Exhibit 10.3

EXECUTION COPY

ASSIGNMENT AND ASSUMPTION AGREEMENT

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Agreement”), dated as of
October 27, 2010, is entered into by and among the following parties:

(i) AIKEN REGIONAL RECEIVABLES, L.L.C., AUBURN REGIONAL RECEIVABLES, L.L.C.,
CENTRAL MONTGOMERY RECEIVABLES, L.L.C., DISTRICT HOSPITAL PARTNERS RECEIVABLES,
L.L.C., FORT DUNCAN MEDICAL RECEIVABLES, L.L.C., LANCASTER HOSPITAL RECEIVABLES,
L.L.C., LAREDO REGIONAL RECEIVABLES, L.L.C., MANATEE MEMORIAL RECEIVABLES,
L.L.C., MCALLEN HOSPITALS RECEIVABLES, L.L.C., NORTHWEST TEXAS HEALTHCARE
RECEIVABLES, L.L.C., SPARKS FAMILY HOSPITAL RECEIVABLES, L.L.C., SUMMERLIN
HOSPITAL RECEIVABLES, L.L.C., UHS OF OKLAHOMA RECEIVABLES, L.L.C., UHS-CORONA
RECEIVABLES, L.L.C., RANCHO SPRINGS RECEIVABLES, L.L.C., VALLEY HEALTH SYSTEM
RECEIVABLES, L.L.C. AND WELLINGTON REGIONAL RECEIVABLES, L.L.C., each, a
Delaware limited liability company (each, a “Borrower” and collectively, the
“Borrowers”);

(ii) UHS RECEIVABLES CORP., a Delaware corporation (the “Collection Agent”);

(iii) UHS OF DELAWARE, INC., a Delaware corporation (the “Servicer”);

(iv) VARIABLE FUNDING CAPITAL COMPANY LLC, a Delaware limited liability company
(“VFCC”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (as successor to Wachovia
Bank, National Association), as a Liquidity Bank and as a Co-Agent (together
with VFCC, the “VFCC Group”);

(v) THREE PILLARS FUNDING LLC, a Delaware limited liability company (“TPF”),
SUNTRUST BANK (“SunTrust”), as a Liquidity Bank, and SUNTRUST ROBINSON HUMPHREY,
INC., as a Co-Agent (collectively with TPF and SunTrust, the “TPF Group”);

(vi) WELLS FARGO BANK, NATIONAL ASSOCIATION (as successor to Wachovia Bank,
National Association) (“Wells”), as administrative agent under the Prior
Agreement (as defined below) (in such capacity, the “Prior Administrator”); and

(vii) PNC BANK, NATIONAL ASSOCIATION (“PNC”), as administrative agent under the
Amended Agreement (as defined below) (in such capacity, the “New
Administrator”).

BACKGROUND

1. The Borrowers, the Collection Agent, the Servicer, Universal Health Services,
Inc., as performance guarantor, the VFCC Group, the TPF Group and the Prior
Administrator are parties to that certain Credit and Security Agreement, dated
as of August 31, 2007 (as amended, supplemented or otherwise modified prior to
the date hereof, the “Prior Agreement”).

2. The Prior Administrator desires to transfer and assign to the New
Administrator, and the New Administrator desires to accept and assume from the
Prior Administrator, all of the

 

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Prior Administrator’s rights and obligations under the Prior Agreement and all
other Transaction Documents to which the Prior Administrator is a party, as such
rights and obligations are further described in the foregoing and as amended and
modified by, among other things, the Amended and Restated Credit Agreement,
dated as of the date hereof (the “Amended Agreement”), by and among the parties
thereto including the New Administrator.

3. Concurrent with the foregoing assignment, the parties hereto desire to
(x) amend and restate the Prior Agreement in its entirety by entering into the
Amended Agreement and (y) enter into that certain Payoff Letter, dated as of the
date hereof (the “Payoff Letter”), pursuant to which, among other things the
Borrowers party to the Prior Agreement repaid in full all the outstanding loans
made under the Prior Agreement.

NOW, THEREFORE, in consideration of the mutual agreements herein contained, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 1. Definitions. Capitalized terms used in this Agreement and not
otherwise defined herein shall have the meanings assigned thereto in the Amended
Agreement.

