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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): February 25, 2005 (February 24, 2005)

 

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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 February 24, 2005, Universal Health Services, Inc. (the “Company”) issued its 2004 fourth quarter and full year 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

 

(c) Exhibits. 99.1 Universal Health Services, Inc. Press Release dated February 24, 2005

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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: February 25, 2005

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Exhibit Index

 

Exhibit No.		Exhibit
99.1		Press release, dated February 24, 2005

EXHIBIT 99.1

 

FOR IMMEDIATE RELEASE

 

CONTACT:		Steve Filton
		Chief Financial Officer		February 24, 2005
		610-768-3300

 

UNIVERSAL HEALTH SERVICES, INC. REPORTS

2004 FOURTH QUARTER and FULL YEAR EARNINGS

 

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today its results for the fourth quarter and full year ended December 31, 2004. Reported net income was $37.2 million or $.61 per diluted share during the fourth quarter of 2004, as compared to $46.5 million or $.75 per diluted share during the fourth quarter of 2003. For the full year of 2004, reported net income was $169.5 million or $2.75 per diluted share as compared to $199.3 million or $3.20 per diluted share during 2003. Net revenues were $995 million and $887 million during the three-month periods ended December 31, 2004 and 2003, respectively, and $3.94 billion and $3.39 billion during the twelve-month periods ended December 31, 2004 and 2003, respectively.

 

Reported income from continuing operations was $38.1 million or $.62 per diluted share during the fourth quarter of 2004 as compared to $45.2 million or $.73 per diluted share during the fourth quarter of 2003. Income from continuing operations was $170.0 million or $2.76 per diluted share during the year ended December 31, 2004 as compared to $192.1 million or $3.09 per diluted share during the prior year.

 

Excluding the impact of a cumulative reduction to current and prior year’s compensation expense resulting from the reversal of expense related to restricted shares granted to our Chief Executive Officer that were contingent on an earnings threshold which was not achieved, our adjusted income from continuing operations was $30.7 million or $.51 per diluted share during the three-month period ended December 31, 2004. Adjusted income from continuing operations was $162.3 million or $2.65 per diluted share during the year ended December 31, 2004 (as calculated on the attached schedule of Non-GAAP Supplemental Consolidated Income Statement Information).

 

At our acute care hospitals owned during both periods located in the U.S., net revenues increased 2.6% during the fourth quarter of 2004, as compared to the comparable prior year quarter, due primarily to a 3.3% increase in revenue per adjusted patient day. Admissions to these facilities decreased .5% and patient days decreased 1.8% during the fourth quarter of 2004, as compared to the prior year quarter. At our behavioral health hospitals owned in both periods, admissions increased 2.0%, patient days increased 7.4%, net revenues increased 5.1% and revenue per adjusted patient day increased .5% during the fourth quarter of 2004, as compared to the prior year quarter.

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Our adjusted operating margin (as calculated on the attached schedule of Non-GAAP Supplemental Consolidated Income Statement Information), decreased to 12.3% during the three-month period ended December 31, 2004 as compared to 15.2% during the same period of the prior year. The operating margin at our acute care hospitals located in the U.S. owned during both periods (“same facility basis”) decreased to 13.9% during the three months ended December 31, 2004 as compared to 14.8% during the three months ended December 31, 2003. Also contributing to the decrease in our consolidated operating margin during the fourth quarter of 2004, as compared to the comparable prior year quarter, was a much lower operating margin experienced at an acute care facility purchased during the first quarter of 2004 and a newly constructed acute care facility which opened during the third quarter of 2004. On a same facility basis, the operating margin at our behavioral health hospitals decreased to 19.3% during the fourth quarter of 2004 from 25.4% during the comparable quarter of the prior year. Favorably impacting the operating margin at our behavioral health hospitals during the fourth quarter of 2003 was the reversal of $4 million of previously established bad debt reserves which were reversed as a result of a certain payor’s emergence from Chapter 11 bankruptcy protection.

