our patients always come first

162 Pages·2017·9.35 MB·English

UNIVERSAL HEALTH SERVICES, INC.
OUR PATIENTS ALWAYS COME FIRST
2017 ANNUAL REPORT
Universal Health Services, Inc. (UHS)
At UHS, superior quality patient care is our top priority. Our continued growth
and development are testament to the positive impact we have on the patients and
communities we are privileged to serve.
Hospitals and affiliated healthcare facilities continue to be key focal points of the
healthcare delivery system. We focus on strategic growth through expansions, de novo
builds, acquisitions and joint venture partnerships.
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.
2017 Highlights
2.6
ACUTE CARE BEHAVIORAL
HEALTH
300,000
MILLION patient admissions 468,000
inpatients served
TOTAL PATIENTS
SERVED 1.3 million
patient days 6.4 million
patient days
558 1.2 million
$
outpatient visits 24 facilities
offering Patriot
Support Programs
MILLION 33,435 births
INVESTMENT IN
465 inpatient beds
EQUIPMENT, FACILITY 5 Accountable
added to existing
Care Organizations
EXPANSIONS AND
facilities
(ACOs)
RENOVATIONS
FINANCIAL HIGHLIGHTS
Percentage
Year Ended December 31 2017 2016 Increase 2015
Net revenues $10,409,865,000 $9,766,210,000 7% $9,043,451,000
Adjusted net income
attributable to UHS (1) $725,459,000 $720,239,000 1% $692,047,000
Adjusted diluted earnings per share
attributable to UHS (1) $7.53 $7.32 3% $6.87
Percentage
Year Ended December 31 2017 2016 Increase 2015
Patient days 7,694,021 7,255,577 6% 7,054,125
Admissions 765,212 730,126 5% 708,734
Average number of licensed beds 29,278 27,763 5% 27,034
2017 2016 2015 2014
(1) Calculation of Adjusted Net
Per Per Per Per
Income Attributable to UHS Amount Diluted Share Amount Diluted Share Amount Diluted Share Amount Diluted Share
(in thousands except per share amounts)
Net income attributable to UHS $752,303 $7.81 $702,409 $7.14 $680,528 $6.76 $545,343 $5.42
Other combined adjustments (26,844) (0.28) 17,830 0.18 11,519 0.11 36,410 0.36
Adjusted net income attributable to UHS $725,459 $7.53 $720,239 $7.32 $692,047 $6.87 $581,753 $5.78
The “Other combined adjustments” neutralize the effect of items in each year that are nonrecurring or non-operational in nature including items such as: the cost incurred and
incentive income recorded in connection with the implementation of electronic health records applications; adjustments to our reserves relating to prior years for self-insured
professional & general liability and workers’ compensation claims; gains and losses on sales of assets and businesses; reserves for settlements and legal judgments, and; other
amounts that may be reflected in a given year that relate to prior years. Since “adjusted net income attributable to UHS” is not computed in accordance with generally accepted
accounting principles (“GAAP”), investors are encouraged to use GAAP measures when evaluating our financial performance. To obtain a complete understanding of our financial
performance the information provided above should be examined in connection with our consolidated financial statements and notes thereto, as contained in this report.
Net revenues Adjusted net income per Hospital patient days
(in millions) diluted share attributable (in thousands)
to UHS (1)
0
41 4
43 $9,766 $10, 7 $7.32 $7.53 54 7,256 7,69
0 8 0
05 $9, $6. 686 7,
8,2 6,
$ 8
7
5.
$
14 15 16 17 14 15 16 17 14 15 16 17
2017 ANNUAL REPORT 3
LETTER TO OUR SHAREHOLDERS
2017 marked another year of solid performance.
In spite of volatile market conditions, we remained
steadfast, made prudent investments and delivered the
kind of care our patients need and expect of us, each
and every day – across all the markets we serve.
For nearly 40 years, Universal Health Services (NYSE: UHS)
has been recognized as a leader in the healthcare management
industry. National, state and local organizations continue to
honor UHS employees and facilities for achieving high outcome
clinical measures and quality metrics, and for our commitment
to community service.
I am proud that UHS has again been recognized UHS personnel and facilities also supported areas
as one of the ‘World’s Most Admired Companies’ impacted by national disasters during a record
by Fortune magazine, that we rank #276 on hurricane season with major storms hitting Texas,
the Fortune 500 list, and that UHS made Forbes’ Florida, Puerto Rico, and other islands in the Gulf
inaugural list of America’s Top 500 Public of Mexico. Once again, members of the UHS team
Companies. Our consistent recognition is testament met the challenge of providing care and saving
to the tremendous work done every day by our lives in very challenging environments.
83,000 employees and their commitment to
exceptional patient care – treating the mental BEHAVIORAL HEALTH DIVISION –
MORE CARE FOR MORE PATIENTS
and physical health of our patients.
