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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 28, 2006 (February 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 February 27, 2006, Universal Health Services, Inc. (the “Company”) issued its 2005 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

(d) Exhibits. 99.1 Universal Health Services, Inc. Press Release dated February 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: February 28, 2006

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Exhibit Index

 

Exhibit No.		Exhibit
99.1		Press release, dated February 27, 2006

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

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

UNIVERSAL HEALTH SERVICES, INC. REPORTS

2005 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, 2005. For the fourth quarter ended December 31, 2005, reported income from continuing operations was $9.0 million or $.17 per diluted share as compared to $34.9 million or $.58 per diluted share during the fourth quarter of 2004. Reported net income was $12.3 million or $.23 per diluted share during the fourth quarter of 2005 as compared to $37.2 million or $.61 per diluted share during the comparable prior year quarter. Net revenues increased 6% to $967 million during the fourth quarter of 2005 as compared to $911 million during the fourth quarter of 2004.

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

 

•

combined after-tax charges of $21.0 million or $.39 per diluted share resulting from expenses incurred in connection with damage sustained in Louisiana from Hurricane Katrina that resulted in the closure of our Methodist Hospital, Lakeland Medical Pavilion, Chalmette Medical Center and Virtue Street Pavilion during the third quarter;

 

•

an after-tax gain of $3.7 million or $.07 per diluted share resulting from the sale of land, and;

 

•

other combined net favorable after-tax adjustments of approximately $1.5 million or $.04 per diluted share which includes certain income tax benefits recognized in connection with the employee retention tax credit as provided in the “Gulf Opportunity Zone Act of 2005”.

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

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

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

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

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

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

 

•

combined after-tax charges of $99.0 million or $1.58 per diluted share resulting from expenses incurred in connection with damage sustained from Hurricane Katrina at our above-mentioned facilities located in Louisiana;

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•

after-tax Hurricane related insurance recoveries of $48.6 million or $.78 per diluted share reflecting the minimum level of commercial insurance proceeds due to us, substantially all of which have been received;

 

•

the combined favorable prior year after-tax effect of $5.2 million or $.08 per diluted share resulting from supplemental reimbursements received from certain states and contractual settlements (as previously disclosed in our earnings release for the nine-month period ended September 30, 2005);

 

•

an after-tax gain of $3.7 million or $.06 per diluted share resulting from the sale of land, and;

 

•

other combined net favorable after-tax adjustments of approximately $203,000 or $.01 per diluted share.

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

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

We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on February 28, 2006. The dial-in number is 1-877-648-7971. A digital recording of the conference call will be available two hours after the completion of the conference call on February 28, 2006 and will continue through midnight on March 7, 2006. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 5293421.

This call will also be available live over the internet at our web site at 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.

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This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in “Forward-Looking Statements and Risk Factors” on pages 18 and 19 of our Form 10-Q for the quarterly period ended September 30, 2005), may cause results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine our future results are beyond our capability to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management’s view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

We believe that operating income, operating margin, adjusted income from continuing operations, adjusted income from continuing operations per diluted share, adjusted net income, adjusted net income per diluted share, adjusted operating income and adjusted operating margin, which are non-GAAP financial measures (“GAAP” is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of items that are nonrecurring or non-operational in nature such as, gains on sales of assets and businesses, Hurricane related expenses and insurance recoveries, and other amounts reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this Report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2004. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.

(more)

