 2004


    Net revenues                     $3,935,480  100.0%    $3,637,490  100.0%

    Operating charges:
       Salaries, wages and benefits   1,625,996   41.3%     1,490,241   41.0%
       Other operating expenses         921,118   23.4%       862,870   23.7%
       Supplies expense                 489,999   12.5%       463,381   12.7%
       Provision for doubtful accounts  368,058    9.4%       307,014    8.4%
                                      3,405,171   86.5%     3,123,506   85.9%

    Operating income/margin             530,309   13.5%       513,984   14.1%

       Lease and rental expense          60,790                60,907
       Minority interests in earnings
        of consolidated entities         25,645                16,188

    Earnings before depreciation and
     amortization, interest expense,
     and income taxes ("EBITDA")        443,874               436,889

       Hurricane related expenses       165,028                   -
       Hurricane insurance recoveries   (81,709)                  -
       Depreciation and amortization    155,478               142,481
       Interest expense, net             32,933                38,131

    Income before income taxes          172,144               256,277

    Provision for income taxes           62,301                95,179

    Income from continuing operations   109,843               161,098

    Income from discontinued
     operations, net of income taxes    131,002                 8,394

    Net income                         $240,845              $169,492

                                    Twelve months ended   Twelve months ended
                                     December 31, 2005     December 31, 2004
                                                  Per                   Per
                                                Diluted               Diluted
                                        Amount   Share       Amount    Share
    Calculation of Adjusted Income
     from Continuing Operations
    Income from continuing operations  $109,843   $1.91     $161,098   $2.62
    Add: Hurricane related expenses,
     net of minority interests and
     income taxes                        99,042    1.58        1,474    0.02
    Less: Hurricane related insurance
     recoveries, net of minority
     interests and income taxes         (48,663)  (0.78)         -       -
    Less:  Prior period effect of
     supplemental reimbursements
     received from certain states and
     contractual settlements             (5,225)  (0.08)         -       -
    Less:  Gain on sale of land, net
     of income taxes                     (3,711)  (0.06)         -       -
    Less:  Other combined net
     favorable adjustments                 (203)  (0.01)         -       -
    Less:  After-tax reversal of
     previously recorded stock grant
     amortization expense                   -       -         (7,394)  (0.11)
    Less: DSH revenue attributable to
     prior year, net of income taxes        -       -         (1,748)  (0.02)
    Adjusted income from continuing
     operations                        $151,083   $2.56     $153,430   $2.51



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


                                               % Change          % Change
                                            Quarter Ended    12 months ended
    Same Facility:                            12/31/2005        12/31/2005

    Acute Care Hospitals

    Revenues                                      8.6%              7.2%
    Adjusted Admissions                           3.7%              2.9%
    Adjusted Patient Days                         2.1%              1.8%
    Revenue Per Adjusted Admission                4.8%              4.2%
    Revenue Per Adjusted Patient Day              6.4%              5.3%

    Behavioral Health Hospitals

    Revenues                                      9.4%              8.6%
    Adjusted Admissions                           6.8%              5.2%
    Adjusted Patient Days                         2.4%              4.2%
    Revenue Per Adjusted Admission                2.5%              3.2%
    Revenue Per Adjusted Patient Day              6.9%              4.3%



    UHS Consolidated              Fourth Quarter Ended   Twelve months Ended
                                  12/31/2005 12/31/2004 12/31/2005 12/31/2004

    Revenues                       $967,175   $910,777  $3,935,480  $3,637,490
    EBITDA (1)                       96,444    103,033     443,874     436,889
    EBITDA Margin (1)                 10.0%      11.3%       11.3%       12.0%

    Cash Flow From Operations        68,983     79,366     425,426     392,880
    Days Sales Outstanding               48         51          46          51
    Capital Expenditures             70,069     53,431     241,412     230,760

    Debt (net of cash)                               -     634,882     836,072
    Shareholders Equity                              -   1,205,098   1,220,586
    Debt / Total Capitalization                      -       34.5%       40.7%
    Debt / EBITDA (2)                                -        1.43        1.78
    Debt / Cash From Operations (2)                  -        1.49        2.12


    Acute Care EBITDAR Margin (3)     12.1%      12.5%       13.8%       14.7%
    Behavioral Health EBITDAR
     Margin (3)                       18.7%      19.0%       22.8%       22.3%


    (1) Before hurricane related expenses and recoveries and net of minority
        interest
    (2) Latest 4 quarters
    (3) Before Corporate overhead allocation and minority interest



                         UNIVERSAL HEALTH SERVICES, INC.
                          SELECTED HOSPITAL STATISTICS
                               DECEMBER 31, 2005

    AS REPORTED:
                                              FOR THE TWELVE MONTHS ENDED

                                                  ACUTE (1)(2)
                                             12/31/05     12/31/04      %

    Hospitals owned and leased                     21           24   -12.5%
    Average licensed beds                       5,525        5,645    -2.1%
    Patient days                            1,351,978    1,150,882    17.5%
    Average daily census                      3,704.0      3,144.5    17.8%
    Occupancy-licensed beds                     67.0%        55.7%    20.4%
    Admissions                                298,664      251,655    18.7%
    Length of stay                                4.5          4.6    -1.0%

    Inpatient revenue                      $7,246,246   $6,732,660     7.6%
    Outpatient revenue                      2,778,036    2,544,891     9.2%
    Total patient revenue                  10,024,282    9,277,551     8.0%
    Other revenue                              52,485       35,604    47.4%
    Gross hospital revenue                 10,076,767    9,313,155     8.2%