 

The provision for doubtful accounts was 7.0% of net revenues during the fourth quarter of 2004 as compared to 8.0% during the prior year’s fourth quarter. The decrease resulted primarily from an increase in balances classified as charity care as a result of implementation of an indigent discount policy.

 

We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on February 25, 2005. The dial-in number is 1-877-648-7971. A digital recording of the conference call will be available two hours after the completion of the conference call on February 25, 2005 and will continue through midnight on March 4, 2005. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 3720717.

 

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 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, in Puerto Rico and in France. 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 related to healthcare

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industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in “Forward-Looking Statements and Risk Factors” on pages 17 and 18 of our Form 10-Q for the quarterly period ended September 30, 2004), 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 operating income and adjusted operating margin, which are non-GAAP financial measures (“GAAP” is Generally Accepted Accounting Principles), are helpful to our investors as measures of our operating performance. In addition, we believe that comparing and discussing our financial results based on adjusted income from continuing operations, 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 reversal of previously recorded stock grant amortization, property write-downs, gains on sales of assets and businesses or other amounts reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance, operating income, operating margin and adjusted income from continuing operations should be examined in connection with net income, determined in accordance with accounting principles generally accepted in the United States of America, 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, 2003. Since the items included or excluded from operating income, operating margin and adjusted income from continuing operations are significant components in understanding and assessing financial performance under accounting principles generally accepted in the United States of America, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since operating income, operating margin and adjusted income from continuing operations are not measurements determined in accordance with accounting principles generally accepted in the United States of America and are thus susceptible to varying calculations, these measures as presented may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance. Below are schedules of Non-GAAP Supplemental Consolidated Income Statement Information which reconcile operating income and adjusted income from continuing operations to net income for the periods presented.

 

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Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

 

		Three months ended December 31,							Twelve months ended December 31,
		2004				2003			2004				2003
Net revenues		$	994,836			$	887,286		$	3,938,320			$	3,391,506
Operating charges:
Salaries, wages and benefits			404,865				356,524			1,607,103				1,355,047
Other operating expenses			239,068				202,532			916,542				778,656
Supplies expense			147,589				122,547			546,801				449,225
Provision for doubtful accounts			69,169				70,945			307,163				252,644
Depreciation and amortization			40,085				34,956			155,514				130,039
Lease and rental expense			17,962				15,195			70,433				59,479
			918,738				802,699			3,603,556				3,025,090
Income before interest expense, minority interests and income taxes			76,098				84,587			334,764				366,416
Interest expense, net			10,930				9,915			43,405				37,855
Minority interests in earnings of consolidated entities			3,316				2,221			20,216				22,265
Income before income taxes			61,852				72,451			271,143				306,296
Provision for income taxes			23,733				27,204			101,137				114,217
Income from continuing operations			38,119				45,247			170,006				192,079
Income (loss) from discontinued operations, net of income tax expense (a)			(945	)			1,221			(514	)			7,190
Net income		$	37,174			$	46,468		$	169,492			$	199,269
Basic earnings (loss) per share: (b)
From continuing operations		$	0.66			$	0.79		$	2.95			$	3.33
From discontinued operations		$	(0.02	)		$	0.02		$	(0.01	)		$	0.12
Total basic earnings per share		$	0.64			$	0.81		$	2.94			$	3.45
Diluted earnings (loss) per share: (b)
From continuing operations		$	0.62			$	0.73		$	2.76			$	3.09
From discontinued operations		$	(0.01	)		$	0.02		$	(0.01	)		$	0.11
Total diluted earnings per share		$	0.61			$	0.75		$	2.75			$	3.20

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Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

 

