---

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

---

FORM 8-K

 

---

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 27, 2007 (July 26, 2007)

 

---

UNIVERSAL HEALTH SERVICES, INC.

(Exact name of registrant as specified in its charter)

 

---

 

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)

 

---

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))

 

---

---

Item 2.02

Results of Operations and Financial Condition

On July 26, 2007, Universal Health Services, Inc. issued the press release attached hereto as Exhibit 99.1.

 

Item 9.01

Financial Statements and Exhibits

(d) Exhibits. 99.1 Universal Health Services, Inc., press release, dated July 26, 2007.

---

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 27, 2007

---

Exhibit Index

 

Exhibit No.		Exhibit
99.1		Universal Health Services, Inc., press release, dated July 26, 2007

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

CONTACT:		Steve Filton
		Chief Financial Officer		July 26, 2007
		610-768-3300

UNIVERSAL HEALTH SERVICES, INC. REPORTS

2007 SECOND QUARTER EARNINGS

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income was $52.1 million, or $.97 per diluted share, during the second quarter of 2007 as compared to $60.3 million, or $1.04 per diluted share, during the comparable prior year quarter. Reported income from continuing operations was $52.0 million, or $.97 per diluted share, during the second quarter of 2007 as compared to $60.9 million, or $1.05 per diluted share, during the second quarter of 2006.

For the six months ended June 30, 2007, reported net income was $101.6 million, or $1.89 per diluted share, as compared to $111.3 million, or $1.93 per diluted share, during the comparable six-month period in the prior year. Reported income from continuing operations was $101.6 million, or $1.89 per diluted share, during the first six months of 2007 as compared to $111.4 million, or $1.93 per diluted share, during the comparable six-month period of the prior year.

After adjusting for the items mentioned below, and/or as indicated on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information (“Supplemental Schedule”), our adjusted income from continuing operations was $42.6 million, or $.79 per diluted share, during the second quarter of 2007 as compared to $44.5 million, or $.78 per diluted share, during the comparable prior year quarter. During the six months ended June 30, 2007, our adjusted income from continuing operations was $90.6 million, or $1.69 per diluted share, as compared to $86.0 million, or $1.51 per diluted share, during the comparable six-month period of the prior year.

As indicated on the Supplemental Schedules, included in our income from continuing operations and net income during the three and six-month periods ended June 30, 2007, was $10.0 million, or $.19 per diluted share, representing the prior year impact of a favorable after-tax adjustment to reduce our professional and general liability self-insurance reserves based upon the results of a third-party actuarial analysis. Included in our income from continuing operations and net income during the three-month period ended June 30, 2006 was: (i) $12.8 million, or $.21 per diluted share, of after-tax income resulting from hurricane insurance recoveries, net of hurricane related expenses, and; (ii) $3.6 million, or $.06 per diluted share, of after-tax income resulting from the settlement of prior period cost reports. Included in our income from continuing operations and net income during the six month-period ended June 30, 2006 was: (i) $21.8 million, or $.36 per diluted share, of after-tax income resulting from hurricane insurance recoveries, net of hurricane related expenses, and; (ii) $3.6 million, or $.06 per diluted share, of after-tax income resulting from the settlement of prior period cost reports.

---

Net revenues increased 13% to $1.18 billion during the second quarter of 2007 as compared to $1.05 billion during the second quarter of 2006. Net revenues increased 14% to $2.38 billion during the first six months of 2007 as compared to $2.08 billion during the comparable six-month period of the prior year. Our consolidated operating margin, as calculated on the attached Supplemental Schedules, was 14.4% and 14.5% during the three-month periods ended June 30, 2007 and 2006, respectively, and 14.2% and 14.0% during the six-month periods ended June 30, 2007 and 2006, respectively.

