Case 2:18-bk ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 1 of 70

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1 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 1 of 70 Attorney or Party Name, Address, Telephone and FAX Samuel R. Maizel, Esq. (Bar No ) Tania M. Moyron, Esq. (Bar No ) Dentons US LLP 601 South Figueroa Street, Suite 2500 Los Angeles, CA T: (213) F: (213) In re: VERITY HEALTH SYSTEM OF CALIFORNIA, INC, et al., UNITED STATES DEPARTMENT OF JUSTICE OFFICE OF THE UNITED STATES TRUSTEE CENTRAL DISTRICT OF CALIFORNIA Debtors. ATTACH TO THE FRONT OF THE MONTHLY OPERATING REPORT AND SUBMIT TO UNITED STATES TRUSTEE Case Number: ER (See Below) MONTHLY OPERATING REPORT DISBURSEMENT SUMMARY MOR NO. 2 FOR MONTH ENDING: October Total number of Debtor in Possession Bank Accounts for all Debtors TOTAL THIRD PARTY DISBURSEMENTS THIS PERIOD FROM ALL DEBTOR IN POSSESSION ACCOUNTS FOR ALL ENTITIES WITH BANK ACCOUNTS $126,601, The Debtors in the these chapter 11 cases, along with their case numbers are, Verity Health System of California, Inc ER, O Connor Hospital ER, Saint Louise Regional Hospital ER, St. Francis Medical Center ER, St. Vincent Medical Center ER, Seton Medical Center ER, O Connor Hospital Foundation ER, Saint Louise Regional Hospital Foundation ER, St. Francis Medical Center of Lynwood Foundation ER, St. Vincent Foundation ER, St. Vincent Dialysis Center, Inc ER Seton Medical Center Foundation ER, Verity Business Services ER, Verity Medical Foundation ER, Verity Holdings, LLC ER, DePaul Ventures, LLC ER, and DePaul Ventures San Jose Dialysis, LLC ER. Effective September 1, 2011 USTLA 16 1

2 Verity Bank Account Summary For month ending 10/31/2018 $ in 000's Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 2 of 70 Total Transaction Count Ending Bank Balance Operating Disbursements Sweep Inflows Sweep Outflows DIP Inflows 2 DIP Outflows 2 I/C Inflows I/C Outflows Total Receipts Debtor Debtor Name 1 Case # Beg Balance Verity Health System of California, Inc $ 24,043 $ 206 $ (36,445) $ $ $ $ $ 33,005 $ (8,005) $ 12, O'Connor Hospital ,918 21,326 (18,327) 42,273 (42,273) 13,121 (15,121) 11,917 1,855 St. Louise Regional Hospital ,458 6,917 (5,936) 13,552 (13,552) 4,450 (4,450) 4,439 1,174 St. Francis Medical Center ,232 49,639 (22,171) 118,970 (118,970) 14,178 (40,178) 25,700 1,995 St. Vincent Medical Center ,296 17,004 (16,091) 33,504 (33,504) 9,558 (9,558) 10,208 1,405 Seton Medical Center ,188 17,362 (13,900) 36,401 (36,401) 9,157 (9,157) 11,650 1,884 O'Connor Hospital Foundation , ,722 8 St. Louise Regional Hospital Foundation (0) St. Francis Medical Center of Lynwood Foundation ,262 6 St. Vincent Medical Center Foundation , ,734 6 St. Vincent Dialysis Center, Inc , Seton Medical Center Foundation , (26) 117 (117) 6, Verity Business Services ,151 (2,766) 4,628 (1,628) 1, Verity Medical Foundation ,023 7,703 (10,246) 2,000 7,480 3,011 Verity Holdings, LLC , (693) 300 (2,300) 7, Subtotal $ 111,171 $ 121,456 $ (126,601) $ 244,700 $ (244,700) $ $ $ 90,514 $ (90,514) $ 106,026 11,928 Notes 1) In our monthly submissions, De Paul Ventures, LLC and De Paul Ventures San Jose Dialysis, LLC are not included above because they do not have bank accounts. 2) In addition to the above DIP inflows and outflows activity illustrated, Verity also submits its cash inflows to the Debtors' DIP Lender Ally Bank on a daily basis even when there is no DIP balance outstanding. When this occurs, Ally Bank returns the funds to Verity. To the extent funds are sent to and received from Ally Bank in the same month in the case of a zero DIP balance, the transfers will net out to zero. 2

3 Verity Bank Account Summary For month ending 10/31/2018 $ in 000's Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 3 of 70 Total Transaction Count Ending Bank Balance Operating Disbursements Sweep Inflows Sweep Outflows DIP Inflows 2 DIP Outflows 2 I/C Inflows I/C Outflows Total Receipts Bank Account Number Beg Balance Bank Account Name VHS AP XXXXXX6440 $ 23,796 $ 179 $ (32,017) $ $ $ $ $ 28,000 $ (8,005) $ 11, VHS Self Insurance XXXXXX VHS Payroll XXXXXX (4,428) 5, VHS DIP Concentration Account XXXXXX2889 VHS DIP Loan Proceeds XXXXXX4358 OCH Lockbox XXXXXX ,325 (21,438) OCH Gross Revenue XXXXXX ,438 (20,835) 2 1, OCH AP XXXXXX6389 9,499 (5,394) 20,835 (15,119) 9, OCH Payroll XXXXXX (12,933) 13, OCH FSA XXXXXX OCH Patient Trust XXXXXX (2) 0 2 SLRH Lockbox XXXXXX ,917 (6,882) SLRH Gross Revenue XXXXXX ,882 (6,669) SLRH AP XXXXXX6421 3,030 (1,537) 6,669 (4,450) 3, SLRH Payroll XXXXXX (4,398) 4, SLRH FSA XXXXXX SFMC Lockbox XXXXXX ,784 49,596 (59,894) SFMC Gross Revenue XXXXXX ,894 (59,076) 1, SFMC AP XXXXXX ,242 4 (8,050) 59,076 (40,178) 22, SFMC Payroll XXXXXX (12,738) 12, SFMC FSA XXXXXX SFMC Cafeteria Deposits XXXXXX SFMC Capitation (AppleCare) XXXXXX (1,148) 1, SFMC Capitation (Conifer) XXXXXX (216) SFMC Capitation AC XXXXXX (0) SFMC Capitation HCLA XXXXXX (18) SFMC Career College XXXXXX (0) SVMC Lockbox XXXXXX ,003 (16,998) SVMC Gross Revenue XXXXXX ,998 (16,507) 1, SVMC AP XXXXXX6426 6,329 (6,676) 16,507 (9,558) 6, SVMC Payroll XXXXXX (9,333) 9, SVMC FSA XXXXXX SVMC Capitation (CHP) XXXXXX (1) SVMC Capitation (Conifer) XXXXXX (82) SVMC Restricted Cash 3 XXXXXX0989 1, ,232 1 SMC Lockbox XXXXXX ,154 (16,987) SMC Gross Revenue XXXXXX3887 3,049 16,987 (18,887) 1, SMC AP XXXXXX6365 2,185 (4,505) 18,887 (9,157) 7, SMC Payroll XXXXXX3001 1,333 (9,253) 9,157 1, SMC FSA XXXXXX SMCC Lockbox XXXXX (252) 2 97 SMCC Gross Revenue XXXXXX (276) SMCC AP XXXXXX6384 1,237 (139) 276 1, SMCC FSA XXXXXX SMCC Patient Trust XXXXX (3)

4 Verity Bank Account Summary For month ending 10/31/2018 $ in 000's Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 4 of 70 Total Transaction Count Bank Account Name OCH Foundation 3 XXXXXX3433 1, ,480 6 OCH Foundation Investment 3 XXXXX SLRH Foundation 3 XXXXXX (0) SFMC of Lynwood Foundation 3 XXXXXX ,262 6 SVMC Foundation 3 XXXXXX SVMC Foundation EWB 3 XXXXXX St. Vincent Dialysis Center XXXXXX , SMC Foundation 3 XXXXXX2260 5, (1) 117 5,793 6 SMC Foundation SVCS 3 XXXXXX (25) VBS AP XXXXXX6402 1,099 (1,127) 3,000 (1,628) 1, VBS Payroll XXXXXX (1,638) 1, VBS FSA XXXXXX VMF Checking XXXXXX9996 8,023 7,696 (10,238) 2,000 7,480 3,009 VMF Payroll ZBA XXXXXX (7) 2 VH AP XXXXXX (304) VH MOB XXXXXX (300) VH Operating XXXXXX1970 8,512 (390) 0 (2,000) 6,123 3 VH Savings XXXXXX (0) (0) (0) 3 SMCC Patient Trust TCB XXXXXX3611 SMC Foundation TCB 3 XXXXXX (117) 1 Ending Bank Balance Operating Disbursements Sweep Inflows Sweep Outflows DIP Inflows 2 DIP Outflows 2 I/C Inflows I/C Outflows Total Receipts Bank Account Number Beg Balance Subtotal $ 111,171 $ 121,456 $ (126,601) $ 244,700 $ (244,700) $ $ $ 90,514 $ (90,514) $ 106,026 11,928 Notes 1) Sweep inflows and outflows reflect sweeps between lockbox, gross revenue and AP accounts of the same debtor. 2) In addition to the above DIP inflows and outflows activity illustrated, Verity also submits its cash inflows to the Debtors' DIP Lender Ally Bank on a daily basis even when there is no DIP balance outstanding. When this occurs, Ally Bank returns the funds to Verity. To the extent funds are sent to and received from Ally Bank in the same month in the case of a zero DIP balance, the transfers will net out to zero. 3) This bank account contains certain funds that are donor restricted, and therefore, are not available for the Debtor s general operating activities. Please refer to the attached restricted funds schedule for additional restricted funds recorded by the Debtors that are not included in the Verity bank account summary as they are not part of the cash management program. 4

5 Verity Bank Account Cumulative Summary For the two months ending 10/31/2018 (including 8/31/2018 activity) $ in 000's Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 5 of 70 Total Transaction Count Ending Bank Balance Operating Disbursements Sweep Inflows Sweep Outflows DIP Inflows 2 DIP Outflows 2 I/C Inflows I/C Outflows Total Receipts Debtor Debtor Name 1 Case # Beg Balance Verity Health System of California, Inc $ 7,529 $ 385 $ (58,610) $ $ $ 40,000 $ (40,000) $ 78,264 $ (14,764) $ 12, O'Connor Hospital ,981 43,828 (29,812) 88,399 (88,399) 22,013 (33,094) 11,917 3,019 St. Louise Regional Hospital ,978 13,495 (9,777) 27,228 (27,228) 7,412 (10,668) 4,439 2,037 St. Francis Medical Center , ,065 (39,789) 203,158 (203,158) 27,193 (73,847) 25,700 3,188 St. Vincent Medical Center ,936 32,829 (27,529) 64,753 (64,753) 16,154 (21,180) 10,208 2,426 Seton Medical Center ,884 36,040 (25,368) 70,776 (70,776) 20,019 (24,925) 11,650 3,186 O'Connor Hospital Foundation , , St. Louise Regional Hospital Foundation (1) St. Francis Medical Center of Lynwood Foundation , St. Vincent Medical Center Foundation , , St. Vincent Dialysis Center, Inc (7) 1, Seton Medical Center Foundation , (35) 117 (117) 6, Verity Business Services ,003 (4,718) 8,375 (3,275) 1, Verity Medical Foundation ,493 14,769 (19,367) 7,586 7,480 5,281 Verity Holdings, LLC ,778 1,091 (999) 3,945 (9,207) 7, Subtotal $ 76,048 $ 245,991 $ (216,012) $ 454,315 $ (454,315) $ 40,000 $ (40,000) $ 191,078 $ (191,078) $ 106,026 20,159 Notes 1) In our monthly submissions, De Paul Ventures, LLC and De Paul Ventures San Jose Dialysis, LLC are not included above because they do not have bank accounts. 2) In addition to the above DIP inflows and outflows activity illustrated, Verity also submits its cash inflows to the Debtors' DIP Lender Ally Bank on a daily basis even when there is no DIP balance outstanding. When this occurs, Ally Bank returns the funds to Verity. To the extent funds are sent to and received from Ally Bank in the same month in the case of a zero DIP balance, the transfers will net out to zero. 5

