universal helath services 2003Front

25 YEARS
ANNUAL REPORT 2003

UNIVERSAL HEALTH SERVICES, INC.

Corporate Profile

Universal Health Services, Inc.

is one of the largest and most

experienced hospital management

companies in the nation. We have

focused our efforts on managing

acute care hospitals, behavioral health

hospitals, and ambulatory surgery and

radiation oncology centers.

We believe hospitals will remain

the focal point of the healthcare delivery

system. We have built our success by

remaining committed to a program

of rational growth around our core

businesses and seeking opportunities

complementary to them. The future

of our industry remains bright for

those whose focus is providing quality

healthcare on a cost-effective basis.

Index

Financial Highlights..................................................... 1

Shareholders Letter....................................................... 2-3

25 Years of Growing Communities ............................ 4-16

Financial Results - 10K................................................ 0-79

Directory of Hospitals................................................. 80-81

Board of Directors....................................................... 82

The UHS 25 Year Timeline.......................................... 83-89

Officers/Corporate Information.................................. 90

Financial Highlights

PERCENTAGE
2003 2002 2001
YEAR ENDED DECEMBER 31 INCREASE

NET REVENUES $ 3,643,566,000 $ 3,258,898,000 12% $ 2,840,491,000
NET INCOME $ 199,269,000 $ 175,361,000 14% $ 99,742,000
EARNINGS PER SHARE * (DILUTED) $ 3.20 $ 2.74 17% $ 1.60

PATIENT DAYS 2,724,942 2,564,022 6% 2,253,611
ADMISSIONS 436,259 414,390 5% 355,117
AVERAGE NUMBER OF LICENSED BEDS 11,131 10,648 5% 9,966

* The earnings per share have been adjusted to reflect the two-for-one stock split declared in the form of a 100% stock dividend which
was paid in June 2001.

Net Revenues Earnings Per Share
Admissions
(in millions) (diluted)
(in thousands)

$3,644 $3.20
436

$3,259
414
$2.74

$2,840
355

$2,242
265
$2,042
242
$1.60
$1.50

$1.22

$0
0 $0
99 00 01 02 03 99 00 01 02 03
99 00 01 02 03

TO OUR SHAREHOLDERS UNIVERSAL

UHS is proud to have completed Medical Center that added 176 beds in total in that country to 1,588 beds.
25 years of growth and innovation. the fast growing southeast quadrant of In addition, major construction
We are now one of the nation’s largest the city. And we announced plans to projects were completed at a number
and most respected companies with develop a fifth facility in the Northern of our facilities including a 90 bed
$3.6 billion in revenues and over 100 Centennial Hills area. addition to Northwest Texas Hospital,
facilities nationwide, and in Puerto We are also pleased that President a 56 bed patient tower at Auburn
Rico and France. Bush chose Spring Valley Hospital to Regional Medical Center and an
This past year was a fine one for announce the passage of historic expansion and renovation at
our company. Net revenues for 2003 Medicare legislation, which included Wellington Regional Medical Center.
were $3.64 billion a 12% increase the first prescription drug benefit Construction was begun at Lakewood
from 2002. Net income was $199.3 program for our senior citizens. Ranch, a new hospital development
million or $3.20 per diluted share. We have also made a number of southeast of our Manatee Memorial
Net income increased for the strategic acquisitions this past year. Hospital, scheduled to open late in 2004.
eleventh consecutive year. At year-end UHS acquired Corona Regional
2003 shareholders equity increased Medical Center, 228 beds, as part of a Our management strength –
19% to $1.09 billion. Our return on three-hospital group. Corona will UHS’s people
equity was 20.0%, which, once again, complement our other two facilities In addition to the strong financial
was among the highest in the entire in southern California. underpinnings of the company, which
industry. The Wall Street Journal To further strengthen our market has facilitated this growth, we have
shareholder scoreboard ranks the position in New Orleans, Louisiana, made appropriate operating manage-
performance of 1,000 major U.S. we acquired a 90% ownership interest ment promotions and realignments.
companies based on total returns to in the 306-bed Methodist Hospital In the Acute Care Hospital Division
shareholders. UHS was once again and we purchased the 156-bed four groups were created: an Eastern
the leader among hospital manage- Lakeland Medical Center. The combined Region group led by Marc Miller;
ment companies. net revenues from these five acquisitions a Louisiana Group led by Larry
We plan to continue our growth will be approximately $360 million Graham; a North Central group led
by adding to our portfolio of quality in 2004. by Moody Chisholm; and the South
health care facilities through strategic In the Behavioral Health area, Texas Group directed by Dan McLean.
acquisitions in key geographic where we have the leading group in The Western Region, reporting to Vice
markets and the development of the nation, we added the North Star President, Mike Marquez, will create
new hospitals. Hospital, North Star Children’s Hospital an additional group shortly.
and two outpatient counseling centers Our ability to make this reorgani-
Continued Expansion in Anchorage, Alaska. zation all with talent from within the
In Las Vegas we opened our fourth Médi-Partenaires, our hospital company speaks to the breadth and
facility, the Spring Valley Hospital company in France, added five out- depth of UHS’s management.
standing facilities during 2003 and In the Corporate staff Steve Filton
early 2004 with 481 beds bringing our was appointed Senior Vice President
and Chief Financial Officer, Charles

