ALTRU HEALTH SYSTEM OBLIGATED GROUP COMBINED BALANCE SHEET DECEMBER 31, 2017 and 2016 ASSETS

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2 COMBINED BALANCE SHEET DECEMBER 31, 2017 and 2016 ASSETS CURRENT ASSETS Cash & Cash Equivalents $ 34,484,497 $ 51,159,561 Investments 171,236, ,970,673 Receivables - Net 72,631,498 65,204,124 Notes Receivable 768, ,923 Due From Affiliates 10,428 2,929 Inventories 9,016,273 8,489,527 Prepaid Expense 1,307,594 2,875,742 Assets Whose Use is Limited - Held by Trustee 953,326 1,073,845 Total $ 290,409,447 $ 274,558,324 ASSETS WHOSE USE IS LIMITED Held by Trustee: Under Trust Agreements $ 16,610,592 $ 12,035,005 Held by Trustee: Under Bond Indenture Agreements 23,899,550 6,837,150 Total $ 40,510,142 $ 18,872,155 PROPERTY, PLANT AND EQUIPMENT Land and Improvements $ 19,379,300 $ 18,319,411 Buildings 262,625, ,059,171 Leasehold Improvements 1,715,833 1,715,833 Equipment 238,190, ,127,092 Construction in Progress 14,640,586 5,284,672 Total $ 536,551,635 $ 508,506,179 Accumulated Depreciation (332,503,967) (310,113,685) Total $ 204,047,668 $ 198,392,494 OTHER ASSETS Unamortized Bond Issue and Other Costs $ 5,901,253 $ 7,158,727 Other 5,873,126 6,289,919 Total $ 11,774,379 $ 13,448,646 TOTAL ASSETS $ 546,741,636 $ 505,271,619 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable $ 15,726,161 $ 18,141,493 Estimated Third Party Payable 1,000,000 2,635,765 Due to Affiliates - 8,226 Deferred Revenue 597, ,480 Accrued Expenses 26,099,318 31,216,540 Current Portion of Long-Term Debt 6,678,232 6,980,169 Total $ 50,101,189 $ 59,511,673 LONG TERM LIABILITIES Special Assessments Payable $ 677,941 $ 801,083 Revenue Bonds Payable 208,946, ,276,527 Pension & Post Employment/Retirement Benefit 3,425,820 11,687,578 Other 15,333,464 12,092,342 Total $ 228,383,340 $ 204,857,530 TOTAL LIABILITIES $ 278,484,529 $ 264,369,203 NET ASSETS $ 268,257,107 $ 240,902,416 TOTAL LIABILITIES AND NET ASSETS $ 546,741,636 $ 505,271,619

3 COMBINED STATEMENT OF OPERATIONS For the Twelve Months Ended December 31, 2017 and 2016 UNRESTRICTED OPERATING REVENUE Net Patient Service Revenue $ 534,562,871 $ 522,763,865 Provision for Bad Debts (9,735,505) (9,170,941) Net Patient Service Revenue Less Provision for Bad Debts $ 524,827,366 $ 513,592,924 Other Operating Revenue 39,811,628 36,003,466 Total Unrestricted Operating Revenue $ 564,638,994 $ 549,596,390 UNRESTRICTED OPERATING EXPENSES Patient Care Services $ 84,744,321 $ 85,827,323 Clinic Professional Services 186,220, ,370,614 Other Professional Services 92,107,171 91,751,137 Other Services 4,339,994 4,097,042 General Services 25,229,026 24,784,313 Administrative Services 73,193,935 59,676,764 Bond Issue Carrying Costs 496, ,628 Real Estate Taxes 881, ,225 Interest 8,247,286 8,359,175 Depreciation and Amortization 27,095,249 27,569,719 Insurance 2,494,741 2,650,624 Employee Benefits and Payroll Taxes 56,521,988 51,846,089 Total Unrestricted Operating Expenses $ 561,572,333 $ 535,384,653 NET INCOME FROM OPERATIONS $ 3,066,661 $ 14,211,737 Other Income - Primarily Investments 6,977,351 3,597,952 Clinic Building Disposal Following 12/29/16 Design Failure - (7,071,248) Cash Balance Plan Settlement Accounting (3,457,668) Loss on Advance Bond Refunding (1,408,850) - EXCESS OF REVENUE OVER EXPENSE $ 5,177,494 $ 10,738,441 Unrealized Gain (Loss) on Investments 13,622,658 5,865,574 INCREASE IN UNRESTRICTED NET ASSETS $ 18,800,152 $ 16,604,015

