Un-audited 9/30/2012 HOLY NAME MEDICAL CENTER AND SUBSIDIARIES. Unaudited Consolidated Financial Statements September 30, 2012

Transcription

1 Un-audited 9/30/2012 Unaudited Consolidated Financial Statements September 30, 2012

2 Index Financial Statements: Consolidated Balance Sheets, 3 September 30, 2012 and December 31, 2011 Consolidated Statements of Operations, 4 Nine months ended September 30, 2012 and 2011 Consolidated Statements of Changes in Net Assets, 5 September 30, 2012 and December 31, 2011 Consolidated Statements of Cash Flows, 6 Nine months ended September 30, 2012 and 2011 Consolidating Schedules: Schedule 1 Consolidating Schedule - Balance Sheet Information, September 30, Schedule 2 Consolidating Schedule - Balance Sheet Information, December 31, Schedule 3 Consolidating Schedule - Statement of Operations Information, Nine months ended September 30, Schedule 4 Consolidating Schedule - Statement of Operations Information, Nine months ended September 30, Schedule 5 Consolidating Schedule - Statement of Changes in Net Assets Nine months ended September 30, Supplementary Schedules: Covenant Ratios - Center and Subsidiaries 12 Utilization Statistics - Center 13

3 Consolidated Balance Sheets As of September 30, 2012 and December 31, 2011 Assets 9/30/ /31/2011 (Unaudited) (Audited) Current assets: Cash and cash equivalents $ 38,250,428 $ 17,162,179 Assets limited or restricted as to use, current portion 1,880,603 3,713,006 Investments 55,857,153 53,414,396 Patient accounts receivable, net of estimated uncollectibles of of approximately $16,481,000 and $16,184,000 31,822,758 33,198,206 Other current assets 10,299,320 10,368,794 Total current assets 138,110, ,856,581 Assets limited or restricted as to use - bond related, net of current portion 17,434,554 16,487,325 Property, plant, and equipment, net 143,491, ,607,452 Other assets 14,976,299 8,281,340 Total assets $ 314,012,747 $ 294,232,698 Liabilities and Net Assets Current liabilities: Accrued interest payable $ 1,379,542 $ 2,797,647 Current portion of long-term debt and capital leases 3,970,624 3,724,860 Accounts payable and accrued expenses 35,821,432 33,894,399 Other current liabilities 7,797,556 6,976,999 Total current liabilities 48,969,154 47,393,905 Long-term debt and capital lease obligations, net of current portion 119,012, ,003,282 Other liabilities 16,934,082 14,348,767 Total liabilities 184,915, ,745,954 Net assets: Unrestricted 121,190, ,588,967 Temporarily restricted 6,906,870 6,897,777 Permanently restricted 1,000,000 1,000,000 Total net assets 129,097, ,486,744 Total liabilities and net assets $ 314,012,747 $ 294,232,698 3

4 Consolidated Statements of Operations Nine months ended September 30, 2012 and 2011 Nine Months Ended (Unaudited) (Unaudited) 9/30/12 9/30/11 Unrestricted revenues and other support: Net patient service revenue $ 222,347,113 $ 207,482,718 Prior year revenue settlement, net 3,113,824 - Bad debt provision (12,849,147) (10,207,197) Net patient service revenue less bad debt provision 212,611, ,275,521 Other revenue 9,294,491 10,637,071 Net assets released from restrictions for operations 1,222, ,118 Total revenues and other support 223,128, ,648,710 Expenses: Salaries 94,608,304 92,194,885 Physician fees 4,571,746 4,420,254 Employee Benefits 20,184,655 19,084,952 Supplies and expenses 77,136,455 74,902,096 Depreciation and amortization 13,140,247 12,740,309 Interest 4,507,322 4,473,484 Provision for bad debts, net 231 4,032 Total expenses 214,148, ,820,012 Income from operations 8,979, ,698 Nonoperating gains, net 822,529 2,672,929 Gain on sale of dialysis program 10,814,374 - Loss on fixed asset disposal and terminated projects 24,029 (2,042) Excess of revenues over expenses 20,640,821 3,499,585 Other changes in unrestricted net assets: Net assets released from restrictions for purchase of property, plant and equipment 45,056 1,164,273 Changes in net unrealized gains on other-than-trading securities 3,972,485 (5,899,467) Transfers to affiliates (5,057,006) (3,475,189) Increase in unrestricted net assets $ 19,601,356 $ (4,710,798) 4

