A Hospital Pro The Pros Trust

Hospital-management companies have been ice cold despite the sizzling stock market. Their earnings are down, and several states have uncovered unethical practices by some hospitals, including misdiagnoses, mistreatment of patients, and fraudulent insurance claims. But one company, Universal Health Services, is starting to attract smart-money investors. Thanks to Chairman and CEO Alan Miller's ability to keep the company profitable--and out of trouble--big investors such as Julian Robertson, Lee and Perry Bass, Airlie Group, and Neuberger & Berman have bought in.

Miller has a top-notch record in hospital management. He founded American Medicorp, where he was chairman and CEO until Humana acquired it in a hostile takeover in 1978. Embittered by his defeat, Miller set up Universal in 1979. He controls 50% of the voting shares.