QUARTERLY RESULTS

12 Months Ended

Dec. 31, 2012

QUARTERLY RESULTS

12) QUARTERLY RESULTS (unaudited)

The following tables summarize the quarterly financial data for the two years ended December 31, 2012 and 2011:

2012	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total
	(amounts in thousands, except per share amounts)
Net revenues	$	1,793,036	$	1,723,084	$	1,680,353	$	1,764,927	$	6,961,400
Net income	$	142,570	$	117,444	$	81,373	$	147,660	$	489,047
Less: Net income attributable to noncontrolling interests	$	13,963	$	9,883	$	9,556	$	12,199	$	45,601
Net income attributable to UHS	$	128,607	$	107,561	$	71,817	$	135,461	$	443,446
Earnings per share attributable to UHS-Basic:
Total basic earnings per share	$	1.33	$	1.11	$	0.74	$	1.39	$	4.57
Earnings per share attributable to UHS-Diluted:
Total diluted earnings per share	$	1.31	$	1.10	$	0.73	$	1.39	$	4.53

The 2012 quarterly financial data presented above includes the following:

First Quarter:

• a favorable $30.2 million pre-tax impact ($18.8 million, or $.19 per diluted share, net of taxes) resulting from 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”). This agreement, which 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;

• a favorable $7.0 million pre-tax impact ($4.3 million, or $.04 per diluted share, net of taxes) representing the 2011 portion of the net Medicaid supplemental reimbursements we expect to receive pursuant to the Oklahoma Supplemental Hospital Offset Payment Program;

• an aggregate unfavorable $8.3 million pre-tax impact ($5.1 million, or $.05 per diluted share, net of taxes) 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).

Second Quarter:

• an unfavorable $8.0 million pre-tax impact ($5.0 million, or $.05 per diluted share, net of taxes) recorded in connection with the implementation of EHR applications;

• a favorable $5.5 million pre-tax impact ($3.4 million, or $.03 per diluted share, net of taxes) representing net Medicaid reimbursements related to prior years.

Third Quarter:

• a favorable $2.2 million pre-tax impact ($1.3 million, or $.01 per diluted share, net of taxes) recorded in connection with the implementation of EHR applications;

• an unfavorable $29.2 million pre-tax impact ($18.1 million, or $0.19 per diluted share, net of taxes) 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.

Fourth Quarter:

• a favorable $26.4 million pre-tax impact ($16.4 million, or $0.17 per diluted share, net of taxes) gain resulting from the sale of an acute care facility located in Auburn, Washington;

• a favorable $8.9 million pre-tax impact ($5.5 million, or $.06 per diluted share, net of taxes) recorded in connection with the implementation of EHR applications;

• a favorable $27.2 million pre-tax impact reduction ($15.5 million, or $.16 per diluted share, net of taxes) to our professional and general liability self-insurance reserves relating to years prior to 2012, as discussed in Self-Insured Risks.

2011	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total
	(amounts in thousands, except per share amounts)
Net revenues	$	1,723,296	$	1,711,255	$	1,662,675	$	1,662,996	$	6,760,222
Net income	$	129,987	$	116,034	$	94,842	$	108,007	$	448,870
Less: Net income attributable to noncontrolling interests	$	15,794	$	12,385	$	9,788	$	12,736	$	50,703
Net income attributable to UHS	$	114,193	$	103,649	$	85,054	$	95,271	$	398,167
Earnings per share attributable to UHS-Basic:
Total basic earnings per share	$	1.17	$	1.06	$	0.87	$	0.99	$	4.09
Earnings per share attributable to UHS-Diluted:
Total diluted earnings per share	$	1.15	$	1.04	$	0.86	$	0.98	$	4.04

The 2011 quarterly financial data presented above includes the following:

Fourth Quarter:

• a favorable $10.4 million pre-tax reduction ($6.4 million, or $.07 per diluted share, net of taxes) to our professional and general liability self-insurance reserves relating to years prior to 2011, as discussed in Self-Insured Risks.