5 Unaudited Consolidated Statements of Changes in Net Assets September 30, 2012 and December 31, 2011 Temporarily Permanently Unrestricted restricted restricted Total Balance at January 1, 2011 $ 105,625,528 $ 7,479,363 $ 1,000,000 $ 114,104,891 Excess of revenues over expenses 4,725, ,725,771 Change in unrealized gains on other-than-trading securities (4,041,092) (170,439) - (4,211,531) Donations - 1,736,216-1,736,216 Restricted gifts, grants, donations, bequests and interest income - 123, ,825 Net assets released from restrictions 1,135,684 (2,271,188) - (1,135,504) Cumulative effect of accounting change (380,974) (380,974) Transfers to affiliates (5,475,950) - - (5,475,950) Total changes in net assets (4,036,561) (581,586) - (4,618,147) Balance at December 31, ,588,967 6,897,777 1,000, ,486,744 Excess of revenues over expenses 20,640, ,640,821 Change in unrealized gains on - other-than-trading securities 3,972, ,741-4,102,226 Donations - 1,118,271 1,118,271 Restricted gifts, grants, donations, - bequests and interest income - 28,705-28,705 Net assets released from restrictions for operation - (1,222,568) - (1,222,568) Net assets released from restrictions for capital purposes 45,056 (45,056) - - Transfers to affiliates (5,057,006) - - (5,057,006) Total changes in net assets 19,601,356 9,093-19,610,449 Balance at September 30, 2012 $ 121,190,323 $ 6,906,870 $ 1,000,000 $ 129,097,193 5

6 Consolidated Statements of Cash Flows Nine months ended September 30, 2012 and 2011 Nine Months Ended 9/30/12 9/30/11 (Unaudited) (Unaudited) Cash flows from operating activities: Total change in net assets $ 19,610,449 $ (5,455,233) Adjustments to reconcile total change in net assets to net cash provided by operating activities: Depreciation and amortization 13,140,247 12,740,309 Amortization of deferred financing costs - 18,521 (Gain) loss on fixed assets disposal and terminated projects (24,029) 2,042 Gain on sale of dialysis program (10,814,374) - Provision for bad debts, net 12,849,378 10,211,229 Change in net unrealized and realized gains and losses on investments (4,102,226) 6,126,958 Restricted contributions and interest income (1,146,976) (1,383,447) Transfers to affiliates 5,057,006 3,475,189 Changes in assets and liabilities: Patient accounts receivable (11,473,930) (11,353,154) Other current assets 69,474 (1,409,315) Other assets (6,195,187) (4,071,308) Accounts payable and accrued expenses 1,927,033 2,143,305 Other current liabilities 820, ,619 Other long term liabilities 2,585,315 3,118,768 Accrued interest payable (1,418,105) (994,184) Net cash provided by operating activities 20,884,632 13,850,299 Cash flows from investing activities: Acquisition of property, plant and equipment, net (5,686,024) (16,133,131) Net Purchases and Sales of assets limited or restricted as to use and investments 2,544,643 (3,271,695) Purchase of investment in joint venture (5,556,778) - Proceeds from sale of dialysis program 11,500,000 - Proceeds from sale of property - 1,735,662 Net cash used in investing activities 2,801,841 (17,669,164) Cash flows from financing activities: Payments on long-term debt and capital lease obligations (3,745,200) (3,533,757) Restricted contributions and interest income 1,146,976 1,383,447 Net cash provided by financing activities (2,598,224) (2,150,310) Net increase (decrease) in cash and cash equivalents 21,088,249 (5,969,175) Cash and cash equivalents at beginning of year 17,162,179 27,538,778 Cash and cash equivalents at end of period $ 38,250,428 $ 21,569,603 6

