ALBERT EINSTEIN HEALTHCARE NETWORK CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2014

Transcription

1 ALBERT EINSTEIN HEALTHCARE NETWORK CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2014

2 ALBERT EINSTEIN HEALTHCARE NETWORK TABLE OF CONTENTS Pages(s) Operating Income Summary Utilization Information Consolidated Financial Statements: Balance Sheets Statement of Revenues and Expenses Statement of Changes in Net Assets Statement of Cash Flows Notes to Financial Statements Operating Income Summary by Division Supplemental Consolidating Information : Consolidating Balance Sheets 1718 Consolidating Statement of Revenues and Expenses 19 Consolidating Statement of Changes in Net Assets 20 Consolidating Statement of Cash Flows 21

3 ALBERT EINSTEIN HEALTHCARE NETWORK OPERATING INCOME SUMMARY FOR THE SIX MONTHS ENDED DECEMBER 31, 2014 (Thousands Only) Month to Date Year to Date Prior Year to Date Albert Einstein Healthcare Services $ 1,158 $ 3,668 $ 792 Albert Einstein Physician Services (1,921) (10,465) (7,670) Parent Company 19 1,414 1,002 Obligated Group Operating Income (744) (5,383) (5,876) Einstein Medical Center Montgomery 786 (4,044) (8,257) Montgomery Health System (57) (357) (685) Einstein Physicians Montgomery (617) (3,895) (3,319) Broadline 3,131 3,250 3,311 Einstein/USP Surgical Center (103) (350) (427) Consolidated Operating Income $ 2,396 $(10,779) $(15,253) 2

4 Einstein Healthcare Network Healthcare Services Utilization Summary December 31, 2014 Month of December Year to Date December Prior Prior Actual Year Actual Year Admissions 1,673 1,604 Acute Adult Main Campus 9,568 9, Acute Adult Elkins Park 1,124 1, Acute Adult EMCM 4,359 4, Acute Nursery Einstein 1,459 1, Acute Nursery EMCM Willowcrest Moss Rehab 1,366 1, Belmont Center 1,851 1,711 3,601 3,601 Total 21,225 21,830 Patient Days 8,156 8,029 Acute Adult Main Campus 49,665 49, Acute Adult Elkins Park 4,157 4,944 3,123 2,966 Acute Adult EMCM 17,026 16,557 1,020 1,143 Acute Nursery Einstein 6,285 6, Acute Nursery EMCM 3,830 3,582 1,200 2,149 Willowcrest 10,229 11,265 3,774 3,687 Moss Rehab 22,137 21,620 3,923 3,807 Belmont Center 23,669 23,414 22,537 23,072 Total 136, ,270 A.L.O.S Acute Adult Main Campus Acute Adult Elkins Park Acute Adult EMCM Acute Nursery Einstein Acute Nursery EMCM Willowcrest Moss Rehab Belmont Center Total Average Daily Census Acute Adult Main Campus Acute Adult Elkins Park Acute Adult EMCM Acute Nursery Einstein Acute Nursery EMCM Willowcrest Moss Rehab Belmont Center Total

5 Einstein Healthcare Network Statistical Report December 31, 2014 Month of December Year to Date December Prior Prior Actual Year Actual Year ACUTE CARE CT Surgeries EMCP CT Surgeries EMCM Total Catheterizations EMCP 1,852 1, Catheterizations EMCM Total 2,425 2, EPS Lab EMCP EPS Lab EMCM Total Liver Transplants EMCP Kidney/Pancreas Transplants EMCP Births EMCP 1,472 1, Births EMCM Total 2,443 2, Overall Case Mix Index EMCP / EMC EP Overall Case Mix Index EMCM Medicare Case Mix Index EMCP / EMC EP Medicare Case Mix Index EMCM MOSS REHAB Spinal Cord Injury Brain Injury Medicare Case Mix Group FTE's 6,385 6,352 EHN w/o EMCM and Montgomery FTE's 6,423 6,401 1,042 1,079 EMCM FTE's 1,052 1,053 7,427 7,431 Total FTE's 7,475 7,454 4

