NORTHERN ARIZONA HEALTHCARE CONSOLIDATED BALANCE SHEET DECEMBER 2017 FMC VVMC NAH NAHOSC Group NAHPG ELIMINATIONS CONSOLIDATED CURRENT ASSETS Cash and Cash Equivalents 12,809 23,907 7,307 5,274 49,297 6,206-55,503 Patient Receivables 259,067 117,720 (9) 9,558 386,336 13,037-399,373 Allowance for Uncollectibles (182,475) (96,318) 9 (8,073) (286,857) (9,460) - (296,317) Other Receivables 5,259 1,123 846 22 7,250 592 (3,270) 4,572 Inventories at Cost 7,244 2,640-688 10,572 31-10,603 Prepaid Expense 3,057 989 3,895 42 7,983 210-8,193 TOTAL CURRENT ASSETS 104,960 50,062 12,049 7,511 174,582 10,615 (3,270) 181,927 PROPERTY PLANT AND EQUIPMENT Land Improvements 2,078 9,841 - - 11,920 - - 11,920 Buildings 202,841 104,023 7,197 15,757 329,819 2,662-332,480 Major Movable Equipment 130,179 59,921 68,467 1,936 260,504 3,605-264,109 Leasehold Improvements 1,429 1,014 762-3,205 703-3,908 Ambulance Equipment 34,751 - - - 34,751 - - 34,751 Allowance for Depreciation (249,141) (118,926) (63,028) (2,102) (433,197) (4,654) - (437,851) Land 5,901 5,027 872 2,100 13,900 - - 13,900 Construction in Progress 16,701 6,939 11,887-35,527 - - 35,527 TOTAL PROPERTY PLANT & EQUIP 144,741 67,839 26,156 17,692 256,428 2,315-258,743 BOARD DESIGNATED FUNDS Funded Depreciation - Unrestricted 448,198 164,638 - - 612,836 - - 612,836 Assets Limited as to Use 40,123-1,041-41,164 - - 41,164 TOTAL BOARD DESIGNATED FUNDS 488,321 164,638 1,041-654,001 - - 654,001 OTHER ASSETS Land Held for Future Use 6,830 3,548 4,246-14,623 - - 14,623 Investment in NAHPG 8,198 11,174 - - 19,372 - (19,372) - Deferred Charges & Other 1,193 1,031 273 8,446 10,944 - - 10,944 TOTAL OTHER ASSETS 16,221 15,753 4,519 8,446 44,939 - (19,372) 25,567 TOTAL ASSETS 754,243 298,293 43,766 33,648 1,129,949 12,930 (22,642) 1,120,237 2/13/2018
NORTHERN ARIZONA HEALTHCARE CONSOLIDATED BALANCE SHEET DECEMBER 2017 FMC VVMC NAH NAHOSC Group NAHPG ELIMINATIONS CONSOLIDATED CURRENT LIABILITIES Accounts Payable 11,875 7,399 870 330 20,474 546 (3,270) 17,750 Accrued Payable/Payroll Accrual 18,709 2,517 2,552 88 23,866 2,235-26,101 Professional and Audit Fees 124 95 185-404 - - 404 Unemployment Payable 1,341-3,603-4,944 - - 4,944 Third-Party Payor Settlements 794 1,191 - - 1,985 - - 1,985 Current Bond Payable 4,686 1,024-796 6,506 - - 6,506 Malpractice Insurance Reserve 768 329 - - 1,098 - - 1,098 Other 830 (1,091) 490 507 736 254-990 TOTAL CURRENT LIABILITIES 39,128 11,465 7,700 1,721 60,014 3,034 (3,270) 59,778 LONG TERM LIABILITIES Malpractice Insurance Reserve - LT 2,934 1,416 - - 4,351 - - 4,351 Accrued Pension Liability 42,217 20,014 8,487-70,717 - - 70,717 Annuity Payable 210 - - - 210 - - 210 Unamortized Bond Cost (932) (333) - (221) (1,486) - - (1,486) Fixed Rate Loans 90,742 44,835-30,790 166,367 - - 166,367 Variable Rate Loans 40,000 - - - 40,000 - - 40,000 Other 1,315 563 - - 1,878 - - 1,878 TOTAL LONG-TERM LIABILITIES 176,485 66,496 8,487 30,569 282,036 - - 282,036 TOTAL LIABILITIES 215,613 77,961 16,187 32,289 342,050 3,034 (3,270) 341,814 EQUITY Beginning Balance 567,559 233,233 30,333 264 831,389 (4,248) - 827,141 *Other Company Support/Equity Changes (24,027) (4,266) 3,430 2,381 (22,482) 22,482 - - Transfers from FMC/VVMC - - - - - 19,372 (19,372) - Additional Pension Liability (58,620) (25,131) (5,702) - (89,453) - - (89,453) Current Year Earnings 53,718 16,495 (482) (1,286) 68,445 (27,710) - 40,735 TOTAL EQUITY 538,630 220,332 27,579 1,359 787,900 9,896 (19,372) 778,423 TOTAL LIABILITIES AND EQUITY 754,243 298,293 43,766 33,648 1,129,949 12,930 (22,642) 1,120,237 WORKING CAPITAL 65,833 38,597 4,349 5,790 114,568 7,581-122,149 2/13/2018