7 Assets Health Real Partner Health Care HNH MS Comp System Center HN EMS Estate Corp Services Foundation Fitness Center Eliminations Total Current assets: Cash and cash equivalents $ 34,826,786 $ 37,510 $ 225,148 $ 3,273 $ 2,631,777 $ 430,469 $ 95,465 $ - $ 38,250,428 Assets limited or restricted as to use, current portion 1,880, ,880,603 Investments 55,851, , ,857,153 Patient accounts receivable, net 31,423, , ,926-31,822,758 Other current assets 20,724,600 26, ,483 1, ,946 28, ,094 (10,973,520) 10,299,320 Total current assets 144,706, , ,631 4,373 2,802, , ,485 (10,973,520) 138,110,262 Assets limited or restricted as to use - bond related, net of current portion 16,461, , ,434,554 Property, plant, and equipment, net 130,270, ,649 6,280, ,689-6,258,892 16, ,491,632 Other assets 16,007,468-72,387 1,495, , ,284 - (3,313,329) 14,976,299 Total assets $ 307,445,978 $ 948,155 $ 6,794,398 $ 1,647,064 $ 4,332,613 $ 6,876,618 $ 254,770 $ (14,286,849) $ 314,012,747 Liabilities and Net Assets Consolidating Schedule - Balance Sheet Information September 30, Unaudited Current liabilities: Accrued interest payable $ 1,378,979 $ - $ - $ - $ - $ 563 $ - $ - $ 1,379,542 Current portion of long-term debt and capital lease obligations 3,629, , , ,970,624 Accounts payable and accrued expenses 35,013,341 2,124, ,083 1,904,505 1,019,282 4,338,971 1,683,198 (10,973,518) 35,821,432 Other current liabilities 7,334, ,587-7,797,556 Total current liabilities 47,356,325 2,124, ,671 1,904,505 1,019,282 5,017,121 1,683,198 (10,973,518) 48,969,154 Long-term debt and capital lease obligations, net of current portion 113,037,357-1,224, ,750, ,012,318 Other Liabilities 16,813,410-70, , ,934,082 Total liabilities 177,207,092 2,124,570 2,133,348 1,904,505 1,019,282 9,817,077 1,683,198 (10,973,518) 184,915,554 Net assets: Unrestricted 122,332,016 (1,176,415) 4,661,050 (257,441) (94,884) (2,940,459) (1,428,428) 94, ,190,323 Temporarily restricted 6,906, ,408, (3,408,215) 6,906,870 Permanently restricted 1,000, ,000,000 Total net assets 130,238,886 (1,176,415) 4,661,050 (257,441) 3,313,331 (2,940,459) (1,428,428) (3,313,331) 129,097,193 Total liabilities and net assets $ 307,445,978 $ 948,155 $ 6,794,398 $ 1,647,064 $ 4,332,613 $ 6,876,618 $ 254,770 $ (14,286,849) $ 314,012,747 7

8 Assets Health Real Partner Health Care HNH MS Comp System Center HN EMS Estate Corp Services Foundation Fitness Center Eliminations Total Current assets: Cash and cash equivalents $ 13,897,214 $ 127,068 $ 140,523 $ 11,048 $ 2,478,403 $ 383,411 $ 124,512 $ - $ 17,162,179 Assets limited or restricted as to use, current portion 3,713, ,713,006 Investments 52,960, ,919-6, ,414,396 Patient accounts receivable, net 32,779, , ,014-33,198,206 Other current assets 18,902,732 15,448 27,528 1, ,937 51,213 97,930 (8,844,094) 10,368,794 Total current assets 122,253, , ,970 12,148 2,601, , ,456 (8,844,094) 117,856,581 Assets limited or restricted as to use - bond related, net of current portion 15,596, , ,487,325 Property, plant, and equipment, net 138,040, ,934 6,179, ,259-6,499,589 17, ,607,452 Other assets 10,076,638-28,612 1,057, , ,890 - (3,776,513) 8,281,340 Total assets $ 285,966,433 $ 1,221,103 $ 6,823,297 $ 1,250,519 $ 4,173,465 $ 7,149,103 $ 269,385 $ (12,620,607) $ 294,232,698 Liabilities and Net Assets Consolidating Schedule - Balance Sheet Information December 31, 2011 Current liabilities: Accrued interest payable $ 2,797,106 $ - $ - $ - $ - $ 541 $ - $ - $ 2,797,647 Current portion of long-term debt and capital lease obligations 3,322, , , ,724,860 Accounts payable and accrued expenses 33,085,295 2,485, ,743 1,507, ,952 3,162,817 1,441,878 (8,844,094) 33,894,399 Other current liabilities 6,609, , ,976,999 Total current liabilities 45,814,982 2,485, ,539 1,507, ,952 3,810,840 1,441,878 (8,844,094) 47,393,905 Long-term debt and capital lease obligations, net of current portion 116,022,844-1,320, ,660, ,003,282 Other liabilities 13,994,653-88, , ,348,767 Total liabilities 175,832,479 2,485,848 2,188,679 1,507, ,952 9,736,252 1,441,878 (8,844,094) 184,745,954 Net assets: Unrestricted 102,236,177 (1,264,745) 4,634,618 (257,441) 189,250 (2,587,149) (1,172,493) (189,250) 101,588,967 Temporarily restricted 6,897, ,587, (3,587,263) 6,897,777 Permanently restricted 1,000, ,000,000 Total net assets 110,133,954 (1,264,745) 4,634,618 (257,441) 3,776,513 (2,587,149) (1,172,493) (3,776,513) 109,486,744 Total liabilities and net assets $ 285,966,433 $ 1,221,103 $ 6,823,297 $ 1,250,519 $ 4,173,465 $ 7,149,103 $ 269,385 $ (12,620,607) $ 294,232,698 8

