Exhibit 99.1

FOR IMMEDIATE RELEASE

October 25, 2023

CONTACT:	Steve Filton
	Chief Financial Officer
	610-768-3300

UNIVERSAL HEALTH SERVICES, INC.

ANNOUNCES 2023 THIRD QUARTER FINANCIAL RESULTS

Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended September 30, 2023 and 2022:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $167.0 million, or $2.40 per diluted share, during the third quarter of 2023, as compared to $182.8 million, or $2.50 per diluted share, during the third quarter of 2022. Net revenues increased by 6.8% to $3.563 billion during the third quarter of 2023, as compared to $3.336 billion during the third quarter of 2022.

As reflected on the Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”), our adjusted net income attributable to UHS during the third quarter of 2023 was $177.5 million, or $2.55 per diluted share, as compared to $185.8 million, or $2.54 per diluted share, during the third quarter of 2022. As reflected on the Supplemental Schedule, included in our reported results were unrealized after-tax losses of $10.5 million, or $.15 per diluted share ($13.8 million pre-tax), during the third quarter of 2023, and $3.0 million, or $.04 per diluted share ($3.9 million pre-tax) during the third quarter of 2022. These unrealized losses, which are included in “Other (income) expense, net”, resulted from decreases in the market value of certain equity securities.

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization (“EBITDA net of NCI”, NCI is net income attributable to noncontrolling interests), was $410.1 million during the third quarter of 2023, as compared to $421.7 million during the third quarter of 2022. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was $421.5 million during the third quarter of 2023, as compared to $427.8 million during the third quarter of 2022.

Consolidated Results of Operations, As Reported and As Adjusted – Nine-month periods ended September 30, 2023 and 2022:

Reported net income attributable to UHS was $501.4 million, or $7.09 per diluted share, during the first nine months of 2023, as compared to $500.8 million, or $6.71 per diluted share, during the first nine months 2022. Net revenues increased by 6.3% to $10.578 billion during the first nine months of 2023, as compared to $9.952 billion during the comparable period of 2022.

As reflected on the Supplemental Schedule, our adjusted net income attributable to UHS during the first nine months of 2023, was $524.5 million, or $7.42 per diluted share, as compared to $513.1 million, or $6.88 per diluted share, during the nine-month period ended September 30, 2022.

As reflected on the Supplemental Schedule, included in our reported results were unrealized after-tax losses of $23.0 million, or $.33 per diluted share, ($30.1 million pre-tax) during the first nine months of 2023 and $12.4 million, or $.17 per diluted share, ($16.1 million pre-tax) during the first nine months of 2022. These unrealized losses, which are included in “Other (income) expense, net”, resulted from decreases in the market value of certain equity securities.

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization (“EBITDA net of NCI”), was $1.237 billion during the first nine months of 2023, as compared to $1.175 billion during the first nine months of 2022. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was

$1.268 billion during the first nine months of 2023, as compared to $1.190 billion during the comparable period of 2022.

Acute Care Services – Three and nine-month periods ended September 30, 2023 and 2022:

During the third quarter of 2023, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased by 6.8% while adjusted patient days increased by 3.8%, as compared to the third quarter of 2022. At these facilities, during the third quarter of 2023, net revenue per adjusted admission increased by 0.4% while net revenue per adjusted patient day increased by 3.3%, as compared to the third quarter of 2022. Net revenues generated from our acute care services, on a same facility basis, increased by 7.5% during the third quarter of 2023, as compared to the third quarter of 2022.

During the nine-month period ended September 30, 2023, at our acute care hospitals on a same facility basis, adjusted admissions increased by 8.3% while adjusted patient days increased by 4.8%, as compared to the first nine months of 2022. At these facilities, during the first nine months of 2023, net revenue per adjusted admission decreased by 2.0% while net revenue per adjusted patient day increased by 1.3%, as compared to the first nine months of 2022. Net revenues generated from our acute care services, on a same facility basis, increased by 6.9% during the first nine months of 2023, as compared to the comparable period of 2022.

