University General Health System Reports Implementation of Permanent Cost Containment Measures

University General Health System Reports Implementation of Permanent Cost 
Containment Measures 
Annual Cost Reductions and Savings of Over $13 Million Anticipated 
HOUSTON, TX -- (Marketwired) -- 08/05/14 --  University General
Health System, Inc. (OTCQB: UGHS) ("University General"), a
diversified, multi-specialty, integrated, physician-centric general
acute care regional health care delivery system, today announced the
implementation of cost containment measures that are expected to
result in permanent cost reductions and savings in excess of $13
million annually. The cost saving measures included salary and work
force reductions, along with cutbacks in, and/or the elimination of,
certain marketing and other initiatives that previously did not
produce the desired outcomes.  
UGH - Houston implemented an additional $2.7 million in permanent
annualized cost reductions, in addition to previously reported
expense reductions, some of which were seasonal in nature. Hospital
Outpatient Departments accounted for $0.7 million in projected annual
cost savings, UGHS Management Services expects to benefit from $3.1
million in annual expense reductions, Support Services lowered its
costs by $2.2 million annually, and UGH - Dallas reduced expenses on
an annual basis by $4.7 million. Some of these cost savings resulted
from the elimination of nearly 100 jobs within the Company's
operating network. 
"Given the dynamic nature of the health care industry and our
disappointing financial performance in 2013, we determined that
drastic measures were required to remain competitive and restore
profitability," stated Hassan Chahadeh, MD, Chairman and Chief
Executive Officer of University General Health System, Inc. "While
the implementation of these permanent cost-saving measures were often
difficult, they were necessary and we are hopeful they will result in
a positive impact upon our financial results during the balance of
2014 and in future years. We will also continue to focus on strategic
relationships, the divestiture of non-core assets and the elimination
of non-performing assets."  
About University General Health System, Inc. 
University General Health System, Inc. ("University General") is a
diversified, integrated multi-specialty health care provider that
delivers physician-centric, high quality patient-oriented services by
providing timely, innovative health solutions that are uniquely
competitive, efficient, and adaptive in today's health care delivery
environment. The Company currently operates two hospitals, multiple
ambulatory surgical centers, a number of diagnostic imaging, physical
therapy and sleep clinics, and a hyperbaric wound care center in the
Houston and Dallas metropolitan areas. Also, University General owns
three senior living facilities, manages six senior living facilities,
and owns a Support Services company that provides revenue cycle and
luxury facilities management services. 
University General Health System, Inc. is headquartered in Houston,
Texas, and its common stock trades on the OTCQB under the symbol
Forward-Looking Statements  
The information in this news release may include certain
forward-looking statements that are based upon assumptions that in
the future may prove not to have been accurate and are subject to
significant risks and uncertainties, including statements related to
the future financial performance of University General Health System,
Inc. (UGHS). Although UGHS believes that the expectations reflected
in the forward-looking statements are reasonable, it can give no
assurance that such expectations or any of its forward-looking
statements will prove to be correct. Factors that could cause results
to differ include, but are not limited to, successful execution of
growth strategies, product development and acceptance, the impact of
competitive services and pricing, general economic conditions, and
other risks and uncertainties described in UGHS's periodic filings
with the Securities and Exchange Commission.  
For Further Information, Please Contact: 
Donald Sapaugh
University General Health System, Inc.
(713) 375-7557  
R. Jerry Falkner, CFA
RJ Falkner & Company, Inc.
Investor Relations Counsel
(800) 377-9893 
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