6 Verity Bank Account Cumulative Summary For the two months ending 10/31/2018 (including 8/31/2018 activity) $ in 000's Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 6 of 70 Total Transaction Count Ending Bank Balance Operating Disbursements Sweep Inflows Sweep Outflows DIP Inflows 2 DIP Outflows 2 I/C Inflows I/C Outflows Total Receipts Bank Account Number Beg Balance Bank Account Name VHS AP XXXXXX6440 $ 7,083 $ 341 $ (51,109) $ $ $ 40,000 $ (40,000) $ 70,200 $ (14,563) $ 11, VHS Self Insurance XXXXXX (200) 43 3 VHS Payroll XXXXXX (7,501) 8, VHS DIP Concentration Account XXXXXX2889 VHS DIP Loan Proceeds XXXXXX4358 OCH Lockbox XXXXXX ,826 (43,938) 76 1,626 OCH Gross Revenue XXXXXX3900 1,962 43,938 (44,461) 2 1, OCH AP XXXXXX6389 6,499 (8,047) 44,461 (33,092) 9, OCH Payroll XXXXXX (21,765) 22, OCH FSA XXXXXX OCH Patient Trust XXXXXX (2) 0 3 SLRH Lockbox XXXXXX ,493 (13,452) 65 1,300 SLRH Gross Revenue XXXXXX ,452 (13,776) SLRH AP XXXXXX6421 3,047 1 (2,444) 13,776 (10,668) 3, SLRH Payroll XXXXXX (7,333) 7, SLRH FSA XXXXXX SFMC Lockbox XXXXXX ,984 (101,855) SFMC Gross Revenue XXXXXX ,855 (101,303) 1, SFMC AP XXXXXX6407 7,314 4 (12,680) 101,303 (73,847) 22, SFMC Payroll XXXXXX (25,582) 25, SFMC FSA XXXXXX SFMC Cafeteria Deposits XXXXXX SFMC Capitation (AppleCare) XXXXXX (1,282) 1, SFMC Capitation (Conifer) XXXXXX (218) SFMC Capitation AC XXXXXX (2) SFMC Capitation HCLA XXXXXX (24) SFMC Career College XXXXXX (1) SVMC Lockbox XXXXXX ,821 (32,619) 215 1,154 SVMC Gross Revenue XXXXXX ,619 (32,134) 1, SVMC AP XXXXXX6426 6,943 (11,294) 32,134 (21,180) 6, SVMC Payroll XXXXXX (15,914) 16, SVMC FSA XXXXXX SVMC Capitation (CHP) XXXXXX (161) SVMC Capitation (Conifer) XXXXXX (159) SVMC Restricted Cash 3 XXXXXX0989 1, ,232 3 SMC Lockbox XXXXXX ,559 (35,295) 279 1,361 SMC Gross Revenue XXXXXX ,295 (34,517) 1, SMC AP XXXXXX6365 2,911 (7,116) 34,517 2,000 (24,901) 7, SMC Payroll XXXXXX3001 1,212 (17,969) 17,995 1, SMC FSA XXXXXX SMCC Lockbox XXXXX (476) SMCC Gross Revenue XXXXXX (489) SMCC AP XXXXXX6384 1,160 (276) 489 1, SMCC FSA XXXXXX SMCC Patient Trust XXXXX (7)

7 Verity Bank Account Cumulative Summary For the two months ending 10/31/2018 (including 8/31/2018 activity) $ in 000's Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 7 of 70 Total Transaction Count Bank Account Name OCH Foundation 3 XXXXXX3433 1, ,480 9 OCH Foundation Investment 3 XXXXX SLRH Foundation 3 XXXXXX (1) SFMC of Lynwood Foundation 3 XXXXXX , SVMC Foundation 3 XXXXXX SVMC Foundation EWB 3 XXXXXX St. Vincent Dialysis Center XXXXXX (7) 1, SMC Foundation 3 XXXXXX2260 5, (2) 117 5, SMC Foundation SVCS 3 XXXXXX (33) VBS AP XXXXXX (1,444) 5,100 (3,275) 1, VBS Payroll XXXXXX (3,275) 3, VBS FSA XXXXXX VMF Checking XXXXXX9996 4,493 14,755 (19,353) 7,586 7,480 5,277 VMF Payroll ZBA XXXXXX (14) 4 VH AP XXXXXX1597 1,106 (417) VH MOB XXXXXX1248 1,108 1,090 (1,701) VH Operating XXXXXX1970 8,321 (582) 3,645 (5,262) 6,123 9 VH Savings XXXXXX1975 2,243 1 (0) (2,244) (0) 7 SMCC Patient Trust TCB XXXXXX (24) 2 SMC Foundation TCB 3 XXXXXX (117) 3 Ending Bank Balance Operating Disbursements Sweep Inflows Sweep Outflows DIP Inflows 2 DIP Outflows 2 I/C Inflows I/C Outflows Total Receipts Bank Account Number Beg Balance Subtotal $ 76,048 $ 245,991 $ (216,012) $ 454,315 $ (454,315) $ 40,000 $ (40,000) $ 191,078 $ (191,078) $ 106,026 20,159 Notes 1) Sweep inflows and outflows reflect sweeps between lockbox, gross revenue and AP accounts of the same debtor. 2) In addition to the above DIP inflows and outflows activity illustrated, Verity also submits its cash inflows to the Debtors' DIP Lender Ally Bank on a daily basis even when there is no DIP balance outstanding. When this occurs, Ally Bank returns the funds to Verity. To the extent funds are sent to and received from Ally Bank in the same month in the case of a zero DIP balance, the transfers will net out to zero. 3) This bank account contains certain funds that are donor restricted, and therefore, are not available for the Debtor s general operating activities. Please refer to the attached restricted funds schedule for additional restricted funds recorded by the Debtors that are not included in the Verity bank account summary as they are not part of the cash management program. 7

8 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 8 of 70 Verity Health System of California, Inc. Bank Reconciliation Summary October 31, 2018 $ in 000's VHS AP / Self Insurance VHS Payroll VHS DIP Concentration Account VHS DIP Loan Proceeds Bank Account No. (last 4 digits) 6440 / Debtor Total Balance Per Bank $ 11,996 $ 808 $ $ $ 12,804 Additive Items: Deposits in Transit Other Additive Items Subtractive Items: Outstanding Checks (1,122) (578) (1,700) Other Subtractive Items (13) (13) Reclassifictions Negative book balance reclassed to AP Petty Cash Adjusted Bank Balance 10, ,091 GL Balance $ 10,874 $ 217 $ $ 11,091 Number of Outstanding Checks

9 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 9 of 70 O'Connor Hospital Bank Reconciliation Summary October 31, 2018 $ in 000's OCH AP OCH Payroll OCH Lockbox/GR OCH Patient Trust OCH FSA Petty Cash Total Bank Account No. (last 4 digits) / N/A Debtor Total Balance Per Bank $ 9,822 $ 453 $ 1,517 $ $ 125 $ 11,917 Additive Items: Deposits in Transit Other Additive Items Subtractive Items: Outstanding Checks (642) (290) (932) Other Subtractive Items (131) (131) Reclassifictions Reconciling item Petty Cash 3 3 Adjusted Bank Balance 9, , ,857 GL Balance $ 9,179 $ 163 $ 1,386 $ $ 125 $ 3 $ 10,857 Number of Outstanding Checks

10 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 10 of 70 Saint Louise Regional Hospital Bank Reconciliation Summary October 31, 2018 $ in 000's SLRH AP SLRH Payroll SLRH Lockbox/GR SLRH FSA Petty Cash Total Bank Account No. (last 4 digits) / N/A Debtor Total Balance Per Bank $ 3,712 $ 207 $ 487 $ 33 $ 4,439 Additive Items: Deposits in Transit Other Additive Items Subtractive Items: Outstanding Checks (458) (84) Other Subtractive Items Reclassifictions Negative book balance reclassed to AP Petty Cash 3 3 Adjusted Bank Balance 3, ,960 (542) GL Balance $ 3,259 $ 124 $ 542 $ 33 $ 3 $ 3,960 Number of Outstanding Checks

11 $ in 000's Debtor Total SFMC Career College Petty Cash Total SFMC AP SFMC Payroll Bank Account No. (last 4 digits) / 3924 / / N/A SFMC Capitation (AppleCare) SFMC Capitation HCLA / AC SFMC Capitation (Conifer) SFMC Lockbox/GR SFMC FSA Balance Per Bank $ 22,094 $ 587 $ 2,326 $ 198 $ 300 $ 79 $ 77 $ 39 $ 25,700 Additive Items: Deposits in Transit Other Additive Items Subtractive Items: St. Francis Medical Center Bank Reconciliation Summary October 31, 2018 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 11 of 70 Outstanding Checks (1,026) (372) (1,493) (2,403) (99) (5,393) Other Subtractive Items (4) (219) (155) (378) Reclassifictions Negative book balance reclassed to AP 1,348 2,169 3,517 Petty Cash 3 3 Adjusted Bank Balance 21, , (0) (0) ,944 GL Balance $ 21,064 $ 414 $ 2,107 $ 198 $ $ $ 115 $ 44 $ 3 $ 23,945 Number of Outstanding Checks ,488 11

12 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 12 of 70 St Vincent Medical Center Bank Reconciliation Summary October 31, 2018 $ in 000's Debtor Total SVMC Capitation (CHP) SVMC FSA SVMC Restricted Cash Petty Cash Total SVMC AP SVMC Payroll Bank Account No. (last 4 digits) / N/A SVMC Capitation (Conifer) SVMC Lockbox/GR Balance Per Bank $ 6,602 $ 221 $ 1,373 $ 396 $ 332 $ 52 $ 1,232 $ 10,208 Additive Items: Deposits in Transit Other Additive Items Subtractive Items: Outstanding Checks (723) (161) (52) (186) (1,123) Other Subtractive Items Reclassifictions Negative book balance reclassed to AP Petty Cash 4 4 Adjusted Bank Balance 5, , , ,160 GL Balance $ 5,879 $ 59 $ 1,445 $ 344 $ 146 $ 52 $ 1,232 $ 4 $ 9,160 Number of Outstanding Checks

13 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 13 of 70 Seton Medical Center Bank Reconciliation Summary October 31, 2018 $ in 000's Debtor Total AP Disbursement Payroll Lockbox/GR FSA Petty Cash Total Bank Account No. (last 4 digits) / N/A Balance Per Bank $ 7,410 $ 1,238 $ 1,427 $ 117 $ 10,192 Additive Items: Deposits in Transit Other Additive Items Subtractive Items: Outstanding Checks (676) (136) (811) Other Subtractive Items (384) (384) Reclassifictions Negative book balance reclassed to AP Petty Cash 4 4 Adjusted Bank Balance 6,735 1,109 1, ,212 GL Balance $ 6,735 $ 1,109 $ 1,247 $ 117 $ 4 $ 9,212 Number of Outstanding Checks

14 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 14 of 70 Seton Medical Center Coastside Bank Reconciliation Summary October 31, 2018 $ in 000's SMCC Lockbox/GR Patient Trust AP Disbursement Bank Account No. (last 4 digits) / SMCC Patient Trust TCB FSA Debtor Total Balance Per Bank $ 1,374 $ 42 $ 22 $ $ 19 $ 1,458 Additive Items: Deposits in Transit Other Additive Items 1 1 Subtractive Items: Outstanding Checks (24) (4) (28) Other Subtractive Items Reclassifictions Negative book balance reclassed to AP Petty Cash Adjusted Bank Balance 1, ,430 GL Balance $ 1,350 $ 43 $ 18 $ $ 19 $ 1,430 Number of Outstanding Checks

15 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 15 of 70 O'Connor Hospital Foundation Bank Reconciliation Summary October 31, 2018 $ in 000's OCH Foundation OCH Foundation Investment Bank Account No. (last 4 digits) Debtor Total Balance Per Bank $ 1,480 $ 242 $ 1,722 Additive Items: Deposits in Transit Other Additive Items Subtractive Items: Outstanding Checks Other Subtractive Items (0) (0) Reclassifictions Negative book balance reclassed to AP Petty Cash Adjusted Bank Balance 1, ,721 GL Balance $ 1,480 $ 242 $ 1,722 Number of Outstanding Checks 15