6 Einstein Healthcare Network Statistical Report December 31, 2014 Month of December Year to Date December Prior Prior Actual Year Actual Year Outpatient Visits 26,713 24,445 Acute Adult Main Campus 162, ,513 3,032 2,790 Acute Adult Elkins Park 19,474 17,892 11,565 10,188 Acute Adult EMCM 67,525 64,315 4,889 4,630 Home Care/Hospice EMCM 28,175 27, Observation Einstein 3,632 3, Observation EMCM 2,095 1,614 14,306 11,789 Moss Rehab 83,541 78,541 6,005 5,164 Belmont Center 34,273 33,674 67,477 59,776 Total 401, ,387 EMERGENCY ROOM Acute EMCP / EMC EP 9,808 9,268 Emergency Room Visits 58,780 58,481 (374) (272) Less: Adult Psych EU Visits (1,950) (1,872) (293) (209) Less: Child Psych EU Visits (1,627) (1,432) 9,141 8,787 Medical Emergency Unit Visits 55,203 55,177 1,241 1,253 Medical Admissions from ER 7,127 7, % 14.3% % of Medical ER Patients Admitted 12.9% 13.9% 69.5% 74.3% % Medical ER of A&P's Admissions 70.3% 72.5% Hours on Divert 18 0% 0% % of Hours on Divert 0% 0% EMERGENCY ROOM EMCM 3,400 2,880 Emergency Room Visits 19,080 17, Medical Admissions from ER 2,662 2, % 17.2% % of Medical ER Patients Admitted 14.0% 15.7% 5

7 Einstein Healthcare Network (w/o EMCM) Admissions and Patient Days by Medical Service Line December 31, 2014 Admissions Patient Days Month to Date Year to Date Month to Date Year to Date Actual Prior Year Actual Prior Year Actual Prior Year Actual Prior Year Cancer ,079 1, , Cardiology ,113 3, ,387 4,798 General Medicine 4,568 3,524 21,002 21, ,385 1,368 General Surgery 824 1,126 7,942 7, Organ Disease & Transplant ,509 3, Neurology ,892 2, Neurosurgery ,755 1,809 OB/GYN ,903 5, Orthopedics ,457 1,491 1,786 1,686 10,138 10,610 Adult & Peds (no Psychiatry) 7,670 7,384 46,185 46, ,405 2,372 Belmont Behavioral Health 5,163 5,177 31,306 31, ,241 1,272 Newborn ,127 3, NICU ,158 3, ,366 1,405 Rehabilitation 3,774 3,687 22,137 21, Skilled Care 1,200 2,149 10,229 11,265 2,690 2,678 15,885 16,486 Total 18,827 19, , ,131 6

8 Einstein Healthcare Network (EMCM Only) Admissions and Patient Days by Medical Service Line December 31, 2014 Admissions Patient Days Month to Date Year to Date Month to Date Year to Date Actual Prior Year Actual Prior Year Actual Prior Year Actual Prior Year Cancer Cardiology ,641 2,587 General Medicine 2,210 1,970 10,927 10, General Surgery ,350 1, Organ Disease & Transplant Neurology 6 29 Neurosurgery OB/GYN ,754 2, Orthopedics ,359 4,405 Adult & Peds (no Psychiatry) 3,123 2,966 17,026 16,557 Belmont Behavioral Health Newborn ,982 1, NICU ,848 1,668 Rehabilitation Skilled Care ,340 5,344 Total 3,710 3,532 20,856 20,139 7

9 Einstein Healthcare Network (w/o EMCM) Outpatient Visits by Product Line December 31, 2014 Month to Date Year to Date Actual Prior Year Actual Prior Year 9,808 9,268 Emergency Room 58,780 58,481 4,895 4,388 Radiology 32,772 29,688 2,893 2,748 Cancer 17,623 19,287 3,168 3,192 Women and Children 19,249 19,475 2,378 2,212 General Medicine 13,925 14,600 1,935 1,773 General Surgery 11,681 11, Laboratory 6,254 5,683 1,262 1,190 Dental 8,645 8, Pain Service 3,803 3,718 1, Transplant 6,473 3, Cardiology 1,937 1, Neurosensory 1, Observation 3,632 3,357 30,337 27,782 Subtotal Acute Care 186, ,762 14,306 11,789 Rehabilitation 83,541 78,541 6,005 5,164 Behavioral Health 34,273 33,674 50,648 44,735 Total 303, ,977 8