		Three months ended December 31,								Twelve months ended December 31,
		2004				2003				2004				2003
(a) Calculation of income (loss) from discontinued operations, net of income tax:
Income (loss) from operations		$	(1,458	)		$	26			$	(6,191	)		$	1,655
Gains (losses), net			(29	)			6,786				5,382				14,623
Provision for asset impairment			—				(13,742	)			—				(13,742	)
Recovery of provision for judgment/closure costs			—				8,867				—				8,867
Income (loss) from discontinued operations, pre-tax			(1,487	)			1,937				(809	)			11,403
Income tax (provision)/benefit			542				(716	)			295				(4,213	)
Income (loss) from discontinued operations, net of income tax expense		$	(945	)		$	1,221			$	(514	)		$	7,190
(b) Earnings per share calculation:
Basic:
Income from continuing operations		$	38,119			$	45,247			$	170,006			$	192,079
Less: Dividends on unvested restricted stock, net of taxes			(27	)			(28	)			(111	)			(28	)
Income from continuing operations - basic		$	38,092			$	45,219			$	169,895			$	192,051
Income (loss) from discontinued operations			(945	)			1,221				(514	)			7,190
Net income - basic		$	37,147			$	46,440			$	169,381			$	199,241
Weighted average number of common shares - basic			57,635				57,466				57,653				57,688
Basic earnings (loss) per share:
From continuing operations		$	0.66			$	0.79			$	2.95			$	3.33
From discontinued operations		$	(0.02	)		$	0.02			$	(0.01	)		$	0.12
Total basic earnings per share		$	0.64			$	0.81			$	2.94			$	3.45
Diluted:
Income from continuing operations		$	38,119			$	45,247			$	170,006			$	192,079
Less: Dividends on unvested restricted stock, net of taxes			(27	)			(28	)			(111	)			(28	)
Add: Debenture interest, net of taxes			2,334				2,222				9,240				8,799
Income from continuing operations - diluted		$	40,426			$	47,441			$	179,135			$	200,850
Income (loss) from discontinued operations			(945	)			1,221				(514	)			7,190
Net income - diluted		$	39,481			$	48,662			$	178,621			$	208,040
Weighted average number of common shares			57,635				57,466				57,653				57,688
Add: Shares for conversion of convertible debentures			6,577				6,577				6,577				6,577
Other share equivalents			280				935				635				824
Weighted average number of common shares and equiv. - diluted			64,492				64,978				64,865				65,089
Diluted earnings (loss) per share:
From continuing operations		$	0.62			$	0.73			$	2.76			$	3.09
From discontinued operations		$	(0.01	)		$	0.02			$	(0.01	)		$	0.11
Total diluted earnings per share		$	0.61			$	0.75			$	2.75			$	3.20

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Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

		December 31, 2004			December 31, 2003
Assets:
Cash and cash equivalents		$	33,125		$	34,863
Accounts receivable, net			552,538			503,929
Other current assets			90,392			106,999
Property, plant and equipment, net			1,448,066			1,304,341
Other assets			765,852			822,598
Assets held for sale			132,870			—
Total Assets		$	3,022,843		$	2,772,730
Liabilities and Stockholders’ Equity:
Current portion of long-term debt		$	16,968		$	10,871
Liabilities held for sale			14,720			—
Other current liabilities			437,968			384,882
Other noncurrent liabilities			243,617			216,094
Long-term debt			852,229			868,566
Deferred income taxes			50,212			41,841
Minority interest			186,543			159,554
Stockholders’ equity			1,220,586			1,090,922
Total Liabilities and Stockholders’ Equity		$	3,022,843		$	2,772,730

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Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information

For the Three Months Ended December 31, 2004 and 2003

(in thousands)

(unaudited)

 

