1

October 2010 2

Table of Contents

Executive Summary 3 - 5

Financial and Operational Study 6 - 59

• Total Profit Margin 6 - 14• Total Operating Profit Margin 15 - 23• Total Labor Cost as a Percentage of Total Operating Revenues 24 - 32• Full-Time Equivalent (FTE) Staff per Adjusted Occupied Bed (AOB) 33 - 41• Days Net Patient Revenue in Accounts Receivable (AR) 42 - 50• Average Age of Plant and Equipment 51 - 59

Introduction to Healthcare Management Partners 60 - 64

Clients Our Professionals Have Served 65 - 66

Firm Leadership 67 - 70

Contact Information 71

October 2010 3

Healthcare Management Partners (HMP) is a hospital and healthcare services management firm. For decades, all of its seniorexecutives have been building and operating thriving healthcare organizations, including CEO, COO and CFO assignmentsacross the spectrum of healthcare services providers. This knowledge base gives HMP a unique perspective on what tools arenecessary to handle the issues facing any healthcare provider organization, and is what prompted HMP to create HMPMetricsTM. Our executives understand the value of being able to measure hospital performance relative to comparablefacilities and against “1st Quartile” or “High Performing” competitors.

Utilizing the last six years of publicly available hospital Medicare cost report data, HMP has conducted an extensive studycomparing performance within six hospital peer groups. We can easily create custom peer groups and metrics. These groupsselected include the following:

1. All General Acute Care Hospitals Regardless of Ownership or Sponsorship2. All Investor Owned General Acute Care Hospitals3. All Not-For-Profit General Acute Care Hospitals, including Institutions Sponsored by Religious Organizations4. All State and Local Government Owned General Acute Care Hospitals5. Free Standing Children’s Hospitals6. All Non-Federal Major Teaching Hospitals

Using proprietary filters, data contained in the HMP Metrics database has been “scrubbed” to exclude partial period orstatistically aberrant data elements for individual hospitals or health systems. It also excludes Federal Government hospitals,specialty hospitals (e.g., long-term acute care) and general acute care hospitals for which 30% or more of its total licensedbeds are comprised of sub-acute beds. This data validation process produces highly accurate and defensible peer groupcomparisons for dozens of standard industry metrics.

This report measures several commonly used metrics to further stratify these hospital types into quartiles in order to illustratethe benchmarks for poor to exceptional performance for each of the metrics. With this information, one can quickly assess therelative financial well-being of any facility in any of these groups. HMP can easily create custom reports and mix or createnew peer groups and compare them to state, local or national benchmarks.

Executive Summary – Overview

October 2010 4

Quartile Rankings: Quartile rankings were assigned based on the mean values calculated for all not-for-profit general acute care hospitals within the peer groups.

As noted above, the first quartile contains the top 25% of the best performing hospitals in an applicable peer group, the second quartile contains those hospitals falling in the 26% to 50% range, the third quartile contains those hospitals falling in the 51% to 75% range, and finally the fourth quartile contains those hospitals falling below 76%.

Mean Value: The mean value is the average of all amounts within a defined quartile or population.

Median Value: The report also contains the median value by quartile or total population.

Count: Actual number of qualified hospitals included in the mean or median calculation.

Excluded Cost Reports: Represents those metrics values not considered normative (i.e., outlier values). For example, certain metric values that were greater than two standard deviations from the mean of a reported population would be excluded from the analysis and included in this category.

Executive Summary – Key Terms

Mean Median Count Mean Median Count Mean Median Count1st Quartile 11.42% 10.12% 433 10.16% 8.94% 503 13.47% 12.63% 5132nd Quartile 4.04% 4.03% 433 3.26% 3.24% 505 6.40% 6.35% 5163rd Quartile 0.15% 0.14% 436 (0.73%) (0.61%) 507 2.29% 2.36% 5184th Quartile (7.04%) (5.98%) 438 (8.21%) (7.33%) 510 (4.80%) (3.68%) 519

Total Population 2.11% 2.08% 1740 1.08% 1.33% 2025 4.31% 4.19% 2066Excluded Cost Reports 111 128 112

Total Cost Reports 1851 2153 2178

Total Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States Regardless of Bed Size

Quartile Rank2009 2008 2007

October 2010 5

Executive Summary – Hospital Performance Metrics

Source: Metrics are based on data extracted from Medicare cost reports filed each year with the Federal Government. Accuracy of the data contained in the Medicare cost reports is certified by hospital management when the report is filed. Any changes resulting from desk or field audits by Medicare and subsequently included in the Hospital Cost Report Information System (HCRIS) database have also been reflected in the calculations. Excludes partial-year Medicare cost reports, hospitals where 30% or more of total inpatient beds are non-acute, and hospitals where the computed metric is more than 2 standard deviations from the mean.

Total Profit MarginA measure of overall hospital profitability presented as a percentage. A negative percentage indicates an overall loss, while a positive percentage indicates profitability.

Total Operating Profit MarginA measure of operating profitability presented as a percentage. A negative percentage indicates overall loss, while a positive percentage indicates profitability.

Total Labor Cost as a Percentage of Total Operating Revenues

A measure of labor productivity. This metric divides labor costs by operating revenues. A higher percentage compared to its peers indicates that a hospital uses more labor to produce its revenue.

Full-Time Equivalent Staff (FTEs) per Adjusted Occupied Bed (AOB)

Measures the number of full-time equivalent (FTE) employees used for each occupied bed. Similar to the previous ratio, a higher percentage compared to its peers indicates that a hospital uses more labor to treat its patients.

Days Net Patient Revenue in Accounts Receivable (AR)

Measures the number of days it typically takes to collect accounts receivable. A higher percentage compared to its peers indicates that the hospital's revenue cycle is not as efficient as its peers.

Average Age of Plant and EquipmentMeasures the average age of the hospital including capital improvements and major equipment purchases. A higher age compared to its peers indicates that the hospital has deferred the replacement of its capital when compared to its peers, which can lead to further distress.

October 2010 6

Total Profit Margin - Summary

Mean Median Count Mean Median Count Mean Median Count25 Beds or Less 0.95% 1.06% 338 0.84% 1.14% 383 2.84% 3.15% 38826 to 100 Beds 2.15% 1.73% 324 1.29% 1.38% 382 3.95% 3.44% 389

101 to 200 Beds 2.10% 2.14% 381 0.95% 0.85% 453 3.94% 3.91% 455201 to 300 Beds 1.69% 1.60% 254 0.81% 1.19% 293 4.40% 4.60% 303301 to 400 Beds 3.44% 3.80% 181 1.01% 1.64% 203 5.62% 5.32% 214401 to 500 Beds 3.13% 3.07% 102 1.40% 1.83% 121 6.02% 5.89% 123Over 500 Beds 3.05% 3.57% 160 1.78% 3.17% 190 6.15% 6.05% 194

Total All Hospitals 2.11% 2.08% 1740 1.08% 1.33% 2025 4.31% 4.19% 2066Excluded Cost Reports 111 128 112

Total Cost Reports 1851 2153 2178

Mean Median Count Mean Median Count Mean Median Count25 Beds or Less 2.56% 2.68% 359 1.99% 1.81% 305 1.50% 1.99% 24926 to 100 Beds 3.98% 3.77% 381 3.68% 3.57% 408 2.12% 3.13% 455

101 to 200 Beds 3.17% 3.33% 467 2.89% 3.18% 470 2.42% 2.79% 471201 to 300 Beds 3.23% 3.80% 304 3.24% 3.43% 311 2.77% 3.09% 309301 to 400 Beds 5.19% 5.21% 218 4.51% 4.79% 219 4.33% 4.40% 216401 to 500 Beds 5.19% 5.07% 122 5.04% 4.96% 123 4.79% 4.66% 123Over 500 Beds 5.63% 5.43% 193 4.75% 5.02% 197 4.39% 4.80% 196

Total All Hospitals 3.79% 3.96% 2044 3.45% 3.64% 2033 2.83% 3.30% 2019Excluded Cost Reports 96 83 101

Total Cost Reports 2140 2116 2120

Total Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States Ranked by Number of Licensed Beds

Number of Licensed Beds2009 2008 2007

Number of Licensed Beds2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 7

Peer Group Comparison – Total Profit Margin

Mean Median Count Mean Median Count Mean Median Count1st Quartile 9.91% 8.39% 84 9.46% 8.32% 95 11.35% 10.59% 972nd Quartile 3.00% 2.98% 84 3.02% 2.93% 96 4.98% 4.85% 973rd Quartile (0.92%) (0.97%) 85 (1.04%) (1.03%) 96 1.14% 1.26% 974th Quartile (8.06%) (6.88%) 85 (7.99%) (6.83%) 96 (6.10%) (4.70%) 97

Total Population 0.95% 1.06% 338 0.84% 1.14% 383 2.84% 3.15% 388Excluded Cost Reports 23 24 20

Total Cost Reports 361 407 408

Mean Median Count Mean Median Count Mean Median Count1st Quartile 11.46% 10.82% 89 10.54% 9.66% 76 9.30% 8.54% 622nd Quartile 4.74% 4.84% 90 4.20% 4.48% 76 3.96% 4.17% 623rd Quartile 0.76% 0.93% 90 0.14% 0.08% 76 (0.02%) (0.15%) 624th Quartile (6.63%) (4.93%) 90 (6.81%) (5.94%) 77 (7.11%) (5.52%) 63

Total Population 2.56% 2.68% 359 1.99% 1.81% 305 1.50% 1.99% 249Excluded Cost Reports 17 15 20

Total Cost Reports 376 320 269

Total Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with 25 Licensed Beds or Less

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 8

Mean Median Count Mean Median Count Mean Median Count1st Quartile 12.86% 11.42% 81 12.23% 11.52% 95 14.59% 13.25% 972nd Quartile 3.96% 3.97% 81 3.42% 3.20% 95 6.28% 6.28% 973rd Quartile (0.58%) (0.58%) 81 (1.16%) (1.16%) 96 1.43% 1.67% 974th Quartile (7.64%) (6.65%) 81 (9.17%) (8.21%) 96 (6.40%) (5.37%) 98

Total Population 2.15% 1.73% 324 1.29% 1.38% 382 3.95% 3.44% 389Excluded Cost Reports 23 22 25

Total Cost Reports 347 404 414

Mean Median Count Mean Median Count Mean Median Count1st Quartile 13.77% 12.50% 95 13.22% 11.88% 102 11.27% 10.09% 1132nd Quartile 5.90% 5.72% 95 5.46% 5.25% 102 4.69% 4.63% 1143rd Quartile 2.07% 2.12% 95 1.76% 1.80% 102 0.80% 0.92% 1144th Quartile (5.72%) (4.40%) 96 (5.73%) (4.49%) 102 (8.20%) (6.85%) 114

Total Population 3.98% 3.77% 381 3.68% 3.57% 408 2.12% 3.13% 455Excluded Cost Reports 19 18 22

Total Cost Reports 400 426 477

Total Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with Between 26 and 100 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Peer Group Comparison – Total Profit Margin

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 9

Mean Median Count Mean Median Count Mean Median Count1st Quartile 11.37% 10.13% 95 9.83% 7.82% 113 13.09% 12.39% 1132nd Quartile 3.82% 3.84% 95 2.89% 2.87% 113 5.88% 5.96% 1143rd Quartile 0.16% 0.17% 95 (0.76%) (0.71%) 113 2.10% 2.22% 1144th Quartile (6.86%) (5.38%) 96 (8.08%) (7.33%) 114 (5.21%) (3.49%) 114