10 Einstein Healthcare Network (EMCM Only) Outpatient Visits by Product Line December 31, 2014 Month to Date Year to Date Actual Prior Year Actual Prior Year 3,400 2,880 Emergency Room 19,080 17,920 1,997 1,775 Radiology 12,952 11,982 1, Cancer 5,717 5,824 1,782 1,577 Women and Children 10,355 9, General Medicine General Surgery 3,911 4,116 2,280 2,109 Laboratory 13,652 12,994 Dental Pain Service Transplant Cardiology Neurosensory Observation 2,095 1,614 11,940 10,411 Subtotal Acute Care 69,620 65,929 Rehabilitation Behavioral Health 4,889 4,630 Homecare / Hospice 28,175 27,481 16,829 15,041 Total 97,795 93,410 9

11 Assets ALBERT EINSTEIN HEALTHCARE NETWORK CONSOLIDATED BALANCE SHEET DECEMBER 31, 2014 AND JUNE 30, 2014 (Thousands only) December 31, 2014 June 30, 2014 Cash and cash equivalents $ 65,597 $ 50,905 Short term investment 8,912 8,896 Patient accounts receivable, less allowances 133, ,444 Other accounts receivable, less allowances 14,988 14,110 Inventory 18,391 17,457 Other current assets 12,686 8,593 Assets whose use is limited current portion Board designated funds 0 0 Professional liability self insurance 9,398 0 Donor restricted 10,031 10,015 Trustee held funds 8,976 10,292 Total Current Assets 282, ,712 Investments 222, ,299 Assets Whose Use is Limited: Board designated 10,101 19,109 Professional liability self insurance 82,226 78,767 Donor restricted 71,593 72,673 Trustee held funds 47,667 45,201 Land, buildings, and equipment 648, ,146 Beneficial interests in perpetual trusts 43,578 44,205 Recoverable Professional Liability 46,794 46,794 Other noncurrent assets 63,661 65,430 Total Assets $ 1,519,103 $ 1,541,336 Liabilities and Net Assets Current installments of bonds payable 16,563 16,085 Current portion of longterm obligations 4,590 4,604 Accounts payable and accrued expenses 127, ,930 Accrued vacation and other employee costs 30,695 46,389 Accrued professional liability current portion 45,354 36,025 Total Current Liabilities 224, ,033 Bonds payable 393, ,552 Longterm obligations 15,254 14,525 Accrued pension liability 125, ,020 Accrued professional liability claims 148, ,228 Professional Liability Recoverable 46,794 46,794 Other noncurrent liabilities 33,864 32,387 Total Liabilities 988, ,539 Net Assets Unrestricted 395, ,061 Temporarily restricted 81,374 82,781 Permanently restricted 54,029 53,956 Total Net Assets 530, ,797 Total Liabilities and Net Assets $ 1,519,103 $ 1,541,336 10

12 ALBERT EINSTEIN HEALTHCARE NETWORK STATEMENT OF REVENUES AND EXPENSES FOR THE SIX MONTHS ENDED December 31, 2014 (Thousands Only) Month to Date Year to Date Prior Year to Date Net inpatient service revenue Net outpatient service revenue Tobacco industry settlement Other revenue Net assets released from restrictions $ 56,827 $ 317,421 $ 306,705 36, , , , ,621 22,835 27, ,294 1,736 Total revenue 98, , ,821 Salaries Physician and outside services Employee benefits Pension Supplies Depreciation and amortization Professional services Interest Insurance Utilities Other Expenditure of net assets released 49, , ,092 5,851 32,652 31,067 7,649 46,568 47,972 2,010 10,946 6,402 12,484 72,112 70,916 5,613 33,223 32,788 2,514 12,909 11,887 2,023 12,303 12,667 (1,056) 9,191 11,219 1,306 7,685 8,105 6,938 36,915 35, ,294 1,736 Total expenses 95, , ,073 2,397 Operating income (loss) (10,781) (15,252) Investment income Net realized G/L on investment Unrestricted gifts & bequests Contribution expense Other 2,793 4,465 7,640 2,292 27,388 11,771 1,074 3,501 1,876 (102) (1,936) (1,430) Nonoperating gains, net 6,173 34,104 20,531 Excess (Deficiency) of revenue over expenses $ 8,570 $ 23,323 $ 5,279 11

