Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT:	Steve Filton
	Chief Financial Officer	February 25, 2016
	610-768-3300

UNIVERSAL HEALTH SERVICES, INC. REPORTS 2015 FOURTH QUARTER AND

FULL YEAR EARNINGS AND 2016 EARNINGS GUIDANCE

Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended December 31, 2015 and 2014:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $173.7 million, or $1.74 per diluted share, during the fourth quarter of 2015 as compared to $172.8 million, or $1.71 per diluted share, during the comparable quarter of 2014. Net revenues increased 6.4% to $2.32 billion during the fourth quarter of 2015 as compared to $2.18 billion during the fourth quarter of 2014.

For the three-month period ended December 31, 2015, our adjusted net income attributable to UHS, as calculated on the attached Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information (“Supplemental Schedule”), increased approximately 12% to $170.7 million, or $1.71 per diluted share, as compared to $152.0 million, or $1.51 per diluted share, during the fourth quarter of 2014.

As reflected on the Supplemental Schedule, included in our reported results during the fourth quarters of 2015 and 2014, are net favorable after-tax impacts of approximately $3.1 million, or $.03 per diluted share, during the fourth quarter of 2015 and $8.6 million, or $.08 per diluted share, during the fourth quarter of 2014, related to the incentive income and depreciation and amortization expense recorded in connection with the implementation of electronic health records (“EHR”) applications at our acute care hospitals.

Also included in our reported results during the fourth quarter of 2014, as reflected on the Supplemental Schedule, was an aggregate favorable after-tax impact of approximately $12.2 million, or $.12 per diluted share, consisting of: (i) a favorable after-tax impact of $11.7 million, or $.12 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2014, based upon a reserve analysis, and; (ii) an after-tax impact of $493,000 relating to the charge incurred during 2014 in connection with the settlement of a legal matter.

Consolidated Results of Operations, As Reported and As Adjusted – Twelve-month periods ended December 31, 2015 and 2014:

Reported net income attributable to UHS was $680.5 million, or $6.76 per diluted share, during the year ended December 31, 2015 as compared to $545.3 million, or $5.42 per diluted share, during the 2014 full year. Net revenues increased 10.2% to $9.04 billion during the twelve-month period of 2015 as compared to $8.21 billion during the comparable twelve-month period of 2014.

For the year ended December 31, 2015, our adjusted net income attributable to UHS, as calculated on the Supplemental Schedule, increased approximately 19% to $692.0 million, or $6.87 per diluted share, as compared to $581.8 million, or $5.78 per diluted share, during the year ended December 31, 2014.

As reflected on the Supplemental Schedule, included in our reported results during the years ended December 31, 2015 and 2014, are net unfavorable after-tax impacts of approximately $11.5 million, or $.11 per diluted share, during 2015 and $4.7 million, or $.04 per diluted share, during 2014, related to the implementation of EHR applications at our acute care hospitals.

Also included in our reporting results during the year ended December 31, 2014, as reflected on the Supplemental Schedule, was a net unfavorable after-tax impact of approximately $31.7 million, or $.32 per diluted share, consisting of: (i) an after-tax charge of $27.1 million, or $.27 per diluted share, incurred in connection with the settlement of the Garden City Employees’ Retirement System v. Psychiatric Solutions, Inc. legal matter; (ii) an aggregate after-tax charge of $22.7 million, or $.23 per diluted share, recorded in connection with the costs related to extinguishment of debt resulting from various financing transactions that occurred during the third quarter of 2014; (iii) a favorable after-tax impact of $11.7 million, or $.12 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2014, based upon a reserve analysis, and; (iv) a favorable after-tax impact of $6.3 million, or $.06 per diluted share, resulting from a gain realized on the sale of a non-operating investment.

Acute Care Services – Three and twelve-month periods ended December 31, 2015 and 2014:

During the fourth quarter of 2015, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased 4.8% and adjusted patient days increased 3.9%, as compared to the fourth quarter of 2014. Net revenues at these facilities increased 7.3% during the fourth quarter of 2015 as compared to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission increased 3.3% while net revenue per adjusted patient day increased 4.2% during the fourth quarter of 2015 as compared to the comparable quarter of 2014. On a same facility basis, the operating margin at our acute care hospitals increased to 17.2% during the fourth quarter of 2015 as compared to 16.8% during the fourth quarter of 2014. We define operating margin as net revenues less salaries, wages and benefits, other operating expenses and supplies expense (excluding the impact of EHR and other items as indicated on the Supplemental Schedules).

