Total current assets 353,304, ,259,127

Transcription

1 EASTERN MAINE HEALTHCARE SYSTEMS CONSOLIDATING BALANCE SHEET June 28, 2014 June September ASSETS CURRENT ASSETS: Cash and cash equivalents $ 83,104,071 $ 57,902,627 Short-term investments 14,799,977 14,598,861 Assets whose use is limited or restricted 55,851,975 46,780,643 Patient and trade accounts receivable 212,412, ,403,518 Less allowance for uncollectible accounts (67,702,491) (43,295,429) Net patient and trade accounts receivable 144,710, ,108,089 Estimated third-party payor settlements 9,426,609 10,896,424 Other receivables 13,021,528 12,046,856 Inventory 15,416,765 11,289,051 Prepaid expenses and other current assets 16,973,363 17,636,576 Total current assets 353,304, ,259,127 PROPERTY AND EQUIPMENT 1,055,762, ,430,421 Less accumulated depreciation and amortization (538,963,737) (504,578,303) Property and equipment - net 516,798, ,852,118 NONCURRENT ASSETS WHOSE USE IS LIMITED OR RESTRICTED: Internally designated by the Board of Directors: Funded depreciation 197,846, ,706,243 Other designated funds 99,727, ,518,624 Other funds held by trustees 197,689, ,536,460 Temporarily donor-restricted 43,359,213 36,530,467 Permanently donor-restricted 14,269,362 13,065,916 Beneficial interest in perpetual trusts 12,299,908 10,852,028 Total noncurrent assets whose use is limited or restricted 565,191, ,209,738 OTHER ASSETS: Estimated settlements receivable from the state of Maine 16,716,015 21,603,795 Deferred financing costs 3,180,526 2,755,125 Intangibles and other assets 21,753,021 20,921,792 Total other assets 41,649,562 45,280,712 TOTAL ASSETS $ 1,476,944,735 $ 1,269,601,695

2 EASTERN MAINE HEALTHCARE SYSTEMS CONSOLIDATING BALANCE SHEET June 28, 2014 June September LIABILITIES AND NET ASSETS CURRENT LIABILITIES: Accounts payable $ 51,030,807 $ 51,690,475 Accrued expenses and other current liabilities 90,029,086 76,041,191 Estimated third-party payor settlements 32,702,504 30,157,822 Line-of-credit borrowings 11,346,360 57,909 Current portion of long-term debt 11,202,904 12,246,074 Current portion of accrual for self-insurance 12,252,594 10,442,142 Total current liabilities 208,564, ,635,613 NONCURRENT LIABILITIES: Long-term debt - net of current portion 376,494, ,307,829 Accrual for self-insurance and postretirement benefits 153,686, ,949,325 Estimated third-party payor settlements 32,490,323 38,947,396 Other liabilities 11,700,844 4,557,169 Total noncurrent liabilities 574,372, ,761,719 Total liabilities 782,936, ,397,332 NET ASSETS: Unrestricted 623,902, ,276,529 Temporarily restricted 43,359,213 36,530,467 Permanently restricted 26,569,270 23,917,944 Total controlled net assets 693,831, ,724,940 Unrestricted-uncontrolled interest 177, ,423 Total net assets 694,008, ,204,363 TOTAL LIABILITIES AND NET ASSETS $ 1,476,944,735 $ 1,269,601,695

