Universal Health Services, Inc. Reports 2010 Third Quarter Financial Results; Expects to Complete Acquisition of Psychiatric Solutions, Inc. in November 2010

Consolidated Results of Operations - Three-month periods ended September 30, 2010 and 2009:

Oct 27, 2010, 17:01 ET from Universal Health Services, Inc.

KING OF PRUSSIA, Pa., Oct. 27 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $55.6 million, or $.57 per diluted share, during the third quarter of 2010 as compared to $51.1 million, or $.52 per diluted share, during the comparable prior year quarter. Net revenues increased 2.2% to $1.32 billion during the third quarter of 2010 as compared to $1.30 billion during the third quarter of 2009. Neutralizing the impact of the $17 million reduction to our net revenues and provision for doubtful accounts during the third quarter of 2010, as discussed below in Acute Care Services – Three-month periods, our net revenues increased 3.5% during the third quarter of 2010 as compared to the comparable prior year quarter.

After adjusting the reported results for the third quarter of 2010 to neutralize the impact of the below-mentioned adjustments (no such adjustments were applicable to the third quarter of 2009), our adjusted net income attributable to UHS was $53.7 million, or $.55 per diluted share.    

As indicated on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedules"), included in our net income attributable to UHS during the three-month period ended September 30, 2010, was net income of $1.9 million, or $.02 per diluted share, consisting of: (i) the unfavorable after-tax impact of $2.5 million, or $.02 per diluted share, resulting from the recording of transaction fees incurred in connection with our previously announced agreement to acquire Psychiatric Solutions, Inc. ("PSI"), offset by; (ii) a favorable discrete tax item $4.3 million, or $.04 per diluted share, related to the estimated non-deductible portion of the previously disclosed South Texas Health System settlement with the government.

Consolidated Results of Operations – Nine-month periods ended September 30, 2010 and 2009:

During the nine-month period ended September 30, 2010, our reported net income attributable to UHS was $193.0 million, or $1.96 per diluted share, as compared to $199.5 million, or $2.02 per diluted share, during the comparable prior year period. Net revenues increased 2.5% to $4.01 billion during the first nine months of 2010 as compared to $3.91 billion during the first nine months of 2009.  

After adjusting the reported results for nine-month periods ended September 30, 2010 and 2009 to neutralize the impact of the below-mentioned adjustments, our adjusted net income attributable to UHS was $192.2 million, or $1.96 per diluted share, during the first nine months of 2010 as compared to $189.7 million, or $1.92 per diluted share, during the first nine months of 2009.  

As indicated on the Supplemental Schedules, included in our net income attributable to UHS during the nine-month period ended September 30, 2010, were the following which, on a net aggregate basis, had no impact on our earnings per diluted share: (i) a favorable after-tax adjustment of $10.2 million, or $.10 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2010 based upon a reserve analysis; (ii) a favorable discrete tax item $4.3 million, or $.04 per diluted share, as mentioned above, offset by; (iii) the unfavorable after-tax impact of $13.7 million, or $.14 per diluted share, resulting from the recording of transaction fees incurred in connection with our agreement to acquire PSI.

As indicated on the attached Supplemental Schedules, included in our net income attributable to UHS during the nine-month periods ended September 30, 2009, was net income of $9.8 million, or $.10 per diluted share, consisting of: (i) a favorable after-tax adjustment of $14.1 million, or $.14 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2009 based upon a reserve analysis, partially offset by; (ii) an unfavorable discrete tax item of $4.3 million, or $.04 per diluted share, related to the South Texas Health System settlement.  

Acute Care Services - Three-month periods ended September 30, 2010 and 2009:

At our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased 1.6% while adjusted patient days increased 1.5% during the third quarter of 2010, as compared to the third quarter of 2009. Net revenues at these facilities increased 1.9% during the third quarter of 2010 as compared to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission during the third quarter of 2010 increased 0.3% while net revenue per adjusted patient day increased 0.4% as compared to the comparable quarter of the prior year. On a same facility basis, excluding the items mentioned above and as included on the Supplemental Schedules, the operating margin at our acute care hospitals decreased to 12.9% during the third quarter of 2010 as compared to 13.1% during the third quarter of 2009.  