At our acute care hospitals owned during both periods (“same facility basis”), inpatient admissions increased 1.9% and patient days increased 2.3% during the second quarter of 2007 as compared to the second quarter of 2006. On a same facility basis, net revenues at our acute care facilities increased 6% during the second quarter of 2007 as compared to the comparable prior year quarter. Net revenue per adjusted admission at these facilities increased 1.7% during the second quarter of 2007 over the comparable prior year quarter. The operating margin at our acute care hospitals owned during both periods decreased to 13.0% during the second quarter of 2007 as compared to 13.5% during the second quarter of 2006.

At our behavioral health facilities, on a same facility basis, inpatient admissions increased 3.5% and patient days increased 3.6% during the second quarter of 2007 as compared to the second quarter of 2006. On a same facility basis, net revenues at our behavioral health facilities increased 7% during the second quarter of 2007 as compared to the comparable prior year quarter. Net revenue per adjusted admission at these facilities increased 3.3% during the second quarter of 2007 over the comparable prior year quarter. The operating margin at our behavioral health facilities owned during both periods increased to 25.5% during the second quarter of 2007 as compared to 25.2% during the second quarter of 2006.

At our acute care hospitals, on a same facility basis, inpatient admissions increased 3.4% and patient days increased 3.5% during the six months ended June 30, 2007 as compared to the comparable prior year period. Net revenues at these facilities increased 9% during the first six months of 2007 as compared to the comparable prior year period. Net revenue per adjusted admission at these facilities increased 3.7% during the six months ended June 30, 2007 over the comparable prior year period. The operating margin at our acute care hospitals owned during both periods increased to 14.3% during the first six months of 2007 as compared to 14.1% during the comparable prior year period.

At our behavioral health facilities, on a same facility basis, inpatient admissions increased 3.3% and patient days increased 3.5% during the six months ended June 30, 2007 as compared to the comparable prior year period. On a same facility basis, net revenues at our behavioral health facilities increased 6% during the six months ended June 30, 2007 as compared to the comparable prior year

---

period. Net revenue per adjusted admission at these facilities increased 2.5% during the first six months of 2007 over the comparable prior year period. The operating margin at our behavioral health facilities owned during both periods increased to 24.4% during the first six months of 2007 as compared to 24.3% during the comparable prior year period.

Effective July 1, 2006, the pharmacy services for our acute care facilities were brought in-house from an outsourced vendor. As a result of this change, we experienced an increase in our supplies expense and salaries, wages and benefits expense and a decrease in our other operating expenses during the three and six months ended June 30, 2007, as compared to the comparable prior year periods. The transition of our pharmacy services favorably impacted our pre-tax income by approximately $2 million and $4 million during the three and six-month periods ended June 30, 2007.

We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on July 27, 2007. 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 27, 2007 and will continue through midnight on August 10, 2007. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 6469379. 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 Item 1A-Risk Factors and in Item 7-Forward-Looking Statements and Risk Factors in our Form 10-K for the year ended December 31, 2006), 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 and earnings before interest, taxes, depreciation and amortization (“EBITDA”), 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 and other amounts that may be 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-Q for the quarter ended March 31, 2007 and our Report on Form 10-K for the year ended December 31, 2006. 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)

