NYU Hospitals Center

This document is dated as of July 21, 2016 SPECIAL NOTE CONCERNING FORWARD-LOOKING STATEMENTS. Certain of the discussions included in the following document may include certain forward-looking statements which involve known and unknown risks and uncertainties inherent in the operation of healthcare facilities. Actual actions or results may differ materially from those discussed below. Specific factors that might cause such differences include competition from other healthcare facilities in the service area of NYU Hospitals Center facilities, federal and state regulation of healthcare providers, and reimbursement policies of the state and federal governments and managed care organizations. In particular, statements preceded by, followed by or that include the words believes, estimates, expects, anticipates, plans, intends, scheduled or other similar expressions are or may constitute forward-looking statements. QUARTERLY REPORT (UNAUDITED FINANCIAL INFORMATION) FOR THE NINE MONTHS ENDING MAY 31, 2016 Concerning NYU Hospitals Center The information in this report has been provided by NYU Hospitals Center

NYU HOSPITALS CENTER QUARTERLY REPORT FOR THE NINE MONTHS ENDING MAY 31, 2016 MANAGEMENT S DISCUSSION & ANALYSIS... 1 STATEMENT OF FINANCIAL POSITION... 9 STATEMENT OF OPERATIONS... 10 STATEMENT OF CHANGES IN NET ASSETS... 11 STATEMENT OF CASH FLOWS... 12 UTILIZATION STATISTICS... 13 PAYOR MIX BY DISCHARGES... 14

NYU HOSPITALS CENTER MANAGEMENT S DISCUSSION & ANALYSIS OF RECENT FINANCIAL PERFORMANCE FOR THE NINE MONTHS ENDING MAY 31, 2016 Effective January 1, 2016, NYU Hospitals Center ( NYUHC ) and NYU Lutheran Medical Center ( Lutheran ), effectuated a full asset merger of Lutheran into NYUHC. In accordance with the Generally Accepted Accounting Principles ASC Topic 805, this transaction was accounted for by adopting the pooling of interest methodology with retrospective adjustments in prior period financial statements for the period in which the entities were under common control. Therefore, the accompanying financial statements for the year ended August 31, 2015 and for the nine months ended May 31, 2016 reflect the financial position, operations, changes in net assets and cash flows of the NYUHC, including Lutheran, as if the merger had been completed on September 1, 2015. Presented below is Management s discussion and analysis of NYUHC s financial performance for the nine month period ending May 31, 2016. Summary of Operations for the Nine Months Ending May 31, 2016 and 2015 Results from Operations For the nine months ending May 31, 2016, NYUHC recorded a gain from operations of $249.1 million or a 9.6% operating margin including a $0.6 million loss from the activities at the former Lutheran site ( Brooklyn Campus ). NYUHC recorded total operating revenue of $2.6 billion, 94% from patient revenue and 6% from other sources; of which $397.0 million was attributable to the Brooklyn campus. Net patient service revenue totaled $2.4 billion for the nine months ending May 31, 2016 51% from inpatient operations and 49% was from outpatient operations. This represents a $638.3 million increase over the nine months ending May 31, 2015, of which $370.1 million was attributable to the Brooklyn Campus. In addition, management attributes the increase in net patient service revenue to continued growth in ambulatory services (including ambulatory surgery, cardiac catheterization, cardiac electrophysiology, Perlmutter Clinical Cancer Center, and musculoskeletal center visits), inpatient and outpatient payment rate increases, and continued improvement in revenue realization through revenue cycle initiatives. Net inpatient service revenue increased $391.3 million for the nine month period ending May 31, 2016 compared to the prior year; $299.0 million of this increase was attributable to the Brooklyn Campus. Inpatient discharges, excluding routine newborn, increased by 18,841 cases over the same period of the prior year. Of this increase, 17,286 visits are attributable to the inclusion of the Brooklyn Campus. NYUHC s combined case mix index was 1.78 compared to the May 31, 2015 pre-merger result of 1.91. The case mix index through May 31, 2016 was 1.99 for the Manhattan campus and 1.39 for the Brooklyn campus. 1

