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    Transformative Leadership in an Unprecedented Year CO M PA N Y OV E RV I E W UNIVERSAL HEALTH SERVICES, INC.


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    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 serve. Our Mission Statement OUR MISSION has been repeatedly Established by Alan B. Miller in 1979 praised by industry To provide superior quality healthcare experts for being honest services that: and authentic, and for Patients recommend to family and friends, identifying value offered Physicians prefer for their patients, to all key stakeholders Purchasers select for their clients, from our patients Employees are proud of, and and employees to Investors seek for long-term returns. our investors. Photo Credit: During COVID-19, Tim Tadder Photography captured the compelling images presented on the front cover and throughout the Annual Report. The photographs feature our dedicated front-line healthcare heroes who care for patients at Southwest Healthcare System, located in Wildomar and Murrieta, California. 2


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    A LETTER FROM OUR SENIOR EXECUTIVES While 2020 brought unprecedented challenges, we are proud to lead an organization that is so deeply rooted in our purpose, so focused on delivering high quality patient care in all of the markets we serve. From the start, We celebrated 2020 as the Year of the Nurse, the COVID-19 recognizing the vital role Nurses play in providing pandemic required healthcare services, devoting their professional lives to us to quickly activate caring for families in our communities. We thank each our Crisis Response and every one of these dedicated caregivers across infrastructure; the UHS enterprise. Heroes, truly. implement protocols We are proud of the reputation we have earned as consistent with new a leader in the healthcare industry. For the eleventh (and changing) federal, state and local guidelines; consecutive year, UHS was recognized among ‘World’s source supplies in quantity and in many cases through Most Admired Companies’ by Fortune magazine. We new channels; manage staffing challenges; and all are currently ranked #281 on the Fortune 500 list, and the while continue to diagnose and treat patients our employees and facilities continue to be honored accurately, efficiently and compassionately. The by national, state and local organizations for delivering UHS team demonstrated tremendous agility and high quality care, for pioneering innovation and for determination – remaining focused, resilient and their commitment to serving their local communities. committed to delivering critical care through an evolving environment. Looking ahead, we believe that certain trends They are #HealthcareHeroes, repeatedly praised accelerated in response to the pandemic are here to for saving and improving lives – it’s what they are stay. For example, Telehealth will further expand and trained to do and why they chose the profession – adoption will continue to increase. During COVID-19, although never before put to the test as they one of the silver linings was how quickly we (and have been this year. And never before have they others in the Healthcare industry) scaled Telehealth shone so brightly. offerings. We believe the trajectory of this channel will continue, as many patients find value in accessing care In 2020, we delivered care to three million patients faster and via the convenience of their mobile devices. across inpatient and outpatient access points. UHS While Telehealth will never replace in-person care when generated net revenues of approximately $11.6 billion, indicated, earlier identification of health conditions an increase of 1.6% over 2019. will accelerate referrals to specialists and hospitals. In our Acute Care business, we completed a number We also believe that the demand for behavioral of expansions including adding a new patient tower health services will increase substantially as the at Centennial Hills Hospital in Las Vegas; opened three nation continues to combat – and emerge from – the new Freestanding Emergency Departments (FEDs); pandemic. Multiple sources reference the toll it is and continued construction of Northern Nevada Sierra taking on individuals of all ages and demographics; Medical Center, the first full-service hospital to be through our network and with our resources, we play built in Reno in nearly a century, on-target to open a significant role in providing hope and healing. in 2022. We announced a partnership with BAYADA, enabling us to offer home health services through a In September, we announced the CEO transition, joint-venture structure in priority markets, leveraging consistent with our long-standing succession plan. BAYADA’s expertise, reputation and aligned values. Effective January 1, 2021, Marc assumed responsibilities as CEO and President, with Alan remaining Executive In our Behavioral Health business, we opened Chairman of the Board. Canyon Creek Behavioral Health in Temple, Texas and are currently constructing another six de novo Thank you for your continuing interest and support facilities, most of which are joint venture partnerships of UHS. with esteemed health systems well established in their respective markets, with currently unmet demand Sincerely, for behavioral health services. Through our Patriot Support Programs and across our network we cared for and treated over 16,000 members of the armed forces, veterans and family members. We continue Alan B. Miller Marc D. Miller to lead the industry in outcomes measurement, Founder and Chief Executive Officer this year adding Net Promoter Score (NPS) to Executive Chairman and President our metrics. 3


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    A Vision That Changed Healthcare. Alan B. Miller A Legacy That’s Changing Lives. 1954 Attended William & Mary on a Basketball Scholarship At graduation from William & Mary, commissioned in the U.S. Army. 1958 Later, retired as Captain, 77th Infantry Division 1960 Earned MBA from the Wharton School of the University of Pennsylvania 1979 Founded Universal Health Services 1981 Held UHS’ initial public offering (IPO) Founded Universal Health Realty Income Trust (NYSE: UHT), first REIT in the 1986 healthcare industry. Has served as, and remains today, Chairman of the Board and CEO First named “CEO of the Year For the Health Service Industry” by Financial 1987 World magazine Moved UHS stock trading from NASDAQ to NYSE; named Master Entrepreneur 1991 of the Year by Ernst & Young and Merrill Lynch Awarded Honorary Doctorate from University of South Carolina, and awarded 1992 the Ellis Island Medal of Honor in recognition of “exceptional humanitarian efforts and outstanding contributions to the country” through healthcare Received the first Lifetime Achievement Award from the Federation of American 1999 Hospitals; received the William & Mary Medallion, the highest award presented to alumni Awarded the George Washington University President’s Medal; received 2002 Chairman’s Award from the United Negro College Fund First named to Modern Healthcare magazine’s “100 Most Influential People in 2003 Healthcare” – to be continued for 17 consecutive years; UHS named to Fortune 500 list for the first time – and every consecutive year since 4