9 Consolidating Schedule - Statement of Operations Information Nine months ended September 30, Unaudited Health Real Partner Health Care HNH MS Comp System Center HN EMS Estate Corp Services Foundation Fitness Center Eliminations Total Unrestricted revenues and other support: Net patient service revenue $ 218,120,535 $ 3,993,130 $ - $ - $ - $ - $ 233,448 $ - $ 222,347,113 Prior year revenue settlement, net 3,113, ,113,824 Bad debt provision (11,497,891) (1,294,546) (56,710) - (12,849,147) Net patient service revenue less bad debt provision 209,736,468 2,698, , ,611,790 Other revenue 6,804,501 5,550 1,292, ,590 1,169, ,434 (495,210) 9,294,491 Net assets released from restrictions for operations 144, ,077, ,222,568 Total revenues and other support 216,685,821 2,704,134 1,292,170-1,418,306 1,169, ,172 (495,210) 223,128,849 Expenses: Salaries 91,456,342 1,457,429 76, , , , ,090-94,608,304 Physician fees 4,567, ,500-4,571,746 Fringe benefits 19,382, ,581 14, ,864 66, , ,642-20,184,655 Supplies and expenses 73,899, , , ,434 1,335, ,907 85,231 (495,210) 77,136,455 Depreciation and amortization 12,323, , ,653 33, ,863 1,644-13,140,247 Interest 4,375,688-51, , ,507,322 Provision for bad debts, net Total expenses 206,004,221 2,615,804 1,269, ,299 1,702,522 1,524, ,107 (495,210) 214,148,960 Income (loss) from operations 10,681,600 88,330 22,819 (917,299) (284,216) (355,410) (255,935) - 8,979,889 Nonoperating (losses) gains, net 816,734-3, , ,529 Gain on sale of dialysis program 10,814, ,814,374 Change in net interest of Foundation (284,134) ,134 - Loss on fixed assets disposal and terminated projects 24, ,029 Excess (deficiency) of revenues over expenses 22,052,603 88,330 26,432 (917,299) (284,134) (353,310) (255,935) 284,134 20,640,821 Other changes in unrestricted net assets: Distributions from Foundation to Hospital Contributions of the purchase of property, plant, and equipment Changes in net unrealized (losses) gains on other- - than-trading securities 3,972, ,972,485 Transfers (to) from affiliates (5,974,305) , (5,057,006) Net assets released from restriction 45, ,056 Increase (decrease) in unrestricted net assets $ 20,095,839 $ 88,330 $ 26,432 $ - $ (284,134) $ (353,310) $ (255,935) $ 284,134 $ 19,601,356 9

10 Consolidating Schedule - Statement of Operations Information Nine Months Ended September 30, Unaudited Health Real Partner Health Care HNH MS Comp System Center HN EMS Estate Corp Services Foundation Fitness Center Eliminations Total Unrestricted revenues and other support: Net patient service revenue $ 204,509,010 $ 2,721,514 $ - $ - $ - $ - $ 252,194 $ - $ 207,482,718 Bad debt provision (9,318,380) (847,093) (41,724) - (10,207,197) Net patient service revenue less bad debt provision 195,190,630 1,874, , ,275,521 Other revenue 8,011,591 1,790 1,316, ,886 1,218, ,369 (604,755) 10,637,071 Net assets released from restrictions for operations 273, , ,118 Total revenues and other support 203,475,761 1,876,211 1,316, ,464 1,218, ,839 (604,755) 208,648,710 Expenses: Salaries 88,824,384 1,339, , , , , ,571-92,194,885 Physician fees 4,415, ,500-4,420,254 Fringe benefits 18,309, ,515 8,097 97,904 95, , ,320-19,084,952 Supplies and expenses 72,462, , , , , , ,689 (604,755) 74,902,096 Depreciation and amortization 11,918, , ,912 22, ,141 1,098-12,740,309 Interest 4,346,603-69, , ,473,484 Provision for bad debts, net ,850 2, ,032 Total expenses 200,276,871 2,367,388 1,330, ,076 1,396,024 1,507, ,178 (604,755) 207,820,012 Income (loss) from operations 3,198,890 (491,177) (14,005) (801,076) (582,560) (289,035) (192,339) - 828,698 Nonoperating (losses) gains, net 2,665,563-3,835-3, ,672,929 Change in net interest of Foundation (545,299) ,299 - Loss on fixed assets disposal and terminated projects (2,042) (2,042) Excess (deficiency) of revenues over expenses 5,317,112 (491,177) (10,170) (801,076) (579,029) (289,035) (192,339) 545,299 3,499,585 Other changes in unrestricted net assets: Distributions from Foundation to Hospital 1,075, (1,075,515) Changes in net unrealized (losses) gains on otherthan-trading securities (5,899,467) (5,899,467) Transfers (to) from affiliates (4,276,265) , (3,475,189) Net assets released from restrictions 55, ,109, ,164,273 Increase (decrease) in unrestricted net assets $ (3,728,077) $ (491,177) $ (10,170) $ - $ (545,299) $ (289,035) $ (192,339) $ 545,299 $ (4,710,798) 10