Total Population 2.10% 2.14% 381 0.95% 0.85% 453 3.94% 3.91% 455Excluded Cost Reports 22 26 29

Total Cost Reports 403 479 484

Mean Median Count Mean Median Count Mean Median Count1st Quartile 11.81% 10.89% 116 10.92% 9.93% 117 10.42% 9.21% 1172nd Quartile 4.93% 4.66% 117 5.10% 5.10% 117 4.50% 4.41% 1183rd Quartile 1.81% 1.83% 117 1.54% 1.69% 118 1.17% 1.23% 1184th Quartile (5.78%) (4.16%) 117 (5.91%) (4.82%) 118 (6.34%) (4.82%) 118

Total Population 3.17% 3.33% 467 2.89% 3.18% 470 2.42% 2.79% 471Excluded Cost Reports 18 20 22

Total Cost Reports 485 490 493

Total Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with Between 101 and 200 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Peer Group Comparison – Total Profit Margin

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 10

Mean Median Count Mean Median Count Mean Median Count1st Quartile 10.26% 9.57% 63 9.31% 8.13% 73 13.37% 13.04% 752nd Quartile 3.46% 3.01% 63 2.95% 3.03% 73 6.53% 6.42% 763rd Quartile (0.16%) (0.23%) 64 (0.95%) (0.81%) 73 2.48% 2.72% 764th Quartile (6.64%) (5.27%) 64 (7.94%) (6.65%) 74 (4.68%) (3.23%) 76

Total Population 1.69% 1.60% 254 0.81% 1.19% 293 4.40% 4.60% 303Excluded Cost Reports 20 22 15

Total Cost Reports 274 315 318

Mean Median Count Mean Median Count Mean Median Count1st Quartile 11.43% 10.09% 76 10.77% 9.69% 77 10.34% 9.19% 772nd Quartile 5.57% 5.61% 76 5.03% 5.12% 78 4.84% 4.76% 773rd Quartile 1.75% 1.66% 76 1.67% 1.84% 78 1.32% 1.45% 774th Quartile (5.85%) (4.86%) 76 (4.41%) (3.43%) 78 (5.32%) (4.22%) 78

Total Population 3.23% 3.80% 304 3.24% 3.43% 311 2.77% 3.09% 309Excluded Cost Reports 21 15 16

Total Cost Reports 325 326 325

Total Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with Between 201 and 300 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Peer Group Comparison – Total Profit Margin

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 11

Mean Median Count Mean Median Count Mean Median Count1st Quartile 12.19% 11.24% 45 9.41% 8.65% 50 14.35% 13.60% 532nd Quartile 5.50% 5.77% 45 3.43% 3.55% 51 7.50% 7.39% 533rd Quartile 1.69% 1.71% 45 (0.58%) (0.34%) 51 3.42% 3.34% 544th Quartile (5.43%) (4.48%) 46 (8.04%) (7.47%) 51 (2.57%) (1.54%) 54

Total Population 3.44% 3.80% 181 1.01% 1.64% 203 5.62% 5.32% 214Excluded Cost Reports 12 20 13

Total Cost Reports 193 223 227

Mean Median Count Mean Median Count Mean Median Count1st Quartile 12.74% 11.83% 54 12.03% 11.20% 54 11.36% 10.59% 542nd Quartile 6.76% 6.37% 54 6.33% 6.14% 55 5.41% 5.33% 543rd Quartile 3.74% 3.87% 55 3.06% 2.98% 55 2.84% 2.86% 544th Quartile (2.30%) (0.90%) 55 (3.24%) (2.17%) 55 (2.28%) (0.92%) 54

Total Population 5.19% 5.21% 218 4.51% 4.79% 219 4.33% 4.40% 216Excluded Cost Reports 9 9 13

Total Cost Reports 227 228 229

Total Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with Between 301 and 400 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Peer Group Comparison – Total Profit Margin

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 12

Mean Median Count Mean Median Count Mean Median Count1st Quartile 12.82% 11.64% 25 9.57% 8.07% 30 15.28% 14.22% 302nd Quartile 5.35% 5.48% 25 3.11% 3.07% 30 7.88% 7.69% 313rd Quartile 1.25% 1.26% 26 0.18% 0.25% 30 3.62% 3.29% 314th Quartile (6.44%) (5.17%) 26 (7.00%) (6.01%) 31 (2.40%) (1.06%) 31

Total Population 3.13% 3.07% 102 1.40% 1.83% 121 6.02% 5.89% 123Excluded Cost Reports 6 6 5

Total Cost Reports 108 127 128

Mean Median Count Mean Median Count Mean Median Count1st Quartile 13.07% 11.71% 30 13.55% 12.29% 30 12.17% 11.43% 302nd Quartile 6.78% 6.70% 30 7.02% 6.72% 31 7.11% 6.85% 313rd Quartile 3.78% 3.94% 31 3.56% 3.62% 31 2.84% 2.82% 314th Quartile (2.56%) (0.88%) 31 (3.71%) (1.36%) 31 (2.74%) (1.04%) 31

Total Population 5.19% 5.07% 122 5.04% 4.96% 123 4.79% 4.66% 123Excluded Cost Reports 6 4 5

Total Cost Reports 128 127 128

Total Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with Between 401 and 500 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Peer Group Comparison – Total Profit Margin

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 13

Mean Median Count Mean Median Count Mean Median Count1st Quartile 11.88% 11.00% 40 10.67% 9.56% 47 14.39% 13.20% 482nd Quartile 5.41% 5.36% 40 4.74% 4.90% 47 8.36% 8.63% 483rd Quartile 1.89% 2.14% 40 0.40% 0.15% 48 4.28% 4.20% 494th Quartile (6.99%) (5.50%) 40 (8.44%) (7.49%) 48 (2.22%) 0.06% 49

Total Population 3.05% 3.57% 160 1.78% 3.17% 190 6.15% 6.05% 194Excluded Cost Reports 5 8 5

Total Cost Reports 165 198 199

Mean Median Count Mean Median Count Mean Median Count1st Quartile 12.86% 12.09% 48 11.62% 11.12% 49 11.34% 10.37% 492nd Quartile 7.09% 7.15% 48 6.73% 6.70% 49 6.44% 6.32% 493rd Quartile 3.98% 3.89% 48 3.51% 3.56% 49 3.25% 3.09% 494th Quartile (1.27%) 0.79% 49 (2.69%) (0.19%) 50 (3.47%) (0.61%) 49

Total Population 5.63% 5.43% 193 4.75% 5.02% 197 4.39% 4.80% 196Excluded Cost Reports 6 2 3

Total Cost Reports 199 199 199

Total Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with Over 500 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Peer Group Comparison – Total Profit Margin

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 14

Peer Group Comparison – Total Profit Margin

Mean Median Count Mean Median Count Mean Median Count1st Quartile 11.42% 10.12% 433 10.16% 8.94% 503 13.47% 12.63% 5132nd Quartile 4.04% 4.03% 433 3.26% 3.24% 505 6.40% 6.35% 5163rd Quartile 0.15% 0.14% 436 (0.73%) (0.61%) 507 2.29% 2.36% 5184th Quartile (7.04%) (5.98%) 438 (8.21%) (7.33%) 510 (4.80%) (3.68%) 519

Total Population 2.11% 2.08% 1740 1.08% 1.33% 2025 4.31% 4.19% 2066Excluded Cost Reports 111 128 112

Total Cost Reports 1851 2153 2178

Mean Median Count Mean Median Count Mean Median Count1st Quartile 12.33% 11.46% 508 11.65% 10.83% 505 10.76% 9.91% 5022nd Quartile 5.68% 5.62% 510 5.43% 5.41% 508 4.97% 4.95% 5053rd Quartile 2.19% 2.23% 512 1.87% 2.00% 509 1.45% 1.65% 5054th Quartile (4.93%) (3.74%) 514 (5.04%) (4.07%) 511 (5.77%) (4.63%) 507

Total Population 3.79% 3.96% 2044 3.45% 3.64% 2033 2.83% 3.30% 2019Excluded Cost Reports 96 83 101

Total Cost Reports 2140 2116 2120

Total Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States Regardless of Bed Size

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 15

Total Operating Profit Margin - Summary

Mean Median Count Mean Median Count Mean Median Count25 Beds or Less (2.20%) (1.87%) 328 (1.97%) (1.26%) 368 (1.68%) (0.89%) 37926 to 100 Beds (0.84%) (1.26%) 324 (1.51%) (1.16%) 374 (0.70%) (0.28%) 385

101 to 200 Beds 0.04% (0.24%) 384 (1.29%) (1.28%) 454 (0.89%) (0.41%) 456201 to 300 Beds (0.92%) (0.65%) 252 (1.18%) (1.25%) 291 (0.79%) (0.69%) 299301 to 400 Beds 1.09% 0.89% 181 (0.55%) (0.23%) 208 0.02% (0.39%) 212401 to 500 Beds 0.27% 0.05% 101 (1.14%) (0.93%) 121 (0.90%) (0.24%) 123Over 500 Beds 0.32% 0.75% 160 (0.62%) (0.03%) 190 0.24% 0.20% 188

Total All Hospitals (0.54%) (0.36%) 1730 (1.29%) (1.04%) 2006 (0.79%) (0.47%) 2042Excluded Cost Reports 121 147 136

Total Cost Reports 1851 2153 2178

Mean Median Count Mean Median Count Mean Median Count25 Beds or Less (2.57%) (1.58%) 351 (2.42%) (2.01%) 297 (2.69%) (2.64%) 23826 to 100 Beds (0.28%) (0.01%) 376 (0.30%) (0.05%) 403 (2.04%) (0.64%) 451

101 to 200 Beds (1.17%) (0.86%) 463 (0.54%) (0.44%) 464 (1.59%) (0.82%) 470201 to 300 Beds (1.13%) (1.14%) 301 (1.17%) (1.07%) 307 (1.57%) (1.33%) 305301 to 400 Beds (0.15%) 0.14% 215 0.07% 0.52% 217 (0.17%) (0.18%) 218401 to 500 Beds (0.89%) 0.31% 121 (0.14%) 1.11% 119 (0.12%) 0.53% 122Over 500 Beds (0.72%) 0.38% 189 (0.36%) 0.33% 189 (0.39%) 0.08% 187

Total All Hospitals (1.07%) (0.65%) 2016 (0.76%) (0.37%) 1996 (1.46%) (0.76%) 1991Excluded Cost Reports 124 120 129

Total Cost Reports 2140 2116 2120

Number of Licensed Beds2006 2005 2004

Total Operating Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States Ranked by Number of Licensed Beds

Number of Licensed Beds2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 16

Peer Group Comparison – Total Operating Profit Margin

Mean Median Count Mean Median Count Mean Median Count1st Quartile 8.56% 6.70% 82 8.15% 6.36% 92 8.86% 7.59% 942nd Quartile 0.77% 0.73% 82 0.64% 0.51% 92 0.99% 0.75% 953rd Quartile (4.11%) (3.89%) 82 (3.88%) (3.87%) 92 (3.30%) (3.48%) 954th Quartile (14.02%) (13.43%) 82 (12.81%) (11.59%) 92 (13.14%) (12.32%) 95

Total Population (2.20%) (1.87%) 328 (1.97%) (1.26%) 368 (1.68%) (0.89%) 379Excluded Cost Reports 33 39 29