13 ALBERT EINSTEIN HEALTHCARE NETWORK CONSOLIDATED STATMENT OF CHANGES IN NET ASSETS FOR THE SIX MONTHS ENDED DECEMBER 31, 2014 (Thousands only) Unrestricted net assets (continued): Excess of revenue over expenses Change in net unrealized gains on investments Additional minimum pension liability Other $ 23,324 (34,921) 0 0 Increase (decrease) in unrestricted net assets (11,597) Temporarily restricted net assets Contributions Net realized gains(losses) and income on investments Change in net unrealized gains on investments Net assets released from restrictions Investment Impairment 1,722 10,303 (9,137) (4,294) 0 Increase (decrease) in temporarily restricted net assets (1,407) Permanently restricted net assets Contributions for endowment funds Change in beneficial interest in perpetual trust Change in net unrealized gains on investments (939) Increase (decrease) in permanently restricted net assets 73 Increase (decrease) in net assets Net assets, beginning of period Net assets, end of period (12,930) 543,797 $ 530,867 12

14 ALBERT EINSTEIN HEALTHCARE NETWORK CONSOLIDATED STATMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED DECEMBER 31, 2014 (Thousands only) Cash flows from operating activities: Increase (decrease) net assets Adjustments to reconcile increase (decrease) in net assets to net cash provided by operating activities and nonoperating revenue: Minimum pension liability provision Depreciation and amortization Change in net unrealized gains on assets whose use is limited Decrease (increase) in: Patient accounts receivable Other assets Increase (decrease) in: Accounts payable Accrued payroll, taxes and other witholdings Other accrued expenses and liabilities Estimated malpractice liablilty Net cash provided (used) by operating activities and nonoperating revenue Cash flows from investing activities: Additions to buildings and equipment EMCM Additions to buildings and equipment Other noncurrent assets (increase) decrease Trustee held funds EMCM Sale of assets whose use is limited, net Net cash provided (used) by investing activities Cash flows from financing activities: Payment of Bonds Proceeds from longterm obligations Repayment longterm obligation EMCM deferred financing fees Principal payments under capital lease obligations Net cash provided (used) by financing activities Net increase (decrease) in unrestricted cash, cash equivalents, shortterm investments, longterm investments and board designated funds Unrestricted cash, cash equivalents, shortterm investments, longterm investments and board designated funds, at beginning of period Unrestricted cash, cash equivalents, shortterm investments, longterm investments and board designated funds, at end of period $(12,930) 33,223 10,077 (4,231) (3,823) 9,860 (14,440) 4,132 (9,419) 12,449 (23,477) (1,673) (1,311) (8,852) (35,313) (13,065) (2,099) (141) (15,304) (38,168) 345,209 $ 307,041 This statement is presented on a cash management basis which includes shortterm and longterm investments and board designated funds as beginning and end of period cash equivalents (under generally accepted accounting principles, shortterm investments, longterm investments and board designated funds are not included as cash equivalents). 13

15 ALBERT EINSTEIN HEALTHCARE NETWORK NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2014 ($ in thousands) 1. Key financial performance standards for the Series 2009A Bonds Obligated Group are as follows: Actual December 31, 2014 S&P 2012 Medians BBB BBB + Operating Margin (1.16)% 1.30% 2.50% Debt Service Coverage (MADS Rating Agencies Basis) 6.4 X 2.7 X 3.1 X Days Cash on Hand Cash Cushion Ratio (MADS Basis) 17.6 X 9.4 X 12.5 X Debt Service as a Percentage of Revenue (MADS Basis) 1.7 % Debt to Capitalization Ratio 25 % 3.8% 3.3% 37% 37% 2. Financial performance covenant under the Series 2009A Master Trust Indenture is as follows: Obligated Group Actual Obligated Group Minimum Standard Debt Service Coverage (1) Fiscal year ended June 30, x 1.10 x 3. Financial performance covenants under $50 million liquidity lines of credit with banks are as follows: Debt Service Coverage (2) Four quarters ended December 31, 2014 Days Cash on Hand (3) Six months ended December 31, 2014 Obligated Group Actual 2.57 x 114 Obligated Group Minimum Standard 1.25 x Financial performance covenant under Obligated Group guarantees of EMCM letters of credit is as follows: Debt to Capitalization Ratio (3) Six months ended December 31, 2014 Obligated Group Actual 25% Obligated Group Minimum Standard 45% (1) Basis most recent fiscal year ended June 30, (2) Rolling four quarter basis at the end of each fiscal quarter. (3) Measured at the end of each fiscal quarter's annual yeartodate information. 14