3 Eastern Maine Healthcare Systems CONSOLIDATED STATEMENT OF OPERATIONS For the Nine Months Ended June 28, 2014 REVENUE: Current Year Prior Year Patient service revenue (net of contractual allowances and discounts) $ 958,119,662 $ 725,078,164 Less provision of bad debts (48,006,972) (30,488,468) Net patient service revenue 910,112, ,589,696 Sales and contract revenue 18,590,589 18,649,118 Other revenue 27,513,096 28,408,239 Net assets released from restrictions - operations 1,652,013 1,125,493 Prior period adjustment 15,161,786 3,686,345 Total revenue 973,030, ,458,891 EXPENSES: Compensation and employee benefits 586,287, ,758,484 Supplies and other 335,755, ,507,495 Total expenses 922,042, ,265,979 INCOME FROM OPERATIONS BEFORE INTEREST, DEPRECIATION AND AMORTIZATION 50,987,684 48,192,912 Depreciation and amortization 36,868,817 29,595,127 Interest 5,896,075 5,316,628 INCOME FROM OPERATIONS BEFORE GAINS AND LOSSES 8,222,792 13,281,157 OTHER GAINS (LOSSES): Income tax (expense) benefit (1,322,793) (29,369) Joint venture income (loss) 70,427 (780,710) Investment income and other - net 3,019,143 3,270,532 Total other gains (losses) - net 1,766,777 2,460,453 EXCESS OF REVENUE AND GAINS OVER EXPENSES AND LOSSES BEFORE DISCONTINUED OPERATIONS 9,989,569 15,741,610 DISCONTINUED OPERATIONS - 15,263,811 EXCESS OF REVENUE AND GAINS OVER EXPENSES AND LOSSES BEFORE NONCONTROLLING INTEREST 9,989,569 31,005,421 NONCONTROLLING INTEREST 298,175 (9,263) EXCESS OF REVENUE AND GAINS OVER EXPENSES AND LOSSES 10,287,744 30,996,158 NET ASSETS RELEASED FROM RESTRICTIONS - capital acquisitions 1,346,454 1,463,133 CHANGE IN NET UNREALIZED GAINS AND LOSSES ON INVESTMENTS 11,115, ,338 NET TRANSFERS TO RESTRICTED FUNDS (2,500) - NET ASSETS OF CONTRIBUTED AFFILIATES 65,879,539 - INCREASE IN UNRESTRICTED NET ASSETS $ 88,626,331 $ 33,381,629 Operating Margin 0.85% 1.78% Total Margin 1.02% 4.06% EBIDA Margin 5.24% 6.46%

4 OBLIGATED GROUP CONSOLIDATING BALANCE SHEET June 28, 2014 Eastern Maine Acadia Healthcare Eastern Maine Eliminations June 28, 2014 Hospital Systems Medical Center and Obligated Group ASSETS (Consolidated) (Consolidated) (Consolidated) Reclassifications Consolidated CURRENT ASSETS: Cash and cash equivalents $ 3,559,368 $ 983,103 $ 29,336,041 $ - $ 33,878,512 Short-term investments 14,401, ,401,165 Assets whose use is limited or restricted 1,288,933 41,682,148 10,378,353-53,349,434 Patient and trade accounts receivable 5,570, ,416 99,247,769 (98,415) 105,053,385 Less allowance for uncollectible accounts (3,060,805) - (29,023,878) - (32,084,683) Net patient and trade accounts receivable 2,509, ,416 70,223,891 (98,415) 72,968,702 Estimated third-party payor settlements 1,986,179-2,601,271-4,587,450 Interentity receivables 187,749 16,382,282 3,113,603 (4,377,345) 15,306,289 Other receivables 75,587 12,572,148 3,869,352 (97,500) 16,419,587 Inventory 138,513 97,626 2,289,474-2,525,613 Prepaid expenses and other current assets 460,431 2,464,076 10,582,990 (2,423,967) 11,083,530 Total current assets 24,607,735 74,514, ,394,975 (6,997,227) 224,520,282 PROPERTY AND EQUIPMENT 33,928,731 95,231, ,773, ,933,893 Less accumulated depreciation and amortization (23,269,995) (53,617,144) (303,030,337) - (379,917,476) Property and equipment - net 10,658,736 41,614, ,743, ,016,417 NONCURRENT ASSETS WHOSE USE IS LIMITED OR RESTRICTED: Internally designated by the Board of Directors: Funded depreciation 12,975,107 25,070, ,444, ,490,333 Other designated funds 23,345 20,889 73,229,129-73,273,363 Other funds held by trustees 14,527 56,710, ,002, ,726,862 Temporarily donor-restricted 320,737 53,275 27,448,846-27,822,858 Permanently donor-restricted 110,352 22,600 8,884,411-9,017,363 Beneficial interest in perpetual trusts - - 2,145,027-2,145,027 Total noncurrent assets whose use is limited or restricted 13,444,068 81,877, ,153, ,475,806 OTHER ASSETS: Investments in subsidiaries - 4,901, ,901,924 Note receivable from affiliate - 390,000 - (390,000) - Estimated settlements receivable from the state of Maine 590,070-6,995,572-7,585,642 Deferred financing costs 76,829-2,194,314-2,271,143 Intangibles and other assets 920,523 2,904,905 22,179,402 (20,309,398) 5,695,432 Total other assets 1,587,422 8,196,829 31,369,288 (20,699,398) 20,454,141 TOTAL ASSETS $ 50,297,961 $ 206,204,075 $ 775,661,235 $ (27,696,625) $ 1,004,466,646

