352915--2/28/2007--UNIVERSAL_HEALTH_SERVICES

related topics

{regulation, government, change}

{cost, contract, operation}

{personnel, key, retain}

{acquisition, growth, future}

{regulation, change, law}

{gas, price, oil}

{stock, price, operating}

{financial, litigation, operation}

{operation, natural, condition}

A significant portion of our revenues is produced by a small number of our facilities, which are concentrated in Texas and Nevada. Our revenues and results of operations are significantly affected by payments received from the government and other third party payors. An increase in uninsured and underinsured patients in our acute care facilities or the deterioration in the collectibility of the accounts of such patients could harm our results of operations. We cannot be certain of the availability and terms of capital to fund the growth of our business when needed. Fluctuations in our operating results quarter to quarter earning and other factors may result in decreases in the price of our common stock. Our hospitals face competition for patients from other hospitals and health care providers. Our performance depends on our ability to recruit and retain quality physicians. Our performance depends on our ability to attract and retain qualified nurses and medical support staff and we face competition for staffing that may increase our labor costs and harm our results of operations. We depend heavily on key management personnel and the departure of one or more of our key executives or a significant portion of our local hospital management personnel could harm our business. We may be subject to liabilities from claims brought against our facilities and governmental investigations. Our growth strategy depends on acquisitions, and we may not be able to continue to acquire hospitals that meet our target criteria. We may also have difficulties acquiring hospitals from not-for-profit entities due to regulatory scrutiny. We may fail to improve or integrate the operations of the hospitals we acquire, which could harm our results of operations and adversely affect our growth strategy. If we acquire hospitals with unknown or contingent liabilities, we could become liable for material obligations. State efforts to regulate the construction or expansion of health care facilities could impair our ability to expand. If we fail to comply with extensive laws and government regulations, we could suffer civil or criminal penalties or be required to make significant changes to our operations that could reduce our revenue and profitability. We are subject to uncertainties regarding health care reform. If the number of patients treated by our subsidiary hospitals in accordance with applicable law and each hospital s indigent and charity care guidelines increase, our results of operations may be harmed. Controls designed to reduce inpatient services may reduce our revenues. We are subject to significant corporate regulation as a public company and failure to comply with all applicable regulations could subject us to liability or negatively affect our stock price. Different interpretations of accounting principles could have a material adverse effect on our results of operations or financial condition. We continue to see rising costs in construction materials and labor. Such increased costs could have an adverse affect on the cash flow return on investment relating to our capital projects.

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352915--2/28/2007--UNIVERSAL_HEALTH_SERVICES_INC