During the year ended December 31, 2015, at our acute care hospitals on a same facility basis, adjusted admissions increased 5.4% and adjusted patient days increased 5.5%, as compared to the 2014 full year. Net revenues at these facilities increased 8.7% during the 2015 full year as compared to the 2014 full year. At these facilities, net revenue per adjusted admission increased 3.9% while net revenue per adjusted patient day increased 3.7% during 2015 as compared to 2014. On a same facility basis, the operating margin at our acute care hospitals increased to 18.5% during the year ended December 31, 2015 as compared to 17.9% during the 2014 full year.

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 gross charges, amounting to approximately $332 million and $284 million during the three-month periods ended December 31, 2015 and 2014, respectively, and $1.20 billion and $1.14 billion during the twelve-month periods ended December 31, 2015 and 2014, respectively. The provision for doubtful accounts at our acute care hospitals amounted to approximately $172 million and $130 million during the three-month periods ended December 31, 2015 and 2014, respectively, and $631 million and $590 million during the twelve-month periods ended December 31, 2015 and 2014, respectively. Our acute care hospitals experienced an increase in the aggregate of charity care, uninsured discounts and provision for doubtful accounts, as a percentage of gross charges, during the third and fourth quarters of 2015, as compared to the comparable quarters of 2014. During the year ended December 31, 2015, as compared to the 2014 full year, our acute care hospitals experienced a decrease in the aggregate of charity care, uninsured discounts and provision for doubtful accounts, as a percentage of gross charges.

Behavioral Health Care Services – Three and twelve-month periods ended December 31, 2015 and 2014:

During the fourth quarter of 2015, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 0.2% while adjusted patient days increased 0.7% compared to the fourth quarter of 2014. At these facilities, net revenue per adjusted admission increased 3.1% while net revenue per adjusted patient day increased 2.5% during the fourth quarter of 2015 as compared to the comparable quarter in 2014. On a same facility basis, our behavioral health services’ net revenues increased 3.6% during the fourth quarter of 2015, as compared to the comparable quarter in 2014, and the operating margins were 27.1% and 27.9% during the three-month periods ended December 31, 2015 and 2014, respectively.

During the twelve-month period ended December 31, 2015, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 2.9% while adjusted patient days increased 1.2% compared to the 2014 full year. At these facilities, net revenue per adjusted admission increased 1.8% during the year ended December 31, 2015 while net revenue per adjusted patient day increased 3.4% during the twelve-month period ended December 31, 2015 as compared to the 2014 full year. On a same facility basis, our behavioral health services’ net revenues increased 5.0% during the full year of 2015, as compared to 2014, and the operating margins remained unchanged at 27.9% during each of the years ended December 31, 2015 and 2014.

Share Repurchase Program:

In February of 2016, our Board of Directors authorized a $400 million increase to our stock repurchase program, which increased the aggregate authorization to $800 million from the previous $400 million authorization approved during the third quarter of 2014. Pursuant to this program, we may purchase shares of our Class B Common Stock, from time to time as conditions allow, on the open market or in negotiated private transactions.

In conjunction with this program, during the fourth quarter of 2015, we repurchased 478,118 shares at an aggregate cost of $57.8 million. Since inception of the program through December 31, 2015, we repurchased approximately 1.9 million shares at an aggregate cost of approximately $224.2 million.

Subsequent to December 31, 2015, we repurchased an additional 886,782 shares at an aggregate cost of $99.0 million increasing our aggregate program inception to date stock repurchases to approximately 2.8 million shares at an aggregate cost of approximately $323.2 million.

2016 Full Year Guidance:

Our estimated range of adjusted net income attributable to UHS for the year ended December 31, 2016, is $7.12 to $7.58 per diluted share. This guidance range represents an increase of approximately 4% to 10% over the adjusted net income attributable to UHS of $6.87 per diluted share for the year ended December 31, 2015, as calculated on the attached Supplemental Schedule. The range excludes the below-mentioned unfavorable EHR impact of $.17 per diluted share expected during 2016.

