Steve Filton Chief Financial Officer

UNIVERSAL HEALTH SERVICES, INC. REPORTS 2013 FOURTH QUARTER AND FULL YEAR EARNINGS AND 2014 EARNINGS

Consolidated Results of Operations, As Reported Three and twelve-month periods ended December 31, 2013 and 2012:

KING OF PRUSSIA, PA Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable

to UHS was $124.5 million, or $1.24 per diluted share, during the fourth quarter of 2013 as compared to $135.5 million, or $1.39 per diluted share, during the comparable quarter of 2012. Net revenues increased 2.0% to $1.80 billion during the fourth

quarter of 2013 as compared to $1.76 billion during the fourth quarter of 2012.

Reported net income attributable to UHS was $510.7

million, or $5.14 per diluted share, during the year ended December 31, 2013 as compared to $443.4 million, or $4.53 per diluted share, during the 2012 full year period. Net revenues increased 4.6% to $7.28 billion during the twelve-month

period of 2013 as compared to $6.96 billion during the comparable 2012 twelve-month period.

Consolidated Results of Operations, As Adjusted

Three-month periods ended December 31, 2013 and 2012:

For the three-month period ended December 31, 2013, our adjusted

net income attributable to UHS, as calculated on the attached Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ( Supplemental Schedule ), was $103.6 million, or $1.03 per diluted share, as compared to $98.0

million, or $1.00 per diluted share, during the fourth quarter of 2012.

As reflected on the Supplemental Schedule, included in our

reported results during the fourth quarter of 2013 was an aggregate net favorable after-tax impact of approximately $20.9 million, or $.21 per diluted share, consisting of: (i) a favorable after-tax impact of $9.2 million, or $.09 per diluted

share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2013, based upon a reserve analysis, and; (ii) a net favorable after-tax impact of approximately $11.8 million, or

$.12 per diluted share, related to the incentive income ($33.1 million) and expenses ($14.2 million excluding income taxes) recorded in connection with the implementation of electronic health records ( EHR ) applications at our acute care

hospitals (as discussed below in Accounting for HITECH Act incentive income and EHR expenses).

As reflected on the Supplemental

Schedule, included in our reported results during the fourth quarter of 2012, was an aggregate net favorable after-tax impact of $37.4 million, or $.39 per diluted share, consisting of: (i) a favorable after-tax impact of approximately $15.5

million, or $.16 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating

to years prior to 2012, based upon a reserve analysis; (ii) a favorable after-tax impact of approximately $16.4 million, or $.17 per diluted share, resulting from the gain realized on the

sale of Auburn Regional Medical Center which was divested in October, 2012, and; (iii) a net favorable after-tax impact of approximately $5.5 million, or $.06 per diluted share, related to the incentive income ($17.5 million) and expenses ($8.7

million excluding income taxes) recorded in connection with the implementation of EHR applications at our acute care hospitals.

Results of Operations, As Adjusted Twelve-month periods ended December 31, 2013 and 2012:

For the twelve-month period

ended December 31, 2013, our adjusted net income attributable to UHS, as calculated on the attached Supplemental Schedule, was $452.1 million, or $4.55 per diluted share, as compared to $406.4 million, or $4.15 per diluted share, during the

twelve-month period of 2012.

As reflected on the Supplemental Schedule, included in our reported results during the full year of 2013 was

an aggregate net favorable after-tax impact of approximately $58.6 million, or $.59 per diluted share, consisting of: (i) a favorable after-tax impact of $47.0 million, or $.47 per diluted share, resulting from a reduction to our professional

and general liability self-insurance reserves relating to years prior to 2013, based upon reserve analyses, and; (ii) a net favorable after-tax impact of approximately $11.6 million, or $.12 per diluted share, related to the incentive income

($61.0 million) and expenses ($42.4 million excluding income taxes) recorded in connection with the implementation of EHR applications at our acute care hospitals.