---

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,
		2007			2006				2007				2006
Net revenues		$	1,178,976		$	1,047,673			$	2,376,577			$	2,081,962
Operating charges:
Salaries, wages and benefits			498,579			434,756				1,009,572				876,988
Other operating expenses			238,093			248,956				483,445				497,057
Supplies expense			169,246			124,814				344,604				253,327
Provision for doubtful accounts			103,039			87,182				202,132				162,189
Depreciation and amortization			45,406			40,369				88,869				79,399
Lease and rental expense			16,605			15,831				32,781				32,063
Hurricane related expenses, net			1,058			3,356				625				10,260
Hurricane insurance recoveries			—			(3,356	)			—				(10,260	)
			1,072,026			951,908				2,162,028				1,901,023
Income before interest expense, hurricane insurance recoveries in excess of expenses, minority interests and income taxes			106,950			95,765				214,549				180,939
Interest expense, net			13,040			8,697				25,762				17,222
Hurricane insurance recoveries in excess of expenses			—			(21,644	)			—				(37,031	)
Minority interests in earnings of consolidated entities			8,675			11,492				22,867				22,669
Income before income taxes			85,235			97,220				165,920				178,079
Provision for income taxes			33,193			36,349				64,306				66,716
Income from continuing operations			52,042			60,871				101,614				111,363
Income (loss) from discontinued operations, net of income tax expense/(benefit) (a)			29			(612	)			(35	)			(20	)
Net income		$	52,071		$	60,259			$	101,579			$	111,343
Basic earnings (loss) per share: (b)
From continuing operations		$	0.97		$	1.13			$	1.90			$	2.07
From discontinued operations			0.00			(0.01	)			0.00				0.00
Total basic earnings per share		$	0.97		$	1.12			$	1.90			$	2.07
Diluted earnings (loss) per share: (b)
From continuing operations		$	0.97		$	1.05			$	1.89			$	1.93
From discontinued operations			0.00			(0.01	)			0.00				0.00
Total diluted earnings per share		$	0.97		$	1.04			$	1.89			$	1.93

---

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

 

		Three months								Six months
		ended June 30,								ended June 30,
		2007				2006				2007				2006
(a) Calculation of income from discontinued operations, net of income tax:
Income (loss) from operations		$	46			$	(972	)		$	(56	)		$	(32	)
Income tax (provision) benefit			(17	)			360				21				12
Income (loss) from discontinued operations, net of taxes		$	29			$	(612	)		$	(35	)		$	(20	)
(b) Earnings per share calculation:
Basic:
Income from continuing operations		$	52,042			$	60,871			$	101,614			$	111,363
Less: Dividends on unvested restricted stock, net of taxes			(19	)			(21	)			(44	)			(43	)
Income from continuing operations—basic		$	52,023			$	60,850			$	101,570			$	111,320
Income (loss) from discontinued operations			29				(612	)			(35	)			(20	)
Net income - basic		$	52,052			$	60,238			$	101,535			$	111,300
Weighted average number of common shares - basic			53,499				53,730				53,496				53,749
Basic earnings (loss) per share:
From continuing operations		$	0.97			$	1.13			$	1.90			$	2.07
From discontinued operations			0.00				(0.01	)			0.00				0.00
Total basic earnings per share		$	0.97			$	1.12			$	1.90			$	2.07
Diluted:
Income from continuing operations		$	52,042			$	60,871			$	101,614			$	111,363
Less: Dividends on unvested restricted stock, net of taxes			(19	)			(21	)			(44	)			(43	)
Add: Debenture interest, net of taxes			—				2,445				—				4,902
Income from continuing operations - diluted		$	52,023			$	63,295			$	101,570			$	116,222
Income (loss) from discontinued operations			29				(612	)			(35	)			(20	)
Net income - diluted		$	52,052			$	62,683			$	101,535			$	116,202
Weighted average number of common shares			53,499				53,730				53,496				53,749
Add: Shares for conversion of convertible debentures			—				5,999				—				6,286
Other share equivalents			229				258				211				237
Weighted average number of common shares and equiv. - diluted			53,728				59,987				53,707				60,272
Diluted earnings (loss) per share:
From continuing operations		$	0.97			$	1.05			$	1.89			$	1.93
From discontinued operations			0.00				(0.01	)			0.00				0.00
Total diluted earnings per share		$	0.97			$	1.04			$	1.89			$	1.93

---

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information (“Supplemental Schedule”)

For the Three Months Ended June 30, 2007 and 2006

(in thousands, except per share amounts)

(unaudited)

 

