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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

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FORM 8-K

 

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CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): July 28, 2005 (July 27, 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 July 27, 2005, Universal Health Services, Inc. (the “Company”) issued its 2005 second quarter earnings release. A copy of the Company’s press release is furnished as exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

 

Item 9.01 Financial Statements and Exhibits

 

(c) Exhibits. 99.1 Universal Health Services, Inc. Press Release dated July 27, 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: July 28, 2005

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Exhibit Index

 

Exhibit No.		Exhibit
99.1		Press release, dated July 27, 2005

Exhibit 99.1

 

FOR IMMEDIATE RELEASE
CONTACT:		Steve Filton
		Chief Financial Officer		July 27, 2005
		610-768-3300

 

UNIVERSAL HEALTH SERVICES, INC. REPORTS

SECOND QUARTER EARNINGS,

INCLUDING GAIN ON SALE OF FRENCH ASSETS

 

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its net income was $146.5 million or $2.34 per diluted share during the three-month period ended June 30, 2005 as compared to $48.3 million or $.78 per diluted share during the second quarter of 2004. Net income was $207.9 million or $3.32 per diluted share during the six-month period ended June 30, 2005 as compared to $94.4 million or $1.52 per diluted share during the prior year six-month period. Net revenues increased 9% to $991 million during the second quarter of 2005 as compared to $905 million during the quarter ended June 30, 2004. Net revenues increased 10% to $2.0 billion during the six-month period ended June 30, 2005 as compared to $1.8 billion during the prior year six-month period.

 

Included in the reported results for the quarter ended June 30, 2005 (as listed on the attached Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information) was an after-tax gain of $108.3 million or $1.70 per diluted share resulting from the sale of our 81.5% ownership interest in Medi-Partenaires, an operating company which owned fourteen hospitals in France. The operating results of these facilities, as well as the gain resulting from the divestiture, are reflected as discontinued operations in the Consolidated Statements of Income for the three-month and six-month periods ended June 30, 2005 and 2004. Included in the reported results for the quarter ended June 30, 2004 was a net after-tax gain of $1.5 million or $.02 per diluted share resulting primarily from the sale of two acute care facilities located in Louisiana and one acute care facility located in Puerto Rico. Excluding these gains from both three-month periods, our adjusted net income was $38.2 million or $.64 per diluted share during the three-months ended June 30, 2005 as compared to $46.8 million or $.76 per diluted share during the three-months ended June 30, 2004.

 

Included in the reported results for the six-month period ended June 30, 2005 was a net after-tax gain on the sale of facilities of $114.1 million or $1.78 per diluted share resulting from the sale of our ownership interest in Medi-Partenaires during the second quarter of 2005 and the sale of two acute care hospitals located in Puerto Rico and a home health business in Florida sold during the first quarter of 2005. Also included in our reported results during the six-month period ended June 30, 2005 was an after-tax impairment charge of $2.0 million or $.03 per diluted share recorded in connection with a

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women’s hospital located in Edmond, Oklahoma which is scheduled to close in late September, 2005. Included in the reported results for the six-month period ended June 30, 2004 was a net after-tax gain on sale of facilities of $1.5 million or $.02 per diluted share recorded during the second quarter of 2004, as mentioned above, as well as prior period Medicaid disproportionate share hospital revenue recorded during the first quarter of 2004 amounting to $1.7 million (after-tax) or $.02 per diluted share. Excluding these items from both six-month periods, our adjusted net income was $95.8 million or $1.57 per diluted share during the six-months ended June 30, 2005 as compared to $91.2 million or $1.48 per diluted share during the six-months ended June 30, 2004.

 

At our acute care hospitals owned during both periods, inpatient admissions increased 2.7%, patient days increased 2.1%, revenues increased 6.6% and revenue per adjusted patient day increased 4.1% during the 2005 second quarter, as compared to the comparable prior year quarter. At our behavioral health hospitals owned in both periods, inpatient admissions increased 7.6%, patient days increased 7.3%, revenues increased 9.4%, and revenue per adjusted patient day increased 2.0% during the second quarter of 2005 as compared to the comparable prior year quarter.

 

Our consolidated operating margin decreased to 12.8% during the three-month period ended June 30, 2005 as compared to 14.9% during the same prior year quarter. At our acute care hospitals owned during both three-month periods ended June 30, 2005 and June 30, 2004, the operating margin decreased to 13.3% during the second quarter of 2005 from 15.9% during the second quarter of the prior year. The operating margin at our behavioral health hospitals owned during both periods increased to 25.5% during the second quarter of 2005 from 24.1% during the comparable quarter of the prior year.

