Universal Health Services, Inc. Reports 2012 Fourth Quarter and Full Year Earnings and 2013 Earnings Guidance

  Universal Health Services, Inc. Reports 2012 Fourth Quarter and Full Year
                     Earnings and 2013 Earnings Guidance

Consolidated Results of Operations, As Reported - Three and twelve-month
periods ended December 31, 2012 and 2011:

PR Newswire

KING OF PRUSSIA, Pa., Feb. 28, 2013

KING OF PRUSSIA, Pa., Feb. 28, 2013 /PRNewswire/ --Universal Health Services,
Inc. (NYSE: UHS) announced today that its reported net income attributable to
UHS was $135.5 million, or $1.39 per diluted share, during the fourth quarter
of 2012 as compared to $95.3 million, or $.98 per diluted share, during the
comparable quarter of 2011. Net revenues increased 6% to $1.76 billion during
the fourth quarter of 2012 as compared to $1.66 billion during the fourth
quarter of 2011.

Reported net income attributable to UHS was $443.4 million, or $4.53 per
diluted share, during the twelve-month period of 2012 as compared to $398.2
million, or $4.04 per diluted share, during the 2011 full year period. Net
revenues increased 3% to $6.96 billion during the twelve-month period of 2012
as compared to $6.76 billion during the comparable 2011 twelve-month period.

Consolidated Results of Operations, As Adjusted – Three-month periods ended
December 31, 2012 and 2011:
For the three-month period ended December 31, 2012, our adjusted net income
attributable to UHS, as calculated on the attached Schedule of Non-GAAP
Supplemental Consolidated Statements of Income Information ("Supplemental
Schedule"), was $98.0 million, or $1.00 per diluted share, as compared to
$88.8 million, or $.91 per diluted share, during the fourth quarter of 2011.


As reflected on the Supplemental Schedule, included in our reported results
during the fourth quarter of 2012, was an aggregate net favorable after-tax
impact of $37.4 million, or $.39 per diluted share, consisting of: (i) a
favorable after-tax impact of approximately $15.5 million, or $.16 per diluted
share, resulting from a reduction to our professional and general liability
self-insurance reserves relating to years prior to 2012, based upon a reserve
analysis; (ii) a favorable after-tax impact of approximately $16.4 million, or
$.17 per diluted share, resulting from the gain realized on the sale of Auburn
Regional Medical Center which was divested in October, 2012, and; (iii) a
favorable after-tax impact of approximately $5.5 million, or $.06 per diluted
share, related to the incentive income and expenses recorded in connection
with the implementation of electronic health records ("EHR") applications at
our acute care hospitals (as discussed below in Accounting for HITECH Act
incentive income and EHR expenses).

As reflected on the attached Supplemental Schedule, included in our net income
attributable to UHS during the three-month period ended December 31, 2011, was
the favorable after-tax impact of $6.5 million, or $.07 per diluted share,
resulting from a reduction to our professional and general liability
self-insurance reserves relating to years prior to 2011, based upon a reserve
analysis.

Consolidated Results of Operations, As Adjusted – Twelve-month periods ended
December 31, 2012 and 2011:
For the twelve-month period ended December 31, 2012, our adjusted net income
attributable to UHS, as calculated on the attached Supplemental Schedule, was
$406.4 million, or $4.15 per diluted share, as compared to $391.7 million, or
$3.97 per diluted share, during the comparable twelve-month period of
2011.

As reflected on the Supplemental Schedule, included in our reported results
during the twelve-month period ended December 31, 2012 was a net favorable
aggregate after-tax impact of approximately $37.0 million, or $.38 per diluted
share, consisting of the following:

