SUMMA HEALTH CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 2018

Transcription

1 SUMMA HEALTH CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 2018

2 SUMMA HEALTH AND SUBSIDIARIES Consolidated Statements of Financial Position December 31, 2017 December 31 Assets Current assets: Cash cash equivalents $ 224, ,214 Assets whose use is limited 9,276 9,276 Investments 25,444 19,712 Patient accounts receivable, net 121, ,925 Premiums receivable 1,165 2,604 Other receivables 26,691 20,960 Due from third party payors 5,562 2,908 Inventories 14,340 14,402 Prepaid expenses other 9,652 14,208 Total current assets 437, ,209 Assets whose use is limited: Under bond indenture agreements 113, ,767 Under self-insurance funding requirements 47,588 53,607 Restricted by donors 38,716 36,391 Total noncurrent assets whose use is limited 200, ,765 Less assets whose use is limited - required for current liabilities 9,276 9,276 Noncurrent assets whose use is limited 190, ,489 Contributions receivable, net 6,641 6,274 Property equipment, net 534, ,264 Other assets: Investment in ventures 2,289 7,431 Long-Term Investments 749, ,545 Other assets 27,953 41,077 Total noncurrent assets 780, ,053 Total assets $ 1,949,914 1,926,289 Page 1

3 SUMMA HEALTH AND SUBSIDIARIES Consolidated Statements of Financial Position December 31, 2017 December 31 Liabilities Net Assets Current liabilities: Current portion of long term-debt $ 7,860 8,175 Current portion of capital lease obligation 1,261 1,261 Accounts payable 53,354 67,485 Accrued salaries, wages, benefits 55,622 45,734 Medical claims payable 33,234 37,946 Unearned premium revenue 8,998 8,965 Current portion of estimated malpractice liability 9,276 9,276 Due to third party payors 5,147 2,622 Other current liabilities 23,978 19,241 Total current liabilities 198, ,705 Noncurrent liabilities: Accrued pension 12,218 13,485 Malpractice liability 30,719 27,173 Long-term debt, net of current portion 593, ,561 Capital lease obligation, net of current portion 26,803 27,758 Accrued postretirement benefits Interest rate swap 6,535 11,124 Due to third party payors 12,080 12,101 Other noncurrent liabilities 15,384 14,732 Total Liabilities 896, ,331 Net assets: Unrestricted 1,002, ,760 Noncontrolling ownership interest in subsidiaries 5,734 1,876 Temporarily restricted 22,246 23,236 Permanently restricted 22,956 23,086 Total net assets 1,053,024 1,022,958 Total liabilities net assets $ 1,949,914 1,926,289 Page 2

4 Current Month SUMMA HEALTH AND SUBSIDIARIES Consolidated Statements of Operation Year to Date Actual Budget Variance to Budget Actual Budget Variance to Budget Unrestricted revenue: $ 71,684 68,379 3,305 Net patient service revenue less bad debts $ 662, ,695 22,559 34,847 35,623 (776) Premiums earned 321, ,209 (936) 3,334 4,125 (791) Other operating revenue 37,052 36, Net assets released from restrictions 4,177 2,226 1, , ,571 1,813 Total revenue, gains, other support 1,024,756 1,000,605 24,151 Expenses: 41,157 38,760 2,397 Salaries wages 364, ,573 16,391 5,676 5, Employee benefits 57,507 52,814 4,693 22,513 22,707 (194) care claims 207, ,437 4,944 19,047 20,010 (963) Materials supplies 190, ,192 3,588 13,768 14,771 (1,003) Contracts professional fees 119, ,219 (14,291) 102, , Total operating expenses 940, ,235 15,325 8,223 6,908 1,315 Operating income before interest, depreciation, amortization expenses 84,196 75,370 8,826 5,306 5,419 (113) Depreciation amortization 48,055 49,187 (1,132) 1,831 1,845 (14) Interest 17,512 16, ,086 (356) 1,442 Operating income (loss) 18,629 9,390 9,239 Other income (expense): 403 2,089 (1,686) Investment income 10,095 18,800 (8,705) - (30) 30 Investment Income Joint Ventures (5,142) (190) (4,952) 1,023 (176) 1,199 Derivative instrument gain (loss) 3,528 (1,588) 5,116 (91) (14) (77) Provision for income tax 89 (65) 154 (328) (272) (56) Other (3,247) (2,504) (743) 1,007 1,597 (590) Total other income (expense) 5,323 14,453 (9,130) $ 2,093 1, Excess (Deficiency) of revenue over expenses $ 23,952 23, Page 3