 

Contributing significantly to the decrease in our operating margin and net income during the second quarter of 2005, as compared to the comparable prior year quarter, was a decrease in the combined admissions, patient days and payer mix at our acute care hospitals located in the McAllen/Edinburg, Texas market resulting primarily from continued intense competition from a physician-owned hospital in the market. In addition, an increased level of uninsured patients in our acute care hospitals during the quarter unfavorably impacted our bad debt expense and increased the level of charity care provided.

 

During the second quarter of 2005, using the cash proceeds generated from the sales of facilities as well as the net cash provided by operations, we repaid approximately $87 million of debt and purchased approximately 2.65 million shares of our outstanding common stock for approximately $59 per share or $156 million in the aggregate.

 

We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on July 28, 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 July 28, 2005 and will continue through midnight on August 5, 2005. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number of 7490517. This call will also be available live over the internet at our web site at www.uhsinc.com.

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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 website: http://www.uhsinc.com.

 

This press release contains forward-looking statements based on current management expectations. Numerous factors, including 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 17 and 18 of our Form 10-Q for the quarterly period ended March 31, 2005), may cause results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine our future results are beyond our capability to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management’s view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

 

We believe that operating income, operating margin, adjusted income from continuing operations, adjusted income from continuing operations per diluted share, adjusted net income, adjusted net income per diluted share, adjusted operating income and adjusted operating margin, which are non-GAAP financial measures (“GAAP” is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of items that are nonrecurring or non-operational in nature such as 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 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. Below are Schedules of Non-GAAP Supplemental Consolidated Income Statement Information which reconcile these measures 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 June 30,						Six months ended June 30,
		2005			2004			2005			2004
Net revenues		$	990,888		$	905,494		$	1,997,533		$	1,812,620
Operating charges:
Salaries, wages and benefits			407,897			369,335			814,237			740,793
Other operating expenses			234,707			213,274			465,872			421,229
Supplies expense			126,124			113,521			252,660			229,105
Provision for doubtful accounts			95,478			74,244			177,886			157,801
Depreciation and amortization			37,988			35,033			77,684			68,342
Lease and rental expense			15,288			15,255			30,755			30,148
			917,482			820,662			1,819,094			1,647,418
Income before interest expense, minority interests and income taxes			73,406			84,832			178,439			165,202
Interest expense, net			7,450			9,359			18,126			18,926
Minority interests in earnings of consolidated entities			7,926			5,183			15,845			8,710
Income before income taxes			58,030			70,290			144,468			137,566
Provision for income taxes			21,398			25,908			53,146			50,671
Income from continuing operations			36,632			44,382			91,322			86,895
Income from discontinued operations, net of income tax expense (a)			109,822			3,907			116,541			7,578
Net income		$	146,454		$	48,289		$	207,863		$	94,473
Basic earnings per share: (b)
From continuing operations		$	0.65		$	0.77		$	1.60		$	1.51
From discontinued operations			1.95			0.07			2.05			0.13
Total basic earnings per share		$	2.60		$	0.84		$	3.65		$	1.64
Diluted earnings per share: (b)
From continuing operations		$	0.61		$	0.72		$	1.50		$	1.40
From discontinued operations			1.73			0.06			1.82			0.12
Total diluted earnings per share		$	2.34		$	0.78		$	3.32		$	1.52

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Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

 

		Three months ended June 30,								Six months ended June 30,
		2005				2004				2005				2004
(a) Calculation of income from discontinued operations, net of income tax:
Income from operations		$	2,602			$	4,039			$	4,433			$	10,114
Gains on divestitures			164,736				2,338				173,831				2,338
Income from discontinued operations, pre-tax			167,338				6,377				178,264				12,452
Income tax provision			(57,516	)			(2,470	)			(61,723	)			(4,874	)
Income from discontinued operations, net of income tax expense		$	109,822			$	3,907			$	116,541			$	7,578
(b) Earnings per share calculation:
Basic:
Income from continuing operations		$	36,632			$	44,382			$	91,322			$	86,895
Less: Dividends on unvested restricted stock, net of taxes			(28	)			(28	)			(55	)			(56	)
Income from continuing operations - basic		$	36,604			$	44,354			$	91,267			$	86,839
Income from discontinued operations			109,822				3,907				116,541				7,578
Net income - basic		$	146,426			$	48,261			$	207,808			$	94,417
Weighted average number of common shares - basic			56,425				57,622				56,974				57,593
Basic earnings per share:
From continuing operations		$	0.65			$	0.77			$	1.60			$	1.51
From discontinued operations			1.95				0.07				2.05				0.13
Total basic earnings per share		$	2.60			$	0.84			$	3.65			$	1.64
Diluted:
Income from continuing operations		$	36,632			$	44,382			$	91,322			$	86,895
Less: Dividends on unvested restricted stock, net of taxes			(28	)			(28	)			(55	)			(56	)
Add: Debenture interest, net of taxes			2,382				2,305				4,764				4,573
Income from continuing operations - diluted		$	38,986			$	46,659			$	96,031			$	91,412
Income from discontinued operations			109,822				3,907				116,541				7,578
Net income - diluted		$	148,808			$	50,566			$	212,572			$	98,990
Weighted average number of common shares			56,425				57,622				56,974				57,593
Add: Shares for conversion of convertible debentures			6,577				6,577				6,577				6,577
Other share equivalents			646				774				481				860
Weighted average number of common shares and equiv. - diluted			63,648				64,973				64,032				65,030
Diluted earnings per share:
From continuing operations		$	0.61			$	0.72			$	1.50			$	1.40
From discontinued operations			1.73				0.06				1.82				0.12
Total diluted earnings per share		$	2.34			$	0.78			$	3.32			$	1.52