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    2009 Authored “Health Reform that Makes Sense”, Sterling & Ross Publishers Funded the Alan B. Miller Hall – home of the William & Mary Business School, 2010 which also includes the Alan B. Miller Entrepreneurship Center; bestowed the Horatio Alger Award 2012 Alan B. Miller Pavilion at Wellington Regional Medical Center opened Awarded the Innovator Award, Healthcare CEO of the Year by Philadelphia 2014 Business Journal; awarded Honorary Degree of Doctor of Public Service from William & Mary; UHS added to S&P 500 Index Named among The Wall Street Journal’s “America’s Longest-Serving CEOs”; 2015 named among CR Magazine’s 2015 Responsible CEOs of the Year Featured, together with Marc D. Miller, as cover-story “Transforming the 2017 Delivery of Healthcare,” in BOSS Magazine Presented the Distinguished Citizen Award from the Freedoms Foundation of Valley Forge for his commitment to healthcare, serving others, and his civic leadership; named to the Forbes “America’s Most Innovative Leaders” ranking (#95); named among Philadelphia Business Journal’s 2019 “Most Admired CEOs”; named to the Fox Business list of 10 military veterans who became 2019 CEOs of Fortune 500 companies; received the Distinguished Civilian Award from the Ben Franklin Global Forum in recognition of his leadership and accomplishments in providing behavioral healthcare to active duty military, veterans and their families; funded the new Jill & Alan B. Miller Tower at the Philadelphia Ronald McDonald House Named to the list of longest serving CEOs globally in the S&P 500 by International 2020 Business Times; and named 2nd on the list of longest tenured Fortune 500 CEOs, the first being Warren Buffett UHS ranked for the 11th consecutive year among “World’s Most Admired Companies” by Fortune magazine; transitioned CEO title and responsibilities 2021 to Marc D. Miller, per the company’s long-standing succession plan; serves as Executive Chairman of the Board of UHS


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    One goal, together. While the COVID-19 pandemic continues to impact the nation and world, our amazing care providers have risen to the challenge of improving lives every day. Quality care is our passion, and our care providers’ relentless pursuit of high-quality, safe patient care, delivered with compassion and respect, marks them as #HealthcareHeroes. 2020 HIGHLIGHTS 3.0 89,000 EMPLOYEES, GLOBALLY MILLION PATIENTS SERVED 21,200 NURSES 1,500+ PROVIDERS OF PHYSICIAN SERVICES $731 MILLION ACUTE CARE 287,000 inpatient admissions BEHAVIORAL HEALTH 700,000 total patients served 1.5 million INVESTMENT IN patient days 6.1 million EQUIPMENT, FACILITY patient days EXPANSIONS AND RENOVATIONS 1.0 million outpatient visits 25 facilities (excluding ER) offering Patriot 26 Support Programs 31,600 births 7 Accountable 340 inpatient beds Care Organizations added in new and JOINT VENTURE PARTNERSHIPS (ACOs) existing facilities


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    AK UNITED KINGDOM WA MT ND ME OR MN VT NH ID SD WI NY MA MI CT RI WY IA PA NE NJ NV OH MD IN DE UT IL CO WV VA DC CA KS MO KY TN NC AZ OK AR NM SC MS GA AL TX LA HI FL PUERTO RICO Acute Care Hospitals Ambulatory Centers UHS is a registered trademark of UHS of Delaware, Inc., the management company for Universal Health Services, Behavioral Health Facilities Inc. and a wholly owned subsidiary of Universal Health Services. Universal Health Services, Inc. is a holding Freestanding Emergency Departments company and operates through its subsidiaries including its management company, UHS of Delaware, Inc. All Universal Health Services, Inc. healthcare and management operations are conducted Corporate Headquarters 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 To explore our facilities using an interactive is referring to Universal Health Services’ subsidiaries including UHS of Delaware. Further, the terms “we,” “us,” map feature, please visit www.uhsinc.com “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. 7


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    UHS ACUTE CARE DIVISION We deliver superior quality care, serving as the preferred provider in key markets. 2020 was a year like no other with the Our focus on delivering clinical excellence to onset of the global COVID-19 pandemic. our communities differentiates us in market, Despite the challenges brought about by and resulted in continued growth. the pandemic, the Acute Care Division Health remains a top priority for the patients experienced solid performance and we serve. It is our top priority too. The expansion across the U.S. We delivered pandemic tested our resilience, but our highly high-quality care to more than two million skilled team of clinicians and hospital staff patients, achieved Quality awards for remained steadfast in providing an excellent excellence and distinction from industry patient experience. While the pandemic accrediting organizations, and continued continues in 2021, we believe the rollout of to drive our growth strategy. new vaccines is an important milestone. 9