4 COMBINED STATEMENT OF CASH FLOWS For the Twelve Months Ended December 31, 2017 and 2016 CASH FLOW FROM OPERATING ACTIVITIES: Increase in Unrestricted Net Assets : $ 18,800,152 $ 16,604,015 Adjustments to Reconcile Change in Net Assets to Net Cash from Operating Activities : Depreciation and Amortization 27,128,909 25,401,770 Provision for Bad Debts 9,735,505 9,170,941 (Gain) Loss on Investments (3,216,013) 585,922 Impairment of Unrestricted Investments - 2,609 Loss on Disposal of Equipment 280,544 7,214,939 Excess of Revenue Over Expenses - Limited Use Assets (194,022) (167,258) Unrealized (Gain) / Loss (13,622,658) (5,865,574) Effect on Operating Cash Flows from Changes in: Receivables (16,502,145) (3,793,813) Due from Affiliates (7,499) (856) Inventories (526,747) 138,228 Prepaid Expense 1,567,800 (1,992,568) Accounts Payable (2,982,331) 1,237,754 Due to Affiliates (8,226) 8,226 Estimated Third Party Payable (1,635,765) (1,368,231) Accrued Expenses (4,826,474) (9,580,675) Deferred Revenue 67, ,501 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 14,059,028 $ 37,803,930 CASH FLOW FROM INVESTING ACTIVITIES: Acquisitions of Property and Equipment $ (30,473,519) $ (27,353,242) Sale of Property and Equipment 446,804 - Investments in Assets Whose Use is Limited (92,046,554) (11,653,000) Transfers from Assets Whose Use is Limited 75,242,587 11,829,311 Purchases of Investments (36,739,469) (55,690,722) Sales of Investments 26,477,492 49,837,126 Advances on Notes Receivable (1,094,250) (1,261,172) Payments Received on Notes Receivable 446, ,473 NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES $ (57,740,317) $ (33,995,226) CASH FLOW FROM FINANCING ACTIVITIES: Payments of Long-Term Debt $ 27,006,225 $ (6,126,650) Payments for Financing Costs - - Proceeds from Sale of Bonds - - NET CASH USED BY FINANCING ACTIVITIES $ 27,006,225 $ (6,126,650) NET CHANGE IN CASH AND CASH EQUIVALENTS $ (16,675,064) $ (2,317,946) CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD 51,159,561 53,477,507 CASH AND CASH EQUIVALENTS END OF PERIOD $ 34,484,497 $ 51,159,561

5 Ratios December 31, 2017 and 2016 Days Cash On Hand: Operating Expense $ 561,572,333 $ 535,384,653 Depreciation & Amortization 27,128,909 25,401,770 Total $ 534,443,424 $ 509,982,883 Unrestricted Cash & Investments $ 205,721,482 $ 196,130,234 Days Cash on Hand Debt to Capitalization: Long Term Debt $ 207,203,551 $ 182,805,000 Pension & Postretirement Liability 3,425,820 11,687,578 Net Assets 268,257, ,902,416 Total $ 478,886,478 $ 435,394,994 Debt to Capitalization Ratio 43.27% 41.99% Historical Debt Service Coverage: Income Before Unrealized Gains $ 5,177,494 $ 10,738,441 Interest Expense 8,247,286 8,359,175 Depreciation & Amortization 27,128,909 25,401,770 Income Available for Debt Service $ 40,553,689 $ 44,499,386 Interest Payments $ 8,462,400 $ 8,834,165 Principal Payments 6,133,729 6,635,000 Total Debt Service $ 14,596,129 $ 15,469,165 Historical Debt Service Coverage Ratio Maximum Annual Debt Service Coverage: Income Before Unrealized Gains $ 5,177,494 $ 10,738,441 Interest Expense 8,247,286 8,359,175 Depreciation & Amortization 27,128,909 25,401,770 Income Available for Debt Service $ 40,553,689 $ 44,499,386 Maximum Annual Debt Service $ 16,697,900 $ 16,334,746 Maximum Annual Debt Service Coverage Ratio

