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universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
universal helath services  ar_2002
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universal helath services ar_2002

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  • 1. ANNUAL REPORT 2002 UNIVERSAL HEALTH SERVICES, INC.
  • 2. Index Financial Highlights.................................. 2-3 Shareholders Letter.................................. 4-5 Doing What We Do Best ......................... 6-22 Financial Results..................................... 23-71 Directory of Hospitals............................. 72-73 Board of Directors.................................. 74 Officers/Corporate Information................ 75 Front Cover: This unique photomosaic is made from over 4900 individual pictures taken during the construction of The George Washington University Hospital.
  • 3. On August 23, 2002, one of UHS’s most ambitious dreams became a reality. The new George Washington University Hospital (GWUH) officially opened its doors, inaugurating a state-of-the-art medical facility that is unmatched in our nation’s capital. Five years in the making, it has been welcomed by patients, staff members, and community leaders alike.
  • 4. The new GWUH is a shining example of the UHS approach to hospital management. It is designed to meet the highest standards of patient services. It features the latest in advanced medical technologies. And it was achieved through the hard work and effective management of professionals who believe that quality healthcare can coexist with profitable operations.
  • 5. UNIVERSAL 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 Admissions (in thousands) those whose focus is providing quality 480 healthcare on a cost-effective basis. 420 The UHS Mission 360 To provide superior quality healthcare services that: Patients 300 recommend to families and friends, physicians prefer for their patients, purchasers select for their clients, 240 employees are proud of, and investors seek for long-term returns. 180 We will realize this vision through our commitment to the 120 following principles: service excellence, continuous improvement in measurable ways, employee 60 development, ethical and fair treatment for all, teamwork, compassion, and 0 innovation in service delivery. 98 99 00 01 02 2
  • 6. Financial Highlights PERCENTAGE 2002 2001 2000 YEAR ENDED DECEMBER 31 INCREASE NET REVENUES $ 3,258,898,000 $ 2,840,491,000 15% $ 2,242,444,000 NET INCOME $ 175,361,000 $ 99,742,000 76% $ 93,362,000 EARNINGS PER SHARE * (DILUTED) $ 2.74 $ 1.60 71% $ 1.50 PATIENT DAYS 2,564,022 2,253,611 14% 1,626,069 ADMISSIONS 414,390 355,117 17% 264,742 AVERAGE NUMBER 10,648 9,966 7% 7,592 OF LICENSED BEDS • 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 (in millions) (diluted) $3,400 $2.80 $2,975 $2.45 $2,550 $2.10 $2,125 $1.75 $1,700 1.40 $1,275 $1.05 $850 $.70 $425 $.35 $0 $0 98 99 00 01 02 98 99 00 01 02
  • 7. UNIVERSAL Net Income Increases for UHS Acquires 100th Facility the 10th Consecutive Year and We’re Still Growing We are pleased to report This strategy reached that net revenues for the an exciting new milestone in year ended December 31, 2002 as we acquired our 2002, were $3.3 billion, a 100th facility, located in 15% increase from the prior Lansdale, Pennsylvania. year. Net income for the This community hospital, year was $175.4 million or which has been renamed $2.74 per share (diluted). Central Montgomery Medical Net income increased for Center, has the distinction the tenth consecutive year. of being UHS’s first acute By year-end 2002, share- care facility in Pennsylvania, holders’ equity increased complementing our highly 14% to $917 million and debt regarded network of behav- declined to $689 million. ioral healthcare centers As these figures indicate, throughout the state. 2002 was simply an out- This past year, UHS Letter to Shareholders standing year for Universal expanded into a new fron- Health Services. We tier: Alaska. We have acquired An Added Sense achieved new records in North Star Behavioral Health of Purpose revenues, net income, and Systems, a group of high- Following the turmoil and earnings per share. We are quality psychiatric care facili- tragedy in our nation after extremely pleased that in an ties serving the growing the September 11, 2001, overall bleak economic envi- community of Anchorage. attack, we have had to reori- ronment The Wall Street In addition, four major ent ourselves to a new situ- Journal listed UHS as the projects were begun in ation, becoming both vigi- Top Healthcare provider for 2002. Construction