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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

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FORM 8-K

 

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CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 28, 2006 (July 27, 2006)

 

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UNIVERSAL HEALTH SERVICES, INC.

(Exact name of registrant as specified in its charter)

 

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DELAWARE		1-10765		23-2077891
(State or other jurisdiction of Incorporation or Organization)		(Commission File Number)		(I.R.S. Employer Identification No.)

UNIVERSAL CORPORATE CENTER

367 SOUTH GULPH ROAD

KING OF PRUSSIA, PENNSYLVANIA 19406

(Address of principal executive office) (Zip Code)

Registrant’s telephone number, including area code (610) 768-3300

Not Applicable

(Former name or former address, if changed since last report)

 

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

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Item 2.02 Results of Operations and Financial Condition

On July 27, 2006, Universal Health Services, Inc. (the “Company”) issued its 2006 second quarter earnings release. A copy of the Company’s press release is furnished as exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits. 99.1 Universal Health Services, Inc. press release, dated July 27, 2006

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: July 28, 2006

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Exhibit Index

 

Exhibit No.		Exhibit
99.1		Universal Health Services, Inc., press release, dated July 27, 2006

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

CONTACT:		Steve Filton
		Chief Financial Officer				July 27, 2006
		610-768-3300

UNIVERSAL HEALTH SERVICES, INC. REPORTS

SECOND QUARTER EARNINGS

KING OF PRUSSIA, PA – 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 1^st 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

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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

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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 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 (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

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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.

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Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

 

		Three months ended June 30,							Six months 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

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Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

 

		Three months ended June 30,								Six months 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

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Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

		June 30, 2006			December 31, 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

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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 June 30, 2006							Three months ended 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 June 30, 2006								Three months ended June 30, 2005
		Amount				Per Diluted Share				Amount			Per Diluted 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

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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 June 30, 2006							Six months ended 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 June 30, 2006								Six months ended June 30, 2005
		Amount				Per Diluted Share				Amount			Per Diluted 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

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Universal Health Services, Inc.

Supplemental Statistical Information

(un-audited)

Same Facility:

		% Change Quarter Ended 6/30/2006			% Change 6 months ended 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	%

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(1)	Net of Minority Interest

(2)	Latest 4 quarters

(3)	Before Corporate overhead allocation and minority interest

(4)	Excluding discontinued operations

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UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE THREE MONTHS ENDED

JUNE 30, 2006

AS REPORTED:

 

		ACUTE (1) (2)											BEHAVIORAL HEALTH
		06/30/06				06/30/05				% change			06/30/06				06/30/05				% change
Hospitals owned and leased			21				24			-12.5	%			75				44			70.5	%
Average licensed beds			5,014				5,552			-9.7	%			6,439				4,456			44.5	%
Patient days			267,945				289,568			-7.5	%			466,554				343,214			35.9	%
Average daily census			2,944.5				3,182.1			-7.5	%			5,127.0				3,771.6			35.9	%
Occupancy-licensed beds			58.7	%			57.3	%		2.5	%			79.6	%			84.6	%		-5.9	%
Admissions			60,551				64,301			-5.8	%			27,928				25,983			7.5	%
Length of stay			4.4				4.5			-1.7	%			16.7				13.2			26.5	%
Inpatient revenue		$	1,853,383			$	1,839,847			0.7	%		$	418,824			$	344,811			21.5	%
Outpatient revenue			720,893				718,853			0.3	%			53,522				51,466			4.0	%
Total patient revenue			2,574,276				2,558,700			0.6	%			472,346				396,277			19.2	%
Other revenue			14,334				14,382			-0.3	%			8,471				8,719			-2.8	%
Gross hospital revenue			2,588,610				2,573,082			0.6	%			480,817				404,996			18.7	%
Total deductions			1,812,634				1,792,209			1.1	%			221,199				205,608			7.6	%
Net hospital revenue		$	775,976			$	780,873			-0.6	%		$	259,618			$	199,388			30.2	%
SAME FACILITY:
		ACUTE (1) (3)											BEHAVIORAL HEALTH (4)
		06/30/06				06/30/05				% change			06/30/06				06/30/05				% change
Hospitals owned and leased			21				21			0.0	%			44				44			0.0	%
Average licensed beds			5,014				5,007			0.1	%			4,499				4,456			1.0	%
Patient days			267,940				261,352			2.5	%			345,600				343,216			0.7	%
Average daily census			2,944.4				2,872.0			2.5	%			3,797.8				3,771.6			0.7	%
Occupancy-licensed beds			58.7	%			57.4	%		2.4	%			84.4	%			84.6	%		-0.3	%
Admissions			60,551				59,775			1.3	%			26,421				25,983			1.7	%
Length of stay			4.4				4.4			1.2	%			13.1				13.2			-1.0	%

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(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.

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UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE SIX MONTHS ENDED

JUNE 30, 2006

AS REPORTED:

 

		ACUTE (1) (2)											BEHAVIORAL HEALTH
		06/30/06				06/30/05				% change			06/30/06				06/30/05				% change
Hospitals owned and leased			21				24			-12.5	%			75				44			70.5	%
Average licensed beds			5,002				5,550			-9.9	%			6,419				4,435			44.7	%
Patient days			551,174				602,068			-8.5	%			918,439				669,088			37.3	%
Average daily census			3,045.2				3,326.3			-8.5	%			5,074.2				3,696.6			37.3	%
Occupancy-licensed beds			60.9	%			59.9	%		1.6	%			79.1	%			83.4	%		-5.2	%
Admissions			123,718				131,392			-5.8	%			56,000				51,028			9.7	%
Length of stay			4.5				4.6			-2.8	%			16.4				13.1			25.1	%
Inpatient revenue		$	3,794,538			$	3,786,715			0.2	%		$	828,224			$	670,708			23.5	%
Outpatient revenue			1,429,404				1,409,433			1.4	%			106,796				99,981			6.8	%
Total patient revenue			5,223,942				5,196,148			0.5	%			935,020				770,689			21.3	%
Other revenue			26,857				27,498			-2.3	%			16,546				16,679			-0.8	%
Gross hospital revenue			5,250,799				5,223,646			0.5	%			951,566				787,368			20.9	%
Total deductions			3,704,871				3,636,149			1.9	%			438,320				398,420			10.0	%
Net hospital revenue		$	1,545,928			$	1,587,497			-2.6	%		$	513,246			$	388,948			32.0	%
SAME FACILITY:
		ACUTE (1) (3)											BEHAVIORAL HEALTH (4)
		06/30/06				06/30/05				% change			06/30/06				06/30/05				% change
Hospitals owned and leased			21				21			0.0	%			44				44			0.0	%
Average licensed beds			5,002				5,005			-0.1	%			4,477				4,435			0.9	%
Patient days			551,199				544,068			1.3	%			682,497				669,139			2.0	%
Average daily census			3,045.3				3,005.9			1.3	%			3,770.7				3,696.9			2.0	%
Occupancy-licensed beds			60.9	%			60.1	%		1.4	%			84.2	%			83.4	%		1.0	%
Admissions			123,718				122,188			1.3	%			52,951				51,028			3.8	%
Length of stay			4.5				4.5			0.1	%			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.