  oa favorable after-tax impact of approximately $15.5 million resulting from
    a reduction to our professional and general liability self-insurance
    reserves relating to years prior to 2012, based upon a reserve analysis;
  oa favorable after-tax impact of approximately $16.4 million resulting from
    the gain realized on the sale of Auburn Regional Medical Center;
  oa favorable after-tax impact of approximately $1.9 million, recorded in
    connection with the implementation of EHR applications as discussed below
    in Accounting for HITECH Act incentive income and EHR expenses;
  oa favorable after-tax impact of $18.8 million resulting from an aggregate
    cash payment of approximately $36 million received by us in connection an
    agreement entered into with the United States Department of Health and
    Human Services, the Secretary of Health and Human Services, and the
    Centers for Medicare and Medicaid Services (referred to collectively as
    "HHS"). After reductions for estimated related expenses and the portion
    attributable to third-party non-controlling ownership interests, this
    agreement, which favorably impacted our pre-tax consolidated financial
    results by $30.2 million during the first quarter of 2012, was part of an
    industry-wide settlement with HHS related to litigation that was pending
    for several years contending that acute care hospitals in the U.S. were
    underpaid from the Medicare inpatient prospective payment system during a
    number of prior years;
  oa favorable after-tax impact of $4.3 million recorded during the first
    quarter of 2012 representing the 2011 portion of the net Medicaid
    supplemental reimbursements earned pursuant to the Oklahoma Supplemental
    Hospital Offset Payment Program;
  oan aggregate unfavorable after-tax impact of $5.1 million recorded during
    the first quarter of 2012 resulting from: (i) the revised Supplemental
    Security Income ratios utilized for calculating Medicare disproportionate
    share hospital reimbursements for federal fiscal years 2006 through 2009
    ($2.4 million unfavorable after-tax impact), and; (ii) the write-off of
    receivables related to revenues recorded during 2011 at two of our acute
    care hospitals located in Florida resulting from reductions in certain
    county reimbursements due to reductions in federal matching
    Inter-Governmental Transfer funds ($2.7 million unfavorable after-tax
    impact);
  oa net favorable after-tax impact of $3.4 million consisting primarily of
    the 2011 portion of net Medicaid supplemental revenues recorded during the
    second quarter of 2012, and;
  oan unfavorable after-tax charge of $18.1 million resulting from the
    write-off of deferred financing costs related to the portion of our Term
    Loan B credit facility that was extinguished during the third quarter of
    2012.

As indicated on the attached Supplemental Schedule, included in our net income
attributable to UHS during the year ended December 31, 2011, was the favorable
after-tax impact of $6.5 million, or $.07 per diluted share, resulting from a
reduction to our professional and general liability self-insurance reserves
relating to years prior to 2011.

Acute Care Services – Three and twelve-month periods ended December 31, 2012
and 2011:
During the fourth quarter of 2012, at our acute care hospitals owned during
both periods ("same facility basis"), adjusted admissions (adjusted for
outpatient activity) increased 1.7% and adjusted patient days increased 1.4%,
as compared to the fourth quarter of 2011. Net revenues at these facilities
increased 3.1% during the fourth quarter of 2012 as compared to the comparable
quarter of the prior year. At these facilities, net revenue per adjusted
admission increased 1.4% while net revenue per adjusted patient day increased
1.7% during the fourth quarter of 2012 as compared to the comparable quarter
of the prior year. On a same facility basis, the operating margin at our acute
care hospitals decreased to 14.4% during the fourth quarter of 2012 as
compared to 15.5% during the fourth quarter of 2011. We define operating
margin as net revenues less salaries, wages and benefits, other operating
expenses and supplies expense (excluding the impact of the items mentioned
above and excluding the EHR impact, as indicated on the Supplemental
Schedule).

During the twelve-months ended December 31, 2012, at our acute care hospitals
on a same facility basis, adjusted admissions increased 0.2% and adjusted
patient days increased 0.5%, as compared to the comparable twelve-month period
of 2011. Net revenues at these facilities increased 0.4% during the full year
of 2012 as compared to 2011. At these facilities, net revenue per adjusted
admission increased 0.2% while net revenue per adjusted patient day decreased
0.1% during the twelve month period of 2012, as compared to 2011. The
operating margin at our acute care hospitals owned during both years decreased
to 15.8% during 2012, as compared to 17.2% during 2011.

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 $206 million and $248
million during the three-month periods ended December 31, 2012 and 2011,
respectively, and $1.05 billion and $956 million during the twelve-month
periods ended December 31, 2012 and 2011, respectively.

Behavioral Health Care Services – Three and twelve-month periods ended
December 31, 2012 and 2011:
During the fourth quarter of 2012, at our behavioral health care facilities on
a same facility basis, adjusted admissions increased 5.0% while adjusted
patient days increased 0.5%, as compared to the fourth quarter of 2011. Net
revenues at these facilities increased 4.5% during the fourth quarter of 2012,
as compared to the comparable quarter in 2011. At these facilities, net
revenue per adjusted admission decreased 0.5% while net revenue per adjusted
patient day increased 4.0% during the fourth quarter of 2012 over the
comparable quarter in 2011. The operating margin at our behavioral health care
facilities owned during both periods increased to 27.6% during the fourth
quarter of 2012, as compared to 25.3% during the fourth quarter of 2011.

During the twelve-months ended December 31, 2012, at our behavioral health
care facilities on a same facility basis, adjusted admissions increased 5.0%
while adjusted patient days increased 1.0%, as compared to the full year of
2011. Net revenues at these facilities increased 4.3% during the twelve-months
of 2012, as compared to the comparable twelve-month period of 2011. At these
facilities, net revenue per adjusted admission decreased 0.7% while net
revenue per adjusted patient day increased 3.2% during the full year of 2012
over 2011. The operating margin at our behavioral health care facilities owned
during both years increased to 27.7% during 2012 as compared to 26.3% during
2011.