Total Cost Reports 361 407 408

Mean Median Count Mean Median Count Mean Median Count1st Quartile 7.83% 6.50% 87 7.87% 6.94% 74 7.73% 7.08% 592nd Quartile 0.59% 0.55% 88 0.50% 0.47% 74 0.28% 0.72% 593rd Quartile (3.96%) (3.96%) 88 (4.42%) (4.13%) 74 (4.89%) (4.72%) 604th Quartile (14.61%) (13.53%) 88 (13.46%) (12.05%) 75 (13.65%) (12.72%) 60

Total Population (2.57%) (1.58%) 351 (2.42%) (2.01%) 297 (2.69%) (2.64%) 238Excluded Cost Reports 25 23 31

Total Cost Reports 376 320 269

Quartile Rank2006 2005 2004

Total Operating Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with 25 Licensed Beds or Less

Quartile Rank2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 17

Peer Group Comparison – Total Operating Profit Margin

Mean Median Count Mean Median Count Mean Median Count1st Quartile 10.96% 9.72% 81 10.34% 9.61% 93 10.58% 10.13% 962nd Quartile 1.51% 1.48% 81 1.53% 1.12% 93 2.35% 1.88% 963rd Quartile (3.58%) (3.59%) 81 (4.00%) (4.09%) 94 (2.96%) (2.59%) 964th Quartile (12.27%) (11.10%) 81 (13.74%) (13.13%) 94 (12.65%) (11.12%) 97

Total Population (0.84%) (1.26%) 324 (1.51%) (1.16%) 374 (0.70%) (0.28%) 385Excluded Cost Reports 23 30 29

Total Cost Reports 347 404 414

Mean Median Count Mean Median Count Mean Median Count1st Quartile 10.75% 9.52% 94 10.63% 9.03% 100 8.65% 7.61% 1122nd Quartile 2.04% 1.88% 94 1.94% 1.74% 101 1.35% 1.35% 1133rd Quartile (2.82%) (2.89%) 94 (2.03%) (1.89%) 101 (3.51%) (3.36%) 1134th Quartile (11.11%) (9.25%) 94 (11.63%) (10.50%) 101 (14.56%) (14.53%) 113

Total Population (0.28%) (0.01%) 376 (0.30%) (0.05%) 403 (2.04%) (0.64%) 451Excluded Cost Reports 24 23 26

Total Cost Reports 400 426 477

Total Operating Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with Between 26 and 100 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 18

Peer Group Comparison – Total Operating Profit Margin

Mean Median Count Mean Median Count Mean Median Count1st Quartile 9.94% 8.66% 96 8.72% 8.07% 113 9.04% 8.00% 1142nd Quartile 1.87% 2.06% 96 0.67% 0.58% 113 1.86% 1.88% 1143rd Quartile (2.15%) (2.20%) 96 (2.99%) (2.84%) 114 (2.56%) (2.48%) 1144th Quartile (9.51%) (7.67%) 96 (11.45%) (9.65%) 114 (11.91%) (10.42%) 114

Total Population 0.04% (0.24%) 384 (1.29%) (1.28%) 454 (0.89%) (0.41%) 456Excluded Cost Reports 19 25 28

Total Cost Reports 403 479 484

Mean Median Count Mean Median Count Mean Median Count1st Quartile 8.67% 7.04% 115 9.12% 7.83% 116 7.98% 6.30% 1172nd Quartile 1.04% 1.12% 116 1.82% 1.72% 116 0.79% 0.61% 1173rd Quartile (2.74%) (2.79%) 116 (2.32%) (1.91%) 116 (3.33%) (3.03%) 1184th Quartile (11.58%) (10.02%) 116 (10.78%) (9.05%) 116 (11.70%) (10.32%) 118

Total Population (1.17%) (0.86%) 463 (0.54%) (0.44%) 464 (1.59%) (0.82%) 470Excluded Cost Reports 22 26 23

Total Cost Reports 485 490 493

Total Operating Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with Between 101 and 200 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 19

Peer Group Comparison – Total Operating Profit Margin

Mean Median Count Mean Median Count Mean Median Count1st Quartile 8.32% 6.83% 63 8.43% 7.42% 72 8.94% 7.16% 742nd Quartile 1.34% 1.11% 63 0.81% 0.43% 73 1.11% 1.10% 753rd Quartile (2.49%) (2.44%) 63 (2.89%) (2.68%) 73 (2.84%) (2.87%) 754th Quartile (10.85%) (9.55%) 63 (10.96%) (9.63%) 73 (10.24%) (9.19%) 75

Total Population (0.92%) (0.65%) 252 (1.18%) (1.25%) 291 (0.79%) (0.69%) 299Excluded Cost Reports 22 24 19

Total Cost Reports 274 315 318

Mean Median Count Mean Median Count Mean Median Count1st Quartile 8.61% 7.00% 75 8.51% 6.58% 76 8.18% 6.07% 762nd Quartile 0.93% 0.93% 75 0.81% 0.61% 77 0.66% 0.61% 763rd Quartile (3.17%) (3.11%) 75 (3.23%) (3.22%) 77 (3.73%) (3.66%) 764th Quartile (10.77%) (9.63%) 76 (10.64%) (9.43%) 77 (11.28%) (10.45%) 77

Total Population (1.13%) (1.14%) 301 (1.17%) (1.07%) 307 (1.57%) (1.33%) 305Excluded Cost Reports 24 19 20

Total Cost Reports 325 326 325

Total Operating Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with Between 201 and 300 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 20

Peer Group Comparison – Total Operating Profit Margin

Mean Median Count Mean Median Count Mean Median Count1st Quartile 10.31% 8.98% 45 9.26% 8.40% 52 9.63% 9.02% 532nd Quartile 2.57% 2.72% 45 1.46% 1.27% 52 2.10% 2.31% 533rd Quartile (0.24%) (0.09%) 45 (2.21%) (2.40%) 52 (2.16%) (2.05%) 534th Quartile (8.09%) (5.03%) 46 (10.72%) (8.50%) 52 (9.50%) (9.19%) 53

Total Population 1.09% 0.89% 181 (0.55%) (0.23%) 208 0.02% (0.39%) 212Excluded Cost Reports 12 15 15

Total Cost Reports 193 223 227

Mean Median Count Mean Median Count Mean Median Count1st Quartile 9.49% 8.49% 53 9.23% 8.50% 54 8.58% 7.30% 542nd Quartile 2.25% 2.11% 54 2.44% 2.53% 54 1.56% 1.37% 543rd Quartile (1.91%) (1.73%) 54 (1.48%) (1.45%) 54 (1.74%) (1.75%) 554th Quartile (10.24%) (9.25%) 54 (9.72%) (7.70%) 55 (8.88%) (7.54%) 55

Total Population (0.15%) 0.14% 215 0.07% 0.52% 217 (0.17%) (0.18%) 218Excluded Cost Reports 12 11 11

Total Cost Reports 227 228 229

Total Operating Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with Between 301 and 400 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 21

Peer Group Comparison – Total Operating Profit Margin

Mean Median Count Mean Median Count Mean Median Count1st Quartile 8.94% 7.61% 25 8.10% 7.40% 30 9.07% 6.96% 302nd Quartile 2.36% 2.39% 25 1.37% 1.70% 30 1.75% 1.76% 313rd Quartile (1.41%) (1.13%) 25 (2.66%) (2.57%) 30 (2.20%) (1.66%) 314th Quartile (8.47%) (6.72%) 26 (11.02%) (10.45%) 31 (11.92%) (10.88%) 31

Total Population 0.27% 0.05% 101 (1.14%) (0.93%) 121 (0.90%) (0.24%) 123Excluded Cost Reports 7 6 5

Total Cost Reports 108 127 128

Mean Median Count Mean Median Count Mean Median Count1st Quartile 7.90% 6.04% 30 9.41% 8.99% 29 9.44% 7.31% 302nd Quartile 1.85% 1.79% 30 2.73% 2.78% 30 2.19% 2.21% 303rd Quartile (2.25%) (2.42%) 30 (1.01%) (1.18%) 30 (1.31%) (1.44%) 314th Quartile (10.71%) (10.01%) 31 (11.36%) (10.88%) 30 (10.43%) (8.99%) 31

Total Population (0.89%) 0.31% 121 (0.14%) 1.11% 119 (0.12%) 0.53% 122Excluded Cost Reports 7 8 6

Total Cost Reports 128 127 128

Total Operating Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with Between 401 and 500 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 22

Peer Group Comparison – Total Operating Profit Margin

Mean Median Count Mean Median Count Mean Median Count1st Quartile 9.77% 9.78% 40 8.70% 8.47% 47 10.85% 9.77% 472nd Quartile 2.85% 2.68% 40 2.73% 2.98% 47 3.07% 2.94% 473rd Quartile (1.48%) (1.46%) 40 (2.38%) (2.26%) 48 (1.89%) (1.56%) 474th Quartile (9.87%) (8.13%) 40 (11.29%) (10.47%) 48 (11.08%) (9.42%) 47

Total Population 0.32% 0.75% 160 (0.62%) (0.03%) 190 0.24% 0.20% 188Excluded Cost Reports 5 8 11

Total Cost Reports 165 198 199

Mean Median Count Mean Median Count Mean Median Count1st Quartile 8.90% 7.82% 47 9.12% 8.37% 47 9.45% 8.16% 462nd Quartile 2.04% 1.80% 47 1.98% 1.75% 47 2.05% 1.75% 473rd Quartile (2.24%) (2.21%) 47 (1.56%) (1.39%) 47 (1.54%) (1.45%) 474th Quartile (11.34%) (8.06%) 48 (10.77%) (8.23%) 48 (11.33%) (9.19%) 47

Total Population (0.72%) 0.38% 189 (0.36%) 0.33% 189 (0.39%) 0.08% 187Excluded Cost Reports 10 10 12

Total Cost Reports 199 199 199

Total Operating Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States with Over 500 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 23

Peer Group Comparison – Total Operating Profit Margin

Mean Median Count Mean Median Count Mean Median Count1st Quartile 9.60% 8.43% 432 8.89% 8.10% 499 9.51% 8.49% 5082nd Quartile 1.71% 1.81% 432 1.16% 1.01% 500 1.81% 1.71% 5113rd Quartile (2.54%) (2.38%) 432 (3.17%) (2.99%) 503 (2.69%) (2.57%) 5114th Quartile (10.89%) (9.77%) 434 (11.94%) (10.73%) 504 (11.71%) (10.37%) 512

Total Population (0.54%) (0.36%) 1730 (1.29%) (1.04%) 2006 (0.79%) (0.47%) 2042Excluded Cost Reports 121 147 136

Total Cost Reports 1851 2153 2178

Mean Median Count Mean Median Count Mean Median Count1st Quartile 8.97% 7.66% 501 9.17% 7.90% 496 8.43% 7.08% 4942nd Quartile 1.40% 1.40% 504 1.63% 1.57% 499 1.12% 1.12% 4963rd Quartile (2.87%) (2.83%) 504 (2.47%) (2.27%) 499 (3.15%) (2.90%) 5004th Quartile (11.68%) (10.01%) 507 (11.25%) (10.11%) 502 (12.09%) (10.75%) 501

Total Population (1.07%) (0.65%) 2016 (0.76%) (0.37%) 1996 (1.46%) (0.76%) 1991Excluded Cost Reports 124 120 129

Total Cost Reports 2140 2116 2120

Total Operating Profit MarginAll Not-For-Profit General Acute Care Hospitals in the United States Regardless of Bed Size

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 24

Total Labor Cost as a Percentage of Total Operating Revenues - Summary

Mean Median Count Mean Median Count Mean Median Count25 Beds or Less 48.66% 48.99% 338 49.05% 49.65% 375 49.13% 49.12% 37526 to 100 Beds 49.99% 49.98% 329 50.77% 51.01% 379 50.83% 50.93% 397

