During 2009, we expect to spend approximately $350 million to $400 million on capital expenditures, including approximately $220 million related to expenditures for capital equipment, renovations, new projects at existing hospitals and completion of major construction projects in progress at December 31, 2008.
South Texas Health System affiliates investigation:
As previously disclosed, since November, 2005, the government has been investigating our South Texas Health System affiliates. The investigation has been focused on certain arrangements which, the government believes, may have violated Medicare and Medicaid rules and regulations pertaining to payments to physicians and the solicitation of patient referrals from physicians and other matters relating to payments to various individuals which may have constituted improper payments. We have been negotiating a possible settlement of this matter with the government and we expect to continue our discussions to attempt to resolve this matter in a manner satisfactory to us and the government. During 2008, we recorded a pre-tax charge of $25 million ($15 million of which was recorded during the fourth quarter of 2008) to establish a reserve in connection with this matter. However, there is no assurance that a settlement can be reached, and, should a settlement be reached, we are unable at this time to determine the ultimate settlement amount. Should we be unable to ultimately reach a settlement, we are unable at this time to determine the extent of the total financial and/or other exposure to us in connection with this matter.
|SOURCE Universal Health Services, Inc.|
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