2

25 YEARS

Through their support we have built
Boyle was named Controller and These elected officials place
a corporation, whose position in the
Cheryl Ramagano was promoted to political contributions ahead of
communities we serve around the
Treasurer. All three have long tenure their responsibility to constituents.
with the company. John Paul Christen It is indisputable that in states nation and in the capital market, is
was promoted to the newly created that placed caps on non-economic something we can all be proud of.
position of Assistant Vice President, damages, excessive awards have
Most of all, thanks to my fellow
Hospital Finance. Jay Hornung was moderated and insurance premiums
named the new head of Design and have been kept at manageable levels. UHS employees for the vital role you
Construction, and Craig Conti was It’s up to each state to enact this legis- have fulfilled in our successful first
appointed Director of Development. lation, as it has proven impossible to quarter century, and I look forward to
date to have the U.S. Senate follow the sharing a bright future with you.
A Dynamic and Challenging Industry lead of the U.S. House of Representatives
The hospital management which passed cap-legislation and acted
industry remains both dynamic on this issue.
and challenging. Recent national
legislation provided for solid 25 Years: An Exceptional Milestone
reimbursement for hospitals yet Universal Health Services is privi-
the recovering economy has yet leged to commemorate 25 successful
to produce the number of jobs years in business and to be one of the
anticipated. Admissions to hospitals leaders in our industry over this peri-
have lessened as a result and the od. We have helped to transform one
number of uninsured Americans, of America’s most important indus-
now estimated at 44 million, tries and produced a financial record
continues to grow – as does bad second to none in our field. UHS
debts for providers. ranks with the best in industry overall.
We have seen increases in medical Our company has consistently
malpractice expense, which is not provided high quality care in a man-
only an economic burden but has ner that has kept our reputation for
made it difficult for physicians in ethics unblemished. This is a tribute
certain specialties to continue to to our talented and dedicated employ-
practice. Recent medical school ees who are responsible for bringing
Alan B. Miller
graduates in obstectrics, orthopedics our corporate mission to life.
Chairman of the Board
and neurosurgery are reluctant to We appreciate the many physicians President and Chief Executive Officer
locate in states that have excessively who partner with us to serve our
high malpractice insurance premiums. communities with dedication and
This comes about as a result of many expertise and we thank our local gov-
legislators unwilling to restrain trial ernment officials, vendors, bankers,
lawyers’ potential jackpot paydays. hospital boards and volunteers.

3

Entering Las Vegas:

An Uncommon Opportunity

In 1979, the highway leading

north out of Las Vegas ended

just a few miles from the famous

Strip. Beyond it was a vast, largely

uninhabited desert.

In the city itself, a stagnant U.S.

economy had dampened tourism,

and many of the legendary casino hotels

UNIVERSAL

4

From its frontier-town origins,
were in serious need of renovation. of Las Vegas, he saw an uncommon
Las Vegas has become
But a closer look at long-term opportunity for his young company to
America’s fastest-growing
trends told a different story. The take part in the community’s growth.
major city, with a glittering
population of Clark County, which Nearly a quarter of a century skyline and 24/7 activity.

On the left is Las Vegas in
includes greater Las Vegas, was later, that opportunity continues

1978, and on the right, the
approaching half a million residents – to represent the epitome of the
same location present day.
up dramatically from 273,000 at the UHS strategy.

start of the decade.

So when Alan Miller visited Valley

Hospital Medical Center in the center

25 YEARS

O. EDWIN FRENCH
PRESIDENT OF THE
ACUTE CARE DIVISION
5

UNIVERSAL

Helping to Change an Industry population growth was higher than Las Vegas the fastest-growing major

One year earlier, in 1978, Miller the national average. city in America. And the re-named

had founded Universal Health With a strong capital foundation Valley Hospital Medical Center

Services on the belief that the nation’s already in place, UHS had the resources became the city’s premier acute care

hospital industry was poised for major to take Valley Hospital to a new level. provider.

change, as struggling community It entered a successful bid, and set Under UHS ownership, the hospi-

institutions began to seek private about building a presence in the tal thrived on a combination of new

ownership. nation’s penultimate growth market. services, new facilities, and new man-

He was confident that his new agement initiatives. And its staff was

company could bring strong manage- Success Breeds Success energized by a strong emphasis on

ment skills and high quality standards During the 1980’s and 1990’s, an excellence in medical care and an ori-

to the industry. And he resolved that economic recovery and an explosion entation toward patient satisfaction.

UHS would build or acquire hospitals in casino development helped make Naturally, success breeds success.

in areas – such as Las Vegas – where So UHS continually accelerated its

investment in ever-greater levels of

service, facilities, and medical expert-

ise. And it made Valley Hospital the

cornerstone of a broader expansion

Valley Hospital Medical Center as it looked
in 1978 – and as it stands today

6

25 YEARS

Opened in 2003,
Spring Valley
Hospital Medical
Center in Las Vegas
meets the health-
care needs of a
previously under-
served community.

strategy in the state of Nevada.

In 1983, UHS opened Sparks And it continues to expand at a

Family Hospital, now known as rate of approximately 6,000 new facilities and services to serve the

Northern Nevada Medical Center, residents per month. growing needs of the community.

in Sparks, Nevada. In 1997, From its modest beginning, For example, 2003 brought the

Summerlin Hospital Medical Center UHS has become a dominant opening of Spring Valley Hospital

was completed, and in 1998 Desert provider of acute care services to Medical Center in Las Vegas, a 176-

Springs Hospital, also in Las Vegas, patients throughout the region. bed acute care facility and the fourth

was purchased. The combined UHS network member of the Valley Health System.

Each facility is a leader in its in Las Vegas currently employs

own right. And the entire network more than 4,800 professionals – Finding Opportunity, Again

benefits from the ability to collaborate compared with approximately 200 Now, history is about to repeat

on medical services, patient care, staff members at the original Valley itself again in a far northwestern

and purchasing. Hospital – and serves hundreds of corner of Las Vegas, where UHS has

thousands of patients annually. broken ground on its fifth acute care

The Tradition Continues And true to its tradition, the facility, the 176-bed Centennial Hills

Today, the highway out of company continues to invest in new Hospital. Centennial Hills is an area of

Las Vegas stretches to the horizon, scattered housing developments, vast

passing mile after mile of suburban ranchlands – and relatively few roads.

development. But as it has demonstrated from the

The population of Clark start, UHS has a unique ability to see

County is estimated to exceed 1.5 opportunities that others miss – and

million – more than three times to forge its own path to the future.

greater than it was in 1979.

