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Universal Health Services, Inc. Reports Second Quarter Earnings

KING OF PRUSSIA, Pa., July 27 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income was $60.3 million, or $1.04 per diluted share, during the second quarter of 2006 as compared to $158.8 million, or $2.53 per diluted share, during the comparable prior year quarter. Reported net income was $111.3 million, or $1.93 per diluted share, during the six months ended June 30, 2006 as compared to $220.3 million, or $3.51 per diluted share, during the comparable prior year six-month period. Included in our reported net income during the 2005 periods were after-tax gains of $120.7 million, or $1.89 per diluted share, during the three-month period ended June 30, 2005 and $126.5 million, or $1.97 per diluted share, during the six-month period ended June 30, 2005. The gains recorded during the 2005 periods resulted primarily from the sale of our majority-ownership interest in an operating company that owned fourteen hospitals in France.

Reported income from continuing operations was $60.9 million or $1.05 per diluted share during the second quarter of 2006 as compared to $36.6 million or $.61 per diluted share during the second quarter of 2005. After adjusting for the hurricane-related insurance recoveries, net of hurricane-related expenses, and prior year cost report settlements as discussed below, our adjusted income from continuing operations for the three-month period ended June 30, 2006 was $44.5 million, or $.78 per diluted share. For the six-month period ended June 30, 2006, reported income from continuing operations was $111.4 million, or $1.93 per diluted share, as compared to $91.3 million or $1.50 per diluted share during the six-month period ended June 30, 2005. After adjusting for the items discussed below, our adjusted income from continuing operations for the six-month period ended June 30, 2006 was $86.0 million, or $1.51 per diluted share.

Net revenues increased 6% to $1.05 billion during the second quarter of 2006 as compared to $991 million during the second quarter of 2005. Net revenues increased 4% to $2.08 billion during the six-month period ended June 30, 2006 as compared to $2.00 billion during the prior year six-month period. Impacting our revenues during the 2006 periods was the loss of revenues generated at our below-mentioned acute care facilities in Louisiana which, on a combined basis, generated net revenues of $64 million and $125 million during the three- and six-month periods ended June 30, 2005, respectively. Also, on January 1st of this year, we implemented a formal company-wide uninsured discount policy which has had the effect of lowering both net revenues and the provision for doubtful accounts by approximately $15 million and $29 million during the three- and six-month periods ended June 30, 2006, respectively. The implementation of this uninsured discount policy did not have a significant impact on our 2006 net income.

At our acute care hospitals owned during both periods, inpatient admissions increased 1.3% and patient days increased 2.5% during the second quarter of 2006 as compared to the comparable 2005 quarter. Inpatient admissions and patient days each increased 1.3% during the six-month period ended June 30, 2006 as compared to the comparable prior year period. Since our acute care facilities located in Louisiana have been closed since the third quarter of 2005 as a result of Hurricane Katrina, the inpatient statistics for those facilities have been excluded from the three- and six-month periods of each year. At our behavioral health care facilities owned during both quarters, inpatient admissions increased 1.7% and patient days increased 0.7% during the second quarter of 2006 as compared to the comparable 2005 quarter. Inpatient admissions increased 3.8% and patient days increased 2.0% during the six-month period ended June 30, 2006 as compared to the comparable prior year period.

As indicated on the attached Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information, our income from continuing operations during the second quarter of 2006 includes: (i) a favorable $12.8 million, or $.21 per diluted share, of after-tax hurricane insurance recoveries, net of hurricane-related expenses, and; (ii) a favorable $3.6 million, or $.06 per diluted share, of after-tax income resulting from the settlement of prior period cost reports. Our income from continuing operations during the six month-period ended June 30, 2006 includes: (i) a favorable $21.8 million, or $.36 per diluted share, of after-tax hurricane insurance recoveries, net of hurricane-related expenses, and; (ii) a favorable $3.6 million, or $.06 per diluted share, of after-tax income resulting from the settlement of prior period cost reports.

We recorded $14.7 million, or $.24 per diluted share, during the three-month period ended June 30, 2006 and $27.7 million, or $.46 per diluted share, during the six-month period ended June 30, 2006, of after-tax hurricane insurance recoveries received 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 of 2005. We also incurred additional after-tax hurricane-related expenses at these facilities of $1.9 million, or $.03 per diluted share, during the second quarter of 2006 and $5.9 million, or $.10 per diluted share, during the six-month period ended June 30, 2006.