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    UHS ACUTE CARE DIVISION COVID-19 SURVIVORS: Our Patients are Living Proof Francis Wilson The George Washington University Hospital Francis Wilson, 29, of Virginia, was taking precautions as the potentially deadly virus spread. He didn’t think he was at risk. But, he got so sick that he was placed into a medically induced coma and on a respirator for several days in a hospital in Virginia. When his condition did not improve, he was transferred to The George Washington University Hospital (GW Hospital) in D.C. and treated with a more powerful respirator. It made the difference. “I’m really lucky to have made it out,” he said. “Several nurses from both hospitals said that I was the worst case they had seen survive. I spent days in the ICU unable to breathe on my own, unable to shower, unable to hug anyone for comfort. “Most importantly, I appreciate our healthcare workers. They put their own health on the line every day to give people like me a fighting chance. I owe my life to the incredible care I received. Together we beat COVID-19.” After graduating from law school, he started working full-time again, in May. That same month, he returned to GW Hospital and thanked the ICU staffers who helped save him. Ralph Albracht Amanda Stone Northwest Texas Wellington Regional Healthcare System Medical Center Hospital workers Amanda is an at Northwest Texas administrator at UHS’ Healthcare System behavioral health lined the hallways on facility, SandyPines April 15 to celebrate Hospital, in Tequesta, the discharge of Florida. When she their first recovered became ill with COVID-19, she insisted to her COVID-19 patient, Ralph Albracht. husband that she be taken to Wellington Regional Medical Center. The UHS system of care to treat Albracht, 78, spent about three weeks at COVID-19 made a difference to Amanda. Despite Northwest, receiving specialized care and getting a challenging experience with the virus, Amanda to know the staff, including the nurses and recovered and was able to return to her job. “I firmly doctors in the ICU, members of the hospital’s believe I am here today because of Wellington inpatient rehab team, and others who cared for Regional… they saved my life.” him. “To the staff at Northwest, it is because of your tender love and care that I am going home today. The compassion you have shown me over the past few weeks has been overwhelming,” stated Albracht. 10


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    SUSTAINED EXCELLENCE IN QUALITY Award-winning care Our achievements in quality demonstrate our teams’ commitment to the outstanding care UHS Hospitals Recognized and services we provide. In Fall 2020, eight with an “A” Safety Grade from Leapfrog UHS Acute Care hospitals earned an “A” safety in Fall 2020 grade from The Leapfrog Group, recognizing our hospitals’ efforts in protecting patients from harm and meeting the highest safety standards. In addition, two UHS Acute Care hospitals – Temecula Valley Hospital and Northern Nevada Medical Center – were named Top General Hospitals by The Leapfrog Group. The Top General Hospitals award, given to just 29 hospitals nationally, is widely acknowledged as Aiken Regional Henderson Hospital Medical Centers (5th A in a row) one of the most competitive honors American (5th A in a row) Hospitals can earn. Further, Henderson Hospital was named a Top Teaching Hospital. U.S. News & World Report recognized The George Washington University Hospital as a Best Regional Hospital, ranking it in 7th place out of more than 50 hospitals in the Washington, D.C. metropolitan area. GW Northern Nevada South Texas Health Hospital also achieved “high performing” Medical Center System Edinburg (6th A in a row) (5th A in a row) status in the specialty care area of Nephrology, as well as three common procedure areas including Chronic Obstructive Pulmonary Disease (COPD), Heart Failure and Lung South Texas Health St. Mary’s Regional Cancer Surgery. System McAllen Medical Center (5th A in a row) (5th A in a row) Temecula Valley Texoma Medical Hospital Center (2nd A in a row) (2nd A in a row) 11


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    ACUTE CARE DIVISION PORTFOLIO GROWTH AND built in Reno in nearly a century, and will EXPANSION provide UHS with the opportunity to become a market leader in this community. Expansion and renovation plans continued this year, enabling us to meet the growing In California, at Southwest Healthcare System, healthcare needs of the communities we serve. we upgraded and completed a radiology suite buildout, adding more space for a better In the Las Vegas market, we opened the patient experience. new $100 million, five-story patient tower at Centennial Hills Hospital Medical Center. At In Texas, we broke ground on a new patient Henderson Hospital, we opened a new 25-bed tower at South Texas Health System observation nursing unit, which is designed Edinburg, which will provide bed capacity for patients who need additional evaluation in a rapidly growing market. At Northwest before they are either discharged or admitted Texas Healthcare System, we renovated the to the hospital. Additionally, we are adding labor and delivery suites. At Texoma Medical a new six-story patient tower that is under Center, we completed the renovation of a new construction, scheduled to open in late 2021. 25-bed patient area. At Valley Hospital Medical Center, we added In D.C., at The George Washington University a new observation unit. At Desert Springs Hospital, we added a state-of-the-art unit Hospital, we completed a pharmacy remodel. dedicated to treating Ebola. Construction is progressing for the new In South Carolina, at Aiken Regional Medical Northern Nevada Sierra Medical Center Centers, we added a new electrophysiology located in Reno, scheduled to open in early suite. 2022. This will be the first full-service hospital The new five-story patient tower at Centennial Hills Hospital Medical Center increases hospital capacity and provides expanded care offerings to the community. In addition to adding 72 patient beds, the new tower also includes two floors of shell space for an additional Intensive Care Unit, and Intermediate and Medical Surgical Units. 12