Accounting for HITECH Act incentive income and EHR expenses:
The health information technology provisions of the American Recovery and
Reinvestment Act (referred to as the "HITECH Act") established criteria
related to the "meaningful use" of electronic health records ("EHR") for acute
care hospitals and established requirements for the Medicare and Medicaid EHR
payment incentive programs. 

During 2011, we began implementing EHR applications at certain of our acute
care hospitals and will continue to do so, on a hospital-by-hospital basis,
until completion which is scheduled to occur by the end of June, 2013. As of
December 31, 2012, EHR applications have been implemented at fourteen of our
acute care hospitals. Our acute care hospitals are eligible for Medicare and
Medicaid EHR incentive payments upon implementation of the EHR application,
assuming they meet the "meaningful use" criteria. As of December 31, 2012,
eleven hospitals met the "meaningful use" criteria.

As reflected on the Supplemental Schedule, our consolidated results of
operations for the three-month period ended December 31, 2012 includes the
favorable after-tax impact of approximately $5.5 million, or $.06 per diluted
share, recorded in connection with the implementation of EHR applications.
This favorable impact, which on a pre-tax basis amounted to $8.9 million,
consists of $17.5 million of EHR incentive income offset by $3.4 million of
salaries, wages, benefits and other operating expenses and $5.2 million of
depreciation and amortization expense.

As reflected on the Supplemental Schedule, our consolidated results of
operations for the year ended December 31, 2012 includes the favorable
after-tax impact of approximately $1.9 million, or $.02 per diluted share,
recorded in connection with the implementation of EHR applications. This
favorable impact, which on a pre-tax basis amounted to $3.0 million, including
a $700,000 benefit from the net expense attributable to third-party,
non-controlling ownership interests, consists of $30.0 million of EHR
incentive income offset by $14.4 million of salaries, wages, benefits and
other operating expenses and $13.3 million of depreciation and amortization
expense.

During 2013, based upon our remaining scheduled EHR implementations and
anticipated "meaningful use" qualifications, we expect to record approximately
$57 million of EHR incentive income and approximately $36 million of
EHR-related incremental expenses (including $29 million of depreciation and
amortization expense) resulting in a net favorable after-tax impact of
approximately $13 million, or $.13 per diluted share.

2013 Full Year Guidance:
Excluding the favorable $.13 per diluted share EHR impact mentioned above, our
estimated range of net income attributable to UHS for the year ended December
31, 2013, is $4.35 to $4.50 per diluted share. This guidance range represents
an increase of approximately 5% to 8% over the adjusted net income
attributable to UHS of $4.15 per diluted share for the year ended December 31,
2012, as calculated on the attached supplemental schedule, and as discussed
above.

During 2013, our net revenues are estimated to increase approximately 6% to
$7.41 billion, as compared to $6.96 billion during 2012.

This guidance range excludes the impact of items, if applicable, 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 material amounts that may be reflected
in our financial statements that relate to prior periods. It is also subject
to certain conditions including those as set forth below in General
Information, Forward-Looking Statements and Risk Factors and Non-GAAP
Financial Measures.

Acquisition of Ascend Health Corporation:
As previously announced, we completed the acquisition of Ascend Health
Corporation ("Ascend") in October, 2012. Ascend was the largest private
behavioral health provider with 9 owned or leased freestanding inpatient
facilities located in 5 states including Texas, Arizona, Utah, Oregon and
Washington.

Conference call information:
We will hold a conference call for investors and analysts at 9:00 a.m. eastern
time on March 1, 2013. The dial-in number is 1-877-648-7971.

A live broadcast of the conference call will be available on our website at
www.uhsinc.com. A replay of the call will follow shortly after conclusion of
the live call and will be available for one full year.

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 acute care and behavioral health hospitals and
ambulatory centers nationwide and in Puerto Rico and the U.S. Virgin Islands.
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, 2012), may cause the results to differ
materially from those anticipated in the forward-looking statements. The
operating pressures that we continue to experience in many of our acute care
markets has increased the volatility of our financial results making
estimation of future results more challenging. 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.

During the first quarter of 2012, we adopted the Financial Accounting
Standards Board's Accounting Standards Update No.2011-07, "Health Care
Entities (Topic 954): Presentation and Disclosure of Patient Service Revenue,
Provision for Bad Debts, and the Allowance for Doubtful Accounts for Certain
Health Care Entities," which required health care entities to change the
presentation in their statement of operations by reclassifying the provision
for bad debts associated with patient service revenue from an operating
expense to a deduction from patient service revenue (net of contractual
allowances and discounts). As a result, the provision for doubtful accounts
for our acute care and behavioral health care facilities is reflected as a
deduction for net revenues in the accompanying consolidated statements of
income for the three and twelve-month periods ended December 31, 2012 and
2011. The adoption of this standard had no impact on our financial position or
results of operations.