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Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

		June 30, 2005			December 31, 2004
Assets:
Cash and cash equivalents		$	114,747		$	33,125
Accounts receivable, net			550,437			552,538
Other current assets			97,591			90,392
Property, plant and equipment, net			1,351,062			1,448,066
Other assets			656,488			765,852
Assets held for sale			—			132,870
Total Assets		$	2,770,325		$	3,022,843
Liabilities and Stockholders’ Equity:
Current portion of long-term debt		$	3,994		$	16,968
Liabilities held for sale			—			11,116
Other current liabilities			479,587			441,572
Other noncurrent liabilities			261,099			243,617
Long-term debt			525,849			852,229
Deferred income taxes			49,161			50,212
Minority interest			168,849			186,543
Stockholders’ equity			1,281,786			1,220,586
Total Liabilities and Stockholders’ Equity		$	2,770,325		$	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 June 30, 2005 and 2004

(in thousands)

(unaudited)

 

		Three months ended June 30, 2005								Three months ended June 30, 2004
Net revenues		$	990,888				100.0	%		$	905,494				100.0	%
Operating charges:
Salaries, wages and benefits			407,897				41.2	%			369,335				40.8	%
Other operating expenses			234,707				23.7	%			213,274				23.6	%
Supplies expense			126,124				12.7	%			113,521				12.5	%
Provision for doubtful accounts			95,478				9.6	%			74,244				8.2	%
			864,206				87.2	%			770,374				85.1	%
Operating income/margin			126,682				12.8	%			135,120				14.9	%
Lease and rental expense			15,288								15,255
Minority interests in earnings of consolidated entities			7,926								5,183
Earnings before depreciation and amortization, interest expense, and income taxes (“EBITDA”)			103,468								114,682
Depreciation and amortization			37,988								35,033
Interest expense, net			7,450								9,359
Income before income taxes			58,030								70,290
Provision for income taxes			21,398								25,908
Income from continuing operations			36,632								44,382
Income from discontinued operations, net of income taxes			109,822								3,907
Net income		$	146,454							$	48,289
		Three months ended June 30, 2005								Three months ended June 30, 2004
						Per								Per
		Amount				Diluted Share				Amount				Diluted Share
Calculation of Adjusted Net Income
Net income		$	146,454			$	2.34			$	48,289			$	0.78
Less: After-tax gain on sale of facilities			(108,291	)			(1.70	)			(1,486	)			(0.02	)
Adjusted net income		$	38,163			$	0.64			$	46,803			$	0.76

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Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information

For the Six Months Ended June 30, 2005 and 2004

(in thousands)

(unaudited)

 