Net outpatient service revenue increased $247.0 million for the nine month period ending May 31, 2016 compared to the prior year; of this increase $71.1 million was attributable to the Brooklyn Campus. Management attributes the growth in net outpatient service revenue from May 2015 to May 2016 primarily to increased volume arising from the continued expansion of the NYU School of Medicine ( NYUSoM ) Faculty Group Practices. Emergency room visits, excluding admissions, totaled 90,271 visits, an increase of 50,828 visits over the same period last year, of which 41,205 visits were attributable to the Brooklyn Campus. Ambulatory services at the Perlmutter Clinical Cancer Center increased by 23,878 from the same period ended May 2015. Other Ambulatory and outpatient visits increased by 63,444 visits from the prior year, of which 38,061 visits were attributable to the Brooklyn Campus. NYUHC recorded net investment return of $25.9 million for the nine months ending May 31, 2016 compared to a net return of $9.9 million for the nine months ending May 31, 2015. Investment returns reported as endowment distribution and return on short-term investments and investment return in excess of endowment distribution, net on the accompanying statements of operations are comprised of realized and unrealized gains. Other Revenue includes the equity return on NYUHC s investment in CCC550 Insurance SCC ( CCC550 ) NYUHC s wholly owned malpractice insurance company of $19.0 million. In addition, $22.8 million of Other Revenue was recognized during the period from various sources at the Brooklyn campus. Operating expenses for the nine months ending May 31, 2016 totaled $2.4 billion. Expenses were comprised as follows: 49% in salaries and benefits; 44% in supplies and other and Superstorm Sandy disaster related costs; 5% in depreciation and amortization; and 2% in interest. Operating expenses increased $599.0 million for the nine months ending May 31, 2016 compared to the comparable prior nine month period, of which $397.6 million was attributable to the Brooklyn Campus. Management attributes these increases primarily to the increase in ambulatory volume, increased employee salary and benefit costs, medical supplies and purchased services. Approximately $24.0 million of the increase in operating expenses is attributed to financial support paid to the NYUSoM for services provided by physicians formerly employed by Lutheran, who are now employees of the NYUSoM As of May 31, 2016, NYUHC transferred $50.0 million to NYUSoM which is reported within the other changes in unrestricted net assets of the statements of operations. The proceeds are to support certain joint strategic programs that are expected to promote the common missions of the two institutions. In addition, for the nine-months ending May 31, 2016, NYUHC incurred approximately $40.8 million of costs for administrative, supervisory and teaching services purchased from the NYUSoM. The following other changes in unrestricted net assets, after the gain from operations of $249.1 million, were recorded for the nine months ending May 31, 2016, resulting in a $198.5 million net increase in unrestricted net assets: $(50.0) million in mission support payment to NYUSoM; $(25.5) million in loss on extinguishment of debt attributable to the refunding of prior debt (see below) 2

$12.8 million investment return primarily attributable to market results in the underlying asset portfolio; $2.3 million in disaster recovery reimbursement for capital; $0.8 million in net assets released from restrictions for capital purposes and gain on disposals of property, plant and equipment; $13.1 million in equity transfer; $(69.4) million in pension and postretirement obligations; and $65.3 million net assets released from restrictions for hazard mitigation. Statement of Financial Position Highlights May 31, 2016 As of May 31, 2016, cash and cash equivalents totaled $100.2 million and assets limited as to use (both Board designated and an internally designated capital and program reserve fund) totaled $758.3 million. The capital and program reserve fund is reported within current and long-term assets in the financial statements. As calculated under the Master Trust Indenture (the MTI ) that secures all of NYUHC s bonds, days cash on hand equated to 117 days for the period ended May 31, 2016. Patient accounts receivable were $490.4 million, and accounts payable and accrued expenses (including disaster related costs) were $178.5 million at May 31, 2016. NYUHC has four unsecured lines of credit totaling $500.0 million (Commitments 1, 2, 3, and 4). Commitment no. 1 has a total capacity of $200.0 million; Commitment nos. 2, 3, and 4 each has a total capacity of $100.0 million. Interest is payable on each of these lines of credit at LIBOR plus a spread of 60-75 points. NYUHC had an aggregate outstanding balance on these lines of $86.1 million as of May 31, 2016. Current Activities On May 26 2016, NYUHC issued the Series 2016A revenue bonds totaling $157.3 million through the Dormitory Authority of the State of New York ("DASNY"). The Series 2016A bonds are payable at varying dates from July 2017 to final maturity in July 2040 at fixed rates varying from 2.75% to 5.00%. The proceeds of the Series 2016A bonds were used to current refund all of the outstanding DASNY Series 2006A ; to advance refund a portion of the DASNY Series 2011A bonds in the amount of $102.6 million and to pay certain cost of issuance of the Series 2016A bonds. NYUHC obtained the release of $25.6 million of debt service and construction funds related to the Series 2006A and 2011A bonds in connection with this refunding. The all-in financing cost was 2.76%, which resulted in net present value saving of $29.0 million (16.0% of refunded bonds). 3