MICHAEL MARQUEZ
VICE PRESIDENT OF THE
ACUTE CARE DIVISION -
WESTERN REGION

7

UNIVERSAL

UHS first embraced the California

spirit in 1981, and currently operates

a total of seven facilities in the state,

including six acute care hospitals, and

a behavioral health center.

Southwest Healthcare System

Located due north of San Diego,

Southwest Healthcare System
An aerial view of the comprises the Inland Valley Campus
Inland Valley Campus
Embracing the California Spirit and the Rancho Springs Campus.
in Wildomar, California,
With its sun-drenched climate,
in the 1990’s. The system enjoys a strong reputation

world-class business environment, for quality healthcare in the region,

and conspicuous wealth, California and was named 2002 Large Business

lives up to its billing as The Golden of the Year by the local Chamber

State. In fact, if it were an independ- of Commerce.

ent nation, its economy would rank The Inland Valley Campus is

#8 worldwide. It is also America’s an 80-bed acute care facility that

most populous state, with more than provides a full range of comprehensive

34 million residents, and perennially healthcare services to the town of

among the fastest-growing. Wildomar. The hospital also serves as

The Inland Valley
Campus of the
Southwest Healthcare
System today.

8

25 YEARS

the community’s only trauma center,

providing emergency medical services,

trauma surgery, intensive care,

diagnostic imaging, rehabilitation,

and other medical services.

In 2003, the Inland Valley Campus

was named as one of the nation’s

100 Top Hospitals that has achieved

excellence in quality of care, efficiency

The thriving community of
of operations, and sustainability of
Wildomar, California.
overall performance. It is the second and services. These include a
This aerial picture was taken
time that Inland Valley has been new 28,000 sq. ft. administrative in February of 2004.
so recognized. support service building to house

In nearby Murrieta, the Rancho administration, education, medical

Springs Campus is a 96-bed acute care records, medical staff, and information

facility serving a growing community services. In addition, the hospital Center which is 40 miles from

of more than 41,000 residents. plans to add a new obstetrics Rancho Springs.

In September, 2003, Rancho department with labor, delivery,

Other Facilities
Springs broke ground on a major and recovery beds; a triage/

Our behavorial health facility in
redevelopment project that will monitoring room; postpartum

the southernmost portion of the
expand many of its departments beds; a newborn nursery; OB

Golden State is Del Amo Hospital,
surgical suites; and a neonatal

located in Torrance, California.
intensive care unit.

To the north, in the Antelope
The plan also calls for the

Valley near Los Angeles, UHS owns
hospital’s emergency department to

Lancaster Community Hospital.
more than triple its capacity from

Acquired in 2002, this acute care
eight to 26 treatment bays. And the

hospital provides technologically
radiology department will expand

advanced emergency care, cardiac
to include mammography and

care, physical therapy and reha-
ultrasound services.

bilitation, and inpatient/outpatient
Adding to our network in

surgery services.
this area, UHS purchased the

228-bed Corona Regional Medical

9

UNIVERSAL

McAllen Medical Center in McAllen, Texas, was built by
UHS in 1985. Today, McAllen Medical Center is the largest
full-service hospital in the upper Rio Grande Valley.

greater McAllen has been transformed hospital in the upper Rio Grande

Succeeding in a Texas-Size Market into a major international trade area, Valley, McAllen Medical serves

Running close behind Las Vegas is teeming with activity in such areas as patients from the entire Rio Grande

McAllen, Texas, the nation’s fourth manufacturing, retailing, import/export, Valley and northern Mexico, and has

fastest-growing metropolitan area. and tourism. Home construction is earned a reputation for superior

Located in the Rio Grande Valley, just also booming, as suburban communities medical expertise, state-of-the-art

four miles from the U.S./Mexico border, spring up to accommodate the rapid- technologies, and modern facilities.

McAllen has seen a huge influx of ly-rising population.

residents in recent decades. Between UHS first entered the McAllen South Texas Health System

1990 and 2000, the area’s population market in 1985 by purchasing the Like Valley Hospital in Las Vegas,

grew from 383,000 to 569,000 and is former McAllen Municipal Hospital, McAllen Medical Center serves as the

expected to reach 715,000 by 2010. now known as McAllen Medical hub of a thriving healthcare network

Once a rural, agricultural region, Center. As the largest full-service known as South Texas Health System.

10

25 YEARS

This diverse network also includes UHS entered the Amarillo market

McAllen Heart Hospital, McAllen in 1996 by acquiring Northwest Texas

Medical Behavioral Health Center, Hospital. Since then, UHS has made

Rehabilitation Institute of McAllen, significant investments in the facility – RICHARD C. WRIGHT
VICE PRESIDENT -
Edinburg Regional Medical Center, and in the local market. DEVELOPMENT

and The Rehabilitation Pavilion. In Today, Northwest Texas Hospital is

2003, the network was the dominant the centerpiece of the Northwest Texas Fort Duncan Medical Center and

provider in the region. Health System, a network that also Doctors Hospital of Laredo

As the McAllen region expands, includes the J.O. Wyatt Community Elsewhere in Texas, UHS’s Fort

competition in the healthcare market Health Center, Northwest Texas Duncan Medical Center is located in

is also on the rise. In response to Women’s and Children’s Center, Eagle Pass, one of the fastest-growing

this trend, South Texas Health System Northwest Texas Sports Medicine cities in the state. With 297 beds, Fort

plans to streamline its operations, Center, Northwest Wound Care Duncan holds more than 70% of its

elevate its Service Excellence and Center, and the Pavilion. local market, and experienced double-

Quality Improvement Programs, In 2003, Northwest Texas Health digit revenue growth in 2003.

and establish itself as a leader in System expanded this market-leading Laredo, Texas, the home of

healthcare education. network yet again by opening the Doctors Hospital of Laredo, is also

Heart Hospital of Northwest Texas expanding quickly. Doctors Hospital

Northwest Texas Health System and The Children’s Hospital at has experienced strong growth in

Hundreds of miles north of Northwest Texas Healthcare System. admissions, revenues, operating

McAllen, the storied city of Amarillo These two facilities represent a total profits, and medical staff on the

continues to attract new residents and of 90 new beds, and have already strength of its quality care, modern

businesses through its thriving energy met with strong demand from the facilities, and recently-completed

industry and relaxed lifestyle. local community. cancer treatment center.