During 2016, our net revenues are estimated to be approximately $9.75 billion to $9.85 billion representing an increase of approximately 8% to 9% over our 2015 net revenues of approximately $9.04 billion.

During 2016, we expect to record approximately $5 million of EHR incentive income and approximately $36 million of EHR-related depreciation and amortization expense resulting in a net unfavorable after-tax (and after income attributable to noncontrolling interest) impact of approximately $17 million, or $.17 per diluted share.

This guidance range also excludes the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as, but not limited to, gains on sales of assets and businesses, costs related to extinguishment of debt, reserves for settlements, legal judgments and lawsuits, impairments of long-lived assets, impact of share repurchases and other material amounts that may be reflected in our financial statements that relate to prior periods. It is also subject to certain conditions including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on February 26, 2016. The dial-in number is 1-877-648-7971.

A live broadcast of the conference call will be available on our website at www.uhsinc.com. A replay of the call will be available following the conclusion of the live call and will be available for one full year.

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

Universal Health Services, Inc. (“UHS”) is one of the nation’s largest hospital companies operating through its subsidiaries acute care hospitals, behavioral health facilities and ambulatory centers located throughout the United States, the United Kingdom, Puerto Rico and the U.S. Virgin Islands. 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 and in Item 7-Forward-Looking Statements and Risk Factors in our Form 10-K for the year ended December 31, 2015), may cause the 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 net income attributable to UHS, adjusted net income attributable to UHS 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, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, costs related to extinguishment of debt, gains on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits, impairments of long-lived assets 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, 2015. 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.

We incur health-care related taxes (“Provider Taxes”) imposed by states in the form of a licensing fee, assessment or other mandatory payment which are related to: (i) healthcare items or services; (ii) the provision of, or the authority to provide, the health care items or services, or; (iii) the payment for the health care items or services. Such Provider Taxes are subject to various federal regulations that limit the scope and amount of the taxes that can be levied by states in order to secure federal matching funds as part of their respective state Medicaid programs. We derive a related Medicaid reimbursement benefit from assessed Provider Taxes in the form of Medicaid claims based payment increases and/or lump sum Medicaid supplemental payments. Under these programs, including the impact of uncompensated care and upper payment limit programs, and the Texas Delivery System Reform Incentive program, we earned revenues (before Provider Tax assessments) of approximately $86 million and $117 million during the three-month periods ended December 31, 2015 and 2014, respectively, and $307 million and $295 million during the twelve-month periods ended December 31, 2015 and 2014, respectively. These revenues were offset by assessments of $40 million and $69 million during the fourth quarters of 2015 and 2014, respectively, and $137 million and $140 million during the

twelve-month periods ended December 31, 2015 and 2014, respectively, which are recorded in other operating expenses on the attached Consolidated Statement of Income. Prior to 2015, these assessments were recorded as a reduction to our net revenues. Accordingly, to conform with current year presentation, these assessments were reclassified on our Consolidated Statement of Income for the three and twelve-month periods ended December 31, 2014.

Our acute care hospitals are eligible for Medicare and Medicaid EHR incentive payments upon implementation of the EHR application, once they have demonstrated meaningful use of certified EHR technology for the applicable stage or have completed attestations to their adoption or implementation of certified EHR technology. However, there may be timing differences in the recognition of the incentive income and expenses recorded in connection with the implementation of the EHR application which may cause material period-to-period changes in our future results of operations. Pursuant to regulations, hospitals that did not qualify as a meaningful user of EHR by 2015 are subject to a reduced market basket update to the inpatient prospective payment system standardized amount in 2015 and each subsequent fiscal year. We believe that all of our acute care hospitals have met the applicable meaningful use criteria and therefore are not subject to a reduced market basked update to the inpatient prospective payment standardized amount. Under the HITECH Act, hospitals must continue to meet the applicable meaningful use criteria in each fiscal year or they will be subject to a market basket update reduction in a subsequent fiscal year.