Included in our reported results during the year ended December 31, 2012 was a net favorable after-tax impact of approximately $1.9

million, or $.02 per diluted share, recorded in connection with the implementation of EHR applications, as well as a net aggregate favorable after-tax impact of $35.2 million, or $.36 per diluted share, consisting of the following: (i) a

favorable after-tax impact of approximately $15.5 million resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2012, based upon a reserve analysis; (ii) a favorable after-tax

impact of approximately $16.4 million resulting from the gain realized on the sale of Auburn Regional Medical Center which was divested in October, 2012; (iii) an after-tax charge of $18.1 million resulting from the write-off of deferred

financing costs related to the portion of our Term Loan B credit facility that was extinguished during the third quarter of 2012; (iv) a favorable after-tax impact of $18.8 million resulting from an industry-wide settlement with the United

States Department of Health and Human Services, the Secretary of Health and Human Services, and the Centers for Medicare and Medicaid Services, related to underpayments of Medicare inpatient prospective payments during a number of years prior to

2012; (v) a favorable after-tax impact of $4.3 million representing the 2011 portion of the net Medicaid supplemental reimbursements recorded pursuant to the Oklahoma Supplemental Hospital Offset Payment Program; (vi) an aggregate

unfavorable after-tax impact of $5.1 million resulting from the revised Supplemental Security Income ratios utilized for calculating Medicare disproportionate share hospital reimbursements for federal fiscal years 2006 through 2009 ($2.4 million

unfavorable after-tax impact), and the write-off of receivables related to revenues recorded during 2011 at two of our acute care hospitals located in Florida resulting from reductions in certain county reimbursements due to reductions in federal

matching Inter-Governmental Transfer funds ($2.7 million unfavorable after-tax impact), and; (vii) a net favorable after-tax impact of $3.4 million consisting primarily of the 2011 portion of net Medicaid supplemental revenues recorded during

the second quarter of 2012.

Acute Care Services Three and twelve-month periods ended December 31, 2013 and 2012:

During the fourth quarter of 2013, at our acute care hospitals owned during both periods ( same facility basis ),

adjusted admissions (adjusted for outpatient activity) were unchanged and adjusted patient days increased 3.6%, as compared to the fourth quarter of 2012. Net revenues at these facilities increased 1.1% during the fourth quarter of 2013 as compared

to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission increased 2.1% while net revenue per adjusted patient day decreased 1.5% during the fourth quarter of 2013 as compared to the comparable quarter of

the prior year. On a same facility basis, the operating margin at our acute care hospitals was 14.1% during the fourth quarter of 2013 as compared to 14.4% during the fourth quarter of 2012. We define operating margin as net revenues less salaries,

wages and benefits, other operating expenses and supplies expense (excluding the impact of the items mentioned above and excluding the EHR impact, as indicated on the Supplemental Schedule).

During the year ended December 31, 2013, at our acute care hospitals on a same facility basis, adjusted admissions increased 1.0% and

adjusted patient days increased 2.2%, as compared to the year ended December 31, 2012. Net revenues at these facilities increased 3.8% during the full year of 2013 as compared to 2012. At these facilities, net revenue per adjusted admission

increased 2.7% while net revenue per adjusted patient day increased 1.5% during the full year of 2013, as compared to 2012. The operating margin at our acute care hospitals owned during both years decreased to 14.8% during 2013, as compared to 15.8%

We provide care to patients who meet certain financial or economic criteria without charge or at amounts substantially less

than our established rates. Because we do not pursue collection of amounts determined to qualify as charity care, they are not reported in net revenues or in accounts receivable, net. Our acute care hospitals provided charity care and uninsured

discounts, based on charges at established rates, amounting to approximately $234 million and $206 million during the three-month periods ended December 31, 2013 and 2012, respectively, and approximately $999 million and $1.05 billion during

the years ended December 31, 2013 and 2012, respectively. In addition, the provision for doubtful accounts at our acute care hospitals increased to approximately $291 million during the fourth quarter of 2013 as compared to approximately $179

million during the fourth quarter of 2012 and increased to approximately $1.02 billion during the full year of 2013 as compared to approximately $635 million during the year ended December 31, 2012.