Potential Winthrop University Hospital Affiliation NYUHC has entered into a non-binding letter of intent with Winthrop University Hospital ( Winthrop ) concerning a potential affiliation transaction and is working actively to negotiate and complete documentation of the proposed transaction. Winthrop, an acute teaching hospital licensed to operate 591 beds located in Nassau County, provides a full range of inpatient and outpatient services. Completion of the proposed affiliation with Winthrop is subject to successful completion of negotiations between the parties, approval by the various governing boards, and regulatory approvals. There can be no assurance that such negotiations will be completed or that all necessary approvals will be obtained. Superstorm Sandy Update New York University, on behalf of the NYUHC, has initiated lawsuits against its primary insurer, Factory Mutual Insurance Company, and Turner Construction Company to recover additional insurance proceeds, but the ultimate outcome cannot be determined at this time and therefore no revenue relating to these lawsuits has been recorded for the nine months ended May 31, 2016. The table below sets forth a summary of FEMA Capped Grant Program Activity for the years ended August 31, 2014 and 2015 and the nine month period ending May 31, 2016. Summary of FEMA Capped Grant Program Activity (dollars in thousands) Year Ended August 31, Nine Months Ending May 31, 2014 2015 2016 Statement of Operations Operating Revenue $ 84,137 $3,460 $2,896 Non-Operating Revenue 73,374 31,042 2,327 Total Statement of Operations 157,511 34,502 5,223 Statement of Changes in Net Assets 213,253 - - Total Revenues 370,764 34,502 5,223 Cash Received 329,314-75,818 Reallocation of funding between FEMA awards - 14,541 - Receivable $ 41,450 $90,493 $19,898 Balance Sheet Classification of net receivable Disaster recovery receivable - $43,572 $436 Disaster recovery receivable, less current portion 106,336 63,199 63,199 Deferred Revenue-disaster recovery (64,886) (16,278) (43,737) $ 41,450 $90,493 $19,898 4

Management Initiatives Value Based Management NYUHC s Value Based Management ( VBM ) initiative is a multidisciplinary, senior leadership and clinician driven program designed to reduce costs while maintaining or improving the quality of patient care and improving patient outcomes. Although VBM will eventually address costs throughout the Hospital, the initial focus has predominately been on inpatient direct costs. As a result of this program, for the nine months period ending May 31, 2016, management estimates that inpatient CMI adjusted direct costs decreased by 8% per case and average length of stay declined by 0.23 days in comparison to the same period in the baseline year (FY14). 340B Drug Discount Program The 340B Drug Discount Program is a federal government program that requires drug manufacturers to provide outpatient drugs to eligible health care organizations at reduced prices. Effective January 2016, NYUHC qualified for the 340B program. For the period through May 31, 2016, the NYUHC savings under this program total $24.1 million. Commitments Relating to the Merger of Lutheran Medical Center into NYUHC NYUHC and its sole corporate member, NYU Health System (the System ), have committed $190.0 million of funding for the Brooklyn campus over a five year period. The funding is comprised of $50 million to be used for investment in capital projects for clinical programs; $100 million to implement new electronic patient health record, billing, financial and other administrative information systems; and $40 million for investment in other capital projects and equipment. NYUHC expects to fund these commitments through existing investments; cash generated from operations and proceeds from previously issued bonds. Other Discussions NYUHC is also considering affiliating with other acute care hospitals located outside of Manhattan in areas where the Hospital believes that there may be a sufficient number of NYUHC-affiliated physicians to support such an affiliation. Other than the non-binding letter of intent with Winthrop University Hospital noted above, no additional letters of intent or other binding documents have been executed in connection with such potential affiliations, and there can be no assurance any affiliations will be completed. NYUHC is the lead hospital in the NYU Lutheran PPS (formerly known as the Brooklyn Bridges PPS), a network of hospitals, primary care practices and other healthcare providers participating in the Delivery System Reform Incentive Payment Program ( DSRIP ). DSRIP is a New York State initiative to restructure the health care delivery system by reinvesting in the Medicaid program, with the primary goal of reducing avoidable hospital use by 25% over five years. After Lutheran Medical Center merged into NYUHC, NYUHC met the criteria of a safety net provider to participate as a performing provider in DSRIP, as it meets the percentage requirements for Medicaid patients (35% for outpatient and 30% for inpatient). Up to $6.42 billion dollars has been allocated to the program, with payouts to providers based upon achieving predefined results in system transformation, clinical management and population health. In 2015, the DSRIP program announced that approximately $127.8 million had been allocated to NYU Lutheran Medical Center, as lead hospital of the NYU Lutheran PPS, of which $14.1 million was 5