101 to 200 Beds 50.02% 50.48% 390 51.08% 50.99% 460 51.14% 50.83% 465201 to 300 Beds 50.43% 49.91% 259 51.15% 50.58% 292 51.08% 50.68% 297301 to 400 Beds 49.93% 49.64% 181 50.61% 50.58% 203 51.22% 50.83% 214401 to 500 Beds 49.57% 48.23% 105 51.07% 49.94% 121 51.07% 50.77% 122Over 500 Beds 48.70% 47.91% 158 49.65% 49.56% 191 49.35% 48.60% 193

Total All Hospitals 49.66% 49.54% 1760 50.47% 50.48% 2021 50.54% 50.33% 2063Excluded Cost Reports 91 132 115

Total Cost Reports 1851 2153 2178

Mean Median Count Mean Median Count Mean Median Count25 Beds or Less 48.68% 48.35% 346 48.16% 48.16% 294 48.89% 48.67% 24426 to 100 Beds 51.06% 50.75% 383 51.53% 51.32% 407 52.72% 52.83% 449

101 to 200 Beds 51.42% 51.69% 470 50.76% 50.66% 469 51.74% 51.71% 472201 to 300 Beds 51.19% 50.90% 300 51.52% 51.60% 306 52.30% 51.95% 307301 to 400 Beds 50.81% 50.52% 214 50.55% 50.81% 215 51.25% 51.13% 216401 to 500 Beds 51.15% 50.68% 120 51.04% 50.47% 121 51.13% 50.84% 124Over 500 Beds 49.57% 49.36% 190 49.48% 48.69% 191 50.01% 49.17% 192

Total All Hospitals 50.59% 50.34% 2023 50.53% 50.45% 2003 51.44% 51.29% 2004Excluded Cost Reports 117 113 116

Total Cost Reports 2140 2116 2120

Number of Licensed Beds2006 2005 2004

Total Labor Cost as a Percentage of Total Operating RevenuesAll Not-For-Profit General Acute Care Hospitals in the United States Ranked by Number of Licensed Beds

Number of Licensed Beds2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 25

Peer Group Comparison – Total Labor Cost as a Percent of Total Op. Rev.

Mean Median Count Mean Median Count Mean Median Count1st Quartile 36.52% 37.15% 84 37.76% 38.09% 93 37.28% 37.58% 932nd Quartile 45.70% 45.77% 84 46.40% 46.52% 94 46.40% 47.00% 943rd Quartile 52.12% 52.31% 85 52.31% 52.46% 94 52.61% 53.08% 944th Quartile 60.12% 60.04% 85 59.59% 58.88% 94 60.10% 59.36% 94

Total Population 48.66% 48.99% 338 49.05% 49.65% 375 49.13% 49.12% 375Excluded Cost Reports 23 32 33

Total Cost Reports 361 407 408

Mean Median Count Mean Median Count Mean Median Count1st Quartile 37.37% 37.61% 86 36.86% 37.30% 73 37.87% 38.45% 612nd Quartile 45.28% 45.38% 86 44.28% 43.98% 73 44.99% 44.92% 613rd Quartile 51.70% 51.93% 87 51.55% 51.50% 74 52.00% 51.98% 614th Quartile 60.18% 59.10% 87 59.76% 59.35% 74 60.68% 59.79% 61

Total Population 48.68% 48.35% 346 48.16% 48.16% 294 48.89% 48.67% 244Excluded Cost Reports 30 26 25

Total Cost Reports 376 320 269

Quartile Rank2006 2005 2004

Total Labor Cost as a Percentage of Total Operating RevenuesAll Not-For-Profit General Acute Care Hospitals in the United States with 25 Licensed Beds or Less

Quartile Rank2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 26

Peer Group Comparison – Total Labor Cost as a Percent of Total Op. Rev.

Mean Median Count Mean Median Count Mean Median Count1st Quartile 39.70% 40.43% 82 40.76% 41.51% 94 40.84% 41.07% 992nd Quartile 47.25% 47.27% 82 48.29% 48.46% 95 48.47% 48.56% 993rd Quartile 52.91% 52.73% 82 53.22% 53.24% 95 53.04% 53.10% 994th Quartile 59.99% 58.78% 83 60.71% 60.20% 95 60.85% 60.27% 100

Total Population 49.99% 49.98% 329 50.77% 51.01% 379 50.83% 50.93% 397Excluded Cost Reports 18 25 17

Total Cost Reports 347 404 414

Mean Median Count Mean Median Count Mean Median Count1st Quartile 41.56% 42.86% 95 42.10% 43.22% 101 43.82% 44.66% 1122nd Quartile 48.48% 48.44% 96 49.20% 49.48% 102 50.26% 50.24% 1123rd Quartile 53.37% 53.21% 96 53.77% 53.69% 102 54.99% 54.81% 1124th Quartile 60.72% 60.56% 96 60.98% 61.00% 102 61.74% 61.51% 113

Total Population 51.06% 50.75% 383 51.53% 51.32% 407 52.72% 52.83% 449Excluded Cost Reports 17 19 28

Total Cost Reports 400 426 477

Total Labor Cost as a Percentage of Total Operating RevenuesAll Not-For-Profit General Acute Care Hospitals in the United States with Between 26 and 100 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 27

Peer Group Comparison – Total Labor Cost as a Percent of Total Op. Rev.

Mean Median Count Mean Median Count Mean Median Count1st Quartile 40.81% 41.58% 97 41.76% 42.28% 115 42.01% 42.68% 1162nd Quartile 47.62% 47.67% 97 48.59% 48.54% 115 48.46% 48.66% 1163rd Quartile 52.49% 52.51% 98 53.36% 53.37% 115 53.61% 53.88% 1164th Quartile 59.02% 58.04% 98 60.62% 59.96% 115 60.40% 60.00% 117

Total Population 50.02% 50.48% 390 51.08% 50.99% 460 51.14% 50.83% 465Excluded Cost Reports 13 19 19

Total Cost Reports 403 479 484

Mean Median Count Mean Median Count Mean Median Count1st Quartile 41.91% 42.79% 117 41.38% 42.60% 117 42.53% 43.50% 1182nd Quartile 48.91% 49.06% 117 48.29% 48.42% 117 49.35% 49.42% 1183rd Quartile 54.17% 54.20% 118 53.32% 53.34% 117 54.21% 54.06% 1184th Quartile 60.58% 60.04% 118 59.99% 59.99% 118 60.89% 60.33% 118

Total Population 51.42% 51.69% 470 50.76% 50.66% 469 51.74% 51.71% 472Excluded Cost Reports 15 21 21

Total Cost Reports 485 490 493

Total Labor Cost as a Percentage of Total Operating RevenuesAll Not-For-Profit General Acute Care Hospitals in the United States with Between 101 and 200 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 28

Peer Group Comparison – Total Labor Cost as a Percent of Total Op. Rev.

Mean Median Count Mean Median Count Mean Median Count1st Quartile 41.86% 42.82% 64 42.83% 43.45% 73 42.89% 43.64% 742nd Quartile 47.60% 47.46% 65 48.48% 48.38% 73 48.72% 48.67% 743rd Quartile 52.40% 52.45% 65 53.17% 53.38% 73 52.72% 52.93% 744th Quartile 59.74% 58.83% 65 60.12% 59.25% 73 59.87% 59.27% 75

Total Population 50.43% 49.91% 259 51.15% 50.58% 292 51.08% 50.68% 297Excluded Cost Reports 15 23 21

Total Cost Reports 274 315 318

Mean Median Count Mean Median Count Mean Median Count1st Quartile 42.50% 42.73% 75 42.82% 43.68% 76 43.46% 44.23% 762nd Quartile 48.87% 49.07% 75 49.29% 49.28% 76 49.75% 49.77% 773rd Quartile 53.25% 53.09% 75 53.54% 53.43% 77 54.47% 54.44% 774th Quartile 60.14% 60.03% 75 60.30% 59.39% 77 61.43% 60.77% 77

Total Population 51.19% 50.90% 300 51.52% 51.60% 306 52.30% 51.95% 307Excluded Cost Reports 25 20 18

Total Cost Reports 325 326 325

Total Labor Cost as a Percentage of Total Operating RevenuesAll Not-For-Profit General Acute Care Hospitals in the United States with Between 201 and 300 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 29

Peer Group Comparison – Total Labor Cost as a Percent of Total Op. Rev.

Mean Median Count Mean Median Count Mean Median Count1st Quartile 42.64% 43.54% 45 42.46% 43.12% 50 43.02% 44.02% 532nd Quartile 47.67% 48.00% 45 48.35% 48.38% 51 48.70% 48.66% 533rd Quartile 51.41% 51.37% 45 52.52% 52.41% 51 53.11% 53.04% 544th Quartile 57.82% 56.50% 46 58.97% 58.15% 51 59.85% 58.59% 54

Total Population 49.93% 49.64% 181 50.61% 50.58% 203 51.22% 50.83% 214Excluded Cost Reports 12 20 13

Total Cost Reports 193 223 227

Mean Median Count Mean Median Count Mean Median Count1st Quartile 43.14% 43.79% 53 42.44% 42.81% 53 43.78% 44.94% 542nd Quartile 48.13% 47.81% 53 48.05% 47.70% 54 49.01% 48.88% 543rd Quartile 52.75% 52.85% 54 52.89% 52.87% 54 53.44% 53.51% 544th Quartile 59.05% 58.35% 54 58.68% 57.88% 54 58.76% 57.87% 54

Total Population 50.81% 50.52% 214 50.55% 50.81% 215 51.25% 51.13% 216Excluded Cost Reports 13 13 13

Total Cost Reports 227 228 229

Total Labor Cost as a Percentage of Total Operating RevenuesAll Not-For-Profit General Acute Care Hospitals in the United States with Between 301 and 400 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 30

Peer Group Comparison – Total Labor Cost as a Percent of Total Op. Rev.

Mean Median Count Mean Median Count Mean Median Count1st Quartile 40.85% 42.09% 26 42.18% 43.32% 30 42.25% 43.11% 302nd Quartile 46.41% 46.56% 26 48.13% 48.05% 30 48.27% 48.41% 303rd Quartile 51.64% 51.76% 26 53.82% 54.03% 30 53.50% 53.83% 314th Quartile 59.01% 58.77% 27 59.85% 58.97% 31 59.90% 59.89% 31

Total Population 49.57% 48.23% 105 51.07% 49.94% 121 51.07% 50.77% 122Excluded Cost Reports 3 6 6

Total Cost Reports 108 127 128

Mean Median Count Mean Median Count Mean Median Count1st Quartile 43.37% 43.82% 30 43.21% 44.05% 30 43.08% 43.74% 312nd Quartile 48.35% 48.40% 30 48.25% 47.93% 30 48.48% 48.42% 313rd Quartile 53.13% 52.95% 30 52.64% 52.35% 30 53.64% 53.30% 314th Quartile 59.74% 59.23% 30 59.77% 59.53% 31 59.33% 58.91% 31

Total Population 51.15% 50.68% 120 51.04% 50.47% 121 51.13% 50.84% 124Excluded Cost Reports 8 6 4

Total Cost Reports 128 127 128

Total Labor Cost as a Percentage of Total Operating RevenuesAll Not-For-Profit General Acute Care Hospitals in the United States with Between 401 and 500 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 31

Peer Group Comparison – Total Labor Cost as a Percent of Total Op. Rev.

