Doctors' Memorial Hospital, Inc.

CONSOLIDATED FINANCIAL STATEMENT HIGHLIGHTS

JUNE 1 T;JIRU MARCH 31, 2008

INCOME STATEMENT

Gross Patient Revenue

This Month Last Month Last Year
Month $ 3,986,836 $ 4,304,629 $ 3,768,221
Year-to-Date 38,868,806 34,881,971 37,038,442

Gross patient revenue decreased by $317,793 from February to March. Clinic revenues decreased by
11.4% with March showing 651 fewer clinic visits. Inpatient and Outpatient revenues decreased by
10.4% and 6.65% respectively due to decreased volume. Home Health and EMS increased 17.5% and
26.9% respectively.

Revenue Deductions
This Month Last Month Last Year
Month $ 2,084,184 $ 2,422,499 $ 1,749,765
Year-to-Date 20,949,480 18,865,296 17,923,732

Revenue Deductions for the month were favorably lower than normal at 52.3% of Gross Revenue as
compared to 56.3% in February and 53.9% for the year. (Note: the annual rate would have been 52.1%
without the Medicare RAC take-backs)

Net Operatine Revenue

This Month Last Month Last Year

Month $ 1,902,651 $ 1,882,130 $ 2,018,456
Y ear-to- Date 17,919,326 16,016,674 19,114,710

Though Gross Revenues decreased from February to March, Net Revenue actually increased a small amount
due to more favorable revenue deductions in March.

Total Operatine Expenses

This Month Last Month Last Year
Month $ 1,736,514 $ 1,660,964 $ 1,970,282
Year-to-Date 19,165,008 17,428,494 19,613,163

Operating Expenses increased by $75,550 (4.55%) from February. Material variances are as follows:

Salaries - Decreased $23,164 (2.4%) from February to March. As a percent of Net Revenue,
this improved from 51.3% to 49.8%. Total FTE's for March were 253.5, down from February's
268.8 and January's 288.0.

Benefits - Increased by $53,589 from February. This is because February's benefit expense was
down due to receipt of a stop-loss payment of$64,000.
 Contract Labor - Increased by $77,292 from February to March. This increase is due to the
new contract for ER Physician coverage.

Supplies - Supply expense increased by 14.8% ($28,552) from February to March. The most
significant increases occurred in Medical-Surgical Nursing ($5,011), Emergency Department
($5,279), Nuclear Medicine ($6,302), Family Practice ($5,339), and Pediatric and Family
Medicine ($8,705 total increase, with $4,148 of the increase in Drugs).

Repairs and Maintenance - Increased by 10.4% ($3,432) from February. March expenses
included repairs in OR of$II,538 and repairs in MRI of$6,806.

Insurance - March insurance expense was up from February's due to receipt in February of a
$69,577 refund from our Workers Compensation carrier for prior years.

Equipment and Buildin2 Lease - Equipment lease expense is negative $38,578 due to
reversal of current YTD lease expense in the amount of $84,987 for CPSI and CIT leases
reclassified as a Capital Lease, as identified in FY2007 audit. This negative lease expense
amount is offset by the correlating depreciation and interest expense of $134,024 resulting from
capitalizing this equipment. This had a net bottom line effect of increasing expenses by $49,037.
Note this is a non-cash transaction.

Other Expense - Increased $10,720 (91.6%) due to payments for the CAH study ($5,000),
medical necessity database ($2,700) and AHCA Laboratory license ($3,397).

Non-Operatin2 Revenue/Expenses

Depreciation and Interest expense for March were increased due to reversal of current year lease
expense for CPSI and CIT leases reclassified in FY2007 audit adjustments, as explained in the
Equipment and Building Lease item above.