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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,
		2005			2004			2005				2004
Net revenues		$	967,175		$	910,777		$	3,935,480			$	3,637,490
Operating charges:
Salaries, wages and benefits			415,821			375,227			1,625,996				1,490,241
Other operating expenses			226,127			225,265			921,118				862,870
Supplies expense			120,212			120,561			489,999				463,381
Provision for doubtful accounts			87,438			69,306			368,058				307,014
Depreciation and amortization			39,242			36,786			155,478				142,481
Lease and rental expense			15,347			15,502			60,790				60,907
Hurricane related expenses			36,133			—			165,028				—
Hurricane insurance recoveries			—			—			(81,709	)			—
			940,320			842,647			3,704,758				3,326,894
Income before interest expense, minority interests and income taxes			26,855			68,130			230,722				310,596
Interest expense, net			8,403			9,854			32,933				38,131
Minority interests in earnings of consolidated entities			5,786			1,883			25,645				16,188
Income before income taxes			12,666			56,393			172,144				256,277
Provision for income taxes			3,624			21,541			62,301				95,179
Income from continuing operations			9,042			34,852			109,843				161,098
Income from discontinued operations, net of income tax expense (a)			3,232			2,322			131,002				8,394
Net income		$	12,274		$	37,174		$	240,845			$	169,492
Basic earnings per share: (b)
From continuing operations		$	0.17		$	0.60		$	1.98			$	2.79
From discontinued operations			0.06			0.04			2.35				0.15
Total basic earnings per share		$	0.23		$	0.64		$	4.33			$	2.94
Diluted earnings per share: (b)
From continuing operations		$	0.17		$	0.58		$	1.91			$	2.62
From discontinued operations			0.06			0.03			2.09				0.13
Total diluted earnings per share		$	0.23		$	0.61		$	4.00			$	2.75

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Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

 

		Three months ended December 31,								Twelve months ended December 31,
		2005				2004				2005				2004
(a) Calculation of income from discontinued operations, net of income tax:
Income from operations		$	747			$	3,974			$	3,355			$	8,680
Gains on divestitures			4,338				—				190,558				5,382
Income from discontinued operations, pre-tax			5,085				3,974				193,913				14,062
Income tax provision			(1,853	)			(1,652	)			(62,911	)			(5,668	)
Income from discontinued operations, net of income tax expense		$	3,232			$	2,322			$	131,002			$	8,394
(b) Earnings per share calculation:
Basic:
Income from continuing operations		$	9,042			$	34,852			$	109,843			$	161,098
Less: Dividends on unvested restricted stock, net of taxes			(23	)			(27	)			(104	)			(111	)
Income from continuing operations - basic		$	9,019			$	34,825			$	109,739			$	160,987
Income from discontinued operations			3,232				2,322				131,002				8,394
Net income - basic		$	12,251			$	37,147			$	240,741			$	169,381
Weighted average number of common shares - basic			54,002				57,635				55,658				57,653
Basic earnings per share:
From continuing operations		$	0.17			$	0.60			$	1.98			$	2.79
From discontinued operations			0.06				0.04				2.35				0.15
Total basic earnings per share		$	0.23			$	0.64			$	4.33			$	2.94
Diluted:
Income from continuing operations		$	9,042			$	34,852			$	109,843			$	161,098
Less: Dividends on unvested restricted stock, net of taxes			(23	)			(27	)			(104	)			(111	)
Add: Debenture interest, net of taxes			—				2,334				9,628				9,240
Income from continuing operations - diluted		$	9,019			$	37,159			$	119,367			$	170,227
Income from discontinued operations			3,232				2,322				131,002				8,394
Net income - diluted		$	12,251			$	39,481			$	250,369			$	178,621
Weighted average number of common shares			54,002				57,635				55,658				57,653
Add: Shares for conversion of convertible debentures			—				6,577				6,577				6,577
Other share equivalents			222				280				412				635
Weighted average number of common shares and equiv. - diluted			54,224				64,492				62,647				64,865
Diluted earnings per share:
From continuing operations		$	0.17			$	0.58			$	1.91			$	2.62
From discontinued operations			0.06				0.03				2.09				0.13
Total diluted earnings per share		$	0.23			$	0.61			$	4.00			$	2.75

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Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

		December 31, 2005			December 31, 2004
Assets:
Cash and cash equivalents		$	7,963		$	33,125
Accounts receivable, net			499,726			552,538
Other current assets			100,609			90,392
Property, plant and equipment, net			1,422,053			1,448,066
Other assets			820,758			765,852
Assets held for sale			—			132,870
Total Assets		$	2,851,109		$	3,022,843
Liabilities and Stockholders’ Equity:
Current portion of long-term debt		$	5,191		$	16,968
Liabilities held for sale			—			11,116
Other current liabilities			511,379			441,572
Other noncurrent liabilities			289,195			243,617
Long-term debt			637,654			852,229
Deferred income taxes			42,713			50,212
Minority interest			159,879			186,543
Stockholders’ equity			1,205,098			1,220,586
Total Liabilities and Stockholders’ Equity		$	2,851,109		$	3,022,843

