8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 28, 2008 (October 27, 2008)

UNIVERSAL HEALTH SERVICES, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	1-10765	23-2077891
(State or other jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

UNIVERSAL CORPORATE CENTER

367 SOUTH GULPH ROAD

KING OF PRUSSIA, PENNSYLVANIA 19406

(Address of principal executive office) (Zip Code)

Registrant’s telephone number, including area code (610) 768-3300

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On October 27, 2008, Universal Health Services, Inc. issued the press release attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits. 99.1 Universal Health Services, Inc., press release, dated October 27, 2008.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Universal Health Services, Inc.
By:	/s/ Alan B. Miller
Name:	Alan B. Miller
Title:	Chairman of the Board, President and Chief Executive Officer
By:	/s/ Steve Filton
Name:	Steve Filton
Title:	Senior Vice President and Chief Financial Officer

Date: October 28, 2008

Exhibit Index

Exhibit No.	Exhibit
99.1	Universal Health Services, Inc., press release, dated October 27, 2008.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT:	Steve Filton
	Chief Financial Officer	October 27, 2008
	610-768-3300

UNIVERSAL HEALTH SERVICES, INC. REPORTS

2008 THIRD QUARTER RESULTS

Consolidated Results of Operations:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its net income was $37.0 million, or $.73 per diluted share, during the third quarter ended September 30, 2008, representing a 14% increase over the adjusted net income per diluted share earned during the third quarter of 2007, as discussed below. Net income was $152.9 million, or $3.00 per diluted share, during the nine-month period ended September 30, 2008, representing a 29% increase over the adjusted net income per diluted share earned during nine-month period ended September 30, 2007.

Reported net income was $28.9 million, or $.54 per diluted share, during the three-month period ended September 30, 2007 and $130.4 million, or $2.43 per diluted share, during the nine-month period ended September 30, 2007. After adjusting our 2007 results for the items indicated on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information (“Supplemental Schedule”), our adjusted net income was $34.1 million, or $.64 per diluted share, during the third quarter of 2007 and $124.7 million, or $2.32 per diluted share, during the nine-month period ended September 30, 2007. As indicated on the Supplemental Schedules, the combined net impact of the various favorable and unfavorable items included in our net income during the 2007 periods amounted to: (i) an unfavorable $5.3 million, or $.10 per diluted share, during the three-month period ended September 30, 2007, and; (ii) a favorable $5.8 million, or $.11 per diluted share, during the nine-month period ended September 30, 2007.

Net revenues increased 7% to $1.24 billion during the third quarter of 2008 as compared to $1.16 billion during the third quarter of 2007. Net revenues increased 8% to $3.79 billion during the nine-month period ended September 30, 2008 as compared to $3.51 billion during the nine-month period ended September 30, 2007.

Acute Care Services:

At our acute care hospitals owned during both periods (“same facility basis”), inpatient admissions decreased 0.8% and patient days decreased 1.9% during the third quarter of 2008 as compared to the third quarter of 2007. On a same facility basis, net revenues at our acute care facilities increased 2.5% during the third quarter of 2008 as compared to the comparable prior year quarter. Net revenue per adjusted admission at these facilities increased 3.7% during the third quarter of 2008 over the comparable prior year

quarter. On a same facility basis, the operating margin (net revenues less salaries, wages and benefits, other operating expenses, supplies expense and provision for doubtful accounts) at our acute care hospitals decreased to 11.8% during the third quarter of 2008 as compared to 12.6% during the third quarter of 2007.

On a same facility basis, inpatient admissions at our acute care facilities increased 0.2% and patient days increased 0.6% during the nine-month period ended September 30, 2008 as compared to the comparable period of the prior year. Net revenues at these facilities increased 5.6% during the nine-month period ended September 30, 2008 as compared to the comparable prior year period. Net revenue per adjusted admission at these facilities increased 5.3% during the nine-month period ended September 30, 2008 over the comparable prior year period. On a same facility basis, the operating margin at our acute care hospitals increased to 14.7% during the first nine months of 2008 as compared to 13.7% during the comparable nine months of 2007.

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 $154 million and $148 million during the three-month periods ended September 30, 2008 and 2007, respectively, and $451 million and $422 million during the nine-month periods ended September 30, 2008 and 2007, respectively.

