PR Newswire | Jul 26, 2021 04:17PM EDT

Increases 2021 Full Year Earnings Guidance And Announces $1 Billion Increase To Stock Repurchase Program Authorization

07/26 15:16 CDT

Universal Health Services, Inc. Reports 2021 Second Quarter Financial Results, Increases 2021 Full Year Earnings Guidance And Announces $1 Billion Increase To Stock Repurchase Program AuthorizationConsolidated Results of Operations, As Reported and As Adjusted - Three-month periods ended June 30, 2021 and 2020: KING OF PRUSSIA, Pa., July 26, 2021

KING OF PRUSSIA, Pa., July 26, 2021 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $325.0 million, or $3.79 per diluted share, during the second quarter of 2021, as compared to $251.9 million, or $2.95 per diluted share, during the second quarter of 2020. Net revenues increased 17.1% to $3.198 billion during the second quarter of 2021 as compared to $2.730 billion during the second quarter of 2020.

As reflected on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our adjusted net income attributable to UHS during the second quarter of 2021 was $322.3 million, or $3.76 per diluted share, as compared to $250.2 million, or $2.93 per diluted share, during the second quarter of 2020.

During 2021, we received approximately $189 million of additional funds from the federal government in connection with the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), substantially all of which was received during the first quarter of 2021. During the second quarter of 2021, we returned the $189 million to the appropriate government agencies utilizing a portion of our cash and cash equivalents held on deposit. Therefore, our results of operations for the three and six-month periods ended June 30, 2021 include no impact from the receipt of those funds.

Also, and as previously announced earlier this year, in March of 2021 we made an early repayment of $695 million of funds received during 2020 pursuant to the Medicare Accelerated and Advance Payment Program. These funds were returned to the government utilizing a portion of our cash and cash equivalents held on deposit.

Included in our reported and adjusted net income attributable to UHS during the three and six-month periods ended June 30, 2021 was a net favorable after-tax impact of approximately $29.8 million, or $.35 per diluted share, resulting from:

* a favorable after-tax impact of $42.3 million, or $.49 per diluted share, resulting from $55.3 million of revenues recorded during the second quarter of 2021 in connection with the Kentucky Medicaid Managed Care Hospital Rate Increase Program, covering the period of July 1, 2020 to June 30, 2021, as discussed below in Kentucky Hospital Rate Increase Program; * an unfavorable after-tax impact of approximately $27.2 million, or $.32 per diluted share, resulting from a $36.0 million increase to our reserves for self-insured professional and general liability claims, as discussed below in Increase to Self-Insured Professional and General Liability Reserves, and; * an aggregate favorable after-tax impact of $14.6 million, or $.17 per diluted share, resulting from aggregate commercial insurance proceeds of $19.3 million received during the second quarter of 2021 in connection with the previously incurred, unfavorable economic impact from the following: (i) the previously disclosed information technology incident that occurred during 2020 ($10.0 million of insurance proceeds received representing partial recovery of the loss sustained), and; (ii) the COVID-19 pandemic ($9.3 million of insurance proceeds received representing recovery of the policy maximum).

Included in our reported and adjusted net income attributable to UHS during the three-month period ended June 30, 2020 was approximately $161.9 million, or $1.90 per diluted share, resulting from the recognition of approximately $218 million of net revenues recorded in connection with various governmental stimulus programs, most notably the CARES Act. Approximately $157 million of the governmental stimulus program net revenues were attributable to our acute care services and approximately $61 million were attributable to our behavioral health care services.

As reflected on the Supplemental Schedule, included in our reported results during the second quarter of 2021, was a net aggregate favorable after-tax impact of $2.7 million, or $.03 per diluted share, consisting of the following: (i) an after-tax unrealized gain of $1.6 million, or $.02 per diluted share, ($2.1 million pre-tax which is included in "Other (income) expense, net"), resulting from an increase in the market value of shares of certain marketable securities held for investment and classified as available for sale, and; (ii) a favorable after-tax impact of $1.2 million, or $.01 per diluted share, resulting from our adoption of ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09").

As reflected on the Supplemental Schedule, included in our reported results during the second quarter of 2020, was a net aggregate favorable after-tax impact of $1.7 million, or $.02 per diluted share, consisting of the following: (i) an after-tax unrealized gain of $2.2 million, or $.03 per diluted share, resulting from an increase in the market value of shares of certain marketable securities held for investment and classified as available for sale, and; (ii) an unfavorable after-tax impact of $0.5 million, or $.01 per diluted share, resulting from our adoption of ASU 2016-09.

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 $581.8 million during the second quarter of 2021, as compared to $482.8 million during the second quarter of 2020. Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impact of other (income) expense, net, was $572.7 million during the second quarter of 2021 as compared to $479.7 million during the second quarter of 2020.

Consolidated Results of Operations, As Reported and As Adjusted - Six-month periods ended June 30, 2021 and 2020:

Reported net income attributable to UHS was $534.1 million, or $6.22 per diluted share, during the six-month period ended June 30, 2021, as compared to $394.0 million, or $4.58 per diluted share, during the first six months of 2020. Net revenues increased 11.7% to $6.211 billion during the first six months of 2021 as compared to $5.559 billion during the comparable period of 2020.

As reflected on the Supplemental Schedule, our adjusted net income attributable to UHS during the six-month period ended June 30, 2021 was $532.4 million, or $6.20 per diluted share, as compared to $400.4 million, or $4.65 per diluted share, during the first six months of 2020.

Included in our reported and adjusted net income attributable to UHS during the six-month period ended June 30, 2021, was the net favorable after-tax impact of approximately $29.8 million, or $.35 per diluted share, as discussed above.

Our reported and adjusted net income attributable to UHS during the six-month period ended June 30, 2020 included approximately $161.9 million, or $1.89 per diluted share, resulting from the above-mentioned recognition of approximately $218 million of net revenues recorded in connection with various governmental stimulus programs, most notably the CARES Act.

As reflected on the Supplemental Schedule, included in our reported results during the six-month period ended June 30, 2021, was a net aggregate favorable after-tax impact of $1.7 million, or $.02 per diluted share, consisting of the following: (i) an after-tax unrealized loss of $0.5 million, or $.01 per diluted share, resulting from a decrease in the market value of shares of certain marketable securities held for investment and classified as available for sale, and; (ii) a favorable after-tax impact of $2.2 million, or $.03 per diluted share, resulting from our adoption of ASU 2016-09.