Our operating margin (as calculated on the attached Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information), increased to 14.5% during the three-month period ended June 30, 2006 as compared to 12.8% during the same period of the prior year. The operating margin at our acute care hospitals owned during both periods ("same facility basis") increased to 13.5% during the three months ended June 30, 2006 as compared to 12.9% during the three months ended June 30, 2005. On a same facility basis, the operating margin at our behavioral health hospitals increased to 27.0% during the second quarter of 2006 from 25.4% during the comparable quarter of the prior year. Our operating margin decreased to 14.0% during the six-month period ended June 30, 2006 as compared to 14.4% during the same period of the prior year. On a same facility basis, the operating margin at our acute care hospitals decreased to 14.1% during the six months ended June 30, 2006 as compared to 15.4% during the six months ended June 30, 2005. On a same facility basis, the operating margin at our behavioral health hospitals increased to 26.1% during the six months ended June 30, 2006 as compared to 25.1% during the comparable prior year period.

Our provision for doubtful accounts was 8.3% and 9.6% during the three-month periods ended June 30, 2006 and 2005, respectively, and 7.8% and 8.9% during the six-month periods ended June 30, 2006 and 2005, respectively. Exclusive of the impact of the uninsured discount implemented at the beginning of this year, as a percentage of net revenues, the provision for doubtful accounts would have been 9.6% and 9.1% during the three- and six-month periods ended June 30, 2006.

We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on July 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 July 28, 2006 and will continue through midnight on August 4, 2006. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 1974079.

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 "Risk Factors" on pages 24 through 30 and in "Forward-Looking Statements and Risk Factors" on pages 39 and 40 of our Form 10-K for the year ended December 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, 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, 2005. 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            Six months
                                     ended June 30,         ended June 30,
                                     2006      2005        2006       2005

    Net revenues                 $1,047,673  $990,888  $2,081,962  $1,997,533

    Operating charges:
       Salaries, wages and
        benefits                    434,756   407,897     876,988     814,237
       Other operating expenses     248,956   234,707     497,057     465,872
       Supplies expense             124,814   126,124     253,327     252,660
       Provision for doubtful
        accounts                     87,182    95,478     162,189     177,886
       Depreciation and
        amortization                 40,369    37,988      79,399      77,684
       Lease and rental expense      15,831    15,288      32,063      30,755
       Hurricane related
        expenses                      3,356       -        10,260         -
       Hurricane insurance
        recoveries                  (25,000)      -       (47,291)        -
                                    930,264   917,482   1,863,992   1,819,094

    Income before interest
     expense, minority interests
     and income taxes               117,409    73,406     217,970     178,439


    Interest expense, net             8,697     7,450      17,222      18,126
    Minority interests in
     earnings of consolidated
     entities                        11,492     7,926      22,669      15,845

    Income before income taxes       97,220    58,030     178,079     144,468

    Provision for income taxes       36,349    21,398      66,716      53,146

    Income from continuing
     operations                      60,871    36,632     111,363      91,322

    (Loss) income from
     discontinued operations,
     net of income tax
     expense (a)                       (612)  122,211         (20)    128,930


    Net income                      $60,259  $158,843    $111,343    $220,252


    Basic earnings (loss) per
     share: (b)
         From continuing
          operations                  $1.13     $0.65       $2.07       $1.60
         From discontinued
          operations                  (0.01)     2.16        0.00        2.26
              Total basic
               earnings per
               share                  $1.12     $2.81       $2.07       $3.86

    Diluted earnings (loss) per
     share: (b)
         From continuing
          operations                  $1.05     $0.61       $1.93       $1.50
         From discontinued
          operations                  (0.01)     1.92        0.00        2.01
              Total diluted
               earnings per
               share                  $1.04     $2.53       $1.93       $3.51



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

                                           Three months         Six months
                                          ended June 30,      ended June 30,
                                           2006    2005        2006    2005

