MenuSearch

News Release

Printer Friendly Version 
<< Back To Press Releases
Universal Health Services, Inc. Reports Third Quarter Earnings

KING OF PRUSSIA, Pa., Oct. 26 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income was $113.9 million, or $2.00 per diluted share, during the third quarter of 2006 as compared to $8.3 million, or $.15 per diluted share, during the comparable prior year quarter. Reported net income was $225.3 million, or $3.89 per diluted share, during the nine months ended September 30, 2006 as compared to $228.6 million, or $3.73 per diluted share, during the comparable prior year nine-month period.

Reported income from continuing operations was $114.0 million, or $2.00 per diluted share, during the third quarter of 2006 as compared to $9.5 million, or $.17 per diluted share, during the third quarter of 2005. Reported income from continuing operations was $225.4 million, or $3.89 per diluted share, during the nine-month period ended September 30, 2006 as compared to $100.8 million, or $1.71 per diluted share, during the nine-month period ended September 30, 2005.

As indicated on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedules"), our income from continuing operations and net income for the three and nine-month periods ended September 30, 2006 and 2005 include various items such as: (i) hurricane-related expenses, net of minority interests and income taxes; (ii) hurricane-related insurance recoveries, net of minority interests and income taxes; (iii) prior period effect of supplemental reimbursements from certain states and contractual settlements, net of income taxes; (iv) a previously disclosed charge incurred during the third quarter of 2006 to record the aggregate present value of the future funding of a portion of a gift from our Chairman of the Board of Directors, Chief Executive Officer and President to The College of William & Mary ("W&M Funding"); (v) favorable income tax adjustment to reduce reserves due to the expiration of statute of limitations in a foreign jurisdiction, and; (vi) gains on divestitures, net of income taxes (included in net income for nine-month period ended September 30, 2005).

After adjusting for the items discussed above applicable to each period presented, as indicated on the attached Supplemental Schedules, our adjusted net income during the three-month period ended September 30, 2006 was $30.6 million, or $.54 per diluted share, as compared to $28.4 million, or $.52 per diluted share, during the third quarter of 2005. Our adjusted net income during the nine-month period ended September 30, 2006 was $119.4 million, or $2.10 per diluted share, as compared to $125.2 million, or $2.09 per diluted share, during the comparable prior year nine-month period.

Our adjusted income from continuing operations during the three-month period ended September 30, 2006 was $30.7 million, or $.54 per diluted share, as compared to $29.6 million, or $.54 per diluted share, during the three- month period ended September 30, 2005. Our adjusted income from continuing operations during the nine-month period ended September 30, 2006 was $119.5 million, or $2.10 per diluted share, as compared to $123.9 million, or $2.07 per diluted share, during the comparable prior year nine-month period.

Net revenues increased 7% to $1.04 billion during the third quarter of 2006 as compared to $971 million during the third quarter of 2005. Net revenues increased 5% to $3.13 billion during the nine months ended September 30, 2006 as compared to $2.97 billion during the prior year nine-month period. Impacting our net revenues during the 2006 periods was the loss of revenues generated at our acute care facilities in Louisiana which were damaged and closed since the third quarter of 2005 as a result of Hurricane Katrina. On a combined basis, these facilities generated net revenues of $40 million and $166 million during the three and nine-month periods ended September 30, 2005, respectively. Also, as previously disclosed, 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 $17 million and $46 million during the three and nine-month periods ended September 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 1.9% and patient days increased 4.8% during the third quarter of 2006 as compared to the comparable 2005 quarter. Inpatient admissions increased 1.5% and patient days increased 2.4% during the nine- month period ended September 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, the inpatient statistics for those facilities have been excluded from the three and nine-month periods of each year. At our behavioral health care facilities owned during both quarters, inpatient admissions increased 3.0% and patient days increased 1.2% during the third quarter of 2006 as compared to the comparable 2005 quarter. Inpatient admissions increased 3.5% and patient days increased 1.7% during the nine- month period ended September 30, 2006 as compared to the comparable prior year period.

Our consolidated operating margin, as calculated on the attached Supplemental Schedules, was 12.2% and 13.0% during the three-month periods ended September 30, 2006 and 2005, respectively. The operating margin at our acute care hospitals owned during both periods ("same facility basis") remained unchanged at 11.8% during each of the three-month periods ended September 30, 2006 and 2005. On a same facility basis, the operating margin at our behavioral health hospitals increased to 24.7% during the third quarter of 2006 from 22.7% during the comparable quarter of the prior year. Contributing to the decrease in consolidated operating margin during the third quarter of 2006, as compared to the comparable prior year quarter, were lower operating margins experienced at our behavioral health facilities acquired during the fourth quarter of 2005 and the $4.5 million charge incurred during the third quarter of 2006 in connection with the W&M Funding.