As reflected on the Supplemental Schedule, included in our reported results during the six-month period ended June 30, 2020, was a net aggregate unfavorable after-tax impact of $6.4 million, or $.07 per diluted share, consisting of the following: (i) an after-tax unrealized loss of $5.1 million, or $.06 per diluted share, resulting from a decrease in the market value of shares of certain marketable securities held for investment and classified as available for sale, and; (ii) an unfavorable after-tax impact of $1.3 million, or $.01 per diluted share, resulting from our adoption of ASU 2016-09.

As calculated on the attached Supplemental Schedule, our EBITDA net of NCI, was $1.008 billion during the six-month period ended June 30, 2021, as compared to $831.9 million during the first six months of 2020. Our Adjusted EBITDA net of NCI, which excludes the impact of other (income) expense, net, was $999.8 million during the six-month period ended June 30, 2021, as compared to $838.3 million during the first six months of 2020.

Acute Care Services - Three and six-month periods ended June 30, 2021 and 2020:

During the second quarter of 2021, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased 26.4% and adjusted patient days increased 21.6%, as compared to the second quarter of 2020. During the second quarter of 2021, patient volumes at our acute care hospitals, as compared to the same period of 2020, reflect robust recoveries from the COVID-19 pandemic-related restrictions and policies that negatively affected patient volumes during the second quarter of 2020.

At these facilities, excluding the governmental stimulus revenues of approximately $157 million recorded during the second quarter of 2020, net revenue per adjusted admission increased 5.1% while net revenue per adjusted patient day increased 9.3% during the second quarter of 2021, as compared to the second quarter of 2020. During the second quarter of 2021, as compared to the second quarter of 2020, net revenues generated from our acute care services on a same facility basis increased 18.5% including the governmental stimulus revenues recorded during the second quarter of 2020, and increased 33.0% excluding the governmental stimulus revenues recorded during the second quarter of 2020.

During the six-month period ended June 30, 2021, at our acute care hospitals on a same facility basis, adjusted admissions increased 4.7% and adjusted patient days increased 9.3%, as compared to the first six months of 2020. At these facilities, excluding the governmental stimulus revenues of approximately $157 million recorded during the first six months of 2020, net revenue per adjusted admission increased 15.7% while net revenue per adjusted patient day increased 10.8% during the first six months of 2021, as compared to the comparable period of 2020. During the first six months of 2021, as compared to the comparable period of 2020, net revenues generated from our acute care services on a same facility basis increased 15.0% including the governmental stimulus revenues recorded during the first six months of 2020, and increased 21.5% excluding the governmental stimulus revenues recorded during the first six months of 2020.

Behavioral Health Care Services - Three and six-month periods ended June 30, 2021 and 2020:

During the second quarter of 2021, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 14.1% and adjusted patient days increased 7.4%, as compared to the second quarter of 2020. During the second quarter of 2021, patient volumes at our behavioral health care hospitals, as compared to the same period of 2020, reflect robust recoveries from the COVID-19 pandemic-related restrictions and policies that negatively affected patient volumes during the second quarter of 2020.

At these facilities, excluding the governmental stimulus revenues of approximately $61 million recorded during the second quarter of 2020, net revenue per adjusted admission increased 1.9% while net revenue per adjusted patient day increased 8.3% during the second quarter of 2021, as compared to the second quarter of 2020. During the second quarter of 2021, as compared to the second quarter of 2020, net revenues generated from our behavioral health care services on a same facility basis increased 13.7% including the governmental stimulus revenues recorded during the second quarter of 2020, and increased 19.5% excluding the governmental stimulus revenues recorded during the second quarter of 2020.

During the six-month period ended June 30, 2021, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 3.8% and adjusted patient days increased 1.6%, as compared to the first six months of 2020. At these facilities, excluding the governmental stimulus revenues of approximately $61 million recorded during the first six months of 2020, net revenue per adjusted admission increased 4.9% while net revenue per adjusted patient day increased 7.2% during the first six months of 2021, as compared to the comparable period of 2020. During the first six months of 2021, as compared to the comparable period of 2020, net revenues generated from our behavioral health care services on a same facility basis increased 7.2% including the governmental stimulus revenues recorded during the first six months of 2020, and increased 9.8% excluding the governmental stimulus revenues recorded during the first six months of 2020.

COVID-19

The impact of the COVID-19 pandemic, which began during the second half of March, 2020, has had a material unfavorable effect on our operations and financial results since that time. The COVID-19 vaccination process commenced during the first quarter of 2021 and we have generally experienced a decline in COVID-19 patients since that time as well as a corresponding recovery in non-COVID-19 patient activity. Since the future volumes and severity of COVID-19 patients remain highly uncertain and subject to change, including potential increases in future COVID-19 patient volumes caused by new variants of the virus, we are not able to fully quantify the impact that these factors will have on our future financial results. However, developments related to the COVID-19 pandemic could materially affect our financial performance during the remainder of 2021.

Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

For the six months ended June 30, 2021, our net cash provided by operating activities was $119 million as compared to $1.451 billion during the first six months of 2020. The $1.332 billion net decrease in our cash provided by operating activities during the first six months of 2021, as compared to the first six months of 2020, was due to: (i) an unfavorable change of $1.174 billion resulting primarily from the above-mentioned $695 million of Medicare accelerated payments repaid during the first quarter of 2021, as compared to a favorable change of $477 million experienced during the first six months of 2020 resulting from receipt of the Medicare accelerated payments and other deferred governmental stimulus grants; (ii) an unfavorable change of $167 million in accounts receivable; (iii) a favorable change of $151 million resulting from an increase in net income plus depreciation and amortization expense, stock-based compensation expense, gain/loss on sales of assets and businesses and provision for asset impairment, and; (iv) an unfavorable change of $143 million in accrued and deferred income taxes due, in part, to COVID-19 related deferrals granted in 2020 by the Federal government and those of certain states, which deferred income tax payments into the third quarter of 2020, that were originally scheduled to be remitted during the second quarter of 2020.

Liquidity:

As of June 30, 2021, we had $996 million of aggregate available borrowing capacity pursuant to our $1 billion revolving credit facility, net of outstanding letters of credit. In addition, as of June 30, 2021, we had approximately $199 million of cash and cash equivalents.