		Three months ended						Three months ended
		June 30, 2007						June 30, 2006
Net revenues		$	1,178,976		100.0	%		$	1,047,673			100.0	%
Operating charges:
Salaries, wages and benefits			498,579		42.3	%			434,756			41.5	%
Other operating expenses			238,093		20.2	%			248,956			23.8	%
Supplies expense			169,246		14.4	%			124,814			11.9	%
Provision for doubtful accounts			103,039		8.7	%			87,182			8.3	%
			1,008,957		85.6	%			895,708			85.5	%
Operating income/margin			170,019		14.4	%			151,965			14.5	%
Lease and rental expense			16,605						15,831
Minority interests in earnings of consolidated entities			8,675						11,492
Earnings before hurricane related expenses, hurricane insurance recoveries, depreciation and amortization, interest expense, and income taxes (“EBITDA”)			144,739						124,642
Hurricane related expenses, net of insurance recoveries			1,058						(21,644	)
Depreciation and amortization			45,406						40,369
Interest expense, net			13,040						8,697
Income before income taxes			85,235						97,220
Provision for income taxes			33,193						36,349
Income from continuing operations			52,042						60,871
Income (loss) from discontinued operations, net of income taxes			29						(612	)
Net income		$	52,071					$	60,259

 

		Three months ended								Three months ended
		June 30, 2007								June 30, 2006
						Per								Per
		Amount				Diluted Share				Amount				Diluted Share
Calculation of Adjusted Income from Continuing Operations
Income from continuing operations		$	52,042			$	0.97			$	60,871			$	1.05
Plus/minus adjustments:
Hurricane related expenses, net of recoveries, minority interests and income taxes			652				0.01				(12,817	)			(0.21	)
Reduction of reserve for professional and general liability self-insured claims, net of minority interests and income taxes			(10,045	)			(0.19	)
Favorable effect of prior period cost report settlements, net of income taxes											(3,593	)			(0.06	)
Subtotal after-tax adjustments to income from continuing operations			(9,393	)			(0.18	)			(16,410	)			(0.27	)
Adjusted income from continuing operations		$	42,649			$	0.79			$	44,461			$	0.78
Calculation of Adjusted Net Income
Net income		$	52,071			$	0.97			$	60,259			$	1.04
After-tax adjustments to income from continuing operations, as indicated above			(9,393	)			(0.18	)			(16,410	)			(0.27	)
Adjusted net income		$	42,678			$	0.79			$	43,849			$	0.77

---

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information (“Supplemental Schedule”)

For the Six Months Ended June 30, 2007 and 2006

(in thousands, except per share amounts)

(unaudited)

 

		Six months ended							Six months ended
		June 30, 2007							June 30, 2006
Net revenues		$	2,376,577			100.0	%		$	2,081,962			100.0	%
Operating charges:
Salaries, wages and benefits			1,009,572			42.5	%			876,988			42.1	%
Other operating expenses			483,445			20.3	%			497,057			23.9	%
Supplies expense			344,604			14.5	%			253,327			12.2	%
Provision for doubtful accounts			202,132			8.5	%			162,189			7.8	%
			2,039,753			85.8	%			1,789,561			86.0	%
Operating income/margin			336,824			14.2	%			292,401			14.0	%
Lease and rental expense			32,781							32,063
Minority interests in earnings of consolidated entities			22,867							22,669
Earnings before hurricane related expenses, hurricane insurance recoveries, depreciation and amortization, interest expense, and income taxes (“EBITDA”)			281,176							237,669
Hurricane insurance recoveries in excess of expenses			625							(37,031	)
Depreciation and amortization			88,869							79,399
Interest expense, net			25,762							17,222
Income before income taxes			165,920							178,079
Provision for income taxes			64,306							66,716
Income from continuing operations			101,614							111,363
(Loss) income from discontinued operations, net of income taxes			(35	)						(20	)
Net income		$	101,579						$	111,343

 