Net & Operatin2 Income

Current Month Y ear- To-Date

Actual Budget Prior Yr Actual Budget Prior Yr
Operating Margin $158,644 $187,073 $138,713 $(444,203) $335,280 $419,686
Net Income (36,221) 117,413 60,048 (352,800) 156,180 243,548
 -------------
-------------
-------------
-------------
.00 29.94
73.28
2.25
42.65
2.48
32.39
11.47
28.80
2.31
2.83
41.49
5.86
2.75
23.17
51.33
12.17
8.32
14.71
.61
$ 5.91
4.48
20.33
30.26
60.18
D10,620,858.32
ATE
672,455.00
38,868,806.09
20,949,480.37
17,919,325.72
20,628,325.70
8,601,195.14
3,000,506.93
2,281,412.90
19,165,008.20 47.71
12.74
10.99
28.32
32.74
(.51
3.43
.62 5.72
VAR
VARIANCE
% mummn
% 340.00
BUOOE.'I'
BUOOE.'I'
140,968.59
4,660.00
2,405,693.23
257,081.95
5,399,245.51
3,062,629.39
2,063,815.89
1,054,814.03
352,286.33
$ 628,340.15
1.91
661,660.14
786,425.51
28,262.00
(6.10
(1.17
12.72
(9.86 .00 3,400.00
154,955.00
517,500.00
(9.30
(7.44
19.37
(2.68 (15,788.00)
ACTUAL
(129,865.831
117,669.00
101,370.00
36,874.49
VAR
VARIANCE
1,002,723.00
(89,893.191
(250,120.00)
117,413 .00
144,368.59
(1,869,124.14)
(63,269.98)
(71,164.66)
1779,483.12)
(153,634.531
(508,980.29)
(112,620.641
(400,408.14)
82,400.00
3,655,100.00
270,270.00
20,180,947.00
2,800,242.00
10,343,206.00
200,570.00
17,497,553.00
6,732,071.00
118,240.15
510,100.00
2,489,110.00
2,269,800.00
823,300.00
2,082,200.00
17,403.84
40,800.00
192,403.06
374,800.00
1,744,145.51
165,500.00
36,764,400.00
224,288.00
304,056.00
19,266,847.00
(7.00
807,900.00
16,736.48
(16,000.00)
(59,390.491
(14.000.00)
25,000.00
250,000.00
3,539.00
4,830.00
1,298,900.00
12,845,100.00
914,100.00
168,136.341
(650,000.00)
(432,500.00
1,457,800.00
3,962,200.00
2,059,651.00
(7.24
2,349,590.00
1.950,747.00
(160,000.00)
360,600.00
322,039.86
(140,000.00)
20,038.00
48,300.00
18,296,300.00
1,236,701.00
80,777.77
422,000.00
495,611.00
(30,232.00)
(13,701.041
11,347,521.28)
(28,428.701
(2,811.25)
(1,899,275.201
(1,460,141.92
335,280.00
156,180.00
42,200.00
(95,000.00)
43,297.65
2,104,406.09
54,733.00
98,454.22
27,085.39
80,790.00
22,151.
(2,339.001
35,595.58
(20,666.92)
2,332,025.70
35,091.56
57,754.35
(494,326.54)
(152,768.571
(130,671.15)
(190,730.07)
(242,661.761
1262,387.39)
7,935.08
285,774.11
181,886.97
5,087.39
7,081.
8,313.67
(24,268.25)
(328.18)
179,638.93)
111,612.90)
(277
3,952.21
24,635.50
680,658.80
58,718.31
2,920,868.00
2,055,420.00
732,768.00
320,665.00
236,190.00
226,980.00
82,330.00
187.D73.00
36,060.00
2,137,820.00
19,845,667.00
983,700.00
1,906,780.00
19,605.00
(3,451,927.37)
122,452.29
(65,000.001
60,997.23
(177,404.07)
1346,042.231
214,233.06 TO
370.58
2,084,184.07
3,986,835.50
1.902,651.
1,895,158.24
1,736,513.94146.13
(224,865.83)
18,720,805.08
10,945,824.80
1,267,069.93
(175,788.00)
158,644.30
,652.321
(36,221.53)
2,983,436.54
142,815.65
(160,
.(646,047.791
(444,203.121
386,908.44
785,748.99
801,479.36
896,019.14 M
(352,800.291
(310,047.711
135,268.00
151,954.66
01
95
(73,390.49)
40,372.77
25,000.00
(115.59
)(136.70
(424.21
(104.82
191.41
(88.08
(232.48
(130.84
(14.33
1,168,228.85
2,057,931.75(325.89
666
(14.61
(18.27
(15.200.119.72
(12.33
(80.79
)(14.76
(133,136.34)
00
237,989.04
312,729.92
205,601.78
520,390.00
944,004.69
209,104.61
221,892.61
567,203.06
118,002.98
(38,577.77)
(18,339.00)
82,073.42
36,388.18
22,416.25
58,203.84
(7,493.19)
1.291.
(109.09
5,000.00 NTH
.00
(27.76
43
(10.07
(19.85
(13.09
(11.36
(92.54
689,470.35
65,593.52 (14.79
92)
116.80
nmnmm
00 mmmmn YEAOOCTORS'
R MEMORIAL HOSPITAL, INC.