5 Current Month SUMMA HEALTH AND SUBSIDIARIES Consolidated Statements of Operation Year to Date Actual Prior Year Variance to Prior Year Actual Prior Year Variance to Prior Year Unrestricted revenue: $ 71,684 69,329 2,355 Net patient service revenue less bad debts $ 662, ,176 42,078 34,847 33,804 1,043 Premiums earned 321, ,813 13,460 3,334 3,619 (285) Other operating revenue 37,052 34,087 2, Net assets released from restrictions 4,177 2,966 1, , ,974 3,410 Total revenue, gains, other support 1,024, ,042 59,714 Expenses: 41,157 38,756 2,401 Salaries wages 364, ,900 (3,936) 5,676 5,801 (125) Employee benefits 57,507 55,069 2,438 22,513 23,135 (622) care claims 207, ,144 1,237 19,047 19,524 (477) Materials supplies 190, ,717 4,063 13,768 13, Contracts professional fees 119, ,275 (3,347) 102, ,610 1,551 Total operating expenses 940, , ,223 6,364 1,859 Operating income before interest, depreciation, amortization expenses 84,196 24,937 59,259 5,306 5, Depreciation amortization 48,055 46,499 1,556 1,831 1, Interest 17,512 15,126 2,386 1,086 (467) 1,553 Operating income (loss) 18,629 (36,688) 55,317 Other income (expense): 403 1,696 (1,293) Investment income 10,095 44,178 (34,083) - (120) 120 Investment Income Joint Ventures (5,142) (1,926) (3,216) 1,023 (118) 1,141 Derivative instrument gain (loss) 3,528 (1,545) 5,073 (91) (93) 2 Provision for income tax 89 (424) 513 (328) (201) (127) Other (3,247) (2,323) (924) 1,007 1,164 (157) Total other income (expense) 5,323 37,960 (32,637) $ 2, ,396 Excess (Deficiency) of revenue over expenses $ 23,952 1,272 22,680 Page 4

6 SUMMA HEALTH AND SUBSIDIARIES Consolidated Statement of Net Assets MTD YTD Unrestricted Net Assets: Excess of revenues over expenses $ 2,093 23,952 Change in net unrealized gain (loss) on investments (131) (646) Post retirement benefit adjustment (18) (162) Net assets released from restriction for capital Other 1,478 7,904 Increase in unrestricted net assets 3,545 31,181 Temporarily Restricted Net Assets: Income on investments, including unrealized gains losses (64) 484 Contributions, grants other, net 370 2,806 Net assets released from restrictions (642) (4,279) Increase in temporarily restricted net assets (336) (989) Permanently Restricted Net Assets: Income on investments, including unrealized gains losses - 1 Contributions grants, net - (96) Increase (decrease) in permanently restricted net assets - (125) Increase in Net Assets 3,209 30,067 Net Assets at Beginning of Month Year 1,049,816 1,022,958 Net Assets at End of Period $ 1,053,025 1,053,025 Page 5