Our consolidated operating margin was 13.4% and 13.9% during the nine- month periods ended September 30, 2006 and 2005, respectively. On a same facility basis, the operating margin at our acute care hospitals decreased to 13.5% during the nine months ended September 30, 2006 as compared to 14.4% during the nine months ended September 30, 2005. On a same facility basis, the operating margin at our behavioral health hospitals increased to 25.7% during the nine months ended September 30, 2006 as compared to 24.5% during the comparable prior year period.

Our provision for doubtful accounts as a percentage of net revenues was 9.4% and 10.6% during the three-month periods ended September 30, 2006 and 2005, respectively, and 8.3% and 9.5% during the nine-month periods ended September 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 10.8% and 9.6% during the three and nine-month periods ended September 30, 2006.

Effective July 1, 2006, the pharmacy services for our acute care facilities were brought in-house from an outsourced vendor and as a result of this change, during the third quarter of 2006, we experienced an increase in our supplies expense and salaries, wages and benefits expense and a decrease in our other operating expenses. The transition of our pharmacy services did not have a significant impact on our operating margin or net income during the third quarter of 2006.

As previously announced during the third quarter of 2006, we reached an agreement with our insurance carrier to settle all claims related to damage sustained at our facilities located in Louisiana as a result of Hurricane Katrina. Including amounts collected from our other insurance carriers in 2005 and 2006, we received total insurance proceeds of $264 million which represented approximately 95% of our insurance policy limits.

We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on October 27, 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 October 27, 2006 and will continue through midnight on November 3, 2006. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 8537972.

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 including items such as, but not limited to, gains on sales of assets and businesses, hurricane-related expenses and insurance recoveries, the W&M Funding, 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           Nine months
                                  ended September 30,    ended September 30,
                                    2006       2005       2006        2005

    Net revenues                 $1,043,457  $970,772  $3,125,419  $2,968,305

    Operating charges:
       Salaries, wages and
        benefits                    459,099   395,938   1,336,087   1,210,175
       Other operating expenses     211,875   229,119     708,932     694,991
       Supplies expense             146,944   117,127     400,271     369,787
       Provision for doubtful
        accounts                     97,901   102,734     260,090     280,620
       Depreciation and
        amortization                 40,961    38,552     120,360     116,236
       Lease and rental expense      16,184    14,688      48,247      45,443
       Hurricane related
        expenses                      4,172   128,895      14,432     128,895
       Hurricane insurance
        recoveries                   (4,172)  (81,709)    (14,432)    (81,709)
                                    972,964   945,344   2,873,987   2,764,438

    Income before interest
     expense, hurricane
     insurance recoveries in
     excess of expenses,
     minority interests and
     income taxes                    70,493    25,428     251,432     203,867

    Interest expense, net             6,140     6,404      23,362      24,530
    Hurricane insurance
     recoveries in excess of
     expenses                      (130,328)      -      (167,359)        -
    Minority interests in
     earnings of consolidated
     entities                        14,948     4,014      37,617      19,859

    Income before income taxes      179,733    15,010     357,812     159,478

    Provision for income taxes       65,704     5,531     132,420      58,677

    Income from continuing
     operations                     114,029     9,479     225,392     100,801

    (Loss) income from
     discontinued operations,
     net of income tax
     expense (a)                        (84)   (1,160)       (104)    127,770


    Net income                     $113,945    $8,319    $225,288    $228,571


    Basic earnings (loss) per
     share: (b)
         From continuing
          operations                  $2.01     $0.17       $4.11       $1.79
         From discontinued
          operations                   0.00     (0.02)       0.00        2.27
              Total basic
               earnings per
               share                  $2.01     $0.15       $4.11       $4.06

    Diluted earnings (loss) per
     share: (b)
         From continuing
          operations                  $2.00     $0.17       $3.89       $1.71
         From discontinued
          operations                   0.00     (0.02)       0.00        2.02
              Total diluted
               earnings per
               share                  $2.00     $0.15       $3.89       $3.73



                         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,
                                          2006     2005      2006      2005