We provide care to patients who meet certain financial or economic criteria without charge or at amounts substantially less than our established rates. Because we do not pursue collection of amounts determined to qualify as charity care, they are not reported in net revenues or in accounts receivable, net. Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $214 million and $169 million during the three-month periods ended September 30, 2010 and 2009, respectively. During the third quarter of 2010, we began classifying the charges associated with certain patients who met specific financial or economic criteria as charity care rather than as provision for doubtful accounts.  Although this change in classification did not have any impact our net income attributable to UHS, it reduced our net revenues (by increasing the above-mentioned charity and uninsured discounts) and reduced our provision for doubtful accounts by approximately $17 million during the third quarter of 2010.

Acute Care Services - Nine-month periods ended September 30, 2010 and 2009:

During the nine-month period ended September 30, 2010, on a same facility basis, adjusted admissions increased 1.8% while adjusted patient days increased 0.8% over the comparable prior year period.  Net revenues at these facilities increased 2.4% during the first nine months of 2010 as compared to the comparable period of the prior year. At these facilities, net revenue per adjusted admission increased 0.6% while net revenue per adjusted patient day increased 1.6% during the nine-month period ended September 30, 2010 as compared to the comparable period of the prior year. On a same facility basis, excluding the items mentioned above and as included on the Supplemental Schedules, the operating margin at our acute care hospitals decreased to 14.4% during the first nine months of 2010 as compared to 15.8% during the comparable period of the prior year.

Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $580 million and $509 million during the nine-month periods ended September 30, 2010 and 2009, respectively.

Behavioral Health Care Services – Three-month periods ended September 30, 2010 and 2009:

At our behavioral health care facilities, on a same facility basis, adjusted admissions increased 3.1% and adjusted patient days increased 0.8% during the third quarter of 2010 as compared to the third quarter of 2009.  Net revenues at these facilities increased 5.7% during the third quarter of 2010 as compared to the comparable quarter in the prior year. At these facilities, net revenue per adjusted admission during the third quarter of 2010 increased 2.6% while net revenue per adjusted patient day increased 4.9% as compared to the comparable prior year quarter. On a same facility basis, excluding the items mentioned above and as included on the Supplemental Schedules, the operating margin at our behavioral health care facilities increased to 25.9% during the third quarter of 2010 as compared to 24.7% during the third quarter of 2009.  

"The continued strength of our behavioral health business reinforces our enthusiasm for the previously announced acquisition of Psychiatric Solutions, Inc.", said Alan B. Miller, Chief Executive Officer. "We are eager to complete the transaction in November and begin the integration of PSI's patients, employees and facilities into our company."    

Behavioral Health Care Services – Nine-month periods ended September 30, 2010 and 2009:

During the nine-month period ended September 30, 2010, on a same facility basis, adjusted admissions increased 3.9% and adjusted patient days increased 2.2% as compared to the comparable period of 2009.  Net revenues at these facilities increased 6.0% during the first nine months of 2010 as compared to the comparable prior year period. At these facilities, net revenue per adjusted admission increased 1.8% while net revenue per adjusted patient day increased 3.4% during the first nine months of 2010 over the comparable prior year period. On a same facility basis, excluding the items mentioned above and as included on the Supplemental Schedules, the operating margin at our behavioral health care facilities increased to 26.6% during the first nine months of 2010 as compared to 25.1% during the comparable period of 2009.  

2010 Revised Full Year Guidance:

Based upon the operating trends and financial results experienced during the first nine months of 2010, and subject to certain assumptions, provisions and adjustments, including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures, we are decreasing the upper end of our estimated range of earnings per diluted share attributable to UHS for the year ended December 31, 2010.  Our revised full year guidance for 2010 is $2.45 to $2.55 per diluted share from the previously provided range of $2.45 to $2.65 per diluted share.  