    Total deductions                        7,002,638    6,415,436     9.2%

    Net hospital revenue                   $3,074,129   $2,897,719     6.1%


                                               BEHAVIORAL HEALTH
                                             12/31/05     12/31/04      %

    Hospitals owned and leased                     72           44    63.6%
    Average licensed beds                       4,849        4,225    14.8%
    Patient days                            1,455,479    1,234,152    17.9%
    Average daily census                      3,987.6      3,372.0    18.3%
    Occupancy-licensed beds                     82.2%        79.8%     3.0%
    Admissions                                102,731       94,743     8.4%
    Length of stay                               14.2         13.0     8.8%

    Inpatient revenue                      $1,397,256   $1,238,131    12.9%
    Outpatient revenue                        192,824      177,360     8.7%
    Total patient revenue                   1,590,080    1,415,491    12.3%
    Other revenue                              31,897       32,849    -2.9%
    Gross hospital revenue                  1,621,977    1,448,340    12.0%

    Total deductions                          804,537      749,568     7.3%

    Net hospital revenue                     $817,440     $698,772    17.0%



    SAME FACILITY:
                                              FOR THE TWELVE MONTHS ENDED

                                                  ACUTE (1)(3)
                                             12/31/05     12/31/04      %

    Hospitals owned and leased                     21           21     0.0%
    Average licensed beds                       5,287        5,458    -3.1%
    Patient days                            1,131,135    1,116,154     1.3%
    Average daily census                      3,099.0      3,049.6     1.6%
    Occupancy-licensed beds                     58.6%        55.9%     4.9%
    Admissions                                252,332      245,643     2.7%
    Length of stay                                4.5          4.5    -1.3%


                                              BEHAVIORAL HEALTH (4)
                                             12/31/05     12/31/04      %

    Hospitals owned and leased                     44           44     0.0%
    Average licensed beds                       4,332        4,222     2.6%
    Patient days                            1,290,020    1,234,115     4.5%
    Average daily census                      3,534.3      3,371.9     4.8%
    Occupancy-licensed beds                     81.6%        79.9%     2.2%
    Admissions                                100,299       94,743     5.9%
    Length of stay                               12.9         13.0    -1.3%


    (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 in
        May 2004 are included in both current and prior years from May 1st
        through year to date. King George School, Wyoming Behavioral and
        The Keystone Centers are all excluded in both current and prior
        years.



                         UNIVERSAL HEALTH SERVICES, INC.
                          SELECTED HOSPITAL STATISTICS
                               DECEMBER 31, 2005

    AS REPORTED:
                                               FOR THE THREE MONTHS ENDED

                                                  ACUTE (1)(2)
                                             12/31/05     12/31/04      %

    Hospitals owned and leased                     21           24   -12.5%
    Average licensed beds                       5,012        5,602   -10.5%
    Patient days                              261,720      284,920    -8.1%
    Average daily census                      2,844.8      3,097.0    -8.1%
    Occupancy-licensed beds                     56.8%        55.3%     2.7%
    Admissions                                 60,628       63,218    -4.1%
    Length of stay                                4.3          4.5    -4.2%

    Inpatient revenue                      $1,707,385   $1,692,754     0.9%
    Outpatient revenue                        661,321      648,448     2.0%
    Total patient revenue                   2,368,706    2,341,202     1.2%
    Other revenue                              12,635        8,274    52.7%
    Gross hospital revenue                  2,381,341    2,349,476     1.4%

    Total deductions                        1,658,437    1,629,805     1.8%

    Net hospital revenue                     $722,904     $719,671     0.4%


                                               BEHAVIORAL HEALTH
                                             12/31/05     12/31/04       %

    Hospitals owned and leased                     72           44     63.6%
    Average licensed beds                       5,996        4,386     36.7%
    Patient days                              450,566      320,753     40.5%
    Average daily census                      4,897.5      3,486.4     40.5%
    Occupancy-licensed beds                     81.7%        79.5%      2.8%
    Admissions                                 25,979       22,896     13.5%
    Length of stay                               17.3         14.0     23.8%

    Inpatient revenue                        $389,872     $318,264     22.5%
    Outpatient revenue                         47,732       45,538      4.8%
    Total patient revenue                     437,604      363,802     20.3%
    Other revenue                               8,096        7,482      8.2%
    Gross hospital revenue                    445,700      371,284     20.0%

    Total deductions                          212,278      192,938     10.0%

    Net hospital revenue                     $233,422     $178,346     30.9%



    SAME FACILITY:
                                               FOR THE THREE MONTHS ENDED

                                                  ACUTE  (1)(3)
                                             12/31/05     12/31/04      %

    Hospitals owned and leased                     21           21     0.0%
    Average licensed beds                       5,012        5,047    -0.7%
    Patient days                              261,731      258,014     1.4%
    Average daily census                      2,844.9      2,804.5     1.4%
    Occupancy-licensed beds                     56.8%        55.6%     2.1%
    Admissions                                 60,628       58,609     3.4%
    Length of stay                                4.3          4.4    -1.9%


                                              BEHAVIORAL HEALTH (4)
                                             12/31/05     12/31/04      %

    Hospitals owned and leased                     44           44     0.0%
    Average licensed beds                       4,492        4,386     2.4%
    Patient days                              329,590      320,740     2.8%
    Average daily census                      3,582.5      3,486.3     2.8%
    Occupancy-licensed beds                     79.8%        79.5%     0.3%
    Admissions                                 24,584       22,896     7.4%
    Length of stay                               13.4         14.0    -4.3%


    (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 in
        May 2004 are included in both current and prior years from May 1st
        through year to date. King George School, Wyoming Behavioral and
        The Keystone Centers are all 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

<< Back To Press Releases