7 Subsidiaries Consolidated Statements of Cash Flows Operating activities MTD YTD Increase in net assets 3,208 30,066 Adjustments to reconcile change in net assets to net cash provided by operating activities gains losses: Change in noncontrolling interest in subsidiaries (22) 3,858 Net realized unrealized loss (gain) on investment (403) (10,095) Depreciation amortization 5,306 48,055 Net loss (gain) on disposal of fixed assets - (9,500) Provision for doubtful accounts 7,905 66,129 Restricted contributions other (370) (2,680) Changes in operating assets liabilities: Patient accounts receivable (12,525) (67,450) Premiums receivable 279 1,439 Other receivables (3,890) (5,731) Due to (from) third-party payors 1,728 (150) Prepaid other assets 10,113 18,659 Accounts payable 2,107 (14,131) Medical claims payable 578 (4,712) Unearned premium revenue (21,430) 33 Other current liabilities 1,286 14,625 Other long-term liabilities 28 2,931 Net cash (used in) provided by operating activities (7,213) 66,757 Cash flows from investing activities: Expenditures for property equipment (15,899) (94,212) Net Purchases/Sales of investments 4,374 29,026 Net Purchases/Sales of assets whose use is limited 13,684 78,742 Net cash (used in) investing activities 2,159 13,556 Cash flows from financing activities: Repayment of short long-term debt capital lease obligations (311) (3,102) Restricted contributions other 370 2,680 Net cash provided by (used in) financing activities 59 (422) Net (decrease) increase in cash cash equivalents (4,995) 79,891 Cash cash equivalents at beginning of period 229, ,214 Cash cash equivalents at end of period 224, ,105 Page 6

8 SUMMA HEALTH Consolidated Net Income MONTH-TO-DATE YEAR-TO-DATE Variance Variance Variance Variance From Prior From From Prior From Actual Budget Budget Year Prior Year Actual Budget Budget Year Prior Year $ 7,068 $ 637 $ 6,431 $ 174 $ 6,894 System $ 49,288 $ 30,361 $ 18,927 $ (828) $ 50, (60) Rehab Hospital (1) 2,560 2,676 (116) 2, (4,583) (2,831) (1,752) (2,883) (1,700) Medical Group (29,136) (26,373) (2,763) (27,119) (2,017) (131) 551 (682) (229) 98 Care Subsidiary 1,570 6,856 (5,286) (6,050) 7,620 (17) 8 (25) (41) 24 Integrated Organization ,273 (539) (27) (39) (215) Network (318) (357) 39 (220) (98) (9) 43 (29) Ohio Choice, Inc. (1) (74) (122) 82 (204) (239) 117 New Collaborative (1,029) (801) (228) (2,385) 1, (275) at Home Hospice 1,248 2,790 (1,542) - 1,248 (309) 783 (1,092) 3,053 (3,362) & related (2) 926 5,711 (4,785) 5,152 (4,226) 2,292 (52) 2, ,018 Subtotal 26,050 21,105 4,945 (27,455) 53,505 (250) (231) (19) (194) (56) Foundation (1,853) (1,991) 138 (2,456) 603 (500) - (500) - (500) Middlebury Assurance Co. (1,000) - (1,000) (1,500) 500 (456) (73) (383) (547) 91 Consolidating Adjustments (3) (4,568) (9,724) 5,156 (5,277) 709 1,086 (356) 1,442 (467) 1,553 Total Operating Income (Loss) 18,629 9,390 9,239 (36,688) 55,317 5,782 1,059 4,723 1,476 4,306 Realized Investment Income 21,467 9,531 11,936 21, (30) 30 (120) 120 Investment Income Joint Ventures (5,142) (190) (4,952) (1,926) (3,216) (5,379) 1,030 (6,409) 220 (5,599) Unrealized Gains/Losses on Investments (11,372) 9,269 (20,641) 23,092 (34,464) 1,023 (176) 1,199 (118) 1,141 Derivative Instrument gain (loss) 3,528 (1,588) 5,116 (1,545) 5,073 (419) (286) (133) (294) (125) All Other (4) (3,158) (2,569) (589) (2,747) (411) 1,007 1,597 (590) 1,164 (157) Subtotal 5,323 14,453 (9,130) 37,960 (32,637) $ 2,093 $ 1,241 $ 852 $ 697 $ 1,396 Gr Total $ 23,952 $ 23,843 $ 109 $ 1,272 $ 22,680 This presentation is not in accordance with GAAP. (1) Joint Venture income/loss represents SHS share. (2) & related includes the parent company, SHS Corp, SMSO, minority interests. (3) Consolidating adjustments pertain to Middlebury Assurance Company other. (4) Minority interest, provision for income taxes other. Page 7