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    INTEGRATED DELIVERY NETWORKS We capture value by leveraging our clinically integrated networks in key markets. This allows us to provide patients with improved access to a full range of healthcare services. Our strategy sets the hospital as the hub with affiliated and accessible outpatient, ambulatory care, home health and physician services located within the region. Continuing with our pursuit of ambulatory care growth and development, we announced South Texas Health System Edinburg is towering forward with a strategic partnership with BAYADA Home an expansion project that will enhance the hospital’s high- Health Care. The new joint venture entity quality healthcare offerings in the community while benefitting the lives and well-being of generations to come. The expansion will provide patients with high-quality in- includes construction of a new five-story, $100 million patient home care. BAYADA is well known and highly tower slated to open in 2022. regarded for its excellence in patient care. We also announced a partnership with OPERATIONAL EFFICIENCIES Regent Surgical Health to establish affiliated DELIVERING RESULTS outpatient surgery centers in our key Our Acute Care hospitals are committed markets, enabling more ambulatory care to continuous improvement – striving for for more patients. excellence in clinical outcomes and enhancing Our partnership with Vera Whole Health, the patient experience. a primary care offering, enabled us to open Through a standardization of care in our ORs, the Edinburg Clinic in the South Texas market, we achieved a 40% reduction in never events our third location, with others on the horizon. from 2019 to 2020. Never events are errors that With Independence Physician Management, are clearly identifiable and preventable. our physician services unit, we increased We saw an improvement in the Acute our employed primary care doctors by 21% Inpatient Rehabilitation Program with 13 of 14 during the year. rehabilitation units ranking in the top 10% in the Prominence Health Plan added 6,000 nation for quality metrics. Medicare Advantage members and drove Process improvement efforts in MRI continued physician alignment through value-based across the division with 22 facilities completing care initiatives via seven Accountable Care work to reduce patient turnaround time by 50% Organizations (ACOs) across the country. for routine inpatient and observation patients. The ACOs saved Medicare $90 million in 2019, on top of the $65 million saved in 2018. We accomplished a lot this past year, but the Since the establishment of the first UHS ACO most powerful and inspiring stories of 2020 in 2014, the entities have saved more than were the thousands of patients who overcame $207 million and have achieved a 97% quality COVID-19 and were discharged from our score. Prominence Health Plan and the ACOs hospitals across the U.S. As the year progressed, are key strategic tools to align primary care we recognized and celebrated these triumphs. with our population health initiatives. 13


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    UHS ACUTE CARE DIVISION ENABLING CONVENIENT ACCESS TO CARE Our Freestanding Emergency Departments (FEDs) provide additional, conveniently located access points for people requiring immediate medical attention. FED Growth and Expansion We opened three new FEDs in 2020. These are full-service emergency departments that provide emergency care to those in need 24/7. Features of the FEDs include providing care for all ages, stabilizing treatment for major conditions such as heart attack and stroke, and treatment for minor conditions. Our FEDs also offer full-service lab and radiology services including X-ray and CT. Staffed by board-certified and board-eligible physicians and skilled staff, our FEDs receive ambulances and accept most insurances. ER at Anna, A Service of Texoma Medical Center ER at McCarran NW, An Extension of Northern Nevada Medical Center ER at Fruitville, An Extension of Lakewood Ranch Medical Center 14


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    The George Washington University Hospital: A TRADITION OF QUALITY The mission of The George Washington University Hospital (GW Hospital) is to provide the highest quality healthcare, advanced technology and world-class service to our patients. In 2020, GW Hospital was again ranked one of the Best Regional Hospitals by U.S. News & World Report, achieving “high performing” status in the specialty area of Nephrology. In December, Health and Human Services Secretary Alex Azar and U.S. Surgeon General Jerome Adams held a press conference alongside faculty and administrators at The George Washington University Hospital and the GW Medical Faculty Associates as part of the National Ceremonial COVID-19 Vaccination Kick-Off event. Following the press conference, Secretary Azar and Surgeon General Adams observed the administration of some of the nation’s first doses of a COVID-19 vaccine to frontline healthcare workers at GW Hospital. In a time when we were all physically distant, Maryland resident Linda Collins and D.C. resident Kevin Webb were bonded together forever. Inspired to do something kind during the pandemic, Linda decided to donate her kidney to a stranger in need. In January 2021, Linda and Kevin met for the first time. The first in the nation, GW Hospital used Virtual Reality (VR) reconstructive imaging to visualize and demonstrate the stark impact of the coronavirus on the lungs. This groundbreaking application of technological innovation generated international media coverage. Watch the video at https://www.gwhospital.com/resources/podcasts/ covid19-vr-technology 15