5 OBLIGATED GROUP CONSOLIDATING BALANCE SHEET June 28, 2014 Eastern Maine Acadia Healthcare Eastern Maine Eliminations June 28, 2014 Hospital Systems Medical Center and Obligated Group LIABILITIES AND NET ASSETS (Consolidated) (Consolidated) (Consolidated) Reclassifications Consolidated CURRENT LIABILITIES: Accounts payable $ 713,602 $ 7,101,554 $ 15,364,846 $ - $ 23,180,002 Interentity payables 255,211 4,108,830 4,144,327 (4,475,760) 4,032,608 Accrued expenses and other current liabilities 3,573,305 12,719,051 36,978,411 (2,423,967) 50,846,800 Estimated third-party payor settlements 5,181,608-11,954,990-17,136,598 Line-of-credit borrowings - 11,298, ,298,104 Current portion of long-term debt 1,070,000 1,984,005 2,707,217 (97,500) 5,663,722 Current portion of accrual for self-insurance - 10,766,245 1,486,349-12,252,594 Total current liabilities 10,793,726 47,977,789 72,636,140 (6,997,227) 124,410,428 NONCURRENT LIABILITIES: Long-term debt - net of current portion 7,752,282 24,882, ,079,266 (390,000) 246,324,019 Accrual for self-insurance and postretirement benefits 9,421,882 48,104,948 90,939,726 (20,309,398) 128,157,158 Estimated third-party payor settlements 6,130,193-15,658,201-21,788,394 Other liabilities - 1,150,219 1,794,383-2,944,602 Total noncurrent liabilities 23,304,357 74,137, ,471,576 (20,699,398) 399,214,173 Total liabilities 34,098, ,115, ,107,716 (27,696,625) 523,624,601 NET ASSETS: Unrestricted 15,768,789 84,117, ,075, ,961,590 Temporarily restricted 320,737 53,275 27,448,846-27,822,858 Permanently restricted 110,352 22,600 11,029,438-11,162,390 Total controlled net assets 16,199,878 84,193, ,553, ,946,838 Unrestricted-uncontrolled interest - (104,793) - - (104,793) Total net assets 16,199,878 84,088, ,553, ,842,045 TOTAL LIABILITIES AND NET ASSETS $ 50,297,961 $ 206,204,075 $ 775,661,235 $ (27,696,625) $ 1,004,466,646

6 EMHS OBLIGATED GROUP CONSOLIDATING STATEMENT OF OPERATIONS FOR NINE MONTHS ENDED JUNE 28, 2014 Eastern Maine For nine months Acadia Healthcare Eastern Maine Eliminations ended Jun 28, 2014 Hospital Systems Medical Center and Obligated Group (Consolidated) (Consolidated) (Consolidated) Reclassifications Consolidated REVENUE: Patient service revenue (net of contractual allowances and discounts) $ 37,994,510 $ - $ 497,627,702 $ - $ 535,622,212 Less provision of bad debts (2,135,603) - (24,162,421) - (26,298,024) Net patient service revenue 35,858, ,465, ,324,188 Sales and contract revenue 1,413,768 53,110,457 4,553,491 (38,723,111) 20,354,605 Other revenue 411,670 73,701,266 14,980,253 (41,871,870) 47,221,319 Net assets released from restrictions - operations 16,853 13,914 1,081,515-1,112,282 Total revenue 37,701, ,825, ,080,540 (80,594,981) 578,012,394 EXPENSES: Compensation and employee benefits 25,791,938 44,879, ,987,953 (2,041,531) 327,617,482 Supplies and other 10,426,988 84,549, ,275,458 (78,548,950) 223,702,983 Depreciation and amortization 766,306 3,102,607 16,997,864-20,866,777 Interest 277,385 1,050,107 2,019,488 (4,500) 3,342,480 Total expenses 37,262, ,581, ,280,763 (80,594,981) 575,529,722 GAIN (LOSS) FROM OPERATIONS BEFORE GAINS AND LOSSES 438,581 (6,755,686) 8,799,777-2,482,672 OTHER GAINS (LOSSES): Joint venture loss - (320,490) - - (320,490) Investment income and other - net 343,552 2,728,565 1,189,048-4,261,165 Total other gains (losses) - net 343,552 2,408,075 1,189,048-3,940,675 EXCESS (DEFICIENCY)OF REVENUE AND GAINS OVER EXPENSES BEFORE NONCONTROLLING INTEREST 782,133 (4,347,611) 9,988,825-6,423,347 NONCONTROLLING INTEREST - 434, ,423 EXCESS (DEFICIENCY) OF REVENUE AND GAINS OVER EXPENSES 782,133 (3,913,188) 9,988,825-6,857,770 NET ASSETS RELEASED FROM RESTRICTIONS - capital acquisitions 30, , ,317 CHANGE IN NET UNREALIZED GAINS AND LOSSES ON INVESTMENTS (14,690) 2,760,525 6,693,476-9,439,311 NET CHANGE IN FUNDS HELD AT AFFILIATES 6,655 1,326 52,230-60,211 INTERENTITY EQUITY TRANSFERS (337,800) 13,122,429 (9,595,622) - 3,189,007 INCREASE IN UNRESTRICTED NET ASSETS $ 466,800 $ 11,971,092 $ 7,912,724 $ - $ 20,350,616