Mean Median Count Mean Median Count Mean Median Count1st Quartile 41.26% 42.04% 39 41.82% 42.64% 47 41.13% 42.07% 482nd Quartile 46.22% 46.43% 39 46.89% 47.07% 48 46.51% 46.31% 483rd Quartile 50.29% 49.92% 40 51.19% 50.78% 48 51.07% 50.93% 484th Quartile 56.77% 55.92% 40 58.54% 57.74% 48 58.49% 57.34% 49

Total Population 48.70% 47.91% 158 49.65% 49.56% 191 49.35% 48.60% 193Excluded Cost Reports 7 7 6

Total Cost Reports 165 198 199

Mean Median Count Mean Median Count Mean Median Count1st Quartile 41.49% 42.21% 47 41.54% 42.31% 47 42.22% 42.59% 482nd Quartile 47.29% 47.40% 47 46.86% 46.96% 48 47.33% 46.96% 483rd Quartile 51.13% 50.80% 48 50.80% 50.64% 48 51.49% 51.03% 484th Quartile 58.13% 56.63% 48 58.55% 57.27% 48 58.99% 58.07% 48

Total Population 49.57% 49.36% 190 49.48% 48.69% 191 50.01% 49.17% 192Excluded Cost Reports 9 8 7

Total Cost Reports 199 199 199

Total Labor Cost as a Percentage of Total Operating RevenuesAll Not-For-Profit General Acute Care Hospitals in the United States with Over 500 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 32

Peer Group Comparison – Total Labor Cost as a Percent of Total Op. Rev.

Mean Median Count Mean Median Count Mean Median Count1st Quartile 40.16% 40.90% 437 41.09% 41.81% 502 41.09% 41.76% 5132nd Quartile 46.99% 47.01% 438 47.90% 48.05% 506 47.96% 48.17% 5143rd Quartile 52.13% 52.14% 441 52.85% 52.78% 506 52.90% 53.07% 5164th Quartile 59.19% 58.40% 444 59.96% 59.25% 507 60.09% 59.42% 520

Total Population 49.66% 49.54% 1760 50.47% 50.48% 2021 50.54% 50.33% 2063Excluded Cost Reports 91 132 115

Total Cost Reports 1851 2153 2178

Mean Median Count Mean Median Count Mean Median Count1st Quartile 41.33% 42.27% 503 41.32% 42.29% 497 42.53% 43.46% 5002nd Quartile 47.93% 48.02% 504 47.88% 48.04% 500 48.80% 48.91% 5013rd Quartile 52.96% 52.98% 508 52.86% 52.85% 502 53.77% 53.81% 5014th Quartile 60.03% 59.51% 508 59.91% 59.43% 504 60.63% 60.10% 502

Total Population 50.59% 50.34% 2023 50.53% 50.45% 2003 51.44% 51.29% 2004Excluded Cost Reports 117 113 116

Total Cost Reports 2140 2116 2120

Total Labor Cost as a Percentage of Total Operating RevenuesAll Not-For-Profit General Acute Care Hospitals in the United States Regardless of Bed Size

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 33

Full-Time Equivalent (FTE) Staff Per Adjusted Occupied Bed (A0B) - Summary

Mean Median Count Mean Median Count Mean Median Count25 Beds or Less 4.76 4.67 329 4.74 4.58 373 4.79 4.65 37426 to 100 Beds 4.97 4.90 332 4.97 4.82 386 4.83 4.69 397

101 to 200 Beds 4.79 4.73 395 4.74 4.65 471 4.69 4.55 476201 to 300 Beds 5.05 4.88 271 5.00 4.82 312 4.94 4.80 314301 to 400 Beds 5.19 5.05 190 5.15 5.07 220 5.14 5.03 224401 to 500 Beds 5.30 5.05 106 5.24 5.10 126 5.21 5.04 127Over 500 Beds 5.58 5.55 155 5.55 5.44 189 5.50 5.44 191

Total All Hospitals 5.00 4.92 1778 4.97 4.86 2077 4.93 4.79 2103Excluded Cost Reports 73 76 75

Total Cost Reports 1851 2153 2178

Mean Median Count Mean Median Count Mean Median Count25 Beds or Less 4.80 4.79 340 4.77 4.72 285 4.69 4.66 23026 to 100 Beds 4.87 4.73 386 4.79 4.65 407 4.91 4.83 458

101 to 200 Beds 4.67 4.55 481 4.62 4.50 487 4.58 4.47 488201 to 300 Beds 4.92 4.79 321 4.88 4.72 319 4.88 4.75 321301 to 400 Beds 5.17 5.02 223 5.11 5.01 222 5.12 4.99 225401 to 500 Beds 5.23 5.04 126 5.18 4.95 127 5.11 4.90 127Over 500 Beds 5.56 5.51 192 5.50 5.44 192 5.46 5.44 191

Total All Hospitals 4.94 4.84 2069 4.88 4.77 2039 4.89 4.79 2040Excluded Cost Reports 71 77 80

Total Cost Reports 2140 2116 2120

Number of Licensed Beds2006 2005 2004

Full-Time Equivalent (FTE) Staff per Adjusted Occupied Bed (AOB)All Not-For-Profit General Acute Care Hospitals in the United States Ranked by Number of Licensed Beds

Number of Licensed Beds2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 34

Peer Group Comparison -Full-Time Equivalent (FTE) Staff Per Adjusted Occupied Bed (AOB)

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.08 3.15 82 3.04 3.16 93 3.08 3.20 932nd Quartile 4.22 4.19 82 4.17 4.16 93 4.21 4.23 933rd Quartile 5.12 5.11 82 5.10 5.07 93 5.14 5.11 944th Quartile 6.61 6.40 83 6.65 6.45 94 6.72 6.63 94

Total Population 4.76 4.67 329 4.74 4.58 373 4.79 4.65 374Excluded Cost Reports 32 34 34

Total Cost Reports 361 407 408

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.08 3.20 85 3.00 3.08 71 2.89 3.10 572nd Quartile 4.30 4.29 85 4.27 4.31 71 4.15 4.10 573rd Quartile 5.20 5.17 85 5.13 5.09 71 5.12 5.11 584th Quartile 6.62 6.35 85 6.64 6.58 72 6.54 6.40 58

Total Population 4.80 4.79 340 4.77 4.72 285 4.69 4.66 230Excluded Cost Reports 36 35 39

Total Cost Reports 376 320 269

Quartile Rank2006 2005 2004

Full-Time Equivalent (FTE) Staff per Adjusted Occupied Bed (AOB)All Not-For-Profit General Acute Care Hospitals in the United States with 25 Licensed Beds or Less

Quartile Rank2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 35

Peer Group Comparison -Full-Time Equivalent (FTE) Staff Per Adjusted Occupied Bed (AOB)

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.42 3.52 83 3.47 3.56 96 3.43 3.53 992nd Quartile 4.52 4.51 83 4.48 4.52 96 4.35 4.35 993rd Quartile 5.28 5.26 83 5.24 5.21 97 5.10 5.10 994th Quartile 6.64 6.36 83 6.67 6.53 97 6.43 6.30 100

Total Population 4.97 4.90 332 4.97 4.82 386 4.83 4.69 397Excluded Cost Reports 15 18 17

Total Cost Reports 347 404 414

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.43 3.55 96 3.42 3.53 101 3.50 3.62 1142nd Quartile 4.38 4.38 96 4.30 4.32 102 4.47 4.47 1143rd Quartile 5.13 5.13 97 5.05 5.03 102 5.17 5.14 1154th Quartile 6.50 6.29 97 6.35 6.23 102 6.48 6.34 115

Total Population 4.87 4.73 386 4.79 4.65 407 4.91 4.83 458Excluded Cost Reports 14 19 19

Total Cost Reports 400 426 477

Quartile Rank2006 2005 2004

Full-Time Equivalent (FTE) Staff per Adjusted Occupied Bed (AOB)All Not-For-Profit General Acute Care Hospitals in the United States with Between 26 and 100 Licensed Beds

Quartile Rank2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 36

Peer Group Comparison -Full-Time Equivalent (FTE) Staff Per Adjusted Occupied Bed (AOB)

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.49 3.60 98 3.48 3.60 117 3.48 3.61 1192nd Quartile 4.41 4.44 99 4.32 4.32 118 4.27 4.27 1193rd Quartile 5.07 5.06 99 4.98 4.97 118 4.89 4.85 1194th Quartile 6.21 5.98 99 6.18 6.01 118 6.13 5.90 119

Total Population 4.79 4.73 395 4.74 4.65 471 4.69 4.55 476Excluded Cost Reports 8 8 8

Total Cost Reports 403 479 484

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.48 3.54 120 3.44 3.50 121 3.44 3.53 1222nd Quartile 4.24 4.25 120 4.22 4.25 122 4.20 4.20 1223rd Quartile 4.88 4.85 120 4.81 4.80 122 4.75 4.73 1224th Quartile 6.07 5.86 121 6.00 5.78 122 5.94 5.78 122

Total Population 4.67 4.55 481 4.62 4.50 487 4.58 4.47 488Excluded Cost Reports 4 3 5

Total Cost Reports 485 490 493

Quartile Rank2006 2005 2004

Full-Time Equivalent (FTE) Staff per Adjusted Occupied Bed (AOB)All Not-For-Profit General Acute Care Hospitals in the United States with Between 101 and 200 Licensed Beds

Quartile Rank2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 37

Peer Group Comparison -Full-Time Equivalent (FTE) Staff Per Adjusted Occupied Bed (AOB)

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.80 3.88 67 3.78 3.84 78 3.73 3.77 782nd Quartile 4.56 4.54 68 4.50 4.50 78 4.48 4.46 783rd Quartile 5.27 5.24 68 5.22 5.21 78 5.13 5.10 794th Quartile 6.56 6.39 68 6.49 6.28 78 6.40 6.13 79

Total Population 5.05 4.88 271 5.00 4.82 312 4.94 4.80 314Excluded Cost Reports 3 3 4

Total Cost Reports 274 315 318

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.75 3.80 80 3.66 3.72 79 3.65 3.76 802nd Quartile 4.50 4.51 80 4.44 4.44 80 4.43 4.44 803rd Quartile 5.12 5.06 80 5.07 5.07 80 5.09 5.09 804th Quartile 6.31 6.02 81 6.33 6.11 80 6.34 6.15 81

Total Population 4.92 4.79 321 4.88 4.72 319 4.88 4.75 321Excluded Cost Reports 4 7 4

Total Cost Reports 325 326 325

Quartile Rank2006 2005 2004

Full-Time Equivalent (FTE) Staff per Adjusted Occupied Bed (AOB)All Not-For-Profit General Acute Care Hospitals in the United States with Between 201 and 300 Licensed Beds

Quartile Rank2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 38

Peer Group Comparison -Full-Time Equivalent (FTE) Staff Per Adjusted Occupied Bed (AOB)

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.93 4.02 47 3.93 4.04 55 3.90 4.04 562nd Quartile 4.82 4.82 47 4.72 4.69 55 4.73 4.71 563rd Quartile 5.38 5.38 48 5.34 5.29 55 5.36 5.33 564th Quartile 6.60 6.49 48 6.60 6.44 55 6.56 6.41 56

Total Population 5.19 5.05 190 5.15 5.07 220 5.14 5.03 224Excluded Cost Reports 3 3 3

Total Cost Reports 193 223 227

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.99 4.09 55 3.92 3.98 55 3.95 4.06 562nd Quartile 4.74 4.75 56 4.67 4.70 55 4.69 4.67 563rd Quartile 5.38 5.36 56 5.35 5.38 56 5.30 5.27 564th Quartile 6.57 6.49 56 6.45 6.32 56 6.53 6.32 57

