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Honoring Our Past Investing in Our Future

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Honoring Our Past Investing in Our Future ANNUAL REPORT 2019 Honoring Our Past Investing In Our Future UNIVERSAL HEALTH SERVICES, INC. Since our founding 40 years ago, Universal Health Services has grown from six employees with a single hospital management contract to 90,000 employees across an expansive international network. Through a combination of strategic acquisitions, new construction in attractive markets, expansions at existing facilities and joint-venture partnerships, the company has steadily grown through the years to boast a diversied set of assets delivering value to all stakeholders. We remain as committed today as we were in 1979 to providing superior quality care and being the preferred provider in all of the markets we serve. UNIVERSAL HEALTH SERVICES’ PURPOSE-DRIVEN MISSION In the late 1970’s, Alan B. Miller had a vision for a healthcare company that would provide superior quality healthcare services that patients recommend to family and friends, physicians prefer for their patients, purchasers select for their clients, employees are proud of and investors seek for long-term returns. That vision stands as the Mission Statement of UHS. Repeatedly praised by industry experts for being honest and authentic, the Mission Statement identi es value oered to all key stakeholders. OUR MISSION To provide superior quality healthcare services that: Patients recommend to family and friends, Physicians prefer for their patients, Purchasers select for their clients, Employees are proud of, and Investors seek for long-term returns. The UHS operating philosophy is UHS today is one of the nation’s largest as eective today as it was 40 years and most respected providers of hospital ago: Develop high quality hospitals in and healthcare services. Through growing markets and invest in the people its subsidiaries, the company currently and equipment needed to allow each operates approximately 400 facilities facility to become the leading healthcare all across the United States, Puerto Rico provider in each and every community and the United Kingdom. we serve. UHS owes its success to a responsive management style and to a We look forward to continuing to philosophy that is based on integrity, successfully deliver upon our Mission competence and compassion. Believing for decades to come. in the power of people and strong leadership, we seek the best talent in the industry to instill excellence in all we do. 2019 BY THE NUMBERS , 3.5 EMPLOYEES, GLOBALLY MILLION PATIENTS SERVED , NURSES 1,200+ PROVIDERS OF PHYSICIAN SERVICES ACUTE CARE BEHAVIORAL HEALTH 1.4 million ER visits 328 inpatient MILLION facilities 33,000 births INVESTMENT IN 488,000 EQUIPMENT, FACILITY inpatients served EXPANSIONS AND 243,000 surgeries RENOVATIONS 256,000 7 Accountable outpatients served Care Organizations (ACOs) 25 facilities offering Patriot JOINT VENTURE Support Programs PARTNERSHIPS YEARS ON YEARS ON THE YEARS OUR CEO THE FORTUNE FORTUNE 500 HAS BEEN NAMED WORLD’S TO THE MODERN MOST ADMIRED HEALTHCARE “MOST COMPANIES LIST INFLUENTIAL” LIST LETTER TO OUR SHAREHOLDERS Dear Valued Shareholders, 40 years is a milestone of which I personally am very proud: 40 years of growth, innovation and care delivery. Over the past four decades, we have worked hard to deliver upon our mission, care for patients in the most eective manner, grow strategically and turn challenges into golden opportunities. Our company anniversary is the perfect time to acquisition of innovative technologies to acknowledge and review our accomplishments – support the advancement of care. We continue and to look ahead to a future of continued to invest in access points across the integrated success. On this very special occasion, please delivery of care continuum – including six accept my sincere thanks for your significant new Freestanding Emergency Departments contributions to our Company’s success. – as well as engage in strategic partnerships that will enable patients to access the right UHS today is one of the nation’s largest and level of care at the right location. In October, most respected providers of hospital and we broke ground on Northern Nevada Sierra healthcare services, with a strong and diverse Medical Center, which, when open in 2022, portfolio of hospital-based care, ambulatory will be the first new full-service hospital in the care, behavioral health, an insurance offering, a growing Reno market in 100 years. Our seven physician network and various related services. Accountable Care Organizations across the With 90,000 employees, we currently operate country, covering 130,000 Medicare lives, drove approximately 400 facilities across the United physician alignment through value-based care States, Puerto Rico and the United Kingdom. initiatives, yielding over $65 million Medicare In 2019, we delivered care to 3.5 million patients cost savings and earning $30 million for the across inpatient and outpatient access points. 