		Three months ended December 31, 2004							Three months ended December 31, 2003
Net revenues		$	994,836			100.0	%		$	887,286		100.0	%
Operating charges:
Salaries, wages and benefits			404,865			40.7	%			356,524		40.2	%
Other operating expenses			239,068			24.0	%			202,532		22.8	%
Supplies expense			147,589			14.8	%			122,547		13.8	%
Provision for doubtful accounts			69,169			7.0	%			70,945		8.0	%
			860,691			86.5	%			752,548		84.8	%
Operating income/margin			134,145			13.5	%			134,738		15.2	%
Lease and rental expense			17,962							15,195
Minority interests in earnings of consolidated entities			3,316							2,221
Earnings before depreciation and amortization, interest expense, and income taxes (“EBITDA”)			112,867							117,322
Depreciation and amortization			40,085							34,956
Interest expense, net			10,930							9,915
Income before income taxes			61,852							72,451
Provision for income taxes			23,733							27,204
Income from continuing operations			38,119							45,247
Income (loss) from discontinued operations, net of income taxes			(945	)						1,221
Net income		$	37,174						$	46,468

 

		Three months ended December 31, 2004								Three months ended December 31, 2003
		Amount				Per Diluted Share				Amount			Per Diluted Share
Calculation of Adjusted Income from Continuing Operations
Income from continuing operations		$	38,119			$	0.62			$	45,247		$	0.73
Less: After-tax reversal of previously recorded stock grant amortization expense			(7,394	)		$	(0.11	)			—			—
Adjusted income from continuing operations		$	30,725			$	0.51			$	45,247		$	0.73
		Amount				Margin				Amount			Margin
Calculation of Adjusted Operating Income/Margin
Operating income/margin		$	134,145				13.5	%		$	134,738			15.2	%
Less: Pre-tax reversal of previously recorded stock grant amortization expense			(11,632	)			(1.2	)%			—			—
Adjusted operating income/margin		$	122,513				12.3	%		$	134,738			15.2	%

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Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information

For the Twelve Months Ended December 31, 2004 and 2003

(in thousands)

(unaudited)

 

		Twelve months ended December 31, 2004							Twelve months ended December 31, 2003
Net revenues		$	3,938,320			100.0	%		$	3,391,506		100.0	%
Operating charges:
Salaries, wages and benefits			1,607,103			40.8	%			1,355,047		40.0	%
Other operating expenses			916,542			23.3	%			778,656		23.0	%
Supplies expense			546,801			13.9	%			449,225		13.2	%
Provision for doubtful accounts			307,163			7.8	%			252,644		7.4	%
			3,377,609			85.8	%			2,835,572		83.6	%
Operating income/margin			560,711			14.2	%			555,934		16.4	%
Lease and rental expense			70,433							59,479
Minority interests in earnings of consolidated entities			20,216							22,265
Earnings before depreciation and amortization, interest expense, and income taxes (“EBITDA”)			470,062							474,190
Depreciation and amortization			155,514							130,039
Interest expense, net			43,405							37,855
Income before income taxes			271,143							306,296
Provision for income taxes			101,137							114,217
Income from continuing operations			170,006							192,079
Income (loss) from discontinued operations, net of income taxes			(514	)						7,190
Net income		$	169,492						$	199,269

 

		Twelve months ended December 31, 2004								Twelve months ended December 31, 2003
		Amount				Per Diluted Share				Amount			Per Diluted Share
Calculation of Adjusted Income from Continuing Operations
Income from continuing operations		$	170,006			$	2.76			$	192,079		$	3.09
Less: After-tax DSH revenue attributable to prior year			(1,748	)		$	(0.02	)			—			—
Add: After-tax hurricane property damage			1,474			$	0.02				—			—
Less: After-tax reversal of previously recorded stock grant amortization expense			(7,394	)		$	(0.11	)			—			—
Adjusted income from continuing operations		$	162,338			$	2.65			$	192,079		$	3.09
		Amount				Margin				Amount			Margin
Calculation of Adjusted Operating Income/Margin
Operating income/margin		$	560,711				14.2	%		$	555,934			16.4	%
Less: Pre-tax reversal of previously recorded stock grant amortization expense			(11,632	)			(0.3	)%			—			—
Adjusted operating income/margin		$	549,079				13.9	%		$	555,934			16.4	%

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Universal Health Services, Inc.