Total Population 5.17 5.02 223 5.11 5.01 222 5.12 4.99 225Excluded Cost Reports 4 6 4

Total Cost Reports 227 228 229

Quartile Rank2006 2005 2004

Full-Time Equivalent (FTE) Staff per Adjusted Occupied Bed (AOB)All Not-For-Profit General Acute Care Hospitals in the United States with Between 301 and 400 Licensed Beds

Quartile Rank2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 39

Peer Group Comparison -Full-Time Equivalent (FTE) Staff Per Adjusted Occupied Bed (AOB)

Mean Median Count Mean Median Count Mean Median Count1st Quartile 4.12 4.36 26 3.96 4.13 31 3.97 4.06 312nd Quartile 4.84 4.85 26 4.76 4.77 31 4.72 4.67 323rd Quartile 5.51 5.59 27 5.48 5.52 32 5.44 5.37 324th Quartile 6.66 6.51 27 6.70 6.52 32 6.65 6.52 32

Total Population 5.30 5.05 106 5.24 5.10 126 5.21 5.04 127Excluded Cost Reports 2 1 1

Total Cost Reports 108 127 128

Mean Median Count Mean Median Count Mean Median Count1st Quartile 4.06 4.16 31 3.96 4.02 31 3.90 3.97 312nd Quartile 4.71 4.69 31 4.67 4.70 32 4.62 4.62 323rd Quartile 5.44 5.41 32 5.34 5.30 32 5.26 5.21 324th Quartile 6.65 6.41 32 6.73 6.47 32 6.63 6.39 32

Total Population 5.23 5.04 126 5.18 4.95 127 5.11 4.90 127Excluded Cost Reports 2 0 1

Total Cost Reports 128 127 128

Quartile Rank2006 2005 2004

Full-Time Equivalent (FTE) Staff per Adjusted Occupied Bed (AOB)All Not-For-Profit General Acute Care Hospitals in the United States with Between 401 and 500 Licensed Beds

Quartile Rank2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 40

Peer Group Comparison -Full-Time Equivalent (FTE) Staff Per Adjusted Occupied Bed (AOB)

Mean Median Count Mean Median Count Mean Median Count1st Quartile 4.36 4.52 38 4.37 4.52 47 4.33 4.47 472nd Quartile 5.20 5.15 39 5.19 5.20 47 5.12 5.17 483rd Quartile 5.82 5.79 39 5.77 5.77 47 5.75 5.71 484th Quartile 6.91 6.72 39 6.85 6.66 48 6.77 6.71 48

Total Population 5.58 5.55 155 5.55 5.44 189 5.50 5.44 191Excluded Cost Reports 10 9 8

Total Cost Reports 165 198 199

Mean Median Count Mean Median Count Mean Median Count1st Quartile 4.34 4.51 48 4.34 4.48 48 4.33 4.44 472nd Quartile 5.17 5.13 48 5.14 5.12 48 5.14 5.14 483rd Quartile 5.80 5.79 48 5.70 5.70 48 5.68 5.68 484th Quartile 6.92 6.76 48 6.82 6.72 48 6.68 6.48 48

Total Population 5.56 5.51 192 5.50 5.44 192 5.46 5.44 191Excluded Cost Reports 7 7 8

Total Cost Reports 199 199 199

Quartile Rank2006 2005 2004

Full-Time Equivalent (FTE) Staff per Adjusted Occupied Bed (AOB)All Not-For-Profit General Acute Care Hospitals in the United States with Over 500 Licensed Beds

Quartile Rank2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 41

Peer Group Comparison -Full-Time Equivalent (FTE) Staff Per Adjusted Occupied Bed (AOB)

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.61 3.66 441 3.60 3.67 517 3.59 3.64 5232nd Quartile 4.55 4.54 444 4.50 4.47 518 4.46 4.43 5253rd Quartile 5.27 5.25 446 5.23 5.20 520 5.17 5.15 5274th Quartile 6.55 6.40 447 6.54 6.40 522 6.47 6.34 528

Total Population 5.00 4.92 1778 4.97 4.86 2077 4.93 4.79 2103Excluded Cost Reports 73 76 75

Total Cost Reports 1851 2153 2178

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.62 3.68 515 3.58 3.65 506 3.59 3.66 5072nd Quartile 4.49 4.48 516 4.44 4.40 510 4.46 4.43 5093rd Quartile 5.19 5.14 518 5.12 5.09 511 5.12 5.09 5114th Quartile 6.44 6.28 520 6.38 6.26 512 6.37 6.25 513

Total Population 4.94 4.84 2069 4.88 4.77 2039 4.89 4.79 2040Excluded Cost Reports 71 77 80

Total Cost Reports 2140 2116 2120

Quartile Rank2006 2005 2004

Full-Time Equivalent (FTE) Staff per Adjusted Occupied Bed (AOB)All Not-For-Profit General Acute Care Hospitals in the United States Regardless of Bed Size

Quartile Rank2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 42

Days Net Patient Revenue in Accounts Receivable (AR) - Summary

Mean Median Count Mean Median Count Mean Median Count25 Beds or Less 52.42 51.57 344 56.12 54.65 388 57.20 56.34 38926 to 100 Beds 47.24 45.92 323 51.24 49.38 375 52.23 50.53 392

101 to 200 Beds 46.82 45.32 377 49.35 48.74 450 49.85 49.42 456201 to 300 Beds 46.13 45.28 250 49.39 49.09 286 50.96 50.29 293301 to 400 Beds 46.73 45.39 179 49.32 48.24 202 50.42 50.02 211401 to 500 Beds 47.45 47.36 101 49.69 49.60 123 51.51 50.25 120Over 500 Beds 47.90 47.44 158 50.91 50.47 186 50.59 50.83 187

Total All Hospitals 48.04 46.65 1732 51.18 50.16 2010 52.08 51.18 2048Excluded Cost Reports 119 143 130

Total Cost Reports 1851 2153 2178

Mean Median Count Mean Median Count Mean Median Count25 Beds or Less 57.30 56.22 361 55.90 53.65 302 57.33 56.39 25226 to 100 Beds 52.38 51.38 370 52.08 51.11 395 54.13 53.04 445

101 to 200 Beds 51.22 50.19 455 50.95 49.96 463 53.04 51.75 467201 to 300 Beds 51.27 50.62 297 51.29 50.03 297 53.43 52.48 296301 to 400 Beds 50.54 50.60 211 50.26 49.80 211 52.00 51.60 214401 to 500 Beds 50.69 50.27 122 49.82 48.87 117 53.39 52.06 123Over 500 Beds 51.35 51.16 184 52.05 52.13 184 54.03 53.50 187

Total All Hospitals 52.45 51.54 2000 51.95 51.14 1969 53.89 52.89 1984Excluded Cost Reports 140 147 136

Total Cost Reports 2140 2116 2120

Number of Licensed Beds2006 2005 2004

Days Net Patient Revenue in Accounts Receivable (AR)All Not-For-Profit General Acute Care Hospitals in the United States Ranked by Number of Licensed Beds

Number of Licensed Beds2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 43

Peer Group Comparison – Days Net Patient Revenue in Accounts Receivable (AR)

Mean Median Count Mean Median Count Mean Median Count1st Quartile 33.38 35.66 86 37.16 39.48 97 38.54 40.83 972nd Quartile 47.04 47.09 86 50.44 50.69 97 51.89 52.13 973rd Quartile 56.51 56.15 86 59.67 59.26 97 60.65 60.35 974th Quartile 72.76 70.68 86 77.22 75.23 97 77.49 74.46 98

Total Population 52.42 51.57 344 56.12 54.65 388 57.20 56.34 389Excluded Cost Reports 17 19 19

Total Cost Reports 361 407 408

Mean Median Count Mean Median Count Mean Median Count1st Quartile 39.17 41.91 90 37.36 40.42 75 38.90 40.50 632nd Quartile 51.83 51.30 90 50.23 50.59 75 52.43 52.65 633rd Quartile 60.56 60.55 90 59.14 59.00 76 60.43 60.21 634th Quartile 77.42 76.23 91 76.56 74.64 76 77.57 75.23 63

Total Population 57.30 56.22 361 55.90 53.65 302 57.33 56.39 252Excluded Cost Reports 15 18 17

Total Cost Reports 376 320 269

Quartile Rank2006 2005 2004

Days Net Patient Revenue in Accounts Receivable (AR)All Not-For-Profit General Acute Care Hospitals in the United States with 25 Licensed Beds or Less

Quartile Rank2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 44

Mean Median Count Mean Median Count Mean Median Count1st Quartile 29.88 31.71 80 34.15 35.84 93 34.15 35.99 982nd Quartile 42.00 42.19 81 45.75 46.11 94 46.30 46.21 983rd Quartile 49.50 49.36 81 53.99 53.94 94 54.86 54.44 984th Quartile 67.39 63.64 81 70.89 67.54 94 73.62 70.54 98

Total Population 47.24 45.92 323 51.24 49.38 375 52.23 50.53 392Excluded Cost Reports 24 29 22

Total Cost Reports 347 404 414

Mean Median Count Mean Median Count Mean Median Count1st Quartile 34.28 36.02 92 34.11 35.44 98 34.76 37.23 1112nd Quartile 47.10 47.46 92 47.43 47.14 99 49.05 49.23 1113rd Quartile 56.10 56.16 93 55.08 55.02 99 57.44 57.26 1114th Quartile 71.77 68.76 93 71.53 68.48 99 75.09 72.20 112

Total Population 52.38 51.38 370 52.08 51.11 395 54.13 53.04 445Excluded Cost Reports 30 31 32

Total Cost Reports 400 426 477

Days Net Patient Revenue in Accounts Receivable (AR)All Not-For-Profit General Acute Care Hospitals in the United States with Between 26 and 100 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Peer Group Comparison – Days Net Patient Revenue in Accounts Receivable (AR)

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 45

Mean Median Count Mean Median Count Mean Median Count1st Quartile 31.59 33.10 94 33.31 35.74 112 33.33 36.76 1142nd Quartile 42.04 42.05 94 44.49 44.20 112 45.35 45.21 1143rd Quartile 49.00 48.87 94 52.11 51.93 113 52.98 52.56 1144th Quartile 64.48 61.12 95 67.30 63.41 113 67.75 64.61 114

Total Population 46.82 45.32 377 49.35 48.74 450 49.85 49.42 456Excluded Cost Reports 26 29 28

Total Cost Reports 403 479 484

Mean Median Count Mean Median Count Mean Median Count1st Quartile 34.31 36.58 113 34.01 36.66 115 35.57 36.95 1162nd Quartile 46.21 46.08 114 46.42 46.65 116 47.93 47.94 1173rd Quartile 54.40 54.40 114 53.92 53.79 116 56.05 55.98 1174th Quartile 69.79 67.68 114 69.32 66.40 116 72.47 68.10 117

Total Population 51.22 50.19 455 50.95 49.96 463 53.04 51.75 467Excluded Cost Reports 30 27 26

Total Cost Reports 485 490 493

Days Net Patient Revenue in Accounts Receivable (AR)All Not-For-Profit General Acute Care Hospitals in the United States with Between 101 and 200 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Peer Group Comparison – Days Net Patient Revenue in Accounts Receivable (AR)