THE 10 MONTHS
CONSOLIDATED
Salaries
Medicare
FOR
Inpatient INCOMEENDING 03/31/08
STATEMENT

SIN G L E

12
 Doctors' Memorial Hospital
Patient Activity Trends

Admissions Annual Totals

300 3,000

250
2,500

200
2,000
150

100 1,500

50
1,000

o
500
#' ~~'t-.J>",JlrP-<!'''<I'-#,,<{j>.$.!~"':I'
~~~rP~"<I'~~,<{j>.$«2~"':f~~'t-.J>",~rP~o~<I'~~,<J>.$,.<t~
.•.
~ ~ ~
• FY 2006 • FY 2007 • FY 2008 Annualized

Annual Totals
Patient Days
9,000
1000
900 8,000

800 7,000
700
6,000
600
500 5,000
400
4,000
300
3,000
200
100 2,000
o
1,000

~
#' ~~'t-.J>",~rP
~<I'~~~J>.$.!~"':I'
~
~ ,g#,# ~~
~~.J>",~rP~<5'<I'~~,<J>
~
~<I'~~~J>.$
't-.J>",e~cF .!~.•.
• FY 2006 • FY 2007 • FY 2008 Annualized

Annual Totals
Emergency Room Visits
1800 18,000

1600 16,000
1400
14,000
1200
12,000
1000

800 10,000

600 8,000

400
6,000
200
4,000
o
2,000
#' ~V.<oJlrP-<!'''<I'-#,,<if>.$~"':I'~~.J>",JlcF
~"<I'-#',<if>
.$~¥ ~~'t-~rP~"<I''P'''~if>
.$~'"
~ ~ ~
• FY 2006 • FY 2007 • FY 2008 Annualized

Annual Totals
Outpatient Visits
30,000
2500

25,000
2000

20,000
1500

1000 15,000

500 10,000

o 5,000

~
#' ~~'t-.J>",~rP~<5'<I'~",\if>.$~"':I'
~
~\.~cF-<!'''<I''P''',<if>.$'t-~'''¥~~'t-.J>",~rP~0"<l'~"''''~if>
~
.$~'"
• FY 2006 • FY 2007 • FY 2008 Annualized

28
 Doctors' Memorial Hospital
Patient Activity Trends

Clinic Visits Annual Totals

60,000
5000

4000 50,000

3000 40,000

2000 30,000

1000
20,000

o
10,000

#' "'\.Jb,,<§IcP~··~/\"',<J>~~~~ "$\Jb,,<§IcP~"~\"',<J>~,.q~'V

~,.Jb"qflcP~ov)~"J>~~~'
~ # ~
• FY 2006 • FY 2007 • FY 2008 Annualized

Surgical Procedures Annual Totals

1,400
160

140 1,200

120
1,000
100

80 800

60
600
40

20 400

o 200

~
#' )~,.cJ>qflcP~~~)",•."J>~~~"'~
~
,,~~~~~'V
)~,..§>qflcP~~~.•••.
~
)~,.cJ>qflcP~~~)",,,,,<J>~~~""

• FY 2006 • FY 2007 • FY 2008 Annualized

Annual Totals
Endoscopic Procedures 900

100 800

90
700
80
600
70

60 500

50
400
40
300
30

20 200

10
100

• FY 2006 • FY 2007 • FY 2008 Annualized

Annual Totals
Radiology Procedures
30,000
2500

25,000
2000

20,000
1500

1000 15,000

500 10,000

5,000

• FY 2006 • FY 2007 • FY 2008 Annualized

 Doctors' Memorial Hospital
Patient Activity Trends

Annual Totals
Laboratory Procedures
14000 140,000

12000
120,000
1()()()()

100,000
8000

6000 80,000

4000
60,000
2000

o 40,000

$'t-~~ ~~~.§IcF~o"V'#,,,~$'t-<t~~
"~~'t-~.§IcF~o"~I\"<'';;> ~~~.§IcP~o~.f''§'<',,~$-rt~
.•. 20,000
~ ~ ~
• FY 2006 • FY 2007 • FY 2008 Annualized

30
 Doctors' Memorial Hospital
Trending Graphs

Annual Totals
Gross Revenue 50,000,000
5,000,000
4,500,000 .EMS
4,000,000 45,000,000
3,500,000 • Clinics
3,000,000 40,000,000
2,500,000 • Home
2,000,000 Health 35,000,000
1,500,000 • Out-
1,000,000 patient
30,000,000