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Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

	Three months						Twelve months
	ended December 31,						ended December 31,
	2015			2014			2015			2014
Net revenues before provision for doubtful accounts	$	2,512,872		$	2,333,339		$	9,784,724		$	8,904,071
Less: Provision for doubtful accounts		197,633			157,048			741,273			698,983
Net revenues		2,315,239			2,176,291			9,043,451			8,205,088
Operating charges:
Salaries, wages and benefits		1,079,394			994,593			4,212,387			3,845,461
Other operating expenses		548,745			528,417			2,119,805			1,922,743
Supplies expense		252,109			233,413			974,088			895,693
Depreciation and amortization		102,921			98,118			398,618			375,624
Lease and rental expense		24,342			23,337			94,973			93,993
Electronic health records incentive income		(14,064	)		(23,873	)		(15,815	)		(27,902	)
Costs related to extinguishment of debt		0			0			0			36,171
		1,993,447			1,854,005			7,784,056			7,141,783
Income from operations		321,792			322,286			1,259,395			1,063,305
Interest expense, net		28,643			31,225			113,494			133,638
Income before income taxes		293,149			291,061			1,145,901			929,667
Provision for income taxes		101,832			100,569			395,203			324,671
Net income		191,317			190,492			750,698			604,996
Less: Income attributable to noncontrolling interests		17,568			17,695			70,170			59,653
Net income attributable to UHS	$	173,749		$	172,797		$	680,528		$	545,343
Basic earnings per share attributable to UHS (a)	$	1.76		$	1.75		$	6.89		$	5.52
Diluted earnings per share attributable to UHS (a)	$	1.74		$	1.71		$	6.76		$	5.42

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

	Three months						Twelve months
	ended December 31,						ended December 31,
	2015			2014			2015			2014
(a) Earnings per share calculation:
Basic and diluted:
Net income attributable to UHS	$	173,749		$	172,797		$	680,528		$	545,343
Less: Net income attributable to unvested restricted share grants		(60	)		(72	)		(281	)		(236	)
Net income attributable to UHS—basic and diluted	$	173,689		$	172,725		$	680,247		$	545,107
Weighted average number of common shares—basic		98,416			98,808			98,797			98,826
Basic earnings per share attributable to UHS:	$	1.76		$	1.75		$	6.89		$	5.52
Weighted average number of common shares		98,416			98,808			98,797			98,826
Add: Other share equivalents		1,627			1,943			1,897			1,718
Weighted average number of common shares and equiv.—diluted		100,043			100,751			100,694			100,544
Diluted earnings per share attributable to UHS:	$	1.74		$	1.71		$	6.76		$	5.42

Universal Health Services, Inc.

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

For the three months ended December 31, 2015 and 2014

(in thousands, except per share amounts)

(unaudited)

Calculation of “EBITDA”

	Three months ended December 31, 2015						Three months ended December 31, 2014
Net revenues before provision for doubtful accounts	$	2,512,872					$	2,333,339
Less: Provision for doubtful accounts		197,633						157,048
Net revenues		2,315,239			100.0	%		2,176,291			100.0	%
Operating charges:
Salaries, wages and benefits		1,079,394			46.6	%		994,593			45.7	%
Other operating expenses		548,745			23.7	%		528,417			24.3	%
Supplies expense		252,109			10.9	%		233,413			10.7	%
EHR incentive income		(14,064	)		-0.6	%		(23,873	)		-1.1	%
		1,866,184			80.6	%		1,732,550			79.6	%
Operating income/margin (“EBITDAR”)		449,055			19.4	%		443,741			20.4	%
Lease and rental expense		24,342						23,337
Income attributable to noncontrolling interests		17,568						17,695
Earnings before, depreciation and amortization, interest expense, and income taxes (“EBITDA”)		407,145			17.6	%		402,709			18.5	%
Depreciation and amortization		102,921						98,118
Costs related to extinguishment of debt		0						0
Interest expense, net		28,643						31,225
Income before income taxes		275,581						273,366
Provision for income taxes		101,832						100,569
Net income attributable to UHS	$	173,749					$	172,797
Calculation of Adjusted Net Income Attributable to UHS
	Three months ended December 31, 2015						Three months ended December 31, 2014
	Amount			Per Diluted Share			Amount			Per Diluted Share
Calculation of Adjusted Net Income Attributable to UHS—including and excluding EHR impact:
Net income attributable to UHS	$	173,749		$	1.74		$	172,797		$	1.71
Plus/minus adjustments:
Litigation settlement, net of income taxes		—			—			(493	)		—
Reduction of reserves relating to prior years for professional and general liability self-insured claims, net of income taxes		—			—			(11,707	)		(0.12	)
Subtotal after-tax adjustments to net income attributable to UHS		—			—			(12,200	)		(0.12	)
Adjusted net income attributable to UHS—including Electronic Health Records (“EHR”) impact	$	173,749		$	1.74		$	160,597		$	1.59
Plus/minus impact of EHR implementation:
EHR-related incentive income, pre-tax		(14,064	)					(23,873	)
EHR-related depreciation & amortization, pre-tax		9,306						9,361
EHR-related minority interest in earnings of consolidated entities, pre-tax		(152	)					727
Income tax provision on EHR-related items		1,830						5,147
After-tax impact of EHR-related items		(3,080	)		(0.03	)		(8,638	)		(0.08	)
Adjusted net income attributable to UHS	$	170,669		$	1.71		$	151,959		$	1.51