		Six months ended June 30, 2005								Six months ended June 30, 2004
Net revenues		$	1,997,533				100.0	%		$	1,812,620				100.0	%
Operating charges:
Salaries, wages and benefits			814,237				40.8	%			740,793				40.9	%
Other operating expenses			465,872				23.3	%			421,229				23.2	%
Supplies expense			252,660				12.6	%			229,105				12.6	%
Provision for doubtful accounts			177,886				8.9	%			157,801				8.7	%
			1,710,655				85.6	%			1,548,928				85.5	%
Operating income/margin			286,878				14.4	%			263,692				14.5	%
Lease and rental expense			30,755								30,148
Minority interests in earnings of consolidated entities			15,845								8,710
Earnings before depreciation and amortization, interest expense, and income taxes (“EBITDA”)			240,278								224,834
Depreciation and amortization			77,684								68,342
Interest expense, net			18,126								18,926
Income before income taxes			144,468								137,566
Provision for income taxes			53,146								50,671
Income from continuing operations			91,322								86,895
Income from discontinued operations, net of income taxes			116,541								7,578
Net income		$	207,863							$	94,473
		Six months ended June 30, 2005								Six months ended June 30, 2004
						Per								Per
		Amount				Diluted Share				Amount				Diluted Share
Calculation of Adjusted Income from Continuing Operations
Income from continuing operations		$	91,322			$	1.50			$	86,895			$	1.40
Less: After-tax DSH revenue attributable to prior year			—				—				(1,748	)			(0.02	)
Adjusted income from continuing operations		$	91,322			$	1.50			$	85,147			$	1.38
Calculation of Adjusted Net Income
Net income		$	207,863			$	3.32			$	94,473			$	1.52
Add: After-tax asset impairment charge			1,974				0.03				—				—
Less: After-tax gain on sale of facilities			(114,073	)			(1.78	)			(1,486	)			(0.02	)
Less: After-tax DSH revenue attributable to prior year			—				—				(1,748	)			(0.02	)
Adjusted net income		$	95,764			$	1.57			$	91,239			$	1.48
		Amount				Margin				Amount				Margin
Calculation of Adjusted Operating Income/Margin
Operating income/margin		$	286,878				14.4	%		$	263,692				14.5	%
Less: After-tax DSH revenue attributable to prior year			—				—				(1,748	)			—
Adjusted operating income/margin		$	286,878				14.4	%		$	261,944				14.5	%

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Universal Health Services, Inc.

Supplemental Statistical Information

(un-audited)

 

Same Facility:

 

		% Change Quarter Ended 6/30/2005			% Change 6 months ended 6/30/2005
Acute Care Hospitals
Revenues		6.6	%		7.7	%
Adjusted Admissions		2.6	%		2.4	%
Adjusted Patient Days		2.4	%		1.9	%
Revenue Per Adjusted Admission		3.9	%		5.1	%
Revenue Per Adjusted Patient Day		4.1	%		5.7	%
Behavioral Health Hospitals
Revenues		9.4	%		7.5	%
Adjusted Admissions		7.2	%		3.6	%
Adjusted Patient Days		7.3	%		5.0	%
Revenue Per Adjusted Admission		2.1	%		3.7	%
Revenue Per Adjusted Patient Day		2.0	%		2.3	%

 

UHS Consolidated

 

		Second Quarter Ended								Six months Ended
		6/30/2005				6/30/2004				6/30/2005				6/30/2004
Revenues		$	990,888			$	905,494			$	1,997,533			$	1,812,620
EBITDA (1)			103,468				114,682				240,278				224,834
EBITDA Margin (1)			10.4	%			12.7	%			12.0	%			12.4	%
Cash Flow From Operations			92,260				129,549				226,872				224,675
Days Sales Outstanding			51				52				50				51
Capital Expenditures			50,927				47,582				108,847				118,018
Debt (net of cash)							—				415,096			$	826,445
Shareholders Equity							—				1,281,786			$	1,178,943
Debt / Total Capitalization							—				24.5	%			41.2	%
Debt / EBITDA (2)							—				0.85				1.71
Debt / Cash From Operations (2)							—				1.05				2.13
Acute Care EBITDAR Margin (3)			13.2	%			15.7	%			15.0	%			15.3	%
Behavioral Health EBITDAR Margin (3)			25.5	%			24.1	%			25.0	%			24.1	%

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(1)	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

JUNE 30, 2005

 

AS REPORTED:

 

		FOR THE THREE MONTHS ENDED
		ACUTE (1) (2)											BEHAVIORAL HEALTH
		06/30/05				06/30/04				%			06/30/05				06/30/04				%
Hospitals owned and leased			24				23			4.3	%			44				44			0.0	%
Average licensed beds			5,552				5,704			-2.7	%			4,456				4,214			5.7	%
Patient days			289,568				281,476			2.9	%			343,214				310,723			10.5	%
Average daily census			3,147.5				3,059.5			2.9	%			3,730.6				3,377.4			10.5	%
Occupancy-licensed beds			56.7	%			53.6	%		5.7	%			83.7	%			80.1	%		4.5	%
Admissions			64,301				61,907			3.9	%			25,983				23,944			8.5	%
Length of stay			4.5				4.5			-1.0	%			13.2				13.0			1.8	%
Inpatient revenue		$	1,839,847			$	1,644,878			11.9	%		$	344,811			$	310,737			11.0	%
Outpatient revenue			718,853				632,882			13.6	%			51,466				46,472			10.7	%
Total patient revenue			2,558,700				2,277,760			12.3	%			396,277				357,209			10.9	%
Other revenue			14,382				8,788			63.7	%			8,719				8,610			1.3	%
Gross hospital revenue			2,573,082				2,286,548			12.5	%			404,996				365,819			10.7	%
Total deductions			1,792,209				1,568,221			14.3	%			205,608				188,087			9.3	%
Net hospital revenue		$	780,873			$	718,327			8.7	%		$	199,388			$	177,732			12.2	%