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

    (Loss) income from operations          ($133) ($1,825)    ($165)   $5,713
    Gains on divestitures                    -        -         -     186,221
    Asset impairment charge                  -        -         -      (3,105)
    (Loss) income from discontinued
     operations, pre-tax                    (133)  (1,825)     (165)  188,829
    Income tax benefit (provision)            49      665        61   (61,059)
    (Loss) income from discontinued
     operations, net of income tax
     expense                                ($84) ($1,160)    ($104) $127,770


    (b) Earnings per share calculation:

    Basic:
    Income from continuing operations   $114,029   $9,479  $225,392  $100,801
    Less: Dividends on unvested
     restricted stock, net of taxes          (20)     (26)      (63)      (81)
    Income from continuing operations -
     basic                              $114,009   $9,453  $225,329  $100,720
    (Loss) income from discontinued
     operations                              (84)  (1,160)     (104)  127,770
    Net income - basic                  $113,925   $8,293  $225,225  $228,490

    Weighted average number of common
     shares - basic                       56,794   54,682    54,764    56,210

    Basic earnings (loss) per share:
         From continuing operations        $2.01    $0.17     $4.11     $1.79
         From discontinued operations       0.00    (0.02)     0.00      2.27
              Total basic earnings per
               share                       $2.01    $0.15     $4.11     $4.06

    Diluted:
    Income from continuing operations   $114,029   $9,479  $225,392  $100,801
    Less: Dividends on unvested
     restricted stock, net of taxes          (20)     (26)      (63)      (81)
    Add: Debenture interest, net of
     taxes                                   -        -       4,902     7,196
    Income from continuing operations -
     diluted                            $114,009   $9,453  $230,231  $107,916
    (Loss) income from discontinued
     operations                              (84)  (1,160)     (104)  127,770
    Net income - diluted                $113,925   $8,293  $230,127  $235,686

    Weighted average number of common
     shares                               56,794   54,682    54,764    56,210
    Add: Shares for conversion of
     convertible debentures                  -        -       4,168     6,577
             Other share equivalents         207      466       227       476
    Weighted average number of common
     shares and equiv. - diluted          57,001   55,148    59,159    63,263

    Diluted earnings (loss) per share:
         From continuing operations        $2.00    $0.17     $3.89     $1.71
         From discontinued operations       0.00    (0.02)     0.00      2.02
              Total diluted earnings
               per share                   $2.00    $0.15     $3.89     $3.73



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

                                              September 30,      December 31,
                                                   2006              2005
    Assets:
    Cash and cash equivalents                      $14,817            $7,963
    Accounts receivable, net                       584,764           499,726
    Other current assets                           113,311           100,609
    Property, plant and equipment, net           1,609,890         1,429,653
    Other assets                                   826,245           820,758
    Total Assets                                $3,149,027        $2,858,709

    Liabilities and Stockholders' Equity:
    Current portion of long-term debt               $3,137            $5,191
    Other current liabilities                      625,382           518,979
    Other noncurrent liabilities                   347,813           289,195
    Long-term debt                                 464,806           637,654
    Deferred income taxes                           24,403            42,713
    Minority interest                              187,041           159,879
    Stockholders' equity                         1,496,445         1,205,098
    Total Liabilities and Stockholders'
     Equity                                     $3,149,027        $2,858,709



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

                                         Three months ended Three months ended
                                         September 30, 2006 September 30, 2005


    Net revenues                         $1,043,457  100.0%  $970,772  100.0%

    Operating charges:
       Salaries, wages and benefits         459,099   44.0%   395,938   40.8%
       Other operating expenses             211,875   20.3%   229,119   23.6%
       Supplies expense                     146,944   14.1%   117,127   12.1%
       Provision for doubtful accounts       97,901    9.4%   102,734   10.6%
                                            915,819   87.8%   844,918   87.0%

    Operating income/margin                 127,638   12.2%   125,854   13.0%

       Lease and rental expense              16,184            14,688
       Minority interests in earnings of
        consolidated entities                14,948             4,014

    Earnings before hurricane related
     expenses, hurricane insurance
     recoveries, depreciation and
     amortization, interest expense, and
     income taxes ("EBITDA")                 96,506           107,152

       Hurricane related expenses             4,172           128,895
       Hurricane insurance recoveries      (134,500)          (81,709)
       Depreciation and amortization         40,961            38,552
       Interest expense, net                  6,140             6,404

