EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACT: Cheryl K. Ramagano February 14, 2003
Vice President and Treasurer
610-768-3402
UNIVERSAL HEALTH REALTY INCOME TRUST
RELEASES LETTERS TO KPMG
KING OF PRUSSIA, PA - Universal Health Realty Income Trust (NYSE: UHT)
released today copies of the written communications from Kirk Gorman to KPMG
referred to in the Company's press release of February 13, 2003, which are
attached to this release. Mr. Gorman's letter, dated December 12, 2002, was the
culmination of a variety of conversations between Mr. Gorman and KPMG relating
to the subject matters covered in that letter. It was that letter which led KPMG
to their conclusion as stated in the earlier release.
Universal Health Realty Income Trust, a real estate investment trust,
invests in healthcare and human service related facilities including acute care
hospitals, behavioral healthcare facilities, rehabilitation hospitals, sub-acute
care facilities, surgery centers, childcare centers and medical office
buildings. The Trust has forty-two investments in fifteen states.
(more)
December 12, 2002
KPMG LLP
1601 Market Street
Philadelphia, PA 19103
Gentlemen:
I have signed the letter you drafted dated November 13, 2002 for my
signature in my capacity as President and Chief Financial Officer of Universal
Health Realty Income Trust. You have informed me that my failure to sign this
letter would, in your view, represent an audit exception that might need to be
reported to the Securities and Exchange Commission, the New York Stock Exchange
or other regulatory bodies.
I write this letter to clarify and re-iterate other communications we have
had. I am neither a Certified Public Accountant nor a securities lawyer. I do
not make entries into our general ledger system. I do not personally consolidate
the general ledger entries to produce financial statements for either an
individual entity or for Universal Health Realty Income Trust's consolidated
statements. I do not have first hand personal knowledge of many of the points
you list in your letter.
I do review and analyze the financial statements and disclosures in our
10-Q and 10-K filings, but I can not personally verify that all of our
accounting is in accordance with GAAP. As examples, I am uncertain of the
accounting treatment for "Other Comprehensive Income" and hedge accounting as
dictated by SFAS 133 and SFAS 138. I have not investigated how SFAS 143 and SFAS
146 may affect the financial statements of Universal Health Realty Income Trust.
I rely upon KPMG to ensure that our financial statements filed on Forms
10-Q and 10-K are in compliance with GAAP and security regulations regarding
disclosure. In accordance with Federal law, I now sign certificates which
accompany each 10-Q and 10-K. As part of my own due diligence to ensure that
requirements of the certificates are being met, I have asked KPMG to provide me
a representation letter or certificate regarding KPMG's ongoing review of our
financial statements and disclosures. KPMG has refused to provide me any such
representation letter or certificate. I nevertheless continue to rely upon KPMG
to alert me to each and every instance of concern KPMG may have regarding KPMG's
access to information, integrity and consisting of the information provided to
KPMG, and Universal Health Realty Income Trust's compliance with GAAP and all
securities regulations. I have not been alerted to any such concerns for the
three and nine month periods ended September 30, 2002.
Sincerely,
Kirk E. Gorman
President and Chief Financial Officer
KEG/kf
February 14, 2003
KPMG LLP
1601 Market Street
Philadelphia, PA 19103
Gentlemen:
Upon re-reading a letter I provided to you dated December 12, 2002, it occurs to
me that my wording could be misinterpreted by someone not party to the frequent
dialogue I have with representatives of KPMG. I hope this letter will eliminate
any potential misunderstanding of my December 12, 2002 letter to you.
My letter of December 12 was not an attempt by me to retreat from or qualify in
any way whatsoever the representations I made in a November 13, 2002 letter to
KPMG that I signed. To the best of my knowledge each and every one of those
representations was accurate on the date they were made. I at no time have ever
communicated to anyone, including KPMG, that I have ever made representations
concerning UHT financial statements or disclosures, or indeed any other topic,
that I believed to be untrue or false in any way at the time they were made. I
recognize and confirm that the financial statements of UHT are the
responsibility of management and I did not intend to try to shift that
responsibility to KPMG.
To the extent that I do not have personal expertise in certain areas of
accounting, I have confidence in the diligence and technical expertise of the
accounting, treasury, and tax personnel at UHT who prepare the company's
financial statements and footnotes thereto. I believe UHT has in place the
procedures, processes and people that are adequate to ensure that UHT's
financial statements are prepared in accordance with GAAP and that UHT's
disclosures through filings with the SEC meet or exceed guidelines and
regulations regarding disclosure of material information.
Please contact me if this letter does not fully remove any question KPMG may
have concerning my letter of December 12, 2002.
Sincerely,
Kirk E. Gorman