Acquired in 1996, Northwest Texas Hospital is
now part of a six-facility network.
11

UNIVERSAL

The rapidly-evolving site
of Wellington Regional
Medical Center, from
1984 to the present.

December, 1984
A Sunny Outlook in Florida

For decades, the state of Florida has strained to

accommodate an exploding population. From the north,

retirees and young families have been drawn to the state’s

warm climate, year-round outdoor activities, and booming

job market. From the south, families and businesses have

made Florida a multicultural gateway to the Caribbean,

Latin America, and South America.

UHS recognized Florida’s growth potential from the

very start, purchasing Doctors’ Hospital of Hollywood,
Februar y, 1985
Florida in 1978. Today, the company owns facilities in

two of the state’s fastest-growing communities: Wellington

and Bradenton.

Wellington Regional Medical Center

Located in a formerly rural section of Palm Beach

County, Wellington Regional Medical Center joined

the UHS family in 1986. Since then, its surrounding

community has witnessed a population surge, recording

double-digit growth in recent years.
August, 1985
Incorporated in 1996, the young Village of Wellington

features a growing industrial base, a diverse population,

several new schools, and large tracts of new housing.

Wellington Regional Medical Center has contributed

to the area’s growth, allowing residents to find quality

healthcare without traveling to congested downtown

locations. And, it has thrived by focusing on the services

its community needs most, including a full range of joint

Februar y, 2004

25 YEARS

replacement programs for adults who Manatee Memorial Hospital nuclear medicine, and obstetrics.

participate in golf, tennis, and other On Florida’s West Coast, in the And it will soon join forces with

activities that abound in the area. community of Bradenton, Manatee Lakewood Ranch Medical Center,

To keep up with increasing Memorial Hospital is also striving to a full-service acute care facility that

demand, Wellington will soon add keep pace with above-average growth. is scheduled to be completed by

more than 30,000 square feet of Over the past two decades, the popu- UHS in 2004.

space to accommodate new operating lation of Manatee County has doubled In 2003, the hospital celebrated

suites, outpatient admissions, and a to over 274,000, thanks to a people- its 50th anniversary, and was voted

comprehensive obstetrics department. friendly and business-friendly best hospital in Manatee County

In addition, it has tripled the size environment, miles of white sandy for the ninth year in a row. Manatee

of its intensive care unit while more beaches, and old-style Florida charm. Memorial currently commands a

than doubling the size of its staff As a premier provider to the 29% share of the local market,

over the past six years. And in 2004, community, Manatee Memorial and plans to increase that share by

it will open a new outpatient surgery Hospital offers a full range of beginning construction of a new

center for patients who undergo outstanding healthcare services, patient tower in 2004.

same-day procedures. including cardiology, oncology,

Wellington Regional Medical Center.

13

UNIVERSAL

Presently under
construction,
the new building
at Lakeside
Behavioral
Health System
will be completed
in 2004.

Behavioral Health Division

Like the Acute Care Division,

the UHS Behavioral Health Division

often seeks to establish a network Among the many outstanding

of facilities in a region, while behavioral health centers in the ten-bed children’s unit, a 30-bed

developing strong relationships UHS network are: adolescent unit, a 32-bed geriatric

with referral sources such as medical unit, a 33-bed adult unit, a 33-bed

and psychiatric professionals. Peachford Behavioral Health System addictions unit, and a 46-bed

This approach has worked excep- Peachford Behavioral Health stabilization unit. It also offers

tionally well for UHS, which has built System is a 184-bed psychiatric and partial hospitalization and intensive

a nationwide group of more than 40 chemical dependency hospital located outpatient programs to adults and

behavioral health centers stretching on 27 acres in an affluent northern adolescents seven days a week.

from New England to Alaska. suburb of Atlanta. And a newly renovated 30-bed room

In a market segment that is con- Peachford’s facilities include a and board lodging area is available

sidered one of the most challenging of for those patients attending these

all healthcare specialties, UHS has outpatient programs.

established a record of extraordinary

success as measured by admissions, Lakeside Behavioral Health System

patient outcomes, and profitability. Lakeside Behavioral Health

System, a 219-bed hospital located in

DEBRA K. OSTEEN
PRESIDENT OF THE
BEHAVIORAL HEALTH DIVISION
14

25 YEARS

Memphis, Tennessee, has provided

psychiatric and chemical dependency

treatment services to area adults,

adolescents, and children for over

25 years. It operates on a campus

setting that consists of eight buildings

on 37 acres.

Lakeside’s acute care programs

include specialty tracts for impaired

professionals, trauma patients, and

clinical drug trials. In addition, it
The Provo Canyon School in
offers assessment/referral and one-quarter ownership in a similar
Utah specializes in
intensive outpatient services in three provider network in Oklahoma City. treating adolescents with
emotional, behavioral,
satellite locations. Lakeside also serves the eight
and learning difficulties.
Lakeside is an important part of emergency rooms of the Methodist

the Memphis community, operating Health System and the Baptist Health

two county alternative schools, one System with consultation and largest provider of acute mental health

private alternative school, and five liaison services. services in the state of Alaska. The

special education classrooms. In addi- system consists of a 74-bed hospital

tion, it owns and operates the Alliance North Star Behavioral Health System and two residential treatment centers,

for Behavioral Health, a provider Acquired by UHS in 2003, North and provides psychiatric services to

network in Memphis, and has a Star Behavioral Health System is the children and adolescents.

Peachford Behavioral
Health System in
suburban Atlanta.

