Steve Filton Chief Financial Officer

UNIVERSAL HEALTH SERVICES, INC.

REPORTS 2016 FOURTH QUARTER AND FULL YEAR EARNINGS

Consolidated Results of Operations, As Reported and As Adjusted Three-month periods ended December 31, 2016 and 2015:

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

$174.2 million, or $1.78 per diluted share, during the fourth quarter of 2016 as compared to $173.7 million, or $1.74 per diluted share, during the comparable quarter of 2015. Net revenues increased 6.9% to $2.48 billion during the fourth quarter of

2016 as compared to $2.32 billion during the fourth quarter of 2015.

For the three-month period ended December 31, 2016, 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 to $176.0 million, or $1.80 per diluted share, as

compared to $170.7 million, or $1.71 per diluted share, during the fourth quarter of 2015. As reflected on the Supplemental Schedule, included in our reported results during the fourth quarter of 2016, is a net unfavorable after-tax impact of $1.8

million, or $.02 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.

Included in our reported results during the fourth quarter of 2015, is a net favorable after-tax impact of $3.1 million, or $.03 per diluted share, related the implementation of EHR applications.

Consolidated Results of Operations, As Reported and As Adjusted Twelve-month periods ended December 31, 2016 and 2015:

Reported net income attributable to UHS was $702.4 million, or $7.14 per diluted share, during the twelve months ended December 31, 2016

as compared to $680.5 million, or $6.76 per diluted share, during the 2015 full year. Net revenues increased 8.0% to $9.77 billion during the full year of 2016 as compared to $9.04 billion during the 2015 full year.

For the twelve-month period ended December 31, 2016, our adjusted net income attributable to UHS, as calculated on the Supplemental

Schedule, increased to $720.2 million, or $7.32 per diluted share, as compared to $692.0 million, or $6.87 per diluted share, during the 2015 full year. As reflected on the Supplemental Schedule, included in our reported results are net unfavorable

after-tax impacts of $17.8 million, or $.18 per diluted share, during the full year of 2016 and $11.5 million, or $.11 per diluted share, during the full year of 2015, 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 twelve-month periods ended December 31, 2016 and 2015:

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

adjusted admissions (adjusted for outpatient activity) increased 4.7% and adjusted patient days increased 3.2%, as compared to the fourth quarter of 2015. Net revenues from our acute care services increased 9.3% during the fourth quarter of 2016 as

compared to the fourth quarter of the prior year. At these facilities, net revenue per adjusted admission increased 2.6% while net revenue per adjusted patient day increased 4.2% during the fourth 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 16.5% during the fourth quarter of 2016 as compared to 17.2% during the fourth 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).

During the twelve months ended December 31, 2016, at our acute care hospitals on a same facility basis, adjusted admissions increased

5.2% and adjusted patient days increased 3.3%, as compared to the 2015 full year. Net revenues from our acute care services increased 9.4% during the twelve months ended December 31, 2016 as compared to the 2015 full year. At these facilities,

net revenue per adjusted admission increased 2.5% while net revenue per adjusted patient day increased 4.5% during the 2016 full year as compared to 2015. On a same facility basis, the operating margin generated from our acute care services was

17.5% during the full year of 2016 as compared to 18.1% during the 2015 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 $399 million and $332 million during the three-month periods ended December 31, 2016 and 2015, respectively, and

approximately $1.45 billion and $1.20 billion during the twelve-month periods ended December 31, 2016 and 2015, respectively. The provision for doubtful accounts at our acute care hospitals amounted to approximately $136 million and $172

million during the three-month periods ended December 31, 2016 and 2015, respectively, and approximately $628 million and $631 million during the twelve-month periods ended December 31, 2016 and 2015, respectively.

Behavioral Health Care Services Three and twelve-month periods ended December 31, 2016 and 2015:

During the fourth quarter of 2016, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 2.1% while

adjusted patient days increased 1.4% as compared to the fourth quarter of 2015. At these facilities, net revenue per adjusted admission decreased 0.1% while net revenue per adjusted patient day increased 0.5% during the fourth quarter of 2016 as

compared to the comparable quarter in 2015. On a same facility basis, our behavioral health care services net revenues increased 2.2% during the fourth quarter of 2016, as compared to the fourth quarter of 2015, and the operating margins were

26.0% and 26.8% during the fourth quarters of 2016 and 2015, respectively.

During the twelve months ended December 31, 2016, at our

behavioral health care facilities on a same facility basis, adjusted admissions increased 1.0% while adjusted patient days increased 0.9% as compared to the 2015 full year. At these facilities, net revenue per adjusted admission increased 1.4% while

net revenue per adjusted patient day increased 1.5% during the full year of 2016 as compared to 2015. On a same facility basis, our behavioral health care services net revenues increased 2.6% during the twelve months ended December 31,

2016, as compared to the 2015 full year, and the operating margins were 27.0% and 27.8% during the full years of 2016 and 2015, respectively.

2017 Full Year Guidance Range:

Reflected below is our 2017 guidance range for consolidated net revenues, adjusted earnings before interest, taxes, depreciation &

amortization ( EBITDA ), adjusted earnings per diluted share ( EPS-diluted ) and capital expenditures. EBITDA, adjusted EBITDA and adjusted EPS-diluted 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, 2016. Please see the Supplemental Non-GAAP Disclosures 2017 Operating Results Forecast schedule as included herein for additional information and a reconciliation to the financial forecasts as computed in accordance

Our 2017 guidance contains a number of assumptions, including, but not limited to:

Effective January 1, 2017, we adopted ASU 2016-09, Compensation Stock

Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which amends the accounting for employee share-based payment transactions to require recognition of the tax effects resulting from the settlement of stock-based

awards as income tax expense or benefit in the income statement in the reporting period in which they occur. Since the impact of ASU 2016-09 on our future financial statements is dependent upon the timing of stock option exercises, and the market

price of our stock at the time of exercise, we are unable to estimate the impact this adoption will have on our 2017 provision for income taxes and net income attributable to UHS. This reporting change is applied prospectively and prior period

amounts will not be restated.

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 2016, we have repurchased

475,000 shares at an aggregate cost of $51.8 million (approximately $109 per share). During the twelve months ended December 31, 2016, we have repurchased approximately 2.5 million shares at an aggregate cost of $289.9 million

(approximately $115 per share). Since inception of the program through December 31, 2016, we have repurchased approximately 4.39 million shares at an aggregate cost of approximately $514.1 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 March 1, 2017. 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, 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, EBITDA and adjusted 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/losses

on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits, impairments of long-lived assets, the impact on our provision for income taxes and net income attributable to UHS resulting from our adoption of ASU 2016-09,

and other material 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, 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.

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 December 31, 2016 and 2015

(in thousands, except per share amounts)