7 EMHS Parent Statement of Operations The following is a summary of the Statement of Operations of the EMHS Parent for the third fiscal quarter and for the year to date as of June 28, (in thousands) For three months For nine months ended June 28, 2014 ended June 28, 2014 Fiscal Qtr Fiscal Year-to-date Total Revenue $ 44,540 $ 126,826 Total Expenses 47, ,581 Loss From Operations (2,559) (6,755) Non-Operating Income 1,881 2,408 Net Loss Before Noncontrolling Interest (678) (4,347) Noncontrolling Interest Net Loss $ (550) $ (3,913)

8 EMMC Utilization The following table sets forth a brief summary of utilization data for EMMC for the third fiscal quarter and for the year to date as of June 28, For three months For nine months ended June 28, 2014 ended June 28, 2014 Fiscal Qtr Fiscal Year-to-date Inpatient Services Patient Days 26,070 77,402 Admissions 4,833 14,425 Outpatient Services Outpatient Encounters 152, ,930 Emergency Department & Walk-In Care 13,658 40,145 Procedures and Tests Total Surgeries 4,741 13,875 Imaging Tests 6,094 75,869

9 EMMC Statement of Operations The following is a summary of the Statement of Operations of EMMC for the third fiscal quarter and for the year to date as of June 28, (in thousands) For three months For nine months ended June 28, 2014 ended June 28, 2014 Fiscal Qtr Fiscal Year-to-date Total Revenue $ 173,259 $ 494,081 Total Expenses 163, ,281 Income From Operations 10,067 8,800 Non-Operating Income 337 1,189 Net Income $ 10,404 $ 9,989 Excludes Obligated Group Eliminations

10 Acadia Utilization The following table sets forth a brief summary of utilization data for Acadia for the third fiscal quarter and for the year to date as of June 28, For three months For nine months ended June 28, 2014 ended June 28, 2014 Fiscal Qtr Fiscal Year-to-date Inpatient Services Patient Days 5,467 15,570 Admissions 391 1,116 Observation Unit Admissions 369 1,131 Outpatient Encounters Bangor Adult Ambulatory 9,094 25,985 Child & Adolescent Ambulatory 1,954 5,174 Intensive Outpatient Program 3,293 9,776 Child & Adolescent Partial Hospitalization 4,684 13,444 Total Outpatient Encounters 19,025 54,379

11 Acadia Statement of Operations The following is a summary of the Statement of Operations of Acadia for the third fiscal quarter and for the year to date as of June 28, (in thousands) For three months For nine months ended June 28, 2014 ended June 28, 2014 Fiscal Qtr Fiscal Year-to-date Total Revenue $ 12,948 $ 37,701 Total Expenses 12,359 37,263 Income From Operations Non-Operating Income Net Income $ 698 $ 782 Excludes Obligated Group Eliminations

12 Obligated Group Audited Consolidating Statement of Operations The following is the Consolidated Statement of Operations of the Obligated Group for the third fiscal quarter and for the year to date as of June 28, (in thousands) For three months For nine months ended June 28, 2014 ended June 28, 2014 Fiscal Qtr Fiscal Year-to-date REVENUE: Patient services revenue (net of contractual allowances and discounts) $ 187,994 $ 535,622 Less provision of bad debts (9,553) (26,298) Net patient service revenue 178, ,324 Sales and contract revenue 7,641 20,355 Other revenue 17,128 47,221 Net assets released from restrictions - operations 414 1,112 Total revenue 203, ,012 EXPENSES: Compensation and employee benefits 109, ,617 Supplies and other 78, ,703 Depreciation and amortization 6,894 20,867 Interest 1,046 3,342 Total expenses 195, ,529 INCOME FROM OPERATIONS BEFORE GAINS AND LOSSES 8,096 2,483 NONOPERATING GAINS (LOSSES): Joint Venture income (loss) 173 (320) Investment income and other - net 2,155 4,261 Total nonoperating gains (losses)- net 2,328 3,941 Net Income Before Noncontrolling Interest 10,424 6,424 Noncontrolling Interest Net Income 10,552 6,858 NET ASSETS RELEASED FROM RESTRICTIONS - capital acquisitions CHANGE IN NET UNREALIZED GAINS AND LOSSES ON INVESTMENTS 4,286 9,439 NET CHANGE IN FUNDS HELD AT AFFILIATES 3 60 INTERENTITY EQUITY TRANSFERS 8,753 3,189 INCREASE IN UNRESTRICTED NET ASSETS $ 24,041 $ 20,350