16 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 16 of 70 Saint Louise Regional Hospital Foundation Bank Reconciliation Summary October 31, 2018 $ in 000's Debtor Total Bank Account No. (last 4 digits) 2521 Balance Per Bank $ 727 Additive Items: Deposits in Transit Other Additive Items 4 Subtractive Items: Outstanding Checks Other Subtractive Items Reclassifictions Negative book balance reclassed to AP Petty Cash Adjusted Bank Balance 731 GL Balance $ 731 Number of Outstanding Checks 16

17 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 17 of 70 St. Francis Medical Center of Lynwood Foundation Bank Reconciliation Summary October 31, 2018 $ in 000's Debtor Total Bank Account No. (last 4 digits) 2809 Balance Per Bank $ 1,262 Additive Items: Deposits in Transit Other Additive Items Subtractive Items: Outstanding Checks Other Subtractive Items (23) Reclassifictions Negative book balance reclassed to AP Petty Cash Adjusted Bank Balance 1,239 GL Balance $ 1,239 Number of Outstanding Checks 17

18 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 18 of 70 St Vincent Medical Center Foundation Bank Reconciliation Summary October 31, 2018 $ in 000's Debtor Total Bank Account No. (last 4 digits) 3025 / 1162 Balance Per Bank $ 1,734 Additive Items: Deposits in Transit 49 Other Additive Items Subtractive Items: Outstanding Checks Other Subtractive Items Reclassifictions Negative book balance reclassed to AP Petty Cash Adjusted Bank Balance 1,783 GL Balance $ 1,783 Number of Outstanding Checks 18

19 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 19 of 70 St. Vincent Dialysis Center, Inc. Bank Reconciliation Summary October 31, 2018 $ in 000's Debtor Total Bank Account No. (last 4 digits) 8921 Balance Per Bank $ 1,178 Additive Items: Deposits in Transit Other Additive Items Subtractive Items: Outstanding Checks Other Subtractive Items (0) Reclassifictions Negative book balance reclassed to AP Petty Cash Adjusted Bank Balance 1,177 GL Balance $ 1,177 Number of Outstanding Checks 19

20 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 20 of 70 Seton Medical Center Foundation Bank Reconciliation Summary October 31, 2018 $ in 000's SMC Foundation SMC Foundation TCB SMC Foundation SVCS Bank Account No. (last 4 digits) Debtor Total Balance Per Bank $ 5,793 $ $ 420 $ 6,213 Additive Items: Deposits in Transit Other Additive Items Subtractive Items: Outstanding Checks Other Subtractive Items (117) (420) (537) Reclassifictions Negative book balance reclassed to AP Petty Cash Adjusted Bank Balance 6, ,120 GL Balance $ 6,003 $ 117 $ $ 6,120 Number of Outstanding Checks 20

21 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 21 of 70 Verity Business Services Bank Reconciliation Summary October 31, 2018 $ in 000's AP Disbursement Payroll FSA Bank Account No. (last 4 digits) Debtor Total Balance Per Bank $ 1,344 $ 16 $ 26 $ 1,385 Additive Items: Deposits in Transit Other Additive Items Subtractive Items: Outstanding Checks (188) (5) (193) Other Subtractive Items Reclassifictions Negative book balance reclassed to AP Petty Cash Adjusted Bank Balance 1, ,207 GL Balance $ 1,155 $ 26 $ 26 $ 1,207 Number of Outstanding Checks

22 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 22 of 70 Verity Medical Foundation Bank Reconciliation Summary October 31, 2018 $ in 000's VMF Checking VMF Payroll ZBA Petty CashTotal Bank Account No. (last 4 digits) Debtor Total Balance Per Bank $ 7,480 $ $ 7,480 Additive Items: Deposits in Transit Other Additive Items Subtractive Items: Outstanding Checks (141) (141) Other Subtractive Items Reclassifictions Negative book balance reclassed to AP Petty Cash 4 4 Adjusted Bank Balance 7, ,343 GL Balance $ 7,339 $ $ 4 $ 7,343 Number of Outstanding Checks

23 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 23 of 70 Verity Holdings, LLC Bank Reconciliation Summary October 31, 2018 $ in 000's AP Disbursement MOB Operating Saving Bank Account No. (last 4 digits) Debtor Total Balance Per Bank $ 989 $ 496 $ 6,123 $ $ 7,608 Additive Items: Deposits in Transit Other Additive Items 5 5 Subtractive Items: Outstanding Checks (112) (112) Other Subtractive Items (4) (4) Reclassifictions Negative book balance reclassed to AP Petty Cash Adjusted Bank Balance ,123 7,497 GL Balance $ 882 $ 493 $ 6,123 $ $ 7,498 Number of Outstanding Checks

24 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 24 of 70 Verity Health System, Inc. Notes on Bank Reconciliations October 31, De Paul Ventures, LLC and De Paul Ventures San Jose Dialysis, LLC have no bank accounts. Therefore, there is no bank activity reported on the Verity Bank Account Summary or on the Verity Bank Account Cumulative Summary, and accordingly no bank reconciliations. 2. In October 2018, the Debtors opened the VHS DIP Loan Proceeds bank account at Bank of America (last four digits of the account number are 4358). In October 2018, there was no activity in this account, therefore bank and book balances were both zero. 3. Included in the Bank Reconciliation Summary are two bank accounts that were closed in September and October, respectively: (i) Seton Medical Center Coastside SMCC Patient Trust TCB (Bank Account No. (last 4 digits) 3611); and (ii) Seton Medical Center Foundation SMC Foundation TCB (Bank Account No. (last 4 digits) 8521). These closed accounts are included in the bank reconciliation summaries for consistency with the Verity Bank Account Cumulative Summary, which shows each account had a balance at the petition date and activity thereafter reflecting closure of the account. 24

25 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 25 of 70 Verity Status of Payments to Secured Creditors, Lessors, And Other Parties to Executory Contracts For the month ending 10/31/2018 $ in 000's # Creditor, Lessor, Etc. Secured Debt Holders Frequency of Payments (Mo/Qtr) Amount of Payment Postpetition Payments Not Made (Number) (A) Total Due Not Paid According to Postpetition Terms 1 Wells Fargo 2005 Bonds Monthly $1,226 2 US Bank 2015 Notes Monthly 1,044 3 Ally Bank (B) Various Verity MOB Financing, LLC Monthly US Bank 2017 Notes Monthly 254 Subtotal $3,685 Top 20 Vendors 1 Healthnow Administrative Services Various $6,744 2 Transamerica Various 5,121 3 Cardinal Health Various 3,466 4 Medline Industries, Inc. Various 2,961 5 Mckesson Specialty Care Distribution Various 2,216 6 Verity Medical Group Various 1,868 7 Lockton Companies LLC Various 1,840 8 San Jose Medical Clinic, Inc Various 1,688 9 Marillac Ltd. Various 1, Medtronic USA, Inc. Various 1, Sports, Orthopedic & Rehabilitation Associates Various 1, Boston Scientific Corp Various Sodexo, Inc & Affiliates Various Nantworks LLC Various American Red Cross Various Quadramed Corporation Various Zimmer USA Various Rightsourcing Inc Various Sagewell Healthcare Benefits Trust Various Delta Dental CA Various 438 Subtotal $35,815 Notes A) See Notes after XI. Questionnaire. B) In addition to the above DIP inflows and outflows activity illustrated, Verity also submits its cash inflows to the Debtors' DIP Lender Ally Bank on a daily basis even when there is no DIP balance outstanding. When this occurs, Ally Bank returns the funds to Verity. To the extent funds are sent to and received from Ally Bank in the same month in the case of a zero DIP balance, the transfers will net out to zero. 25

26 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS AND OTHER Main Document PARTIES TO EXECUTORY Page 26 CONTRACTS of 70 Creditor, Lessor, Etc. Frequency of Payments (Mo/Qtr) Amount of Payment PostPetition payments not made (Number) Total Due not paid according to postpetition terms SEE PRIOR PAGE TOTAL DUE: III. TAX LIABILITIES $ in 000's FOR THE REPORTING PERIOD $ in 000's: Gross Sales Subject to Sales Tax: $ 443 Total Wages Paid: $ 46,507 Total PostPetition Amounts Owing Amount Delinquent Federal Withholding $ 56 $ State Withholding 27 FICA Employee/Employer Share 953 State Unemployment 26 State Disability Insurance 1 Sales and Use 70 Real Property 470 Other: TOTAL $ 1,603 Date Delinquent Amount Due 26

27 Case IV. 2:18bk20151ER AGING OF ACCOUNTS Doc 945 PAYABLE Filed 11/30/18 AND PATIENT Entered RECEIVABLES 11/30/18 16:02:32 $ in 000's Desc Main Document Page 27 of 70 *Accounts Payable PostPetition Patient Receivables Combined Pre and Post Petition 30 days or less $ 8,120 $ 100, days , days , days 13,828 Over 120 days 42,465 TOTAL: $ 9,081 $ 202,693 V. INSURANCE COVERAGE General Liability Worker's Compensation Casualty Vehicle Others: Name of Carrier Amount of Coverage Policy Expiration Date See Schedule Attached Premium Paid Through (Date) Quarterly Period Ending (Date) VI. UNITED STATES TRUSTEE QUARTERLY FEES $ in 000's (TOTAL PAYMENTS) Total Disbursements Quarterly Fees Date Paid Amount Paid Quarterly Fees Still Owing 30Sep2018 $ 89,411 $ Oct2018 $ 898 $ 0 $ 898 $ 898 $ 0 See Notes after Section XI., Questionnaire. 27

28 Case 2:18bk20151ER VII SCHEDULE Doc 945 OF COMPENSATION Filed 11/30/18 PAID Entered TO INSIDERS 11/30/18 16:02:32 Desc Main Document Page 28 of 70 Debtor Account Used Aggregate Insider Compensation Paid Verity Health System of California, Inc. XXXXXX1785 $ 266,556 O Connor Hospital XXXXXX ,190 Saint Louise Regional Hospital XXXXXX ,848 St. Francis Medical Center XXXXXX ,817 St. Vincent Medical Center XXXXXX ,967 Seton Medical Center XXXXXX ,327 O Connor Hospital Foundation Saint Louise Regional Hospital Foundation St. Francis Medical Center of Lynwood Foundation St. Vincent Foundation St. Vincent Dialysis Center, Inc. Seton Medical Center Foundation Verity Business Services Verity Medical Foundation XXXXXX ,324 Verity Holdings, LLC DePaul Ventures, LLC DePaul Ventures San Jose Dialysis, LLC VIII SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS Debtor Account Used $ 551,029 Aggregate Insider Other Amounts Paid (a) Verity Health System of California, Inc. $ O Connor Hospital XXXXXX ,377 Saint Louise Regional Hospital XXXXXX ,000 St. Francis Medical Center XXXXXX ,468 St. Vincent Medical Center XXXXXX ,904 Seton Medical Center XXXXXX ,130 O Connor Hospital Foundation Saint Louise Regional Hospital Foundation St. Francis Medical Center of Lynwood Foundation St. Vincent Foundation St. Vincent Dialysis Center, Inc. Seton Medical Center Foundation Verity Business Services Verity Medical Foundation Verity Holdings, LLC DePaul Ventures, LLC DePaul Ventures San Jose Dialysis, LLC $ 111,879 (a) For the Hospital Debtors, amounts represent payments made by the Hospitals to physician board members associated with medical directorships and oncall coverage provided. Such payments are not associated with services provided as a board member. 28