Behavioral Health Care Services – Three and nine-month periods ended September 30, 2023 and 2022:

During the third quarter of 2023, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.8% while adjusted patient days increased by 1.1%, as compared to the third quarter of 2022. At these facilities, during the third quarter of 2023, net revenue per adjusted admission increased by 6.8% and net revenue per adjusted patient day increased by 6.5%, as compared to the third quarter of 2022. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 7.6% during the third quarter of 2023, as compared to the third quarter of 2022.

During the nine-month period ended September 30, 2023, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 3.8% while adjusted patient days increased by 2.4%, as compared to the first nine months of 2022. At these facilities, during the first nine months of 2023, net revenue per adjusted admission increased by 4.4% and net revenue per adjusted patient day increased by 5.9%, as compared to the first nine months of 2022. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 8.3% during the first nine months of 2023, as compared to the comparable period of 2022.

Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

During the nine-month period ended September 30, 2023, our net cash provided by operating activities was $815 million as compared to $699 million during the first nine months of 2022. Included in the $117 million net increase in our net cash provided by operating activities was a favorable change of $109 million in other working capital accounts due primarily to the timing of disbursements for accrued compensation and accounts payable.

Liquidity:

As of September 30, 2023, we had $721 million of aggregate available borrowing capacity pursuant to our $1.2 billion revolving credit facility, net of outstanding borrowings and letters of credit.

Stock Repurchase Program:

As of December 31, 2022, we had an aggregate remaining repurchase authorization of approximately $947 million pursuant to our stock repurchase program. Pursuant to the terms of our stock repurchase program, shares of our Class B Common Stock may be repurchased, from time to time as conditions allow, on the open market or in negotiated private transactions.

During the third quarter of 2023, we have repurchased 1.32 million shares at an aggregate cost of approximately $175.1 million (approximately $133 per share) pursuant to the program. During the first nine months of 2023, we have repurchased approximately 2.73 million shares at an aggregate cost of approximately $367.2 million (approximately $135 per share) pursuant to the program.

As of September 30, 2023, we had an aggregate available repurchase authorization of approximately $580 million.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on October 26, 2023. A live webcast of the call will be available on our website at www.uhs.com. To participate via telephone, please register in advance at this link.

Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the call will be available for one full year following the live call.

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

One of the nation’s largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues during 2022 were approximately $13.4 billion. UHS ranked #311 on the Fortune 500; and #434 on Forbes’ list of America’s Largest Public Companies. UHS was again recognized as one of the World’s Most Admired Companies by Fortune.

Our operating philosophy is as effective today as it was upon the Company’s founding in 1979, enabling us to provide compassionate care to our patients and their loved ones. Our strategy includes building or acquiring high quality hospitals in rapidly growing markets, investing in the people and equipment needed to allow each facility to thrive, and becoming the leading healthcare provider in each community we serve.

Headquartered in King of Prussia, PA, UHS has approximately 93,800 employees and, through its subsidiaries, operates 27 inpatient acute care hospitals, 331 inpatient behavioral health facilities, 43 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 39 states, Washington, D.C., the United Kingdom and Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT). For additional information visit www.uhs.com.

This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to the potential impact of COVID-19 on our operations and financial results, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarter ended June 30, 2023 and in Item 1A-Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended December 31, 2022), may cause the results to differ materially from those anticipated in the forward-looking statements. 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.

Many of the factors that could affect our future results are beyond our control or ability to predict, including, but not limited to:

•The nationwide shortage of nurses and other clinical staff and support personnel has been a significant operating issue facing us and other healthcare providers. In some areas, the labor scarcity is putting a strain on our resources and staff, which has required us to utilize higher‑cost temporary labor and pay premiums above standard compensation for essential workers. These factors, which had a material unfavorable impact on our results of operations during 2022, could continue to have an unfavorable material impact on our results of operations for the foreseeable future.

•The impact of the COVID-19 pandemic, which began in March, 2020, has had a material effect on our operations and financial results, at various times, since that time. We cannot predict if there will be future disruptions caused by the COVID‑19 pandemic.

•A significant portion of our revenues are derived from federal and state government programs including the Medicare and Medicaid programs. Payments from these programs are subject to statutory and regulatory changes, administrative rulings, interpretations and determinations, requirements for utilization review, and federal and state funding restrictions. Changes to these programs, if adopted, could materially affect program payments which could materially impact our results of operations.