3,000 participating physicians. UHS generated net revenues of approximately Our significant achievements in Behavioral $11.4 billion, an increase of 5.6% over 2018. Health during the year include the On a same facility basis, adjusted admissions announcement of five de novo facilities currently increased 4.8% across the Acute Care Division, under construction across the U.S. that are and 1.2% within the Behavioral Health Division. new joint ventures with established and highly Highlights in Acute Care include expansions respected not-for-profit health systems, and and renovations at a number of our hospitals, two de novo fully owned facilities in markets as well as addition of new service lines and identified to us by referral entities as currently Alan B. Miller UHS issues its Acquisition of UHS operates UHS UHS is UHS is listed UHS reports founds UHS; Initial Public Qualicare, Inc. 41 facilities acquires named to on the Fortune revenues of acquires Offering (IPO) doubles UHS in with 4,545 majority the Wall 1000 as #1 in $3.6 billion with Valley Hospital of stock; size and marks beds ownership of Street total return to 100 facilities Medical Center acquires 5 entry into the The George Journal investors from across U.S.; in Las Vegas hospitals Behavioral Washington Shareholder 1992-2002 attains ranking Health field University Honor Roll on Fortune 500; UHS employs Hospital Alan B. Miller over 8,000 (opens first named clinical and replacement among 100 Most support staff hospital in Influential People 2002) by Modern Healthcare underserved markets. Our quality of care data We are currently ranked #293 on the Fortune continues to exceed the national average, 500 list, and our employees and facilities with strong patient satisfaction and outcomes continue to be honored by national, state and metrics. In the United Kingdom, Cygnet Health local organizations for delivering high quality Care celebrated its 30th anniversary with the care, for pioneering innovation, for their thought successful integration of 25 facilities recently leadership and for their commitment to serving acquired from The Danshell Group, further their local communities. establishing Cygnet as one of the largest We look ahead with great optimism. 2020 will providers of mental health services in the U.K. be a year of continued growth and expansion, We delivered highly favorable outcomes for operational excellence and achievement of individuals in our care, with 85% of our U.K. new milestones. Thank you for your continuing services rated as ‘Outstanding’ or ‘Good’ by interest and investment in UHS. regulatory agencies. I am proud of the reputation we have earned Sincerely, as a leader in the healthcare industry. For the tenth consecutive year, UHS was recognized among ‘World’s Most Admired Companies’ by Fortune magazine. Alan B. Miller Founder, Chairman of the Board and Chief Executive Officer Alan B. Miller received the Admiral Charles LeMoyne Distinguished Civilian Award on December 13, 2019, presented by The Ben Franklin Global Forum in recognition of his leadership and accomplishments in providing superior behavioral healthcare to active duty military, veterans and their families. (l to r) Rear Admiral Frank Mitchell Bradley, Assistant Commander — Navy, Joint Special Operations Command; Bob Daniels, Chairman, Ben Franklin Global Forum; Alan B. Miller, Founder, Chairman and CEO, Universal Health Services; and Major General Xavier T. Brunson, Commanding General, 7th Infantry Division In recognition of the Company’s 40th anniversary, the UHS Board of Directors and Corporate Officers were invited to ring the Closing Bell at the New York Stock Exchange on April 30, 2019. UHS is added UHS is named Over 35,000 UHS acquires Henderson UHS UHS acquires UHS is named to the S&P as one of people are Psychiatric Hospital acquires The Danshell to Fortune’s 500 index; the 30 Most employed by Solutions Inc. opens in Cambian Group, list of World’s acquires Cygnet Meaningful UHS (PSI) adding Henderson, Adult expanding UK Most Admired Health Care Companies 105 facilities to NV Services presence into Companies for the (UK); acquires to Work for the Behavioral Division Scotland and 9th consecutive Prominence Health in America Health Division (UK) Wales year; UHS breaks UHS Plan, entering by Business ground on Foundation is healthcare Insider Northern Nevada established insurance industry; Magazine Sierra Medical rings the NYSE UHS establishes Center, the first Closing Bell in Independence new full-service recognition of its Physician hospital to be 35th anniversary Management 2019 ANNUALbuilt REPORT in Reno in 7 (IPM) 100 years FINANCIAL
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