16 15 ALBERT EINSTEIN HEALTHCARE NETWORK NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2014 ($ in thousands) 5. Key FHA financial performance guidelines for EMCM's Series 2010 Mortgage Revenue Bonds are as follows: December 31, 2014 EMCM Operating Margin 4.45% FHA 1.00% EMCM Debt Service Coverage EMCM Days Cash on Hand 1.2 X 1.4 X Key financial performance standards for the Network are as follows: S&P 2012 Medians December 31, 2014 BBB BBB + Operating Margin (1.91)% 1.30% 2.50% Debt Service Coverage (MADS Basis) 3.5 X 2.7 X 3.1 X Days Cash on Hand Cash Cushion Ratio (MADS Basis) 7.9 X 9.4 X 12.5 X Debt Service as a Percentage of Revenue (MADS Basis) 3.5 % 3.8% 3.3% Debt to Capitalization Ratio 52 % 37% 37% 7. Investment Impairments: The Network manages several investment portfolios through investment advisors who control the trading of individual securities in those portfolios. Investment advisors trade securities based upon future market opportunities and other considerations. A security s market value relative to its original cost is not a paramount consideration. The Network adjusts its portfolio values to market values each month. This marktomarket adjustment on the balance sheet is reflected as a change in net unrealized gains in the statement of changes in net assets. When securities are sold, the Network records the difference between the proceeds received and its original cost as a realized gain. Under generally accepted accounting principles, when organizations do not directly control the holding of individual securities, or do not intend to hold a security when its market value is below cost until such time as its market value exceeds cost, the cost basis of such security must be written down to the lower market value. This write down for unrestricted investments is classified as an investment impairment in the statement of revenues and expenses rather than as an unrealized loss in the statement of changes in net assets. The lower market value becomes the adjusted basis for recording realized gains or losses in future periods. Investment impairments are measured and recorded as of June 30th each year.

17 ALBERT EINSTEIN HEALTHCARE NETWORK OPERATING INCOME BY DIVISION FOR THE SIX MONTHS ENDED DECEMBER 31, 2014 (Thousands Only) Month to Date Year to Date Prior Year to Date AEMC Acute Care Division $(113) $(2,844) $(5,581) AEMC Willowcrest (314) (1,811) (2,090) AEMC Moss Rehab 1,455 9,332 10,071 Total AEMC 1,028 4,677 2,400 Belmont 130 (1,010) (1,608) Albert Einstein Healthcare Services 1,158 3, Einstein Practice Plan, Inc. (1,592) (8,741) (6,786) Einstein Community Health Associates (329) (1,724) (885) Albert Einstein Physician Services (1,921) (10,465) (7,671) Parent Company 19 1,414 1,002 Obligated Group Operating Income (744) (5,384) (5,877) Einstein Medical Center Montgomery 786 (4,044) (8,257) Montgomery Health System (57) (357) (685) Einstein Physicians Montgomery (617) (3,895) (3,319) Broadline 3,131 3,250 3,311 Einstein/USP Surgical Center (103) (350) (427) Consolidated Operating Income $ 2,396 $(10,780) $(15,254) 16