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

    (Loss) income from operations         ($972)   $2,602      ($32)   $7,538
    Gains on divestitures                   -     177,125       -     186,221
    Asset impairment charge                 -         -         -      (3,105)
    (Loss) income from discontinued
     operations, pre-tax                   (972)  179,727       (32)  190,654
    Income tax benefit (provision)          360   (57,516)       12   (61,724)
    (Loss) income from discontinued
     operations, net of income tax
     expense                              ($612) $122,211      ($20) $128,930


    (b) Earnings per share calculation:

    Basic:
    Income from continuing operations   $60,871   $36,632  $111,363   $91,322
    Less: Dividends on unvested
     restricted stock, net of taxes         (21)      (28)      (43)      (55)
    Income from continuing operations -
     basic                              $60,850   $36,604  $111,320   $91,267
    (Loss) income from discontinued
     operations                            (612)  122,211       (20)  128,930
    Net income - basic                  $60,238  $158,815  $111,300  $220,197

    Weighted average number of common
     shares - basic                      53,730    56,425    53,749    56,974

    Basic earnings (loss) per share:
         From continuing operations       $1.13     $0.65     $2.07     $1.60
         From discontinued operations     (0.01)     2.16      0.00      2.26
              Total basic earnings per
               share                      $1.12     $2.81     $2.07     $3.86

    Diluted:
    Income from continuing operations   $60,871   $36,632  $111,363   $91,322
    Less: Dividends on unvested
     restricted stock, net of taxes         (21)      (28)      (43)      (55)
    Add: Debenture interest, net of
     taxes                                2,445     2,382     4,902     4,764
    Income from continuing operations -
     diluted                            $63,295   $38,986  $116,222   $96,031
    (Loss) income from discontinued
     operations                            (612)  122,211       (20)  128,930
    Net income - diluted                $62,683  $161,197  $116,202  $224,961

    Weighted average number of common
     shares                              53,730    56,425    53,749    56,974
    Add: Shares for conversion of
     convertible debentures               5,999     6,577     6,286     6,577
             Other share equivalents        258       646       237       481
    Weighted average number of common
     shares and equiv. - diluted         59,987    63,648    60,272    64,032

    Diluted earnings (loss) per share:
         From continuing operations       $1.05     $0.61     $1.93     $1.50
         From discontinued operations     (0.01)     1.92      0.00      2.01
              Total diluted earnings
               per share                  $1.04     $2.53     $1.93     $3.51



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


                                                  June 30,        December 31,
                                                    2006              2005

    Assets:
    Cash and cash equivalents                     $124,350            $7,963
    Accounts receivable, net                       546,344           499,726
    Other current assets                           108,346           100,609
    Property, plant and equipment, net           1,549,177         1,429,653
    Other assets                                   817,404           820,758
    Total Assets                                $3,145,621        $2,858,709

    Liabilities and Stockholders' Equity:
    Current portion of long-term debt               $3,646            $5,191
    Other current liabilities                      595,729           518,979
    Other noncurrent liabilities                   335,302           289,195
    Long-term debt                                 465,284           637,654
    Deferred income taxes                           35,440            42,713
    Minority interest                              179,252           159,879
    Stockholders' equity                         1,530,968         1,205,098
    Total Liabilities and Stockholders'
     Equity                                     $3,145,621        $2,858,709



                       Universal Health Services, Inc.
     Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                                 Information
              For the Three Months Ended June 30, 2006 and 2005
                   (in thousands, except per share amounts)
                                 (unaudited)

                                        Three months ended  Three months ended
                                          June 30, 2006       June 30, 2005


    Net revenues                        $1,047,673  100.0%   $990,888  100.0%

    Operating charges:
       Salaries, wages and benefits        434,756   41.5%    407,897   41.2%
       Other operating expenses            248,956   23.8%    234,707   23.7%
       Supplies expense                    124,814   11.9%    126,124   12.7%
       Provision for doubtful accounts      87,182    8.3%    95,478    9.6%
                                           895,708   85.5%    864,206   87.2%

    Operating income/margin                151,965   14.5%   126,682   12.8%

       Lease and rental expense             15,831             15,288
       Minority interests in earnings of
        consolidated entities               11,492              7,926

    Earnings before depreciation and
     amortization, interest expense, and
     income taxes ("EBITDA")               124,642            103,468