received as of May 31, 2016. To be eligible to receive the full amount of this allocation, the NYU Lutheran PPS must meet certain benchmarks and performance metrics over five years. In addition, in March 2016, NYUHC received two awards as part of the Capital Restructuring Financing Program to fund NYU Lutheran PPS projects at the Lutheran site - approximately $29.2 million to fund the enterprise clinical platform implementation, and, approximately $7.8 million to construct an observation unit. The awards are contingent upon meeting CON and certain other regulatory approvals. Update on Campus Transformation Plan First Avenue Campus In 2007, the Medical Center Board of Trustees approved a campus transformation plan for the First Avenue Campus which provided for construction by NYUHC of an 830,200 square foot, 22-story clinical facility (the Kimmel Pavilion ) and a 75,000 square foot facility housing a cogeneration and electric service plant serving the First Avenue Campus and NYUHC s Department of Radiation Oncology (the Energy Building ) and construction by NYUSM of a 300,000 square foot Science Building to house NYUSM s research facilities (to be funded by NYU). Construction of the Kimmel Pavilion is anticipated to be completed in 2018. The project is to be funded by previously issued debt, philanthropy, and cash generated from operations. Actual spending totaled $557.1 million through May 2016 and an additional $913.5 million is budgeted through project completion. As of May 31, 2016, approximately $172.0 million in pledges are outstanding, $32.5 million in additional contributions are anticipated and the remaining project costs are to be funded by the FEMA Capped grant, capital reserves and cash generated from operations. Construction of the Energy Building is nearing completion. The last component of the project, the energy cogeneration plant, is in the final commissioning phase and is expected to be in full continuous operation by the end of summer. The Energy Building is being funded by previously issued debt and cash generated from operations. Actual spending totaled $227.6 million thorough May 2016 and it is anticipated that the remaining costs will be below the additional $37.8 million budgeted to complete the project. NYUHC has established an internally designated fund which may be used by NYUHC to fund the Kimmel Pavilion and the Energy Building to the extent debt; philanthropy and cash flows are insufficient. As of May 31, 2016, the fund had $758.3 million of unrestricted assets. Cobble Hill ED NYUHC currently operates the Cobble Hill Emergency Department pursuant to a sublease from Fortis Property Group ( Fortis ), which is developing the former LICH campus for residential purposes. Pursuant to agreements among NYUHC, Fortis and the State University of New York( SUNY ), once demolition and remediation of adjacent premises is completed, SUNY is expected to deed the cleared site to NYUHC at no cost, and NYUHC intends to construct a medical services building. The demolition of the existing site is currently underway by Fortis and the cleared site is expected to be turned over to NYUHC for construction in January 2017. The project is expected to be completed in the second quarter of 2019. NYUHC is currently planning the configuration of services to be offered at this site. Brooklyn Campus As part of the integration of the former Lutheran Medical Center facilities, NYUHC is currently considering both near term and longer term enhancements to the Brooklyn campus. For example, in the next one to three years, NYUHC may repurpose some of the existing rehabilitation beds at Augustana for 6