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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, 2005 and 2004

(in thousands, except per share amounts)

(unaudited)

 

		Three months ended December 31, 2005								Three months ended December 31, 2004
Net revenues		$	967,175				100.0	%		$	910,777				100.0	%
Operating charges:
Salaries, wages and benefits			415,821				43.0	%			375,227				41.2	%
Other operating expenses			226,127				23.4	%			225,265				24.7	%
Supplies expense			120,212				12.4	%			120,561				13.2	%
Provision for doubtful accounts			87,438				9.0	%			69,306				7.6	%
			849,598				87.8	%			790,359				86.8	%
Operating income/margin			117,577				12.2	%			120,418				13.2	%
Lease and rental expense			15,347								15,502
Minority interests in earnings of consolidated entities			5,786								1,883
Earnings before depreciation and amortization, interest expense, and income taxes (“EBITDA”)			96,444								103,033
Hurricane related expenses			36,133								—
Depreciation and amortization			39,242								36,786
Interest expense, net			8,403								9,854
Income before income taxes			12,666								56,393
Provision for income taxes			3,624								21,541
Income from continuing operations			9,042								34,852
Income from discontinued operations, net of income taxes			3,232								2,322
Net income		$	12,274							$	37,174
		Three months ended December 31, 2005								Three months ended December 31, 2004
		Amount				Per Diluted Share				Amount				Per Diluted Share
Calculation of Adjusted Income from Continuing Operations
Income from continuing operations		$	9,042			$	0.17			$	34,852			$	0.58
Add: Hurricane related expenses, net of minority interests and income taxes			20,978				0.39				—				—
Less: Gain on sale of land, net of income taxes			(3,711	)			(0.07	)			—				—
Less: Other combined net favorable adjustments			(1,531	)			(0.04	)			—				—
Less: After-tax reversal of previously recorded stock grant amortization expense			—				—				(7,394	)			(0.12	)
Adjusted income from continuing operations		$	24,778			$	0.45			$	27,458			$	0.46

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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, 2005 and 2004

(in thousands, except per share amounts)

(unaudited)

 

		Twelve months ended December 31, 2005								Twelve months ended December 31, 2004
Net revenues		$	3,935,480				100.0	%		$	3,637,490				100.0	%
Operating charges:
Salaries, wages and benefits			1,625,996				41.3	%			1,490,241				41.0	%
Other operating expenses			921,118				23.4	%			862,870				23.7	%
Supplies expense			489,999				12.5	%			463,381				12.7	%
Provision for doubtful accounts			368,058				9.4	%			307,014				8.4	%
			3,405,171				86.5	%			3,123,506				85.9	%
Operating income/margin			530,309				13.5	%			513,984				14.1	%
Lease and rental expense			60,790								60,907
Minority interests in earnings of consolidated entities			25,645								16,188
Earnings before depreciation and amortization, interest expense, and income taxes (“EBITDA”)			443,874								436,889
Hurricane related expenses			165,028								—
Hurricane insurance recoveries			(81,709	)							—
Depreciation and amortization			155,478								142,481
Interest expense, net			32,933								38,131
Income before income taxes			172,144								256,277
Provision for income taxes			62,301								95,179
Income from continuing operations			109,843								161,098
Income from discontinued operations, net of income taxes			131,002								8,394
Net income		$	240,845							$	169,492
		Twelve months ended December 31, 2005								Twelve months ended December 31, 2004
		Amount				Per Diluted Share				Amount				Per Diluted Share
Calculation of Adjusted Income from Continuing Operations
Income from continuing operations		$	109,843			$	1.91			$	161,098			$	2.62
Add: Hurricane related expenses, net of minority interests and income taxes			99,042				1.58				1,474				0.02
Less: Hurricane related insurance recoveries, net of minority interests and income taxes			(48,663	)			(0.78	)			—				—
Less: Prior period effect of supplemental reimbursements received from certain states and contractual settlements			(5,225	)			(0.08	)			—				—
Less: Gain on sale of land, net of income taxes			(3,711	)			(0.06	)			—				—
Less: Other combined net favorable adjustments			(203	)			(0.01	)			—				—
Less: After-tax reversal of previously recorded stock grant amortization expense			—				—				(7,394	)			(0.11	)
Less: DSH revenue attributable to prior year, net of income taxes			—				—				(1,748	)			(0.02	)
Adjusted income from continuing operations		$	151,083			$	2.56			$	153,430			$	2.51

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Universal Health Services, Inc.