29 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 29 of 70 VERITY HEALTH SYSTEM CONSOLIDATING BALANCE SHEET UNAUDITED AS OF OCTOBER 31, 2018 (In thousands) DePaul Ventures (Includes DePaul Ventures San Jose Dialysis, LLC) Verity Business Services NonDebtor A Obligated Group Subtotal System Elimination Obligated Group System Office (Verity Health System of CA, Inc.) Seton Medical Center Coastside (Seton Medical Center) Seton Medical Center St. Vincent Medical Center St. Francis Medical Center Saint Louise Regional Hospital O'Connor Hospital ASSETS CURRENT ASSETS: Cash and cash equivalents $ 10,860 $3,960 $ 23,945 $ 7,929 $ 9,221 $ 1,431 $ 11,216 $ $ 68,562 $ 10,703 $ 1,208 $1 Net patient accounts receivable 45,817 16,064 56,244 32,262 39,896 5, ,474 Due from government agencies 1, ,283 3,819 1,700 17,148 Due from related organizations 13,154 5, ,529 9,930 17, ,331 (939,236) 52,773 32,850 3,011 Other current assets 12,917 4,581 26,012 18,872 8, ,894 83,083 7, Other restricted assets Total current assets 83,814 30, ,013 72,812 77,086 7, ,441 (939,236) 417,040 18,405 34,247 3,515 ASSETS LIMITED AS TO USE: Other investments 3,094 3,094 35,750 Under bond indenture agreements 35,272 24,485 59,757 Total assets limited as to use 3,094 35,272 24,485 62,851 35,750 PROPERTY AND EQUIPMENT, Net 30,225 13,950 90,423 47,323 43, , ,852 1,644 OTHER LONGTERM ASSETS ,474 5, TOTAL ASSETS $ 114,609 $ 43,960 $ 608,625 $ 123,263 $ 155,864 $ 7,796 $ 622,369 $ (939,236) $ 737,250 $ 54,155 $ 35,891 $ 3,536 LIABILITIES AND NET (DEFICIT) ASSETS CURRENT LIABILITIES: Accounts payable $ 24,554 $ 5,234 $ 19,334 $ 24,536 $ 15,779 $ 421 $ 16,762 $ $ 106,620 $ 10 $ 5,424 $ Current portion of longterm debt, net of debt issuance costs , , , ,864 Due to government agencies ,574 1, ,710 Accrued expenses and other current liabilities 21,741 7,169 65,141 41,125 41,841 2, , ,140 16,950 6,894 Due to related organizations 283,960 77,528 2, , ,261 25, ,820 (939,236) 127,505 21,640 2 Total current liabilities 331,190 90,402 93, , ,678 28, ,438 (939,236) 710,839 16,960 33,958 2 OTHER LIABILITIES Pension and other longterm liabilities 41,565 4,563 78,439 59,748 2, , ,651 32,365 Total other liabilities 41,565 4,563 78,439 59,748 2, , ,651 32,365 LONGTERM DEBT, Net of current portion and debt issuance costs 47,507 28,776 63,436 53,181 96,351 39, ,823 Total liabilities 420, , , , ,511 28, ,839 (939,236) 1,273,313 49,325 33,958 2 NET (DEFICIT) ASSETS: Unrestricted (305,653) (79,781) 373,297 (341,638) (187,647) (20,559) 22,530 (539,451) 4,830 1,933 3,534 Temporarily restricted Permanently restricted 2,795 2,795 Total net (deficit) assets (305,653) (79,781) 373,367 (338,320) (187,647) (20,559) 22,530 (536,063) 4,830 1,933 3,534 TOTAL LIABILITIES AND NET (DEFICIT) ASSETS $ 114,609 $ 43,960 $ 608,625 $ 123,263 $ 155,864 $ 7,796 $ 622,369 $ (939,236) $ 737,250 $ 54,155 $ 35,891 $ 3,536 29

30 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 30 of 70 VERITY HEALTH SYSTEM CONSOLIDATING BALANCE SHEET UNAUDITED AS OF OCTOBER 31, 2018 (In thousands) ASSETS CURRENT ASSETS: Cash and cash equivalents Net patient accounts receivable Due from government agencies Due from related organizations Other current assets Other restricted assets Total current assets ASSETS LIMITED AS TO USE: Other investments Under bond indenture agreements Total assets limited as to use PROPERTY AND EQUIPMENT, Net OTHER LONGTERM ASSETS TOTAL ASSETS LIABILITIES AND NET (DEFICIT) ASSETS CURRENT LIABILITIES: Accounts payable Current portion of longterm debt, net of debt issuance costs Due to government agencies Accrued expenses and other current liabilities Due to related organizations Total current liabilities OTHER LIABILITIES Pension and other longterm liabilities Total other liabilities LONGTERM DEBT, Net of current portion and debt issuance costs Total liabilities NET (DEFICIT) ASSETS: Unrestricted Temporarily restricted Permanently restricted Total net (deficit) assets TOTAL LIABILITIES AND NET (DEFICIT) ASSETS St. Vincent Dialysis Center Inc. Verity Medical Foundation O'Connor Hospital Foundation Seton Medical Center Foundation St. Francis Medical Center of Lynwood Foundation Saint Louise Regional Hospital Foundation St. Vincent Foundation Verity Holdings, LLC NonDebtor B System Elimination Non Obligated Group Verity Total $1,177 $ 7,343 $ 233 $ 556 $ 208 $ 168 $ 190 $ 8,328 $ 15 $ $ 98, , ,694 17,148 2,230 3, ,501 72,238 (179,359) 30 3, , , (7,742) 92,994 1,439 1,439 4,356 20, , ,529 82, (187,101) 412,967 1,488 5,565 1, ,195 51,686 59,757 1,488 5,565 1, , , ,368 22, ,344 2, (1,188) 8,305 $ 4,562 $ 28,451 $ 1,735 $ 6,234 $ 4,594 $ 775 $ 19,672 $ 105,478 $ 15 $ (188,289) $ 814,059 $ $ 6,385 $ $ $ $ $ $ 1,410 $ $ $ 119, ,980 4, , ,705 (8,911) 338,327 8,478 7,283 1,026 8,856 5, (1,300) (179,359) 8,566 20,841 7,283 1,026 8,856 5, ,931 (188,270) 629,866 2, ,651 (19) 285,481 2, ,651 (19) 285, , ,968 8,566 23,510 7,352 1,026 8,856 5, ,727 (188,289) 1,355,315 (4,004) 4,941 (6,871) (280) (8,334) (4,863) 11,968 (27,688) 15 (564,270) 919 2,770 4, ,422 1,439 14, ,718 2,437 8,285 (4,004) 4,941 (5,617) 5,208 (4,262) (4,349) 18,827 (26,249) 15 (541,256) $ 4,562 $ 28,451 $ 1,735 $ 6,234 $ 4,594 $ 775 $ 19,672 $ 105,478 $ 15 $ (188,289) $ 814,059 30

31 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 31 of 70 VERITY HEALTH SYSTEM STATEMENT OF OPERATIONS UNAUDITED FOR THE MONTH ENDED October 31, 2018 (In thousands) DePaul Ventures (Includes DePaul Ventures San Jose Dialysis, LLC) Verity Business Services NonDebtor A Obligated Group Subtotal System Elimination Obligated Group System Office (Verity Health System of CA, Inc.) Seton Medical Center Coastside (Seton Medical Center) Seton Medical Center St. Vincent Medical Center St. Francis Medical Center Saint Louise Regional Hospital O'Connor Hospital UNRESTRICTED REVENUES AND OTHER SUPPORT: Net patient service revenue $ 21,920 $ 7,189 $ 34,480 $ 14,856 $ 16,170 $ 2,045 $ $ (1,501) $ 95,159 $ $ $ Provision for doubtful accounts (567) (361) (1,649) (1,407) (921) (79) (4,984) Net patient service revenue less provision for doubtful accounts 21,353 6,828 32,831 13,449 15,249 1,966 (1,501) 90,175 Premium revenue 8,903 2,798 (28) 11,673 Other revenue ,459 (13,454) 1,029 1,115 4,072 Contributions Total unrestricted revenues and other support 21,769 6,859 42,192 16,454 15,436 2,015 13,459 (14,983) 103,201 1,115 4,072 EXPENSES: Salaries and benefits 13,605 4,867 18,606 9,172 12,985 1,534 4,805 (1,501) 64,073 2,325 Supplies 3, ,777 3,709 2, , Purchased services, medical claims and other 8,189 2,646 17,167 9,457 6, ,100 (13,482) 37,848 1,189 1,695 2 Depreciation and amortization , Interest, net ,739 3,027 Total expenses 25,649 8,505 40,584 23,057 22,572 2,244 13,705 (14,983) 121,333 1,189 4,072 2 OPERATING (LOSS) INCOME (3,880) (1,646) 1,609 (6,602) (7,136) (230) (247) (18,132) (74) (2) INVESTMENT INCOME (LOSS) EXCESS (DEFICIT) OF REVENUES OVER EXPENSES $ (3,880) $ (1,646) $ 1,609 $ (6,602) $ (7,136) $ (230) $ $ $ (17,885) $ (28) $ $ (2) 31

32 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 32 of 70 VERITY HEALTH SYSTEM STATEMENT OF OPERATIONS UNAUDITED FOR THE MONTH ENDED October 31, 2018 (In thousands) UNRESTRICTED REVENUES AND OTHER SUPPORT: Net patient service revenue Provision for doubtful accounts Net patient service revenue less provision for doubtful accounts Premium revenue Other revenue Contributions Total unrestricted revenues and other support EXPENSES: Salaries and benefits Supplies Purchased services, medical claims and other Depreciation and amortization Interest, net Total expenses OPERATING (LOSS) INCOME INVESTMENT INCOME (LOSS) EXCESS (DEFICIT) OF REVENUES OVER EXPENSES St. Vincent Dialysis Center Inc. Verity Medical Foundation O'Connor Hospital Foundation Seton Medical Center Foundation St. Francis Medical Center of Lynwood Foundation Saint Louise Regional Hospital Foundation St. Vincent Foundation Verity Holdings, LLC NonDebtor B System Elimination Non Obligated Group Verity Total $ 422 $ 4,605 $ $ $ $ $ $ $ $ (105) $ 100, (86) (5,057) 435 4,519 (105) 95,024 1,596 13,269 1,026 1,187 (6,763) 1, , ,367 (6,868) 110, , (658) 69, , , , ,348 (6,210) 44, , , , ,154 (6,868) 136,575 (33) (6,979) (18) (3) (38) (16) 28 (785) (26,052) $ (32) $ (6,979) $ (17) $ 2 $ (37) $ (15) $ 29 $ (245) $ $ $ (25,209) 32

33 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 33 of 70 VERITY HEALTH SYSTEM STATEMENT OF OPERATIONS UNAUDITED FOR THE TWO MONTHS ENDED OCTOBER 31, 2018 (In thousands) DePaul Ventures (Includes DePaul Ventures San Jose Dialysis, LLC) Verity Business Services NonDebtor A Obligated Group Subtotal System Elimination Obligated Group System Office (Verity Health System of CA, Inc.) Seton Medical Center Coastside (Seton Medical Center) Seton Medical Center St. Vincent Medical Center St. Francis Medical Center Saint Louise Regional Hospital O'Connor Hospital UNRESTRICTED REVENUES AND OTHER SUPPORT: Net patient service revenue $ 40,657 $ 13,615 $ 64,958 $ 29,386 $ 30,789 $ 3,962 $ $ (2,729) $ 180,638 $ $ $ Provision for doubtful accounts (1,353) (630) (2,545) (2,748) (1,316) (123) (8,715) Net patient service revenue less provision for doubtful accounts 39,304 12,985 62,413 26,638 29,473 3,839 (2,729) 171,923 Premium revenue 15,960 5,673 (99) 21,534 Other revenue ,983 (24,976) 1,633 2,194 8,340 Contributions Total unrestricted revenues and other support 40,038 13,028 79,161 32,578 29,701 3,941 24,983 (27,804) 195,626 2,194 8,340 EXPENSES: Salaries and benefits 26,410 9,484 37,275 18,261 24,864 2,937 9,140 (2,729) 125,642 4,932 Supplies 5,989 1,224 6,305 6,820 4, , Purchased services, medical claims and other 15,409 4,892 33,923 19,325 11,816 1,014 13,056 (25,075) 74,360 2,706 3,307 2 Depreciation and amortization 1, ,437 1, , Interest, net ,328 5,906 Total expenses 49,259 16,150 79,566 45,848 42,859 4,258 25,638 (27,804) 235,774 2,706 8,340 2 OPERATING (LOSS) INCOME (9,221) (3,122) (405) (13,270) (13,158) (317) (655) (40,148) (512) (2) INVESTMENT INCOME (LOSS) EXCESS (DEFICIT) OF REVENUES OVER EXPENSES $ (9,221) $ (3,122) $ (405) $ (13,270) $ (13,158) $ (317) $ 1 $ $ (39,492) $ (435) $ $ (2) 33