9 Consolidated Net Income Current Month Year To Date Variance Variance Variance Variance Actual Budget to Budget Prior Year to Last Year Actual Budget to Budget Prior Year to Last Year Operating income (loss) $ 2,884 $ (1,460) $ 4,344 $ (2,501) $ 5,385 Providers (a,d) $ 23,960 $ 9,454 $ 14,506 $ (25,506) $ 49,466 (161) 543 (704) (39) (122) Insurance support companies (b) 2,193 6,741 $ (4,548) (4,716) 6,909 (1,637) 561 (2,198) 2,073 (3,710) All other (c) (7,524) (6,805) (719) (6,466) (1,058) $ 1,086 $ (356) $ 1,442 $ (467) $ 1,553 Subtotal operating income (loss) $ 18,629 $ 9,390 $ 9,239 $ (36,688) $ 55,317 5,782 1,059 4,723 1,476 4,306 Investment income (g) 21,467 9,531 11,936 21, (30) 30 (120) 120 Investment Income Joint Ventures (d) (5,142) (190) (4,952) (1,926) (3,216) (5,379) 1,030 (6,409) 220 (5,599) Unrealized (loss) gain on trading securities (11,372) 9,269 (20,641) 23,092 (34,464) 1,023 (176) 1,199 (118) 1,141 Derivative Instrument gain (loss) (e) 3,528 (1,588) 5,116 (1,545) 5,073 (419) (286) (133) (294) (125) All other (f) (3,158) (2,569) (589) (2,747) (411) $ 2,093 $ 1,241 $ 852 $ 697 $ 1,396 Excess revenues over expense $ 23,952 $ 23,843 $ 109 $ 1,272 $ 22,680 a) SHS, SRH, SEG SHMG. b) SC, SHN, SMSO, SISO OHC. c) SH Parent, SF, MAC, NHC. d) Includes SHS share of SWRH income or loss. e) Mark-to-Market change in value of derivative instrument interest expense due to counterparty. f) Minority interest, provision for income taxes other. g) Includes SHS share of ARIS Cornerstone Midwest. Page 8