		Six months ended								Six months ended
		June 30, 2007								June 30, 2006
						Per								Per
		Amount				Diluted Share				Amount				Diluted Share
Calculation of Adjusted Income from Continuing Operations
Income from continuing operations		$	101,614			$	1.89			$	111,363			$	1.93
Plus/minus adjustments:
Hurricane related expenses, net of recoveries, minority interests and income taxes			386				0.01				(21,798	)			(0.36	)
Gain on sale of real property, net of income taxes			(1,356	)			(0.02	)
Reduction of reserve for professional and general liability self-insured claims, net of minority interests and income taxes			(10,045	)			(0.19	)			—				—
Favorable effect of prior period cost report settlements, net of income taxes			—				—				(3,593	)			(0.06	)
Subtotal after-tax adjustments to income from continuing operations			(11,015	)			(0.20	)			(25,391	)			(0.42	)
Adjusted income from continuing operations		$	90,599			$	1.69			$	85,972			$	1.51
Calculation of Adjusted Net Income
Net income		$	101,579			$	1.89			$	111,343			$	1.93
After-tax adjustments to income from continuing operations, as indicated above			(11,015	)			(0.20	)			(25,391	)			(0.42	)
Adjusted net income		$	90,564			$	1.69			$	85,952			$	1.51

---

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

		June 30,			December 31,
		2007			2006
Assets:
Cash and cash equivalents		$	12,663		$	14,939
Accounts receivable, net			647,852			595,009
Other current assets			141,268			118,558
Property, plant and equipment, net			1,840,847			1,685,085
Other assets			890,309			863,451
Total Assets		$	3,532,939		$	3,277,042
Liabilities and Stockholders’ Equity:
Current portion of long-term debt		$	3,014		$	1,938
Other current liabilities			492,384			500,513
Other noncurrent liabilities			342,872			340,815
Long-term debt			951,060			821,363
Deferred income taxes			29,062			35,888
Minority interest			199,773			174,061
Stockholders’ equity			1,514,774			1,402,464
Total Liabilities and Stockholders’ Equity		$	3,532,939		$	3,277,042

---

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

		Six months
		ended June 30,
		2007				2006
Cash Flows from Operating Activities:
Net income		$	101,579			$	111,343
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization			88,888				79,399
Accretion of discount on convertible debentures			—				6,364
Gain on sale of assets			(2,200	)			—
Hurricane insurance recoveries			—				(47,291	)
Changes in assets & liabilities, net of effects from acquisitions and dispositions:
Accounts receivable			(36,291	)			(46,618	)
Accrued interest			9,260				(488	)
Accrued and deferred income taxes			(7,368	)			57,195
Other working capital accounts			(125	)			(6,702	)
Other assets and deferred charges			(3,783	)			(856	)
Other			(1,240	)			7,884
Minority interest in earnings of consolidated entities, net of distributions			9,260				10,734
Accrued insurance expense, net of commercial premiums paid			23,395				41,173
Payments made in settlement of self-insurance claims			(22,399	)			(23,065	)
Net cash provided by operating activities			158,976				189,072
Cash Flows from Investing Activities:
Property and equipment additions, net of disposals			(184,587	)			(152,673	)
Proceeds received from sale of assets			5,268				—
Acquisition of assets and businesses			(81,195	)			(14,250	)
Hurricane insurance recoveries received			—				53,000
Purchase of minority ownership interest in majority owned business			(14,762	)			—
Net cash used in investing activities			(275,276	)			(113,923	)
Cash Flows from Financing Activities:
Additional borrowings			116,271				248,645
Reduction of long-term debt			—				(140,824	)
Repurchase of common shares			(3,341	)			(71,008	)
Dividends paid			(8,621	)			(8,620	)
Issuance of common stock			1,444				2,638
Financing costs			—				(1,625	)
Net cash received for termination of derivatives			—				3,393
Capital contributions from minority member			8,271				8,639
Net cash provided by financing activities			114,024				41,238
(Decrease) Increase in cash and cash equivalents			(2,276	)			116,387
Cash and cash equivalents, beginning of period			14,939				7,963
Cash and cash equivalents, end of period		$	12,663			$	124,350
Supplemental Disclosures of Cash Flow Information:
Interest paid		$	20,216			$	18,019
Income taxes paid, net of refunds		$	71,410			$	9,559