Behavioral Health Care Services:

At our behavioral health facilities, on a same facility basis, inpatient admissions increased 8.5% and patient days increased 3.9% during the third quarter of 2008 as compared to the third quarter of 2007. On a same facility basis, net revenues at our behavioral health facilities increased 9.5% during the third quarter of 2008 as compared to the comparable prior year quarter. Net revenue per adjusted patient day at these facilities increased 5.3% during the third quarter of 2008 as compared to the comparable quarter of the prior year. The operating margin at our behavioral health facilities owned during both periods increased to 23.7% during the third quarter of 2008 as compared to 22.3% during the third quarter of 2007.

On a same facility basis, inpatient admissions increased 8.3% and patient days increased 4.4% during the first nine months of 2008 over the comparable prior year period. On a same facility basis, net revenues at our behavioral health facilities increased 8.8% during the nine-month period ended September 30, 2008 as compared to the comparable period of the prior year. Net revenue per adjusted patient day at these facilities increased 4.5% during the nine-month period ended September 30, 2008 over the comparable period of the prior year. The operating margin at our behavioral health facilities owned during both periods increased to 24.1% during the first nine months of 2008 as compared to 23.2% during the comparable period of the prior year.

Other Matters:

As previously announced, we entered into a definitive agreement to sell Central Montgomery Medical Center, a 125-bed acute care hospital located in Lansdale, Pennsylvania. The sale, which is subject to customary regulatory approval, is scheduled to close by early November, 2008. The operating results of this facility are reflected as “Income/(loss) from discontinued operations, net of income taxes”, on the Consolidated Statements of Income for the three and nine-month periods ended September 30, 2008 and 2007. The assets and liabilities of this facility are reflected as “current/long-term assets held for sale” and “current liabilities held for sale” on the Consolidated Balance Sheet as of September 30, 2008.

Conference Call Information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on October 28, 2008. The dial-in number is 1-877-648-7971. A digital recording of the conference call will be available two hours after the completion of the conference call on October 28, 2008 and will continue through midnight on November 11, 2008. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 68544706. This call will also be available live over the internet at our web site at www.uhsinc.com. It will also be distributed over CCBN’s Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN’s individual investor center at http://www.companyboardroom.com or by visiting any of the investor sites in CCBN’s Individual Investor Network. Institutional investors can access the call via CCBN’s password-protected event management site, StreetEvents (www.streetevents.com).

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

Universal Health Services, Inc. is one of the nation’s largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico. 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 in our Form 10-K for the year ended December 31, 2007 and in Item 2-Forward-Looking Statements and Risk Factors in our Form 10-Q for the quarterly period ended June 30, 2008), may cause results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine our future results are beyond our capability to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management’s view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

We believe that operating income, operating margin, adjusted income from continuing operations, adjusted income from continuing operations per diluted share, adjusted net income, adjusted net income 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 it is helpful to our investors to present, compare and discuss our financial results after the effect of items that are nonrecurring or non-operational in nature has been neutralized. Such items include, but are not limited to, gains on sales of assets and businesses, adjustments to reserves for self-insured claims, reserves for legal judgments, lawsuits and other settlements 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, 2007 and Report on Form 10-Q for the quarterly period ended June 30, 2008. 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.

(more)

Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2008			2007			2008		2007
Net revenues	$	1,244,462		$	1,163,605		$	3,785,015	$	3,505,813
Operating charges:
Salaries, wages and benefits		530,858			502,361			1,600,514		1,494,553
Other operating expenses		269,299			261,637			777,257		737,240
Supplies expense		170,743			160,190			524,246		499,930
Provision for doubtful accounts		125,003			108,639			365,446		308,363
Depreciation and amortization		48,465			45,898			142,544		133,343
Lease and rental expense		17,600			17,838			53,021		50,405
Hurricane related expenses, net		—			82			—		707
		1,161,968			1,096,645			3,463,028		3,224,541
Income before interest expense, minority interests and income taxes		82,494			66,960			321,987		281,272
Interest expense, net		13,419			12,881			40,147		38,643
Minority interests in earnings of consolidated entities		9,316			9,784			34,022		32,651
Income before income taxes		59,759			44,295			247,818		209,978
Provision for income taxes		22,536			14,961			95,352		79,177
Income from continuing operations		37,223			29,334			152,466		130,801
(Loss) income from discontinued operations, net of income taxes		(226	)		(480	)		434		(368	)
Net income	$	36,997		$	28,854		$	152,900	$	130,433
Basic earnings per share:
From continuing operations	$	0.73		$	0.55		$	3.00	$	2.45
From discontinued operations		0.00			(0.01	)		0.01		(0.01	)
Total basic earnings per share	$	0.73		$	0.54		$	3.01	$	2.44
Diluted earnings per share:
From continuing operations	$	0.73		$	0.55		$	2.99	$	2.44
From discontinued operations		0.00			(0.01	)		0.01		(0.01	)
Total diluted earnings per share	$	0.73		$	0.54		$	3.00	$	2.43
Weighted average number of common shares		50,544			53,481			50,812		53,491
Other share equivalents		217			148			157		190
Weighted average number of common shares and equiv.-diluted		50,761			53,629			50,969		53,681