18 Report Generation CONBS ALBERT EINSTEIN HEALTHCARE NETWORK 01/21/15 CONSOLIDATING BALANCE SHEET 16:41 December 31, 2014 (Thousands Only) Reclass Obligated Einstein/USP Einstein Reclass and Group Surgical Physicians and AEHN Description Parent AEMC Belmont EPPI ECHA Eliminations Combined EMCM Center MHS Montgomery EHS Broadline Eliminations Consolidated ASSETS Current Cash & cash equivalents ,964 5,929 1, ,111 8, ,148 1,471 4,884 (4,884) 65,597 Short term investments 0 2,014 6, , ,912 Patient AR, net 0 70,600 8,630 24,281 3, ,533 25, , ,676 Other accounts receivable 2,375 15,784 (3) ,912 (3,930) (254) (240) 14,989 Inventory 0 12, ,467 4, ,391 Prepaid expenses and other 2,964 6, , , ,589 (1,322) 12,685 Due from restricted funds Due from affiliate companies (75,052) 85,345 5,054 (17) 1, ,536 (6,196) 0 (178) (9,757) (6) (400) 0 (1) Assets whose use is limited: Board designated funds Professional liab self Ins , ,398 Donor restricted 0 9, , ,032 Trustee held funds , ,976 Total current sssets (68,882) 247,548 26,765 28,248 5, ,162 37, (6,115) 1,485 15,471 (6,446) 282,655 Investments 0 205, , , ,342 (77,342) 222,432 Assets whose use is limited: Board designated 10, , ,101 Professional liability ,226 82,226 Donor restricted 0 71, , ,593 Trustee held funds 0 14, ,691 32, ,667 Land, buildings,& equipment 99, ,926 2, , , ,052 4,285 2,708 1, ,397 Advances to Montgomery Hosp Benefical intnt in perp trst 0 34, , , ,578 Other noncurrent assets: Investment in affiliates (723) 18, , ,673 Investment in subsidiary 1, , (1,382) 0 Pledges receivable 6, ,124 6, ,723 Deferred financing costs 0 1, ,868 7, ,197 Recoverable Prof Liab 0 32, , ,297 1, , ,794 Other assets 4,428 (39) 0 16, , , ,068 Total Assets 51, ,679 29,790 44,620 6, , ,261 4,892 30,930 (1,063) 1, ,315 (2,229) 1,519,104 ======== =========== ======== ======== ======== =========== =========== ========= ======== ======== ======= ======= ========= =========== ===========

19 Report Generation CONBS ALBERT EINSTEIN HEALTHCARE NETWORK 01/21/15 CONSOLIDATING BALANCE SHEET 16:41 December 31, 2014 (Thousands Only) Reclass Obligated Einstein/USP Einstein Reclass and Group Surgical Physicians and AEHN Description Parent AEMC Belmont EPPI ECHA Eliminations Combined EMCM Center MHS Montgomery EHS Broadline Eliminations Consolidated Liabilities & net assets Current portion of LT Debt: Curr installmts bonds payble 0 9, ,413 7, ,563 Curr portion LT obligations ,516 1, (240) 4,589 Accts payable&accrued expenses Accounts payable 17,296 38, , ,585 10, , ,035 Accrued expenses 1,811 36, , ,145 2, , ,445 (65,208) 48,311 Loan interest payable 0 1, ,398 6, ,111 Accrued vacation&oth emp cost: Accrued payroll and taxes 0 16, (1) 0 16, ,304 Accrued vacation 1,093 5, , ,170 1, ,389 Accrued pension liability Accrued professional liab 0 15, , ,628 45,354 Total current liabilities 20, ,242 2,169 6,771 2, ,190 30,697 2,243 6,321 2, ,464 (37,820) 224,656 Bonds payable 0 94,411 2, , , ,756 Loans payable 0 2, ,955 9,670 2, ,254 Accrued pension liability 22,412 59, ,182 2, , ,473 5, ,573 Accrued professional liab 0 100, ,862 2, ,637 3, , ,337 Prof Liab Recoverable 0 32, , ,297 1, , ,794 Other noncurrent liabilites 2,960 10, , ,502 2, , ,865 Total Liabilities 45, ,161 5,298 44,324 5, , ,524 5,314 26,728 14, ,966 (1,562) 988,235 Net Assets: Unrestricted 6, ,510 24, , ,665 56,142 (421) (5,538) (15,448) 1,381 27,349 (667) 395,463 Temporarily restricted 0 73, ,216 7, ,375 Permanently restricted 0 44, , , ,029 Total net assets 6, ,518 24, , ,735 63,736 (421) 4,202 (15,448) 1,381 27,349 (667) 530,867 Total liabilities & net assets 51, ,679 29,789 44,620 6, , ,260 4,893 30,930 (1,063) 1, ,315 (2,229) 1,519,102 ======== =========== ======== ======== ======== =========== =========== ========= ======== ======== ======= ======= ========= =========== ===========