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    UHS BEHAVIORAL HEALTH DIVISION Compassion guides our patient care culture. Our skilled and dedicated team delivers care that transforms lives and families. Despite the enormous challenges wrought Quality of care and patient satisfaction are by the global pandemic, our Behavioral our most important metrics. The division Health Division recorded a year of high- outperformed the industry in several quality quality clinical outcomes, good financial measures. And we continue to inspire performance, and continued on its growth confidence among our referral sources. trajectory in the U.S. and the U.K. UHS hired a Chief Medical Officer of the division. We also created a product function COVID-19 is undeniably taking its to complement the regional operations toll on the mental health of Americans, structure. As we continue to increase according to many national sources, awareness and change the conversation as well as our own UHS Poll of Americans about mental health and addiction issues, finding that 68% of Americans view we remain committed to our top priority of COVID-19 as a severe or extreme crisis, taking care of patients – treating individuals citing the unknown duration of effects with respect and operating with integrity. of the pandemic among leading sources This is the philosophy that has powered our of COVID-related stress, anxiety and accomplishments and will continue to fuel depression.* In 2020, our dedicated our success into the future. clinicians and staff delivered compassionate care to nearly 700,000 patients in the U.S., providing healing to patients and families who struggle with mental health challenges. We scaled and greatly expanded our Telehealth engagements and fully expect the trend to continue. *Poll of 1,097 American adults conducted by Dynata on behalf of UHS in May 2020 using a web-based survey instrument. 17


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    U H S B E H AV I O R A L H E A LT H D I V I S I O N GROWTH AND EXPANSIONS TO In addition, we added a new 80-bed Mission SERVE MORE INDIVIDUALS AND Resiliency unit at Laurel Ridge Treatment COMMUNITIES Center, dedicated to serving the behavioral health needs of our nation’s military. We continued to grow and expand the delivery of care nationally and internationally. As to facilities currently under construction, In response to the need for more acute we are on track to open this year the new inpatient psychiatric capacity in the U.S., we Beaumont Behavioral Health, a partnership added 340 acute psychiatric beds in new between Beaumont Health and UHS. We are and existing facilities. We are on track to add slated to open the new Granite Hills Hospital another 900 beds in 2021. in the Summer of 2021. This facility will serve the greater Milwaukee area. On the de novo front, we opened the new Canyon Creek Behavioral Health in Temple, We announced a joint partnership with Texas. At the beginning of 2021, UHS opened HonorHealth to provide behavioral healthcare its first facility in the state of Iowa, Clive in the Phoenix and Scottsdale regions of Behavioral Health. This is a partnership with Arizona. The new facility, Via Linda Behavioral regional healthcare leader MercyOne in Des Hospital, will open in 2022. Moines. Also, March marks the official opening In Madera, California, we will be constructing of the new Southeast Behavioral Hospital, a a new behavioral health facility on the Madera partnership with SoutheastHEALTH, serving campus of our JV partner, Valley Children’s. Cape Girardeau, Missouri. This is also on track to open in 2022. The division expanded capacity at facilities across the U.S. including Gulfport Behavioral Health System, Canyon Ridge Hospital, Kempsville Center for Behavioral Health, The Carolina Center and Belmont Pines Hospital. Newly opened Canyon Creek Behavioral Health, located in Temple, Texas, to provide inpatient and outpatient treatment for individuals facing mental health issues. Our skilled therapists and staff are highly qualified and prepared to support individual patient care needs and treatment goals. 18 U N I V E R S A L H E A LT H S E R V I C E S , I N C .


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    In the Words of our Patients Rachel Cygnet Aspen Clinic, Doncaster, United Kingdom “When I came to Aspen Clinic, I was a nightmare. I was on a 5-minute check. I was withdrawn. I did not talk to A.D. anyone. I was abusive. I slowly started to The BridgeWay, North Little trust the staff. I started to let them in. Rock, Arkansas I started to let them help me. “For a decade, my mental health Fast forward… just over two years and I am was an abstract concept to me. excited to share that I have been discharged. I knew it was there and it was a I feel like myself. I love me. I am so excited part of me, but I couldn’t accept it for my future and everything it holds. I know that I put in the would be a life-long struggle. I had work to get where I am, but I couldn’t have done it without tried therapy, and an abundance the staff and nurses. I cannot express how amazing the staff of varying medications and felt are. They saved me. I will never be able to thank them for the completely hopeless. It wasn’t until huge impact they have had on my life.” my stay at The BridgeWay that I found the goal wasn’t to recover from Panic Disorder and MDD, it C.G. was to manage them effectively. Cedar Hills Hospital, Portland, Oregon I could use coping mechanisms “I am a grateful alcoholic who entered Cedar Hills in 2014 as a to battle the terrifying symptoms veteran with PTSD and substance abuse. I had trouble finding a good and lean on my supportive family program. Cedar Hills’ Military program saved my life, literally! I gave and friends during a crisis. The everything to the program and I’m proud to report that I am 6-years BridgeWay taught me more about sober! I never relapsed after leaving/completing the program. I just myself than I was ever able to wanted to write and let you all know if I can do this, so can you, trust understand on my own, and I me. I was as bad as it gets, with no hope. will be forever grateful for their support and expertise.” Today, I am very successful. I serve on two Boards and volunteer doing veteran advocacy. Never thought it could be done. Don’t give up! Sobriety is life!” I.I. Alliance Health Center, Meridian, Mississippi “My life with addiction began at the age of 13, drinking alcohol and smoking marijuana. By age 16, I was using harder drugs and would describe myself as an addict. After moving to Meridian, I was using on a daily basis. I was disgusted with my life and found New Leaf Recovery at Alliance Health Center. After completion of the program, I continued with the outpatient program. I got a job. I also attended AA® meetings regularly, got a sponsor and started attending church. With the treatment and coping skills I learned, I have now been sober for 10 months.” 19