Universal Health Services, Inc.

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

For the twelve months ended December 31, 2015 and 2014

(in thousands, except per share amounts)

(unaudited)

Calculation of “EBITDA”
	Twelve months ended						Twelve months ended
	December 31, 2015						December 31, 2014
Net revenues before provision for doubtful accounts	$	9,784,724					$	8,904,071
Less: Provision for doubtful accounts		741,273						698,983
Net revenues		9,043,451			100.0	%		8,205,088			100.0	%
Operating charges:
Salaries, wages and benefits		4,212,387			46.6	%		3,845,461			46.9	%
Other operating expenses		2,119,805			23.4	%		1,922,743			23.4	%
Supplies expense		974,088			10.8	%		895,693			10.9	%
EHR incentive income		(15,815	)		-0.2	%		(27,902	)		-0.3	%
		7,290,465			80.6	%		6,635,995			80.9	%
Operating income/margin (“EBITDAR”)		1,752,986			19.4	%		1,569,093			19.1	%
Lease and rental expense		94,973						93,993
Income attributable to noncontrolling interests		70,170						59,653
Earnings before, depreciation and amortization, interest expense, and income taxes (“EBITDA”)		1,587,843			17.6	%		1,415,447			17.3	%
Depreciation and amortization		398,618						375,624
Costs related to extinguishment of debt		0						36,171
Interest expense, net		113,494						133,638
Income before income taxes		1,075,731						870,014
Provision for income taxes		395,203						324,671
Net income attributable to UHS	$	680,528					$	545,343
Calculation of Adjusted Net Income Attributable to UHS
	Twelve months ended						Twelve months ended
	December 31, 2015						December 31, 2014
	Amount			Per Diluted Share			Amount			Per Diluted Share
Calculation of Adjusted Net Income Attributable to UHS—including and excluding EHR impact:
Net income attributable to UHS	$	680,528		$	6.76		$	545,343		$	5.42
Plus/minus adjustments:
Gain on sale of investment, net of income taxes		—			—			(6,330	)		(0.06	)
Litigation settlement, net of income taxes		—			—			27,077			0.27
Costs related to extinguishment of debt, net of income taxes		—			—			22,665			0.23
Reduction of reserves relating to prior years for professional and general liability self-insured claims, net of income taxes		—			—			(11,707	)		(0.12	)
Subtotal after-tax adjustments to net income attributable to UHS		—			—			31,705			0.32
Adjusted net income attributable to UHS—including Electronic Health Records (“EHR”) impact	$	680,528		$	6.76		$	577,048		$	5.74
Plus/minus impact of EHR implementation:
EHR-related incentive income, pre-tax		(15,815	)					(27,902	)
EHR-related depreciation & amortization, pre-tax		37,224						37,273
EHR-related minority interest in earnings of consolidated entities, pre-tax		(3,044	)					(1,844	)
Income tax provision on EHR-related items		(6,846	)					(2,822	)
After-tax impact of EHR-related items		11,519			0.11			4,705			0.04
Adjusted net income attributable to UHS	$	692,047		$	6.87		$	581,753		$	5.78

Universal Health Services, Inc.

Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)

	Three months						Twelve months
	ended December 31,						ended December 31,
	2015			2014			2015			2014
Net income	$	191,317		$	190,492		$	750,698		$	604,996
Other comprehensive income (loss):
Unrealized derivative gains (loss) on cash flow hedges		9,920			4,746			4,970			17,668
Amortization of terminated hedge		(84	)		(84	)		(336	)		(336	)
Minimum pension liability		2,177			(14,270	)		2,177			(14,270	)
Foreign currency translation adjustment		(1,632	)		75			(1,728	)		(2,431	)
Other comprehensive income before tax		10,381			(9,533	)		5,083			631
Income tax expense related to items of other comprehensive income		4,510			(3,632	)		2,980			1,053
Total other comprehensive income, net of tax		5,871			(5,901	)		2,103			(422	)
Comprehensive income		197,188			184,591			752,801			604,574
Less: Comprehensive income attributable to noncontrolling interests		17,568			17,695			70,170			59,653
Comprehensive income attributable to UHS	$	179,620		$	166,896		$	682,631		$	544,921

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

	December 31, 2015			December 31, 2014
Assets
Current assets:
Cash and cash equivalents	$	61,228		$	32,069
Accounts receivable, net		1,302,429			1,282,735
Supplies		116,037			108,115
Deferred income taxes		135,120			114,565
Other current assets		103,490			77,654
Total current assets		1,718,304			1,615,138
Property and equipment		6,530,569			6,212,030
Less: accumulated depreciation		(2,694,591	)		(2,532,341	)
		3,835,978			3,679,689
Other assets:
Goodwill		3,596,114			3,291,213
Deferred charges		35,357			40,319
Other		448,360			348,084
	$	9,634,113		$	8,974,443
Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt	$	62,722		$	68,319
Accounts payable and accrued liabilities		1,033,697			1,113,062
Federal and state taxes		3,987			1,446
Total current liabilities		1,100,406			1,182,827
Other noncurrent liabilities		278,834			268,555
Long-term debt		3,387,303			3,210,215
Deferred income taxes		315,900			282,214
Redeemable noncontrolling interest		242,509			239,552
UHS common stockholders’ equity		4,249,647			3,735,946
Noncontrolling interest		59,514			55,134
Total equity		4,309,161			3,791,080
	$	9,634,113		$	8,974,443

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	Twelve months ended December 31,
	2015			2014
Cash Flows from Operating Activities:
Net income	$	750,698		$	604,996
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization		398,618			375,624
Gains on sales of assets and businesses, net of losses		(3,615	)		(7,837	)
Stock-based compensation expense		39,971			31,092
Costs related to extinguishment of debt		0			19,730
Changes in assets & liabilities, net of effects from acquisitions and dispositions:
Accounts receivable		(45,814	)		(105,708	)
Accrued interest		(693	)		4,400
Accrued and deferred income taxes		(34,394	)		33,920
Other working capital accounts		(125,556	)		73,912
Other assets and deferred charges		6,631			13,667
Other		23,295			2,449
Accrued insurance expense, net of commercial premiums paid		90,895			59,276
Payments made in settlement of self-insurance claims		(79,138	)		(69,645	)
Net cash provided by operating activities		1,020,898			1,035,876
Cash Flows from Investing Activities:
Property and equipment additions, net of disposals		(379,321	)		(391,150	)
Acquisition of property and businesses		(533,655	)		(431,386	)
Proceeds received from sales of assets and businesses		3,391			15,178
Costs incurred for purchase and implementation of electronic health records application		0			(13,488	)
Increase in insurance subsidiary investments		(3,300	)		(12,000	)
Net cash used in investing activities		(912,885	)		(832,846	)
Cash Flows from Financing Activities:
Reduction of long-term debt		(68,166	)		(879,129	)
Additional borrowings		234,400			830,000
Financing costs		(515	)		(14,976	)
Repurchase of common shares		(209,782	)		(100,749	)
Dividends paid		(39,532	)		(29,665	)
Issuance of common stock		8,441			6,863
Excess income tax benefits related to stock-based compensation		47,364			33,912
Profit distributions to noncontrolling interests		(62,220	)		(33,680	)
Proceeds received from sale/leaseback of real property		12,765			0
Net cash used in financing activities		(77,245	)		(187,424	)
Effect of exchange rate changes on cash and cash equivalents		(1,609	)		(775	)
Increase in cash and cash equivalents		29,159			14,831
Cash and cash equivalents, beginning of period		32,069			17,238
Cash and cash equivalents, end of period	$	61,228		$	32,069
Supplemental Disclosures of Cash Flow Information:
Interest paid, including early redemption premium and original issue discount write-off in 2014	$	107,054		$	130,279
Income taxes paid, net of refunds	$	380,658		$	258,612
Noncash purchases of property and equipment	$	49,086		$	35,469