10 Consolidating Statement of Financial Position System Rehab Hospital Medical Group Network Care Subsidiary Integrated Organization Management Organization Ohio Choice, Inc. New Collaborative at ASSETS Current assets: Cash cash equivalents $ (362,775) 521,525 2,408 1,506 1,045 29,115 3,758 7,001 7, ,422 9, ,105 Short-term investments ,148 22, ,444 Assets whose use is limited , ,276 Patient accounts receivable, net - 114,032 2,458 9, , (12,219) 121,246 Premium receivables , ,165 Receivable from affiliated organization 177,209 56, , (540) 24 - (235,915) - Other receivables, net 733 5, ,712 1, ,691 Due from third party payors - 5, ,562 Inventories , ,340 Prepaid expenses other 4,381 1, ,315-3, (2,826) 9,652 Total current assets (179,801) 718,359 5,279 13,263 4,241 73,678 6,045 9,326 7,673 1,395 10,564 18,419 - (250,960) 437,481 Assets whose use is limited Assets under bond indenture agr - 113, ,719 Self insurance funding requirement , ,588 Assets - temp donor restrictions 21, ,518 Permanent donor restrictions 16, ,198 Total assets whose use is limited 38, , , ,023 LTD use asst rqd for current liab , ,276 Noncurrent assets whose use is limited 38, , , ,747 Contributions receivable 6, ,641 Property equipment, net 48, , , ,471 2, ,921 Home Hospice Middlebury Assurance Company Foundation Consolidating eliminating entries System total Other assets: Prepaid intangible assets Receivable from affiliated organizations Investment in subsidiaries 50,211 7, (57,798) - Investment in ventures - 2, ,289 Long-term investments 710, ,309 31, ,882 Other 18,633 7, ,953 Total other assets 779,479 17, ,309 32, (57,798) 780,124 Total Assets $ 692,693 1,330,148 5,838 16,109 11, ,017 8,605 9,326 7,674 1,395 10,648 56,668 - (308,758) 1,949,914 LIABILITIES Current Liabilities: Current portion of long-term debt $ - 7, ,860 Current portion of capital lease obligation ,261 Accounts payable 30,513 14, , ,579 1, ,354 Accrued salaries, wages, benefits 39,549 11, , (1,539) (189) 55,622 Medical claims payable , , (12,030) 33,234 Unearned premium revenue , ,217 - (2,826) 8,998 Current estimated professional liability , ,276 Payable to affiliated organizations - 3, ,123-2, , ,854 (239,461) - Due to third party payors - 5, ,147 Other current liabilities ,518 1, ,620 1, ,978 Total Current Liabilities 71,091 53,471 2, , ,722 1,470 4,430 1,194 4,270 1,868 16,053 7,129 (254,506) 198,730 Noncurrent liabilities: Estimated malpractice liability - 12, ,076 - (2,641) 30,719 Long-term debt, net of current portion - 593, ,729 Capital lease obligation 2,689 24, ,803 Accrued postretirement benefits Accrued pension - 11, ,218 Interest Rate Swap - 6, ,535 Due to third party payors - 12, ,080 Other noncurrent liabilities 1,614 10,899 1, ,878 - (9,147) 15,384 Total Liabilities 75, ,396 3, , ,551 1,747 4,430 1,194 4,271 1,868 47,007 7,129 (266,294) 896,890 Net assets: Unrestricted 572, ,355 1,004 (212,198) 10,569 46,466 6,858 4,896 5,184 (2,876) 5,268 9,661 (7,129) (42,464) 1,002,088 Noncontrolling ownership interest in subsidiaries ,296-3, ,734 Temporarily restricted 22, ,246 Permanently restricted 22, ,956 Total Net Assets 617, ,752 1,930 (212,198) 10,569 46,466 6,858 4,896 6,480 (2,876) 8,780 9,661 (7,129) (42,464) 1,053,024 Total Liabilities & Fund Balance $ 692,693 1,330,148 5,838 16,109 11, ,017 8,605 9,326 7,674 1,395 10,648 56,668 - (308,758) 1,949,914 Page 9

11 COMPARATIVE OPERATING STATEMENT - ACTUAL PERIOD-TO-DATE ENDED Rehab Medical Care System Hospital Group Network Subsidiary Organization Organization Choice, Inc. Collaborative Hospice Company Foundation entries System Totals Unrestricted revenue, gains, other support Net patient service revenue less bad debts $ - 68,440 2,144 7, , (9,188) 71,684 Premiums earned , (924) 34,847 Other operating revenue 11,238 2, , , (18,549) 3,334 Net assets released from restriction Total unrestricted revenue 11,757 71,200 2,153 11, , , , (28,661) 110,384 Expenses Integrated Management Ohio New Salaries wages 4,358 20, , , , , (1,869) 41,157 Employee benefits 786 4, , (1,866) 5,676 care claims , (7,697) 22,513 Materials supplies 3,491 13, , (1) (279) 19,047 Contracts professional fees 2,402 14, , , , (16,494) 7,025 Physician services 9 6, ,743 Total operating expenses 11,046 58,597 1,697 16, , , ,577 1, (28,205) 102,161 Operating income before interest, depreciation, amortization expenses , (4,539) (26) (99) (122) 286 (500) (250) (456) 8,223 Depreciation amortization 1,330 3, ,306 Interest 23 1, ,831 at Home Middlebury Assurance Consolidating eliminating Operating income (loss) (642) 7, (4,583) (27) (131) (17) - 22 (122) 284 (500) (250) (456) 1,086 Other income (expense) Investment income 1,881 3, ,782 Unrealized gain (loss) (4,989) (20) (370) - - (5,379) Investment Income Joint Ventures (294) (105) - Derivative Instrument gain (loss) - 1, ,023 Minority interest - - (211) (3) - (114) (328) Provision for income taxes (90) 4 - (5) (91) Total other income (expense) (3,402) 5,237 (211) - 1 (87) 4 - (8) - (114) (308) - (105) 1,007 Excess (Deficiency) of revenue over expenses $ (4,044) 12, (4,583) (26) (218) (13) - 14 (122) 170 (808) (250) (561) 2,093 Page 10