13 Obligated Group Audited Consolidating Balance Sheet The following is the Consolidated Balance Sheet of the Obligated Group as of June 28, 2014 and September 28, ASSETS (in thousands) as of Jun 28, 2014 as of Sept 28, 2013 CURRENT ASSETS: Cash and cash equivalents $ 33,879 $ 32,602 Short-term investments 14,401 14,206 Assets whose use is limited or restricted 53,349 44,553 Net patient and trade accounts receivable 72,969 68,692 Estimated third-party payor settlements 4,587 5,763 Interentity receivables 15,306 6,710 Other receivables 16,420 17,332 Inventory 2,526 2,746 Prepaid expenses and other current assets 11,083 13,495 Total current assets 224, ,099 PROPERTY AND EQUIPMENT 664, ,345 Less accumulated depreciation and amortization (379,917) (360,202) Property and equipment - net 285, ,143 NONCURRENT ASSETS WHOSE USE IS LIMITED OR RESTRICTED: Internally designated by the Board of Directors: Funded depreciation 176, ,994 Other designated funds 73,273 82,206 Other funds held by trustees 185, ,492 Temporarily donor-restricted 27,823 23,978 Permanently donor-restricted 9,017 8,959 Beneficial interest in perpetualtrusts 2,145 2,145 Total noncurrent assets whose use is limited or restricted 474, ,774 OTHER ASSETS: Investments in subsidiaries 4,902 (457) Estimated settlements receivable from the state of Maine 7,586 15,101 Deferred financing costs 2,271 2,338 Intangibles and other assets 5,695 5,895 Total other assets 20,454 22,877 Total assets $ 1,004,467 $ 977,893

14 Obligated Group Audited Consolidating Balance Sheet The following is the Consolidated Balance Sheet of the Obligated Group as of June 28, 2014 and September 28, LIABILITIES AND NET ASSETS (in thousands) as of Jun 28, 2014 as of Sept 28, 2013 CURRENT LIABILITIES: Accounts payable $ 23,180 $ 33,878 Interentity payables 4,033 1,866 Accrued expenses and other current liabilities 50,847 56,009 Estimated third-party payor settlements 17,137 12,880 Line-of-credit borrowings 11,298 - Current portion of long-term debt 5,664 5,687 Current portion of accrual for self- insurance benefits 12,252 10,442 Total current liabilities 124, ,762 NONCURRENT LIABILITIES: Long-term debt - net of current portion 246, ,201 Accrual for self-insurance and postretirement benefits 128, ,562 Estimated third-party payor settlements 21,788 28,468 Other liabilities 2,945 3,010 Total noncurrent liabilities 399, ,241 Total liabilities 523, ,003 NET ASSETS: Unrestricted 441, ,612 Temporarily restricted 27,823 23,978 Permanently restricted 11,162 11,104 Total controlled net assets 480, ,694 Unrestricted-uncontrolled interest (105) 196 Total net assets 480, ,890 Total liabilities and net assets $ 1,004,467 $ 977,893

15 Second Quarter Status Report: July 2014 The following work was completed during the months of April through June Foundation work is 75% complete and concrete deck placement is 25% complete. The second of the two large constructions cranes has been mobilized and is now in operation. At this time structural steel erection is approximately 45% complete. Building Information Modeling (BIM) is 50% complete and ahead of all installation activities as per schedule. Key milestones o First Elevated Concrete Slab Placed June 3, 2014 o Completed elevated slab placements for North end levels 2-5 o Connector bridge structure erection complete May 29, 2014 o Site excavation and preparation for foundations is complete o Mock-up Room complete and being utilized for patient feedback o 50% complete with site utility/underground work Outlook for Third Quarter 2014 o Complete all foundation wall work o Continue with structural steel erection south end of project o Complete North end elevated deck placements (levels 6-8) o Complete structural steel fireproofing o Start interior framing o Start exterior facade