LETTER TO OUR SHAREHOLDERS “Change in the industry is inevitable. But we will continue  to seek and find opportunity in change. That’s what has  earned us a reputation as an innovator.” Those words were true when I wrote them years ago and they are even more accurate today. Just as we did then, Universal Health Services, Inc.  (NYSE: UHS) is working hard to seize every opportunity and meet all challenges so that the company continues its long record of prosperity and growth far into the future. 2011 was an important year for UHS. The company’s strong management team and its focus on quality and efficiency allowed UHS to maintain its position as an industry leader. We are pleased to report that in 2011, adjusted net income attributable to UHS was $391.7 million, compared to  $249.8 million in 2010. Net revenue increased 35 percent to $7.50 billion in 2011, compared to $5.57 billion in 2010. We acquired 110 facilities in the Psychiatric Solutions, Inc. acquisition and the Behavioral Health Division successfully integrated them into the  company, giving us more than 200 behavioral health hospitals. As a result,  our Behavioral Health Division is now the largest facilities-based behavioral  healthcare organization in the country with annual revenue of $3.4 billion, accounting for 45 percent of the corporation’s annual revenue. The division added 263 beds to help meet demand. We expanded existing  hospitals and constructed new facilities, including the new Cumberland Hall Hospital in Kentucky that features a separate wing to house our Patriot  Support Program for active duty members of the military and veterans.  “I am wearing an American Flag lapel pin, and urge you to do the same, in  solidarity with our troops in the Middle East. UHS and our families can prosper  because of the safety they provide for us. Remember to say thank you when you meet a member of our armed forces.”