Revised 2021 Operating Results Forecasts:

Based upon the operating trends and financial results experienced during the first six months of 2021, as indicated on the Revised Forecast table below, we are increasing our guidance range for consolidated net revenues; earnings before interest, taxes, depreciation & amortization, and the impacts of other income/expense and net income attributable to noncontrolling interests ("Adjusted EBITDA, net of NCI"), and adjusted net income attributable to UHS per diluted share ("Adjusted EPS-diluted") for the year ended December 31, 2021. The tables below include our revised 2021 operating results forecasts for the year ended December 31, 2021, as well as our original 2021 operating results forecast which was previously disclosed on February 25, 2021.

Revised Forecast Original Forecast

For the Year Ended For the Year Ended

December 31, 2021 December 31, 2021

Low High Low High

Net $12.351 billion $12.501 billion $12.125 billion $12.361 billionrevenues

AdjustedEBITDA, $1.883 billion $1.961 billion $1.738 billion $1.849 billionnet of NCI

AdjustedEPS - $11.46 per share $12.16 per share $10.05 per share $11.05 per sharediluted

* Our revised 2021 forecasted net revenues are estimated to be approximately $12.351 billion to $12.502 billion, representing increases of 1.1% to 1.9% over our original 2021 forecasted net revenues. * Our revised 2021 forecasted Adjusted EBITDA, net of NCI, is estimated to be approximately $1.883 billion to $1.961 billion, representing increases of 6.1% to 8.4% over our original 2021 forecasted Adjusted EBITDA, net of NCI. * Our revised 2021 forecasted Adjusted EPS-diluted is estimated to be $11.46 per share to $12.16 per share, representing increases of 10.0% to 14.0% over our original 2021 forecasted Adjusted EPS-diluted.

Adjusted EPS-diluted and Adjusted EBITDA net of NCI, are non-GAAP financial measures and should be examined in connection with net income determined in accordance with GAAP as presented in the consolidated financial statements and notes thereto in this report or in our filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2020 and our Form 10-Q for the quarter ended March 31, 2021. Please see the schedule of Supplemental Non-GAAP Disclosures - 2021 Revised Operating Results Forecast, as included herein for additional information and a reconciliation to the financial forecasts as computed in accordance with GAAP.

In addition, the 2021 revised forecasted amounts exclude the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as, pre-tax unrealized gains/losses resulting from increases/decreases in the market value of shares of certain marketable securities held for investment and classified as available for sale, our adoption of ASU 2016-09, and other potential material items including, but not limited to, reserves for various matters including settlements, legal judgments and lawsuits, potential impacts of non-ordinary course acquisitions, divestitures, joint ventures or other strategic transactions, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, impairment of long-lived and intangible assets, other amounts that may be reflected in the current financial statements that relate to prior periods, and the impact of share repurchases that differ from included assumptions. 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, including the likelihood that our future operations and financial results may continue to be materially impacted by developments related to COVID-19, as discussed herein.

Stock Repurchase Program:

On July 26, 2021, our Board of Directors authorized a $1.0 billion increase to our stock repurchase program, which increased the aggregate authorization to $3.7 billion from the previous $2.7 billion authorization approved in various increments since 2014. Pursuant to this program, which including today's increased authorization has a current aggregate available repurchase authorization of $1.210 billion, 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.

In April, 2021, our Board of Directors approved a resumption to our stock repurchase program which had been suspended in April, 2020, as part of various COVID-19 initiatives. In conjunction with our stock repurchase program, during the three-month period ended June 30, 2021, we have repurchased approximately 2.21 million shares at an aggregate cost of $350 million (approximately $158 per share). Since inception of the program in 2014 through June 30, 2021, we have repurchased approximately 20.23 million shares at an aggregate cost of approximately $2.49 billion (approximately $123 per share).

Kentucky Hospital Rate Increase Program:

In early 2021, the Centers for Medicare and Medicaid Services ("CMS") approved the Kentucky Medicaid Managed Care Hospital Rate Increase Program ("HRIP") for state fiscal year ("SFY") 2021. The CMS approval increased the program's statewide net benefit to eligible Kentucky hospitals to approximately $1.1 billion from the original approved pool size of $86 million. During the second quarter of 2021, Kentucky enacted legislation that authorizes increased HRIP payments to hospitals and CMS approved the applicable HRIP rate add-on amount for SFY 2021, which is retroactive to July 1, 2020.

This program change increased our reimbursement for SFY 2021, covering the period of July 1, 2020 through June 30, 2021, by an aggregate of approximately $55 million, which we recorded during the second quarter of 2021. Programs such as HRIP require an annual state submission and approval by CMS. In May, 2021, Kentucky submitted a request to CMS in order to continue the HRIP program for SFY 2022 with a similar payment methodology and payment level as the SFY 2021 program. However, we are unable predict if CMS will approve the HRIP for SFY 2022, and if approved, if the rates will be generally comparable to the SFY 2021 HRIP rates.

Increase to Self-Insured Professional and General Liability Reserves:

Our estimated liability for self-insured professional and general liability claims is based on a number of factors including, among other things, the number of asserted claims and reported incidents, estimates of losses for these claims based on recent and historical settlement amounts, estimates of incurred but not reported claims based on historical experience, and estimates of amounts recoverable under our commercial insurance policies. As a result of unfavorable trends recently experienced, during the second quarter of 2021, we recorded a $36.0 million increase to our reserves for self-insured professional and general liability claims.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on July 27, 2021. The dial-in number is 1-877-648-7971.

A live broadcast of the conference call will be available on our website at www.uhs.com. Also, 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:

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 were approximately $11.6 billion during 2020. In 2021, UHS was again recognized as one of the World's Most Admired Companies by Fortune; ranked #270 on the Fortune 500; and ranked #307 on Forbes' list of America's Largest Public Companies.