•The increase in interest rates has substantially increased our borrowings costs and reduced our ability to access the capital markets on favorable terms. Additional increases in interest rates could have a significant unfavorable impact on our future results of operations and the resulting effect on the capital markets could adversely affect our ability to carry out our strategy.

We believe that adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and Adjusted EBITDA net of NCI, 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 of material items impacting our net income attributable to UHS, such as, changes in the market value of shares of certain equity securities and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, 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 attributable to UHS, as determined in accordance with GAAP, and 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-Q for the quarter ended June 30, 2023 and our Report on Form 10-K for the year ended December 31, 2022. 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,
	2023		2022			2023			2022
Net revenues	$	3,562,774		3,336,027		$	10,578,430			9,952,390
Operating charges:
Salaries, wages and benefits		1,784,870		1,677,431			5,308,476			5,061,173
Other operating expenses		941,219		837,241			2,758,484			2,526,060
Supplies expense		378,667		366,337			1,138,950			1,092,403
Depreciation and amortization		137,195		145,874			422,560			433,508
Lease and rental expense		35,466		33,264			105,775			97,075
		3,277,417		3,060,147			9,734,245			9,210,219
Income from operations		285,357		275,880			844,185			742,171
Interest expense, net		53,378		35,653			153,085			83,002
Other (income) expense, net		11,472		6,015			31,797			15,244
Income before income taxes		220,507		234,212			659,303			643,925
Provision for income taxes		52,499		57,401			159,618			157,312
Net income		168,008		176,811			499,685			486,613
Less: Net income (loss) attributable to noncontrolling interests ("NCI")		1,019		(6,003	)		(1,732	)		(14,176	)
Net income attributable to UHS	$	166,989	$	182,814		$	501,417		$	500,789
Basic earnings per share attributable to UHS (a)	$	2.42	$	2.52		$	7.18		$	6.78
Diluted earnings per share attributable to UHS (a)	$	2.40	$	2.50		$	7.09		$	6.71

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,
	2023			2022			2023			2022
(a) Earnings per share calculation:
Basic and diluted:
Net income attributable to UHS	$	166,989		$	182,814		$	501,417		$	500,789
Less: Net income attributable to unvested restricted share grants		(52	)		(179	)		(242	)		(592	)
Net income attributable to UHS - basic and diluted	$	166,937		$	182,635		$	501,175		$	500,197
Weighted average number of common shares - basic		68,867			72,595			69,825			73,769
Basic earnings per share attributable to UHS:	$	2.42		$	2.52		$	7.18		$	6.78
Weighted average number of common shares		68,867			72,595			69,825			73,769
Add: Other share equivalents		757			465			825			743
Weighted average number of common shares and equiv. - diluted		69,624			73,060			70,650			74,512
Diluted earnings per share attributable to UHS:	$	2.40		$	2.50		$	7.09		$	6.71

Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")
For the Three Months ended September 30, 2023 and 2022
(in thousands, except per share amounts)
(unaudited)
Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")
	Three months ended		% Net			Three months ended		% Net
	September 30, 2023		revenues			September 30, 2022		revenues
Net income attributable to UHS	$	166,989				$	182,814
Depreciation and amortization		137,195					145,874
Interest expense, net		53,378					35,653
Provision for income taxes		52,499					57,401
EBITDA net of NCI	$	410,061		11.5	%	$	421,742		12.6	%
Other (income) expense, net		11,472					6,015
Adjusted EBITDA net of NCI	$	421,533		11.8	%	$	427,757		12.8	%
Net revenues	$	3,562,774				$	3,336,027
Calculation of Adjusted Net Income Attributable to UHS
	Three months ended					Three months ended
	September 30, 2023					September 30, 2022
			Per					Per
	Amount		Diluted Share			Amount		Diluted Share
Net income attributable to UHS	$	166,989	$	2.40		$	182,814	$	2.50
Plus/minus after-tax adjustments:
Unrealized loss on equity securities		10,528		0.15			2,974		0.04
Subtotal adjustments		10,528		0.15			2,974		0.04
Adjusted net income attributable to UHS	$	177,517	$	2.55		$	185,788	$	2.54

Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")
For the Nine Months ended September 30, 2023 and 2022
(in thousands, except per share amounts)
(unaudited)
Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")
	Nine months ended		% Net			Nine months ended		% Net
	September 30, 2023		revenues			September 30, 2022		revenues
Net income attributable to UHS	$	501,417				$	500,789
Depreciation and amortization		422,560					433,508
Interest expense, net		153,085					83,002
Provision for income taxes		159,618					157,312
EBITDA net of NCI	$	1,236,680		11.7	%	$	1,174,611		11.8	%
Other (income) expense, net		31,797					15,244
Adjusted EBITDA net of NCI	$	1,268,477		12.0	%	$	1,189,855		12.0	%
Net revenues	$	10,578,430				$	9,952,390
Calculation of Adjusted Net Income Attributable to UHS
	Nine months ended					Nine months ended
	September 30, 2023					September 30, 2022
			Per					Per
	Amount		Diluted Share			Amount		Diluted Share
Net income attributable to UHS	$	501,417	$	7.09		$	500,789	$	6.71
Plus/minus after-tax adjustments:
Unrealized loss on equity securities		23,040		0.33			12,358		0.17
Subtotal adjustments		23,040		0.33			12,358		0.17
Adjusted net income attributable to UHS	$	524,457	$	7.42		$	513,147	$	6.88

Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
	September 30,			December 31,
	2023			2022
Assets
Current assets:
Cash and cash equivalents	$	80,768		$	102,818
Accounts receivable, net		2,234,343			2,017,722
Supplies		214,587			218,517
Other current assets		223,303			198,283
Total current assets		2,753,001			2,537,340
Property and equipment		11,610,188			11,085,852
Less: accumulated depreciation		(5,523,135	)		(5,167,394	)
		6,087,053			5,918,458
Other assets:
Goodwill		3,912,122			3,909,456
Deferred income taxes		99,580			68,397
Right of use assets-operating leases		443,924			454,650
Deferred charges		7,062			6,264
Other		570,728			599,623
Total Assets	$	13,873,470		$	13,494,188
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term debt	$	126,555		$	81,447
Accounts payable and other liabilities		1,783,460			1,760,588
Operating lease liabilities		72,655			67,776
Federal and state taxes		7,145			4,608
Total current liabilities		1,989,815			1,914,419
Other noncurrent liabilities		587,829			487,669
Operating lease liabilities noncurrent		388,550			395,522
Long-term debt		4,796,074			4,726,533
Redeemable noncontrolling interest		4,719			4,695
UHS common stockholders' equity		6,064,915			5,920,582
Noncontrolling interest		41,568			44,768
Total equity		6,106,483			5,965,350
Total Liabilities and Stockholders' Equity	$	13,873,470		$	13,494,188

Universal Health Services, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Nine months
	ended September 30,
	2023			2022
Cash Flows from Operating Activities:
Net income	$	499,685		$	486,613
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization		422,560			433,508
(Gain) loss on sale of assets and businesses		(6,250	)		584
Stock-based compensation expense		65,702			62,741
Changes in assets & liabilities, net of effects from acquisitions and dispositions:
Accounts receivable		(193,108	)		(155,142	)
Accrued interest		60			529
Accrued and deferred income taxes		(33,240	)		(4,900	)
Other working capital accounts		(65,062	)		(173,903	)
Medicare accelerated payments and deferred CARES Act and other grants		1,764			2,921
Other assets and deferred charges		48,985			22,219
Other		13,717			(23,358	)
Accrued insurance expense, net of commercial premiums paid		141,414			134,908
Payments made in settlement of self-insurance claims		(80,861	)		(88,001	)
Net cash provided by operating activities		815,366			698,719
Cash Flows from Investing Activities:
Property and equipment additions		(536,665	)		(569,555	)
Proceeds received from sales of assets and businesses		23,688			12,001
Acquisition of businesses and property		(3,728	)		(18,666	)
(Outflows) inflows from foreign exchange contracts that hedge our net U.K. investment		(7,723	)		177,214
Decrease in capital reserves of commercial insurance subsidiary		0			100
Net cash used in investing activities		(524,428	)		(398,906	)
Cash Flows from Financing Activities:
Repayments of long-term debt		(54,009	)		(194,115	)
Additional borrowings		165,000			705,321
Financing costs		(308	)		(2,541	)
Repurchase of common shares		(385,339	)		(723,384	)
Dividends paid		(41,964	)		(44,192	)
Issuance of common stock		9,841			10,399
Profit distributions to noncontrolling interests		(5,258	)		(5,426	)
(Purchase) sale of ownership interests by (from) minority members		408			(49,089	)
Net cash used in financing activities		(311,629	)		(303,027	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		493			(10,339	)
Decrease in cash, cash equivalents and restricted cash		(20,198	)		(13,553	)
Cash, cash equivalents and restricted cash, beginning of period		200,837			178,934
Cash, cash equivalents and restricted cash, end of period	$	180,639		$	165,381
Supplemental Disclosures of Cash Flow Information:
Interest paid	$	149,247		$	78,992
Income taxes paid, net of refunds	$	191,189		$	182,091
Noncash purchases of property and equipment	$	108,412		$	97,264

