Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

The following table shows the amounts recorded at our acute care hospitals for charity care and uninsured discounts, based on charges at established rates, for the years ended December 31, 2013, 2012 and 2011:


	(dollar amounts in thousands)
	2013					2012					2011
	Amount		%			Amount		%			Amount		%
Charity care	$	593,474		59	%	$	778,268		74	%	$	804,301		84	%
Uninsured discounts		405,296		41	%		267,304		26	%		151,447		16	%

Total uncompensated care	$	998,770		100	%	$	1,045,572		100	%	$	955,748		100	%

Estimated Cost of Providing Uncompensated Care

The estimated cost of providing uncompensated care, as reflected below, were based on a calculation which multiplied the percentage of operating expenses for our acute care hospitals to gross charges for those hospitals by the above-mentioned total uncompensated care amounts. The percentage of cost to gross charges is calculated based on the total operating expenses for our acute care facilities divided by gross patient service revenue for those facilities. An increase in the level of uninsured patients to our facilities and the resulting adverse trends in the provision for doubtful accounts and uncompensated care provided could have a material unfavorable impact on our future operating results.


	(amounts in thousands)
	2013		2012		2011
Estimated cost of providing charity care	$	95,675	$	131,890	$	145,350
Estimated cost of providing uninsured discounts related care		65,338		45,299		27,363

Estimated cost of providing uncompensated care	$	161,013	$	177,189	$	172,713

Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill for the two years ended December 31, 2013 were as follows (in thousands):


	Acute Care Services			Behavioral Health Services			Total Consolidated
Balance, January 1, 2012	$	389,484		$	2,238,118		$	2,627,602
Goodwill acquired during the period		11,110			434,551			445,661
Goodwill divested during the period		(17,450	)		(1,902	)		(19,352	)
Adjustments to goodwill (a)		(448	)		(16,698	)		(17,146	)

Balance, January 1, 2013		382,696			2,654,069			3,036,765
Adjustments to goodwill (b)		315			11,936			12,251

Balance, December 31, 2013	$	383,011		$	2,666,005		$	3,049,016

(a)

The reduction to the Behavioral Health Services’ goodwill consists primarily of a reclassification to “assets of facilities held for sale” and represents the goodwill attributable to Peak Behavioral Health Services which we agreed to divest pursuant to our agreement with the Federal Trade Commission in connection with our acquisition of Ascend Health Corporation in October, 2012. Adjustments to prior year purchase price allocations for Acute Care and Behavioral Health Services are also included.

(b)	The increase in the Behavioral Health Services’ goodwill consists primarily of an amount that was reclassified from other assets.

Amounts Recognized in AOCI

The amounts recognized in AOCI for the two years ended December 31, 2013 were as follows (in thousands):


	Net Unrealized Gains (Losses) on Effective Cash Flow Hedges			Minimum Pension Liability			Total AOCI
Balance, January 1, 2012, net of income tax	$	(28,460	)	$	(22,715	)	$	(51,175	)
2012 activity:
Pre-tax amount		6,341			4,986			11,327
Income tax effect		(2,408	)		(1,898	)		(4,306	)

Change, net of income tax		3,933			3,088			7,021

Balance, January 1, 2013, net of income tax		(24,527	)		(19,627	)		(44,154	)
2013 activity:
Pre-tax amount		16,627			14,657			31,284
Income tax effect		(6,270	)		(5,670	)		(11,940	)

Change, net of income tax		10,357			8,987			19,344

Balance, December 31, 2013, net of income tax	$	(14,170	)	$	(10,640	)	$	(24,810	)

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share, for the periods indicated:


	Twelve Months Ended December 31,
	2013			2012			2011
Basic and diluted:
Net Income	$	554,023		$	489,047		$	448,870
Less: Net income attributable to noncontrolling interest		(43,290	)		(45,601	)		(50,703	)
Less: Net income attributable to unvested restricted share grants		(294	)		(497	)		(521	)

Net income attributable to UHS—basic and diluted	$	510,439		$	442,949		$	397,646

Basic earnings per share attributable to UHS:
Weighted average number of common shares—basic		98,033			96,821			97,199

Total basic earnings per share	$	5.21		$	4.57		$	4.09

Diluted earnings per share attributable to UHS:
Weighted average number of common shares		98,033			96,821			97,199
Net effect of dilutive stock options and grants based on the treasury stock method		1,328			890			1,338

Weighted average number of common shares and equivalents—diluted		99,361			97,711			98,537

Total diluted earnings per share	$	5.14		$	4.53		$	4.04