    Income before income taxes              179,733            15,010

    Provision for income taxes               65,704             5,531

    Income from continuing operations       114,029             9,479

    (Loss) income from discontinued
     operations, net of income taxes            (84)           (1,160)

    Net income                             $113,945            $8,319



                                         Three months ended Three months ended
                                         September 30, 2006 September 30, 2005
                                                      Per               Per
                                                    Diluted           Diluted
                                           Amount    Share    Amount   Share
    Calculation of Adjusted Income from
     Continuing Operations
    Income from continuing operations      $114,029   $2.00    $9,479   $0.17
    Plus/minus adjustments:
       Hurricane related expenses, net of
        minority interests and income
        taxes                                 2,206    0.04    78,064    1.42
       Hurricane related insurance
        recoveries, net of minority
        interests and income taxes          (80,083)  (1.41)  (49,758)  (0.90)
       Prior period effect of
        supplemental reimbursements
        received from certain
       states and contractual
        settlements, net of income taxes     (7,025)  (0.12)   (8,201)  (0.15)
       W&M Funding                            4,466    0.08       -       -
       Favorable tax reserve adjustment      (2,900)  (0.05)      -       -
    Subtotal after-tax adjustments to
     income from continuing operations      (83,336)  (1.46)   20,105    0.37
    Adjusted income from continuing
     operations                             $30,693   $0.54   $29,584   $0.54

    Calculation of Adjusted Net Income
    Net income                             $113,945   $2.00    $8,319   $0.15
    After-tax adjustments to income from
     continuing operations, as indicated
     above                                  (83,336)  (1.46)   20,105    0.37
    Adjusted net income                     $30,609   $0.54   $28,424   $0.52



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

                                       Nine months ended   Nine months ended
                                       September 30, 2006  September 30, 2005

    Net revenues                       $3,125,419  100.0%  $2,968,305  100.0%

    Operating charges:
       Salaries, wages and benefits     1,336,087   42.7%   1,210,175   40.8%
       Other operating expenses           708,932   22.7%     694,991   23.4%
       Supplies expense                   400,271   12.8%     369,787   12.5%
       Provision for doubtful accounts    260,090    8.3%     280,620    9.5%
                                        2,705,380   86.6%   2,555,573   86.1%

    Operating income/margin               420,039   13.4%     412,732   13.9%

       Lease and rental expense            48,247              45,443
       Minority interests in earnings
        of consolidated entities           37,617              19,859

    Earnings before hurricane related
     expenses, hurricane insurance
     recoveries, depreciation and
     amortization, interest expense,
     and income taxes ("EBITDA")          334,175             347,430

       Hurricane related expenses          14,432             128,895
       Hurricane insurance recoveries    (181,791)            (81,709)
       Depreciation and amortization      120,360             116,236
       Interest expense, net               23,362              24,530

    Income before income taxes            357,812             159,478

    Provision for income taxes            132,420              58,677

    Income from continuing operations     225,392             100,801

    (Loss) income from discontinued
     operations, net of income taxes         (104)            127,770

    Net income                           $225,288            $228,571



                                        Nine months ended   Nine months ended
                                        September 30, 2006  September 30, 2005

                                                     Per              Per
                                                   Diluted          Diluted
                                           Amount   Share   Amount   Share
    Calculation of Adjusted Income from
     Continuing Operations
    Income from continuing operations     $225,392  $3.89  $100,801  $1.71
    Plus/minus adjustments:
       Hurricane related expenses, net of
        minority interests and income
        taxes                                8,139   0.14    78,064   1.23
       Hurricane related insurance
        recoveries, net of minority
        interests and income taxes        (107,814) (1.83)  (49,758) (0.79)
       Prior period effect of
        supplemental reimbursements
        received from certain
       states and contractual
        settlements, net of income taxes    (7,818) (0.13)   (5,225) (0.08)
       W&M Funding                           4,466   0.08       -      -
       Favorable tax reserve adjustment     (2,900) (0.05)      -      -
    Subtotal after-tax adjustments to
     income from continuing operations    (105,927) (1.79)   23,081   0.36
    Adjusted income from continuing
     operations                           $119,465  $2.10  $123,882  $2.07

    Calculation of Adjusted Net Income
    Net income                            $225,288  $3.89  $228,571  $3.73
    After-tax adjustments to income from
     continuing operations, as indicated
     above                                (105,927) (1.79)   23,081   0.36
    Gain on divestitures, net of income
     taxes                                     -      -    (126,462) (2.00)
    Adjusted net income                   $119,361  $2.10  $125,190  $2.09