34 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 34 of 70 VERITY HEALTH SYSTEM STATEMENT OF OPERATIONS UNAUDITED FOR THE TWO MONTHS ENDED OCTOBER 31, 2018 (In thousands) UNRESTRICTED REVENUES AND OTHER SUPPORT: Net patient service revenue Provision for doubtful accounts Net patient service revenue less provision for doubtful accounts Premium revenue Other revenue Contributions Total unrestricted revenues and other support EXPENSES: Salaries and benefits Supplies Purchased services, medical claims and other Depreciation and amortization Interest, net Total expenses OPERATING (LOSS) INCOME INVESTMENT INCOME (LOSS) EXCESS (DEFICIT) OF REVENUES OVER EXPENSES St. Vincent Dialysis Center Inc. Verity Medical Foundation O'Connor Hospital Foundation Seton Medical Center Foundation St. Francis Medical Center of Lynwood Foundation Saint Louise Regional Hospital Foundation St. Vincent Foundation Verity Holdings, LLC NonDebtor B System Elimination Non Obligated Group Verity Total $ 781 $ 8,792 $ $ $ $ $ $ $ $ (226) $ 189,985 (101) (184) (9,000) 680 8,608 (226) 180,985 3,229 24,763 1,809 2,196 (13,428) 2, , , ,556 (13,654) 209, , (1,335) 136, ,514 (5) 18 28, , ,354 (12,320) 85, , ,410 7, , ,969 (13,655) 263,859 (169) (12,023) (36) (17) (76) (29) 95 (1,413) 1 (54,329) ,243 $ (168) $ (12,023) $ (34) $ (8) $ (74) $ (28) $ 98 $ (921) $ $ 1 $ (53,086) 34

35 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 35 of 70

36 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 36 of 70 Notes Creditor, Lessor, Etc. Not Paid According to Postpetition Terms Frequency of Payments (Mo/Qtr) PostPetition payments not made (Number) Total Due not paid according to postpetition terms Explanation None n/a n/a TOTAL DUE: 0.00 Quarterly Period Ending (Date) Debtor 30Sep2018 Verity Health System of VI. UNITED STATES TRUSTEE QUARTERLY FEES (TOTAL PAYMENTS 1st QUARTERLY PERIOD) Total Disbursements Quarterly Fees Date Paid Amount Paid Quarterly Fees Still Owing California, Inc. $ 22,164, $ 221, Oct2018 $ 221, $ 30Sep2018 O'Connor Hospital 11,484, , Oct , Sep2018 St. Louise Regional Hospital 3,841, , Oct , Sep2018 St. Francis Medical Center 17,618, , Oct , Sep2018 St. Vincent Medical Center 11,437, , Oct , Sep2018 Seton Medical Center 11,468, , Oct , Sep2018 O'Connor Hospital Foundation Oct Sep2018 St. Louise Regional Hospital Foundation Oct Sep2018 St. Francis Medical Center of Lynwood Foundation Oct Sep2018 St. Vincent Medical Center Foundation Oct Sep2018 St. Vincent Dialysis Center, Inc. 7, Oct Sep2018 Seton Medical Center Foundation 8, Oct Sep2018 Verity Business Services 1,952, , Oct , Sep2018 Verity Medical Foundation 9,121, , Oct , Sep2018 Verity Holdings, LLC 305, , Oct2018 4, Sep2018 De Paul Ventures, LLC Oct Sep2018 De Paul Ventures San Jose Dialysis, LLC Oct (A) $ 89,411, $ 898, $ 898, $ (A) The Debtors did not initially receive an invoice from the U.S. Trustee for quarterly fees for De Paul Ventures San Jose Dialysis, LLC. The Debtors have now received the invoice and have made the payment. 36

37 Verity Health System of California, Inc. Summary of Insurance As of 11/1/18 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 37 of 70 Premium Paid Through (Date) Policy Period Policy Number Limits of Liability # Insurance Coverage Carrier First Named Insured 6/30/2019 $1,000,000 Per Storage Tank Incident $2,000,000 Aggregate for ASTs $2,000,000 Aggregate for USTs $4,000,000 Aggregate Limit of Liability for All Storage Tank Incidents $2,000,000 Aggregate Limit of Liability for Legal Defense Expenses $6,000,000 Policy Aggregate 1 Storage Tank Liability ACE American Insurance Company (Chubb) O'Connor Hospital 6/30/186/30/19 G /1/187/1/19 ZMD $1,000,000,000 Loss Limit 6/30/2019 Verity Health System of California, Inc. 2 Commercial Property American Guarantee and Liability Insurance Company (Zurich) 12/31/2018 Workers' Compensation Statutory Employers Liability $1,000,000 BI Each Accident $1,000,000 BI Disease Each Employee $1,000,000 BI Disease Policy Limit 3 Workers' Compensation and Employers Liability Old Republic Insurance Company 7/1/187/1/19 MWC Verity Health System of California, Inc. 10/1/2019 $1,000,000 Per Storage Tank Incident $1,000,000 Aggregate for ASTs $1,000,000 Aggregate for USTs $2,000,000 Aggregate Limit of Liability for All Storage Tank Incidents $1,000,000 Aggregate Limit of Liability for Legal Defense Expenses $3,000,000 Policy Aggregate 4 Storage Tank Liability ACE American Insurance Company (Chubb) 10/1/1810/1/19 UST G St. Vincent Medical Center; Saint Louise Regional Hospital; Seton Medical Center 10/1/1810/1/ $1,000,000 Combined Single Limit 10/1/2019 Verity Health System of California, Inc. 5 Commercial Automobile National Union Fire Insurance Company of Pittsburgh, PA (AIG) 10/1/2019 $10,000,000 Each Occurrence $10,000,000 ProductsCompleted Operations Aggregate $10,000,000 Personal Injury and Advertising Injury Aggregate $10,000,000 Hangarkeepers Any One Occurrence $10,000,000 Hangarkeepers Any One Aircraft $10,000,000 NonOwned Aircraft Liability Any One Occurrence 6 Helipad Liability & NonOwned Aircraft Liability ACE Property and Casualty Insurance Company (Chubb) 10/1/1810/1/19 AAP N Verity Health System of California, Inc. 10/1/1810/1/19 GLOPR $2,000,000 Any One Victim and in the Aggregate 10/1/2019 St. Francis Medical Center (Children's Counseling Center Agreement) 7 Sexual Misconduct and Molestation Liability Lloyds of London (Beazley Syndicates #2623/#623) 10/1/2019 $10,000,000 D&O Liability and EPL (Shared) $10,000,000 Fiduciary Liability $10,000,000 Crime $20,000,000 Policy Aggregate 8 D&O Liability, Employment Practices Liability, Fiduciary Liability, Crime National Union Fire Insurance Company of Pittsburgh, PA (AIG) /1/1710/1/18 (Extended to 10/1/19) Verity Health System of California, Inc. BLX $10,000,000 Excess of $10,000,000 10/1/ /1/1710/1/18 (Extended to 10/1/19) 9 D&O Liability and Employment Practices Liability Endurance Risk Solutions Assurance Company Verity Health System of California, Inc. 37

38 Verity Health System of California, Inc. Summary of Insurance As of 11/1/18 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 38 of 70 Premium Paid Through (Date) Policy Period Policy Number Limits of Liability # Insurance Coverage Carrier First Named Insured 10/1/2019 $10,000,000 Excess of $20,000,000 (D&O Liaiblity Only) 10 D&O Liability Only Argonaut Insurance Company (ARGO Group) MLX /1/1710/1/18 (Extended to 10/1/19) Verity Health System of California, Inc. 10/1/ $2,000,000 Excess of $30,000,000 10/1/2019 Verity Health System of California, Inc. 11 D&O Liability Excess Side A Only National Union Fire Insurance Company of Pittsburgh, PA (AIG) 10/1/2019 $10,000,000 Each Occurence $10,000,000 Aggregate 12 Punititve Damages Wrap American International Reinsurance Company, Ltd /1/1710/1/18 (Extended to 10/1/19) Verity Health System of California, Inc. MCEN $10,000,000 Excess of $10,000,000 10/1/ /1/1710/1/18 (Extended to 13 Punititve Damages Wrap Magna Carta Insurance, Ltd. 10/1/19) Verity Health System of California, Inc. 12/2/2018 $1,000,000 Per Storage Tank Incident $1,000,000 Aggregate Limit of Liability for All Storage Tank Incidents $1,000,000 Aggregate Limit of Liability for Legal Defense Expenses $2,000,000 Policy Aggregate 14 Storage Tank Liability ACE American Insurance Company (Chubb) 12/02/1712/02/18 G Saint Louise Regional Hospital/De Paul Health Center 12/5/2018 $1,000,000 Remediation Expense $1,000,000 Bodily Injury and Property Damage Resulting from Contamination $1,000,000 Defense Expense $1,000,000 Defense Expense Aggregate $2,000,000 Total Policy Aggregate 15 Storage Tank Liability Tokio Marine Specialty Insurance Company (Philadelphia) 12/05/1712/05/18 STEP St. Francis Medical Center 3/31/2019 $1,000,000 Each Occurrence $1,000,000 Personal Injury & Advertising Injury $1,000,000 Products/Completed Operations Aggregrate $3,000,000 General Aggregate 16 General Liability Illinois Union Insurance Company (Chubb) 3/31/183/31/19 HPL G A 011 St. Francis Medical Center (Lynwood Parking Agreement) 1/1/2019 Per Scheduled Provider $1,000,000 Each Claim; $3,000,000 Aggregate Physicians Professional Liability 17 Professional Liability NORCAL Mutual Insurance Company 1/1/181/1/ N The Contracted Physicians of O'Connor Hospital 1/1/2019 Per Scheduled Provider $1,000,000 Each Claim; $3,000,000 Aggregate $2,000,000 Each Claim; $4,000,000 Aggregate 18 Professional Liability NORCAL Mutual Insurance Company 1/1/181/1/ N The Contracted Physicians of St. Francis Medical Center 12/31/2018 Professional Liability $2,000,000 Each Claim and Aggregate Buffer Layer xs of $3,000,000 Each Claim $10,000,000 Aggregate General Liability $2,000,000 Each Occurrence $10,000,000 Aggregate Captive 19 Professional and General Liability Marillac Insurance Company, Ltd. 3/31/183/31/19 DOC PLGL Verity Health System of California, Inc. 38