use as acute care beds. Any such conversion would require approval from the New York State Department of Health ( DOH ). In addition, management is developing a long range plan for the Brooklyn facilities that is currently expected to include new construction or substantial renovation anticipated to occur over the next five to ten years. No specific design configurations or cost estimates have been presented to or approved by the NYUHC board, although management believes the costs are likely to be material. Management currently anticipates that such costs would be funded from income generated from operations and potentially additional debt. Any borrowing in connection with such future plans would be made in compliance with the requirements of the MTI. Completion of the long range plan for the Brooklyn facilities is dependent on internal and external approvals and is subject to market conditions and other factors. NYU HOSPITALS CENTER NOTES TO FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDING MAY 31, 2016 NOTE 1: FINANCIAL INFORMATION The financial information furnished herein is unaudited and thus is subject to change; however, in the opinion of management, the information reflects all adjustments that are necessary to fairly state the financial position of NYUHC, and the results of its operations and changes in its unrestricted net assets for the interim periods indicated. NYUHC presumes that users of this interim financial information have read or have access to NYUHC audited financial statements and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. The Financial Statements of NYUHC for the fiscal year ended August 31, 2015 are on file at www.emma.msrb.org and the information contained therein is hereby incorporated in this Quarterly Report. Patient volumes and net operating revenues are subject to seasonal variations caused by a number of factors, including, but not necessarily limited to, seasonal cycles of illness, climate and weather conditions, vacation patterns of both hospital patients and admitting physicians and other factors relating to the timing of elective hospital procedures. Interim operating results are not necessarily representative of operations for a full year for various reasons, including levels of occupancy and other patient volumes, interest rates, unusual or non-recurring items and other seasonal fluctuations. These same considerations apply to all year-to-year comparisons. NOTE 2: BASIS OF PRESENTATION The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States applied on a basis substantially consistent with that of the August 31, 2015 audited financial statements of NYUHC. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. 7

NOTE 3: USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, including estimated uncollectible accounts receivable for services to patients and the valuation of investments, and liabilities including estimated settlements with third party payors and malpractice insurance liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements. Estimates also affect the amounts of revenue and expenses reported during the period. There is at least a reasonable possibility that certain estimates will change by material amounts in the near term. Actual results could differ from those estimates. NOTE 4: RETIREMENT PLANS NYUHC provides pension and similar benefits to its employees through several plans, including various multiemployer plans for union employees, a qualified noncontributory defined benefit plan primarily for eligible nonunion employees of NYUHC and certain of its related organizations, and a nonqualified defined benefit plan for certain executives. NYUHC also provides pension and similar benefits to certain employees through a defined contribution plan. NYUHC funds the noncontributory defined benefit plans in accordance with the minimum funding requirement of the Employee Retirement Income Security Act of 1974 ( ERISA ), plus additional amounts that NYUHC may deem appropriate from time to time. The Pension Protection Act of 2006 required certain changes to the minimum funding requirements, among other provisions, commencing in 2008. Amounts contributed to the defined benefit plans are based on actuarial valuations. Contributions to union plans are based on union employee gross salary levels and rates required under union contractual arrangements. Contributions to NYUHC s defined contribution plan are generally based on percentages of annual salaries. Pension expense included in the statements of operations and changes in net assets for the nine months ending May 31, 2016 totaled $68.9 million. 8