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

                                               % Change          % Change
                                            Quarter Ended     9 months ended
    Same Facility:                            9/30/2006         9/30/2006

    Acute Care Hospitals
    Revenues                                       7.2%              5.9%
    Adjusted Admissions                            1.2%              1.4%
    Adjusted Patient Days                          4.3%              2.6%
    Revenue Per Adjusted Admission                 6.0%              4.4%
    Revenue Per Adjusted Patient Day               2.8%              3.2%


    Behavioral Health Hospitals

    Revenues                                       7.5%              7.9%
    Adjusted Admissions                            3.0%              3.3%
    Adjusted Patient Days                          0.9%              1.6%
    Revenue Per Adjusted Admission                 4.4%              4.5%
    Revenue Per Adjusted Patient Day               6.5%              6.2%



    UHS Consolidated      Third Quarter Ended        Nine months Ended
                          9/30/2006  9/30/2005     9/30/2006   9/30/2005

    Revenues              $1,043,457  $970,772     $3,125,419  $2,968,305
    EBITDA   (1)              96,506   107,152        334,175     347,430
    EBITDA Margin (1)           9.2%     11.0%          10.7%       11.7%

    Cash Flow From
     Operations               60,948   126,005        250,020     356,443
    Days Sales
     Outstanding                  52        48             51          46
    Capital Expenditures      80,335    62,496        233,008     171,343

    Debt (net of cash)                       -        453,126    $450,019
    Shareholders Equity                      -      1,496,445  $1,223,997
    Debt / Total
     Capitalization                          -          23.2%       26.9%
    Debt / EBITDA  (2)                       -           1.05        1.00
    Debt / Cash From
     Operations  (2)                         -           1.42        1.03


    Acute Care EBITDAR
     Margin  (3) (4)           13.0%     13.0%          14.0%       14.4%
    Behavioral Health
     EBITDAR Margin
     (3) (4)                   22.5%     23.2%          23.6%       24.4%


    (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
                             SEPTEMBER 30, 2006

       AS REPORTED:
                                                       ACUTE (1) (2)
                                           09/30/06      09/30/05   %  change

       Hospitals owned and leased                  21            24    -12.5%
       Average licensed beds                    5,139         5,557     -7.5%
       Patient days                           268,537       275,148     -2.4%
       Average daily census                   2,918.9       2,990.7     -2.4%
       Occupancy-licensed beds                  56.8%         53.8%      5.5%
       Admissions                              60,656        62,502     -3.0%
       Length of stay                             4.4           4.4      0.6%

       Inpatient revenue                   $1,813,162    $1,752,146      3.5%
       Outpatient revenue                     717,752       707,282      1.5%
       Total patient revenue                2,530,914     2,459,428      2.9%
       Other revenue                           11,014        12,352    -10.8%
       Gross hospital revenue               2,541,928     2,471,780      2.8%

       Total deductions                     1,764,296     1,708,052      3.3%

       Net hospital revenue                  $777,632      $763,728      1.8%


                                                   BEHAVIORAL HEALTH
                                           09/30/06     09/30/05   %  change

        Hospitals owned and leased                 79           45     75.6%
        Average licensed beds                   6,640        4,517     47.0%
        Patient days                          467,860      335,825     39.3%
        Average daily census                  5,085.4      3,650.3     39.3%
        Occupancy-licensed beds                 76.6%        80.8%     -5.2%
        Admissions                             28,100       25,724      9.2%
        Length of stay                           16.6         13.1     27.5%

        Inpatient revenue                    $416,515     $336,676     23.7%
        Outpatient revenue                     47,809       45,111      6.0%
        Total patient revenue                 464,324      381,787     21.6%
        Other revenue                           7,546        7,122      6.0%
        Gross hospital revenue                471,870      388,909     21.3%

        Total deductions                      217,700      193,839     12.3%

        Net hospital revenue                 $254,170     $195,070     30.3%



       SAME FACILITY:
                                                       ACUTE  (1) (3)
                                           09/30/06      09/30/05   %  change

       Hospitals owned and leased                  21            21      0.0%
       Average licensed beds                    5,139         5,012      2.5%
       Patient days                           268,557       256,358      4.8%
       Average daily census                   2,919.1       2,786.5      4.8%
       Occupancy-licensed beds                  56.8%         55.6%      2.2%
       Admissions                              60,656        59,547      1.9%
       Length of stay                             4.4           4.3      2.8%