       Hurricane related expenses            3,356                -
       Hurricane insurance recoveries      (25,000)               -
       Depreciation and amortization        40,369             37,988
       Interest expense, net                 8,697              7,450

    Income before income taxes              97,220             58,030

    Provision for income taxes              36,349             21,398

    Income from continuing operations       60,871             36,632

    (Loss) income from discontinued
     operations, net of income taxes          (612)           122,211

    Net income                             $60,259           $158,843



                                         Three months ended Three months ended
                                           June 30, 2006      June 30, 2005
                                                     Per               Per
                                                   Diluted           Diluted
                                           Amount   Share    Amount   Share
    Calculation of Adjusted Income from
     Continuing Operations
    Income from continuing operations      $60,871   $1.05   $36,632   $0.61
    Add: Hurricane related expenses, net
     of minority interests and income
     taxes                                   1,859    0.03       -       -
    Less: Hurricane related insurance
     recoveries, net of minority
     interests and income taxes            (14,676)  (0.24)      -       -
    Less: Favorable effect of prior
     period cost report settlements, net
     of income taxes                        (3,593)  (0.06)      -       -
    Adjusted income from continuing
     operations                            $44,461   $0.78   $36,632   $0.61



                       Universal Health Services, Inc.
     Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                                 Information
               For the Six Months Ended June 30, 2006 and 2005
                   (in thousands, except per share amounts)
                                 (unaudited)

                                        Six months ended    Six months ended
                                         June 30, 2006       June 30, 2005

    Net revenues                       $2,081,962  100.0%  $1,997,533  100.0%

    Operating charges:
       Salaries, wages and benefits       876,988   42.1%     814,237   40.8%
       Other operating expenses           497,057   23.9%     465,872   23.3%
       Supplies expense                   253,327   12.2%     252,660   12.6%
       Provision for doubtful accounts    162,189    7.8%     177,886    8.9%
                                        1,789,561   86.0%   1,710,655   85.6%

    Operating income/margin               292,401   14.0%     286,878   14.4%

       Lease and rental expense            32,063              30,755
       Minority interests in earnings
        of consolidated entities           22,669              15,845

    Earnings before depreciation and
     amortization, interest expense,
     and income taxes ("EBITDA")          237,669             240,278

       Hurricane related expenses          10,260                 -
       Hurricane insurance recoveries     (47,291)                -
       Depreciation and amortization       79,399              77,684
       Interest expense, net               17,222              18,126

    Income before income taxes            178,079             144,468

    Provision for income taxes             66,716              53,146

    Income from continuing operations     111,363              91,322

    (Loss) income from discontinued
     operations, net of income taxes          (20)            128,930

    Net income                           $111,343            $220,252



                                          Six months ended   Six months ended
                                            June 30, 2006     June 30, 2005
                                                      Per               Per
                                                    Diluted           Diluted
                                           Amount    Share    Amount   Share
    Calculation of Adjusted Income from
     Continuing Operations
    Income from continuing operations      $111,363   $1.93   $91,322   $1.50
    Add: Hurricane related expenses, net
     of minority interests and income
     taxes                                    5,933    0.10       -       -
    Less: Hurricane related insurance
     recoveries, net of minority
     interests and income taxes             (27,731)  (0.46)      -       -
    Less: Favorable effect of prior
     period cost report settlements, net
     of income taxes                         (3,593)  (0.06)      -       -
    Adjusted income from continuing
     operations                             $85,972   $1.51   $91,322   $1.50



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


                                                % Change          % Change
                                              Quarter Ended     6 months ended
    Same Facility:                              6/30/2006         6/30/2006

    Acute Care Hospitals
    Revenues                                           7.6%              5.3%
    Adjusted Admissions                                1.3%              1.6%
    Adjusted Patient Days                              2.6%              1.8%
    Revenue Per Adjusted Admission                     6.2%              3.7%
    Revenue Per Adjusted Patient Day                   4.9%              3.4%


    Behavioral Health Hospitals

    Revenues                                           7.3%              8.5%
    Adjusted Admissions                                0.4%              3.5%
    Adjusted Patient Days                              1.5%              1.9%
    Revenue Per Adjusted Admission                     5.7%              4.8%
    Revenue Per Adjusted Patient Day                   6.8%              6.5%