Universal Health Services, Inc.

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

For the three months ended September 30, 2008 and 2007

(in thousands, except per share amounts)

(unaudited)

	Three months ended September 30, 2008						Three months ended September 30, 2007
Net revenues	$	1,244,462			100.0	%	$	1,163,605			100.0	%
Operating charges:
Salaries, wages and benefits		530,858			42.7	%		502,361			43.2	%
Other operating expenses		269,299			21.6	%		261,637			22.5	%
Supplies expense		170,743			13.7	%		160,190			13.8	%
Provision for doubtful accounts		125,003			10.0	%		108,639			9.3	%
		1,095,903			88.1	%		1,032,827			88.8	%
Operating income/margin		148,559			11.9	%		130,778			11.2	%
Lease and rental expense		17,600						17,838
Minority interests in earnings of consolidated entities		9,316						9,784
Earnings before hurricane related expenses, depreciation and amortization, interest expense, and income taxes (“EBITDA”)		121,643						103,156
Hurricane related expenses, net		—						82
Depreciation and amortization		48,465						45,898
Interest expense, net		13,419						12,881
Income before income taxes		59,759						44,295
Provision for income taxes		22,536						14,961
Income from continuing operations		37,223						29,334
Income (loss) from discontinued operations, net of income taxes		(226	)					(480	)
Net income	$	36,997					$	28,854
	Three months ended September 30, 2008						Three months ended September 30, 2007
	Amount			Per Diluted Share			Amount			Per Diluted Share
Calculation of Adjusted Income from Continuing Operations
Income from continuing operations	$	37,223		$	0.73		$	29,334		$	0.55
Plus/minus adjustments:
Gains, legal judgment, write-down of investments in joint-ventures and hurricane related expense, net of income taxes		—			—			3,945			0.07
Unfavorable prior period effect of Texas Medicaid supplemental payments and cost report settlements, net of income taxes		—			—			3,399			0.07
Favorable tax reserve adjustment		—			—			(2,079	)		(0.04	)
Subtotal after-tax adjustments to income from continuing operations		—			—			5,265			0.10
Adjusted income from continuing operations	$	37,223		$	0.73		$	34,599		$	0.65
Calculation of Adjusted Net Income
Net income	$	36,997		$	0.73		$	28,854		$	0.54
After-tax adjustments to income from continuing operations, as indicated above		—			—			5,265			0.10
Adjusted net income	$	36,997		$	0.73		$	34,119		$	0.64

Universal Health Services, Inc.

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

For the nine months ended September 30, 2008 and 2007

(in thousands, except per share amounts)

(unaudited)

	Nine months ended September 30, 2008				Nine months ended September 30, 2007
Net revenues	$	3,785,015	100.0	%	$	3,505,813		100.0	%
Operating charges:
Salaries, wages and benefits		1,600,514	42.3	%		1,494,553		42.6	%
Other operating expenses		777,257	20.5	%		737,240		21.0	%
Supplies expense		524,246	13.9	%		499,930		14.3	%
Provision for doubtful accounts		365,446	9.7	%		308,363		8.8	%
		3,267,463	86.3	%		3,040,086		86.7	%
Operating income/margin		517,552	13.7	%		465,727		13.3	%
Lease and rental expense		53,021				50,405
Minority interests in earnings of consolidated entities		34,022				32,651
Earnings before hurricane related expenses, depreciation and amortization, interest expense, and income taxes (“EBITDA”)		430,509				382,671
Hurricane related expenses, net		—				707
Depreciation and amortization		142,544				133,343
Interest expense, net		40,147				38,643
Income before income taxes		247,818				209,978
Provision for income taxes		95,352				79,177
Income from continuing operations		152,466				130,801
Income (loss) from discontinued operations, net of income taxes		434				(368	)
Net income	$	152,900			$	130,433