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)

Same Facility:	% Change Quarter ended			% Change 12 months ended
	12/31/2015			12/31/2015
Acute Care Hospitals
Revenues		7.3	%		8.7	%
Adjusted Admissions		4.8	%		5.4	%
Adjusted Patient Days		3.9	%		5.5	%
Revenue Per Adjusted Admission		3.3	%		3.9	%
Revenue Per Adjusted Patient Day		4.2	%		3.7	%
Behavioral Health Hospitals
Revenues		3.6	%		5.0	%
Adjusted Admissions		0.2	%		2.9	%
Adjusted Patient Days		0.7	%		1.2	%
Revenue Per Adjusted Admission		3.1	%		1.8	%
Revenue Per Adjusted Patient Day		2.5	%		3.4	%

UHS Consolidated	Fourth quarter ended						Twelve months ended
	12/31/2015			12/31/2014			12/31/2015			12/31/2014
Revenues	$	2,315,239		$	2,176,291		$	9,043,451		$	8,205,088
EBITDA (1)		407,145			402,709			1,587,843			1,415,447
EBITDA Margin (1)		17.6	%		18.5	%		17.6	%		17.3	%
Cash Flow From Operations		224,399			346,322			1,020,898			1,035,876
Days Sales Outstanding		52			54			53			57
Capital Expenditures		109,743			81,789			379,321			391,150
Debt								3,450,025			3,278,534
UHS’ Shareholders Equity								4,249,647			3,735,946
Debt / Total Capitalization								44.8	%		46.7	%
Debt / EBITDA (2)								2.17			2.32
Debt / Cash From Operations (2)								3.38			3.16
Acute Care EBITDAR Margin (3)		17.2	%		16.8	%		18.5	%		17.9	%
Behavioral Health EBITDAR Margin (3)		27.1	%		27.9	%		27.9	%		27.9	%

(1) Net of Minority Interest

(2) Latest 4 quarters

(3) Same facility basis, before Corporate overhead allocation and minority interest.

Universal Health Services, Inc.

Selected Hospital Statistics

For the three months ended

December 31, 2015 and 2014

AS REPORTED:

	ACUTE									BEHAVIORAL HEALTH
	12/31/15			12/31/14			% change			12/31/15			12/31/14			% change
Hospitals owned and leased		24			24			0.0	%		208			203			2.5	%
Average licensed beds		5,854			5,769			1.5	%		21,628			20,925			3.4	%
Patient days		299,524			292,009			2.6	%		1,473,065			1,414,337			4.2	%
Average daily census		3,255.7			3,174.0			2.6	%		16,011.6			15,373.2			4.2	%
Occupancy-licensed beds		55.6	%		55.0	%		1.1	%		74.0	%		73.5	%		0.7	%
Admissions		65,802			63,578			3.5	%		108,646			106,845			1.7	%
Length of stay		4.6			4.6			-0.9	%		13.6			13.2			2.4	%
Inpatient revenue	$	4,214,646		$	3,725,782			13.1	%	$	1,891,006		$	1,716,120			10.2	%
Outpatient revenue		2,472,740			2,063,316			19.8	%		215,969			203,682			6.0	%
Total patient revenue		6,687,386			5,789,098			15.5	%		2,106,975			1,919,802			9.7	%
Other revenue		94,222			88,608			6.3	%		49,363			50,041			-1.4	%
Gross hospital revenue		6,781,608			5,877,706			15.4	%		2,156,338			1,969,843			9.5	%
Total deductions		5,423,707			4,623,897			17.3	%		1,003,219			894,753			12.1	%
Net hospital revenue before provision for doubtful accounts		1,357,901			1,253,809			8.3	%		1,153,119			1,075,090			7.3	%
Provision for doubtful accounts		172,134			130,065			32.3	%		25,498			26,921			-5.3	%
Net hospital revenue	$	1,185,767		$	1,123,744			5.5	%	$	1,127,621		$	1,048,169			7.6	%