    UHS Consolidated        Second Quarter Ended          Six months Ended
                            6/30/2006  6/30/2005       6/30/2006   6/30/2005

    Revenues               $1,047,673  $990,888       $2,081,962  $1,997,533
    EBITDA   (1)              124,642   103,468          237,669     240,278
    EBITDA Margin (1)           11.9%     10.4%            11.4%       12.0%

    Cash Flow From
     Operations                87,371    95,826          197,711     230,438
    Days Sales
     Outstanding                   47        50               47          49
    Capital
     Expenditures              69,485    50,927          152,673     108,847

    Debt (net of cash)              -         -          344,580    $415,096
    Shareholders
     Equity                         -         -        1,530,968  $1,281,786
    Debt / Total
     Capitalization                 -         -            18.4%       24.5%
    Debt / EBITDA  (2)              -         -             0.78        0.92
    Debt / Cash From
     Operations  (2)                -         -             0.88        1.04


    Acute Care EBITDAR
     Margin  (3) (4)            14.2%     12.9%            14.4%       15.0%
    Behavioral Health
     EBITDAR Margin (3) (4)     25.0%     25.4%            24.1%       25.0%


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



                       UNIVERSAL HEALTH SERVICES, INC.
                         SELECTED HOSPITAL STATISTICS
                          FOR THE THREE MONTHS ENDED
                                JUNE 30, 2006


      AS REPORTED:


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

        Hospitals owned and leased                 21           24   -12.5%
        Average licensed beds                   5,014        5,552    -9.7%
        Patient days                          267,945      289,568    -7.5%
        Average daily census                  2,944.5      3,182.1    -7.5%
        Occupancy-licensed beds                 58.7%        57.3%     2.5%
        Admissions                             60,551       64,301    -5.8%
        Length of stay                            4.4          4.5    -1.7%

        Inpatient revenue                  $1,853,383   $1,839,847     0.7%
        Outpatient revenue                    720,893      718,853     0.3%
        Total patient revenue               2,574,276    2,558,700     0.6%
        Other revenue                          14,334       14,382    -0.3%
        Gross hospital revenue              2,588,610    2,573,082     0.6%

        Total deductions                    1,812,634    1,792,209     1.1%

        Net hospital revenue                 $775,976     $780,873    -0.6%



      AS REPORTED:


                                                    BEHAVIORAL HEALTH
                                            06/30/06     06/30/05    % change

        Hospitals owned and leased                 75           44     70.5%
        Average licensed beds                   6,439        4,456     44.5%
        Patient days                          466,554      343,214     35.9%
        Average daily census                  5,127.0      3,771.6     35.9%
        Occupancy-licensed beds                 79.6%        84.6%     -5.9%
        Admissions                             27,928       25,983      7.5%
        Length of stay                           16.7         13.2     26.5%

        Inpatient revenue                    $418,824     $344,811     21.5%
        Outpatient revenue                     53,522       51,466      4.0%
        Total patient revenue                 472,346      396,277     19.2%
        Other revenue                           8,471        8,719     -2.8%
        Gross hospital revenue                480,817      404,996     18.7%

        Total deductions                      221,199      205,608      7.6%

        Net hospital revenue                 $259,618     $199,388     30.2%



        SAME FACILITY:


                                                      ACUTE (1) (3)
                                            06/30/06     06/30/05    % change

        Hospitals owned and leased                 21           21      0.0%
        Average licensed beds                   5,014        5,007      0.1%
        Patient days                          267,940      261,352      2.5%
        Average daily census                  2,944.4      2,872.0      2.5%
        Occupancy-licensed beds                 58.7%        57.4%      2.4%
        Admissions                             60,551       59,775      1.3%
        Length of stay                            4.4          4.4      1.2%



      SAME FACILITY:


                                                  BEHAVIORAL HEALTH (4)
                                            06/30/06     06/30/05    % change

        Hospitals owned and leased                 44           44      0.0%
        Average licensed beds                   4,499        4,456      1.0%
        Patient days                          345,600      343,216      0.7%
        Average daily census                  3,797.8      3,771.6      0.7%
        Occupancy-licensed beds                 84.4%        84.6%     -0.3%
        Admissions                             26,421       25,983      1.7%
        Length of stay                           13.1         13.2     -1.0%


        (1) Does not include hospitals located in France or discontinued
        operations.
        (2) Does not include discontinued operations. Licensed beds from our
        Acute care hospitals located in New Orleans
        are excluded in 2006.
        (3) Discontinued operations and our three acute care hospitals
        located in New Orleans are excluded in current
        and prior years.
        (4) Ascent, Boulder Creek, Center for Change, King George School,
        Northwest Academy, Wyoming Behavioral
        and the Keystone facilities are excluded in current and prior year.