Behavioral Health Care Services Three and twelve-month periods ended December 31, 2013 and 2012:

During the fourth quarter of 2013, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 2.4% while

adjusted patient days increased 0.8%, as compared to the fourth quarter of 2012. Net revenues at these facilities increased 4.0% during the fourth quarter of 2013, as compared to the comparable quarter in 2012. At these facilities, net revenue per

adjusted admission increased 1.5% while net revenue per adjusted patient day increased 3.2% during the fourth quarter of 2013 over the comparable quarter in 2012. The operating margin at our behavioral health care facilities owned during both

periods was 27.9% during the fourth quarter of 2013, as compared to 27.8% during the fourth quarter of 2012.

During the year ended December 31, 2013, at our behavioral health care facilities on a same

facility basis, adjusted admissions increased 3.5% while adjusted patient days increased 1.0%, as compared to the full year of 2012. Net revenues at these facilities increased 3.2% during the twelve-months of 2013, as compared to the comparable

twelve-month period of 2012. At these facilities, net revenue per adjusted admission decreased 0.3% while net revenue per adjusted patient day increased 2.2% during the full year of 2013 over 2012. The operating margin at our behavioral health care

facilities owned during both years increased to 28.1% during 2013 as compared to 27.8% during 2012.

Accounting for HITECH Act incentive income and

The health information technology provisions of the American Recovery and Reinvestment Act (referred to as the

HITECH Act ) established criteria related to the meaningful use of electronic health records ( EHR ) for acute care hospitals and established requirements for the Medicare and Medicaid EHR payment incentive programs.

During 2011, we began implementing EHR applications at certain of our acute care hospitals and continued to do so, on a

hospital-by-hospital basis, until completion which occurred at the end of June, 2013. 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. With the exception of the newly constructed and recently opened Temecula Valley

Hospital (as discussed below), we believe that all of our acute care hospitals have met the stage 1, year one meaningful use criteria.

reflected on the Supplemental Schedule, in connection with the implementation of EHR applications, our consolidated results of operations include the net favorable after-tax impact of $11.8 million ($18.9 million pre-tax), or $.12 per diluted share,

during the fourth quarter of 2013 and $5.5 million ($8.9 million pre-tax), or $.06 per diluted share, during the fourth quarter of 2012.

In connection with the implementation of EHR applications, our consolidated results of operations include the net favorable after-tax impact

of $11.6 million ($18.7 million pre-tax), or $.12 per diluted share, during the year ended December 31, 2013 and $1.9 million ($3.0 million pre-tax), or $.02 per diluted share, during the prior year.

During 2014, based upon our anticipated meaningful use qualifications, we expect to record approximately $27 million of EHR

incentive income and approximately $37 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 $5 million, or $.05 per

2014 Full Year Guidance:

Our estimated range of net income attributable to UHS for the year ended December 31, 2014, is $4.80 to $5.10 per diluted share. This

guidance range represents an increase of approximately 6% to 12% over the adjusted net income attributable to UHS of $4.55 per diluted share for the year ended December 31, 2013, as calculated on the attached supplemental schedule. This range

includes an estimated increase of approximately 3% to 7% (or approximately $0.15 to $0.30 per diluted share) related to the Patient Protection and Affordable Care Act. The range excludes the above-mentioned unfavorable EHR impact of $.05 per diluted

During 2014, our net revenues are estimated to be approximately $7.89 billion to $7.94 billion

representing an increase of approximately 8% to 9% over our 2013 net revenues.

This guidance range excludes the impact of 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, reserves for settlements, legal judgments and lawsuits 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

Opening of the newly constructed Temecula Valley Hospital:

In October, 2013, we opened the newly constructed Temecula Valley Hospital, an acute care facility located in Temecula, California. With 140

private patient rooms, Temecula Valley Hospital offers emergency care, advanced cardiac and stroke care, orthopedics and general medical care, along with surgical specialties. The new hospital is our fourth located in Riverside County, which is one

of the fastest-growing counties in the United States.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on February 28, 2014. The dial-in number is

A live broadcast of the conference call will be available on our website at www.uhsinc.com. A replay of the call

will follow shortly after 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