Today, we operate nearly 300 behavioral health
With a strong portfolio focusing on physical
facilities in 37 states, the District of Columbia,
health, mental health, an insurance offering, a
Puerto Rico, the U.S. Virgin Islands and the
physician network, and various related service
United Kingdom.
offerings – and a partnership strategy that aligns
us with other leaders in our markets – we are During the past year, the Behavioral Health
well-poised for continued growth. Division continued to expand the delivery of care
nationally and internationally – providing more
2017 – SERVING PATIENTS IN THE services to more patients. The cornerstone of our
AFTERMATH OF VIOLENCE
growth is our ability to identify and execute on
UHS was in a unique position to respond to the strategic opportunities.
critical needs of the communities we serve across
In the U.K., we received a favorable regulatory
the nation. In June, the George Washington
decision from the Competition and Markets
University Hospital delivered aid in the aftermath
Authority review of the Cambian Adult Services
of the ambush at the congressional baseball
acquisition. We immediately initiated the process
practice. In early October, our healthcare
of fully integrating the newly acquired facilities
professionals at the six Las Vegas area UHS
under Cygnet Health Care, hereby becoming one
hospitals provided life-saving care to those injured
of the largest providers in the U.K. With a total of
during the worst mass shooting in U.S. history.
108 facilities, including a brand new 56-bed facility
We responded heroically in treating and caring
in Coventry, we offer a full spectrum of behavioral
for a total of 232 patients who arrived in our
health services and capabilities.
emergency departments.
4 UNIVERSAL HEALTH SERVICES, INC.
In the U.S., the Behavioral Health Division We increased the accessibility and expanded
added 471 inpatient psychiatric beds via the delivery of emergency care services in a
expansions, acquisition and new construction in number of our markets with a turnkey design and
2017. Looking ahead to 2018, we are particularly construction model for Freestanding Emergency
proud of the joint venture partnerships with the Departments, which are separate entities yet
University of Pennsylvania and with Providence strategically affiliated with our nearby full-
Health, for which new hospitals are currently service hospitals.
under construction in Lancaster, Pennsylvania,
and Spokane, Washington, respectively. POISED FOR CONTINUED SUCCESS
UHS’ leadership team and I are confident that
Lastly, UHS proudly demonstrates its commitment
the company is well-positioned to continue to
to members of the military and their families
deliver superior quality patient care, attract and
through its Patriot Support Program, which
retain talented healthcare professionals as an
treated 6,500 individuals in 2017. We are very
employer of choice and contribute meaningfully
proud to offer this Program as a national network
to our local communities.
of now 24 behavioral treatment centers across
13 states dedicated to treating active military,
By focusing on our core strategies and initiatives,
veterans and their families to help them cope
remaining adaptable and meeting the needs of
with the emotional and psychological effects of
our constituents, we look forward to continued
combat and related triggers. They deserve all
success in 2018 and in the future.
that our professionals can offer.
Sincerely,
ACUTE CARE DIVISION –
GROWTH AND EXPANSIONS
Our Acute Care results are strong – and our
trajectory is healthy. Of particular note, we led
the industry in our admissions growth, meaning
that more patients and more physicians are
Alan B. Miller
choosing UHS hospitals.
Chairman of the Board
2017 saw expansions in a number of our facilities Chief Executive Officer
and the growth continues. For example, since
the opening of Temecula Valley Hospital in
October of 2013 the growth in patient volume has
been remarkable. As a result, the hospital is now
in the midst of a $40 million expansion project to
include additional operating rooms, cath labs, and
additional radiological imaging systems that will
allow the hospital to continue to meet the growing
demand in the community. This project is expected
to be completed and operational by Q3, 2018.
And in Southern California at Corona Regional
Medical Center, we are investing $38 million to add
15,000 square feet of space, a total of 30 new
treatment beds.
2017 ANNUAL REPORT 5
AK
UNIVERSAL
HEALTH SERVICES, INC. WA
MT
350+ ACUTE CARE HOSPITALS
AMBULATORY CENTERS OR
BEHAVIORAL HEALTH
FACILITIES
FREESTANDING EMERGENCY ID
FACILITIES DEPARTMENTS
URGENT CARE CENTERS
WY
37 STATES
NV
PLUS WASHINGTON, D.C., UNITED KINGDOM,
PUERTO RICO AND U.S. VIRGIN ISLANDS
UT
CO
83,000+
CA
EMPLOYEES
For a full state-by-state list of AZ
NM
facilities, please visit our website:
www.uhsinc.com
UHS is a registered trademark of UHS of Delaware, Inc., the management company for Universal Health
Services, Inc. and a wholly owned subsidiary of Universal Health Services. Universal Health Services, Inc.
is a holding company and operates through its subsidiaries including its management company, UHS of
Delaware, Inc. All healthcare and management operations are conducted by subsidiaries of Universal Health
Services, Inc. Any reference to “UHS or UHS facilities” including any statements, articles or other publications
contained herein which relates to healthcare or management operations is referring to Universal Health
Services’ subsidiaries including UHS of Delaware. Further, the terms “we,” “us,” “our” or “the company” in
such context similarly refer to the operations of Universal Health Services’ subsidiaries including UHS of
Delaware. Any reference to employment at UHS or employees of UHS refers to employment with one of the
subsidiaries of Universal Health Services, Inc., including its management company, UHS of Delaware, Inc.