began lant and prepared. We fully the ten-year period of 1992- on Spring Valley Hospital understand that hospitals, 2002. The Wall Street Medical Center in Las Vegas, which might be in the front Journal Shareholder which brings The Valley line, will be asked to do Scoreboard ranks the per- Health System’s hospitals to more. That is one reason formance of 1,000 major four, increasing UHS’s strong 2002 brought a new sense U.S. companies based on position in the nation’s of purpose for UHS’s hospi- total returns to shareholders. fastest-growing major city. tals nationwide. At 29%, UHS’s average We also began construction And while we have con- return was first and more on the Heart Hospital of tinued to fulfill our responsi- than double the industry Northwest Texas in Amarillo, bilities as guardians of pub- group average. We are and the Women’s Center at lic safety, we have remained proud of this accomplish- the Wellington Regional focused on our primary ment because it confirms Medical Center. And we mission of delivering quality the wisdom of our business broke ground on Lakewood healthcare services to growth strategy and the Ranch Medical Center, which patients, and solid returns value of our company’s rep- will add to our network of to our shareholders. utation for integrity. facilities in Manatee County, Florida. 4
  • 8. Another exciting mile- In the Behavioral Health it has died in previous stone in 2002 was the Company, Barry Pipkin was years. Let’s hope the Senate opening of the new George promoted to Regional Vice finally acts to mitigate this Washington University President and Linda crisis that affects every Hospital in Washington, D.C. Berridge is the newest American. This technologically Group Director. At this writing America advanced facility gives UHS And we congratulate John has entered into war in Iraq. a high profile presence in “Skip” Williams, M.D., Ed.D., We fully support those UHS our nation’s capital. We are a member of UHS’s Board of service personnel called to very proud of completing Directors and currently Dean duty to protect our nation. this four-year project on time of The George Washington And we pledge to assist and on budget, resulting in University Medical Center, their families in their the finest hospital to be built who was named Provost of absence and retain their in Washington, D.C. in over the University. jobs until they can safely 25 years. We look forward Fixing a Problem return home. to the many benefits it will bring to patients, the local Our industry continues to be As we enter our 25th community, our University impacted by the rising cost year, we look back with partner and our company. of malpractice insurance. pride at what has been These new facilities will This has been brought accomplished. And we look add 12% to the number of about by excessive non-eco- ahead with excitement to all available beds in our acute nomic awards, forcing many the positive programs now care division. They exempli- highly qualified physicians being planned and put in fy UHS’s ongoing strategy of to alter their practice pat- place to better serve the building or acquiring hospi- terns. Some are leaving the many communities of which tals in areas where popula- field of medicine altogether, our hospitals are an integral tion growth is above the at a time when our nation part. They have come to national average. These urgently needs experienced, rely on UHS to effectively hospitals will soon become competent medical profes- provide hospital services an integral part of the local sionals. This unfortunate when the need arises, and community by consistent trend must be reversed. We we will not fail them. investment in people, servic- believe that placing caps on We are privileged to play es, and facilities. non-economic damages and this role and thank the over implementing objective 30,000 UHS professionals Our Most Important screening panels will help to who make it possible for our Resource: UHS’s People reduce the number of frivo- company to fulfill our unique In December 2002, we were lous lawsuits and excessive corporate mission. happy to welcome Robert L. awards, while ensuring that May God continue to Smith to our company’s injured individuals receive bless America. management. As Vice compensation for important President and Regional continued medical care and Director of Acute Care economic loss. On March Operations, Robert is apply- 13, 2003, the U.S. House of Alan B. Miller ing his expertise to the com- Representatives passed Chairman of the Board pany’s hospitals in Texas, legislation along these lines, President and Chief Oklahoma and Louisiana. and now the legislation Executive Officer moves to the Senate where