12 COMPARATIVE OPERATING STATEMENT - BUDGET PERIOD-TO-DATE ENDED Rehab Medical Care System Hospital Group Network Subsidiary Organization Organization Choice, Inc. Collaborative Hospice Company Foundation entries System Totals Unrestricted revenue, gains, other support Net patient service revenue less bad debts $ - 62,330 2,244 8, , (8,016) 68,379 Premiums earned , (1,002) 35,623 Other operating revenue 11,691 2, , , (18,827) 4,125 Net assets released from restriction Total unrestricted revenue 12,135 65,224 2,252 12, , , , (27,845) 108,571 Expenses Integrated Management Ohio New Salaries wages 3,813 19, , , , , (2,020) 38,760 Employee benefits 721 4, , (2,349) 5,415 care claims , (7,440) 22,707 Materials supplies 3,720 13, , (255) 20,010 Contracts professional fees 2,023 14, , , (15,708) 7,735 Physician services 5 6, ,036 Total operating expenses 10,282 58,972 1,682 15, , , , (27,772) 101,663 Operating income before interest, depreciation, amortization expenses 1,853 6, (2,792) (38) (231) (73) 6,908 Depreciation amortization 1,330 3, ,419 Interest 29 1, ,845 at Home Middlebury Assurance Consolidating eliminating Operating income (loss) (2,831) (39) (231) (73) (356) Other income (expense) Investment income ,059 Unrealized gain (loss) ,030 Investment Income Joint Ventures (485) (30) Derivative Instrument gain (loss) - (176) (176) Minority interest - - (266) (6) (272) Provision for income taxes (17) (14) Total other income (expense) 1, (266) (23) (485) 1,597 Excess (Deficiency) of revenue over expenses $ 2, (2,831) (231) (558) 1,241 Page 11