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    U H S B E H AV I O R A L H E A LT H D I V I S I O N Cygnet Health Care has built a reputation as A FOCUS ON QUALITY one of the leading providers of mental health Quality of care and patient satisfaction services in the United Kingdom. Cygnet is are the key metrics that drive us. In CMS’ the provider of choice for the National Health Inpatient Psychiatric Facility Quality Service (NHS), delivering innovative services Reporting requirements, our behavioral and outstanding outcomes for individuals in health facilities are compared to our care. approximately 1,500 other psychiatric Cygnet treated over 5,500 service users providers across the country. UHS results during the year and celebrated the opening exceed the national averages in 11 out of several new facilities, providing more care of 15 indicators. for more individuals: In 2020, our patients rated their overall care • Ashbrook as 4.5 out of 5 in our patient satisfaction • Cherry Tree House surveys. More than 91% indicated they felt • Cygnet Hospital Hexham better following care at one of our facilities. In • Cygnet Joyce Parker Hospital addition, we launched the new Net Promoter • Cygnet Lodge Salford Score (NPS) in all our facilities. The NPS is a • Cygnet Newham House score to gauge the loyalty of customers; and • Cygnet Nield House has been widely adopted with more than two- • Cygnet Pindar House thirds of Fortune 1000 companies. • Edgar House • Gledholt Mews In the U.K., 82% of our services were rated • Glyn House ‘Outstanding’ or ‘Good’ by the Care Quality • North West Supported Living Commission, the independent regulator of health and social care in the U.K. Cygnet also completed the integration of Danshell services into the Cygnet portfolio with systems, policies and operations now aligned. 20


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    SPECIALIZED CARE & TREATMENT SUICIDE AWARENESS & PREVENTION As a partner to the National Action Alliance TELEHEALTH for Suicide Prevention, UHS supports and is During the year, we scaled and greatly fully committed to the first-of-its-kind effort expanded our Telehealth offerings, delivering to unite public and private sector forces thousands of virtual care sessions via laptop around mental health and suicide prevention and mobile to stay connected with patients. in the wake of COVID-19. We believe Telehealth will continue to expand, enabling convenient accessibility to This partnership brings together diverse professional healthcare services. As providers, sectors to cross-pollinate and accelerate we will continue to increase and enhance solutions. During COVID-19, we entered our Telehealth offerings, as a core channel of a perfect storm with a virus that has yet high-touch care delivery. to be contained, a fragile economy and social unrest. EDUCATIONAL SERVICES The dedicated educators at our residential In order to emerge stronger from this treatment facilities provide innovative pandemic, we must act collaboratively. programming for adolescents, enabling them That is why the National Strategy is to continue their education while in treatment. bringing together our unique perspectives. We are pleased to report that during the The need is urgent. The time is now. We must year, 203 students met the requirements work together to make change happen. to complete high school. Due to COVID-19 CARING FOR OUR NATION’S MILITARY precautions, we held several graduation An important population that we care for is ceremonies as virtual events. These special our nation’s military. Since UHS’ founding, moments were quite moving. we have delivered care to deserving service members, veterans and their families. In 2020, our UHS Behavioral Health Facilities and Patriot Support Programs cared for and treated over 16,000 servicemen and women, veterans, and family members. We are proud to offer a national network of behavioral treatment centers to help military, veterans and their families cope with the emotional and psychological effects of combat and related triggers. They deserve all that our professionals can offer. Heroes work here. As a team, the Behavioral Health Division looks ahead with great optimism. We will continue to save lives, inspire hope and support the most deserving of populations on their journey toward treatment and recovery. View our tribute videos at https://www.uhsinc.com/recognizing-our-healthcare-heroes. #HealthcareHeroes 21


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    UHS recognizes the need to protect CORPORATE the natural environment as well as SOCIAL serve patients and the communities in which we operate. Keeping our RESPONSIBILITY surroundings clean and minimizing pollution is of benefit to all. We are committed to following best practices Our commitment to improving when managing our energy usage and consumption, and disposing of society in a meaningful way waste. Stewardship continues to play an important role in our commitment to a clean environment and strong communities. 22