15

UNIVERSAL 25 YEARS

are located in the nation’s fastest-

With a strong growing markets, knowing that
reputation for
growing populations inevitably lead
quality and
to growing patient volumes.
performance,
UHS is positioned At all times, we will recognize
to deliver caring
that healthcare plays an important
healthcare
role in the public trust. We take that
services well into
the next generation. role very seriously in every commu-

nity we serve, and constantly strive

to bring our patients the level of

The Next Quarter Century service that they expect and deserve.
We will continue to manage
While it is impossible to predict Ultimately, we believe that our
costs, knowing that private and
the future, the next 25 years are approach is simply good medicine.
public insurers will always scrutinize
certain to be a period of dramatic And as our 25 years of success
healthcare-related expenses.
and exciting change in the healthcare demonstrate, it is also good business.
And, we will continue to build
industry, bringing new technologies, and acquire healthcare facilities that
new treatment methodologies, and

new trends in compensation.

And yet, certain fundamental

principles will always apply. Which
P E R F O R M A N C E O F 1 , 0 0 0 M A J O R U . S . C O M PA N I E S C O M PA R E D W I T H T H E I R P E E R S
is why those are the principles that
TOP TEN HEALTHCARE PROVIDERS
will shape our company’s strategy
Surplus/Deficit
10-Year Average
Healthcare Providers Relative to Industry
for the future – just as they have Return (%)

shaped our past. Universal Health Services 29.0 15.6
Express Scripts 28.0 14.6
Lincare Holdings 23.6 10.2
For example, we will continue
Health Management 22.9 9.5
UnitedHealth Group 19.4 6.1
emphasizing healthcare of the high-
Oxford Health Plans 17.8 4.5
Mid Atlantic Medical 16.8 3.5
est quality, confident that patients
First Health Group 12.5 -0.9
Omnicare 12.4 -0.9
will always place a high value on HCA 12.2 -1.2
Industry Group Average 13.4 --
professionalism and compassion.
The Wall Street Journal is a registered trademark of Dow Jones L. P. The Wall Street Journal Shareholder Scoreboard is a
service mark of Dow Jones L. P. The chart displayed in this ad has been excerpted from The Wall Street Journal, March 10, 2003.
Reprinted with permission.

16

Director y of Hospitals and Centers

A C U T E C A R E H O S P I TA L S Edinburg Regional Medical Center Northern Nevada Medical Center
Edinburg, Texas Sparks, Nevada
Aiken Regional Medical Centers 169 beds 100 beds
Aiken, South Carolina
225 beds Fort Duncan Medical Center Northwest Texas Healthcare System
Eagle Pass, Texas Amarillo, Texas
Arroyo Grande Community Hospital 77 beds 357 beds
Arroyo Grande, California
65 beds French Hospital Medical Center River Parishes Hospital
San Luis Obispo, California LaPlace, Louisiana
Auburn Regional Medical Center 112 beds 106 beds
Auburn, Washington
149 beds The George Washington University Hospital St. Mary’s Regional Medical Center
Washington, D.C. Enid, Oklahoma
Caribbean Pediatric and Surgery Hospital 371 beds 277 beds
Rio Piedras, Puerto Rico
160 beds Hospital San Pablo Southwest Healthcare System
Bayamon, Puerto Rico Inland Valley Campus
Central Montgomery Medical Center 430 beds Wildomar, California
Lansdale, Pennsylvania 80 beds
150 beds Hospital San Pablo del Este
Fajardo, Puerto Rico Southwest Healthcare System
Chalmette Medical Center 180 beds Rancho Springs Campus
Chalmette, Louisiana Murrieta, California
195 beds Lakeland Medical Center 96 beds
New Orleans, Louisiana
Corona Regional Medical Center 156 beds Spring Valley Hospital Medical Center
Corona, California Las Vegas, Nevada
228 beds Lancaster Community Hospital 176 beds
Lancaster, California
Desert Springs Hospital 117 beds Summerlin Hospital Medical Center
Las Vegas, Nevada Las Vegas, Nevada
351 beds Manatee Memorial Hospital 199 beds
Bradenton, Florida
Doctors Hospital of Laredo 491 beds Valley Hospital Medical Center
Laredo, Texas Las Vegas, Nevada
180 beds McAllen Medical Center and 400 beds
McAllen Heart Hospital
Doctors’ Hospital of Shreveport McAllen, Texas Wellington Regional Medical Center
Shreveport, Louisiana 633 beds West Palm Beach, Florida
136 beds 127 beds
Methodist Hospital
New Orleans, Louisiana
306 beds
80