39 Verity Health System of California, Inc. Summary of Insurance As of 11/1/18 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 39 of 70 Premium Paid Through (Date) # Insurance Coverage Carrier Policy Period Policy Number Limits of Liability First Named Insured 3/31/ Excess Professional and Umbrella Liability Marillac Insurance Company, Ltd. Excess Professional Liability $80,000,000 Each Occurence $80,000,000 Aggregate All Other Liability $80,000,000 Each Claim $80,000,000 Aggregate 3/31/183/31/19 DOC XL PLGL Verity Health System of California, Inc. 12/31/ Workers Compensation Deductible Liability Protection Marillac Insurance Company, Ltd. Workers' Compensation $500,000 Each Occurrence Employers Liability $500,000 Each Occurrence 7/1/187/1/19 DED.WC Verity Health System of California, Inc. 3/31/2019 Reinsurance 22 Lead Excess Layer ACE American Insurance Company (Chubb) $15,000,000 Each Loss Event $15,000,000 Aggregate Professional Liability $15,000,000 Aggregate General Liability of Ceding Company Limits 3/31/183/31/19 RBN G Verity Health System of California, Inc. 3/31/ nd Excess Layer Continental Casualty Company (CNA) $15,000,000 Each Claim $15,000,000 Aggregate Professional Liability $15,000,000 Aggregate General Liability Excess of Chubb Underlying Above 3/31/183/31/19 HMU Verity Health System of California, Inc. 3/31/ rd Excess Layer Berkshire Hathaway Specialty Insurance Company $20,000,000 Each Claim $20,000,000 Aggregate Professional Liability $20,000,000 Aggregate General Liability Excess of Chubb and CNA Underlying Above 3/31/183/31/19 47RHC Verity Health System of California, Inc. 3/31/ th Excess Layer Zurich American Insurance Company $10,000,000 Each Claim $10,000,000 Aggregate Professional Liability $10,000,000 Aggregate General Liability Excess of Chubb, CNA and Berkshire Underlying Above 3/31/183/31/19 HPC Verity Health System of California, Inc. 3/31/ th Excess Layer The Medical Protective Company $20,000,000 Each Claim $20,000,000 Aggregate Professional Liability $20,000,000 Aggregate General Liability Excess of Chubb, CNA, Berkshire and Zurich Underlying Above 3/31/183/31/19 XOL Verity Health System of California, Inc. 12/1/0112/1/18 83BSBBF7598 $75,000 Bond Amount 12/1/2018 Surety Bonds 27 CA DHS Patient Trust Bond Hartford Fire Insurance Company Seton Medical Center Coastside 12/1/0112/1/18 83BSBBF7621 $5,000 Bond Amount 12/1/ CA DHS Patient Trust Bond Hartford Fire Insurance Company St. Francis Medical Center 12/1/0112/1/18 83BSBBF7625 $2,000 Bond Amount 12/1/ CA DHS Patient Trust Bond Hartford Fire Insurance Company St. Vincent Medical Center 12/1/0112/1/18 83BSBBF7637 $10,000 Bond Amount 12/1/ CA DHS Patient Trust Bond Hartford Fire Insurance Company Saint Louise Regional Hospital 39

40 Verity Health System of California, Inc. Summary of Insurance As of 11/1/18 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 40 of 70 Premium Paid Through (Date) Policy Period Policy Number Limits of Liability First Named Insured # Insurance Coverage Carrier 31 CA DHS Patient Trust Bond Hartford Fire Insurance Company O'Connor Hospital 12/1/0112/1/18 83BSBBF7648 $50,000 Bond Amount 12/1/ CA DHS Patient Trust Bond Hartford Fire Insurance Company Seton Medical Center 12/1/0112/1/18 83BSBBF7661 $35,000 Bond Amount 12/1/2018 Provider Capitation Stop Loss (Managed Care Excess Loss) 11/1/2018 $1,000,000 Maximum Benefit Per Covered Person 90% Payable in Excess of Specific Deductible if Complete Claim is Received by 2/1/20 50% Payable in Excess of Specific Deductible if Complete Claim is Not Received by 2/1/20 Transplant Services 50% by a NonApproved Transplant Network Provider 1/1/181/1/19 P Verity Health System of California, Inc. PartnerRe America Insurance Company Provider Capitation Stop Loss (Applicable to St. Vincent Medical Center and St. Francis Medical Center) 33 40

41 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 41 of 70 Verity Health System Postpetition Debtors Cash Flow Chart as of 10/31/2018 Bank of America Lockbox Accounts Bank of America Other Accounts (23) OCH Lockbox #XXXXX02945 VHS Self Insurance #XXXXX09250 Lockbox (6) SLRH Lockbox #XXXXX02926 Other Accounts VHS DIP Concentration #XXXXX12889 SFMC Lockbox #XXXXX02940 VHS DIP Loan Proceeds #XXXXX14358 (GRAA) SVMC Lockbox #XXXXX02964 OCH FSA #XXXXX12284 SMC Lockbox #XXXXX02902 OCH Patient Trust #XXXXX82662 SMCC Lockbox #XXXXX02907 SLRH FSA #XXXXX12307 SFMC FSA #XXXXX12487 SFMC Cafeteria Deposits #XXXXX11057 < Automatic Daily Sweep at 1900 EST SVMC FSA #XXXXX12062 SVMC Restricted Cash #XXXXX00989 (A) Bank of America Gross Rev Accounts SMC FSA #XXXXX12289 OCH Gross Revenue #XXXXX83900 SMCC Patient Trust #XXXXX12907 SLRH Gross Revenue #XXXXX83905 Gross Revenue (6) SMCC FSA #XXXXX12302 SFMC Gross Revenue #XXXXX83924 OCH Foundation #XXXXX03433 (A) SVMC Gross Revenue #XXXXX83929 SLRH Foundation #XXXXX22521 (A) (DACA) SMC Gross Revenue #XXXXX83887 SFMC of Lynwood Foundation #XXXXX02809 (A) SMCC Gross Revenue #XXXXX83882 SVMC Foundation #XXXXX03025 (A) St. Vincent Dialysis Center #XXXXX28921 SMC Foundation #XXXXX02260 (A) VBS FSA #XXXXX13192 < Automatic Sweep next day at 0700 EST VH MOB #XXXXX11248 VH Operating #XXXXX11970 Bank of America AP Accounts VH Savings #XXXXX11975 VHS AP #XXXXX86440 OCH AP #XXXXX86389 SLRH AP #XXXXX86421 Draws from Ally Revolving DIP Loan arrive at the VHS AP Account. The funds are then distributed to the other AP, Payroll, Capitation and VMF accounts. JP Morgan Revolver Account (Ally Bank) Manual Receipts Swept Daily Accounts Payable (9) SFMC AP #XXXXX86407 SVMC AP #XXXXX86426 SMC AP #XXXXX86365 SMCC AP #XXXXX86384 VBS AP #XXXXX86402 VH AP #XXXXX11597 Revolver Draws or return of collections in excess of loan balance Manual sweep of receipts to Ally account currently is sent through the VHS AP Account. On a daily basis the balance of the revolver, if any, is paid down in an amount equal to the aggregate amounts received through the lockboxes from the prior day. If revolver balance is $0, funds are returned to VHS AP. Other Accounts (6) SFMC Career College #XXXXX72162 OCH Foundation Investment #XXXXX2037 (A) SVMC Foundation EWB #XXXXX01162 (A) SMC Foundation SVCS #XXXXX60089 (A) SMC Foundation TCB 1 #XXXXXX8521 (A) SMCC Patient Trust TCB 2 #XXXXXX Account identified after petition date and closed in Oct SMCC Patient Trust account at TriCounties Bank was closed in Sept 2018 and transferred to SMCC Patient Trust account at BoA. VHS Payroll #XXXXX01785 SFMC Capitation (AppleCare) #XXXXX01371 OCH Payroll #XXXXX03007 SFMC Capitation (Conifer) #XXXXX01357 SLRH Payroll #XXXXX07575 SFMC Capitation AC #XXXXX01845 SFMC Payroll #XXXXX03012 SFMC Capitation HCLA #XXXXX01840 SVMC Payroll #XXXXX03017 SVMC Capitation (CHP) #XXXXX10553 DEFINITIONS: SMC Payroll #XXXXX03001 SVMC Capitation (Conifer) #XXXXX03695 GRAA Government Receivables Account Agreement VBS Payroll #XXXXX12982 DACA Deposit Account Control Agreement VMF Operating Wells Fargo #XXXXX19996 VMF Payroll ZBA Wells Fargo #XXXXX20010 Payroll (7) Capitation (6) Bank of America Payroll Accounts Bank of America Capitation Accounts Note: The current account structure and cash flow procedures as described above are subject to change in accordance with the Cash Management Order and the terms of the Debtors' DIP agreement with Ally Bank. (A) This bank account contains certain funds that are donor restricted, and therefore, are not available for the Debtor s general operating activities. Please refer to the attached Restricted Funds Schedule for additional restricted funds recorded by the debtors that are not included in the Postpetition Debtors Cash Flow Chart, as they are not part of the cash management program. 41

42 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 42 of 70 Verity Health System Debtor Bank Accounts As of 10/31/18 Number Group Bank Account Name Company Financial Institution Account Number Authorized Signers 1 Obligated Group VHS AP Verity Health System of California, Inc. Bank of America XXXXXX6440 Rich Adcock, CEO; Tony Armada, COO; Anita 2 Obligated Group VHS Self Insurance Verity Health System of California, Inc. Bank of America XXXXXX9250 Rich Adcock, CEO; Tony Armada, COO; Anita 3 Obligated Group VHS Payroll Verity Health System of California, Inc. Bank of America XXXXXX1785 Rich Adcock, CEO; Tony Armada, COO; Anita 4 Obligated Group 5 Obligated Group VHS DIP Concentration Account (formerly named Construction Escrow) Verity Health System of California, Inc. VHS DIP Loan Proceeds Verity Health System of California, Inc. Bank of America XXXXXX2889 Rich Adcock, CEO; Tony Armada, COO; Anita Bank of America XXXXXX4358 Rich Adcock, CEO; Tony Armada, COO; Anita 6 Obligated Group (C) OCH Lockbox O'Connor Hospital Bank of America XXXXXX2945 Rich Adcock, CEO; Tony Armada, COO; Anita 7 Obligated Group OCH Gross Revenue O'Connor Hospital Bank of America XXXXXX3900 Rich Adcock, CEO; Tony Armada, COO; Anita 8 Obligated Group OCH AP O'Connor Hospital Bank of America XXXXXX6389 Rich Adcock, CEO; Tony Armada, COO; Anita 9 Obligated Group OCH Payroll O'Connor Hospital Bank of America XXXXXX3007 Rich Adcock, CEO; Tony Armada, COO; Anita 10 Obligated Group OCH FSA O'Connor Hospital Bank of America XXXXXX2284 Rich Adcock, CEO; Tony Armada, COO; Anita 11 Obligated Group OCH Patient Trust O'Connor Hospital Bank of America XXXXXX2662 Rich Adcock, CEO; Tony Armada, COO; Anita 42

43 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 43 of 70 Verity Health System Debtor Bank Accounts As of 10/31/18 Number Group Bank Account Name Company Financial Institution Account Number Authorized Signers 12 Obligated Group SLRH Lockbox St. Louise Regional Hospital Bank of America XXXXXX2926 Rich Adcock, CEO; Tony Armada, COO; Anita 13 Obligated Group SLRH Gross Revenue St. Louise Regional Hospital Bank of America XXXXXX3905 Rich Adcock, CEO; Tony Armada, COO; Anita 14 Obligated Group SLRH AP St. Louise Regional Hospital Bank of America XXXXXX6421 Rich Adcock, CEO; Tony Armada, COO; Anita 15 Obligated Group SLRH Payroll St. Louise Regional Hospital Bank of America XXXXXX7575 Rich Adcock, CEO; Tony Armada, COO; Anita 16 Obligated Group SLRH FSA St. Louise Regional Hospital Bank of America XXXXXX2307 Rich Adcock, CEO; Tony Armada, COO; Anita 17 Obligated Group SFMC Lockbox St. Francis Medical Center Bank of America XXXXXX2940 Rich Adcock, CEO; Tony Armada, COO; Anita 18 Obligated Group SFMC Gross Revenue St. Francis Medical Center Bank of America XXXXXX3924 Rich Adcock, CEO; Tony Armada, COO; Anita 19 Obligated Group SFMC AP St. Francis Medical Center Bank of America XXXXXX6407 Rich Adcock, CEO; Tony Armada, COO; Anita 20 Obligated Group SFMC Payroll St. Francis Medical Center Bank of America XXXXXX3012 Rich Adcock, CEO; Tony Armada, COO; Anita 21 Obligated Group SFMC FSA St. Francis Medical Center Bank of America XXXXXX2487 Rich Adcock, CEO; Tony Armada, COO; Anita 22 Obligated Group SFMC Cafeteria Deposits St. Francis Medical Center Bank of America XXXXXX1057 Rich Adcock, CEO; Tony Armada, COO; Anita 43