As mentioned above, our acute care hospitals may qualify for EHR incentive
payments upon implementation of an EHR application assuming they meet the
"meaningful use" criteria. However, there can be no assurance that we (our
acute care hospitals) will ultimately qualify for these incentive payments
and, should we qualify, we are unable to quantify the amount of incentive
payments we may receive since the amounts are dependent upon various factors
including the implementation timing at each hospital. Should we qualify for
incentive payments, there may be timing differences in the recognition of the
incentive income and expenses recorded in connection with the implementation
of the EHR application which may cause material period-to-period changes in
our future results of operations. Hospitals that do not qualify as a
meaningful user of EHR by 2015 are subject to a reduced market basket update
to the inpatient prospective payment system standardized amount in 2015 and
each subsequent fiscal year. Although we believe that our acute care hospitals
will be in compliance with the EHR standards by 2015, there can be no
assurance that all of our facilities will be in compliance and therefore not
subject to the penalty provision of the HITECH Act.

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, costs related to
extinguishment of debt, 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, 2012. 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.



Universal Health Services, Inc.
Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
                                Three months            Twelve months
                                ended December 31,      ended December 31,
                                2012        2011        2012        2011
Net revenues before provision   $1,969,395  $1,803,530  $7,688,071  $7,356,798
for doubtful accounts
 Less: Provision for doubtful  204,468     140,534     726,671     596,576
accounts
Net revenues                    1,764,927   1,662,996   6,961,400   6,760,222
Operating charges:
 Salaries, wages and benefits 875,865     833,808     3,440,917   3,326,378
 Other operating expenses     322,790     323,201     1,381,838   1,353,693
 Supplies expense             204,697     201,832     799,621     805,489
 Depreciation and             80,619      73,383      302,426     287,211
amortization
 Lease and rental expense     23,979      21,822      94,885      90,323
 Electronic health records    (17,532)    -           (30,038)    -
incentive income
 Costs related to             -           -           29,170      -
extinguishment of debt
                                1,490,418   1,454,046   6,018,819   5,863,094
Income from operations          274,509     208,950     942,581     897,128
Interest expense, net           41,113      46,115      178,918     200,792
Income before income taxes      233,396     162,835     763,663     696,336
Provision for income taxes      85,736      54,828      274,616     247,466
Net income                      147,660     108,007     489,047     448,870
Less: Income attributable to
noncontrolling interests        12,199      12,736      45,601      50,703
Net income attributable to UHS  $135,461    $95,271     $443,446    $398,167
Basic earnings per share        $1.39       $0.99       $4.57       $4.09
attributable to UHS (a)
Diluted earnings per share      $1.39       $0.98       $4.53       $4.04
attributable to UHS (a)



Universal Health Services, Inc.
Footnotes to Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
                                        Three months        Twelve months
                                        ended December 31,  ended December 31,
                                        2012       2011     2012      2011
(a) Earnings per share calculation:
Basic and diluted:
Net income attributable to UHS          $135,461   $95,271  $443,446  $398,167
Less: Net income attributable to        (118)      (81)     (497)     (521)
unvested restricted share grants
Net income attributable to UHS - basic  $135,343   $95,190  $442,949  $397,646
and diluted
Weighted average number of common       97,181     96,455   96,821    97,199
shares - basic
Basic earnings per share attributable   $1.39      $0.99    $4.57     $4.09
to UHS:
Weighted average number of common       97,181     96,455   96,821    97,199
shares
Add: Other share equivalents            530        969      890       1,338
Weighted average number of common       97,711     97,424   97,711    98,537
shares and equiv. - diluted
Diluted earnings per share attributable $1.39      $0.98    $4.53     $4.04
to UHS:



Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Consolidated Statements of Income
Information ("Supplemental Schedule")
For the three months ended December 31, 2012 and 2011
(in thousands, except per share amounts)
(unaudited)
Calculation of "EBITDA"
                                     Three months ended   Three months ended
                                     December 31, 2012    December 31, 2011
Net revenues before provision for    $1,969,395           $1,803,530
doubtful accounts
 Less: Provision for doubtful       204,468              140,534
accounts
Net revenues                         1,764,927   100.0%   1,662,996   100.0%
Operating charges:
 Salaries, wages and benefits      875,865     49.6%    833,808     50.1%
 Other operating expenses          322,790     18.3%    323,201     19.4%
 Supplies expense                  204,697     11.6%    201,832     12.1%
 EHR incentive income              (17,532)    -1.0%    -           0.0%
                                     1,385,820   78.5%    1,358,841   81.7%
Operating income/margin ("EBITDAR")  379,107     21.5%    304,155     18.3%
 Lease and rental expense          23,979               21,822
 Income attributable to            12,199               12,736
noncontrolling interests
Earnings before, depreciation and
amortization, interest expense, and  342,929     19.4%    269,597     16.2%
income taxes ("EBITDA")
 Depreciation and amortization     80,619               73,383
 Costs related to extinguishment   -                    -
of debt
 Interest expense, net             41,113               46,115
Income before income taxes          221,197              150,099
Provision for income taxes           85,736               54,828
Net income attributable to UHS       $135,461             $95,271
Calculation of Adjusted Net Income Attributable to UHS
                                     Three months ended   Three months ended
                                     December 31, 2012    December 31, 2011
                                                 Per                  Per
                                     Amount      Diluted  Amount      Diluted
                                                 Share                Share
Calculation of Adjusted Net Income
Attributable to UHS - including and
excluding EHR impact:
Net income attributable to UHS       $135,461    $1.39    $95,271     $0.98
Plus/minus adjustments:
 Reduction of reserves relating to
prior years for professional
 and general liability
self-insured claims, net of income   (15,516)    (0.16)   (6,477)     ($0.07)
taxes
 Gain on sale of assets and         (16,417)    (0.17)   -           -
business, net of income taxes
Subtotal after-tax adjustments to    (31,933)    (0.33)   (6,477)     (0.07)
net income attributable to UHS
Adjusted net income attributable to
UHS - including Electronic Health    $103,528    $1.06    $88,794     $0.91
Records ("EHR") impact
Plus/minus impact of EHR
implementation:
EHR-related incentive income,        (17,532)
pre-tax
EHR-related salaries, wages and      3,594
benefits, pre-tax
EHR-related other operating costs,   (173)
pre-tax
EHR-related depreciation &           5,191
amortization, pre-tax
EHR-related minority interest in
earnings of consolidated entities,   53
pre-tax
Income tax provision on EHR-related  3,357
items
After-tax impact of EHR-related      (5,510)     (0.06)   -           -
items
Adjusted net income attributable to  $98,018     $1.00    $88,794     $0.91
UHS



Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Consolidated Statements of Income
Information ("Supplemental Schedule")
For the twelve months ended December 31, 2012 and 2011
(in thousands, except per share amounts)
(unaudited)
Calculation of "EBITDA"
                                     Twelve months ended  Twelve months ended
                                     December 31, 2012    December 31, 2011
Net revenues before provision for    $7,688,071           $7,356,798
doubtful accounts
 Less: Provision for doubtful       726,671              596,576
accounts
Net revenues                         6,961,400   100.0%   6,760,222   100.0%
Operating charges:
 Salaries, wages and benefits      3,440,917   49.4%    3,326,378   49.2%
 Other operating expenses          1,381,838   19.9%    1,353,693   20.0%
 Supplies expense                  799,621     11.5%    805,489     11.9%
 EHR incentive income              (30,038)    -0.4%    -           0.0%
                                     5,592,338   80.3%    5,485,560   81.1%
Operating income/margin ("EBITDAR")  1,369,062   19.7%    1,274,662   18.9%
 Lease and rental expense          94,885               90,323
 Income attributable to            45,601               50,703
noncontrolling interests
Earnings before, depreciation and
amortization, interest expense, and  1,228,576   17.6%    1,133,636   16.8%
income taxes ("EBITDA")
 Depreciation and amortization     302,426              287,211
 Costs related to extinguishment   29,170               -
of debt
 Interest expense, net             178,918              200,792
Income before income taxes          718,062              645,633
Provision for income taxes           274,616              247,466
Net income attributable to UHS       $443,446             $398,167
Calculation of Adjusted Net Income Attributable to UHS
                                     Twelve months ended  Twelve months ended
                                     December 31, 2012    December 31, 2011
                                                 Per                  Per
                                     Amount      Diluted  Amount      Diluted
                                                 Share                Share
Calculation of Adjusted Net Income
Attributable to UHS - including and
excluding EHR impact:
Net income attributable to UHS       $443,446    $4.53    $398,167    $4.04
Plus/minus adjustments:
 Medicare Rural Floor settlement,   (18,753)
net of income taxes
 Oklahoma SHOPP Medicaid
reimbursements related to prior
years,                               (4,329)

 net of income taxes
 Impact of revised SSI ratios and
write-off Florida county
receivables,                        5,149

  net of income taxes
 Net Medicaid reimbursements
related to prior years, net of       (3,417)

 income taxes
 Costs related to extinguishment of 18,126
debt, net of income taxes
 Reduction of reserves relating to
prior years for professional
and general liability
self-insured claims, net of income   (15,516)             (6,477)
taxes
 Gain on sale of assets and         (16,417)             -
business, net of income taxes
Subtotal after-tax adjustments to    (35,157)    (0.36)   (6,477)     (0.07)
net income attributable to UHS
Adjusted net income attributable to
UHS - including Electronic Health    $408,289    $4.17    $391,690    $3.97
Records ("EHR") impact
Plus/minus impact of EHR
implementation:
EHR-related incentive income,        (30,038)
pre-tax
EHR-related salaries, wages and      14,316
benefits, pre-tax
EHR-related other operating costs,   141
pre-tax
EHR-related depreciation &           13,293
amortization, pre-tax
EHR-related minority interest in
earnings of consolidated entities,   (722)
pre-tax
Income tax provision on EHR-related  1,140
items
After-tax impact of EHR-related      (1,870)     (0.02)   -           -
items
Adjusted net income attributable to  $406,419    $4.15    $391,690    $3.97
UHS