This guidance range excludes the impact of our acquisition of PSI and the items as indicated on the attached Supplemental Schedules for the nine-month period ended September 30, 2010.  The range also excludes the impact of other items, if applicable, that may occur during the fourth quarter of 2010 that are nonrecurring or non-operational in nature and other amounts that may be reflected in our 2010 financial statements that relate to prior periods.

Conference Call Information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on October 28, 2010.  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 October 28, 2010 and will continue through midnight on November 11, 2010.  The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 16881355. A live broadcast of the call will be available on our web site at www.uhsinc.com.  The webcast will be available through Thompson StreetEvents Network at www.earnings.com or  www.streetevents.com, a password-protected event management site for institutional investors.

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

Universal Health Services, Inc. ("UHS") is one of the nation's largest hospital companies operating, through its subsidiaries, acute care hospitals, behavioral healthcare facilities and ambulatory centers located throughout the United States and Puerto Rico. UHS 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, 2009 and in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarterly period ended June 30, 2010), may cause the 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 net income attributable to UHS, adjusted net income attributable to UHS 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, when applicable, 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, reserves for settlements, legal judgments and lawsuits 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-K for the year ended December 31, 2009 and Report on Form 10-Q for the quarterly period ended June 30, 2010. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability.  Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies.  Investors are encouraged to use GAAP measures when evaluating our financial performance.

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Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

Three months

Nine months

ended September 30,

ended September 30,

2010

2009

2010

2009

Net revenues

$1,323,264

$1,295,109

$4,008,732

$3,911,168

Operating charges:

  Salaries, wages and benefits

572,742

558,244

1,715,220

1,641,491

  Other operating expenses

258,388

253,792

754,530

759,907

  Supplies expense

180,024

171,652

543,766

522,030

  Provision for doubtful accounts

133,467

141,086

402,621

380,734

  Depreciation and amortization

55,530

51,205

163,066

153,424

  Lease and rental expense

18,429

17,253

54,548

51,912

1,218,580

1,193,232

3,633,751

3,509,498

Income from operations

104,684

101,877

374,981

401,670

Interest expense, net

11,478

10,780

36,132

35,297

Income before income taxes

93,206

91,097

338,849

366,373

Provision for income taxes

27,404

32,043

113,870

131,308

Net income

65,802

59,054

224,979

235,065

Less:  Income attributable to

noncontrolling interests

10,192

7,980

31,978

35,557

Net income attributable to UHS

$55,610

$51,074

$193,001

$199,508

Basic earnings per share attributable to UHS (a)

$0.57

$0.52

$1.99

$2.03

Diluted earnings per share attributable to UHS (a)

$0.57

$0.52

$1.96

$2.02

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

Three months

Nine months

ended September 30,

ended September 30,

2010

2009

2010

2009

(a) Earnings per share calculation:

Basic and diluted:

Net income attributable to UHS

$55,610

$51,074

$193,001

$199,508

Less: Net income attributable to unvested restricted share grants

(233)

(217)

(826)

(912)

Net income attributable to UHS - basic and diluted

$55,377

$50,857

$192,175

$198,596

Weighted average number of common shares - basic

96,777

97,774

96,673

97,962

Basic earnings per share attributable to UHS:

$0.57

$0.52

$1.99

$2.03

Weighted average number of common shares

96,777

97,774

96,673

97,962

Add: Other share equivalents

1,158

730

1,140

378

Weighted average number of common shares and equiv. - diluted

97,935

98,504

97,813

98,340

Diluted earnings per share attributable to UHS:

$0.57

$0.52

$1.96

$2.02

Universal Health Services, Inc.