Universal Health Services, Inc.
Supplemental Statistical Information
(unaudited)
			% Change	% Change
Same Facility:			Three Months ended	Nine Months ended
			9/30/2023	9/30/2023
Acute Care Services
Revenues			7.5%	6.9%
Adjusted Admissions			6.8%	8.3%
Adjusted Patient Days			3.8%	4.8%
Revenue Per Adjusted Admission			0.4%	-2.0%
Revenue Per Adjusted Patient Day			3.3%	1.3%
Behavioral Health Care Services
Revenues			7.6%	8.3%
Adjusted Admissions			0.8%	3.8%
Adjusted Patient Days			1.1%	2.4%
Revenue Per Adjusted Admission			6.8%	4.4%
Revenue Per Adjusted Patient Day			6.5%	5.9%
UHS Consolidated	Third quarter ended		Nine months ended
	9/30/2023	9/30/2022	9/30/2023	9/30/2022
Revenues	$3,562,774	$3,336,027	$10,578,430	$9,952,390
EBITDA net of NCI	$410,061	$421,742	$1,236,680	$1,174,611
EBITDA Margin net of NCI	11.5%	12.6%	11.7%	11.8%
Adjusted EBITDA net of NCI	$421,533	$427,757	$1,268,477	$1,189,855
Adjusted EBITDA Margin net of NCI	11.8%	12.8%	12.0%	12.0%
Cash Flow From Operations	$161,665	$220,672	$815,366	$698,719
Capital Expenditures	$200,001	$161,593	$536,665	$569,555
Days Sales Outstanding			58	52
Debt			$4,922,629	$4,704,663
UHS' Shareholders Equity			$6,064,915	$5,855,353
Debt / Total Capitalization			44.8%	44.6%
Debt / EBITDA net of NCI (1)			2.97	2.87
Debt / Adjusted EBITDA net of NCI (1)			2.83	2.87
Debt / Cash From Operations (1)			4.42	4.61
(1) Latest 4 quarters.

Universal Health Services, Inc.

Acute Care Hospital Services

For the Three and Nine Months ended

September 30, 2023 and 2022

(in thousands)