B E H AV I O R A L H E A LT H C E N T E R S North Star Children’s Hospital Clinique Le Louvre
Anchorage, Alaska Paris, France
Anchor Hospital 20 beds
25 beds
Atlanta, Georgia
74 beds Clinique Montréal
North Star Counseling Centers
Carcassonne, France
Anchorage, Alaska
The Arbour Hospital 120 beds
Boston, Massachusetts North Star Hospital
118 beds Clinique Notre Dame
Anchorage, Alaska
Thionville, France
76 beds
The BridgeWay 73 beds
North Little Rock, Arkansas Palmer Residential Treatment Center
70 beds Clinique Pasteur
Palmer, Alaska
Bergerac, France
9 beds
The Carolina Center for Behavioral Health 106 beds
Greer, South Carolina Parkwood Behavioral Health System
66 beds Clinique Paul Doumer
Olive Branch, Mississippi
106 beds Paris, France
Clarion Psychiatric Center 50 beds
Clarion, Pennsylvania The Pavilion
70 beds Champaign, Illinois Clinique Richelieu
46 beds Saintes, France
Community Behavioral Health 73 beds
Memphis, Tennessee Peachford Behavioral Health System of Atlanta
50 beds Atlanta, Georgia Clinique Saint Augustin
184 beds Bordeaux, France
Del Amo Hospital 155 beds
Torrance, California Pembroke Hospital
166 beds Pembroke, Massachusetts Clinique Villette
107 beds Dunkerque, France
Fairmount Behavioral Health System 117 beds
Philadelphia, Pennsylvania Provo Canyon School
169 beds Provo, Utah Polyclinique St. Jean
211 beds Montpellier, France
Forest View Hospital 95 beds
Grand Rapids, Michigan Ridge Behavioral Health System
62 beds Lexington, Kentucky
110 beds A M B U L AT O R Y S U R G E R Y C E N T E R S
Fuller Memorial Hospital
South Attleboro, Massachusetts River Crest Hospital Brownsville Surgicare
82 beds San Angelo, Texas Brownsville, Texas
80 beds
Glen Oaks Hospital OJOS/Eye Surgery Specialists of Puerto Rico
Greenville, Texas River Oaks Hospital Santurce, Puerto Rico
54 beds New Orleans, Louisiana
126 beds Goldring Surgical Center
Good Samaritan Counseling Center Las Vegas, Nevada
Anchorage, Alaska Rockford Center
Newark, Delaware Northwest Texas Surgery Center
Hampton Hospital 74 beds Amarillo, Texas
Westhampton, New Jersey
100 beds Roxbury Outpatient Surgical Center of Ponca City
Shippensburg, Pennsylvania Ponca City, Oklahoma
Hartgrove Hospital 53 beds
Chicago, Illinois Plaza Surgery Center
119 beds St. Louis Behavioral Medicine Institute Las Vegas, Nevada
St. Louis, Missouri
The Horsham Clinic St. George Surgical Center
Ambler, Pennsylvania Talbott Recovery Campus St. George, Utah
146 beds Atlanta, Georgia
St. Luke’s Surgicenter
Hospital San Juan Capestrano Timberlawn Mental Health System Hammond, Louisiana
Rio Piedras, Puerto Rico Dallas, Texas
108 beds 124 beds Surgery Center of Midwest City
Midwest City, Oklahoma
HRI Hospital Turning Point Care Center
Brookline, Massachusetts Moultrie, Georgia Surgery Center of Springfield
68 beds 59 beds Springfield, Missouri
KeyStone Center Two Rivers Psychiatric Hospital Surgical Arts Surgery Center
Wallingford, Pennsylvania Kansas City, Missouri Reno, Nevada
114 beds 80 beds
Surgical Center of New Albany
La Amistad Behavioral Health Services Westwood Lodge Hospital New Albany, Indiana
Maitland, Florida Westwood, Massachusetts
56 beds 126 beds
R A D I AT I O N O N C O L O G Y C E N T E R S
Lakeside Behavioral Health System
Memphis, Tennessee Auburn Regional Center for Cancer Care
MÉDI-PARTENAIRES (Paris/Bordeaux)
204 beds Auburn, Washington
Clinique Ambroise Paré
Laurel Heights Hospital Toulouse, France Cancer Institute of Nevada
Atlanta, Georgia 195 beds Las Vegas, Nevada
107 beds
Clinique Bon Secours Carolina Cancer Center
The Meadows Psychiatric Center Le Puy en Velay, France Aiken, South Carolina
Centre Hall, Pennsylvania 95 beds
113 beds Madison Radiation Therapy
Clinique Claude Bernard Madison, Indiana
Meridell Achievement Center Metz, France
Austin, Texas 218 beds
114 beds SPECIALIZED WOMEN’S
Clinique d’Aressy H E A LT H C E N T E R
Midwest Center for Youth and Families Aressy, France
Kouts, Indiana 179 beds Renaissance Women’s Center of Edmond
50 beds Edmond, Oklahoma
Clinique de Bercy
Charenton le Pont, France
92 beds 81

Board of Directors

(STANDING FROM LEFT TO RIGHT) JOHN F. WILLIAMS, JR., ALAN B. MILLER, ANTHONY PANTALEONI
(SEATED) ROBERT H. HOTZ, LEATRICE DUCAT, JOHN H. HERRELL

3, 4
Robert H. Hotz 1, 3, 4, 5
Alan B. Miller
Chairman of the Board, Senior Managing Director,
President and Head of Investment Banking,
Chief Executive Officer Head of the Board of Directors
Advisory Service, Member of
the Board of Directors,
Leatrice Ducat 1, 2, 5
Houlihan Lokey Howard & Zukin,
New York, NY;
President and Founder, National
Former Senior Vice Chairman,
Disease Research Interchange
Investment Banking for the Americas,
since 1980; President and
UBS Warburg, LLC, New York, NY
Founder, Human Biological Data
Interchange since 1988; Founder,
Juvenile Diabetes Foundation,
Anthony Pantaleoni 3, 4
National and International
Organization Of Counsel, Fulbright & Jaworski, L.L.P.
New York, NY

John H. Herrell 1, 2 John F. Williams, Jr.,M.D.,Ed.D. 2, 5
Former Chief Administrative Officer Provost and Vice President for Health Affairs,
and Member, Board of Trustees, Mayo The George Washington University
Foundation; Rochester, MN

Committees of the Board: Audit Committee, Compensation Committee,
1 2

Executive Committee, Finance Committee, Nominating/Corporate Governance
3 4 5

82

25 YEARS OF CARING

T H E 2 5 - Y E A R H I S T O RY O F U H S I S C O M P O S E D
OF THOUSANDS OF ACHIEVEMENTS, LARGE
AND SMALL. HERE IS A CHRONOLOGICAL
L O O K AT S O M E O F T H E M A J O R M I L E S T O N E S
T H AT H AV E S H A P E D O U R C O M PA N Y, A N D
R E S H A P E D O U R I N D U S T RY.

1980 Year-End Results:
Gross Revenues: $80,509,000
Net Revenues: $65,742,000
Acquired Valley Hospital Medical Center,
Net Income: $2,028,000
Las Vegas, NV
Venture Capital Group: Citicorp Venture Initial Public Offering - Merrill Lynch,
Capital; Security Pacific; First Chicago L. F. Rothschild and F. Eberstadt & Co.

