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Universal Health Services, Inc.Celia Slayden Roe

Universal Health Services, Inc.

• Behavioral health facilities, acute care hospitals, ambulatory centers

• United States, United Kingdom, Puerto Rico, US Virgin Islands

• Founded by Alan B. Miller in 1978

• More than 68,000 employees

Measures of Success for Investors

• Operating Income

• Operating Margin

• Adjusted Net Income Attributable to UHS

• Adjusted Net Income Attributable to UHS per Diluted Share

• Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

Consolidated Results of Operations

2016(2nd Quarter)

2015(2nd Quarter)

Operating income: $333.3 million $335.4 million

Operating margin: 13.7% 14.7%

EBITDA $424.8 million $413.4 million

Adjusted net income attributable to UHS:

$191.1 million $186.6 million

Adjusted net income attributable to UHS per diluted share:

$1.94 $1.85

Why Those Measures?

• Measures of Operating Performance

• Neutralizes Effects of:

Implementation of EHR applications

Costs related to extinguishment of debt

Gains on sales of assets and businesses

Reserves for settlements, legal judgements, and lawsuits

Impairments of long-lived assets

Healthcare-Specific Measurements:

• Adjusted Admissions

• Adjusted Patient Days

Adjusted Admissions Formula:

• Hospital Admissions x (Gross Inpatient Revenue/Gross Patient Revenue)

Adjusted Patient Days Formula:

• Hospital Patient Days x (Gross Patient Revenue/Gross Inpatient Revenue)

Healthcare-Specific Measurements, Continued

Acute Care Facilities Behavioral Health Facilities

Adjusted Admissions ↑ 3.9% ↓ 0.3%

Adjusted Patient Days ↑ 2.8% ↑ 0.2%

UHS And Its Competitors

Stock Price NI Attributable Diluted EPS

Universal Health Services, Inc.

$126.37 $185.6 million↑ $3.4 million

$1.94

HCA Holdings, Inc. $76.64 $658 million↑ $151 million

$1.65

Tenet Healthcare Corporation

$25.50 ($46 million)↑ $15 million

($0.46)

Community Health Systems, Inc.

$10.95 ($1.4 billion)↓ $32.2 million

($12.91)

UHS And Its Competitors, Continued

Adjusted Admissions

Universal Health Services, Inc. ↑ 3.9%

HCA Holdings, Inc. ↑ 1.6%

Tenet Healthcare Corporation ↓ 1.8%

Community Health Systems, Inc. ↓ 8.5%

Looking Forward

• “The healthcare industry remains a place of rapid change and uncertainty. But with the strength, experience, and foresight to chart its own course, UHS has every reason to face the future with optimism.”

(www.uhsinc.com)