Supplemental Statistical Information

(un-audited)

 

Same Facility:		% Change Quarter Ended 12/31/2004			% Change 12 mos. ended 12/31/2004
Acute Care Hospitals
Revenues		2.6	%		3.1	%
Adjusted Admissions		0.9	%		0.3	%
Adjusted Patient Days		-0.7	%		-0.4	%
Revenue Per Adjusted Admission		1.7	%		2.8	%
Revenue Per Adjusted Patient Day		3.3	%		3.4	%
Behavioral Health Hospitals
Revenues		7.3	%		7.9	%
Adjusted Admissions		1.5	%		5.4	%
Adjusted Patient Days		6.8	%		6.3	%
Revenue Per Adjusted Admission		5.7	%		2.4	%
Revenue Per Adjusted Patient Day		0.5	%		1.5	%

 

UHS Consolidated		Fourth Quarter Ended								Twelve months Ended
		12/31/2004				12/31/2003				12/31/2004				12/31/2003
Revenues		$	994,836			$	887,286			$	3,938,320			$	3,391,506
EBITDA (1)			112,867				117,322				470,062				474,190
EBITDA Margin (1)			11.3	%			13.2	%			11.9	%			14.0	%
Cash Flow From Operations			81,015				63,373				394,529				376,775
Days Sales Outstanding			51				52				51				54
Capital Expenditures			54,658				57,140				231,987				224,370
Debt (net of cash)			—				—				836,072			$	844,574
Shareholders Equity			—				—				1,220,586			$	1,090,922
Debt / Total Capitalization			—				—				40.7	%			43.6	%
Debt / EBITDA			—				—				1.78				1.78
Debt / Cash From Operations			—				—				2.12				2.24
Acute Care EBITDAR Margin (2)			12.5	%			15.3	%			14.7	%			18.1	%
Behavioral Health EBITDAR Margin (2)			19.0	%			25.4	%			22.3	%			23.5	%

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(1)	Net of Minority Interest

(2)	Before Corporate overhead allocation and minority interest

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UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

DECEMBER 31, 2004

 

AS REPORTED:

 

FOR THE THREE MONTHS ENDED

 

		ACUTE (1) (2)								%			BEHAVIORAL HEALTH								%
		12/31/04				12/31/03							12/31/04				12/31/03
Hospitals owned and leased			25				25			0.0	%			44				39			12.8	%
Average licensed beds			5,602				4,998			12.1	%			4,386				3,902			12.4	%
Patient days			284,920				260,778			9.3	%			320,753				265,733			20.7	%
Average daily census			3,097.0				2,834.5			9.3	%			3,486.4				2,888.4			20.7	%
Occupancy-licensed beds			55.3	%			56.7	%		-2.5	%			79.5	%			74.0	%		7.4	%
Admissions			63,218				57,795			9.4	%			22,896				21,756			5.2	%
Length of stay			4.5				4.5			-0.1	%			14.0				12.2			14.7	%
Inpatient revenue		$	1,692,754			$	1,453,424			16.5	%		$	318,264			$	274,269			16.0	%
Outpatient revenue			648,448				512,535			26.5	%			45,538				40,600			12.2	%
Total patient revenue			2,341,202				1,965,959			19.1	%			363,802				314,869			15.5	%
Other revenue			8,274				8,261			0.2	%			7,482				7,432			0.7	%
Gross hospital revenue			2,349,476				1,974,220			19.0	%			371,284				322,301			15.2	%
Total deductions			1,629,805				1,339,457			21.7	%			192,938				167,501			15.2	%
Net hospital revenue		$	719,671			$	634,763			13.4	%		$	178,346			$	154,800			15.2	%

 

SAME FACILITY:

 

FOR THE THREE MONTHS ENDED

 

