UHS: Annual Report

HOSPITAL "CONVERSIONS": A POWERFUL TREND.

UHS's corporate headquarters, King of Prussia, Pennsylvania.

As demonstrated by its recent acquisitions of Northwest Texas Hospital, McAllen Medical Center, Edinburg Hospital, and Manatee Memorial Hospital, and several behavioral health facilities, UHS is at the leading edge of a healthcare industry trend referred to as "conversion."

Community hospitals nationwide have discovered that it is increasingly difficult to keep pace with rising costs and declining reimbursement levels. As a result, many are faced with the difficult choice of either raising taxes or selling their hospitals to private companies.

At the same time, hospital management companies such as UHS are strongly motivated to acquire community hospitals with established patient populations and strong market positions. Then, they work to develop integrated care systems that combine primary, specialty, and hospital services.

The economics of this trend remain strong for both sides. However, as the UHS experience in Amarillo clearly shows, the future belongs to those who can demonstrate that they deserve to become stewards of one of the most important assets in any community: the local hospital.

One year after its acquisition of Northwest Texas Hospital, UHS continues to live up to its promises, serving the Amarillo community through superior medical care and good corporate citizenship. Just as we have done in communities nationwide.

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