Steve Filton Chief Financial Officer

UNIVERSAL HEALTH SERVICES, INC. REPORTS

2016 SECOND QUARTER FINANCIAL RESULTS

Consolidated Results of Operations, As Reported and As Adjusted Three-month periods ended June 30, 2016 and 2015:

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

$185.6 million, or $1.89 per diluted share, during the second quarter of 2016 as compared to $182.2 million, or $1.80 per diluted share, during the comparable quarter of 2015. Net revenues increased 6.8% to $2.43 billion during the second quarter of

2016 as compared to $2.28 billion during the second quarter of 2015.

For the three-month period ended June 30, 2016, our adjusted

net income attributable to UHS per diluted share, as calculated on the attached Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ( Supplemental Schedule ), increased to $1.94 per diluted share, as compared to

$1.85 per diluted share during the second quarter of 2015. As reflected on the Supplemental Schedule, included in our reported results during each of the second quarters of 2016 and 2015, are net unfavorable after-tax impacts of $.05 per diluted

share 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.

Consolidated Results of Operations, As Reported and As Adjusted Six-month periods ended June 30, 2016 and 2015:

Reported net income attributable to UHS was $376.3 million, or $3.81 per diluted share, during the first six months of 2016 as compared to

$356.5 million, or $3.54 per diluted share, during the comparable period of 2015. Net revenues increased 8.4% to $4.88 billion during the first six months of 2016 as compared to $4.50 billion during the comparable period of 2015.

For the six-month period ended June 30, 2016, our adjusted net income attributable to UHS per diluted share, as calculated on the

Supplemental Schedule, increased to $3.92 per diluted share, as compared to $3.63 per diluted share during the comparable period of 2015. As reflected on the Supplemental Schedule, included in our reported results during the six-month periods ended

June 30, 2016 and 2015, are net unfavorable after-tax impacts of $.11 per diluted share and $.09 per diluted share, respectively, related to the incentive income and depreciation and amortization expense recorded in connection with the

implementation of EHR applications at our acute care hospitals.

Acute Care Services Three and six-month periods ended June 30, 2016 and

During the second quarter of 2016, at our acute care hospitals owned during both periods ( same facility basis ),

adjusted admissions (adjusted for outpatient activity) increased 3.9% and adjusted patient days increased 2.8%, as compared to the second quarter of 2015. Net revenues from our acute care services increased 7.4% during the second quarter of 2016 as

compared to the second quarter of the prior year. At these facilities, net revenue per adjusted admission increased 1.3% while net revenue per adjusted patient day increased 2.4% during the second quarter of 2016 as compared to the comparable

quarter of 2015. On a same facility basis, the operating margin generated from our acute care services was 17.7% during the second quarter of 2016 as compared to 19.1% during the second quarter of 2015. We define operating margin as net revenues

less salaries, wages and benefits, other operating expenses and supplies expense, divided by net revenues (excluding the impact of EHR and other items, if applicable, as indicated on the Supplemental Schedules).

During the first six months of 2016, at our acute care hospitals on a same facility basis,

adjusted admissions increased 5.8% and adjusted patient days increased 3.1%, as compared to the first six months of 2015. Net revenues from our acute care services increased 9.7% during the first six months of 2016 as compared to the comparable

period of the prior year. At these facilities, net revenue per adjusted admission increased 2.2% while net revenue per adjusted patient day increased 4.8% during the first six months of 2016 as compared to the comparable period of 2015. On a same

facility basis, the operating margin generated from our acute care services was 19.4% during the first six months of 2016 as compared to 19.8% during the comparable period of 2015.

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 $339 million and $263 million during the three-month periods ended June 30, 2016 and 2015, respectively, and approximately $684 million and $550 million during the six-month periods ended

June 30, 2016 and 2015, respectively. The provision for doubtful accounts at our acute care hospitals amounted to approximately $179 million and $149 million during the three-month periods ended June 30, 2016 and 2015, respectively, and

approximately $319 million and $274 million during the six-month periods ended June 30, 2016 and 2015, 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 three and six-month period ended June 30, 2016, as compared to the comparable periods of 2015.

Behavioral Health Care Services Three and six-month periods ended June 30, 2016 and 2015:

During the second quarter of 2016, at our behavioral health care facilities on a same facility basis, adjusted admissions decreased 0.3% while

adjusted patient days increased 0.2% as compared to the second quarter of 2015. At these facilities, net revenue per adjusted admission increased 2.4% while net revenue per adjusted patient day increased 1.9% during the second quarter of 2016 as

compared to the comparable quarter in 2015. On a same facility basis, our behavioral health services net revenues increased 2.0% during the second quarter of 2016, as compared to the second quarter of 2015, and the operating margins were 28.1%

and 28.7% during the second quarters of 2016 and 2015, respectively.

During the first six months of 2016, at our behavioral health care

facilities on a same facility basis, adjusted admissions increased 0.5% while adjusted patient days increased 0.7% as compared to the comparable period of 2015. At these facilities, net revenue per adjusted admission increased 2.1% while net revenue

per adjusted patient day increased 1.9% during the first six months of 2016 as compared to the comparable period in 2015. On a same facility basis, our behavioral health services net revenues increased 2.7% during the first six months of 2016,

as compared to the comparable period of 2015, and the operating margins were 28.0% and 28.6% during the first six months of 2016 and 2015, respectively.

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 second quarter of 2016, we repurchased 235,352 shares at an

aggregate cost of $29.1 million (approximately $123 per share). During the first six months of 2016, we repurchased approximately 1.6 million shares at an aggregate cost of $181.5 million (approximately $115 per share). Since inception of the

program through June 30, 2016, we repurchased approximately 3.5 million shares at an aggregate cost of approximately $405.7 million (approximately $117 per share).

Conference call information:

will hold a conference call for investors and analysts at 9:00 a.m. eastern time on July 27, 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 and in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarterly period ended March 31, 2016), 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 related to the implementation of EHR applications at our acute care hospitals and other items that are nonrecurring or non-operational in nature including, 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 and our Report on Form 10-Q for the

quarterly period ended March 31, 2016. 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.

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.

Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

Universal Health Services, Inc.

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

For the three months ended June 30, 2016 and 2015

(in thousands, except per share amounts)

Calculation of Adjusted Net Income Attributable to UHS

Universal Health Services, Inc.

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

For the six months ended June 30, 2016 and 2015

(in thousands, except per share amounts)