                                                  BEHAVIORAL HEALTH (4)
                                           09/30/06     09/30/05   %  change

        Hospitals owned and leased                 45           45      0.0%
        Average licensed beds                   4,551        4,517      0.8%
        Patient days                          339,738      335,800      1.2%
        Average daily census                  3,692.8      3,650.0      1.2%
        Occupancy-licensed beds                 81.1%        80.8%      0.4%
        Admissions                             26,494       25,724      3.0%
        Length of stay                           12.8         13.1     -1.8%


      (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) Academy at Canyon Creek, Ascent, Boulder Creek, Casa de Lago, Cedar
          Ridge RTC & Hospital, Center for Change, NorthStar RTC, Northwest
          Academy, Wyoming Behavioral and the Keystone facilities are excluded
          in current and prior year. King George School is included in both
          current and prior years from September 1st through YTD.



                         UNIVERSAL HEALTH SERVICES, INC.
                          SELECTED HOSPITAL STATISTICS
                            FOR THE NINE MONTHS ENDED
                               SEPTEMBER 30, 2006

      AS REPORTED:
                                                       ACUTE (1) (2)
                                           09/30/06      09/30/05   %  change

       Hospitals owned and leased                  21            24    -12.5%
       Average licensed beds                    5,047         5,553     -9.1%
       Patient days                           819,711       877,216     -6.6%
       Average daily census                   3,002.6       3,213.2     -6.6%
       Occupancy-licensed beds                  59.5%         57.9%      2.8%
       Admissions                             184,374       193,894     -4.9%
       Length of stay                             4.4           4.5     -1.7%

       Inpatient revenue                   $5,607,700    $5,538,861      1.2%
       Outpatient revenue                   2,147,156     2,116,715      1.4%
       Total patient revenue                7,754,856     7,655,576      1.3%
       Other revenue                           37,871        39,850     -5.0%
       Gross hospital revenue               7,792,727     7,695,426      1.3%

       Total deductions                     5,469,167     5,344,201      2.3%

       Net hospital revenue                $2,323,560    $2,351,225     -1.2%


                                                    BEHAVIORAL HEALTH
                                           09/30/06      09/30/05   %  change

       Hospitals owned and leased                  79            45    75.6%
       Average licensed beds                    6,492         4,462    45.5%
       Patient days                         1,386,299     1,004,913    38.0%
       Average daily census                   5,078.0       3,681.0    38.0%
       Occupancy-licensed beds                  78.2%         82.5%    -5.2%
       Admissions                              84,100        76,752     9.6%
       Length of stay                            16.5          13.1    25.9%

       Inpatient revenue                   $1,244,739    $1,007,384    23.6%
       Outpatient revenue                     154,605       145,092     6.6%
       Total patient revenue                1,399,344     1,152,476    21.4%
       Other revenue                           24,092        23,801     1.2%
       Gross hospital revenue               1,423,436     1,176,277    21.0%

       Total deductions                       656,020       592,259    10.8%

       Net hospital revenue                  $767,416      $584,018    31.4%



       SAME FACILITY:
                                                      ACUTE  (1) (3)
                                           09/30/06      09/30/05   %  change

       Hospitals owned and leased                  21            21      0.0%
       Average licensed beds                    5,047         5,008      0.8%
       Patient days                           819,710       800,354      2.4%
       Average daily census                   3,002.6       2,931.7      2.4%
       Occupancy-licensed beds                  59.5%         58.5%      1.6%
       Admissions                             184,374       181,735      1.5%
       Length of stay                             4.4           4.4      1.0%


                                                    BEHAVIORAL HEALTH (4)
                                           09/30/06      09/30/05   %  change

       Hospitals owned and leased                  45            45     0.0%
       Average licensed beds                    4,502         4,462     0.9%
       Patient days                         1,022,303     1,004,886     1.7%
       Average daily census                   3,744.7       3,680.9     1.7%
       Occupancy-licensed beds                  83.2%         82.5%     0.8%
       Admissions                              79,445        76,752     3.5%
       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) Academy at Canyon Creek, Ascent, Boulder Creek, Casa de Lago, Cedar
          Ridge RTC & Hospital, Center for Change, NorthStar RTC, Northwest
          Academy, Wyoming Behavioral and the Keystone facilities are excluded
          in current and prior year. King George School is included in both
          current and prior years from September 1st through YTD.

SOURCE: Universal Health Services, Inc.

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

<< Back To Press Releases