	Nine months ended September 30, 2008				Nine months ended September 30, 2007
	Amount		Per Diluted Share		Amount			Per Diluted Share
Calculation of Adjusted Income from Continuing Operations
Income from continuing operations	$	152,466	$	2.99	$	130,801		$	2.44
Plus/minus adjustments:
Reduction of reserve for professional and general liability self-insured claims, net of minority interests and income taxes		—		—		(10,045	)		(0.19	)
Unfavorable prior period effect of Texas Medicaid supplemental payments and cost report settlements, net of income taxes		—		—		3,399			0.07
Gains, legal judgment, write-down of investments in joint-ventures and hurricane related expense, net of income taxes		—		—		2,975			0.05
Favorable tax reserve adjustment		—		—		(2,079	)		(0.04	)
Subtotal after-tax adjustments to income from continuing operations		—		—		(5,750	)		(0.11	)
Adjusted income from continuing operations	$	152,466	$	2.99	$	125,051		$	2.33
Calculation of Adjusted Net Income
Net income	$	152,900	$	3.00	$	130,433		$	2.43
After-tax adjustments to income from continuing operations, as indicated above		—		—		(5,750	)		(0.11	)
Adjusted net income	$	152,900	$	3.00	$	124,683		$	2.32

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

	September 30, 2008		December 31, 2007
Assets:
Cash and cash equivalents	$	7,805	$	16,354
Accounts receivable, net		628,973		627,186
Other current assets		130,151		131,307
Current assets held for sale		10,871		—
Property, plant and equipment, net		2,015,290		1,933,916
Other assets		874,659		899,894
Other non current assets held for sale		30,587		—
Total Assets	$	3,698,336	$	3,608,657
Liabilities and Stockholders’ Equity:
Current portion of long-term debt	$	8,260	$	3,116
Other current liabilities		553,762		484,595
Current liabilities held for sale		4,221		—
Other noncurrent liabilities		362,421		344,755
Long-term debt		935,461		1,008,786
Deferred income taxes		35,342		40,022
Minority interests		232,555		210,184
Stockholders’ equity		1,566,314		1,517,199
Total Liabilities and Stockholders’ Equity	$	3,698,336	$	3,608,657

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	Nine months ended September 30,
	2008			2007
Cash Flows from Operating Activities:
Net income	$	152,900		$	130,433
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization		144,711			135,417
Changes in assets & liabilities, net of effects from acquisitions and dispositions:
Accounts receivable		(7,796	)		(17,359	)
Construction management receivable		(1,674	)		—
Accrued interest		11,290			9,055
Accrued and deferred income taxes		(3,418	)		(6,374	)
Other working capital accounts		35,941			47,558
Other assets and deferred charges		16,317			37
Other		12,347			2,723
Minority interest in earnings of consolidated entities, net of distributions		15,209			9,041
Accrued insurance expense, net of commercial premiums paid		58,127			45,275
Payments made in settlement of self-insurance claims		(38,011	)		(33,025	)
Net cash provided by operating activities		395,943			322,781
Cash Flows from Investing Activities:
Property and equipment additions, net of disposals		(239,880	)		(263,366	)
Proceeds received from sale of assets		32,634			5,268
Settlement proceeds received related to prior year acquisition, net of expenses		1,539			—
Investment in joint-venture		(1,270	)		—
Acquisition of assets and businesses		(14,775	)		(103,159	)
Purchase of minority ownership interest in majority owned business		(1,058	)		(14,762	)
Net cash used in investing activities		(222,810	)		(376,019	)
Cash Flows from Financing Activities:
Additional borrowings, net of financing costs		150,155			169,852
Reduction of long-term debt		(219,311	)		(103,846	)
Repurchase of common shares		(104,436	)		(14,386	)
Dividends paid		(12,147	)		(12,917	)
Issuance of common stock		1,751			1,041
Capital contributions from minority member		2,306			12,129
Net cash (used in) provided by financing activities		(181,682	)		51,873
Decrease in cash and cash equivalents		(8,549	)		(1,365	)
Cash and cash equivalents, beginning of period		16,354			14,939
Cash and cash equivalents, end of period	$	7,805		$	13,574
Supplemental Disclosures of Cash Flow Information:
Interest paid	$	34,198		$	35,991
Income taxes paid, net of refunds	$	97,907		$	83,894

Universal Health Services, Inc.