13 COMPARATIVE OPERATING STATEMENT - ACTUAL YEAR-TO-DATE ENDED Rehab Medical Care System Hospital Group Network Subsidiary Organization Organization Choice, Inc. Collaborative Hospice Company Foundation entries System Totals Unrestricted revenue, gains, other support Net patient service revenue less bad debts $ - 629,356 20,882 75, , (84,856) 662,254 Premiums earned , ,682 - (8,727) 321,273 Other operating revenue 103,154 28, ,034 1, ,032 20,547 1,590 3, (167,513) 37,052 Net assets released from restriction 4, ,177 Total unrestricted revenue 107, ,296 20, ,926 1, ,412 5,032 20,547 1,590 3,654 20,980 7,682 - (261,096) 1,024,756 Expenses Integrated Management Ohio New Salaries wages 40, ,863 7, ,485 1,148 15,223 1,296 16, ,645 11,451-1,215 (16,518) 364,964 Employee benefits 7,722 44,962 1,492 14, , , , (21,900) 57,507 care claims , (68,475) 207,381 Materials supplies 30, ,964 4,439 12, (4) , (2,403) 190,780 Contracts professional fees 18, ,579 2,072 13, ,354 1, ,512 2,913 8, (147,232) 59,782 Physician services 46 57,445-2, ,146 Total operating expenses 97, ,813 15, ,682 1, ,731 2,904 20,501 1,258 4,683 18,891 8,682 1,853 (256,528) 940,560 Operating income before interest, depreciation, amortization expenses 9, ,483 5,070 (28,756) (312) 1,681 2, (1,029) 2,089 (1,000) (1,853) (4,568) 84,196 Depreciation amortization 12,100 33, , ,055 Interest , ,512 at Home Middlebury Assurance Consolidating eliminating Operating income (loss) (2,438) 49,288 4,923 (29,136) (318) 1, (1,029) 2,080 (1,000) (1,853) (4,568) 18,629 Other income (expense) Investment income 9,771 9, , ,467 Unrealized gain (loss) (9,214) (67) (2,091) - - (11,372) Investment Income Joint Ventures (46) (1,334) (3,762) (5,142) Derivative Instrument gain (loss) - 3, ,528 Minority interest - - (2,363) (52) - (832) (3,247) Provision for income taxes (156) - (71) Total other income (expense) ,293 (2,363) (155) - (123) 17 (832) (253) - (3,762) 5,323 Excess (Deficiency) of revenue over expenses $ (1,927) 60,581 2,560 (29,136) (248) 2, (1,012) 1,248 (1,253) (1,853) (8,330) 23,952 Page 12

14 COMPARATIVE OPERATING STATEMENT - BUDGET YEAR-TO-DATE ENDED Rehab Medical Care System Hospital Group Network Subsidiary Organization Organization Choice, Inc. Collaborative Hospice Company Foundation entries System Totals Unrestricted revenue, gains, other support Net patient service revenue less bad debts $ - 599,086 20,756 76, , (81,581) 639,695 Premiums earned , ,612 - (9,018) 322,209 Other operating revenue 105,233 26, ,188 1, ,325 21,860 1,644 3, (169,449) 36,475 Net assets released from restriction 2, ,226 Total unrestricted revenue 107, ,217 20, ,484 1, ,696 5,325 21,860 1,644 3,894 25,138 7,612 - (260,048) 1,000,605 Expenses Integrated Management Ohio New Salaries wages 34, ,402 7,686 98,489 1,259 15,912 1,192 17, ,827 11,486-1,174 (18,178) 348,573 Employee benefits 6,228 40,127 1,513 14, , , , (21,139) 52,814 care claims , (67,336) 202,437 Materials supplies 32, ,611 3,509 13, , (2,294) 187,192 Contracts professional fees 18, ,002 2,830 13, ,960 1, ,370 3,706 7, (141,377) 70,842 Physician services 36 60,613-2, ,377 Total operating expenses 91, ,755 15, ,502 1, ,596 3,485 21,860 1,353 4,695 22,347 7,612 1,991 (250,324) 925,235 Operating income before interest, depreciation, amortization expenses 15,471 81,462 5,295 (26,018) (346) 7,100 1, (801) 2,791 - (1,991) (9,724) 75,370 Depreciation amortization 12,099 34, , ,187 Interest , ,793 at Home Middlebury Assurance Consolidating eliminating Operating income (loss) 3,107 30,361 5,145 (26,373) (357) 6, (801) 2,790 - (1,991) (9,724) 9,390 Other income (expense) Investment income 7, ,531 Unrealized gain (loss) 7, , ,269 Investment Income Joint Ventures 1,500 2, (4,365) (190) Derivative Instrument gain (loss) - (1,588) (1,588) Minority interest - - (2,469) (35) (2,504) Provision for income taxes (100) (65) Total other income (expense) 17,404 1,462 (2,469) (135) - - 1,500 - (4,365) 14,453 Excess (Deficiency) of revenue over expenses $ 20,511 31,823 2,676 (26,373) 37 7, (801) 2,790 1,500 (1,991) (14,089) 23,843 Page 13