  • 9. UNIVERSAL ance. In short, it is a Overcoming microcosm of UHS’s Skepticism, Again. long history of excellence in hospital management. At first, there seemed And it is only one to be more skeptics success story in a year than believers. that saw continued When UHS announced a joint venture with The George Washington University Hospital (GWUH) in 1997, many hospital staff members feared that their new corporate partner would be driven solely by financial interests. That is, they expected UHS to cut corners on facilities, equipment, The George Washington University Hospital is a unique growth for our unique staffing, and the quality facility, befitting its status as a primary hospital for the healthcare company. of medical care. President of the United States, members of Congress, and Community mem- visiting dignitaries. A Perfect Fit bers, too, expressed concerns that one of The GWUH/UHS part- Washington, D.C.’s most nership began in 1997, venerated hospitals when the university’s would see more than leaders realized they 175 years of tradition had reached a turning swept away in the name of profits. But the story of the new GWUH is one of optimism overcoming skepticism, and out- standing quality leading to outstanding perform- 6
  • 10. UNIVERSAL point in their institu- America’s largest hospi- tion’s proud history. tal management com- After struggling for panies,” recalls John F. years with deficits and Williams, Jr., M.D., a 1948-vintage facility, Ed.D., Vice President GWUH reluctantly for Health Affairs and decided that they could Dean, The George no longer operate Washington University. without a source of “And at first, UHS was substantial outside actually considered too funding and hospital small to make our list of management expertise. candidates. The university knew “But after working that this meant giving with some of the larger up some measure of companies,” says Dr. control, but they also Williams, “we came to hoped to structure a appreciate that what really mattered was not the size of the company but its culture. And in that regard, UHS proved to be a perfect fit.” Over the course of the next few months, a partnership agree- ment was forged in which UHS would fund a brand-new hospital building while GWU would retain 20% ownership and full deal that ensured academic privileges. continued operation of their all-important academic programs. “We began by talking with several of 7
  • 11. UNIVERSAL A Challenging Site • The Micropaq telemetry System In 1999, after a long • Inturis Suite process of securing • The Integris approvals, UHS began Biplane construction of the new Neurovascular George Washington Imaging System University Hospital, • The Integris Allura, directly across the street a catheterization from the old facility. lab with three- Guided by Donald dimensional Pyskacek, UHS’s assis- imaging tant vice president in • Neonatal incubators charge of design and • GE Signa Infinity construction, the part- MRI ners selected a six-story design with a curved, A Disturbing Trend glass-enclosed facade. Inside, the new building But before construc- would reflect UHS’s tion of the new facility extensive experience in got underway, a dis- building and managing turbing trend began to modern healthcare facil- emerge. Some of the ities, from its efficient hospital’s finest medical emergency department, professionals were to its advanced surgical leaving GWUH – and suites, to its comfort- taking their patients able patient rooms. with them. The new hospital As part of a team would be outfitted with that is considered the very latest in medical among the finest in technology, including: America, many physi- • The Dilon 6800 cians and nurses wor- gamma camera ried that UHS would • EnSite Cardiac compromise their high Mapping medical standards in • Virtual reality exchange for profits. 8 training centers Despite ongoing
  • 12. UNIVERSAL defections, UHS and University Hospital, GWUH pressed ahead recalls that the hospi- toward a targeted 2002 tal’s chief nursing officer opening date. relayed to him a story As that date moved of a nurse who left closer, word circulated during the construction through the Washington, phase. “But after she D.C. medical communi- saw the facility and ty that the new GWUH equipment,” he says, lived up to all of its “she wrote a letter say- promises – and more. ing, ‘Can I come home?’” And by the time At the same time, the new hospital had 292 new physicians opened, many medical joined the medical staff professionals – and between 1999 and 2002. their patients – had returned. For example, An Institution Dan McLean, CEO and Transformed Managing Director, The George Washington When the new George Washington University Hospital opened its doors on August 23, 2002 – on time and on budget – professionals and patients alike saw an institution transformed. The hospital’s Emergency Department is more than two and one half times larger than before, with more treatment areas, the latest equipment, and increased patient privacy. As a result, 9