---

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)

 

		% Change			% Change
		Quarter Ended			6 months ended
Same Facility:		6/30/2007			6/30/2007
Acute Care Hospitals
Revenues		5.8	%		8.6	%
Adjusted Admissions		4.0	%		4.7	%
Adjusted Patient Days		4.4	%		4.8	%
Revenue Per Adjusted Admission		1.7	%		3.7	%
Revenue Per Adjusted Patient Day		1.3	%		3.6	%
Behavioral Health Hospitals
Revenues		6.5	%		6.1	%
Adjusted Admissions		3.1	%		3.4	%
Adjusted Patient Days		3.3	%		3.7	%
Revenue Per Adjusted Admission		3.3	%		2.5	%
Revenue Per Adjusted Patient Day		3.1	%		2.3	%

 

		Second Quarter Ended								Six months Ended
UHS Consolidated		6/30/2007				6/30/2006				6/30/2007				6/30/2006
Revenues		$	1,178,976			$	1,047,673			$	2,376,577			$	2,081,962
EBITDA (1)			144,739				124,642				281,176				237,669
EBITDA Margin (1)			12.3	%			11.9	%			11.8	%			11.4	%
Cash Flow From Operations			60,000				78,732				158,976				189,072
Days Sales Outstanding			50				47				49				47
Capital Expenditures			85,238				69,485				184,587				152,673
Debt											954,074				468,930
Shareholders Equity											1,514,774				1,530,968
Debt / Total Capitalization											38.6	%			23.4	%
Debt / Cash From Operations (2)											6.86				1.22
Acute Care EBITDAR Margin (3) (4)			14.7	%			14.2	%			14.9	%			14.4	%
Behavioral Health EBITDAR Margin (3) (4)			25.2	%			25.0	%			23.8	%			24.1	%

---

(1)	Net of Minority Interest

(2)	Latest 4 quarters

(3)	Before Corporate overhead allocation and minority interest

(4)	Excluding discontinued operations

---

UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE THREE MONTHS ENDED

JUNE 30, 2007

AS REPORTED:

 

		ACUTE (1)											BEHAVIORAL HEALTH
		06/30/07				06/30/06				% change			06/30/07				06/30/06				% change
Hospitals owned and leased			22				21			4.8	%			82				75			9.3	%
Average licensed beds			5,498				5,014			9.7	%			7,258				6,439			12.7	%
Patient days			286,702				267,945			7.0	%			501,482				466,554			7.5	%
Average daily census			3,150.6				2,944.5			7.0	%			5,510.8				5,127.0			7.5	%
Occupancy-licensed beds			57.3	%			58.7	%		-2.4	%			75.9	%			79.6	%		-4.6	%
Admissions			64,139				60,551			5.9	%			29,707				27,974			6.2	%
Length of stay			4.5				4.4			1.0	%			16.9				16.7			1.2	%
Inpatient revenue		$	2,092,069			$	1,853,383			12.9	%		$	452,963			$	418,824			8.2	%
Outpatient revenue			897,359				720,893			24.5	%			59,443				53,522			11.1	%
Total patient revenue			2,989,428				2,574,276			16.1	%			512,406				472,346			8.5	%
Other revenue			15,110				14,341			5.4	%			6,632				8,471			-21.7	%
Gross hospital revenue			3,004,538				2,588,617			16.1	%			519,038				480,817			7.9	%
Total deductions			2,150,866				1,812,641			18.7	%			232,185				221,199			5.0	%
Net hospital revenue		$	853,672			$	775,976			10.0	%		$	286,853			$	259,618			10.5	%
SAME FACILITY:
		ACUTE (2)											BEHAVIORAL HEALTH (3)
		06/30/07				06/30/06				% change			06/30/07				06/30/06				% change
Hospitals owned and leased			21				21			0.0	%			73				73			0.0	%
Average licensed beds			5,183				5,014			3.4	%			6,720				6,363			5.6	%
Patient days			274,147				267,940			2.3	%			477,923				461,261			3.6	%
Average daily census			3,012.6				2,944.4			2.3	%			5,251.9				5,068.8			3.6	%
Occupancy-licensed beds			58.1	%			58.7	%		-1.0	%			78.2	%			79.7	%		-1.9	%
Admissions			61,719				60,551			1.9	%			28,588				27,621			3.5	%
Length of stay			4.4				4.4			0.4	%			16.7				16.7			0.1	%

---

(1)	Does not include discontinued operations. Licensed beds from our Acute care hospitals located in New Orleans are excluded in 2006 and 2007.