Same Facility Basis - Acute Care Hospital Services
	Three months ended						Three months ended					Nine months ended						Nine months ended
	September 30, 2023						September 30, 2022					September 30, 2023						September 30, 2022
	Amount			% of Net Revenues			Amount		% of Net Revenues			Amount			% of Net Revenues			Amount		% of Net Revenues
Net revenues	$	1,965,856			100.0	%	$	1,828,370		100.0	%	$	5,808,205			100.0	%	$	5,432,868		100.0	%
Operating charges:
Salaries, wages and benefits		854,215			43.5	%		801,252		43.8	%		2,493,271			42.9	%		2,412,699		44.4	%
Other operating expenses		543,707			27.7	%		478,221		26.2	%		1,584,820			27.3	%		1,382,250		25.4	%
Supplies expense		324,226			16.5	%		302,162		16.5	%		964,228			16.6	%		904,547		16.6	%
Depreciation and amortization		86,583			4.4	%		92,830		5.1	%		265,021			4.6	%		274,574		5.1	%
Lease and rental expense		24,404			1.2	%		21,847		1.2	%		71,635			1.2	%		62,756		1.2	%
Subtotal-operating expenses		1,833,135			93.2	%		1,696,312		92.8	%		5,378,975			92.6	%		5,036,826		92.7	%
Income from operations		132,721			6.8	%		132,058		7.2	%		429,230			7.4	%		396,042		7.3	%
Interest expense, net		(778	)		(0.0	)%		234		0.0	%		(1,858	)		(0.0	)%		1,350		0.0	%
Other (income) expense, net		(1,045	)		(0.1	)%		384		0.0	%		5,168			0.1	%		806		0.0	%
Income before income taxes	$	134,544			6.8	%	$	131,440		7.2	%	$	425,920			7.3	%	$	393,886		7.3	%
All Acute Care Hospital Services
	Three months ended						Three months ended					Nine months ended						Nine months ended
	September 30, 2023						September 30, 2022					September 30, 2023						September 30, 2022
	Amount			% of Net Revenues			Amount		% of Net Revenues			Amount			% of Net Revenues			Amount		% of Net Revenues
Net revenues	$	2,017,288			100.0	%	$	1,919,678		100.0	%	$	5,993,899			100.0	%	$	5,707,510		100.0	%
Operating charges:
Salaries, wages and benefits		854,587			42.4	%		824,942		43.0	%		2,534,878			42.3	%		2,497,888		43.8	%
Other operating expenses		596,834			29.6	%		535,463		27.9	%		1,731,750			28.9	%		1,550,044		27.2	%
Supplies expense		323,475			16.0	%		311,404		16.2	%		979,185			16.3	%		935,559		16.4	%
Depreciation and amortization		86,535			4.3	%		96,020		5.0	%		274,165			4.6	%		285,558		5.0	%
Lease and rental expense		24,440			1.2	%		21,990		1.1	%		72,629			1.2	%		63,324		1.1	%
Subtotal-operating expenses		1,885,871			93.5	%		1,789,819		93.2	%		5,592,607			93.3	%		5,332,373		93.4	%
Income from operations		131,417			6.5	%		129,859		6.8	%		401,292			6.7	%		375,137		6.6	%
Interest expense, net		(778	)		(0.0	)%		234		0.0	%		(1,858	)		(0.0	)%		1,350		0.0	%
Other (income) expense, net		(211	)		(0.0	)%		384		0.0	%		6,921			0.1	%		806		0.0	%
Income before income taxes	$	132,406			6.6	%	$	129,241		6.7	%	$	396,229			6.6	%	$	372,981		6.5	%

We believe that providing our results on a “Same Facility” basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2022 and Form 10-Q for the quarter ended June 30, 2023.

The All Acute Care Hospital Services table summarizes the results of operations for all our acute care operations during the periods presented. These amounts include: (i) our acute care results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

Universal Health Services, Inc.

Behavioral Health Care Services

For the Three and Nine Months ended

September 30, 2023 and 2022

(in thousands)