  • 13. The Dilon 6800 EnSite Cardiac Mapping Virtual Reality Training Centers Micropaq Telemetry System Inturis Suite 10
  • 14. UNIVERSAL Integris Biplane Neonatal Incubators Integris Biplane Neurovascular Imaging System 11
  • 15. UNIVERSAL In addition, an advanced communica- tions network allows physicians and nurses to view images, EKGs, lab reports, and other patient records using a desktop or laptop PC – or even a Palm Pilot. And on its top floor, GWUH features one of the world’s finest med- ical education facilities, where students can John F. Williams, Jr., emergency visits have M.D., Ed.D. perform exams and already increased by even complex surgical 20 percent. procedures on lifelike In addition, there are simulators. twice as many operat- “The sixth floor is a ing theaters – the small- unique setting,” says est of which would hold Richard Becker, M.D., the largest operating Medical Director and room from the old hos- Assistant Dean for pital. And the hospital’s Medical Affairs, The world-class surgeons George Washington are at last using world- University. “It makes class equipment. Karen Hicks our university more Chief Nurse Executive In the old hospital, attractive to top medical the interventional car- students, who are diac care rooms were critical to the university’s on different floors. In future.” the new one, they are Features like these adjacent to one another, have made GWUH the saving precious seconds pride of the Washington, for patients in crisis. D.C. healthcare com- munity – and a wel- come addition to UHS. 12
  • 16. UNIVERSAL “A Renaissance for GWUH” A transformation of this magnitude did not go unnoticed by the local community. At the grand opening ceremony, local news- paper, radio, and televi- sion news teams were on hand to cover it. And among the many VIP’s in attendance was President Bush’s chief Richard Becker, M.D. of staff Andrew Card, Medical Director who proclaimed the whole atmosphere “This is the Paulita Amigo, is alive with energy. President’s hospital.” Clinical Director, Neuroscience, Orthopedics, and Rehabilitation Physicians feel this is Hospital officials the place to be. And have also conducted they’ve voted with their tours for dozens of feet. Our census is physicians, visiting climbing, and patients dignitaries, Wall Street want to come back analysts, and even here. It’s a real renais- administrators from sance for The George other major Washington University medical centers. Hospital.” But perhaps Paulita Amigo, Clinical the strongest Director, Neuroscience, endorsement Orthopedics, and has come from Rehabilitation, agrees, GWUH’s discern- calling the new facility, ing professional staff. Fred Bailey Security Manager “the dream hospital that “The physicians here we always hoped to have.” are incredibly excited,quot; And Fred Bailey, a Dr. Becker says, “and 13 longtime staff member
  • 17. UNIVERSAL of community leaders and manger of the and staff members is security department, often skeptical. believes that the new For example, a simi- GWUH is, “simply the lar mood of skepticism finest facility of its kind surrounded UHS’s in this city.” acquisition of Northwest Texas A Familiar Pattern Hospital in 1996. It was a challenging and Those who looked close- contentious process, ly at the history of UHS with many in the com- would have known that munity expressing the the fears of an uncaring fear that UHS would “corporate takeover” focus on short-term were unfounded. profits while decreasing Throughout its 25- the quality of care and year history, UHS has restricting service to established a track indigent patients. record for acquiring and Acquired by UHS in 1996, Northwest Texas Hospital has Since that time, how- building hospitals, and become the centerpiece of a multiple-hospital ever, UHS has made then investing in their network serving the Amarillo, Texas region. significant investments improvement and in the facility – and in growth. At the outset, however, the initial reaction on the part 6