(2)	Discontinued operations, acute care hospitals located in New Orleans and Texoma are excluded in current and prior years.

(3)	Academy at Canyon Creek, Casa de Lago, Cedar Ridge RTC, Cedar Ridge Hospital, Dover Behavioral, Highlands Behavioral, Lincoln Trail, North Star RTC and Spring Mountain Sahara are excluded in both current and prior years.

---

UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE SIX MONTHS ENDED

JUNE 30, 2007

AS REPORTED:

 

		ACUTE (1)											BEHAVIORAL HEALTH
		06/30/07				06/30/06				% change			06/30/07				06/30/06				% change
Hospitals owned and leased			22				21			4.8	%			75				75			0.0	%
Average licensed beds			5,498				5,002			9.9	%			7,158				6,419			11.5	%
Patient days			595,876				551,174			8.1	%			982,835				918,439			7.0	%
Average daily census			3,292.1				3,045.2			8.1	%			5,430.0				5,074.2			7.0	%
Occupancy-licensed beds			59.9	%			60.9	%		-1.6	%			75.9	%			79.1	%		-4.0	%
Admissions			132,905				123,718			7.4	%			59,026				56,046			5.3	%
Length of stay			4.5				4.5			0.6	%			16.7				16.4			1.6	%
Inpatient revenue		$	4,363,208			$	3,794,538			15.0	%		$	886,875			$	828,224			7.1	%
Outpatient revenue			1,765,490				1,429,404			23.5	%			119,088				106,796			11.5	%
Total patient revenue			6,128,698				5,223,942			17.3	%			1,005,963				935,020			7.6	%
Other revenue			29,561				27,676			6.8	%			14,462				16,546			-12.6	%
Gross hospital revenue			6,158,259				5,251,618			17.3	%			1,020,425				951,566			7.2	%
Total deductions			4,411,722				3,705,690			19.1	%			457,860				438,320			4.5	%
Net hospital revenue		$	1,746,537			$	1,545,928			13.0	%		$	562,565			$	513,246			9.6	%
SAME FACILITY:
		ACUTE (2)											BEHAVIORAL HEALTH (3)
		06/30/07				06/30/06				% change			06/30/07				06/30/06				% change
Hospitals owned and leased			21				21			0.0	%			73				73			0.0	%
Average licensed beds			5,183				5,002			3.6	%			6,667				6,342			5.1	%
Patient days			570,313				551,199			3.5	%			939,625				907,498			3.5	%
Average daily census			3,150.9				3,045.3			3.5	%			5,191.3				5,013.8			3.5	%
Occupancy-licensed beds			60.8	%			60.9	%		-0.1	%			77.9	%			79.1	%		-1.5	%
Admissions			127,954				123,718			3.4	%			57,155				55,313			3.3	%
Length of stay			4.5				4.5			0.0	%			16.4				16.4			0.2	%

---

(1)	Does not include discontinued operations. Licensed beds from our Acute care hospitals located in New Orleans are excluded in 2006 and 2007.

(2)	Discontinued operations, acute care hospitals located in New Orleans and Texoma are excluded in current and prior years.

(3)	Academy at Canyon Creek, Casa de Lago, Cedar Ridge RTC, Cedar Ridge Hospital, Dover Behavioral, Highlands Behavioral, Lincoln Trail, North Star RTC and Spring Mountain Sahara are excluded in both current and prior years.