500,000 .In-
o Patient
25,000,000
Jun-06 Sep-06 Dec-06 Mar-Q7 Jun-07 Sep-07 Dec-07 Mar-08
• FY 2007
• FY2008 Annualized

Revenue Deductions Annual Totals

30,000,000
3,000,000
25,000,000
~,500,OOO
• Bad Debt 20,000,000
2,000,000
• Charity 15,000,000
1,500,000
• Other
1,000,000 10,000,000
• Blue Cross
500,000 • Medicaid 5,000,000
o •• Medicare

• FY2007
• FY2008 Annualized

Gross vs Net Patient Revenue

5,000,000
4,500,000
4,000,000 --Gross Patient
3,500,000 Revenue
3,000,000
2,500,000
-Net Oper Revenue
2,000,000
1,500,000
1,000,000
 Doctors' Memorial Hospital
Trending Graphs

Annual Totals
Contractual Adjustments - % of Gross Revenue 45.0% 5.0% • FY 2007 • FY2008
0.0%
40.0%
30.0%
20.0%
10.0%
35.0%
25.0%
15.0%
50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

Jun-06 Sep-06 Dee-06 Mar-07 Jun-07 Sep-07 Dee-07 Mar-08

Uncompensated Care % of Gross Revenue Annual Totals

25.0% 18.0%

16.0%

20.0% 14.0%

12.0%
15.0% 10.0%
• Bad Debt
• Bad Debt 8.0%
10.0%
• Charity 6.0% • Charity
4.0%
5.0%
2.0%

0.0%
0.0%
FY 2007 FY 2008
Jun-06 Sep-06 Dee-06 Mar-07 Jun-07 Sep-07 Dee-07 Mar-08

32
 Doctors' Memorial Hospital
Trending Graphs

Annual Totals
Net Revenue & Operating Expenses
2,500,000 30,000,000

25,000,000

20,000,000
2,000,000
15,000,000

10,000,000
1,500,000 5,000,000

--NET REVENUE
--TOTAL OPEREXP. FY2007 FY2008 YTD FY2008
1,000,000
Annualized
Jun-06 Sep-06 Dee-06 Mar-07 Jun-07 Sep-07 Dee-07 Mar-08
• NET REVENUE • TOTAL OPER EXP.

Annual Totals
Wages & Contract Labor Cost 16,000,000

1,400,000 .Iabor
14,000,000

1,200,000 12,000,000
.,000,000 10,000,000
• Contract
800,000 8,000,000
Labor
600,000 • Salaries 6,000,000
400,000
4,000,000
200,000
2,000,000
o
Jun-06 Oet-06 Feb-07 Jun-07 Oct-07 Feb-08
FY 2007 FY 2008 YTD

Wages & Contract Labor Cost - % of Net Revenue % of Net Rev

80.0%
70.0% 161%
70.0%
50.0% 161%1
60.0% 40.0%
10.0%
20.0%
30.0%
0.0%
60.0%

50.0%
40.0%
30.0%
20.0%
• ').0%

J.O%

Jun-06 Sep-06 Dee-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-OB FY 2007 FY 2008
33
 Doctors' Memorial Hospital, Inc.
Uncompensated Care

Charity Care 4,000,00fnnual Totals

500,000
450,000 3,800,000
400,000
350,000 3,600,000
300,000
250,000
200,000 3,400,000
150,000
100,000 3,200,000
50,000

3,000,000
• FY2006
• FY2007
• FY2008 Annualized

Bad Debt 4,000,00fnnual Totals

600,000
500,000 3,000,000
400,000
300,000
200,000 2,000,000
100,000
o
-100,000 1,000,000
-200,000
-300,000
• FY2006
~'?
:\: • FY2007
'),§' • FY2008 Annualized

Total Uncompensated Care 8,000,00fnnual Totals

800,000 7,000,000
700,000
600,000 6,000,000
500,000
5,000,000
400,000
300,000 4,000,000
200,000
100,000 3,000,000
o
2,000,000
• FY2006
• FY2007
• FY2008 Annualized

35