 

SAME FACILITY:

 

		FOR THE THREE MONTHS ENDED
		ACUTE (1) (3)									BEHAVIORAL HEALTH (4)
		06/30/05			06/30/04			%			06/30/05			06/30/04			%
Hospitals owned and leased		23			23			0.0	%		44			44			0.0	%
Average licensed beds		5,432			5,704			-4.8	%		4,341			4,214			3.0	%
Patient days		287,314			281,463			2.1	%		333,497			310,729			7.3	%
Average daily census		3,157.3			3,093.0			2.1	%		3,664.8			3,414.6			7.3	%
Occupancy-licensed beds		58.1	%		54.2	%		7.2	%		84.4	%		81.0	%		4.2	%
Admissions		63,567			61,907			2.7	%		25,773			23,944			7.6	%
Length of stay		4.5			4.5			-0.6	%		12.9			13.0			-0.3	%

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(1)	Does not include hospitals located in France

(2)	Does not include Discontinued Operations

(3)	All Discontinued Operations and Lakewood Ranch are excluded in current and prior years. Lakeland is included in both current and prior years for January only.

(4)	Stonington is included in both current and prior years from April 1 through year to date. The four facilities purchased from Keystone are included in both current and prior years from May 1st through year to date.

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UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

JUNE 30, 2005

 

AS REPORTED:

 

		FOR THE SIX MONTHS ENDED
		ACUTE (1) (2)											BEHAVIORAL HEALTH
		06/30/05				06/30/04				%			06/30/05				06/30/04				%
Hospitals owned and leased			24				23			4.3	%			44				44			0.0	%
Average licensed beds			5,551				5,678			-2.2	%			4,435				4,059			9.3	%
Patient days			602,068				585,086			2.9	%			669,088				594,621			12.5	%
Average daily census			3,326.3				3,214.8			3.5	%			3,696.6				3,267.1			13.1	%
Occupancy-licensed beds			59.9	%			56.6	%		5.8	%			83.4	%			80.5	%		3.6	%
Admissions			131,392				126,457			3.9	%			51,028				48,083			6.1	%
Length of stay			4.6				4.6			-1.0	%			13.1				12.4			6.0	%
Inpatient revenue		$	3,786,715			$	3,396,296			11.5	%		$	670,708			$	604,466			11.0	%
Outpatient revenue			1,409,433				1,249,316			12.8	%			99,981				89,448			11.8	%
Total patient revenue			5,196,148				4,645,612			11.9	%			770,689				693,914			11.1	%
Other revenue			27,498				17,799			54.5	%			16,679				16,951			-1.6	%
Gross hospital revenue			5,223,646				4,663,411			12.0	%			787,368				710,865			10.8	%
Total deductions			3,636,149				3,212,633			13.2	%			398,420				367,230			8.5	%
Net hospital revenue		$	1,587,497			$	1,450,778			9.4	%		$	388,948			$	343,635			13.2	%

 

SAME FACILITY:

 

		FOR THE SIX MONTHS ENDED
		ACUTE (1) (3)									BEHAVIORAL HEALTH (4)
		06/30/05			06/30/04			%			06/30/05			06/30/04			%
Hospitals owned and leased		23			23			0.0	%		44			44			0.0	%
Average licensed beds		5,420			5,678			-4.5	%		4,175			4,059			2.9	%
Patient days		595,743			585,112			1.8	%		625,500			594,612			5.2	%
Average daily census		3,291.4			3,214.9			2.4	%		3,455.8			3,267.1			5.8	%
Occupancy-licensed beds		60.7	%		56.6	%		7.3	%		82.8	%		80.5	%		2.8	%
Admissions		129,687			126,457			2.6	%		49,994			48,083			4.0	%
Length of stay		4.6			4.6			-0.7	%		12.5			12.4			1.2	%

---

(1)	Does not include hospitals located in France

(2)	Does not include Discontinued Operations

(3)	All Discontinued Operations and Lakewood Ranch are excluded in current and prior years. Lakeland is included in both current and prior years for January only.

(4)	Stonington is included in both current and prior years from April 1 through year to date. The four facilities purchased from Keystone are included in both current and prior years from May 1st through year to date.