                       UNIVERSAL HEALTH SERVICES, INC.
                         SELECTED HOSPITAL STATISTICS
                           FOR THE SIX MONTHS ENDED
                                JUNE 30, 2006



        AS REPORTED:

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

        Hospitals owned and leased                  21           24   -12.5%
        Average licensed beds                    5,002        5,550    -9.9%
        Patient days                           551,174      602,068    -8.5%
        Average daily census                   3,045.2      3,326.3    -8.5%
        Occupancy-licensed beds                  60.9%        59.9%     1.6%
        Admissions                             123,718      131,392    -5.8%
        Length of stay                             4.5          4.6    -2.8%

        Inpatient revenue                   $3,794,538   $3,786,715     0.2%
        Outpatient revenue                   1,429,404    1,409,433     1.4%
        Total patient revenue                5,223,942    5,196,148     0.5%
        Other revenue                           26,857       27,498    -2.3%
        Gross hospital revenue               5,250,799    5,223,646     0.5%

        Total deductions                    3,704,871    3,636,149     1.9%

        Net hospital revenue               $1,545,928   $1,587,497    -2.6%


        AS REPORTED:


                                                   BEHAVIORAL HEALTH
                                            06/30/06     06/30/05    % change

        Hospitals owned and leased                 75           44     70.5%
        Average licensed beds                   6,419        4,435     44.7%
        Patient days                          918,439      669,088     37.3%
        Average daily census                  5,074.2      3,696.6     37.3%
        Occupancy-licensed beds                 79.1%        83.4%     -5.2%
        Admissions                             56,000       51,028      9.7%
        Length of stay                           16.4         13.1     25.1%

        Inpatient revenue                    $828,224     $670,708     23.5%
        Outpatient revenue                    106,796       99,981      6.8%
        Total patient revenue                 935,020      770,689     21.3%
        Other revenue                          16,546       16,679     -0.8%
        Gross hospital revenue                951,566      787,368     20.9%

        Total deductions                      438,320      398,420     10.0%

        Net hospital revenue                 $513,246     $388,948     32.0%



        SAME FACILITY:


                                                   ACUTE (1) (3)
                                            06/30/06     06/30/05    % change

        Hospitals owned and leased                 21           21      0.0%
        Average licensed beds                   5,002        5,005     -0.1%
        Patient days                          551,199      544,068      1.3%
        Average daily census                  3,045.3      3,005.9      1.3%
        Occupancy-licensed beds                 60.9%        60.1%      1.4%
        Admissions                            123,718      122,188      1.3%
        Length of stay                            4.5          4.5      0.1%




        SAME FACILITY:


                                                   BEHAVIORAL HEALTH (4)
                                            06/30/06     06/30/05    % change

        Hospitals owned and leased                 44           44      0.0%
        Average licensed beds                   4,477        4,435      0.9%
        Patient days                          682,497      669,139      2.0%
        Average daily census                  3,770.7      3,696.9      2.0%
        Occupancy-licensed beds                 84.2%        83.4%      1.0%
        Admissions                             52,951       51,028      3.8%
        Length of stay                           12.9         13.1     -1.7%



        (1) Does not include hospitals located in France or discontinued
        operations.
        (2) Does not include discontinued operations. Licensed beds from our
        Acute care hospitals located in New Orleans are excluded in 2006.
        (3) Discontinued operations and our three acute care hospitals located
        in New Orleans are excluded in current and prior years.
        (4) Ascent, Boulder Creek, Center for Change, King George School,
        Northwest Academy, Wyoming Behavioral and the Keystone facilities are
        excluded in current and prior year.

SOURCE: Universal Health Services, Inc.

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

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