Supplemental Statistical Information

(un-audited)

Same Facility:

	% Change Quarter Ended 9/30/2008		% Change 9 months ended 9/30/2008
Acute Care Hospitals
Revenues	2.5	%	5.6	%
Adjusted Admissions	-1.1	%	0.3	%
Adjusted Patient Days	-2.2	%	0.6	%
Revenue Per Adjusted Admission	3.7	%	5.3	%
Revenue Per Adjusted Patient Day	4.8	%	5.0	%
Behavioral Health Hospitals
Revenues	9.5	%	8.8	%
Adjusted Admissions	8.5	%	8.1	%
Adjusted Patient Days	4.0	%	4.1	%
Revenue Per Adjusted Admission	0.9	%	0.7	%
Revenue Per Adjusted Patient Day	5.3	%	4.5	%

UHS Consolidated

	Third Quarter Ended						Nine months Ended
	9/30/2008			9/30/2007			9/30/2008			9/30/2007
Revenues	$	1,244,462		$	1,163,605		$	3,785,015		$	3,505,813
EBITDA (1)		121,643			103,156			430,509			382,671
EBITDA Margin (1)		9.8	%		8.9	%		11.4	%		10.9	%
Cash Flow From Operations		197,477			163,805			395,943			322,781
Days Sales Outstanding		46			49			46			49
Capital Expenditures		83,818			78,779			239,880			263,366
Debt								943,721			903,957
Shareholders Equity								1,566,314			1,534,839
Debt / Total Capitalization								37.6	%		37.1	%
Debt / EBITDA (2)								1.69			1.85
Debt / Cash From Operations (2)								2.24			3.74
Acute Care EBITDAR Margin (3) (4)		11.7	%		11.6	%		14.2	%		13.9	%
Behavioral Health EBITDAR Margin (3) (4)		23.0	%		21.4	%		23.5	%		23.0	%

(1) Net of Minority Interest

(2) Latest 4 quarters

(3) Before Corporate overhead allocation and minority interest

(4) Excluding discontinued operations

UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE THREE MONTHS ENDED

SEPTEMBER 30, 2008

AS REPORTED:

	ACUTE (1)								BEHAVIORAL HEALTH
	09/30/08			09/30/07			% change		09/30/08			09/30/07			% change
Hospitals owned and leased		22			21		4.8	%		83			85		-2.4	%
Average licensed beds		5,450			5,292		3.0	%		7,618			7,485		1.8	%
Patient days		286,547			285,505		0.4	%		519,362			506,466		2.5	%
Average daily census		3,114.6			3,103.3		0.4	%		5,645.2			5,505.1		2.5	%
Occupancy-licensed beds		57.1	%		58.6	%	-2.5	%		74.1	%		73.5	%	0.8	%
Admissions		64,738			63,448		2.0	%		32,786			30,156		8.7	%
Length of stay		4.4			4.5		-1.6	%		15.8			16.8		-5.7	%
Inpatient revenue	$	2,259,640		$	2,044,147		10.5	%	$	488,986		$	452,223		8.1	%
Outpatient revenue		917,982			858,313		7.0	%		61,358			54,470		12.6	%
Total patient revenue		3,177,622			2,902,460		9.5	%		550,344			506,693		8.6	%
Other revenue		18,027			15,313		17.7	%		8,183			7,476		9.5	%
Gross hospital revenue		3,195,649			2,917,773		9.5	%		558,527			514,169		8.6	%
Total deductions		2,296,319			2,071,179		10.9	%		247,695			229,156		8.1	%
Net hospital revenue	$	899,330		$	846,594		6.2	%	$	310,832		$	285,013		9.1	%

SAME FACILITY:

	ACUTE (2)						BEHAVIORAL HEALTH (3)
	09/30/08		09/30/07		% change		09/30/08		09/30/07		% change
Hospitals owned and leased	21		21		0.0	%	81		81		0.0	%
Average licensed beds	5,285		5,292		-0.1	%	7,455		7,266		2.6	%
Patient days	280,020		285,531		-1.9	%	509,708		490,388		3.9	%
Average daily census	3,043.7		3,103.6		-1.9	%	5,540.3		5,330.3		3.9	%
Occupancy-licensed beds	57.6	%	58.6	%	-1.8	%	74.3	%	73.4	%	1.3	%
Admissions	62,912		63,448		-0.8	%	32,599		30,041		8.5	%
Length of stay	4.5		4.5		-1.1	%	15.6		16.3		-4.2	%

(1) Acute care hospitals located in New Orleans and discontinued operations are excluded in 2007 and 2008.