20 Report Generation CONIS ALBERT EINSTEIN HEALTHCARE NETWORK 01/21/15 CONSOLIDATING STATEMENT OF REVENUES AND EXPENSES 16:41 For the 6 months ended December 31, 2014 (Thousands Only) Reclass Obligated Einstein/USP Einstein Reclass AEHN and Group Surgical Physician and AEHN Description Parent AEMC Belmont EPPI ECHA Eliminations Combined EMCM CENTER MHS Montgomery EHS Broadline Eliminations Consolidated Net inpatient service revenue 0 224,009 15,554 25,330 0 (2,065) 262,828 54, ,420 Net outpatient serice revenue 0 105,178 3,046 46,021 14, ,876 34,119 2, , (1,624) 218,079 Investment Income Tobacco industry settlement , ,277 Other Operating Revenue 57,069 20, (49,483) 28,517 2, ,602 (18,534) 22,836 Net Assets rlsd fr restriction 0 4, , ,293 Total revenue 57, ,913 19,038 71,355 14,925 (51,548) 465,752 90,997 2, , ,602 (20,158) 563,905 Operating Expenses: Salaries 23, ,156 12,597 52,482 8,185 (2,065) 251,503 31, , ,890 Physician & outside services 3,520 15,774 1,410 3,733 1, ,623 7, (1,699) 32,650 Employee benefits 3,518 27,784 2,407 4,135 1, ,024 6, , ,568 Pension 2,032 5, , , ,947 Supplies ,117 1,020 1,428 1, ,361 15, , ,110 Depreciation & amortization 6,350 16, ,017 9, ,223 Professional Services 4,868 3, , ,615 1, ,908 Interest 0 3, ,530 8, ,302 Insurance 149 3, , ,696 1, ,947 (9,591) 9,192 Provision for bad debt Utilities 2,074 3, , ,684 Other expenses 9,655 17, ,017 1, ,571 4, , (1,630) 36,915 Divisional expense reclass AEHN management fee 0 42, ,072 1,162 (49,483) 1 7, (7,319) 1 Expend of NA rlsd fr restrict 0 4, , ,293 Total expenses 55, ,236 20,046 80,097 16,649 (51,548) 471,134 95,041 2, , ,353 (20,158) 574,683 Operating income(loss) 1,415 4,677 (1,008) (8,742) (1,724) 0 (5,382) (4,044) (350) (357) (3,894) 0 3,249 0 (10,778) Nonoperating gains: Investment income (8) 3, , ,464 Net realized G/L on Investment 0 26, , , (123) 0 27,388 Investment Impairment Unrestricted gifts & bequests 0 1, ,837 1, ,502 Contribution expense (1,936) (1,936) (1,936) Other revenue Nonoperating gains, net (1,944) 31, ,751 2, , (123) ,104 Excess of revenue over expenses (529) 36,362 (998) (8,742) (1,724) 0 24,369 (1,917) (350) 1,713 (3,894) 0 3, ,326 ======== ======== ======= ======== ======= ========== ========== ========== ======== ======= ======== ======= ======== ========== ==========

21 Report Generation CONCNA ALBERT EINSTEIN HEALTHCARE NETWORK 01/21/15 CONSOLIDATING STATEMENT OF CHANGES IN NET ASSETS 16:41 For the 6 months ended December 31, 2014 (Thousands Only) Reclass Obligated Einstein/USP Einstein Reclass AEHN and Group Surgical Physicians and AEHN Description Parent AEMC Belmont EPPI ECHA Eliminations Combined EMCM Center MHS Montgomery EHS Broadline Eliminations Consolidated Unrestricted net assetscontd: Net Income (loss) (531) 36,362 (1,000) (8,741) (1,724) 0 24,366 (1,917) (349) 1,712 (3,895) 0 3, ,323 Chg in unrealized gains on inv (2,726) (31,879) (4) (34,609) 0 0 (1,637) 0 0 1,325 0 (34,921) Equity in earnings of subs Minimum pension liability prov Transfers among affiliates (1,724) (8,741) 0 8,741 1, (325) Paid in Capital JV Other Inc (dec) in unrstr net assets (4,981) (4,258) (1,004) (10,243) (1,917) (349) 400 (4,220) 0 4, (11,598) Temp restr assets: Contributions 0 1, , ,722 Net gains & inc on investments 0 10, , ,303 Net assets released fr restric 0 (4,254) (4,254) (39) (4,293) Chg in unrealized gains on inv 0 (9,127) (9,127) 0 0 (10) (9,137) Investment Impairment MHS Contribution revenue Inc (dec) temp restr net asset 0 (1,525) (1,525) (1,405) Perm restr net assets: Contributions for endowment fd Inc in int in perpetual trust Chg in unrealized gains on inv 0 (797) (797) 0 0 (143) (940) MHS Contribution revenue Inc in perm restr net assets 0 (97) (97) Inc (dec) in net assets (4,981) (5,880) (1,004) (11,865) (1,801) (349) 574 (4,220) 0 4, (12,930) Net assets, begin period 11, ,400 25, , ,601 65,537 (71) 3,627 (11,228) 1,381 22,897 (946) 543,798 Net assets, end of period 6, ,520 24, , ,736 63,736 (420) 4,201 (15,448) 1,381 27,349 (667) 530,868 ======== ======== ======= ======== ======= ========== ========== ========== ======== ======= ======= ======= ======== ========== ==========