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    ENERGY STAR® UHS continued installing and successfully CERTIFICATION implementing smart analytics faults detection We continued work on the UHS and diagnostics systems in large HVAC Corporate Energy Efficiency systems. This technology will help UHS to Initiative, which was launched in proactively identify, prioritize and address 2017. UHS invested $6.49 million toward LED critical HVAC system components’ failure and lighting upgrades and optimization of our faults, per their energy savings potential. large heating, ventilation and air conditioning (HVAC) systems during the year. The projects implemented during 2020 are projected to save 12.36 million kWh of electricity and 171,862 therms of natural gas annually, resulting in 9,648 metric tons of CO2 emission reduction. This equates to: • 2,084 passenger vehicles removed from the road, or 23.94 million fewer miles driven by an average passenger vehicle, or • 10.6 million pounds less coal burned, or • 1,633 homes’ electricity use for one year. 23


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    LEED / GREEN GLOBES Even during the disruptions and initial CERTIFICATION uncertainty of the pandemic, we retained Originally, UHS obtained that focus. verification for Leadership in Our team maintained a strong throughput Energy and Environmental of products during the three pandemic Design (LEED) in five of our six Las Vegas waves, for the sake of our patients’ well-being area hospitals inclusive of subsequent and satisfaction. This became increasingly expansions where applicable. Subsequently, challenging as manufacturers temporarily shut we have applied for certification under the down, reduced production, and even went science-based Green Globes rating system, out of business. Compounding this were the which traces its origins to the European difficulties our distributors had in securing green building standard, Building Research product, let alone getting our diminished Establishment Environmental Assessment allocations delivered to our facilities. Methodology (BREEAM). This action supports our focus on systematic annual increases in We saw food deliveries fall to 78% of order overall energy efficiency while improving our volume during April. To compensate for this, activities in the operation and maintenance we utilized our Managed Order Guides to of our facilities. Such higher efficiencies fill in any available products that met our have proven particularly welcome during nutritional and price point goals. We sought the COVID-19 pandemic, due to the need for out alternative vendors and sources. Doing additional powered equipment to implement this required daily conversations, negotiations, specific safety protocols. In the end, we contractual re-evaluation and collaborating to registered slightly increased usage keep the flow of food and disposables stable. compared to the previous year. By August, despite the peak of the second wave, appropriate product fill rates climbed Furthermore, the Green Globes system to 88%. By October, they returned to the includes wellness elements, which normal 98%. No facility went without what demonstrate our commitment to not only they needed, albeit, in some cases in operate sustainable buildings but also provide different packaging. enhanced environments for our patients and their families, physicians and employees. During the various stages of the pandemic, At the end of 2020, five Green Globes we also experienced unusual price escalation certifications were earned and a sixth for a when supplies were limited. When there newly constructed tower is in progress. was something available, price escalated and supply was limited. Despite this, we were able to keep our food costs for our Behavioral UNCOMPROMISED Health Division flat after considering for CULINARY AND NUTRITION STANDARDS inflation. In the Acute Care Division, we focused The Culinary and Nutrition on patient menus and meals for our dedicated Department is part of our staff. Because of the decrease in typical Corporate Supply Chain structure customer retail traffic, their hospital cafeterias, and is comprised of Licensed Registered catering and food expenses were abnormally Dietitians and Accredited Chefs. In 2020, lower for 2020. Across both divisions, keeping we continued our Food as Healing Fuel the focus on Contract Compliance and integrated approach. Purchasing Program Maximizations helped significantly stabilize expenses. 24


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    The pandemic did not prevent Culinary and RESPONSIBLE Nutrition from meeting other commitments. PHARMACEUTICAL We were able to assist UHS Supply Chain WASTE MANAGEMENT as a whole to source non-traditional Proper disposal of pharmaceutical products. We also fulfilled digital software waste, controlled substance implementations and worked with the UHS waste, and ensuring regulatory compliance Design & Construction team on eight new continue to be the foundational components or rejuvenated partnerships. of the UHS Pharmaceutical Waste Management Program. IMPROVED The use of Drug Enforcement Agency ENVIRONMENTAL SERVICES (DEA) and Environmental Protection Agency UHS Environmental Services (EPA) compliant disposal containers prevent (EVS) was more critical and diversion of controlled substances and visible due to COVID-19. Our dedicated prevent pharmaceutical waste from entering teams continued to improve and innovate our environment. the manner in which we clean and provide In 2020, UHS closely monitored COVID-19 safe environments for our patients, staff and vaccine development and state-specific visitors. During the year, we expanded the distribution plans in order to manage the use of Adenosine Triphosphate (ATP) testing influx of sharps and waste from vaccinations. in patient and sterile areas to improve the Preparation and planning efforts focused on depth of inspections beyond visual as well adequate inventory levels of reusable sharps as increased treatments in UV cleaning. containers and frequency of pickups by our Our teams across our facilities moved pharmaceutical waste vendor in order to to digital/cloud-based inspection tools, accommodate the additional waste generated significantly reducing and in many cases at our facilities. eliminating the need for paper-based Proper disposal of pharmaceutical and inspections. Significant reduction of paper controlled substance waste generated at usage has occurred in changing these our hospitals supports the safety of our processes while improving our ability to patients and employees while protecting the collect data and document results faster. environment in the communities we serve. Our facilities have significantly reduced the use of floor waxes and are instead applying environmentally safer floor finishes, eliminating the need for caustic floor stripping products while expanding use of safer floor care products within our facilities. 25


