Consolidated Statements of Income

Year Ended December 31, Universal Health Services, Inc. and Subsidiaries

	(In thousands, except per share data)
	1999	1998	1997
Net revenues	$2,042,380	$1,874,487	$1,442,677

Operating charges
Operating expenses	828,752	752,651	574,837
Salaries and wages	728,921	671,140	514,407
Provision for doubtful accounts	166,139	139,526	108,790
Depreciation & amortization	108,333	105,442	80,686
Lease and rental expense	49,029	46,516	38,401
Interest expense, net	26,872	27,117	19,382
Nonrecurring charges	5,300	-	-
Total operating charges	1,913,346	1,742,392	1,336,503

Income before minority interests and income taxes	129,034	132,095	106,174
Minority interests in earnings of consolidated entities	6,251	9,083	251
Income before income taxes	122,783	123,012	105,923
Provision for income taxes	45,008	43,454	38,647
Net income	$77,775	$79,558	$67,276

Earnings per common share - basic	$2.48	$2.45	$2.08

Earnings per common & common share equivalents - diluted	$2.43	$2.39	$2.03

Weighted average number of common shares - basic	31,417	32,511	32,321
Weighted average number of common share equivalents	573	782	777
Weighted average number of common shares and equivalents - diluted	31,990	33,293	33,098
The accompanying notes are an integral part of these consolidated financial statements.