Same Facility - Behavioral Health Care Services
	Three months ended						Three months ended						Nine months ended						Nine months ended
	September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
	Amount			% of Net Revenues			Amount			% of Net Revenues			Amount			% of Net Revenues			Amount			% of Net Revenues
Net revenues	$	1,513,354			100.0	%	$	1,407,039			100.0	%	$	4,490,078			100.0	%	$	4,144,998			100.0	%
Operating charges:
Salaries, wages and benefits		841,985			55.6	%		779,839			55.4	%		2,491,153			55.5	%		2,293,332			55.3	%
Other operating expenses		292,878			19.4	%		273,618			19.4	%		866,450			19.3	%		816,312			19.7	%
Supplies expense		55,102			3.6	%		55,466			3.9	%		161,205			3.6	%		157,457			3.8	%
Depreciation and amortization		47,484			3.1	%		46,487			3.3	%		139,039			3.1	%		137,249			3.3	%
Lease and rental expense		10,857			0.7	%		10,586			0.8	%		32,642			0.7	%		31,262			0.8	%
Subtotal-operating expenses		1,248,306			82.5	%		1,165,996			82.9	%		3,690,489			82.2	%		3,435,612			82.9	%
Income from operations		265,048			17.5	%		241,043			17.1	%		799,589			17.8	%		709,386			17.1	%
Interest expense, net		1,255			0.1	%		1,370			0.1	%		3,326			0.1	%		3,957			0.1	%
Other (income) expense, net		(985	)		(0.1	)%		(664	)		(0.0	)%		(2,294	)		(0.1	)%		(1,422	)		(0.0	)%
Income before income taxes	$	264,778			17.5	%	$	240,337			17.1	%	$	798,557			17.8	%	$	706,851			17.1	%
All Behavioral Health Care Services
	Three months ended						Three months ended						Nine months ended						Nine months ended
	September 30, 2023						September 30, 2022						September 30, 2023						September 30, 2022
	Amount			% of Net Revenues			Amount			% of Net Revenues			Amount			% of Net Revenues			Amount			% of Net Revenues
Net revenues	$	1,542,695			100.0	%	$	1,434,828			100.0	%	$	4,575,378			100.0	%	$	4,235,215			100.0	%
Operating charges:
Salaries, wages and benefits		844,244			54.7	%		782,909			54.6	%		2,498,338			54.6	%		2,310,761			54.6	%
Other operating expenses		322,208			20.9	%		300,406			20.9	%		949,958			20.8	%		898,655			21.2	%
Supplies expense		55,272			3.6	%		55,482			3.9	%		161,597			3.5	%		158,315			3.7	%
Depreciation and amortization		47,720			3.1	%		46,861			3.3	%		140,117			3.1	%		138,803			3.3	%
Lease and rental expense		10,911			0.7	%		11,010			0.8	%		32,834			0.7	%		32,803			0.8	%
Subtotal-operating expenses		1,280,355			83.0	%		1,196,668			83.4	%		3,782,844			82.7	%		3,539,337			83.6	%
Income from operations		262,340			17.0	%		238,160			16.6	%		792,534			17.3	%		695,878			16.4	%
Interest expense, net		1,252			0.1	%		1,375			0.1	%		3,456			0.1	%		4,106			0.1	%
Other (income) expense, net		(1,080	)		(0.1	)%		(1,164	)		(0.1	)%		(3,139	)		(0.1	)%		(1,922	)		(0.0	)%
Income before income taxes	$	262,168			17.0	%	$	237,949			16.6	%	$	792,217			17.3	%	$	693,694			16.4	%

We believe that providing our results on a “Same Facility” basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments, lawsuits and reserves established in connection with the government's investigation of our behavioral health care facilities, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and in the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2022 and Form 10-Q for the quarter ended June 30, 2023.

The All Behavioral Health Care Services table summarizes the results of operations for all our behavioral health care facilities during the periods presented. These amounts include: (i) our behavioral health results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months as well as the results of certain facilities that were closed or restructured during the past year.

Universal Health Services, Inc.
Selected Hospital Statistics
For the Three Months Ended
September 30, 2023 and 2022
AS REPORTED:
	ACUTE									BEHAVIORAL HEALTH
	09/30/23			09/30/22			%change			09/30/23			09/30/22			% change
Hospitals owned and leased		27			28			-3.6	%		331			331			0.0	%
Average licensed beds		6,667			6,982			-4.5	%		24,194			24,222			-0.1	%
Average available beds		6,495			6,810			-4.6	%		24,094			24,122			-0.1	%
Patient days		384,348			386,341			-0.5	%		1,600,740			1,588,532			0.8	%
Average daily census		4,177.7			4,199.4			-0.5	%		17,399.3			17,266.7			0.8	%
Occupancy-licensed beds		62.7	%		60.1	%		4.2	%		71.9	%		71.3	%		0.9	%
Occupancy-available beds		64.3	%		61.7	%		4.3	%		72.2	%		71.6	%		0.9	%
Admissions		80,074			78,221			2.4	%		118,487			117,913			0.5	%
Length of stay		4.8			4.9			-2.8	%		13.5			13.4			0.8	%
Inpatient revenue	$	10,916,060		$	9,875,794			10.5	%	$	2,703,478		$	2,582,448			4.7	%
Outpatient revenue		7,480,353			6,379,324			17.3	%		259,060			248,167			4.4	%
Total patient revenue		18,396,413			16,255,118			13.2	%		2,962,538			2,830,615			4.7	%
Other revenue		251,985			215,179			17.1	%		81,149			67,228			20.7	%
Gross hospital revenue		18,648,398			16,470,297			13.2	%		3,043,687			2,897,843			5.0	%
Total deductions		16,631,110			14,550,619			14.3	%		1,500,992			1,463,015			2.6	%
Net hospital revenue	$	2,017,288		$	1,919,678			5.1	%	$	1,542,695		$	1,434,828			7.5	%
SAME FACILITY:
	ACUTE									BEHAVIORAL HEALTH
	09/30/23			09/30/22			% change			09/30/23			09/30/22			% change
Hospitals owned and leased		27			27			0.0	%		329			329			0.0	%
Average licensed beds		6,667			6,700			-0.5	%		23,983			24,077			-0.4	%
Average available beds		6,495			6,528			-0.5	%		23,883			23,977			-0.4	%
Patient days		384,348			372,480			3.2	%		1,589,806			1,577,358			0.8	%
Average daily census		4,177.7			4,048.7			3.2	%		17,280.5			17,145.2			0.8	%
Occupancy-licensed beds		62.7	%		60.4	%		3.7	%		72.1	%		71.2	%		1.2	%
Occupancy-available beds		64.3	%		62.0	%		3.7	%		72.4	%		71.5	%		1.2	%
Admissions		80,074			75,434			6.2	%		117,620			117,008			0.5	%
Length of stay		4.8			4.9			-2.8	%		13.5			13.5			0.3	%