22 ALBERT EINSTEIN HEALTHCARE NETWORK CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED DECEMBER 31, 2014 (Thousands only) AEHN (Parent) AEMC Belmont EPPI ECHA Reclass and Eliminations Obligated Group Combined EMCM Einstein/USP Surgical Center MHS Einstein Physicians Montgomery EHS Broadline Reclass and Eliminations AEHN Consolidated Cash flows from operating activities: Increase (decrease) net assets $(4,980) $(5,882) $(1,003) $ $ $ $(11,865) $(1,802) $(349) $ 575 $(4,220) $ $ 4,452 $ 279 $(12,930) Adjustments to reconcile increase (decrease) in net assets to net cash provided by operating activities and Minimum pension liability provision Depreciation and amortization 6,350 16, ,017 9, ,223 Change in net unrealized gains on assets whose use is limited 9,924 9, ,077 Decrease (increase) in: Patient accounts receivable 385 (1,624) (1,813) 122 (2,930) (1,214) 78 (165) (4,231) Other assets (3,990) (6,747) 192 2,211 (1,518) (9,852) 4, (2,944) 4,018 (952) 1,043 (3,821) Increase (decrease) in: Accounts payable 3,201 5,197 (10) (1,036) 397 7,749 1, ,860 Accrued payroll, taxes and other witholdings (13,998) (13,998) 11 (453) (14,440) Other accrued expenses and liabilities 1,114 1, , (117) (1,275) (163) 9,338 (9,313) 4,130 Estimated malpractice liablilty (5,065) (5,065) 200 (111) 404 (9,379) 4,532 (9,419) Net cash provided (used) by operating activities and nonoperating revenue 1,695 1,695 (1,737) ,887 13, (3,642) 395 3,459 (3,459) 12,449 Cash flows from investing activities: Additions to buildings and equipment (10,477) (12,334) (167) (1) (137) (23,116) (87) (242) (32) (23,477) EMCM Additions to buildings and equipment (1,672) (1,672) Other noncurrent assets (increase) decrease Trustee held funds EMCM (1,311) (1,311) Sale of assets whose use is limited, net (8,803) 2 (8,801) (51) (8,852) Net cash provided (used) by investing activities (10,477) (21,137) (165) (1) (137) (31,917) (2,983) (87) (293) (32) (35,312) Cash flows from financing activities: Payment of Bonds (8,691) (244) (8,935) (4,130) (13,065) Proceeds from longterm obligations Repayment of longterm obligations (1,758) (341) (2,099) EMCM deferred financing fees Principal payments under capital lease obligations 1 (141) (140) Net cash provided (used) by financing activities (8,691) (244) (8,935) (5,888) (340) (141) (15,304) Net increase(decrease) in unrestricted cash,cash equivalents, shortterm investments, longterm investments and board designated Unrestricted cash, cash equivalents, shortterm investments, longterm investments and board designated funds, at beginning of period Unrestricted cash, cash equivalents, shortterm investments, (8,782) 19,714 (28,133) (2,146) 224 (128) (38,965) 4, (4,076) 363 3,459 (3,459) (38,167) 280,780 14,973 1, ,758 4,233 (108) 21, ,471 78,767 (78,767) 345,209 longterm investments and board designated funds, at end of period $ 10,932 $ 252,647 $ 12,827 $ 1,720 $ 667 $ $ 278,793 $ 8,607 $ 29 $ 16,995 $ 1,147 $ 1,471 $ 82,226 $(82,226) $ 307,042 This statement is presented on a cash management basis which includes shortterm and longterm investments and board designated funds as beginning and end of period cash equivalents (undergenerally accepted accounting principles, shortterm investments, longterm investments and boarddesignated funds are not included as cash equivalents). 21