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 46

Mean Median Count Mean Median Count Mean Median Count1st Quartile 32.84 35.02 62 33.60 36.10 71 34.34 37.42 732nd Quartile 41.55 41.35 62 45.31 45.56 71 45.59 45.74 733rd Quartile 48.51 48.71 63 52.43 52.38 72 54.34 54.14 734th Quartile 61.34 58.26 63 65.93 61.89 72 69.31 66.73 74

Total Population 46.13 45.28 250 49.39 49.09 286 50.96 50.29 293Excluded Cost Reports 24 29 25

Total Cost Reports 274 315 318

Mean Median Count Mean Median Count Mean Median Count1st Quartile 35.41 36.96 74 34.19 36.33 74 36.66 39.32 742nd Quartile 46.60 46.80 74 46.30 46.57 74 48.55 49.08 743rd Quartile 54.26 54.18 74 54.92 54.83 74 56.83 56.52 744th Quartile 68.56 65.85 75 69.49 66.63 75 71.69 69.75 74

Total Population 51.27 50.62 297 51.29 50.03 297 53.43 52.48 296Excluded Cost Reports 28 29 29

Total Cost Reports 325 326 325

Days Net Patient Revenue in Accounts Receivable (AR)All Not-For-Profit General Acute Care Hospitals in the United States with Between 201 and 300 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Peer Group Comparison – Days Net Patient Revenue in Accounts Receivable (AR)

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 47

Mean Median Count Mean Median Count Mean Median Count1st Quartile 33.50 35.69 44 35.56 37.39 50 35.58 37.59 522nd Quartile 42.07 42.24 45 44.91 45.04 50 46.11 46.03 533rd Quartile 48.59 48.30 45 51.87 51.92 51 52.65 52.28 534th Quartile 62.48 60.09 45 64.59 60.66 51 67.07 62.22 53

Total Population 46.73 45.39 179 49.32 48.24 202 50.42 50.02 211Excluded Cost Reports 14 21 16

Total Cost Reports 193 223 227

Mean Median Count Mean Median Count Mean Median Count1st Quartile 34.75 37.03 52 34.32 36.65 52 35.66 38.62 532nd Quartile 46.37 46.55 53 45.49 45.57 53 47.07 46.95 533rd Quartile 54.06 53.55 53 54.11 54.36 53 55.33 55.55 544th Quartile 66.67 64.22 53 66.84 64.30 53 69.54 63.96 54

Total Population 50.54 50.60 211 50.26 49.80 211 52.00 51.60 214Excluded Cost Reports 16 17 15

Total Cost Reports 227 228 229

Days Net Patient Revenue in Accounts Receivable (AR)All Not-For-Profit General Acute Care Hospitals in the United States with Between 301 and 400 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Peer Group Comparison – Days Net Patient Revenue in Accounts Receivable (AR)

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 48

Mean Median Count Mean Median Count Mean Median Count1st Quartile 35.44 36.51 25 36.67 38.47 30 37.53 39.85 302nd Quartile 44.28 43.80 25 46.76 46.77 31 47.99 48.08 303rd Quartile 50.08 49.75 25 52.30 52.17 31 54.39 54.45 304th Quartile 59.51 59.12 26 62.60 60.80 31 66.13 66.39 30

Total Population 47.45 47.36 101 49.69 49.60 123 51.51 50.25 120Excluded Cost Reports 7 4 8

Total Cost Reports 108 127 128

Mean Median Count Mean Median Count Mean Median Count1st Quartile 34.71 35.47 30 35.67 38.44 29 37.75 40.04 302nd Quartile 46.87 46.87 30 45.26 44.88 29 48.59 48.97 313rd Quartile 55.16 55.06 31 53.35 52.92 29 55.87 55.92 314th Quartile 65.38 62.16 31 64.51 63.18 30 70.85 68.60 31

Total Population 50.69 50.27 122 49.82 48.87 117 53.39 52.06 123Excluded Cost Reports 6 10 5

Total Cost Reports 128 127 128

Days Net Patient Revenue in Accounts Receivable (AR)All Not-For-Profit General Acute Care Hospitals in the United States with Between 401 and 500 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Peer Group Comparison – Days Net Patient Revenue in Accounts Receivable (AR)

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 49

Mean Median Count Mean Median Count Mean Median Count1st Quartile 33.03 35.09 39 35.67 37.69 46 34.16 35.92 462nd Quartile 43.91 43.81 39 47.17 48.05 46 47.78 48.03 473rd Quartile 50.21 50.20 40 53.74 53.31 47 54.19 53.98 474th Quartile 63.99 60.93 40 66.67 64.25 47 65.90 62.01 47

Total Population 47.90 47.44 158 50.91 50.47 186 50.59 50.83 187Excluded Cost Reports 7 12 12

Total Cost Reports 165 198 199

Mean Median Count Mean Median Count Mean Median Count1st Quartile 34.43 36.40 46 37.20 38.61 46 37.42 39.88 462nd Quartile 47.79 48.10 46 48.03 47.69 46 50.25 50.62 473rd Quartile 55.54 56.16 46 55.74 55.89 46 57.84 57.96 474th Quartile 67.65 66.03 46 67.24 65.31 46 70.25 67.81 47

Total Population 51.35 51.16 184 52.05 52.13 184 54.03 53.50 187Excluded Cost Reports 15 15 12

Total Cost Reports 199 199 199

Days Net Patient Revenue in Accounts Receivable (AR)All Not-For-Profit General Acute Care Hospitals in the United States with Over 500 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Peer Group Comparison – Days Net Patient Revenue in Accounts Receivable (AR)

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 50

Mean Median Count Mean Median Count Mean Median Count1st Quartile 32.36 34.20 430 34.90 37.25 499 35.17 37.32 5102nd Quartile 43.26 43.18 432 46.42 46.47 501 47.26 47.35 5123rd Quartile 50.64 50.07 434 54.10 53.39 505 55.15 54.44 5124th Quartile 65.65 62.76 436 69.06 66.56 505 70.62 68.11 514

Total Population 48.04 46.65 1732 51.18 50.16 2010 52.08 51.18 2048Excluded Cost Reports 119 143 130

Total Cost Reports 1851 2153 2178

Mean Median Count Mean Median Count Mean Median Count1st Quartile 35.43 37.12 497 35.00 37.03 489 36.29 38.28 4932nd Quartile 47.65 47.72 499 47.17 47.28 492 49.01 49.36 4963rd Quartile 55.92 55.90 501 55.26 54.92 493 57.11 57.03 4974th Quartile 70.56 68.14 503 70.15 67.49 495 72.96 69.75 498

Total Population 52.45 51.54 2000 51.95 51.14 1969 53.89 52.89 1984Excluded Cost Reports 140 147 136

Total Cost Reports 2140 2116 2120

Days Net Patient Revenue in Accounts Receivable (AR)All Not-For-Profit General Acute Care Hospitals in the United States Regardless of Bed Size

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Peer Group Comparison – Days Net Patient Revenue in Accounts Receivable (AR)

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 51

Average Age of Plant and Equipment - Summary

Mean Median Count Mean Median Count Mean Median Count25 Beds or Less 9.05 8.70 297 9.20 8.83 335 9.27 9.26 32726 to 100 Beds 9.81 9.62 289 9.63 9.13 339 9.41 8.95 331

101 to 200 Beds 10.16 9.77 323 10.11 9.68 388 10.24 9.84 387201 to 300 Beds 10.66 10.73 221 11.07 10.94 252 11.24 11.06 250301 to 400 Beds 11.10 10.70 159 10.97 10.76 188 10.74 10.62 190401 to 500 Beds 11.19 11.10 89 11.40 11.26 105 11.76 11.46 100Over 500 Beds 10.78 10.55 136 10.87 10.68 163 10.90 10.40 163

Total All Hospitals 10.17 9.95 1514 10.22 10.10 1770 10.25 10.08 1748Excluded Cost Reports 337 383 430

Total Cost Reports 1851 2153 2178

Mean Median Count Mean Median Count Mean Median Count25 Beds or Less 9.37 9.06 309 9.60 9.32 257 9.64 9.54 19126 to 100 Beds 9.63 9.38 334 9.67 9.21 344 9.17 8.73 88

101 to 200 Beds 10.13 9.89 397 10.23 10.04 397 8.18 8.29 69201 to 300 Beds 11.24 11.33 248 11.18 10.92 258 11.59 11.69 41301 to 400 Beds 10.85 10.55 195 10.59 10.37 190 10.34 11.38 24401 to 500 Beds 11.99 11.26 101 11.57 11.07 103 12.83 13.78 7Over 500 Beds 10.74 10.27 159 10.63 10.41 159 10.44 10.85 23

Total All Hospitals 10.30 10.13 1743 10.32 10.12 1708 9.63 9.38 443Excluded Cost Reports 397 408 1677

Total Cost Reports 2140 2116 2120

Number of Licensed Beds2006 2005 2004

Average Age of Plant and EquipmentAll Not-For-Profit General Acute Care Hospitals in the United States Ranked by Number of Licensed Beds

Number of Licensed Beds2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 52

Peer Group Comparison - Average Age of Plant and Equipment

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.53 3.50 74 3.48 3.24 83 3.62 3.68 812nd Quartile 7.33 7.25 74 7.40 7.39 84 7.46 7.31 823rd Quartile 10.15 9.89 74 10.33 10.23 84 10.55 10.46 824th Quartile 15.11 14.47 75 15.53 15.11 84 15.39 14.66 82

Total Population 9.05 8.70 297 9.20 8.83 335 9.27 9.26 327Excluded Cost Reports 64 72 81

Total Cost Reports 361 407 408

Mean Median Count Mean Median Count Mean Median Count1st Quartile 3.51 3.88 77 3.41 3.50 64 2.88 2.62 472nd Quartile 7.55 7.61 77 7.80 7.88 64 7.73 7.97 483rd Quartile 10.66 10.74 77 10.96 10.86 64 11.24 11.29 484th Quartile 15.67 15.48 78 16.14 15.27 65 16.58 16.22 48

Total Population 9.37 9.06 309 9.60 9.32 257 9.64 9.54 191Excluded Cost Reports 67 63 78

Total Cost Reports 376 320 269

Quartile Rank2006 2005 2004

Average Age of Plant and EquipmentAll Not-For-Profit General Acute Care Hospitals in the United States with 25 Licensed Beds or Less

Quartile Rank2009 2008 2007

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 53

Peer Group Comparison - Average Age of Plant and Equipment

Mean Median Count Mean Median Count Mean Median Count1st Quartile 4.33 4.57 72 4.20 4.27 84 3.94 4.25 822nd Quartile 8.11 8.14 72 7.97 8.02 85 7.86 7.91 833rd Quartile 11.21 11.04 72 10.73 10.80 85 10.47 10.45 834th Quartile 15.53 14.68 73 15.58 15.08 85 15.31 14.90 83

Total Population 9.81 9.62 289 9.63 9.13 339 9.41 8.95 331Excluded Cost Reports 58 65 83

Total Cost Reports 347 404 414

Mean Median Count Mean Median Count Mean Median Count1st Quartile 4.21 4.19 83 4.33 4.63 86 3.69 4.15 222nd Quartile 8.07 8.05 83 7.93 7.90 86 7.71 7.87 223rd Quartile 10.77 10.85 84 10.72 10.74 86 9.96 9.61 224th Quartile 15.37 14.93 84 15.72 15.29 86 15.33 15.16 22

Total Population 9.63 9.38 334 9.67 9.21 344 9.17 8.73 88Excluded Cost Reports 66 82 389