(2) Acute care hospitals located in New Orleans, discontinued operations and Centennial Hills Hospital are excluded in current and prior years.

(3) Casa de Lago, Central Florida, Summit Ridge Hospital and Shenandoah Valley are excluded in both current and prior years. Highlands Behavioral is included in both current and prior years from March 1st through year to date. Dover Behavioral is included in both current and prior years from May 1st through year to date. Foundations Behavioral is included in both current and prior years from July 1st through year to date. Cottonwood Treatment is included in both current and prior years from August 1st through year to date. Broad Horizons, Highlander RTC, Midwest Youth and Vista Group Homes are excluded in both current and prior years from July 1st through year to date.

UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE NINE MONTHS ENDED

SEPTEMBER 30, 2008

AS REPORTED:

	ACUTE (1)								BEHAVIORAL HEALTH
	09/30/08			09/30/07			% change		09/30/08			09/30/07			% change
Hospitals owned and leased		22			21		4.8	%		83			85		-2.4	%
Average licensed beds		5,452			5,292		3.0	%		7,629			7,269		5.0	%
Patient days		892,689			869,860		2.6	%		1,580,086			1,489,301		6.1	%
Average daily census		3,258.0			3,186.3		2.2	%		5,766.7			5,455.3		5.7	%
Occupancy-licensed beds		59.8	%		60.2	%	-0.8	%		75.6	%		75.0	%	0.7	%
Admissions		198,685			193,589		2.6	%		98,228			89,268		10.0	%
Length of stay		4.5			4.5		-0.2	%		16.1			16.8		-4.2	%
Inpatient revenue	$	6,999,680		$	6,299,927		11.1	%	$	1,467,036		$	1,339,098		9.6	%
Outpatient revenue		2,748,382			2,532,815		8.5	%		193,281			173,558		11.4	%
Total patient revenue		9,748,062			8,832,742		10.4	%		1,660,317			1,512,656		9.8	%
Other revenue		55,741			43,780		27.3	%		26,234			21,938		19.6	%
Gross hospital revenue		9,803,803			8,876,522		10.4	%		1,686,551			1,534,594		9.9	%
Total deductions		7,027,440			6,317,760		11.2	%		745,545			687,016		8.5	%
Net hospital revenue	$	2,776,363		$	2,558,762		8.5	%	$	941,006		$	847,578		11.0	%
SAME FACILITY:
	ACUTE (2)								BEHAVIORAL HEALTH (3)
	09/30/08			09/30/07			% change		09/30/08			09/30/07			% change
Hospitals owned and leased		21			21		0.0	%		81			81		0.0	%
Average licensed beds		5,287			5,292		-0.1	%		7,409			7,191		3.0	%
Patient days		874,718			869,887		0.6	%		1,537,496			1,472,453		4.4	%
Average daily census		3,192.4			3,186.4		0.2	%		5,611.3			5,393.6		4.0	%
Occupancy-licensed beds		60.4	%		60.2	%	0.3	%		75.7	%		75.0	%	1.0	%
Admissions		194,013			193,589		0.2	%		96,574			89,136		8.3	%
Length of stay		4.5			4.5		0.3	%		15.9			16.5		-3.6	%

(1) Acute care hospitals located in New Orleans and discontinued operations are excluded in 2007 and 2008.

(2) Acute care hospitals located in New Orleans, discontinued operations and Centennial Hills Hospital are excluded in current and prior years.

(3) Casa de Lago, Central Florida, Summit Ridge Hospital and Shenandoah Valley are excluded in both current and prior years. Highlands Behavioral is included in both current and prior years from March 1st through year to date. Dover Behavioral is included in both current and prior years from May 1st through year to date. Foundations Behavioral is included in both current and prior years from July 1st through year to date. Cottonwood Treatment is included in both current and prior years from August 1st through year to date. Broad Horizons, Highlander RTC, Midwest Youth and Vista Group Homes are excluded in both current and prior years from July 1st through year to date.