Universal Health Services, Inc.
Selected Hospital Statistics
For the Nine Months Ended
September 30, 2023 and 2022
AS REPORTED:
	ACUTE									BEHAVIORAL HEALTH
	09/30/23			09/30/22			%change			09/30/23			09/30/22			% change
Hospitals owned and leased		27			28			-3.6	%		331			331			0.0	%
Average licensed beds		6,697			6,901			-3.0	%		24,203			24,269			-0.3	%
Average available beds		6,525			6,729			-3.0	%		24,103			24,169			-0.3	%
Patient days		1,172,957			1,168,248			0.4	%		4,761,887			4,669,598			2.0	%
Average daily census		4,296.5			4,279.3			0.4	%		17,442.8			17,104.8			2.0	%
Occupancy-licensed beds		64.2	%		62.0	%		3.5	%		72.1	%		70.5	%		2.3	%
Occupancy-available beds		65.8	%		63.6	%		3.5	%		72.4	%		70.8	%		2.3	%
Admissions		239,300			230,223			3.9	%		358,703			346,973			3.4	%
Length of stay		4.9			5.1			-3.4	%		13.3			13.5			-1.4	%
Inpatient revenue	$	33,278,396		$	29,821,756			11.6	%	$	8,001,838		$	7,580,475			5.6	%
Outpatient revenue		22,292,249			18,360,902			21.4	%		812,467			773,769			5.0	%
Total patient revenue		55,570,645			48,182,658			15.3	%		8,814,305			8,354,244			5.5	%
Other revenue		714,877			602,635			18.6	%		220,393			209,284			5.3	%
Gross hospital revenue		56,285,522			48,785,293			15.4	%		9,034,698			8,563,528			5.5	%
Total deductions		50,291,623			43,077,783			16.7	%		4,459,320			4,328,313			3.0	%
Net hospital revenue	$	5,993,899		$	5,707,510			5.0	%	$	4,575,378		$	4,235,215			8.0	%
SAME FACILITY:
	ACUTE									BEHAVIORAL HEALTH
	09/30/23			09/30/22			% change			09/30/23			09/30/22			% change
Hospitals owned and leased		27			27			0.0	%		329			329			0.0	%
Average licensed beds		6,581			6,619			-0.6	%		24,010			23,985			0.1	%
Average available beds		6,409			6,447			-0.6	%		23,910			23,885			0.1	%
Patient days		1,161,260			1,124,897			3.2	%		4,726,012			4,625,248			2.2	%
Average daily census		4,253.7			4,120.5			3.2	%		17,311.4			16,942.3			2.2	%
Occupancy-licensed beds		64.6	%		62.3	%		3.8	%		72.1	%		70.6	%		2.1	%
Occupancy-available beds		66.4	%		63.9	%		3.8	%		72.4	%		70.9	%		2.1	%
Admissions		236,911			221,868			6.8	%		355,419			343,014			3.6	%
Length of stay		4.9			5.1			-3.3	%		13.3			13.5			-1.4	%