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 89,000 employees and through its subsidiaries operates 26 acute care hospitals, 334 behavioral health facilities, 39 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 38 U.S. states, Washington, D.C., Puerto Rico and the United Kingdom. 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 anticipated 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 1A-Risk Factors and in Item 7-Forward-Looking Statements and Risk Factors in our Form 10-K for the year ended December 31, 2020 and in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarterly period ended March 31, 2021), 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 the impact of the COVID-19 pandemic. Our future operations and financial results will likely be materially impacted by developments related to COVID-19 including, but not limited to, the potential impact on future COVID-19 patient volumes resulting from new variants of the virus, the length of time and severity of the spread of the pandemic; the volume of cancelled or rescheduled elective procedures and the volume of COVID-19 patients treated at our hospitals and other healthcare facilities; measures we are taking to respond to the COVID-19 pandemic; the impact of government and administrative regulation and stimulus on the hospital industry and potential retrospective adjustment in future periods of CARES Act and other grant income revenues recorded as revenues in prior periods; declining patient volumes and unfavorable changes in payer mix caused by deteriorating macroeconomic conditions (including increases in uninsured and underinsured patients as the result of business closings and layoffs); potential disruptions to our clinical staffing and shortages and disruptions related to supplies required for our employees and patients; and potential increases to expenses related to staffing, supply chain or other expenditures; the impact of our substantial indebtedness and the ability to refinance such indebtedness on acceptable terms, as well as risks associated with disruptions in the financial markets and the business of financial institutions as the result of the COVID-19 pandemic which could impact us from a financing perspective; and changes in general economic conditions nationally and regionally in our markets resulting from the COVID-19 pandemic. We are not able to fully quantify the impact that these factors will have on our future financial results, but developments related to the COVID-19 pandemic could materially affect our financial performance during the remainder of 2021.

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, our adoption of ASU 2016-09, unrealized gains/losses resulting from changes in the market value of shares of certain marketable securities held for investment and classified as available for sale, and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of long-lived and intangible assets, changes in the reserve established in connection with our discussions with the Department of Justice, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, 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-K for the year ended December 31, 2020, and our Report on Form 10-Q for the quarter ended March 31, 2021. 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.

Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

Three months Six months

ended June 30, ended June 30,

2021 2020 2021 2020

Net revenues $3,197,880 $2,729,754 $6,210,867 $5,559,421

Operating charges:

Salaries, wages and benefits 1,487,935 1,308,010 2,985,708 2,740,679

Other operating expenses 769,810 625,747 1,479,518 1,315,537

Supplies expense 338,033 283,572 685,143 601,399

Depreciation and amortization 133,985 126,208 265,388 250,602

Lease and rental expense 29,149 28,186 60,473 56,479

2,758,912 2,371,723 5,476,230 4,964,696

Income from operations 438,968 358,031 734,637 594,725

Interest expense, net 21,299 25,473 43,256 61,824

Other (income) expense, net (9,129) (3,100) (8,294) 6,460

Income before income taxes 426,798 335,658 699,675 526,441

Provision for income taxes 101,522 79,154 165,329 125,477

Net income 325,276 256,504 534,346 400,964

Less: Net income attributableto noncontrolling interests 252 4,575 231 6,998("NCI")

Net income attributable to UHS $325,024 $251,929 $534,115 $393,966

Basic earnings per share $3.85 $2.97 $6.31 $4.60attributable to UHS (a)

Diluted earnings per share $3.79 $2.95 $6.22 $4.58attributable to UHS (a)

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

Three months Six months

(a) Earnings per share calculation: ended June 30, ended June 30,

2021 2020 2021 2020

Basic and diluted:

Net income attributable to UHS $325,024 $251,929 $534,115 $393,966

Less: Net income attributable to (661) (824) (1,213) (1,197)unvested restricted share grants

Net income attributable to UHS - basic $324,363 $251,105 $532,902 $392,769and diluted

Weighted average number of common shares 84,224 84,632 84,503 85,422- basic

Basic earnings per share attributable to $3.85 $2.97 $6.31 $4.60UHS:

Weighted average number of common shares 84,224 84,632 84,503 85,422

Add: Other share equivalents 1,400 427 1,207 335

Weighted average number of common shares 85,624 85,059 85,710 85,757and equiv. - diluted

Diluted earnings per share attributable $3.79 $2.95 $6.22 $4.58to UHS:

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

For the Three Months ended June 30, 2021 and 2020

(in thousands, except per share amounts)

(unaudited)

Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciationand Amortization ("EBITDA/Adjusted EBITDA net of NCI")

Three months ended % Net Three months ended % Net

June 30, 2021 revenues June 30, 2020 revenues

Net incomeattributable $325,024 $251,929to UHS

Depreciation 133,985 126,208andamortization

Interest 21,299 25,473expense, net

Provisionfor income 101,522 79,154taxes

EBITDA net $581,830 18.2% $482,764 17.7%of NCI

Other(income) (9,129) (3,100)expense, net

AdjustedEBITDA net $572,701 17.9% $479,664 17.6%of NCI

Net revenues $3,197,880 $2,729,754

Calculation of Adjusted Net Income Attributable to UHS

Three months ended Three months ended

June 30, 2021 June 30, 2020

Per Per

Amount Diluted Share Amount Diluted Share

Net incomeattributable $325,024 $3.79 $251,929 $2.95to UHS

Plus/minusafter-taxadjustments:

Unrealizedgain onavailable (1,607) (0.02) (2,223) (0.03)for salemarketablesecurities

Impact of (1,120) (0.01) 505 0.01ASU 2016-09

Subtotal (2,727) (0.03) (1,718) (0.02)adjustments

Adjusted netincome $322,297 $3.76 $250,211 $2.93attributableto UHS

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

For the Six Months ended June 30, 2021 and 2020

(in thousands, except per share amounts)

(unaudited)

Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciationand Amortization ("EBITDA/Adjusted EBITDA net of NCI")

Six months ended % Net Six months ended % Net

June 30, 2021 revenues June 30, 2020 revenues

Net incomeattributable $534,115 $393,966to UHS

Depreciation 265,388 250,602andamortization

Interest 43,256 61,824expense, net

Provisionfor income 165,329 125,477taxes

EBITDA net of $1,008,088 16.2% $831,869 15.0%NCI

Other (income) (8,294) 6,460expense, net

AdjustedEBITDA net of $999,794 16.1% $838,329 15.1%NCI

Net revenues $6,210,867 $5,559,421

Calculation of Adjusted Net Income Attributable to UHS

Six months ended Six months ended

June 30, 2021 June 30, 2020

Per Per

Amount Diluted Share Amount Diluted Share

Net incomeattributable $534,115 $6.22 $393,966 $4.58to UHS

Plus/minusafter-taxadjustments:

Unrealizedloss onavailable for 530 0.01 5,127 0.06salemarketablesecurities

Impact of ASU (2,199) (0.03) 1,275 0.012016-09

Subtotal (1,669) (0.02) 6,402 0.07adjustments

Adjusted netincome $532,446 $6.20 $400,368 $4.65attributableto UHS

Universal Health Services, Inc.

Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)

Three months Six months

ended June 30, ended June 30,

2021 2020 2021 2020

Net income $325,276 $256,504 $534,346 $400,964

Other comprehensive income (loss):

Foreign currency translation (3,717) 6,676 (14,063) (32,525)adjustment

Other comprehensive income (loss) before (3,717) 6,676 (14,063) (32,525)tax

Income tax expense (benefit) related toitems of other comprehensive income (601) 898 (2,067) (1,210)(loss)

Total other comprehensive income (loss), (3,116) 5,778 (11,996) (31,315)net of tax

Comprehensive income 322,160 262,282 522,350 369,649

Less: Comprehensive income (loss) 252 4,575 231 6,998attributable to noncontrolling interests

Comprehensive income attributable to UHS $321,908 $257,707 $522,119 $362,651

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

June 30, December 31,

2021 2020

Assets

Current assets:

Cash and cash equivalents $ 199,017 $ 1,224,490

Accounts receivable, net 1,787,931 1,728,928

Supplies 195,141 190,417

Other current assets 183,216 138,034

Total current assets 2,365,305 3,281,869

Property and equipment 10,361,669 9,885,888

Less: accumulated depreciation (4,731,772) (4,512,764)

5,629,897 5,373,124

Other assets:

Goodwill 3,903,266 3,882,715

Deferred income taxes 34,945 22,689

Right of use assets-operating leases 317,231 336,513

Deferred charges 4,865 4,985

Other 557,126 574,984

Total Assets $ 12,812,635 $ 13,476,879

Liabilities and Stockholders' Equity

Current liabilities:

Current maturities of long-term debt $ 107,370 $ 331,998

Accounts payable and other liabilities 1,765,773 1,668,671

Medicare accelerated payments and deferred 1,757 376,151CARES Act and other grants

Operating lease liabilities 60,595 59,796

Federal and state taxes 33,315 44,423

Total current liabilities 1,968,810 2,481,039

Other noncurrent liabilities 522,007 458,549

Operating lease liabilities noncurrent 258,823 278,303

Medicare accelerated payments noncurrent 0 322,617

Long-term debt 3,486,222 3,524,253

Deferred income taxes 0 5,582

Redeemable noncontrolling interest 4,693 4,569

UHS common stockholders' equity 6,480,100 6,317,146

Noncontrolling interest 91,980 84,821

Total equity 6,572,080 6,401,967

Total Liabilities and Stockholders' Equity $ 12,812,635 $ 13,476,879

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Six months

ended June 30,

2021

Cash Flows from Operating Activities:

Net income $534,346 $400,964

Adjustments to reconcile net income to net

cash provided by operating activities:

Depreciation & amortization 265,388 250,602

(Gain) loss on sale of assets and businesses (4,803) 2,161

Stock-based compensation expense 37,031 33,954

Provision for asset impairment 7,195 0

Changes in assets & liabilities, net of effects from

acquisitions and dispositions:

Accounts receivable (35,903) 131,294

Accrued interest (1,459) (2,191)

Accrued and deferred income taxes (26,769) 116,707

Other working capital accounts 3,560 26,361

Medicare accelerated payments and deferred CARES Act (697,011) 477,099and other grants

Other assets and deferred charges (28,763) 5,095

Other 5,052 (7,659)

Accrued insurance expense, net of commercial premiums 104,079 81,016paid

Payments made in settlement of self-insurance claims (42,495) (64,034)

Net cash provided by operating activities 119,448 1,451,369

Cash Flows from Investing Activities:

Property and equipment additions (482,211) (354,610)

Proceeds received from sales of assets and businesses 21,143 6,440

Acquisition of businesses and property 0 (968)

Inflows (outflows) from foreign exchange contracts (21,487) 57,029that hedge our net U.K. investment

Decrease in capital reserves of commercial insurance 100 0subsidiary

Costs incurred for purchase and implementation of (1,246) (4,421)information technology applications

Investment in, and advances to, joint ventures and 0 (285)other

Net cash used in investing activities (483,701) (296,815)

Cash Flows from Financing Activities:

Reduction of long-term debt (278,785) (459,332)

Additional borrowings 6,578 5,453

Repurchase of common shares (368,080) (200,054)

Dividends paid (33,844) (17,344)

Issuance of common stock 6,442 5,852

Profit distributions to noncontrolling interests (5,617) (8,885)

Purchase of ownership interests by minority members 11,433 0

Net cash used in financing activities (661,873) (674,310)

Effect of exchange rate changes on cash, cash 660 (1,639)equivalents and restricted cash

(Decrease) increase in cash, cash equivalents and (1,025,466) 478,605restricted cash

Cash, cash equivalents and restricted cash, beginning of 1,279,154 105,667period

Cash, cash equivalents and restricted cash, end of $253,688 $584,272period

Supplemental Disclosures of Cash Flow Information:

Interest paid $43,641 $61,802

Income taxes paid, net of refunds $189,979 $14,394

Noncash purchases of property and equipment $95,979 $80,031

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)

% Change % Change

3 Months ended 6 Months ended

Same Facility: 6/30/2021 6/30/2021

Acute Care Hospitals

Revenues (a) 18.5% 15.0%

Revenues-excludes governmental stimulus revenues 33.0% 21.5%

Adjusted Admissions 26.4% 4.7%

Adjusted Patient Days 21.6% 9.3%

Revenue Per Adjusted Admission-excludes 5.1% 15.7%governmental stimulus revenues

Revenue Per Adjusted Patient Day-excludes 9.3% 10.8%governmental stimulus revenues

Behavioral Health Hospitals

Revenues (b) 13.7% 7.2%

Revenues-excludes governmental stimulus revenues 19.5% 9.8%

Adjusted Admissions 14.1% 3.8%

Adjusted Patient Days 7.4% 1.6%

Revenue Per Adjusted Admission-excludes 1.9% 4.9%governmental stimulus revenues

Revenue Per Adjusted Patient Day-excludes 8.3% 7.2%governmental stimulus revenues

(a) Includes governmental stimulus program revenues of $157 million recorded inthe three and six-month periods ended June 30, 2020.

(b) Includes governmental stimulus program revenues of $61 million recorded inthe three and six-month periods ended June 30, 2020.