1979 1980 1981 1982 1983

1981 Year-End Results: Sidney Miller and George
Gross Revenues: $119,391,000 H. Strong appointed
Net Revenues: $92,174,000 Senior Vice Presidents.
Anthony Pantaleoni,
Five hospitals, including Esq., of Reavis and
Auburn Regional Medical McGrath, elected to
Center, purchased from Board of Directors
Steward Foundation

Leonard W. Cronkhite,
1979 Year-End Results: First Board of Directors
Jr., MD elected to
Gross Revenues: $30,932,000 included Alan B. Miller,
Board of Directors
Net Revenues: $25,149,000 Sidney Miller,
Net Income: $388,000 George H. Strong,
Edwin C. Cohen,
Leonard Shaykin and
Mary Ann Ninnis,
Thomas L.Kempner.
now the Director of
Advertising, joins UHS

Corporate office building Acquisition of Qualicare, Inc.
acquired at 367 South Gulph completed, adding 11
Rd., King of Prussia, PA.Total acute-care and 4 psychiatric
space: 70,000 square feet. facilities. Additional
psychiatric facility
UHS Board of Directors declares under construction.
a stock split in the form of a
100% stock dividend. Opening of The BridgeWay,
North Little Rock, AR
Opening of Sparks Family Opening of KeyStone Recovery
Hospital, Sparks, Nevada, later Opening of River Oaks, Center,Wallingford, PA 1986 Year-End Results:
named Northern Nevada New Orleans, LA Gross Revenues: $665,784,000
Medical Center. Acquired McAllen Methodist Net Revenues: $473,447,000
Hospital, McAllen,TX, later named Net Income: $1,694,000
McAllen Medical Center
Opening of Glen Oaks Hospital,
Company issues ten percent stock Greenville,TX
dividend as of November 27,
payable to holders of Joyce Lunney named
Class A and Class B Common Stock. Assistant Vice President - Taxation

Opening of Turning Point Care Don Pyskacek named Assistant Vice
Center, Moultrie, GA President - Design and Construction

1984 1985 1986 1987 1988
1983 Year-End Results: Opening of Two Rivers Psychiatric
Gross Revenues: $348,998,000 Hospital, Kansas City, MO
Net Revenues: $275,712,000.
Net Income: $9,807,000 Formation of Universal Health
Realty Income Trust (UHT)
Acquired Forest View Hospital,
Grand Rapids, MI Opening of Wellington Regional
Medical Center,West Palm Beach, FL

Opened River Crest Hospital,
San Angelo,TX

Net Income: $11,800,000

Acquired La Amistad Psychiatric
Treatment Facility, Maitland, FL


Acquired Chalmette
Medical Center 1990 Year-End Results
Gross Revenues: $1,033,000,000
Net Income: $11,600,000

Steve G. Filton promoted to Vice President

UHS begins trading its Class B common shares on
the New York Stock Exchange

Robert H. Hotz elected to the Board of Directors

Bruce R. Gilbert appointed General Counsel

1989 1990 1991 1992 1993

Gross Revenues: $1,129,852,000.
Net Income: $20,300,000

Alan B. Miller elected CEO of the
Year For Health Service Industry
- Financial World Magazine

Linda L.E. Reino appointed
Assistant Vice President -
Information Systems

Acquired Fuller
Acquired Aiken Regional
Memorial Hospital,
Medical Centers, Aiken, SC
South Attleboro, MA
Acquired The Pavilion,
Champaign, IL
Net Revenues: $782,199,000 Acquired The George Opened Edinburg
Net Income: $28,700,000 Washington University Regional Medical
Acquired Manatee
Hospital,Washington, DC, Center, Edinburg,TX.
Memorial Hospital,
in partnership with the
Bradenton, FL
1992 Year-End Results
University Opened Summerlin
Hospital Medical Center,
Net Revenues: $ 731,227,000
Service Excellence initiative Las Vegas, NV
Net Income: $20,000,000
is introduced.
Ms.Lee Ducat elected to
John H. Herrell, Chief
1996 Year-End Results: Board of Directors
Administrative Officer of the
Mayo Foundation, elected
Net Revenues: $1,174,158,000 Roy A.Ettlinger named
to Board of Directors
Net Income: $50,700,000 Vice Presdent of the

1994 1995 1996 1997 1998

Acquired four behavioral health-
care hospitals from First Hospital
Corp. of PA.

UHS Management Services
established.

Acquired Northwest Texas
Healthcare System, Amarillo,TX Completed a joint venture UHS named to the
to link UHS' Valley and Wall Street Journal
Two for one stock split. Summerlin Hospitals with Shareholder Honor Roll
Richard Wright appointed Vice Acquired Outstanding shares increase Quorum's Desert Springs
President – Development Edinburg Hospital, from 14.4 million to 28.8 Hospital, in Las Vegas. Opened San Pablo
Edinburg,TX, million. Del Este, a 180-bed
1993 Year-End Results: later named
Initiated Universal hospital in Fajardo,
Gross Revenues: $1,336, 215,000 Edinburg Regional Sold 4,000,000 shares of Class B Managed Behavioral Puerto Rico
Net Revenues: $761,544,000 Medical Center Common Stock. Net proceeds Health Organization
Net Income: $24, 000, 000 approximately$100 million Announced a stock
Acquired San Pablo Health repurchase program.
Inland Valley Regional Medical Acquired Timberlawn Mental System. Comprised of: 460,000 shares are
Center chosen one of the “Top Health System, Dallas,TX Hospital San Pablo and repurchased under this
100 Hospitals” in the country by
Hospital San Francisco, San program at an average
Modern Healthcare Magazine Micheal Urbach named Juan, Puerto Rico and price of $42/share.
Senior Vice President of the Hospital San Pablo del
Ambulatory Division Este, Fajardo, Puerto Rico