SAME FACILITY:

	ACUTE									BEHAVIORAL HEALTH (1)
	12/31/15			12/31/14			% change			12/31/15			12/31/14			% change
Hospitals owned and leased		24			24			0.0	%		198			198			0.0	%
Average licensed beds		5,854			5,769			1.5	%		20,849			20,665			0.9	%
Patient days		299,524			292,009			2.6	%		1,418,346			1,400,341			1.3	%
Average daily census		3,255.7			3,174.0			2.6	%		15,416.8			15,221.1			1.3	%
Occupancy-licensed beds		55.6	%		55.0	%		1.1	%		73.9	%		73.7	%		0.4	%
Admissions		65,802			63,578			3.5	%		107,258			106,440			0.8	%
Length of stay		4.6			4.6			-0.9	%		13.2			13.2			0.5	%

(1) Timberlawn of Garland, ALPHA UK, Taunton UK and the Foundations Recovery Network entities are excluded in both current and prior years.

Universal Health Services, Inc.

Selected Hospital Statistics

For the twelve months ended

December 31, 2015 and 2014

AS REPORTED:

	ACUTE									BEHAVIORAL HEALTH
	12/31/15			12/31/14			% change			12/31/15			12/31/14			% change
Hospitals owned and leased		24			24			0.0	%		208			203			2.5	%
Average licensed beds		5,832			5,776			1.0	%		21,202			20,231			4.8	%
Patient days		1,218,991			1,167,726			4.4	%		5,835,134			5,518,660			5.7	%
Average daily census		3,339.7			3,199.2			4.4	%		15,986.7			15,119.6			5.7	%
Occupancy-licensed beds		57.3	%		55.4	%		3.4	%		75.4	%		74.7	%		0.9	%
Admissions		261,727			251,165			4.2	%		447,007			426,510			4.8	%
Length of stay		4.7			4.6			1.2	%		13.1			12.9			1.2	%
Inpatient revenue	$	16,847,944		$	14,943,102			12.7	%	$	7,456,397		$	6,689,753			11.5	%
Outpatient revenue		9,604,952			8,147,031			17.9	%		839,884			784,309			7.1	%
Total patient revenue		26,452,896			23,090,133			14.6	%		8,296,281			7,474,062			11.0	%
Other revenue		362,620			261,835			38.5	%		206,563			185,997			11.1	%
Gross hospital revenue		26,815,516			23,351,968			14.8	%		8,502,844			7,660,059			11.0	%
Total deductions		21,551,939			18,583,481			16.0	%		3,992,367			3,538,873			12.8	%
Net hospital revenue before provision for doubtful accounts		5,263,577			4,768,487			10.4	%		4,510,477			4,121,186			9.4	%
Provision for doubtful accounts		631,013			590,384			6.9	%		110,142			108,970			1.1	%
Net hospital revenue	$	4,632,564		$	4,178,103			10.9	%	$	4,400,335		$	4,012,216			9.7	%

SAME FACILITY:

	ACUTE									BEHAVIORAL HEALTH (1)
	12/31/15			12/31/14			% change			12/31/15			12/31/14			% change
Hospitals owned and leased		24			24			0.0	%		198			198			0.0	%
Average licensed beds		5,832			5,776			1.0	%		20,103			19,931			0.9	%
Patient days		1,218,991			1,167,726			4.4	%		5,557,381			5,469,817			1.6	%
Average daily census		3,339.7			3,199.2			4.4	%		15,225.7			14,985.8			1.6	%
Occupancy-licensed beds		57.3	%		55.4	%		3.4	%		75.7	%		75.2	%		0.7	%
Admissions		261,727			251,165			4.2	%		439,219			425,625			3.2	%
Length of stay		4.7			4.6			0.2	%		12.7			12.9			-1.5	%

(1) Timberlawn of Garland, ALPHA UK, Taunton UK and the Foundations Recovery Network entities are excluded in both current and prior years.