SECTION 2. Assignment and Assumption. Effective as of the Assignment Effective
Date (as defined below), the Prior Administrator hereby transfers, sets over,
assigns, sells and conveys to the New Administrator all of the Prior
Administrator’s right, title and interest in and delegates all of its duties and
obligations under the Prior Agreement and all other Transaction Documents (other
than any indemnification or other similar rights which by their express terms
survive the termination of the Prior Agreement or any other Transaction
Document), as such rights and obligations are further described in the Prior
Agreement and the other Transaction Documents and as such rights and obligations
are amended and modified by, the Amended Agreement. Without limiting the
generality of the foregoing, the Prior Administrator hereby assigns to the New
Administrator, as administrative agent, any security interests or other rights,
if applicable, in the Collateral granted to the Prior Administrator, as
administrative agent, under the Prior Agreement or any other Transaction
Document. From and after the Assignment Effective Date, the New Administrator
hereby accepts such transfer and assignment to it, agrees to be bound by all of
the terms and conditions of the Amended Agreement and all other Transaction
Documents to which it is a party, and unconditionally assumes all of the
obligations of the Prior Administrator relating to the foregoing; provided,
however, that that the New Administrator does not assume any liability for any
action or inaction taken, or omitted to be taken, by Wells in its capacity as
Administrative Agent, as a Lender or in any other capacity under the Prior
Agreement, the other Transaction Documents or otherwise.

SECTION 3. Resignation of Prior Administrator. Effective as of the Assignment
Effective Date, the Prior Administrator hereby resigns as Administrator under
the Prior Agreement and all other Transaction Documents. In connection
therewith, the Prior Administrator hereby authorizes the New Administrator to
file, at the Borrowers’ expense, any Uniform Commercial Code financing
statements, financing statement amendments or similar filings that may be
necessary or, in the opinion of the New Administrator, desirable to assign to
the New Administrator, any security interest or other rights, if applicable,
granted to the Prior Administrator under the Prior Agreement or any other
Transaction Document. From and after

 

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the Assignment Effective Date, the Prior Administrator shall cease to be a party
to the Prior Agreement or any other Transaction Document, to which the Prior
Administrator was a party in the capacity of Administrator and shall no longer
have any rights or obligations under the Prior Agreement or any other
Transaction Document (other than any indemnification or other similar rights
which by their express terms survive the termination thereof) in its capacity as
Administrator thereunder.

SECTION 4. Waiver. Each of the parties hereto hereby acknowledges and agrees to
the resignation set forth in Section 3 above, and expressly waives any notice
requirements set forth in the Prior Agreement (including, without limitation,
Section 11.10 thereof) or any other Transaction Document, as a prerequisite or
condition precedent to such resignation.

SECTION 5. Assignment Effective Date. The effective date (the “Assignment
Effective Date”) of this Agreement shall be the later of (i) the date of this
Agreement and (ii) the date on which the following conditions precedent are
satisfied:

(a) the New Administrator shall have received duly executed copies of (x) this
Agreement, (y) the Amended Agreement and (z) all other agreements, opinions and
documents reasonably requested by the New Administrator; and

(b) each of the conditions precedent to the effectiveness of the Amended
Agreement and the Payoff Letter shall have been satisfied.

SECTION 6. Effect of Agreement. From and after the Assignment Effective Date,
(i) this Agreement shall be a part of each Transaction Document amended hereby
and (ii) each reference in each such amended Transaction Document to “this
Agreement”, “hereof”, “hereunder” or words of like import, and each reference in
such agreement or document to such agreement or document shall mean and be a
reference to such amended agreement or document.

SECTION 7. Further Assurances. Each of the parties hereto hereby agrees to do
all such things and execute all such documents as the New Administrator may
reasonably consider necessary or desirable to give full effect to this Agreement
and to perfect and preserve the rights and powers of the New Administrator for
itself and on behalf of the Secured Parties hereunder and under the Transaction
Documents.

SECTION 8. Miscellaneous.

(a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF
CONFLICTS OF LAWS THEREOF.

(b) JURISDICTION. EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT
SITTING IN THE BOROUGH OF MANHATTAN, NEW YORK, IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH
PERSON PURSUANT TO THIS AGREEMENT, AND EACH SUCH PARTY HEREBY IRREVOCABLY AGREES
THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR

 

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PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES
ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT,
ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN
INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF ANY PARTY HERETO
OTHER THAN A BORROWER OR AFFILIATE THEREOF TO BRING PROCEEDINGS AGAINST ANY
OTHER PARTY HERETO IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL
PROCEEDING BY ANY BORROWER OR ANY AFFILIATE THEREOF AGAINST ANY PARTY HERETO
INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED
TO, OR CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH BORROWER
OR AFFILIATE THEREOF PURSUANT TO THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT
IN THE BOROUGH OF MANHATTAN, NEW YORK.