Universal Health Services, Inc.
Consolidated Statements of Comprehensive Income
(in thousands)
(unaudited)
                                       Three months        Twelve months
                                       ended December 31,  ended December 31,
                                       2012      2011      2012      2011
Net income                             $147,660  $108,007  $489,047  $448,870
Other comprehensive income (loss):
 Unrealized derivative gains (loss)  4,895     2,159     6,677     (37,477)
on cash flow hedges
 Amortization of terminated hedge    (84)      (84)      (336)     (336)
 Minimum pension liability           4,986     (12,397)  4,986     (12,397)
Other comprehensive (loss) income      9,797     (10,322)  11,327    (50,210)
before tax
Income tax (benefit) expense related
to items of other comprehensive income 3,721     (3,904)   4,306     (19,174)
(loss)
Total other comprehensive (loss)       6,076     (6,418)   7,021     (31,036)
income, net of tax
Comprehensive income                   153,736   101,589   496,068   417,834
Less: Comprehensive income
attributable to noncontrolling         12,199    12,736    45,601    50,703
interests
Comprehensive income attributable to   $141,537  $88,853   $450,467  $367,131
UHS



Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
                                                December 31,    December 31,
                                                2012            2011
Assets
Current assets:
 Cash and cash equivalents                 $ 23,471        $ 41,229
 Accounts receivable, net                    1,067,197       969,802
 Supplies                                    99,000          96,775
 Deferred income taxes                       104,461         108,324
 Other current assets                        87,936          99,859
 Assets of facilities held for sale          25,431          48,916
 Total current assets                  1,407,496       1,364,905
Property and equipment                          5,368,345       5,106,160
Less: accumulated depreciation                  (1,986,110)     (1,818,180)
                                                3,382,235       3,287,980
Other assets:
 Goodwill                                    3,036,765       2,627,602
 Deferred charges                            75,888          111,780
 Other                                       298,459         272,978
                                              $ 8,200,843     $ 7,665,245
Liabilities and Stockholders' Equity
Current liabilities:
 Current maturities of long-term debt      $ 2,589         $ 2,479
 Accounts payable and accrued liabilities    889,557         832,125
 Federal and state taxes                     1,062           0
 Liabilities of facilities held for sale     850             2,329
 Total current liabilities             894,058         836,933
Other noncurrent liabilities                    395,355         401,908
Long-term debt                                  3,727,431       3,651,428
Deferred income taxes                           183,747         209,592
Redeemable noncontrolling interest              234,303         218,266
UHS common stockholders' equity                 2,713,345       2,296,352
Noncontrolling interest                         52,604          50,766
 Total equity                          2,765,949       2,347,118
                                              $ 8,200,843     $ 7,665,245



Universal Health Services, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
                                                          Twelve months
                                                          ended December 31,
                                                          2012       2011
Cash Flows from Operating Activities:
 Net income                                              $489,047   $448,870
 Adjustments to reconcile net income to net
 cash provided by operating activities:
 Depreciation & amortization                             308,690    295,861
 Gains on sales of assets and businesses, net of losses  (27,085)   (452)
 Stock-based compensation expense                        22,518     18,225
Costs related to extinguishment of debt                29,170     0
 Changes in assets & liabilities, net of effects from
 acquisitions and dispositions:
Accounts receivable                                    (71,068)   (134,838)
 Accrued interest                                       152        (3,577)
 Accrued and deferred income taxes                     10,374     85,792
 Other working capital accounts                        28,554     (28,382)
 Other assets and deferred charges                      30,976     37,160
 Other                                                 6,367      (1,387)
 Accrued insurance expense, net of commercial premiums  62,660     83,612
paid
 Payments made in settlement of self-insurance claims   (75,084)   (82,633)
 Net cash provided by operating activities       815,271    718,251
Cash Flows from Investing Activities:
 Property and equipment additions, net of disposals     (363,192)  (285,682)
 Acquisition of property and businesses                 (527,847)  (29,466)
 Proceeds received from sale of assets and businesses   149,311    67,592
 Costs incurred for purchase and implementation of
electronic                                                (54,362)   (38,249)