6 Altru Health System & Affiliates Combined Balance Sheet December 31, 2017 and 2016 ASSETS Current Assets Cash & Cash Equivalents $ 35,026,408 $ 51,429,907 Investments 172,629, ,336,734 Due from Restricted Assets 116,080 72,281 Receivables - Net 72,636,324 65,208,625 Notes Receivable 768, ,923 Inventories 9,016,274 8,489,527 Prepaid Expense 1,307,954 2,875,753 Limited Use Assets - Current 953,326 1,073,845 Total $ 292,454,951 $ 276,268,595 Assets Whose Use is Limited or Restr. Under Trust Agreement $ 16,610,592 $ 12,578,972 Under Bond Indenture Agreements 23,899,550 6,837,150 By Donors 13,199,815 10,979,905 Total $ 53,709,957 $ 30,396,027 Property, Plant & Equipment Land & Improvements $ 19,379,300 $ 18,319,411 Buildings 264,341, ,775,004 Equipment 238,311, ,248,027 Construction in Progress 14,640,586 5,284,672 Total $ 536,672,570 $ 508,627,114 Less: Accumulated Depr. (332,586,618) (310,192,128) Total $ 204,085,952 $ 198,434,986 Other Assets Unamortized Costs $ 5,901,253 $ 6,233,455 Other 5,873,126 6,671,224 Total $ 11,774,379 $ 12,904,679 Total Assets $ 562,025,239 $ 518,004,287 LIABILITIES AND NET ASSETS Current Liabilities Accounts Payable $ 15,746,466 $ 18,727,766 3rd Party Payor Settlements 1,000,000 2,635,765 Accrued Expenses 26,180,565 31,002,790 Long Term Debt - Current 6,678,232 6,980,169 Unearned Income 597, ,480 Total $ 50,202,741 $ 59,875,970 Long Term Liabilities Special Assessments Payable $ 677,941 $ 801,083 Bonds Payable 208,946, ,276,527 Pension/Health Benefit 3,455,490 11,791,693 Other 15,358,598 12,118,895 Total $ 228,438,144 $ 204,988,198 Net Assets Unrestricted $ 270,215,654 $ 242,191,852 Temporarily Restricted 9,706,148 7,685,128 Permanently Restricted 3,462,552 3,263,139 Total $ 283,384,354 $ 253,140,119 Total Liabilities & Net Assets $ 562,025,239 $ 518,004,287

7 Altru Health System & Affiliates Combined Statement of Operations For the Twelve Months Ended December 31, 2017 and 2016 Unrestr. Revenues & Gains: Net Patient Service Rev. $ 534,562,871 $ 522,763,865 Provision for Bad Debt (9,751,591) (9,166,940) Other Operating Revenue 39,757,788 35,842,073 Total Revenue $ 564,569,068 $ 549,438,998 Expenses: Nursing Services $ 84,743,049 $ 85,827,360 Clinic Professional Serv. 186,220, ,372,914 Other Professional Serv. 90,236,937 90,059,247 Other Services 6,248,193 5,831,429 General Services 25,301,525 24,837,558 Administrative Services 73,165,522 59,763,425 Bond Issue Costs 496, ,628 Real Estate Taxes 881, ,225 Interest 8,247,286 8,359,176 Depreciation & Amortization 27,099,458 27,574,023 Insurance 2,495,461 2,651,344 Employee Benefits 56,604,356 52,456,606 Total Expense $ 561,740,407 $ 536,184,935 Operating Income $ 2,828,661 $ 13,254,063 Other Income - Primarily Investments 7,388,675 3,901,527 Clinic Building Disposal Following 12/29/16 Design Failure - (7,071,248) Cash Balance Plan Settlement Accounting (3,463,026) - Loss on Advance Bond Refunding (1,408,850) - Excess of Revenues Over Expenses $ 5,345,460 $ 10,084,342 Change in Unrealized Gains and Losses 13,724,411 5,855,498 Increase in Unrestricted Net Assets $ 19,069,871 $ 15,939,840