		ACUTE (1) (3)						%			BEHAVIORAL HEALTH (4)						%
		12/31/04			12/31/03						12/31/04			12/31/03
Hospitals owned and leased		25			25			0.0	%		39			39			0.0	%
Average licensed beds		4,894			4,998			-2.1	%		3,980			3,902			2.0	%
Patient days		255,990			260,778			-1.8	%		285,494			265,733			7.4	%
Average daily census		2,782.5			2,834.5			-1.8	%		3,103.2			2,888.2			7.4	%
Occupancy-licensed beds		56.9	%		56.7	%		0.3	%		78.0	%		74.0	%		5.3	%
Admissions		57,488			57,795			-0.5	%		22,195			21,756			2.0	%
Length of stay		4.5			4.5			-1.3	%		12.9			12.2			5.3	%

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(1)	Does not include hospitals located in France

(2)	Does not include discontinued operations

(3)	Does not include discontinued operations, Corona, Methodist/Lakeland or Lakewood Ranch in current or prior years. Spring Valley is included in the current and prior year from October 1st through year end.

(4)	Stonington is excluded in both current and prior years from April 1 through year end and the four facilities purchased from Keystone are excluded in both years from May 1 through year end.

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UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

DECEMBER 31, 2004

 

AS REPORTED:

 

FOR THE TWELVE MONTHS ENDED

 

		ACUTE (1) (2)								%			BEHAVIORAL HEALTH								%
		12/31/04				12/31/03							12/31/04				12/31/03
Hospitals owned and leased			25				25			0.0	%			44				39			12.8	%
Average licensed beds			5,645				4,792			17.8	%			4,225				3,894			8.5	%
Patient days			1,150,882				1,032,348			11.5	%			1,234,152				1,067,200			15.6	%
Average daily census			3,144.5				2,828.4			11.2	%			3,372.0				2,923.8			15.3	%
Occupancy-licensed beds			55.7	%			59.0	%		-5.6	%			79.8	%			75.1	%		6.3	%
Admissions			251,655				227,932			10.4	%			94,743				87,688			8.0	%
Length of stay			4.6				4.5			1.0	%			13.0				12.2			7.0	%
Inpatient revenue		$	6,732,660			$	5,658,490			19.0	%		$	1,238,131			$	1,091,885			13.4	%
Outpatient revenue			2,544,891				1,985,040			28.2	%			177,360				156,115			13.6	%
Total patient revenue			9,277,551				7,643,530			21.4	%			1,415,491				1,248,000			13.4	%
Other revenue			35,604				37,757			-5.7	%			32,849				33,345			-1.5	%
Gross hospital revenue			9,313,155				7,681,287			21.2	%			1,448,340				1,281,345			13.0	%
Total deductions			6,415,436				5,181,737			23.8	%			749,568				668,941			12.1	%
Net hospital revenue		$	2,897,719			$	2,499,550			15.9	%		$	698,772			$	612,404			14.1	%

 

SAME FACILITY:

 

FOR THE TWELVE MONTHS ENDED

 

		ACUTE (1) (3)						%			BEHAVIORAL HEALTH (4)						%
		12/31/04			12/31/03						12/31/04			12/31/03
Hospitals owned and leased		25			25			0.0	%		39			39			0.0	%
Average licensed beds		4,837			4,792			0.9	%		3,947			3,894			1.4	%
Patient days		1,018,249			1,032,348			-1.4	%		1,138,297			1,067,200			6.7	%
Average daily census		2,782.1			2,828.6			-1.6	%		3,110.1			2,923.8			6.4	%
Occupancy-licensed beds		57.5	%		59.0	%		-2.6	%		78.8	%		75.1	%		4.9	%
Admissions		225,803			227,932			-0.9	%		92,850			87,688			5.9	%
Length of stay		4.5			4.5			-0.4	%		12.3			12.2			0.7	%

---

(1)	Does not include hospitals located in France

(2)	Does not include discontinued operations

(3)	Does not include discontinued operations, Corona, Methodist/Lakeland or Lakewood Ranch in current or prior years. Spring Valley is included in the current and prior year from October 1st through year end.

(4)	Stonington is excluded in both current and prior years from April 1 through year end and the four facilities purchased from Keystone are excluded in both years from May 1 through year end.