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

For the three months ended September 30, 2010 and 2009

(in thousands, except per share amounts)

(unaudited)

Three months ended

Three months ended

September 30, 2010

September 30, 2009

Net revenues

$1,323,264

100.0%

$1,295,109

100.0%

Operating charges:

  Salaries, wages and benefits

572,742

43.3%

558,244

43.1%

  Other operating expenses

258,388

19.5%

253,792

19.6%

  Supplies expense

180,024

13.6%

171,652

13.3%

  Provision for doubtful accounts

133,467

10.1%

141,086

10.9%

1,144,621

86.5%

1,124,774

86.8%

Operating income/margin

178,643

13.5%

170,335

13.2%

  Lease and rental expense

18,429

17,253

  Income attributable to noncontrolling interests

10,192

7,980

Earnings before, depreciation and amortization, interest expense, and income taxes

150,022

145,102

  Depreciation and amortization

55,530

51,205

  Interest expense, net

11,478

10,780

Income before income taxes

83,014

83,117

Provision for income taxes

27,404

32,043

Net income attributable to UHS

$55,610

$51,074

Three months ended

Three months ended

September 30, 2010

September 30, 2009

Per

Per

Amount

Diluted Share

Amount

Diluted Share

Calculation of Adjusted Net Income Attributable to UHS

Net income attributable to UHS

$55,610

$0.57

$51,074

$0.52

Plus/minus adjustments:

 Acquisition transaction costs, net of income taxes

2,454

0.02

-

-

 Favorable discrete tax item

(4,331)

(0.04)

-

-

Subtotal after-tax adjustments to net income attributable to UHS

(1,877)

(0.02)

-

-

Adjusted net income attributable to UHS

$53,733

$0.55

$51,074

$0.52

Universal Health Services, Inc.

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

For the nine months ended September 30, 2010 and 2009

(in thousands, except per share amounts)

(unaudited)

Nine months ended

Nine months ended

September 30, 2010

September 30, 2009

Net revenues

$4,008,732

100.0%

$3,911,168

100.0%

Operating charges:

  Salaries, wages and benefits

1,715,220

42.8%

1,641,491

42.0%

  Other operating expenses

754,530

18.8%

759,907

19.4%

  Supplies expense

543,766

13.6%

522,030

13.3%

  Provision for doubtful accounts

402,621

10.0%

380,734

9.7%

3,416,137

85.2%

3,304,162

84.5%

Operating income/margin

592,595

14.8%

607,006

15.5%

  Lease and rental expense

54,548

51,912

  Income attributable to noncontrolling interests

31,978

35,557

Earnings before, depreciation and amortization, interest expense, and income taxes

506,069

519,537

  Depreciation and amortization

163,066

153,424

  Interest expense, net

36,132

35,297

Income before income taxes

306,871

330,816

Provision for income taxes

113,870

131,308

Net income attributable to UHS

$193,001

$199,508

Nine months ended

Nine months ended

September 30, 2010

September 30, 2009

Per

Per

Amount

Diluted Share

Amount

Diluted Share

Calculation of Adjusted Net Income Attributable to UHS

Net income attributable to UHS

$193,001

$1.96

$199,508

$2.02

Plus/minus adjustments:

  Reduction of reserves relating to prior years for professional and general liability

     self-insured claims, net of income taxes

(10,198)

(0.10)

(14,168)

(0.14)

 Acquisition transaction costs, net of income taxes

13,742

0.14

-

-

  (Favorable) Unfavorable discrete tax item

(4,331)

(0.04)

4,331

0.04

Subtotal after-tax adjustments to net income attributable to UHS

(787)

-

(9,837)

(0.10)

Adjusted net income attributable to UHS

$192,214

$1.96

$189,671

$1.92

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands, unaudited)

As revised (a)

September 30,

December 31,

2010

2009

Assets

Current assets:

   Cash and cash equivalents

$

9,629

$

9,180

   Restricted cash (b)

256,972

0

   Accounts receivable, net

609,083

602,559

   Supplies

84,708

84,272

   Other current assets

52,091

27,270

   Deferred income taxes

66,420

51,336

   Current assets held for sale

0

21,580

         Total current assets

1,078,903

796,197

Property and equipment

3,869,644

3,738,818

Less: accumulated depreciation

(1,552,164)

(1,423,580)

2,317,480

2,315,238

Other assets:

   Goodwill

732,340

732,685

   Deferred charges

13,841

8,643

   Other

125,150

111,700

$

4,267,714

$

3,964,463

Liabilities and Stockholders' Equity

Current liabilities:

   Current maturities of long-term debt (c)

$

401,673

$

2,573

   Accounts payable and accrued liabilities

611,753

578,617

   Federal and state taxes

0

1,627

         Total current liabilities

1,013,426

582,817

Other noncurrent liabilities

353,386

375,580

Long-term debt

614,923

956,429

Deferred income taxes

94,913

60,091

Redeemable noncontrolling interest

202,929

197,152

UHS common stockholders' equity

1,943,572

1,751,071

Noncontrolling interest

44,565

41,323

         Total equity

1,988,137

1,792,394

$

4,267,714

$

3,964,463

(a) We have revised our Condensed Consolidated Balance Sheet at December 31, 2009 to reclassify $197.2 million of noncontrolling interests, which are redeemable outside of our control, from total equity to mezzanine equity.  This revision did not affect UHS's common stockholders' equity.  We do not believe this revision is material to the Condensed Consolidated Balance Sheet at December 31, 2009.

(b) Consists of the proceeds, plus certain other related amounts, generated from the issuance of $250 million of 7% senior notes that mature on October 1, 2018.  These funds are being held in escrow until the earlier of either December 31, 2010 or the satisfaction of certain conditions of escrow, most notably the completion of the acquisition of Psychiatric Solutions, Inc. (“PSI”) which we expect to occur in November, 2010.

(c) Includes $150 million of borrowings outstanding pursuant to our $800 million revolving credit agreement that is scheduled to expire on July 28, 2011 and the $250 million of 7% senior notes as mentioned in (b) above. In connection with the consummation of our planned acquisition of PSI, we obtained a debt financing commitment of $3.45 billion under a senior credit facility, consisting of an $800 million revolving credit facility, a $1.05 billion term loan A facility and a $1.6 billion term loan B facility.  The senior credit facility will become effective upon the closing of the acquisition of PSI which we expect to occur in November, 2010.  We plan to use proceeds from the senior credit facility to repay the outstanding borrowings under our existing revolving credit facility.  Upon the closing of the acquisition of PSI, the $250 million 7% senior notes mentioned in (b) above will be reclassified to long-term debt.

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Nine months

ended September 30,

2010

2009

Cash Flows from Operating Activities:

 Net income

$224,979

$235,065

 Adjustments to reconcile net income to net

cash provided by operating activities:

Depreciation & amortization

163,066

153,424

Net gain on sale of assets and noncontrolling interests

(1,993)

0

Stock-based compensation expense

12,678

9,691

 Changes in assets & liabilities, net of effects from

acquisitions and dispositions:

  Accounts receivable

(6,751)

20,747

  Construction management and other receivable

0

13,697

  Accrued interest

8,437

10,712

  Accrued and deferred income taxes

(2,656)

10,824

  Other working capital accounts

26,697

40,434

  Other assets and deferred charges

(15,742)

3,716

  Other

(4,556)

(2,150)

  Accrued insurance expense, net of commercial premiums paid

32,770

31,321

  Payments made in settlement of self-insurance claims

(37,330)

(43,206)

         Net cash provided by operating activities

399,599

484,275

Cash Flows from Investing Activities:

  Property and equipment additions, net of disposals

(177,750)

(278,825)

  Proceeds received from sale of assets

21,460

818

  Restricted cash related to bond issuance held in escrow pending completion of PSI acquisition

(256,972)

0

  Acquisition of property and business

0

(9,006)

         Net cash used in investing activities

(413,262)

(287,013)

Cash Flows from Financing Activities:

  Reduction of long-term debt

(194,600)

(143,844)

  Additional borrowings

250,000

170

  Financing costs

(5,016)

0

  Repurchase of common shares

(3,963)

(15,467)

  Dividends paid

(14,555)

(11,821)

  Issuance of common stock

5,204

1,568

  Profit distributions to noncontrolling interests

(23,558)

(19,698)

  Proceeds from sale of noncontrolling interest in majority owned business

600

0

         Net cash provided by (used in) financing activities

14,112

(189,092)

Increase in cash and cash equivalents

449

8,170

Cash and cash equivalents, beginning of period

9,180

5,460

Cash and cash equivalents, end of period

$9,629

$13,630

Supplemental Disclosures of Cash Flow Information:

 Interest paid

$33,584

$32,357

 Income taxes paid, net of refunds

$113,521

$120,429

Universal Health Services, Inc.