44 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 44 of 70 Verity Health System Debtor Bank Accounts As of 10/31/18 Number Group Bank Account Name Company Financial Institution Account Number Authorized Signers 23 Obligated Group SFMC Capitation (AppleCare) St. Francis Medical Center Bank of America XXXXXX1371 Rich Adcock, CEO; Tony Armada, COO; Anita ; Eleanor Ramirez, SFMC CEO SFMC Capitation (Conifer) St. Francis Medical Center Bank of America XXXXXX1357 Rich Adcock, CEO; Tony Armada, COO; Anita 24 Obligated Group ; Eleanor Ramirez, SFMC CEO SFMC Capitation AC St. Francis Medical Center Bank of America XXXXXX1845 Rich Adcock, CEO; Tony Armada, COO; Anita 25 Obligated Group ; Eleanor Ramirez, SFMC CEO SFMC Capitation HCLA St. Francis Medical Center Bank of America XXXXXX1840 Rich Adcock, CEO; Tony Armada, COO; Anita 26 Obligated Group ; Eleanor Ramirez, SFMC CEO 27 Obligated Group SFMC Career College St. Francis Medical Center U S Bank XXXXXX2162 Need to Update Signers (A) 28 Obligated Group SVMC Lockbox St. Vincent Medical Center Bank of America XXXXXX2964 Rich Adcock, CEO; Tony Armada, COO; Anita 29 Obligated Group SVMC Gross Revenue St. Vincent Medical Center Bank of America XXXXXX3929 Rich Adcock, CEO; Tony Armada, COO; Anita 30 Obligated Group SVMC AP St. Vincent Medical Center Bank of America XXXXXX6426 Rich Adcock, CEO; Tony Armada, COO; Anita 31 Obligated Group SVMC Payroll St. Vincent Medical Center Bank of America XXXXXX3017 Rich Adcock, CEO; Tony Armada, COO; Anita 32 Obligated Group SVMC FSA St. Vincent Medical Center Bank of America XXXXXX2062 Rich Adcock, CEO; Tony Armada, COO; Anita 33 Obligated Group SVMC Capitation (CHP) St. Vincent Medical Center Bank of America XXXXXX0553 Rich Adcock, CEO; Tony Armada, COO; Anita, Margaret Pfeiffer, SVMC COO 44

45 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 45 of 70 Verity Health System Debtor Bank Accounts As of 10/31/18 Number Group Bank Account Name Company Financial Institution Account Number Authorized Signers 34 Obligated Group SVMC Capitation (Conifer) St. Vincent Medical Center Bank of America XXXXXX3695 Rich Adcock, CEO; Tony Armada, COO; Anita, Margaret Pfeiffer, SVMC COO 35 Obligated Group SVMC Restricted Cash St. Vincent Medical Center Bank of America XXXXXX0989 Rich Adcock, CEO; Tony Armada, COO; Anita (B) 36 Obligated Group SMC Lockbox Seton Medical Center Bank of America XXXXXX2902 Rich Adcock, CEO; Tony Armada, COO; Anita 37 Obligated Group SMC Gross Revenue Seton Medical Center Bank of America XXXXXX3887 Rich Adcock, CEO; Tony Armada, COO; Anita 38 Obligated Group SMC AP Seton Medical Center Bank of America XXXXXX6365 Rich Adcock, CEO; Tony Armada, COO; Anita 39 Obligated Group SMC Payroll Seton Medical Center Bank of America XXXXXX3001 Rich Adcock, CEO; Tony Armada, COO; Anita 40 Obligated Group SMC FSA Seton Medical Center Bank of America XXXXXX2289 Rich Adcock, CEO; Tony Armada, COO; Anita 41 Obligated Group SMCC Lockbox Seton Medical Center Bank of America XXXXX02907 Rich Adcock, CEO; Tony Armada, COO; Anita 42 Obligated Group SMCC Gross Revenue Seton Medical Center Bank of America XXXXXX3882 Rich Adcock, CEO; Tony Armada, COO; Anita 43 Obligated Group SMCC AP Seton Medical Center Bank of America XXXXXX6384 Rich Adcock, CEO; Tony Armada, COO; Anita 45

46 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 46 of 70 Verity Health System Debtor Bank Accounts As of 10/31/18 Number Group Bank Account Name Company Financial Institution Account Number Authorized Signers Bank of America XXXXXX2302 Rich Adcock, CEO; Tony Armada, COO; Anita SMCC FSA Seton Medical Center 44 Obligated Group Bank of America XXXXX12907 Rich Adcock, CEO; Tony Armada, COO; Anita 45 Obligated Group SMCC Patient Trust Seton Medical Center (B) OCH Foundation O'Connor Hospital Foundation Bank of America XXXXXX3433 Rich Adcock, CEO; Tony Armada, COO; Anita Charitable Foundation 46 (B) Ty Conner, Treasurer XXXXX2037 OCH Foundation Investment O'Connor Hospital Foundation Morgan Stanley Charitable Foundation 47 (B) Bank of America XXXXXX2521 Rich Adcock, CEO; Tony Armada, COO; Anita SLRH Foundation St. Louise Regional Hospital Foundation Charitable Foundation 48 (B) Bank of America XXXXXX2809 Rich Adcock, CEO; Tony Armada, COO; Anita St. Francis Medical Center Foundation SFMC of Lynwood Foundation Charitable Foundation 49 (B) Bank of America XXXXXX3025 Rich Adcock, CEO; Tony Armada, COO; Anita SVMC Foundation St. Vincent Medical Center Foundation Charitable Foundation 50 XXXXXX1162 Rich Adcock, CEO; and Ty Conner, Treasurer (B) EastWest Bank SVMC Foundation EWB St. Vincent Medical Center Foundation Charitable Foundation 51 St. Vincent Dialysis Center St. Vincent Dialysis Center Bank of America XXXXXX8921 Rich Adcock, CEO; Tony Armada, COO; Anita NonObligated Group 52 (B) SMC Foundation Seton Medical Center Foundation Bank of America XXXXXX2260 Rich Adcock, CEO; Tony Armada, COO; Anita Charitable Foundation 53 SMC Foundation SVCS Healy, James T/U/A Wells Fargo XXXXXX0089 Need to Update Signers (A) (B) Charitable Foundation 54 VBS AP Verity Business Services Bank of America XXXXXX6402 Rich Adcock, CEO; Tony Armada, COO; Anita NonObligated Group 55 46

47 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 47 of 70 Verity Health System Debtor Bank Accounts As of 10/31/18 Number Group Bank Account Name Company Financial Institution Account Number Authorized Signers 56 NonObligated Group VBS Payroll Verity Business Services Bank of America XXXXXX2982 Rich Adcock, CEO; Tony Armada, COO; Anita 57 NonObligated Group VBS FSA Verity Business Services Bank of America XXXXXX3192 Rich Adcock, CEO; Tony Armada, COO; Anita Physician Foundation Physician Foundation NonObligated Group VMF Checking Verity Medical Foundation Wells Fargo VMF Payroll ZBA Verity Medical Foundation Wells Fargo XXXXXX9996 Steve Campbell, CEO; Randall Roisman, CFO; and Fariba Shahbazi, Tony Armada XXXXXX0010 Steve Campbell, CEO; Randall Roisman, CFO; and Fariba Shahbazi, Tony Armada VH AP Verity Holdings LLC Bank of America XXXXXX1597 Rich Adcock, CEO; Tony Armada, COO; Anita 61 NonObligated Group VH MOB Verity Holdings LLC Bank of America XXXXXX1248 Rich Adcock, CEO; Tony Armada, COO; Anita 62 NonObligated Group VH Operating Verity Holdings LLC Bank of America XXXXXX1970 Rich Adcock, CEO; Tony Armada, COO; Anita 63 NonObligated Group VH Savings Verity Holdings LLC Bank of America XXXXXX1975 Rich Adcock, CEO; Tony Armada, COO; Anita Bank Account Closed Since the Petition Date 64 Obligated Group SMCC Patient Trust TCB Seton Medical Center Tri Counties Bank XXXXXX3611 Ty Conner, Treasurer 47

48 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 48 of 70 Verity Health System Debtor Bank Accounts As of 10/31/18 Number Group Bank Account Name Company Financial Institution Account Number Authorized Signers Bank Account Identified After the Petition Date (Closed 10/4/18) SMC Foundation TCB Seton Medical Center Foundation Tri Counties Bank XXXXXX8521 Need to Update Signers (A) (B) 65 (A) Authorized signors are in process of being updated to current signors on the other Debtor accounts. (B) This bank account contains certain funds that are donor restricted, and therefore, are not available for the Debtor s general operating activities. Please refer to the attached Restricted Funds schedule for additional restricted funds recorded by the Debtors that are not included in this schedule of Debtor Bank Accounts as they are not part of the cash management program. (C) New bank account opened in October 2018 to be used for DIP loan proceeds beginning in November

49 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 49 of 70 Verity Health System, Inc. Restricted Funds Schedule At September 30, 2018 and October 31, 2018 $ in 000's Last 4 of 9/30/ /31/2018 No. Debtor Name Institution Name Type of Account A/C Balance Balance Description of Restrictions 1R Verity Health System of California Wells Fargo Checking (Restricted Funds) 0300 $ 2,000 $ 2,000 Escrow Account funds held in trust under bond indenture; only trustee can authorize disbursements 2R Verity Health System of California Wells Fargo Checking (Restricted Funds) ,769 20,799 Debt Reserve Account funds held in trust under bond indenture; only trustee can authorize disbursements 3R Verity Health System of California Wells Fargo Checking (Restricted Funds) Debt Reserve Account funds held in trust under bond indenture; only trustee can authorize disbursements 4R Verity Health System of California Wells Fargo Checking (Restricted Funds) Debt Reserve Account funds held in trust under bond indenture; only trustee can authorize disbursements 5R Verity Health System of California Bank of America Certificate of Deposit n/a Certificate of Deposit Signatories are Rich Adcock, Anthony Armada, Anita Chou and Ty Connor 6R St. Vincent Foundation Green Oak Consulting Group Endowment Fund (Restricted Funds) a541a 3,174 3,174 Donor restricted funds controlled by third party; Debtor does not control disbursements from this account 7R St. Vincent Medical Center Northern Trust Endowment Fund (Restricted Funds) ,862 1,774 Donor restricted funds controlled by third party; Debtor does not control disbursements from this account 8R Seton Medical Center Wilmington Trust Checking Restricted 7000 Escrow Account funds held in trust under bond indenture; only trustee can authorize disbursements 9R Seton Medical Center Wilmington Trust Checking Restricted Escrow Account funds held in trust under bond indenture; only trustee can authorize disbursements 10R Seton Medical Center Wilmington Trust Checking Restricted 7002 Escrow Account only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. 11R Seton Medical Center Wilmington Trust Checking Restricted ,755 16,755 Escrow Account funds held in trust under bond indenture; only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. 12R Seton Medical Center Wilmington Trust Checking Restricted 7004 Escrow Account only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. 13R Seton Medical Center Wilmington Trust Checking Restricted 7005 Escrow Account only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. 14R Seton Medical Center Wilmington Trust Checking Restricted 7006 Escrow Account only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. 15R Seton Medical Center Wilmington Trust Checking Restricted 7007 Escrow Account only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. 16R Seton Medical Center Wilmington Trust Checking Restricted 1000 Escrow Account funds held in trust under bond indenture; only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. 17R Seton Medical Center Wilmington Trust Checking Restricted 1001 Escrow Account only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. 18R Seton Medical Center Wilmington Trust Checking Restricted 1002 Escrow Account only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. 49 (A)

50 Case 2:18bk20151ER Doc 945 Filed 11/30/18 Entered 11/30/18 16:02:32 Desc Main Document Page 50 of 70 Verity Health System, Inc. Restricted Funds Schedule At September 30, 2018 and October 31, 2018 $ in 000's Last 4 of 9/30/ /31/2018 No. Debtor Name Institution Name Type of Account A/C Balance Balance Description of Restrictions 19R Seton Medical Center Wilmington Trust Checking Restricted ,625 17,625 Escrow Account funds held in trust under bond indenture; only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. 20R Seton Medical Center Wilmington Trust Checking Restricted 1004 Escrow Account only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. 21R Seton Medical Center Wilmington Trust Checking Restricted 1005 Escrow Account only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. 22R Seton Medical Center Wilmington Trust Checking Restricted 1006 Escrow Account only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. 23R Seton Medical Center Wilmington Trust Checking Restricted 1007 Escrow Account only trustee can authorize disbursements to pay for seismicrelated expenditures for Seton Medical Center. (A) Green Oak Consulting historically has provided statements quarterly. Despite the Debtors requests for monthly statements, an October 31, 2018 statement has not been received. For purposes of this Monthly Operating Report, the Green Oak Consulting 10/31/2018 Balance reported is the 9/30/2018 Balance. 50