UHS Consolidated Second Quarter Ended Six Months Ended

6/30/2021 6/30/2020 6/30/2021 6/30/2020

Revenues $3,197,880 $2,729,754 $6,210,867 $5,559,421

EBITDA net of NCI $581,830 $482,764 $1,008,088 $831,869

EBITDA Margin net of 18.2% 17.7% 16.2% 15.0%NCI

Adjusted EBITDA net $572,701 $479,664 $999,794 $838,329of NCI

Adjusted EBITDA 17.9% 17.6% 16.1% 15.1%Margin net of NCI

Cash Flow From $119,448 $1,451,369Operations

Days Sales 52 47Outstanding

Capital $482,211 $354,610Expenditures

Debt $3,593,592 $3,532,025

UHS' Shareholders $6,480,100 $5,688,647Equity

Debt / Total 35.7% 38.3%Capitalization

Debt / EBITDA net of 1.76 2.19NCI (1)

Debt / AdjustedEBITDA net of NCI 1.78 2.07(1)

Debt / Cash From 3.49 1.59Operations (1)

Net Debt / EBITDA 1.72 1.83net of NCI (1) (2)

Net Debt / AdjustedEBITDA net of NCI 1.73 1.73(1) (2)

Net Debt / Cash From 3.40 1.33Operations (1) (2)

(1) Latest 4 quarters.

(2) Debt, net of approximately $97 million of short-term cash investments as ofJune 30, 2021 and $574 million as of June 30, 2020.

Universal Health Services, Inc.

Acute Care Hospital Services

For the three and six months ended

June 30, 2021 and 2020

(in thousands)

Same FacilityBasis - Acute CareHospital Services

Three months ended Three months ended Six months ended Six months ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Amount % of Net Amount % of Net Amount % of Net Amount % of Net Revenues Revenues Revenues Revenues

Net revenues (a) $1,713,896 100.0% $1,446,099 100.0% $3,385,732 100.0% $2,943,222 100.0%

Operating charges:

Salaries, wages 691,019 40.3% 589,677 40.8% 1,397,830 41.3% 1,248,606 42.4%and benefits

Other operating 412,111 24.0% 344,384 23.8% 805,318 23.8% 719,915 24.5%expenses

Supplies expense 289,111 16.9% 233,419 16.1% 585,589 17.3% 497,949 16.9%

Depreciation and 82,959 4.8% 78,440 5.4% 164,143 4.8% 156,368 5.3%amortization

Lease and rental 18,046 1.1% 16,563 1.1% 38,158 1.1% 32,583 1.1%expense

Subtotal-operating 1,493,246 87.1% 1,262,483 87.3% 2,991,038 88.3% 2,655,421 90.2%expenses

Income from 220,650 12.9% 183,616 12.7% 394,694 11.7% 287,801 9.8%operations

Interest expense, 248 0.0% 516 0.0% 494 0.0% 1,134 0.0%net

Other (income) - - - - - - - -expense, net

Income before $220,402 12.9% $183,100 12.7% $394,200 11.6% $286,667 9.7%income taxes

All Acute CareHospital Services

Three months ended Three months ended Six months ended Six months ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Amount % of Net Amount % of Net Amount % of Net Amount % of Net Revenues Revenues Revenues Revenues

Net revenues (a) $1,754,431 100.0% $1,467,506 100.0% $3,448,973 100.0% $2,988,555 100.0%

Operating charges:

Salaries, wages 691,880 39.4% 589,762 40.2% 1,399,098 40.6% 1,248,721 41.8%and benefits

Other operating 453,063 25.8% 365,810 24.9% 869,070 25.2% 765,267 25.6%expenses

Supplies expense 289,225 16.5% 233,419 15.9% 585,704 17.0% 497,949 16.7%

Depreciation and 83,306 4.7% 78,440 5.3% 164,668 4.8% 156,368 5.2%amortization

Lease and rental 18,046 1.0% 16,563 1.1% 38,158 1.1% 32,583 1.1%expense

Subtotal-operating 1,535,520 87.5% 1,283,994 87.5% 3,056,698 88.6% 2,700,888 90.4%expenses

Income from 218,911 12.5% 183,512 12.5% 392,275 11.4% 287,667 9.6%operations

Interest expense, 248 0.0% 516 0.0% 494 0.0% 1,134 0.0%net

Other (income) - - - - - - - -expense, net

Income before $218,663 12.5% $182,996 12.5% $391,781 11.4% $286,533 9.6%income taxes

(a) Includes $157 million of CARES Act and other grant revenues in each of thethree and six-months periods ended June 30, 2020.

We believe that providing our results on a "Same Facility" basis (which is anon-GAAP measure), which includes the operating results for facilities andbusinesses operated in both the current year and prior year periods, is helpfulto our investors as a measure of our operating performance. Our Same Facilityresults also neutralize (if applicable), the effect of material items that arenonrecurring or non-operational in nature including items such as, but notlimited to, reserves for various matters, settlements, legal judgments andlawsuits, cost related to extinguishment of debt, gains/losses on sales ofassets and businesses, impairments of long-lived and intangible assets andother amounts that may be reflected in the current or prior year financialstatements that relate to prior periods. Our Same Facility basis resultsexclude from net revenues and other operating expenses, provider taxassessments incurred in each period. However, these provider tax assessmentsare included in net revenues and other operating expenses as reflected in thetable under All Acute Care Hospital Services. The provider tax assessments hadno impact on the income before income taxes as reflected on the above tablessince the amounts offset between net revenues and other operating expenses. Toobtain a complete understanding of our financial performance, the Same Facilityresults should be examined in connection with our net income as determined inaccordance with GAAP and as presented herein and the condensed consolidatedfinancial statements and notes thereto as contained in our Form 10-K for theyear ended December 31, 2020 and Form 10-Q for the quarter ended March 31,2021.

The All Acute Care Hospital Servicestable summarizes the results of operationsfor all our acute care operations during the periods presented. These amountsinclude: (i) our acute care results on a same facility basis, as indicatedabove; (ii) the impact of provider tax assessments which increased net revenuesand other operating expenses but had no impact on income before income taxes,and; (iii) certain other amounts including the results of facilities acquiredor opened during the last twelve months.

Universal Health Services, Inc.