11 Consolidating Schedule - Statement of Changes in Net Assets Nine months ended September 30, Unaudited Health Real Partner Health Care HNH MS Comp System Center HN EMS Estate Corp Services Foundation Fitness Center Eliminations Total Unrestricted Net assets as of the beginning of period $ 102,236,177 $ (1,264,745) $ 4,634,618 $ (257,441) $ 189,250 $ (2,587,149) $ (1,172,493) $ (189,250) $ 101,588,967 Change in unrestricted net assets 20,095,839 88,330 26,432 - (284,134) (353,310) (255,935) 284,134 19,601,356 Net assets as of end of period $ 122,332,016 $ (1,176,415) $ 4,661,050 $ (257,441) $ (94,884) $ (2,940,459) $ (1,428,428) $ 94,884 $ 121,190,323 Temporarily restricted Net assets as of beginning of period $ 6,897,777 $ - $ - $ - $ 3,587,263 $ - $ - $ (3,587,263) $ 6,897,777 Change in beneficial interest in Hospital Foundation, Inc. (179,048) ,048 - Restricted gifts, grants, donations, bequests and interest income 28, ,705 Change in net inrealized gains and losses on investments 129, ,741 Net assets released from restriction for operations (144,852) (1,077,716) (1,222,568) Net assets released from restriction for capital purposes (45,056) (45,056) Donations 219, , ,118,271 Change in temporarily restricted net assets 9, (179,048) ,048 9,093 Net assets as of end of period $ 6,906,870 $ - $ - $ - $ 3,408,215 $ - $ - $ (3,408,215) $ 6,906,870 Permanently restricted - Net assets as of beginning of period $ 1,000,000 $ - $ - $ - $ - $ - $ - $ - $ 1,000,000 Net assets as of end of period $ 1,000,000 $ - $ - $ - $ - $ - $ - $ - $ 1,000,000 11

12 Center Debt Service Covenants 9/30/12 Center Consolidated Center and Subsidiaries LOAN COVENANTS: 9/30/2012 9/30/ DEBT SERVICE COVERAGE RATIO Excess of revenue over expenses + Depreciation & amortization expense + Assets released from restictions + Interest expense Maximum actual debt service requirement Minimum Required by Loan Covenants DAYS CASH ON HAND Cash & marketable securities + Board designated funds (T-operating expenses Bad Debt, Depreciation & amortization expense)/365 days Minimum Required by Loan Covenants CAPITALIZATION RATIO Ratio Maximum Acceptable Ratio per Loan Covenants CUSHION RATIO Funds available for debt service Maximum annual debt service requirement Minimum Required by Loan Covenants

13 Nine Months Ended September 30 MAINT BEDS Admissions Adult /Surgical 220 8,528 9,084 Intensive Care Unit Psychiatry Pediatrics Obstetrics/Gynecology 29 1,157 1,098 SUBTOTAL ,145 11,589 Nursery 36 1,131 1,065 TOTAL (excl. SDM) ,276 12,654 Same Day 4,078 3,590 Observation Same Day Surgery 5,584 5,473 Grand Total 22,556 22,017 Patient Days Adult /Surgical 42,332 44,273 Intensive Care Unit 3,176 3,397 Psychiatry 3,806 3,081 Pediatrics Obstetrics/Gynecology 3,185 2,974 SUBTOTAL 53,174 54,468 Nursery 3,304 2,976 TOTAL (excl. SDM) 56,478 57,444 Grand Total Patient Days (incl. SDM) 60,690 61,163 Average Length of Stay * Adult /Surgical Intensive Care Unit Psychiatry Pediatrics Obstetrics/Gynecology SUBTOTAL Nursery TOTAL Medicare CMI * Excluding Same Day s UTILIZATION STATISTICS September 30,