  • 18. UNIVERSAL the local market – while Center, Northwest actually increasing the Texas Women’s and level of indigent care. Children’s Center, And today, the hospital Northwest Texas Sports serves as the center- Medicine Center, piece of the Northwest Northwest Wound Care Texas Health System, Center, the Pavilion – a network that also and in 2003, The Heart includes the J.O. Wyatt Hospital of Northwest Community Health Texas. In fact, investing in quality healthcare is what UHS does best. A Strong Commitment to Las Vegas UHS continues to invest significantly in the Las Vegas market, which remains the fastest-growing major metropolitan area in the United States. 7
  • 19. UNIVERSAL and employee satisfaction. In 2002, Summerlin Valley Hospital Hospital Medical Center, Medical Center broke one of six UHS facilities ground on a new proj- in the area, completed ect that will double the a 5,000 sq. ft. operating size of its emergency expansion, adding five department, including a new suites. It also com- 13-bed fast-track unit pleted an equally large that will accommodate endoscopy suite, and walk-ins, urgent care a new OB floor with needs, and industrial 16 postpartum beds. injuries. Desert Springs Northern Nevada Hospital opened a new Medical Center in 126-bed patient tower Sparks, Nevada, broke to meet increasing ground on a major demand. Desert Springs expansion of its emer- Hospital also received gency and radiology the 2001 Corporate departments, as well as Service Excellence its parking area. The Award, presented by Auburn Regional project will more than UHS for outstanding Medical Center Auburn, Washington double the hospital’s improvements in patient
  • 20. UNIVERSAL Summerlin Hospital emergency department, Center, a hospital in Medical Center Las Vegas, Nevada and will allow the Auburn, Washington, installation of new MRI recently completed a and nuclear medicine new tower with 149 equipment. patient beds. In addi- And in 2003, UHS tion, the hospital has plans to complete added new emergency construction of Spring room, OB/GYN, and sur- Valley Hospital in Las gical facilities. Vegas, an entirely new At Doctors Hospital acute care facility that of Laredo, located in will house 176 beds. Laredo, Texas, UHS has begun development of Continued Expansion, Providence Surgical Nationwide Medical Center, a new 38,000 sq. ft. short-stay But Las Vegas is far hospital joint venture, to from our only area of add to the new 180 focus. In 2002, we bed hospital opened in added new facilities, 2001. Careful attention new equipment, and to physician require- new capabilities ments was an impor- throughout the nation- tant factor in this ven- wide UHS network. ture, which will help For example, Auburn UHS increase its com- 17 Regional Medical petitive position in the
  • 21. UNIVERSAL gency department com- Laredo community – pleted its first full year of which is the nation’s operation. This 29,600 second fastest growing, sq. ft. facility features after Las Vegas. state-of-the-art cardiac Aiken Regional monitoring equipment, Medical Centers in two centralized nursing Aiken, South Carolina, stations, and an replaced an aging car- enlarged waiting area. diac catheterization lab Also in Manatee with a new GE Innova- County, we broke 2000 unit that offers the ground on a 120-bed latest in digital cardiac acute care hospital on imaging technology. a 30-acre site in the The new equipment will center of Lakewood help the lab continue its Ranch, Florida. remarkable record of And at Wellington serving nearly twice as Regional Medical many patients as its Center in West Palm nearest competitors. Beach, Florida, UHS At Manatee Memorial opened a new Hospital in Bradenton, Florida, a new emer- 6
  • 22. UNIVERSAL $5 million, 13,000 sq. the finest in their ft. outpatient surgery respective markets. and admitting center. Admittedly, this We also began con- approach to quality struction on the Medical healthcare might seem At Manatee Memorial Hospital in Bradenton, Florida, a recent expansion Arts Pavilion II, a new uncommon in today’s has more than doubled the size of the emergency 50,000 sq. ft. medical healthcare market. But department, while adding state-of-the-art equipment. office building. it is simply business as usual for UHS. A Consistent Strategy Important Developments in UHS continues to Behavioral Healthcare pursue a consistent strategy of operating The year 2002 also hospitals in geographic brought ongoing invest- regions where popula- ments – and ongoing tion growth exceeds growth – for UHS’s the national average, Behavioral Healthcare and then working to Division, which now make those hospitals consists of 38 facilities across the country. 7