Acquired three behavioral John F.Williams, Jr., MD,Vice Acquired Rancho Springs Opened new 126-bed patient
health hospitals from President for Health Affairs Medical Center, a 96-bed acute tower at Desert Springs
Hospital Group of America. and Dean of The George care hospital in Murrieta, CA Hospital, Las Vegas, NV
Washington University School
Alan B. Miller received the of Medicine and Health Acquired Pembroke Hospital UHS listed by the Wall Street
First Lifetime Achievement Sciences, elected to the UHS
and Westwood Lodge Hospital, Journal as the top healthcare
Award 1999 from the Board of Directors
two behavioral health hospitals provider over the ten-year peri-
Federation of American
in Boston, Massachusetts. od 1990-2000 based on
Health Systems. Debra K. Osteen
achievement of a 38% com-
appointed Vice President,
Acquired Hospital San Juan pound annual growth rate.
Eileen Bove named Assistant and President of the
Capestrano, a 108-bed
Vice President - Human Behavioral Health Division
Resources behavioral health hospital, UHS executed
Manatee Memorial Hospital and related clinics in a two for one stock split.
Acquired 117-bed Doctors named one of the Rio Piedras, Puerto Rico
Hospital of Laredo. “Top 100 Hospitals” for Opened new replacement
orthopedics by HCIA. Acquired McAllen Heart facility for Doctors Hospital of
Hospital, a 60-bed specialty Laredo, in Texas.
McAllen Medical Center
heart hospital in McAllen,TX
named one of the nation's
O. Edwin French joined UHS as
“Top 100 Hospitals”
Acquired 80% interest in the Senior Vice President, and
by HCIA, Inc.
fourth largest operator of President of the Acute Care
private hospitals in France. Hospital Division
Médi-Partenaires is the name of
the newly formed company.

1999 2000 2001 2002
Alan B.Miller awarded the presti-
Acquired St. Mary's Mercy Michael Marquez appointed gious President's Medal of The
Hospital, a 277-licensed bed, Vice President of the Acute Care George Washington University.
full service hospital in Enid, OK, Division Western Region
later named St. Mary's Regional Grand opening of the new
Medical Center St. Mary's Regional Medical replacement facility for The
Center named one of the George Washington University
Acquired 12 behavioral health country's “Top 100 Orthopedic Hospital.
businesses from Charter Hospitals” for 2000 by HCIASachs.
Behavioral Health Systems Ground breaking to build
McAllen Medical Center named Lakewood Ranch Medical Center,
Acquired Fort Duncan Medical one of the nation's “100 Top a 120-licensed bed acute care
Acquired North Penn Hospital, a
Center, a 77-bed acute care Hospitals: Stroke Benchmarks for hospital, Lakewood Ranch, FL.
150-bed acute care hospital in
hospital in Eagle Pass,TX. Success 2000” by HCIASachs. Lansdale, PA, later named Central
Inland Valley Medical Center
Montgomery Medical Center.
selected as a “Top 100 Hospital”
Martin C. Schappell named
for 2001 by Solucient.
Acquired Lancaster Community
Vice President of the
(Second time recognition)
Hospital, a 117-bed acute care
hospital in Lancaster, CA
Acquired North Star Behavioral
Craig L. Nuckles named
Health Systems, Anchorage,
Grand opening for Wellington
Group Director of the
Alaska.
Regional Medical Center's new $5
million, 13,000 sq.ft.outpatient
UHS listed on Forbes Platinum
surgery and admitting center.
400 among America's Best
Big Companies

Opened The Heart Hospital of 2002 Year-End Results: Alan B. Miller is listed in Modern
Northwest Texas and The Gross Revenues: $8,494,000,000 Healthcare as one of the
Children's Hospital at Northwest Net Revenues: $3,258,898,000 “100 Most Powerful People
Texas Healthcare System.The two Net Income: $175,361,000 in Healthcare.”
combined represent a 90-bed
addition to Northwest Texas Steve G. Filton appointed Senior UHS announced that it signed
Healthcare System. Vice President and Chief an agreement to acquire a 90%
Financial Officer interest in Pendleton Memorial
Methodist Hospital, a 306-bed,
Alan B. Miller featured as full-service acute care facility
quot;CEO of the Weekquot; on CNN-TV. in east New Orleans, LA.

Caribbean Pediatric & Surgery UHS' IT Department was listed
Hospital opened after its con- on the InformationWeek 500,
version to a specialty hospital ranking among the nation's 500
from the former Hospital San largest and most innovative IT
Francisco, an acute care facility. industry leaders.

Opened Spring Valley Hospital Wellington Regional Medical
Medical Center in Las Vegas, Center named one of the
Nevada, a 176-bed acute care nation’s “100 Top Hospitals”
facility and the fourth member by Solucient.
of the Valley Health System.

2003
Moody Chisholm, Larry M. UHS named to the Wall Street
Graham and Daniel P. McLean all Journal Shareholder Scoreboard
named Group Directors of the 2003 as the best performing
Acute Care Division stock among healthcare
providers 1992-2002.
UHS announced agreement
UHS named to the Wall Street
Opened the new 149-bed patient
to acquire Lakeland Medical
Journal Shareholder Scoreboard
tower at Auburn Regional UHS listed on the Fortune 1000
Center in New Orleans, LA.
2003 as the best performing
Medical Center. It includes a new as #1 in total return to investors
stock among healthcare
surgery department, an OB and 1992-2002.
UHS listed on the Fortune
providers 1992-2002.
women's center, a medical/surgi-
1000 as #1 in total return to
cal patient floor, renovations to Marc D. Miller appointed
investors 1992-2002.
Charles F. Boyle named
outpatient admitting and an Assistant Vice President and
Controller; Cheryl K. Ramagano
addition to the emergency room. Group Director of the
named Treasurer; John Paul
Acute Care Eastern Region
Christen named Assistant Vice
President - Hospital Finance
UHS has agreed to purchase
the assets of three acute care
E. Daniel Thomas named Vice
hospitals from Vista Health
President of the Behavioral
System including the 228-bed
Health Division; Barry L. Pipkin
Corona Regional Medical
named Vice President of the
Center, Corona, CA; 112-bed
Behavioral Health Division; Gary
French Medical Center, San Luis
M. Gilberti named Group
Obispo, CA; and 65-bed Arroyo
Director of the Behavioral
Grande Community Hospital,
Health Division
Arroyo Grande, CA.

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