NORTHERN ARIZONA HEALTHCARE CONSOLIDATED STATEMENT OF INCOME & EXPENSES YEAR-TO-DATE DECEMBER 2017 FMC VVMC NAH NAH ADMIN NAHOSC Group Actual Budget % Var Actual Budget % Var PATIENT REVENUE INPATIENT: 343,057 136,540 0 0 0 479,597 457,495 5% 0 479,597 457,495 5% OUTPATIENT: 248,566 138,989 143 0 13,525 401,223 366,663 9% 0 401,223 366,663 9% PHYSICIAN REVENUE 0 0 0 0 0 0 0 N/A 34,686 34,686 36,783-6% TOTAL PATIENT REVENUE 591,623 275,529 143 0 13,525 880,820 824,158 7% 34,686 915,506 860,941 6% DEDUCTIONS FROM REVENUE CONTRACTUALS ADJUSTMENTS 343,143 196,580 2 0 9,540 549,265 506,124 9% 20,543 569,808 527,326 8% DENIALS 12,223 6,141 0 0 219 18,584 10,843 71% 0 18,584 10,843 71% BAD DEBT EXPENSE 14,563 3,855 4 0 289 18,710 20,483-9% 356 19,067 20,615-8% TOTAL DEDUCTIONS FROM REVENUE 369,930 206,576 6 0 10,048 586,559 537,450 9% 20,899 607,458 558,784 9% NET PATIENT REVENUE 221,693 68,953 138 0 3,477 294,261 286,708 3% 13,787 308,047 302,156 2% OTHER OPERATING REV. 5,951 1,343 0 314 526 8,134 8,878-8% 326 8,460 9,060-7% NAHPG CONSOLIDATED NET OPERATING REV. 227,644 70,296 138 314 4,003 302,394 295,586 2% 14,113 316,508 311,216 2% EXPENSES SALARIES & WAGES 65,396 24,798 272 14,432 1,268 106,167 103,425 3% 24,780 130,947 128,925 2% CONTRACT LABOR 3,066 1,383 0 114 0 4,563 1,653 176% 27 4,590 1,653 178% EMPLOYEE BENEFITS 17,564 5,290 27 3,454 317 26,651 28,083-5% 5,041 31,692 33,404-5% INSURANCE 1,842 620 2 94 16 2,574 1,674 54% 125 2,699 1,809 49% INTEREST 1,932 649 0 0 608 3,189 3,104 3% 0 3,189 3,104 3% DEPRECIATION/AMORTIZATION 8,225 4,176 111 3,608 473 16,593 16,581 0% 364 16,958 16,890 0% LEGAL & ACCTG. FEES 484 193 0 207 1 884 923-4% 1 885 947-6% PROFESSIONAL FEES 12,271 1,448 0 36 14 13,769 11,973 15% 2,997 16,767 14,701 14% MEDICAL SUPPLIES 37,746 7,832 5 35 2,019 47,637 44,911 6% 685 48,322 45,739 6% OTHER SUPPLIES 4,548 1,781 11 275 48 6,663 7,434-10% 195 6,858 7,757-12% UTILITIES 1,775 1,231 24 378 111 3,519 3,693-5% 131 3,650 3,833-5% PURCHASED SERVICES 15,582 5,379 70 13,142 230 34,403 36,076-5% 5,548 39,951 41,455-4% NAH ADMINSTRATION OH 25,087 8,159 68 (35,462) 182 (1,965) (2,014) -2% 1,965 0 0 N/A TOTAL 195,519 62,939 589 313 5,288 264,648 257,516 3% 41,861 306,509 300,216 2% NET OPERATING GAIN (LOSS) 32,125 7,357 (452) 1 (1,285) 37,746 38,070-1% (27,747) 9,999 11,000-9% NON-OPERATING INVEST/INTEREST 26,014 9,572 0 0 (1) 35,584 12,358 188% 2 35,586 12,358 188% GAIN/LOSS ON JV/OTHER (48) (8) (32) 0 0 (87) 60-244% 35 (52) 60-186% CONTRIBUTIONS (4,373) (425) 0 0 0 (4,798) 2 N/A 0 (4,798) 2 N/A NET INCOME (LOSS) 53,718 16,495 (483) 1 (1,286) 68,445 50,491 36% (27,710) 40,735 23,421 74%