51 Case 2:18bk20151ER Doc Filed 11/19/18 11/30/18 Entered 11/19/18 11/30/18 16:08:48 16:02:32 Desc Main Document Page 51 1 of 270 Attorney or Party Name, Address, Telephone & FAX Nos., State Bar No. & Address Thomas J. Polis, Esq. (SBN ) POLIS & ASSOCIATES, APLC MacArthur Blvd., Suite 1000 Irvine, CA Tel: (949) Fax: (949) tom@polislaw.com FOR COURT USE ONLY FILED & ENTERED NOV CLERK U.S. BANKRUPTCY COURT Central District of California BY gonzalez DEPUTY CLERK CHANGES MADE BY COURT Movant appearing without an attorney Attorney for Movant Maria Zavala UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA LOS ANGELES DIVISION In re: Verity Health System of California, Inc., (Only Affects Related Debtor, St. Francis Medical Center, Inc., Case No. 2:18bk20165ER) Debtor(s). CASE NO.: 2:18bk20151ER CHAPTER: 11 ORDER GRANTING MOTION FOR RELIEF FROM THE AUTOMATIC STAY UNDER 11 U.S.C. 362 (Action in Nonbankruptcy Forum) DATE: 11/7/2018 TIME: 10:00 a.m. COURTROOM: 1568 PLACE: US Bankruptcy Court 255 E. Temple Street Los Angeles, CA MOVANT: MARIA ZAVALA 1. The Motion was: Opposed Unopposed Settled by stipulation 2. The Motion affects the following Nonbankruptcy Action: Name of Nonbankruptcy Action: Maria Zavala and Florencio Zabala v. St. Francis Medical Center, et al. Docket number: BC Nonbankruptcy court or agency where the Nonbankruptcy Action is pending: Los Angeles Superior Court Central District This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. June 2014 Page 1 F RFS.NONBK.ORDER 51

52 Case 2:18bk20151ER Doc Filed 11/19/18 11/30/18 Entered 11/19/18 11/30/18 16:08:48 16:02:32 Desc Main Document Page 52 2 of The Motion is granted under 11 U.S.C. 362(d)(1). 4. As to Movant, its successors, transferees and assigns, the stay of 11 U.S.C. 362(a) is: a. Terminated as to the Debtor and the Debtor s bankruptcy estate. b. Modified or conditioned as set forth in Exhibit to the Motion. c. Annulled retroactively to the bankruptcy petition date. Any postpetition acts taken by Movant to enforce its remedies regarding the nonbankruptcy action do not constitute a violation of the stay. 5. Limitations on Enforcement of Judgment: Movant may proceed in the nonbankruptcy forum to final judgment (including any appeals) in accordance with applicable nonbankruptcy law. Movant is permitted to enforce its final judgment only by (specify all that apply): a. Collecting upon any available insurance in accordance with applicable nonbankruptcy law. b. Proceeding against the Debtor as to property or earnings that are not property of this bankruptcy estate. 6. This order is binding and effective despite any conversion of this bankruptcy case to a case under any other chapter of the Bankruptcy Code. 7. The codebtor stay of 11 U.S.C. 1201(a) or 1301(a) is terminated, modified or annulled as to the codebtor, on the same terms and conditions as to the Debtor. 8. The 14day stay prescribed by FRBP 4001(a)(3) is waived. 9. This order is binding and effective in any bankruptcy case commenced by or against the Debtor for a period of 180 days, so that no further automatic stay shall arise in that case as to the nonbankruptcy action. 10. This order is binding and effective in any future bankruptcy case, no matter who the debtor may be, without further notice. 11. Other (specify): Pursuant to the Court s tentative on November 6, 2018 [Doc. No. 783], the Motion for Relief of Stay (action in NonBankruptcy Forum) is granted, however, the order granting the Motion shall not take effect until January 15, ### Date: November 19, 2018 This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. June 2014 Page 2 F RFS.NONBK.ORDER 52

53 Case 2:18bk20151ER Doc Filed 11/27/18 11/30/18 Entered 11/27/18 11/30/18 11:44:45 16:02:32 Desc Main Document Page 53 1 of 770 Attorney or Party Name, Address, Telephone & FAX Nos., State Bar No. & Address LIOR KATZ CA BAR NO.: KATZ LAW, A PROFESSIONAL CORPORATION WILSHIRE BLVD., SUITE 900 LOS ANGELES, CA PHONE: (310) FAX: (310) katzlawapc@gmail.com FOR COURT USE ONLY FILED & ENTERED NOV CLERK U.S. BANKRUPTCY COURT Central District of California BY gonzalez DEPUTY CLERK Movant appearing without an attorney Attorney for Movant UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA Los Angeles DIVISION In re: VERITY HEALTH SYSTEM OF CALIFORNIA, INC., et al., Affects O Connor Hospital, CASE NO.: 2:18bk20151ER (jointly administered with 2:18bk20168ER CHAPTER: 11 ORDER GRANTING MOTION FOR RELIEF FROM THE AUTOMATIC STAY UNDER 11 U.S.C. 362 (Action in Nonbankruptcy Forum) DATE: November 19, 2018 TIME: 10:00 am COURTROOM: 1568 PLACE: 255 E. Temple Street Los Angeles, CA Debtor(s). MOVANT: Refugio Estrada and Livier Marquez Estrada 1. The Motion was: Opposed Unopposed Settled by stipulation 2. The Motion affects the following Nonbankruptcy Action: Name of Nonbankruptcy Action: Medical malpractice and negligence claims against Debtor O Connor Hospital, arising from a medical procedure on Movant Refugio Estrada on October 4, Docket number: A formal lawsuit has not yet been initiated. Nonbankruptcy court or agency where the Nonbankruptcy Action is pending: N/A This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. June 2014 Page 1 F RFS.NONBK.ORDER 53

54 Case 2:18bk20151ER Doc Filed 11/27/18 11/30/18 Entered 11/27/18 11/30/18 11:44:45 16:02:32 Desc Main Document Page 54 2 of The Motion is granted under 11 U.S.C. 362(d)(1). 4. As to Movant, its successors, transferees and assigns, the stay of 11 U.S.C. 362(a) is: a. Terminated as to the Debtor and the Debtor s bankruptcy estate. b. Modified or conditioned as set forth in Exhibit to the Motion. c. Annulled retroactively to the bankruptcy petition date. Any postpetition acts taken by Movant to enforce its remedies regarding the nonbankruptcy action do not constitute a violation of the stay. 5. Limitations on Enforcement of Judgment: Movant may proceed in the nonbankruptcy forum to final judgment (including any appeals) in accordance with applicable nonbankruptcy law. Movant is permitted to enforce its final judgment only by (specify all that apply): a. Collecting upon any available insurance in accordance with applicable nonbankruptcy law. b. Proceeding against the Debtor as to property or earnings that are not property of this bankruptcy estate. 6. This order is binding and effective despite any conversion of this bankruptcy case to a case under any other chapter of the Bankruptcy Code. 7. The codebtor stay of 11 U.S.C. 1201(a) or 1301(a) is terminated, modified or annulled as to the codebtor, on the same terms and conditions as to the Debtor. 8. The 14day stay prescribed by FRBP 4001(a)(3) is waived. 9. This order is binding and effective in any bankruptcy case commenced by or against the Debtor for a period of 180 days, so that no further automatic stay shall arise in that case as to the nonbankruptcy action. 10. This order is binding and effective in any future bankruptcy case, no matter who the debtor may be, without further notice. 11. Other (specify): The court incorporates the findings in its Tentative Ruling (Exhibit A ) into this Order. Agree as to form: Date: November, 2018 John A. Moe Attorney for the Debtor ### Date: November 27, 2018 This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. June 2014 Page 2 F RFS.NONBK.ORDER 54

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60 Case 2:18bk20151ER Doc Filed 11/27/18 11/30/18 Entered 11/27/18 11/30/18 15:39:57 16:02:32 Desc Main Document Page 60 1 of 870 Attorney or Party Name, Address, Telephone & FAX Nos., State Bar No. & Address ALAN I. NAHMIAS (#125140) STEPHEN F. BIEGENZAHN (#60584) SCOTT H. NOSKIN (#164923) MIRMAN, BUBMAN & NAHMIAS, LLP Burbank Boulevard, Suite 360 Woodland Hills, CA Phone: FAX: s: anahmias@mbnlawyers.com sbiegenzahn@mbnlawyers.com snoskin@mbnlawyers.com FOR COURT USE ONLY FILED & ENTERED NOV CLERK U.S. BANKRUPTCY COURT Central District of California BY gonzalez DEPUTY CLERK CHANGES MADE BY COURT Movant appearing without an attorney Attorney for Movant UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA LOS ANGELES DIVISION In re: VERITY HEALTH SERVICES OF CALIFORNIA, INC. CASE NO.: 2:18bk20151ER CHAPTER: 11 ORDER GRANTING MOTION FOR RELIEF FROM THE AUTOMATIC STAY UNDER 11 U.S.C. 362 (Action in Nonbankruptcy Forum) DATE: November 19, 2018 TIME: 10:00 AM COURTROOM: 1568 PLACE: 255 East Temple Street Los Angeles, CA Debtor(s). MOVANT: JOSEFINA ROBLES, by and through her Conservator, SERGIO ROBLES 1. The Motion was: Opposed Unopposed Settled by stipulation 2. The Motion affects the following Nonbankruptcy Action: Name of Nonbankruptcy Action: Docket number: 696 Robles v. St. Francis Medical Center, et al., Case No. BC Nonbankruptcy court or agency where the Nonbankruptcy Action is pending: Los Angeles Superior Court, Central District { }This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. June 2014 Page 1 F RFS.NONBK.ORDER 60

61 Case 2:18bk20151ER Doc Filed 11/27/18 11/30/18 Entered 11/27/18 11/30/18 15:39:57 16:02:32 Desc Main Document Page 61 2 of The Motion is granted under 11 U.S.C. 362(d)(1). 4. As to Movant, its successors, transferees and assigns, the stay of 11 U.S.C. 362(a) is: a. Terminated as to the Debtor and the Debtor s bankruptcy estate. b. Modified or conditioned as set forth in Exhibit to the Motion. c. Annulled retroactively to the bankruptcy petition date. Any postpetition acts taken by Movant to enforce its remedies regarding the nonbankruptcy action do not constitute a violation of the stay. 5. Limitations on Enforcement of Judgment: Movant may proceed in the nonbankruptcy forum to final judgment (including any appeals) in accordance with applicable nonbankruptcy law. Movant is permitted to enforce its final judgment only by (specify all that apply): a. Collecting upon any available insurance in accordance with applicable nonbankruptcy law. b. Proceeding against the Debtor as to property or earnings that are not property of this bankruptcy estate. 6. This order is binding and effective despite any conversion of this bankruptcy case to a case under any other chapter of the Bankruptcy Code. 7. The codebtor stay of 11 U.S.C. 1201(a) or 1301(a) is terminated, modified or annulled as to the codebtor, on the same terms and conditions as to the Debtor. 8. The 14day stay prescribed by FRBP 4001(a)(3) is waived. 9. This order is binding and effective in any bankruptcy case commenced by or against the Debtor for a period of 180 days, so that no further automatic stay shall arise in that case as to the nonbankruptcy action. 10. This order is binding and effective in any future bankruptcy case, no matter who the debtor may be, without further notice. 11. Other (specify): The stay is modified in accordance with the Court s Ruling [Docket No. 839], a copy of which is attached. ### Date: November 27, 2018 { }This form is mandatory. It has been approved for use by the United States Bankruptcy Court for the Central District of California. June 2014 Page 2 F RFS.NONBK.ORDER 61

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