15 Consolidating Statement of Operations Changes in Net Assets Care Integrated Management Middlebury Consolidating Rehab Medical Ohio New s at Home Assurance eliminating System System Hospital Group Network Subsidiary Organization Choice, Inc. Collaborative Organization Hospice Company Foundation entries Totals Unrestricted Net Assets: Excess of revenues over expenses $ (4,044) 12, (4,583) (26) (218) (13) 14 (122) (808) (250) (561) 2,093 Change in net unrealized gain (loss) on investments (5) (126) (131) Post retirement benefit adjustment - (18) (18) Net assets released from restriction for capital Net asset contribution to(from) Affiliated Organization Other (3) 1 (517) ,878 1,478 Increase (decrease) in unrestricted net assets (4,047) 12,411 (288) (4,583) (31) (344) (12) 17 (122) (808) (250) 1,317 3,545 Temporarily Restricted Net Assets: Income on investments, including unrealized gains losses (64) (64) Contributions, grants other, net Net assets released from restrictions (642) (642) Other Increase (decrease) in temporarily restricted net assets (336) (336) Permanently Restricted Net Assets: Income on investments, including unrealized gains losses Contributions grants, net Change in donor designation Increase (decrease) in permanently restricted net assets Increase (decrease) in Net Assets (4,383) 12,411 (288) (4,583) (31) (344) (12) 17 (122) (808) (250) 1,317 3,209 Net Assets at Beginning of Month 621, ,342 2,218 (207,615) 10,600 46,810 6,870 6,463 (2,754) 4,896 8,495 10,469 (6,879) (43,781) 1,049,816 Net Assets at End of Period $ 617, ,753 1,930 (212,198) 10,569 46,466 6,858 6,480 (2,876) 4,896 8,780 9,661 (7,129) (42,464) 1,053,025 Page 14

16 Consolidating Statement of Operations Changes in Net Assets Year to Date System Rehab Hospital Medical Group Network Care Subsidiary Integrated Organization Ohio Choice, Inc. New Collaborative Management s Organization at Home Hospice Middlebury Assurance Company Foundation Consolidating eliminating entries System Totals Unrestricted Net Assets: Excess of revenues over expenses $ (1,927) 60,581 2,560 (29,136) (248) 2, (1,012) 46 1,248 (1,253) (1,853) (8,330) 23,952 Change in net unrealized gain (loss) on investments (35) (611) (646) Post retirement benefit adjustment - (162) (162) Net assets released from restriction for capital Net asset contribution to(from) Affiliated Organization (455) ,000 (3,000) Other (1) (6) (1,947) (1) 1 (205) - 52 (3) - 7,532 (5,000) (1) 7,483 7,904 Increase (decrease) in unrestricted net assets (2,383) 61, (29,137) (282) 4,674 (2,421) 259 (1,015) 46 8,780 (6,253) (1,854) (847) 31,181 Temporarily Restricted Net Assets: Income on investments, including unrealized gains losses Contributions, grants other, net 2, ,806 Net assets released from restrictions (4,279) (4,279) Other Increase (decrease) in temporarily restricted net assets (989) (989) Permanently Restricted Net Assets: Income on investments, including unrealized gains losses Contributions grants, net (96) (96) Change in donor designation (30) (30) Increase (decrease) in permanently restricted net assets (125) (125) Increase (decrease) in Net Assets (3,497) 61, (29,137) (282) 4,674 (2,421) 259 (1,015) 46 8,780 (6,253) (1,854) (847) 30,067 Net Assets at Beginning of Year 620, ,752 1,317 (183,061) 10,851 41,792 9,279 6,221 (1,861) 4,850-15,914 (5,275) (41,617) 1,022,958 Net Assets at End of Period $ 617, ,753 1,930 (212,198) 10,569 46,466 6,858 6,480 (2,876) 4,896 8,780 9,661 (7,129) (42,464) 1,053,025 Page 15