Northern Arizona Healthcare Corporation Group Consolidated Statements of Cash Flows (In Thousands) For the Period Ending 12/31/17 Consolidated Group December December June 2017 2017 2017 Operating activities Increase in net assets $ 40,722 $ 45,951 $ 65,533 Adjustments to reconcile increase in net assets to net cash provided by operating activities: Increase in investments designated as trading (33,973) (33,973) (99,065) Unrecognized pension cost 38 38 (31,242) Provision for doubtful accounts 19,067 18,710 40,247 Depreciation and amortization 16,938 16,593 35,430 Loss on extinguishment of debt Net change in current assets and current liabilities, exclusive of cash and cash equivalents (36,842) (36,700) (30,114) Increase/(decrease) in other liabilities (205) (205) (311) Net cash provided by operating activities 5,745 10,414 (19,522) Investing activities Purchases of property and equipment (12,900) (12,461) (49,895) Decrease in deferred charges and other assets 1,627 1,627 19,823 Net cash used in investing activities (11,273) (10,834) (30,072) Financing activities Proceeds from long-term debt 40,000 Repayments of long-term debt (7,961) (6,475) (6,515) Net cash (used in) provided by financing activities (7,961) (6,475) 33,485 Increase in cash and cash equivalents (13,489) (6,895) (16,109) Cash and cash equivalents at beginning of year 68,992 56,192 72,301 Cash and cash equivalents at end of year $ 55,503 $ 49,297 $ 56,192 Supplemental cash flow information Cash paid for interest $ 4,410 $ - $ -
Northern Arizona Healthcare System (AZ) Series 2011 Utilization Statistics Fiscal Year 2017 and 2018 Quarter Ending Quarter Ending Quarter Ending Quarter Ending Quarter Ending 12/31/16 3/31/17 6/30/17 9/30/17 12/31/17 Staffed Acute Care Beds Flagstaff Facility 245 245 245 245 245 Verde Valley Facility 99 99 99 99 99 Total 344 344 344 344 344 Acute Care Patient Days Flagstaff Facility 12,877 13,964 13,808 13,869 14,223 Verde Valley Facility 3,991 4,387 4,173 4,315 4,372 Total 16,868 18,351 17,981 18,184 18,595 Acute Care Admissions Flagstaff Facility 2,955 3,040 3,082 3,118 3,054 Verde Valley Facility 1,045 1,085 1,065 1,102 1,038 Total 4,000 4,125 4,147 4,220 4,092 Acute Care Occupancy Rate (Staffed Beds) Flagstaff Facility 57.1% 62.0% 61.9% 61.5% 63.1% Verde Valley Facility 43.8% 48.2% 46.3% 47.4% 48.0% Group Total 53.3% 58.0% 57.4% 57.5% 58.8% Acute Care Avg Length of Hospital Stay Flagstaff Facility 4.4 4.6 4.5 4.4 4.7 Verde Valley Facility 3.8 4.0 3.9 3.9 4.2 Inpatient Surgeries Flagstaff Facility 1,391 1,265 1,385 1,376 1,462 Verde Valley Facility 217 243 225 215 215 Total 1,608 1,508 1,610 1,591 1,677 Outpatient Surgeries Flagstaff Facility 1,316 1,337 1,364 1,419 1,414 Verde Valley Facility 395 479 449 380 399 NAHOSC 1,199 1,156 1,297 1,102 1,368 Total 2,910 2,972 3,110 2,901 3,181 Emergency Room Visits Flagstaff Facility 11,505 11,740 12,449 12,408 11,896 Verde Valley Facility 5,951 6,459 6,401 6,457 6,521 Verde Valley Sedona Facility 1,464 1,665 1,785 1,713 1,676 Total 18,920 19,864 20,635 20,578 20,093 Rehabilitation/ Psychiatric Days Flagstaff Rehabilitation - - - - - Verde Valley Behavioral Health 422 432 406 506 472 Flagstaff Behavioral Health 1,503 1,455 1,455 1,460 1,374 Rehabilitation Average Length of Stay Flagstaff Rehabilitation - - - - - Verde Valley Behavioral Health 8.0 8.3 8.1 10.1 9.4 Flagstaff Behavioral Health 8.0 9.4 8.4 8.0 7.5