“UHS Facilities” refers to subsidiaries of Universal Health Services, Inc.
6 UNIVERSAL HEALTH SERVICES, INC.
Acute Care Hospitals
Ambulatory Centers
Behavioral Health Facilities
Freestanding Emergency Departments
Universal Health Services, Inc.
Corporate Headquarters
ME
ND
UNITED
MN VT NH KINGDOM
WI
SD NY MA
MI
CT RI
PA
IA
NE
NJ
IN OH MD
IL DE
WV VA
KS DC INDEX
MO
KY
Acute Care Division
TN NC
8-15
OK
AR
SC Behavioral Health
Division
MS GA 16-23
AL
Form 10K
10K: 1-129
TX LA
Directory of Facilities
10K: 25-33
Corporate Information/
FL
Officers and Senior
Management
130
Board of Directors
PUERTO RICO
U.S. VIRGIN ISLANDS
2017 ANNUAL REPORT 7
UHS ACUTE CARE DIVISION
Vegas Strong: On October 1, The Valley Health System team responded to the deadliest mass
shooting in the country. A majority of the injured were taken to The Valley Health System
emergency rooms and staff rallied to assist in our hospitals and at the shooting location.
8 UNIVERSAL HEALTH SERVICES, INC.
UHS ACUTE CARE
DIVISION
We make patients our first priority
and deliver superior care; we exceed
expectations, improve the patient
experience and save lives.
THE POWER OF UHS PEOPLE
Every day we experience the power and commitment of
our team … our nurses, physicians, clinicians, staff and volunteers.
These are the heroes who serve patients, assisting them on
their care journey and ultimately helping them lead better,
healthier lives.
In 2017, the U.S. experienced several tragic events including
natural disasters such as the devastating weather events
and large-scale violence in Washington, D.C. and Las Vegas
that killed and injured many people. Through it all, our employees
met the challenge, as they always do. Tragic events like these
bring out the character of people and organizations. Our UHS
team stepped up, demonstrating what it means to make
healthcare personal.
In Las Vegas, our team cared for 232 victims – and we are
pleased to report that every patient who came to one of our six
Las Vegas hospitals alive, stayed alive thanks to the dedication,
skill and quick response by our clinical teams and staff.
In Florida, our teams managed through the hurricanes and
provided support to others in need. During the storms, our
staff maintained operations, ensuring safety and continuity of
patient care amid very challenging circumstances.
2017 ANNUAL REPORT 9
UHS ACUTE CARE DIVISION
Matt Mika with,
from left, Dr. Libby
Schroeder, his trauma
surgeon; Kristi Boswell,
his girlfriend; and
Ashley Speights
O’Neill, his physical
therapist, at the George
Washington University
Hospital’s annual
Trauma Survivors Day
in November.
Photo credit: Justin
Gilliland for The New
York Times
PATIENT-CENTERED SUPERIOR Our Ambulatory centers offer same-day
CARE AND SERVICE EXCELLENCE: medical procedures in an outpatient setting.
INTEGRATED DELIVERY NETWORK
Our Independence Physician Management
IN KEY MARKETS
team works every day to enhance physician
The Acute Care Division operates 26 hospitals relationships that lead to improved
across the U.S., providing superior care to outcomes.
two million patients annually. With portfolio
In addition, we have key behavioral health
expansion and partnerships, we are becoming
facilities that offer a full range of treatment
much more than a hospital provider but rather
and care services that address the mental
an integrated delivery network.
health needs of the community.
An example is our integrated delivery
Prominence Health Plan serves over
system serving communities in the Las
40,000 members, providing fully insured
Vegas region. We have six acute care
and self-funded commercial insurance, plus
facilities that deliver superior care and
Medicare Advantage coverage. We also have
outcomes. Of note, in 2017, our newest
our CentRX Pharmacy locations providing
facility – Henderson Hospital – completed
bedside delivery of medication and services
its first full year of operation. Further, our
to patients.
Freestanding Emergency Departments
(also known as FEDs) provide additional,
conveniently located access points for
people when they require immediate
medical attention.
10 UNIVERSAL HEALTH SERVICES, INC.