NYU Hospitals Center Statement of Financial Position (Amounts In Thousands) (Unaudited) (Audited) May 2016 August 2015 Assets Current assets: Cash and cash equivalents $ 100,215 $ 126,241 Marketable securities 3,786 43,710 Assets whose use is limited 5,169 12,556 Assets whose use is limited - board designated 5,909 100,223 Patient accounts receivable, less allowances for uncollectibles 490,390 384,287 Due from related organizations 39,389 - Contributions receivable - current 82,728 82,728 Inventories 43,285 40,637 Disaster recoveries receivable 436 43,572 Other current assets 132,547 70,663 Total current assets 903,854 904,617 Marketable securities 23,297 123,574 Assets whose use is limited 52,788 48,827 Assets whose use is limited - board designated 752,418 591,220 Contribution receivable - long term 44,399 74,916 Other assets 99,302 166,534 Disaster recoveries receivable, less current portion 63,199 63,199 Due from related organizations less current portion 9,500 9,500 Property, plant and equipment, net 2,745,342 2,434,078 Total assets $ 4,694,099 $ 4,416,465 Liabilities and net assets Current liabilities: Current portion of long-term debt $ 54,323 52,535 Accounts payable and accrued expenses 173,320 170,214 Accounts payable and accrued expenses - disaster related 5,166 6,265 Accrued salaries and related benefits 116,429 66,784 Accrued interest payable 25,671 11,388 Current portion of accrued postretirement liabilities 2,045 2,045 Disaster recoveries - deferred revenues 43,737 16,278 Deferred Revenues - others 7,288 6,930 Due to related organization 1,613 4,230 Other current liabilities 81,505 65,626 Total current liabilities 511,097 402,295 Long-term debt, less current portion 1,564,148 1,521,895 Accrued pension liabilities 316,447 242,771 Accrued postretirement liabilities 82,146 72,773 Other liabilities 183,466 265,223 Total liabilities 2,657,304 2,504,957 Net assets: Unrestricted 1,635,767 1,437,299 Temporarily restricted 387,983 461,164 Permanently restricted 13,045 13,045 Total net assets 2,036,795 1,911,508 Total liabilities and net assets $ 4,694,099 $ 4,416,465 9

NYU Hospitals Center Statement Of Operations For the Nine Months Months Ending May 31, 2016 (Amounts In Thousands) (Unaudited) (Unaudited) May 2016 May 2015 Operating revenue Net patient service revenue $ 2,448,522 $ 1,810,236 Grants and sponsored programs 432 422 Affiliations 12,046 11,805 Contributions 3,921 4,331 Endowment distribution and return on short-term investments 13,148 10,698 Commerical insurance recoveries 317 - Disaster recovery reimbursement 2,896 2,415 Other revenue 113,777 71,538 Net assets released from restrictions for operating purposes 13,235 5,420 Total operating revenue 2,608,294 1,916,865 Operating expenses Salaries and wages 848,331 593,812 Employee benefits 302,059 213,642 Supplies and other 1,048,366 815,630 Depreciation and amortization 106,945 81,643 Interest 47,799 46,112 Disaster related activities 5,670 9,645 Total operating expenses 2,359,170 1,760,484 Gain from operations 249,124 156,381 Other items Gain (loss) on disposals of property, plant and equipment 236 (2) Loss on extinguishment (25,512) (27,074) Disaster recovery reimbursement for capital 2,327 37,776 Grants for capital asset acquisitions - 47 Investment return in excess of (less than) endowment distribution, net 12,754 (792) Mission based payment to NYUSoM (50,000) (50,000) Excess of revenue over expenses 188,929 116,336 Changes in pension & postretirement obligations (69,390) (8,409) Equity Transfer 13,137 - Net assets released from restrictions for capital purposes 530 3,027 Net assets released from restrictions for hazard mitigation 65,262 56,742 Net change in unrestricted net assets $ 198,468 $ 167,696 10

NYU Hospitals Center Statement of Changes in Net Assets (Amounts In Thousands) For the Nine Months Ended May 31, 2016 (Unaudited) (Audited) Year Ended August 31, 2015 Temporarily Permanently Temporarily Permanently Unrestricted Restricted Restricted Total Unrestricted Restricted Restricted Total Net assets at beginning of year $ 1,437,299 $ 461,164 $ 13,045 $ 1,911,508 $ 1,031,365 $ 516,425 $ 13,045 $ 1,560,835 Excess of revenue over expenses 188,929 - - 188,929 174,571 - - 174,571 Net assets released from restrictions for operations - (13,235) - (13,235) - (7,929) - (7,929) Net assets released from restrictions for capital purposes 530 (530) - - 7,332 (7,332) - - Net assets released from restrictions for hazard mitigation 65,262 (65,262) - - 69,088 (69,088) - - Contributions for capital asset acquistions - - - - 3 (3) - - Change in pension and postretirement plans (69,390) - - (69,390) (21,323) - - (21,323) Gifts, bequests and other items - 5,946-5,946-26,025-26,025 Acquistion of Lutheran - - - - 176,263 4,240-180,503 Equity Transfer 13,137 - - 13,137 - - - - Investment return, net - 683-683 - (133) - (133) Appropriation of endowment distribution - (783) - (783) - (1,041) - (1,041) Total changes in net assets 198,468 (73,181) - 125,287 405,934 (55,261) - 350,673 Net assets at end of year $ 1,635,767 $ 387,983 $ 13,045 $ 2,036,795 $ 1,437,299 $ 461,164 $ 13,045 $ 1,911,508 11