(c) WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN ANY
JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER
SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO,
OR CONNECTED WITH THIS AGREEMENT, ANY DOCUMENT EXECUTED BY ANY PARTY HERETO
PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR
THEREUNDER.

(d) Integration. This Agreement contains the final and complete integration of
all prior expressions by the parties hereto with respect to the subject matter
hereof and shall constitute the entire agreement among the parties hereto with
respect to the subject matter hereof superseding all prior oral or written
understandings.

(e) Severability. If any one or more of the agreements, provisions or terms of
this Agreement shall for any reason whatsoever be held invalid or unenforceable,
then such agreements, provisions or terms shall be deemed severable from the
remaining agreements, provisions and terms of this Agreement and shall in no way
affect the validity or enforceability of the provisions of this Agreement.

(f) Amendments. This Agreement may not be amended, supplemented or waived except
pursuant to a writing signed by the party to be charged, the Prior Administrator
and the New Administrator.

(g) Counterparts. This Agreement may be executed in counterparts, and by the
different parties on different counterparts, each of which shall constitute an
original, but all together shall constitute one and the same agreement.

(h) Headings. The captions and headings of this Agreement, are included for
convenience of reference only and shall not affect the meaning or interpretation
of this Agreement, the Prior Agreement or any other Transaction Document or any
provision hereof or thereof.

[signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their
duly authorized officers as of the date first above written.

 

BORROWERS

AIKEN REGIONAL RECEIVABLES, L.L.C.

AUBURN REGIONAL RECEIVABLES, L.L.C.

CENTRAL MONTGOMERY RECEIVABLES, L.L.C.

DISTRICT HOSPITAL PARTNERS RECEIVABLES, L.L.C.

FORT DUNCAN MEDICAL RECEIVABLES, L.L.C.

LANCASTER HOSPITAL RECEIVABLES, L.L.C.

LAREDO REGIONAL RECEIVABLES, L.L.C.

MANATEE MEMORIAL RECEIVABLES, L.L.C.

MCALLEN HOSPITALS RECEIVABLES, L.L.C.

NORTHWEST TEXAS HEALTHCARE RECEIVABLES, L.L.C.

SPARKS FAMILY HOSPITAL RECEIVABLES, L.L.C.

SUMMERLIN HOSPITAL RECEIVABLES, L.L.C.

UHS OF OKLAHOMA RECEIVABLES, L.L.C.

UHS-CORONA RECEIVABLES, L.L.C.

RANCHO SPRINGS RECEIVABLES, L.L.C.

VALLEY HEALTH SYSTEM RECEIVABLES, L.L.C.

WELLINGTON REGIONAL RECEIVABLES, L.L.C.

By:   /s/    CHERYL K. RAMAGANO

Name: Cheryl K. Ramagano

Title: Vice President

 

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UHS RECEIVABLES CORP.,

as Collection Agent

By:   /s/    CHERYL K. RAMAGANO

Name: Cheryl K. Ramagano

Title: Vice President & Treasurer

 

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UHS OF DELAWARE, INC.,

as Servicer

By:   /s/    CHERYL K. RAMAGANO

Name: Cheryl K. Ramagano

Title: Vice President & Treasurer

 

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VARIABLE FUNDING CAPITAL COMPANY LLC By:  

Wells Fargo Securities, LLC,

its Attorney-In-Fact

By:   /s/    DOUGLAS R. WILSON, SR.

Name: Douglas R. Wilson, Sr.

Title: Director

 

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WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Liquidity Bank, as a Co-Agent and
as Prior Administrator By:   /s/    WILLIAM P. RUTKOWSKI

Name: William P. Rutkowski

Title: Vice President

 

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THREE PILLARS FUNDING LLC By:   /s/    DORIS J. HEARN

Name: Doris J. Hearn

Title: Vice President

 

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SUNTRUST BANK, as a Liquidity Bank By:   /s/    DANA DHALIWAL

Name: Dana Dhaliwal

Title: Director

 

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SUNTRUST ROBINSON HUMPHREY, INC.,

as a Co-Agent

By:   /s/    JOSEPH R. FRANKE

Name: Joseph R. Franke

Title: Director

 

   S-8    Assignment and Assumption Agreement

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PNC BANK, NATIONAL ASSOCIATION,

as New Administrator

By:   /s/    WILLIAM FALCON

Name: William Falcon

Title: Vice President

 

   S-9    Assignment and Assumption Agreement