 health records application
 Return of deposit on terminated purchase agreement     6,500      0
 Net cash used in investing activities           (789,590)  (285,805)
Cash Flows from Financing Activities:
 Reduction of long-term debt                            (849,647)  (381,517)
 Additional borrowings                                  913,500    98,100
 Financing costs                                        (8,283)    (23,608)
 Repurchase of common shares                            (19,154)   (60,482)
 Dividends paid                                         (58,395)   (19,466)
 Issuance of common stock                               5,435      4,779
 Profit distributions to noncontrolling interests       (26,895)   (38,497)
 Net cash used in financing activities           (43,439)   (420,691)
(Decrease) increase in cash and cash equivalents          (17,758)   11,755
Cash and cash equivalents, beginning of period            41,229     29,474
Cash and cash equivalents, end of period                  $23,471    $41,229
Supplemental Disclosures of Cash Flow Information:
 Interest paid                                           $157,415   $176,328
 Income taxes paid, net of refunds                       $264,824   $163,029



 Universal Health Services, Inc.
 Supplemental Statistical Information
(un-audited)
                                         % Change    % Change
                                         Quarter       12 months
                                         Ended         ended
Same Facility:                           12/31/2012    12/31/2012
Acute Care Hospitals
Revenues                                 3.1%          0.4%
Adjusted Admissions                      1.7%          0.2%
Adjusted Patient Days                    1.4%          0.5%
Revenue Per Adjusted                     1.4%          0.2%
Admission
Revenue Per Adjusted                     1.7%          -0.1%
Patient Day
Behavioral Health
Hospitals
Revenues                                 4.5%          4.3%
Adjusted Admissions                      5.0%          5.0%
Adjusted Patient Days                    0.5%          1.0%
Revenue Per Adjusted                     -0.5%         -0.7%
Admission
Revenue Per Adjusted                     4.0%          3.2%
Patient Day
UHS Consolidated           Fourth Quarter Ended        Twelve months Ended
                           12/31/2012    12/31/2011    12/31/2012   12/31/2011
Revenues                   $1,764,927    $1,662,996    $6,961,400   $6,760,222
EBITDA (1)               342,929       269,597       1,228,576    1,133,636
EBITDA Margin (1)          19.4%         16.2%         17.6%        16.8%
Cash Flow From             280,265       155,749       815,271      718,251
Operations
Days Sales                 56            53            56           51
Outstanding
Capital                    81,001        90,278        363,192      285,682
Expenditures
Debt                                                  3,730,020    3,653,907
Shareholders' Equity                                   2,713,345    2,296,352
Debt / Total                                           57.9%        61.4%
Capitalization
Debt / EBITDA                                        3.04         3.22
Debt / Cash From                                       4.58         5.09
Operations
Acute Care EBITDAR         14.4%         15.5%         15.8%        17.2%
Margin (2)
Behavioral Health          27.6%         24.8%         27.6%        25.8%
EBITDAR Margin (2)
(1) Net of Minority Interest and before the items shown on the Supplemental
Schedule.
(2) Before Corporate overhead allocation and minority interest and
adjustments shown on the Supplemental Schedule. Also excludes financial
information for facilities reflected as discontinued operations.



 UNIVERSAL HEALTH SERVICES, INC.
 SELECTED HOSPITAL STATISTICS
 FOR THE THREE MONTHS ENDED
DECEMBER 31, 2012
AS REPORTED:
                              BEHAVIORAL
                    ACUTE (1)                      HEALTH
                    12/31/12    12/31/11   %      12/31/12   12/31/11   %
                                           change                        change
Hospitals owned     23          23         0.0%    185        179        3.4%
and leased
Average licensed    5,620       5,604      0.3%    19,977     19,372     3.1%
beds
Patient days        269,969     269,164    0.3%    1,340,429  1,276,929  5.0%
Average daily       2,934.4     2,925.7    0.3%    14,569.9   13,879.7   5.0%
census
Occupancy-licensed  52.2%       52.2%      0.0%    72.9%      71.6%      1.8%
beds
Admissions          61,213      60,822     0.6%    95,634     86,814     10.2%
Length of stay      4.4         4.4        -0.3%   14.0       14.7       -4.7%
Inpatient revenue   $3,080,223  $2,835,547 8.6%    $1,521,842 $1,353,613 12.4%
Outpatient revenue  1,527,935   1,362,580  12.1%   171,554    153,225    12.0%
Total patient       4,608,158   4,198,127  9.8%    1,693,396  1,506,838  12.4%
revenue
Other revenue       30,406      21,864     39.1%   33,788     34,810     -2.9%
Gross hospital      4,638,564   4,219,991  9.9%    1,727,184  1,541,648  12.0%
revenue
Total deductions    3,596,470   3,263,037  10.2%   814,073    705,662    15.4%
Net hospital
revenue before
 provision for     $1,042,094  $956,954   8.9%    $913,111   $835,986   9.2%
doubtful accounts
Provision for       $179,205    $120,067   49.3%   $25,226    $20,458    23.3%
doubtful accounts
Net hospital        862,889     836,887    3.1%    887,885    815,528    8.9%
revenue
SAME FACILITY:
                               BEHAVIORAL
                    ACUTE (1)                     HEALTH (2)
                    12/31/12    12/31/11   %      12/31/12   12/31/11   %
                                           change                        change
Hospitals owned     23          23         0.0%    172        172        0.0%
and leased
Average licensed    5,620       5,604      0.3%    18,922     18,848     0.4%
beds
Patient days        269,974     269,164    0.3%    1,264,338  1,253,647  0.9%
Average daily       2,934.5     2,925.7    0.3%    13,742.8   13,626.6   0.9%
census
Occupancy-licensed  52.2%       52.2%      0.0%    72.6%      72.3%      0.5%
beds
Admissions          61,213      60,822     0.6%    89,879     85,302     5.4%
Length of stay      4.4         4.4        -0.3%   14.1       14.7       -4.3%
(1) Auburn is excluded in both current and prior years. Hospital count
previously reflected number of licenses we have revised to reflect number of
hospitals.
(2) King George School, Marion, Pennsylvania Clinical School, San Juan
Capestrano,Brook Glen Behavioral Hospital, Jefferson Train, Manatee Palms
Group Homes, the Peaks and the Ascend facilities are excluded in both current
and prior years.