NYU Hospitals Centers Statement of Cash Flows (Amounts In Thousands) 12 (Unaudited) May 2016 Cash flows from operating activities Change in net assets: $ 125,287 Adjustments to reconcile change in net assets to net cash provided by operating activities Depreciation and amortization 106,945 Gain on disposal of property plant and equipment (236) Loss on extinguishment 4,793 Patient care bad debt expense 15,405 Post-retirement benefit adjustment 6,811 Pension retirement benefit adjustment 62,579 Contributions restricted for permanent investment and capital (32,811) Contributed receivable 30,517 Net unrealized and realized gain on investments (8,016) Changes in operating assets and liabilities: Patient accounts receivable (121,508) Disaster recovery receivable 43,136 Accounts payable & accrued expenses (15,984) Accounts payable & accrued expenses - disaster related (1,117) Salaries and related liabilities 49,645 Accrued interest payable 14,283 Due to related organization (42,006) Accrued pension obligation 11,097 Accrued postretirement obligation 2,562 Other operating asset, liabilities, and deferred revenue (73,968) Net cash provided by operating activities 177,414 Cash flows from investing activities Acquisitions of property, plant and equipment (393,873) Changes in investments, net 149,128 Additions to assets limited as to use board designated (66,884) Changes in assets limited as to use, net 46,252 Net cash used in investing activities (265,377) Cash flows from financing activities Contributions restricted for permanent investment and capital 32,811 Proceeds from issuance of long term debt 181,008 Proceeds from borrowing on line of credits 86,101 Payments of deferred financing cost (2,176) Principal Payments on long-term debt (235,807) Net cash provided by financing activities 61,937 Net decrease in cash and cash equivalents (26,026) Cash and cash equivalents Beginning of year 126,241 End of year $ 100,215 Supplemental information Cash paid for interest $ 58,683 Non-cash acquisitions of property, plant and equipment 13,958 Assets acquired under capital leases 10,708 Assets limited as to use-other restrictions 42,041

NYU Hospitals Center Utilization Statistics For the Nine Months Months Ending May 31, 2016 Manhattan Campus Brooklyn Campus NYUHC Manhattan Campus May 2016 May 2016 May 2016 May 2015 Total Inpatient Discharges 31,359 20,245 51,604 29,680 Less Routine Newborn 4,082 2,959 7,041 3,958 Discharges (Excluding Routine Newborn) 27,277 17,286 44,563 25,722 Total Patient Days 145,800 94,325 94,325 140,152 Less Routine Newborn 9,250 7,784 17,034 9,021 Patient Days (Excluding Routine Newborn) 136,550 86,541 223,091 131,131 Average Length of Stay 5.0 5.0 5.0 5.1 Total Case Mix Index 1.99 1.39 1.78 1.91 Average Daily Census 498 316 814 480 Percent of Occupancy 79% 84% 78% 76% ER Visits (excluding admits/observation) 49,066 41,205 90,271 39,443 Cancer Center Visits 212,460-212,460 188,582 Other Ambulatory & Outpatient Visits 478,834 38,061 516,895 453,451 740,360 79,266 819,626 681,476 13

NYU Hospitals Center Payor Mix by Discharges (Excluding Routine Newborn) For the Nine Months Months Ending May 31, 2016 Manhattan Campus Brooklyn Campus NYUHC Manhattan Campus May 2016 May 2016 May 2016 May 2015 Medicare 9,734 36% 6,371 37% 16,105 37% 9,470 36% Medicaid 4,198 15% 7,492 43% 11,690 26% 3,495 14% Commercial & Other 13,151 48% 3,039 18% 16,190 36% 12,530 49% Self-Pay 194 1% 384 2% 578 1% 227 1% Total 27,277 100% 17,286 100% 44,563 100% 25,722 100% 14