  • 23. UNIVERSAL meet the educational needs of the Pavilion Residential Treatment Center’s clients, and also serves day students from area Westwood Lodge Hospital Westwood, Massachusetts school districts. The 20,400 sq. ft. building has a capacity for 110 students, and includes a gymnasium and Linda Berridge cafeteria. For example, Group Director and CEO - Managing Director To accommodate Lakeside Behavioral Two Rivers Psychiatric Hospital increasing demand, Health System in the 200 bed Provo Tennessee began Canyon School in construction of a new Provo, Utah, expanded 100-bed mental health its classroom space hospital building. This and added 30 new $6.5 million project will beds to its fourth floor. Talbott Recovery Campus in Atlanta, Georgia, has added a library and chapel to serve its growing patient population. This nationally known facility specializes in substance abuse treat- Two Rivers Psychiatric Hospital include the construction ment for healthcare Kansas City, Missouri of a new two-story, professionals. 52,000 sq. ft. hospital Finally, the Behavioral Martin C. Schappell Vice President building for adults. Health Division UHS Behavioral Health The Pavilion acquired North Star Foundation in Behavioral Health Champaign, Illinois, Systems in Anchorage, opened the Pavilion Alaska. This network 20 Foundation School, consists of acute care which is designed to beds, as well as the
  • 24. UNIVERSAL North Star Residential services Treatment center, and a provided unit in Palmer, Alaska. It by each marks UHS’s first foray facility. into the state of Alaska. Overall, the A Bright Behavioral Healthcare Future Division reported record revenues and For the The Arbour profits, even as major entire UHS Hospital Boston, competitors continue to network, Massachusetts Roy A. Ettlinger which also includes the Vice President UHS Behavioral Health Ambulatory Surgery and CEO, The Arbour Health System Division, the Radiation Oncology Division, and Médi-Partenaires, our hospital company in France, the year 2002 was one of growth and profitability. experience financial dif- With improving reim- ficulties. This outstand- bursement trends, a ing performance is superb nationwide staff Fuller Memorial Hospital attributable to a stable of dedicated healthcare South Attleboro, Massachusetts management team, a professionals, and a focus on quality care, proven management and an individualized strategy, we look for- approach to patient ward to an even Lakeside Behavioral brighter future. Health System Memphis, Tennessee 21
  • 25. UNIVERSAL Previous recipients include Vaclav Havel, first presi- A Special Honor dent of the Czech Republic; Mikhail Gorbachev, past On May 19, 2002, Alan president of the former B. Miller, President and U.S.S.R; and journalist Chairman of the Board of Walter Cronkite. UHS, along with Kenneth The award was present- P. Moritsugu, MD, Acting ed by John F. Williams, Jr., Surgeon General of the M.D., Ed.D., Vice President United States, received the for Health Affairs and Dean, prestigious President’s The George Washington Medal from The George University, who said, “We Washington University are pleased to be able to School of Medicine and bestow this prestigious Health Sciences (SMHS). honor on Alan Miller for his The President’s Medal philanthropic contribution is a tribute to special to the arts, his leadership guests, family and friends against racism, as well as of the University. And it his outstanding contribu- reflects our company’s tions and humanitarian nationwide commitment to efforts to the country civic leadership in the through healthcare.” communities we serve. The Wall Street Journal listed UHS as the Top Healthcare provider for the ten-year period of 1992-2002. The Wall Street Journal Shareholder Scoreboard ranks the performance of 1,000 major 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 U.S. companies based on total TOP TEN HEALTHCARE PROVIDERS returns to shareholders. 10-Year Average Surplus/Deficit At 29%, UHS’s Healthcare Providers Return (%) Relative to Industry average return was first and more than double Universal Health Services 29.0 15.6 the industry Express Scripts 28.0 14.6 group average. Lincare Holdings 23.6 10.2 Health Management 22.9 9.5 UnitedHealth Group 19.4 6.1 Oxford Health Plans 17.8 4.5 Mid Atlantic Medical 16.8 3.5 First Health Group 12.5 -0.9 Omnicare 12.4 -0.9 HCA 12.2 -1.2 Industry Group Average 13.4 -- 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. 22