Supplemental Statistical Information

(un-audited)

% Change

% Change

Quarter Ended

9 months ended

Same Facility:

9/30/2010

9/30/2010

Acute Care Hospitals

Revenues

1.9%

2.4%

Adjusted Admissions

1.6%

1.8%

Adjusted Patient Days

1.5%

0.8%

Revenue Per Adjusted Admission

0.3%

0.6%

Revenue Per Adjusted Patient Day

0.4%

1.6%

Behavioral Health Hospitals

Revenues

5.7%

6.0%

Adjusted Admissions

3.1%

3.9%

Adjusted Patient Days

0.8%

2.2%

Revenue Per Adjusted Admission

2.6%

1.8%

Revenue Per Adjusted Patient Day

4.9%

3.4%

UHS Consolidated

Third Quarter Ended

Nine months Ended

9/30/2010

9/30/2009

9/30/2010

9/30/2009

Revenues

$1,323,264

$1,295,109

$4,008,732

$3,911,168

EBITDA   (1)

150,022

145,102

506,069

519,537

EBITDA Margin (1)

11.3%

11.2%

12.6%

13.3%

Cash Flow From Operations

180,229

183,436

399,599

484,275

Days Sales Outstanding

42

42

41

42

Capital Expenditures  

56,110

95,577

177,750

278,825

Debt (4)

759,624

855,188

UHS Shareholders Equity

1,943,572

1,728,194

Debt / Total Capitalization (4)

28.1%

33.1%

Debt / EBITDA  (2) (4)

1.14

1.31

Debt / Cash From Operations  (2) (4)

1.69

1.52

Acute Care EBITDAR Margin  (3)

12.9%

13.1%

14.9%

16.6%

Behavioral Health EBITDAR Margin  (3)

25.7%

24.5%

26.4%

25.1%

(1)  Net of Minority Interest and before prior year self insurance reserve adjustments (net of taxes) booked in 2010 and 2009 and transaction related expenses (net of taxes) booked in 2010

(2)  Latest 4 quarters

(3)  Before Corporate overhead allocation, minority interest and prior year self insurance reserve adjustment booked in 2009

(4)  Net of restricted cash

UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE THREE MONTHS ENDED

SEPTEMBER 30, 2010

AS REPORTED:

ACUTE

BEHAVIORAL HEALTH

09/30/10

09/30/09

%  change

09/30/10

09/30/09

%  change

Hospitals owned and leased

21

21

0.0%

84

84

0.0%

Average licensed beds

5,689

5,465

4.1%

7,983

7,977

0.1%

Patient days

279,523

280,269

-0.3%

537,860

532,228

1.1%

Average daily census

3,038.3

3,046.4

-0.3%

5,846.3

5,785.1

1.1%

Occupancy-licensed beds

53.4%

55.7%

-4.2%

73.2%

72.5%

1.0%

Admissions

64,969

65,082

-0.2%

36,564

35,005

4.5%

Length of stay

4.3

4.3

-0.1%

14.7

15.2

-3.3%

Inpatient revenue

$2,687,619

$2,380,103

12.9%

$550,613

$524,713

4.9%

Outpatient revenue

1,246,661

1,038,772

20.0%

78,354

68,577

14.3%

Total patient revenue

3,934,280

3,418,875

15.1%

628,967

593,290

6.0%

Other revenue

16,878

17,229

-2.0%

6,875

7,357

-6.6%

Gross hospital revenue

3,951,158

3,436,104

15.0%

635,842

600,647

5.9%

Total deductions

2,985,351

2,488,456

20.0%

285,114

271,315

5.1%

Net hospital revenue

$965,807

$947,648

1.9%

$350,728

$329,332

6.5%

SAME FACILITY:

ACUTE 

BEHAVIORAL HEALTH (1)

09/30/10

09/30/09

%  change

09/30/10

09/30/09

%  change

Hospitals owned and leased

21

21

0.0%

82

82

0.0%

Average licensed beds

5,689

5,465

4.1%

7,880

7,825

0.7%

Patient days

279,523

280,269

-0.3%

534,630

529,442

1.0%

Average daily census

3,038.3

3,046.4

-0.3%

5,811.2

5,754.8

1.0%

Occupancy-licensed beds

53.4%

55.7%

-4.2%

73.7%

73.5%

0.3%

Admissions

64,969

65,082

-0.2%

36,134

34,993

3.3%

Length of stay

4.3

4.3

-0.1%

14.8

15.1

-2.2%

(1) Ascent, Crescent Pines and the Hope program are excluded in both current and prior years

Coastal Behavioral is included in March 1st thru year to date. Centennial Peaks is  included in July 1st thru year to date. Springwoods Behavioral is included in September 1st thru year to date.

UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE NINE MONTHS ENDED

SEPTEMBER 30, 2010

AS REPORTED:

ACUTE

BEHAVIORAL HEALTH

09/30/10

09/30/09

%  change

09/30/10

09/30/09

%  change

Hospitals owned and leased

21

21

0.0%

84

84

0.0%

Average licensed beds

5,689

5,465

4.1%

7,978

7,556

5.6%

Patient days

871,525

877,231

-0.7%

1,621,239

1,575,698

2.9%

Average daily census

3,192.4

3,213.3

-0.7%

5,938.6

5,771.8

2.9%

Occupancy-licensed beds

56.1%

58.8%

-4.6%

74.4%

76.4%

-2.6%

Admissions

199,815

199,226

0.3%

109,494

103,025

6.3%

Length of stay

4.4

4.4

-0.9%

14.8

15.3

-3.2%

Inpatient revenue

$8,095,552

$7,430,016

9.0%

$1,649,535

$1,552,640

6.2%

Outpatient revenue

3,535,220

3,081,566

14.7%

238,318

209,218

13.9%

Total patient revenue

11,630,772

10,511,582

10.6%

1,887,853

1,761,858

7.2%

Other revenue

51,868

54,399

-4.7%

22,507

23,608

-4.7%

Gross hospital revenue

11,682,640

10,565,981

10.6%

1,910,360

1,785,466

7.0%

Total deductions

8,753,512

7,705,648

13.6%

853,442

801,392

6.5%

Net hospital revenue

$2,929,128

$2,860,333

2.4%

$1,056,918

$984,074

7.4%

SAME FACILITY:

ACUTE

BEHAVIORAL HEALTH (1)

09/30/10

09/30/09

%  change

09/30/10

09/30/09

%  change

Hospitals owned and leased

21

21

0.0%

82

82

0.0%

Average licensed beds

5,689

5,465

4.1%

7,798

7,724

1.0%

Patient days

871,525

877,231

-0.7%

1,603,138

1,565,737

2.4%

Average daily census

3,192.4

3,213.3

-0.7%

5,872.3

5,735.3

2.4%

Occupancy-licensed beds

56.1%

58.8%

-4.6%

75.3%

74.3%

1.4%

Admissions

199,815

199,226

0.3%

106,953

102,972

3.9%

Length of stay

4.4

4.4

-0.9%

15.0

15.2

-1.4%

(1) Ascent, Crescent Pines and the Hope program are excluded in both current and prior years

    Coastal Behavioral is included in March 1st thru year to date. Centennial Peaks is  included in July 1st thru year to date. Springwoods Behavioral is included in September 1st thru year to date.

SOURCE Universal Health Services, Inc.



RELATED LINKS

http://www.uhsinc.com