Behavioral Health Care Services

For the three and six months ended

June 30, 2021 and 2020

(in thousands)

Same Facility -Behavioral HealthCare Services

Three months ended Three months ended Six months ended Six months ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Amount % of Net Amount % of Net Amount % of Net Amount % of Net Revenues Revenues Revenues Revenues

Net revenues (a) $1,409,556 100.0% $1,239,959 100.0% $2,701,598 100.0% $2,521,011 100.0%

Operating charges:

Salaries, wages 710,239 50.4% 648,124 52.3% 1,411,806 52.3% 1,338,499 53.1%and benefits

Other operating 262,836 18.6% 221,496 17.9% 508,209 18.8% 463,862 18.4%expenses

Supplies expense 49,352 3.5% 50,394 4.1% 100,098 3.7% 101,955 4.0%

Depreciation and 45,826 3.3% 43,243 3.5% 91,128 3.4% 85,958 3.4%amortization

Lease and rental 9,754 0.7% 10,436 0.8% 21,028 0.8% 21,456 0.9%expense

Subtotal-operating 1,078,007 76.5% 973,693 78.5% 2,132,269 78.9% 2,011,730 79.8%expenses

Income from 331,549 23.5% 266,266 21.5% 569,329 21.1% 509,281 20.2%operations

Interest expense, 340 0.0% 361 0.0% 678 0.0% 725 0.0%net

Other (income) (5) (0.0)% 922 0.1% 408 0.0% 1,811 0.1%expense, net

Income before $331,214 23.5% $264,983 21.4% $568,243 21.0% $506,745 20.1%income taxes

All BehavioralHealth CareServices

Three months ended Three months ended Six months ended Six months ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Amount % of Net Amount % of Net Amount % of Net Amount % of Net Revenues Revenues Revenues Revenues

Net revenues (a) $1,431,497 100.0% $1,259,123 100.0% $2,746,834 100.0% $2,565,232 100.0%

Operating charges:

Salaries, wages 713,623 49.9% 649,376 51.6% 1,417,598 51.6% 1,342,648 52.3%and benefits

Other operating 285,689 20.0% 245,045 19.5% 554,986 20.2% 511,227 19.9%expenses

Supplies expense 49,552 3.5% 50,363 4.0% 100,561 3.7% 102,002 4.0%

Depreciation and 47,183 3.3% 45,038 3.6% 93,665 3.4% 88,927 3.5%amortization

Lease and rental 9,685 0.7% 11,259 0.9% 21,368 0.8% 23,417 0.9%expense

Subtotal-operating 1,105,732 77.2% 1,001,081 79.5% 2,188,178 79.7% 2,068,221 80.6%expenses

Income from 325,765 22.8% 258,042 20.5% 558,656 20.3% 497,011 19.4%operations

Interest expense, 1,193 0.1% 354 0.0% 2,346 0.1% 751 0.0%net

Other (income) (5) (0.0)% 922 0.1% 408 0.0% 1,811 0.1%expense, net

Income before $324,577 22.7% $256,766 20.4% $555,902 20.2% $494,449 19.3%income taxes

(a) Includes $61 million of CARES Act and other grant revenues in each of thethree and six-months periods ended June 30, 2020.

We believe that providing our results on a "Same Facility" basis (which is anon-GAAP measure), which includes the operating results for facilities andbusinesses operated in both the current year and prior year periods, is helpfulto our investors as a measure of our operating performance. Our Same Facilityresults also neutralize (if applicable), the effect of material items that arenonrecurring or non-operational in nature including items such as, but notlimited to, reserves for various matters, settlements, legal judgments,lawsuits and reserves established in connection with the government'sinvestigation of our behavioral health care facilities, cost related toextinguishment of debt, gains/losses on sales of assets and businesses,impairments of long-lived and intangible assets and other amounts that may bereflected in the current or prior year financial statements that relate toprior periods. Our Same Facility basis results exclude from net revenues andother operating expenses, provider tax assessments incurred in each period.However, these provider tax assessments are included in net revenues and otheroperating expenses as reflected in the table under All Behavioral Health CareServices. The provider tax assessments had no impact on the income beforeincome taxes as reflected on the above tables since the amounts offset betweennet revenues and other operating expenses. To obtain a complete understandingof our financial performance, the Same Facility results should be examined inconnection with our net income as determined in accordance with GAAP and aspresented herein and in the condensed consolidated financial statements andnotes thereto as contained in our Form 10-K for the year ended December 31,2020 and Form 10-Q for the quarter ended March 31, 2021.

The All Behavioral Health Care Servicestable summarizes the results ofoperations for all our behavioral health care facilities during the periodspresented. These amounts include: (i) our behavioral health results on a samefacility basis, as indicated above; (ii) the impact of provider tax assessmentswhich increased net revenues and other operating expenses but had no impact onincome before income taxes, and; (iii) certain other amounts including theresults of facilities acquired or opened during the last twelve months as wellas the results of certain facilities that were closed or restructured duringthe past year.

Universal Health Services, Inc.

Selected Hospital Statistics

For the Three Months ended

June 30, 2021 and 2020

AS REPORTED:

ACUTE BEHAVIORAL HEALTH

6/30/21 6/30/20 % change 6/30/21 6/30/20 % change

Hospitals owned and 26 26 0.0% 334 330 1.2%leased

Average licensed 6,511 6,451 0.9% 24,161 23,573 2.5%beds

Average available 6,339 6,279 1.0% 24,056 23,470 2.5%beds

Patient days 362,325 317,359 14.2% 1,564,902 1,464,601 6.8%

Average daily 3,981.6 3,487.4 14.2% 17,009.8 16,094.5 5.7%census

Occupancy-licensed 61.2% 54.1% 13.1% 70.4% 68.3% 3.1%beds

Occupancy-available 62.8% 55.5% 13.1% 70.7% 68.6% 3.1%beds

Admissions 76,221 64,208 18.7% 117,018 102,770 13.9%

Length of stay 4.8 4.9 -3.8% 13.4 14.3 -6.0%

Inpatient revenue $8,662,335 $6,736,777 28.6% $2,527,776 $2,285,359 10.6%

Outpatient revenue 5,357,888 3,394,680 57.8% 266,328 216,174 23.2%

Total patient 14,020,223 10,131,457 38.4% 2,794,104 2,501,533 11.7%revenue

Other revenue 167,899 269,749 -37.8% 70,929 113,717 -37.6%

Gross hospital 14,188,122 10,401,206 36.4% 2,865,033 2,615,250 9.6%revenue

Total deductions 12,433,691 8,933,700 39.2% 1,433,536 1,356,127 5.7%

Net hospital $1,754,431 $1,467,506 19.6% $1,431,497 $1,259,123 13.7%revenue

SAME FACILITY:

ACUTE BEHAVIORAL HEALTH

6/30/21 6/30/20 % change 6/30/21 6/30/20 % change

Hospitals owned and 26 26 0.0% 330 330 0.0%leased

Average licensed 6,511 6,451 0.9% 23,731 23,410 1.4%beds

Average available 6,339 6,279 1.0% 23,626 23,307 1.4%beds

Patient days 362,325 317,359 14.2% 1,553,416 1,458,430 6.5%

Average daily 3,981.6 3,487.4 14.2% 17,070.5 16,026.7 6.5%census

Occupancy-licensed 61.2% 54.1% 13.1% 71.9% 68.5% 5.1%beds

Occupancy-available 62.8% 55.5% 13.1% 72.3% 68.8% 5.1%beds

Admissions 76,221 64,208 18.7% 115,694 102,226 13.2%

Length of stay 4.8 4.9 -3.8% 13.4 14.3 -5.9%

Universal Health Services, Inc.

Selected Hospital Statistics

For the Six Months ended

June 30, 2021 and 2020

AS REPORTED:

ACUTE BEHAVIORAL HEALTH

6/30/21 6/30/20 % change 6/30/21 6/30/20 % change

Hospitals owned and 26 26 0.0% 334 330 1.2%leased

Average licensed 6,513 6,451 1.0% 24,089 23,604 2.1%beds

Average available 6,341 6,279 1.0% 23,987 23,501 2.1%beds

Patient days 754,719 687,872 9.7% 3,099,064 3,057,212 1.4%

Average daily 4,169.7 3,779.5 10.3% 17,121.9 16,797.9 1.9%census

Occupancy-licensed 64.0% 58.6% 9.3% 71.1% 71.2% -0.1%beds

Occupancy-available 65.8% 60.2% 9.2% 71.4% 71.5% -0.1%beds

Admissions 149,145 141,976 5.0% 232,426 223,787 3.9%

Length of stay 5.1 4.8 4.4% 13.3 13.7 -2.4%

Inpatient revenue $17,781,519 $14,558,249 22.1% $5,001,341 $4,810,898 4.0%

Outpatient revenue 9,938,608 8,076,421 23.1% 513,092 475,913 7.8%

Total patient 27,720,127 22,634,670 22.5% 5,514,433 5,286,811 4.3%revenue

Other revenue 311,164 386,027 -19.4% 133,137 170,107 -21.7%

Gross hospital 28,031,291 23,020,697 21.8% 5,647,570 5,456,918 3.5%revenue

Total deductions 24,582,318 20,032,142 22.7% 2,900,736 2,891,686 0.3%

Net hospital $3,448,973 $2,988,555 15.4% $2,746,834 $2,565,232 7.1%revenue

SAME FACILITY:

ACUTE BEHAVIORAL HEALTH

6/30/21 6/30/20 % change 6/30/21 6/30/20 % change

Hospitals owned and 26 26 0.0% 330 330 0.0%leased

Average licensed 6,513 6,451 1.0% 23,710 23,404 1.3%beds

Average available 6,341 6,279 1.0% 23,608 23,301 1.3%beds

Patient days 754,719 687,872 9.7% 3,079,136 3,040,874 1.3%

Average daily 4,169.7 3,779.5 10.3% 17,011.8 16,708.1 1.8%census

Occupancy-licensed 64.0% 58.6% 9.3% 71.7% 71.4% 0.5%beds

Occupancy-available 65.8% 60.2% 9.2% 72.1% 71.7% 0.5%beds

Admissions 149,145 141,976 5.0% 230,120 222,308 3.5%

Length of stay 5.1 4.8 4.4% 13.4 13.7 -2.2%

Universal Health Services, Inc.

Supplemental Non-GAAP Disclosures

Revised 2021 Operating Results Forecast

(in thousands, except per share amounts)

Revised Forecast For The Year Ended December 31, 2021

% Net % Net

Low revenues High revenues

Net revenues $12,351,000 $12,501,000

Adjusted net income $971,099 $1,030,488attributable to UHS (a)

Depreciation and 533,228 533,228amortization

Interest expense 91,615 91,615

Other (income) expense, (12,952) (12,952)net

Provision for income 300,254 318,865taxes

Adjusted EBITDA net of $1,883,244 15.2% $1,961,244 15.7%NCI (b)

Adjusted net incomeattributable to UHS, per $11.46 $12.16diluted share (a)

Shares used in computingdiluted earnings per 84,533 84,533share

(a) Adjusted net income attributable to UHS/per diluted share are non-GAAPfinancial measures. The 2021 revised forecasted amounts exclude the impactof future items, if applicable, that are nonrecurring or non-operational innature including items such as pre-tax unrealized gains/losses resultingfrom increases/decreases in the market value of shares of certain marketablesecurities held for investment and classified as available for sale, ouradoption of ASU 2016-09, and other potential material items including, butnot limited to, reserves for various matters including settlements, legaljudgments and lawsuits, potential impacts of non-ordinary courseacquisitions, divestitures, joint ventures or other strategic transactions,costs related to extinguishment of debt, gains/losses on sales of assets andbusinesses, impairment of long-lived and intangible assets, other amountsthat may be reflected in the current financial statements that relate toprior periods, and the impact of share repurchases that differ from includedassumptions. It is also subject to certain conditions including those as setforth below in General Information, Forward-Looking Statements and RiskFactors and Non-GAAP Financial Measures, including the liklihood that ourfuture operations and financial results may continue to be materiallyimpacted by developments related to COVID-19, as discussed herein.

(b) Adjusted EBITDA net of NCI is a non-GAAP financial measure. To obtain acomplete understanding of our financial performance, Adjusted EBITDA net ofNCI should be examined in connection with net income determined inaccordance with GAAP as presented in the consolidated financial statementsand notes thereto in this report or in our filings with the Securities andExchange Commission including our Report on Form 10-K for the year endedDecember 31, 2020, and our Report on Form 10-Q for the quarter ended March31, 2021.

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SOURCE Universal Health Services, Inc.