  • 26. Directory of Hospitals and Centers A C U T E C A R E H O S P I TA L S Hospital San Francisco Southwest Healthcare System Rio Piedras, Puerto Rico Rancho Springs Campus Aiken Regional Medical Centers 160 beds Murrieta, California Aiken, South Carolina 96 beds 225 beds Hospital San Pablo Bayamon, Puerto Rico Summerlin Hospital Medical Center Auburn Regional Medical Center 430 beds Las Vegas, Nevada Auburn, Washington 190 beds 149 beds Hospital San Pablo del Este Fajardo, Puerto Rico Valley Hospital Medical Center Central Montgomery Medical Center 180 beds Las Vegas, Nevada Lansdale, Pennsylvania 400 beds 150 beds Lancaster Community Hospital Lancaster, California Wellington Regional Medical Center Chalmette Medical Center 117 beds West Palm Beach, Florida Chalmette, Louisiana 120 beds 195 beds Manatee Memorial Hospital Bradenton, Florida Desert Springs Hospital 491 beds B E H AV I O R A L H E A LT H C E N T E R S Las Vegas, Nevada 351 beds McAllen Medical Center and Anchor Hospital McAllen Heart Hospital Atlanta, Georgia Doctors’ Hospital of Laredo McAllen, Texas 74 beds Laredo, Texas 633 beds 180 beds The Arbour Hospital Northern Nevada Medical Center Boston, Massachusetts Doctors’ Hospital of Shreveport Sparks, Nevada 118 beds Shreveport, Louisiana 100 beds 136 beds The BridgeWay Northwest Texas Healthcare System North Little Rock, Arkansas Edinburg Regional Medical Center Amarillo, Texas 70 beds Edinburg, Texas 357 beds 169 beds The Carolina Center for Behavioral Health River Parishes Hospital Greer, South Carolina Fort Duncan Medical Center LaPlace, Louisiana 66 beds Eagle Pass, Texas 106 beds 77 beds Clarion Psychiatric Center St. Mary’s Regional Medical Center Clarion, Pennsylvania The George Washington Enid, Oklahoma 70 beds University Hospital 277 beds Washington, D.C. Community Behavioral Health 371 beds Southwest Healthcare System Memphis, TN Inland Valley Campus 50 beds Wildomar, California 80 beds
  • 27. ^ Hopital Clinique Claude Bernard Del Amo Hospital Pembroke Hospital Metz, France Torrance, California Pembroke, Massachusetts 140 beds 166 beds 107 beds Polyclinique Montréal Fairmount Behavioral Health System Provo Canyon School Carcassonne, France Philadelphia, Pennsylvania Provo, Utah 249 beds 169 beds 211 beds Forest View Hospital Ridge Behavioral Health System Grand Rapids, Michigan Lexington, Kentucky A M B U L AT O R Y S U R G E R Y C E N T E R S 62 beds 110 beds Brownsville Surgicare Brownsville, Texas Fuller Memorial Hospital River Crest Hospital South Attleboro, Massachusetts San Angelo, Texas Eye Surgery Specialists of Puerto Rico 82 beds 80 beds San Turce, Puerto Rico Glen Oaks Hospital River Oaks Hospital Goldring Surgical and Diagnostic Center Greenville, Texas New Orleans, Louisiana Las Vegas, Nevada 54 beds 126 beds Hampton Behavioral Health Center Rockford Center Hope Square Surgery Center Westhampton, New Jersey Newark, Delaware Rancho Mirage, California 100 beds 74 beds Northwest Texas Surgery Center Amarillo, Texas Hartgrove Hospital Roxbury Chicago, Illinois Shippensburg, Pennsylvania Outpatient Surgical Center 119 beds 53 beds of Ponca City Ponca City, Oklahoma The Horsham Clinic St. Louis Behavioral Medicine Institute Ambler, Pennsylvania St. Louis, Missouri Plaza Surgery Center 146 beds Las Vegas, Nevada Talbott Recovery Campus Hospital San Juan Capestrano Atlanta, Georgia St. George Surgical Center Rio Piedras, Puerto Rico St. George, Utah 108 beds Timberlawn Mental Health System Dallas, Texas St. Luke’s SurgiCenter HRI Hospital 124 beds Hammond, Louisiana Brookline, Massachusetts 68 beds Turning Point Care Center Moultrie, Georgia Surgical Arts Surgery Center KeyStone Center 59 beds Reno, Nevada Wallingford, Pennsylvania 114 beds Two Rivers Psychiatric Hospital Surgery Center of Littleton Kansas City, Missouri Littleton, Colorado La Amistad Behavioral Health Services 80 beds Surgery Center of Midwest City Maitland, Florida Midwest City, Oklahoma 56 beds Westwood Lodge Hospital Westwood, Massachusetts Lakeside Behavioral Health System 126 beds Surgical Center of New Albany New Albany, Indiana Memphis, Tennessee 204 beds Surgery Center of Springfield MÉDI-PARTENAIRES (Paris/Bordeaux) Springfield, Missouri Laurel Heights Hospital Clinique Ambroise Paré Atlanta, Georgia Toulouse, France 107 beds 204 beds R A D I AT I O N O N C O L O G Y C E N T E R S The Meadows Psychiatric Center Clinique Richelieu Centre Hall, Pennsylvania Auburn Regional Center for Cancer Care Saintes, France 101 beds Auburn, Washington 82 beds Meridell Achievement Center Bluegrass Cancer Center Clinique Bercy Austin, Texas Frankfort, Kentucky Charenton le Pont, France 114 beds 100 beds Cancer Institute of Nevada Midwest Center for Youth and Families Las Vegas, Nevada Clinique Villette Kouts, Indiana Dunkerque, France 50 beds Danville Radiation Therapy 123 beds Danville, Kentucky North Star Hospital Clinique Pasteur Anchorage, Alaska Louisville Radiation Oncology Bergerac, France 74 beds Center 72 