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    REPROCESSING AND UNCOMPENSATED CARE WASTE DIVERSION (CHARITY CARE AND Through reprocessing and UNINSURED DISCOUNTS) remanufacturing efforts Our commitment to corporate with our business partners, UHS is able to social responsibility is evident across the minimize its environmental impact utilizing company in a number of ways, including the key sustainability programs. UHS Acute care that we provide to patients and their Care facilities work with vendors to collect families, regardless of their ability to pay. identified products, and participate in Generally, patients treated at our hospitals sustainable and environmentally friendly for non-elective services, who have gross practices resulting in waste diversion. These income less than 200% to 400% of the federal vendors break down collected products into poverty guidelines, are deemed eligible for recyclable components keeping them out of charity care. The federal poverty guidelines the waste stream. are established by the federal government In 2020, our Acute Care Division was able and are based on income and family size. to divert 116,940 pounds of waste through Based on charges at established rates, for collection of 429,862 individual items. the years ended December 31, 2020, 2019 Through participation in one vendor’s and 2018, UHS Acute Care hospitals have recycling program, 274 trees were planted on recorded increasing uncompensated care, behalf of UHS through the National Forest reflected as the sum of charity care and Foundation. UHS has been participating in uninsured discounts: reprocessing and remanufacturing programs for over 18 years. 2020 2019 2018 Amount % Amount % Amount % Charity care $622,668 28% $672,326 31% $761,783 40% Uninsured discounts $1,578,470 72% $1,511,738 69% $1,132,811 60% Total $2,201,138 100% $2,184,064 100% $1,894,594 100% uncompensated care (dollar amounts in thousands) 26


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    BOARD OF DIRECTORS Alan B. Miller3*,4* Marc D. Miller3,4 Executive Chairman Chief Executive Officer of the Board and President Lawrence S. Gibbs1,2,5 Eileen C. McDonnell1*,2*,3,6 Product Manager at Chairman and Chief Executive AIG, Artificial Intelligence Officer of The Penn Mutual Life Platform. Previously served Insurance Company. Served in various roles at Erdos as President of New England Capital, Ramius, LLC Financial, a wholly owned and JPMorgan Chase subsidiary of MetLife, and Senior Bank N.A. Vice President of the Guardian Life Insurance Company. Member of The Penn Mutual Board of Trustees. Warren J. Nimetz3,4 Maria Singer1,4,5 Partner, Norton Chief Operating Officer – Rose Fulbright US LLP, Corporate Finance at New York, NY Houlihan Lokey. Previously served as Managing Director and COO of Blackstone Advisory Partners. Elliot J. Sussman, M.D.1,2,5* Chairman of The Villages Health. Previously served as President and Chief Executive Officer of Lehigh Valley Hospital and Health Network. Member, Committees of the Board: 1Audit Committee, 2Compensation Committee, Board of Directors of 3 Executive Committee, 4Finance Committee, 5Nominating/Corporate iCAD, Inc. Governance Committee, 6Lead Director, *Committee Chairperson C O R P O R AT E O F F I C E R S Alan B. Miller Charles F. Boyle Matthew D. Klein Founder and Executive Chairman Senior Vice President Senior Vice President of the Board and Controller and General Counsel Marc D. Miller Jim Clark Michael S. Nelson Chief Executive Officer and President Senior Vice President, Finance Senior Vice President Acute Care Division Strategic Services Steve G. Filton Executive Vice President Thomas Day Victor J. Radina and Chief Financial Officer Senior Vice President, Finance Senior Vice President Behavioral Health Division Corporate Development Marvin G. Pember Executive Vice President Geraldine Johnson Geckle Cheryl K. Ramagano and President Senior Vice President Senior Vice President Acute Care Division Human Resources and Treasurer Matthew J. Peterson Executive Vice President and President Behavioral Health Division 27


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    FA C I L I T Y L O C AT I O N S U N I T E D S TAT E S UNITED KINGDOM Alabama | Alaska | Arizona England Arkansas | California Bristol | Cheshire Colorado | Connecticut County Durham | Derbyshire Delaware | District of Columbia Dorset | Essex Florida | Georgia | Idaho Gloucestershire | Hampshire Illinois | Indiana | Iowa Hertfordshire | Kent Kentucky | Louisiana Lancashire | Leicestershire Massachusetts | Michigan Lincolnshire | London Minnesota | Mississippi Greater Manchester | North Yorkshire Missouri | Nevada Northumberland | Nottinghamshire New Jersey | New Mexico Somerset | South Yorkshire North Carolina | North Dakota Staffordshire | Suffolk | Surrey Ohio | Oklahoma | Oregon Teesside | West Midlands | West Yorkshire Pennsylvania | South Carolina Tennessee | Texas Scotland Utah | Virginia | Washington Angus | Dumfries and Galloway West Virginia | Wyoming Stirling Wales PUERTO RICO Flintshire | Gwent U N I V E R S A L H E A LT H S E R V I C E S , I N C . Corporate Center Cygnet Health Care 367 South Gulph Road Third Floor - 4 Millbank King of Prussia, PA 19406 SW1P 3JA London www.uhsinc.com United Kingdom 2190709-2357✜ ✁/21


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