Supplemental Statistical Information

(un-audited)

Same Facility:

 

		% Change Quarter Ended 12/31/2005			% Change 12 months ended 12/31/2005
Acute Care Hospitals
Revenues		8.6	%		7.2	%
Adjusted Admissions		3.7	%		2.9	%
Adjusted Patient Days		2.1	%		1.8	%
Revenue Per Adjusted Admission		4.8	%		4.2	%
Revenue Per Adjusted Patient Day		6.4	%		5.3	%
Behavioral Health Hospitals
Revenues		9.4	%		8.6	%
Adjusted Admissions		6.8	%		5.2	%
Adjusted Patient Days		2.4	%		4.2	%
Revenue Per Adjusted Admission		2.5	%		3.2	%
Revenue Per Adjusted Patient Day		6.9	%		4.3	%

UHS Consolidated

 

		Fourth Quarter Ended								Twelve months Ended
		12/31/2005				12/31/2004				12/31/2005				12/31/2004
Revenues		$	967,175			$	910,777			$	3,935,480			$	3,637,490
EBITDA (1)			96,444				103,033				443,874				436,889
EBITDA Margin (1)			10.0	%			11.3	%			11.3	%			12.0	%
Cash Flow From Operations			68,983				79,366				425,426				392,880
Days Sales Outstanding			48				51				46				51
Capital Expenditures			70,069				53,431				241,412				230,760
Debt (net of cash)							—				634,882				836,072
Shareholders Equity							—				1,205,098				1,220,586
Debt / Total Capitalization							—				34.5	%			40.7	%
Debt / EBITDA (2)							—				1.43				1.78
Debt / Cash From Operations (2)							—				1.49				2.12
Acute Care EBITDAR Margin (3)			12.1	%			12.5	%			13.8	%			14.7	%
Behavioral Health EBITDAR Margin (3)			18.7	%			19.0	%			22.8	%			22.3	%

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(1)	Before hurricane related expenses and recoveries and net of minority interest

(2)	Latest 4 quarters

(3)	Before Corporate overhead allocation and minority interest

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UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

DECEMBER 31, 2005

AS REPORTED:

 

		FOR THE TWELVE MONTHS ENDED
		ACUTE (1) (2)								%			BEHAVIORAL HEALTH								%
		12/31/05				12/31/04							12/31/05				12/31/04
Hospitals owned and leased			21				24			-12.5	%			72				44			63.6	%
Average licensed beds			5,525				5,645			-2.1	%			4,849				4,225			14.8	%
Patient days			1,351,978				1,150,882			17.5	%			1,455,479				1,234,152			17.9	%
Average daily census			3,704.0				3,144.5			17.8	%			3,987.6				3,372.0			18.3	%
Occupancy-licensed beds			67.0	%			55.7	%		20.4	%			82.2	%			79.8	%		3.0	%
Admissions			298,664				251,655			18.7	%			102,731				94,743			8.4	%
Length of stay			4.5				4.6			-1.0	%			14.2				13.0			8.8	%
Inpatient revenue		$	7,246,246			$	6,732,660			7.6	%		$	1,397,256			$	1,238,131			12.9	%
Outpatient revenue			2,778,036				2,544,891			9.2	%			192,824				177,360			8.7	%
Total patient revenue			10,024,282				9,277,551			8.0	%			1,590,080				1,415,491			12.3	%
Other revenue			52,485				35,604			47.4	%			31,897				32,849			-2.9	%
Gross hospital revenue			10,076,767				9,313,155			8.2	%			1,621,977				1,448,340			12.0	%
Total deductions			7,002,638				6,415,436			9.2	%			804,537				749,568			7.3	%
Net hospital revenue		$	3,074,129			$	2,897,719			6.1	%		$	817,440			$	698,772			17.0	%
SAME FACILITY:
		FOR THE TWELVE MONTHS ENDED
		ACUTE (1) (3)								%			BEHAVIORAL HEALTH (4)								%
		12/31/05				12/31/04							12/31/05				12/31/04
Hospitals owned and leased			21				21			0.0	%			44				44			0.0	%
Average licensed beds			5,287				5,458			-3.1	%			4,332				4,222			2.6	%
Patient days			1,131,135				1,116,154			1.3	%			1,290,020				1,234,115			4.5	%
Average daily census			3,099.0				3,049.6			1.6	%			3,534.3				3,371.9			4.8	%
Occupancy-licensed beds			58.6	%			55.9	%		4.9	%			81.6	%			79.9	%		2.2	%
Admissions			252,332				245,643			2.7	%			100,299				94,743			5.9	%
Length of stay			4.5				4.5			-1.3	%			12.9				13.0			-1.3	%