beds Louisville, Kentucky North Star Residential Treatment Center Clinique Bon Secours Anchorage, Alaska Madison Radiation Therapy Le Puy en Velay, France 25 beds Madison, Indiana 101 beds Palmer Residential Treatment Center Southern Indiana Radiation Therapy Clinique Aressy Palmer, Alaska Jeffersonville, Indiana Aressy, France 9 beds 179 beds Parkwood Behavioral Health System SPECIALIZED WOMEN’S Clinique Saint-Augustin Olive Branch, Mississippi H E A LT H C E N T E R Bordeaux, France 106 beds 159 beds Renaissance Women’s Center of Edmond The Pavilion Edmond, Oklahoma Clinique Saint-Jean Champaign, Illinois Montpellier, France 46 beds 118 beds Peachford Behavioral Health System of Atlanta Atlanta, Georgia 184 beds
  • 28. UNIVERSAL 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 Alan B. Miller Robert H. Hotz 3, 4 1, 3, 4, 5 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 the Juvenile Of Counsel, Fulbright & Jaworski, L.L.P. Diabetes Foundation New York, NY John H. Herrell 1, 2 John F. Williams, Jr., M.D., Ed.D. 2, 5 Former Chief Administrative Officer Provost,Vice President for Health and Member, Board of Trustees, Affairs and Dean, The George Mayo Foundation; Rochester, MN Washington University 74 Committees of the Board: Audit Committee, Compensation Committee, 1 2 Executive Committee, Finance Committee, Nominating/Corporate Governance 3 4 5
  • 29. Officers CORPORATE DIVISION Alan B. Miller Behavioral Health (continued) Acute Care President and Chief Executive Officer O. Edwin French Linda Berridge O. Edwin French President—Acute Care Group Director—Behavioral Health Senior Vice President Michael Marquez Craig L. Nuckles Steve G. Filton Vice President—Acute Care Group Director—Behavioral Health Vice President and Chief Robert L. Smith Financial Officer Ambulatory Vice President—Acute Care Richard C. Wright Michael Urbach Milton L. Cruz Vice President Senior Vice President—Ambulatory Group Director and Director of Surgery Centers Debra K. Osteen Development—Caribbean Operations Vice President Robert W. Danforth Médi-Partenaires (Paris/Bordeaux) Bruce R. Gilbert Vice President—Universal Health General Counsel Frédéric Dubois Network Président Directeur Général Eileen D. Bove Behavioral Health Assistant Vice President Sylvie Péquignot Directeur Général Debra K. Osteen Charles F. Boyle President—Behavioral Health Assistant Vice President Roy A. Ettlinger Joyce M. Lunney Vice President—Behavioral Health Assistant Vice President Ronald M. Fincher Donald J. Pyskacek Vice President—Behavioral Health Assistant Vice President Barry L. Pipkin Cheryl K. Ramagano Vice President—Behavioral Health Assistant Treasurer Martin C. Schappell Linda L. E. Reino Vice President—Behavioral Health Assistant Vice President Corporate Information EXECUTIVE OFFICES ANNUAL MEETING INTERNET ADDRESS Universal Corporate Center May 21, 2003 10:00 a.m. The company can be accessed P.O. Box 61558 Universal Corporate Center on the World Wide Web at: 367 South Gulph Road 367 South Gulph Road http://www.uhsinc.com King of Prussia, PA 19406 King of Prussia, PA 19406 LISTING (610) 768-3300 COMPANY COUNSEL Class B Common Stock:New York Management Subsidiary Fulbright & Jaworski, L.L.P. Stock Exchange under the symbol UHS. UHS of Delaware, Inc. New York, New York PUBLICATIONS REGIONAL OFFICES AUDITORS For copies of the company’s annual Development KPMG, LLP report, Form 10-K, Form 10-Q, West William Cannon Drive Philadelphia, Pennsylvania quarterly reports, and proxy Bldg. One, Suite 150 statements, please call 1-800-874-5819, Austin, Texas 78735 TRANSFER AGENT AND or write Investor Relations, Universal Designed by Dakota Design, Inc., Malvern, PA (512) 330-9858 REGISTRAR Health Services, Inc., Western Region Universal Corporate Center, Mellon Investor Services 1635 Village Center Circle P.O. Box 61558, 367 South Gulph Road, 85 Challenger Road Suite 200 King of Prussia, PA 19406 Overpeck Centre Las Vegas, NV 89134 Ridgefield Park, NJ 07660. FINANCIAL COMMUNITY (702) 360-9040 Telephone: 1-800-526-0801 INQUIRIES www.melloninvestor.com Universal Health Network The Company welcomes inquiries 639 Isbell Road Please contact Mellon Investor from members of the financial Suite 400 Services for prompt assistance on community seeking information on Reno, NV 89509 address changes, lost certificates, the Company. These should be (775) 356-1159 consolidation of duplicate directed to Steve Filton, Chief accounts or related matters. Financial Officer.
  • 30. Universal Health Services, Inc. Universal Corporate Center P.O. Box 61558 367 South Gulph Road King of Prussia, PA 19406

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