 UNIVERSAL HEALTH SERVICES, INC.
 SELECTED HOSPITAL STATISTICS
 FOR THE TWELVE MONTHS ENDED
DECEMBER 31, 2012
AS REPORTED:
                               BEHAVIORAL
                    ACUTE (1)                       HEALTH
                    12/31/12    12/31/11    %      12/31/12   12/31/11   %
                                            change                        change
Hospitals owned     23          23          0.0%    185        179        3.4%
and leased
Average licensed    5,563       5,566       -0.1%   19,362     19,388     -0.1%
beds
Patient days        1,095,804   1,114,820   -1.7%   5,245,499  5,090,080  3.1%
Average daily       2,994.0     3,054.3     -2.0%   14,332.0   13,945.4   2.8%
census
Occupancy-licensed  53.8%       54.9%       -1.9%   74.0%      71.8%      2.9%
beds
Admissions          245,234     250,278     -2.0%   374,865    356,856    5.0%
Length of stay      4.5         4.5         0.3%    14.0       14.3       -1.9%
Inpatient revenue   $12,406,567 $11,770,248 5.4%    $5,764,370 $5,507,730 4.7%
Outpatient revenue  6,134,615   5,431,146   13.0%   646,177    606,877    6.5%
Total patient       18,541,182  17,201,394  7.8%    6,410,547  6,114,607  4.8%
revenue
Other revenue       99,233      77,476      28.1%   143,061    139,912    2.3%
Gross hospital      18,640,415  17,278,870  7.9%    6,553,608  6,254,519  4.8%
revenue
Total deductions    14,543,716  13,336,401  9.1%    3,002,097  2,867,700  4.7%
Net hospital
revenue before
 provision for     $4,096,699  $3,942,469  3.9%    $3,551,511 $3,386,819 4.9%
doubtful accounts
Provision for       $635,283    $518,512    22.5%   $91,370    $77,957    17.2%
doubtful accounts
Net hospital        3,461,416   3,423,957   1.1%    3,460,141  3,308,862  4.6%
revenue
SAME FACILITY:
                               BEHAVIORAL
                    ACUTE (1)                     HEALTH (2)
                    12/31/12    12/31/11    %      12/31/12   12/31/11   %
                                            change                        change
Hospitals owned     23          23          0.0%    172        172        0.0%
and leased
Average licensed    5,563       5,566       -0.1%   18,864     18,798     0.4%
beds
Patient days        1,095,804   1,114,820   -1.7%   5,110,604  5,060,579  1.0%
Average daily       2,994.0     3,054.3     -2.0%   13,963.4   13,864.6   0.7%
census
Occupancy-licensed  53.8%       54.9%       -1.9%   74.0%      73.8%      0.4%
beds
Admissions          245,234     250,278     -2.0%   364,907    347,757    4.9%
Length of stay      4.5         4.5         0.3%    14.0       14.6       -3.8%
(1) Auburn is excluded in both current and prior years. Hospital count
previously reflected number of licenses we have revised to reflect number of
hospitals.
(2) King George School, Marion, Pennsylvania Clinical School, San Juan
Capestrano, Brook Glen Behavioral Hospital, Jefferson Train, Manatee Palms Group
Homes, the Peaks and the Ascend facilities are excluded in both current and
prior years.



SOURCE Universal Health Services, Inc.

Website: http://www.uhsinc.com
Contact: Steve Filton, Chief Financial Officer, +1-610-768-3300
 
Press spacebar to pause and continue. Press esc to stop.