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(1)	Does not include hospitals located in France

(2)	Does not include Discontinued Operations. Acute care hospitals located in New Orleans are excluded from September 1, 2005 through year-to date.

(3)

All Discontinued Operations are excluded in current and prior years. Lakeland is included in both current and prior years for January only. All three acute care hospitals located in New Orleans are excluded in both current and prior years from September 1st through year to date. Lakewood Ranch is included in both current and prior years from September 1 through year to date.

(4)

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

---

UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

DECEMBER 31, 2005

AS REPORTED:

 

 

		FOR THE THREE MONTHS ENDED
		ACUTE (1) (2)								%			BEHAVIORAL HEALTH								%
		12/31/05				12/31/04							12/31/05				12/31/04
Hospitals owned and leased			21				24			-12.5	%			72				44			63.6	%
Average licensed beds			5,012				5,602			-10.5	%			5,996				4,386			36.7	%
Patient days			261,720				284,920			-8.1	%			450,566				320,753			40.5	%
Average daily census			2,844.8				3,097.0			-8.1	%			4,897.5				3,486.4			40.5	%
Occupancy-licensed beds			56.8	%			55.3	%		2.7	%			81.7	%			79.5	%		2.8	%
Admissions			60,628				63,218			-4.1	%			25,979				22,896			13.5	%
Length of stay			4.3				4.5			-4.2	%			17.3				14.0			23.8	%
Inpatient revenue		$	1,707,385			$	1,692,754			0.9	%		$	389,872			$	318,264			22.5	%
Outpatient revenue			661,321				648,448			2.0	%			47,732				45,538			4.8	%
Total patient revenue			2,368,706				2,341,202			1.2	%			437,604				363,802			20.3	%
Other revenue			12,635				8,274			52.7	%			8,096				7,482			8.2	%
Gross hospital revenue			2,381,341				2,349,476			1.4	%			445,700				371,284			20.0	%
Total deductions			1,658,437				1,629,805			1.8	%			212,278				192,938			10.0	%
Net hospital revenue		$	722,904			$	719,671			0.4	%		$	233,422			$	178,346			30.9	%
SAME FACILITY:
		FOR THE THREE MONTHS ENDED
		ACUTE (1) (3)								%			BEHAVIORAL HEALTH (4)								%
		12/31/05				12/31/04							12/31/05				12/31/04
Hospitals owned and leased			21				21			0.0	%			44				44			0.0	%
Average licensed beds			5,012				5,047			-0.7	%			4,492				4,386			2.4	%
Patient days			261,731				258,014			1.4	%			329,590				320,740			2.8	%
Average daily census			2,844.9				2,804.5			1.4	%			3,582.5				3,486.3			2.8	%
Occupancy-licensed beds			56.8	%			55.6	%		2.1	%			79.8	%			79.5	%		0.3	%
Admissions			60,628				58,609			3.4	%			24,584				22,896			7.4	%
Length of stay			4.3				4.4			-1.9	%			13.4				14.0			-4.3	%

---

(1)	Does not include hospitals located in France

(2)	Does not include Discontinued Operations. Acute care hospitals located in New Orleans are excluded from September 1, 2005 through year-to date.

(3)

All Discontinued Operations are excluded in current and prior years. Lakeland is included in both current and prior years for January only. All three acute care hospitals located in New Orleans are excluded in both current and prior years from September 1st through year to date. Lakewood Ranch is included in both current and prior years from September 1 through year to date.

(4)

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