Total Cost Reports 400 426 477

Average Age of Plant and EquipmentAll Not-For-Profit General Acute Care Hospitals in the United States with Between 26 and 100 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 54

Peer Group Comparison - Average Age of Plant and Equipment

Mean Median Count Mean Median Count Mean Median Count1st Quartile 5.00 5.41 80 4.74 5.06 97 4.84 5.13 962nd Quartile 8.66 8.65 81 8.53 8.54 97 8.62 8.53 973rd Quartile 11.06 11.05 81 11.18 11.15 97 11.39 11.50 974th Quartile 15.87 15.14 81 16.00 15.19 97 16.05 15.39 97

Total Population 10.16 9.77 323 10.11 9.68 388 10.24 9.84 387Excluded Cost Reports 80 91 97

Total Cost Reports 403 479 484

Mean Median Count Mean Median Count Mean Median Count1st Quartile 4.78 5.05 99 4.73 4.83 99 2.89 2.14 172nd Quartile 8.35 8.29 99 8.71 8.81 99 7.19 7.30 173rd Quartile 11.21 11.33 99 11.29 11.26 99 8.85 8.72 174th Quartile 16.11 15.91 100 16.11 15.75 100 13.47 12.95 18

Total Population 10.13 9.89 397 10.23 10.04 397 8.18 8.29 69Excluded Cost Reports 88 93 424

Total Cost Reports 485 490 493

Average Age of Plant and EquipmentAll Not-For-Profit General Acute Care Hospitals in the United States with Between 101 and 200 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 55

Peer Group Comparison - Average Age of Plant and Equipment

Mean Median Count Mean Median Count Mean Median Count1st Quartile 4.83 5.46 55 5.30 5.82 63 5.92 6.41 622nd Quartile 9.39 9.54 55 9.66 9.73 63 9.80 9.71 623rd Quartile 11.97 11.94 55 12.34 12.35 63 12.55 12.48 634th Quartile 16.37 16.37 56 16.98 16.82 63 16.58 16.20 63

Total Population 10.66 10.73 221 11.07 10.94 252 11.24 11.06 250Excluded Cost Reports 53 63 68

Total Cost Reports 274 315 318

Mean Median Count Mean Median Count Mean Median Count1st Quartile 6.09 6.41 62 5.84 6.32 64 7.27 7.39 102nd Quartile 10.00 9.94 62 9.57 9.49 64 9.96 10.10 103rd Quartile 12.52 12.47 62 12.45 12.33 65 12.35 12.34 104th Quartile 16.37 16.01 62 16.74 16.31 65 16.32 15.47 11

Total Population 11.24 11.33 248 11.18 10.92 258 11.59 11.69 41Excluded Cost Reports 77 68 284

Total Cost Reports 325 326 325

Average Age of Plant and EquipmentAll Not-For-Profit General Acute Care Hospitals in the United States with Between 201 and 300 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 56

Peer Group Comparison - Average Age of Plant and Equipment

Mean Median Count Mean Median Count Mean Median Count1st Quartile 6.06 7.22 39 5.79 6.71 47 5.70 6.34 472nd Quartile 9.70 9.72 40 9.50 9.43 47 9.33 9.30 473rd Quartile 12.10 11.91 40 12.09 12.12 47 11.88 11.79 484th Quartile 16.44 16.46 40 16.50 15.82 47 15.93 15.77 48

Total Population 11.10 10.70 159 10.97 10.76 188 10.74 10.62 190Excluded Cost Reports 34 35 37

Total Cost Reports 193 223 227

Mean Median Count Mean Median Count Mean Median Count1st Quartile 5.76 6.34 48 5.66 6.53 47 4.97 6.13 62nd Quartile 9.48 9.48 49 9.48 9.51 47 9.80 10.18 63rd Quartile 11.73 11.80 49 11.68 11.66 48 12.23 12.29 64th Quartile 16.31 16.01 49 15.43 15.11 48 14.38 13.46 6

Total Population 10.85 10.55 195 10.59 10.37 190 10.34 11.38 24Excluded Cost Reports 32 38 205

Total Cost Reports 227 228 229

Average Age of Plant and EquipmentAll Not-For-Profit General Acute Care Hospitals in the United States with Between 301 and 400 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 57

Peer Group Comparison - Average Age of Plant and Equipment

Mean Median Count Mean Median Count Mean Median Count1st Quartile 6.55 7.30 22 6.69 7.03 26 7.11 7.31 252nd Quartile 9.56 9.55 22 10.25 10.24 26 10.65 10.74 253rd Quartile 12.25 12.20 22 12.04 11.95 26 12.43 12.31 254th Quartile 16.18 15.84 23 16.43 15.74 27 16.85 16.72 25

Total Population 11.19 11.10 89 11.40 11.26 105 11.76 11.46 100Excluded Cost Reports 19 22 28

Total Cost Reports 108 127 128

Mean Median Count Mean Median Count Mean Median Count1st Quartile 7.28 7.73 25 6.84 8.04 25 5.60 5.60 12nd Quartile 10.40 10.41 25 10.21 10.21 26 11.35 11.35 23rd Quartile 12.91 13.12 25 12.06 12.13 26 13.93 13.93 24th Quartile 17.14 17.16 26 16.98 17.26 26 16.83 16.83 2

Total Population 11.99 11.26 101 11.57 11.07 103 12.83 13.78 7Excluded Cost Reports 27 24 121

Total Cost Reports 128 127 128

Average Age of Plant and EquipmentAll Not-For-Profit General Acute Care Hospitals in the United States with Between 401 and 500 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 58

Peer Group Comparison - Average Age of Plant and Equipment

Mean Median Count Mean Median Count Mean Median Count1st Quartile 6.63 7.38 34 6.54 7.10 40 6.50 7.03 402nd Quartile 9.61 9.67 34 9.54 9.55 41 9.48 9.43 413rd Quartile 11.65 11.51 34 11.69 11.65 41 11.78 11.84 414th Quartile 15.23 14.30 34 15.60 15.22 41 15.71 14.97 41

Total Population 10.78 10.55 136 10.87 10.68 163 10.90 10.40 163Excluded Cost Reports 29 35 36

Total Cost Reports 165 198 199

Mean Median Count Mean Median Count Mean Median Count1st Quartile 6.28 6.91 39 6.42 6.93 39 6.77 7.54 52nd Quartile 9.16 9.26 40 9.09 9.15 40 9.57 9.54 63rd Quartile 11.86 11.86 40 11.66 11.61 40 11.10 11.06 64th Quartile 15.55 14.82 40 15.26 14.76 40 13.70 13.36 6

Total Population 10.74 10.27 159 10.63 10.41 159 10.44 10.85 23Excluded Cost Reports 40 40 176

Total Cost Reports 199 199 199

Average Age of Plant and EquipmentAll Not-For-Profit General Acute Care Hospitals in the United States with Over 500 Licensed Beds

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 59

Peer Group Comparison - Average Age of Plant and Equipment

Mean Median Count Mean Median Count Mean Median Count1st Quartile 4.90 5.25 376 4.87 5.11 440 4.97 5.19 4332nd Quartile 8.65 8.69 378 8.67 8.65 443 8.70 8.76 4373rd Quartile 11.28 11.18 378 11.29 11.31 443 11.37 11.38 4394th Quartile 15.75 15.30 382 16.01 15.56 444 15.86 15.44 439

Total Population 10.17 9.95 1514 10.22 10.10 1770 10.25 10.08 1748Excluded Cost Reports 337 383 430

Total Cost Reports 1851 2153 2178

Mean Median Count Mean Median Count Mean Median Count1st Quartile 5.02 5.20 433 5.00 5.24 424 3.77 4.02 1082nd Quartile 8.71 8.76 435 8.76 8.77 426 8.12 8.13 1113rd Quartile 11.43 11.48 436 11.43 11.39 428 10.82 10.92 1114th Quartile 15.96 15.56 439 16.03 15.59 430 15.55 15.09 113

Total Population 10.30 10.13 1743 10.32 10.12 1708 9.63 9.38 443Excluded Cost Reports 397 408 1677

Total Cost Reports 2140 2116 2120

Average Age of Plant and EquipmentAll Not-For-Profit General Acute Care Hospitals in the United States Regardless of Bed Size

Quartile Rank2009 2008 2007

Quartile Rank2006 2005 2004

Notes:• Excludes partial-year cost reports and those cost reports deemed to be outliers (e.g., values greater than two standard deviations from the mean of the reported population).• Excludes Federal, specialty hospitals and general acute care hospitals for which 30% or more of total licensed beds are comprised of sub acute beds.

October 2010 60

Introduction to Healthcare Management PartnersWho We Are

HMP is a hospital and healthcare services management firm. All of its senior executives have decades of healthcare experienceincluding CEO, COO and CFO assignments across the spectrum of healthcare service providers. Our senior management has deepexperience in building and operating thriving healthcare organizations. Part of that experience includes taking decisive action in crisesor turnaround situations. This knowledge base gives HMP a unique perspective and all the tools necessary to handle the issues facingany healthcare provider organization. HMP provides Hospital Contract Management, Turnaround Management and Interim or CrisisManagement services.

Our Approach

Our approach to every assignment is built upon the straightforward application of three simple steps or guiding principles.

Listen – We listen carefully to our clients, their key stakeholders and the marketplace throughout each assignment.

Evaluate – We employ detailed, fact-based analysis to evaluate and validate assumptions, findings and recommended actions.

Implement – We have a bias toward “getting it done.” We take decisive action to quickly convert opportunities or solve problems .

The HMP Difference Total commitment to providing C-Level attention throughout each assignment by experienced healthcare executives

Small, dedicated teams of operating professionals for each assignment

Absolute integrity of our fact-based approach

Action-oriented diagnostic and business planning processes

Proven ability to drive positive outcomes in all sectors of healthcare

Depth of HMP network, providing critical access to key resources and people

Commitment to the highest professional standards

October 2010 61

Introduction to Healthcare Management Partners

Management Services

HMP is a hospital and healthcare services management firm. All of its senior executives have decades of healthcare experienceincluding CEO, COO and CFO assignments across the spectrum of health services. Examples of specific assignments include serving asthe Chief Executive Officer (CEO) of the following types of healthcare organizations:

Religious affiliated or sponsored multihospital systems

Free standing not-for-profit or government owned community hospitals

University and major teaching hospitals

Single site and multihospital regional operations for investor owned hospital management companies

De Novo organizations (start-up) planning, construction and operation of new general acute care hospitals, free-standing heartand cancer hospitals, a continuing care retirement community and many other related facilities

Hospitals that are in bankruptcy or for sale

Financially distressed skilled nursing facilities

Home health, hospice and physician practices

“HMP’s senior staff members are professional healthcare service executives who also possess consulting skills, not professional consultants. We understand and are committed to the provision of quality healthcare services

at every provider organization where we have a management role.”

October 2010

Hospital Contract Management

HMP is positioned to undertake the long-term (3 to 5 years) contract management of hospitals of all sizes and stages ofdevelopment. Our executives are experienced in leading the development of new or replacement general acute care or specialtyhospitals or the turnaround and repositioning of existing hospitals. They can effectively lead initiatives in the following areas:

62

Introduction to Healthcare Management Partners

Strategic Leadership Clinical Excellence Operational Excellence Financial Performance

Market Positioning Clinical Process Redesign Patient Throughput Revenue Cycle

Brand Development Evidence‐Based Care Emergency Department Clinical Efficiency

Business Office Consolidation

Service Line Development Resource Utilization and Cost of Quality

Surgical Services Clinical Efficiency

Managed Care Contracting

Capital Planning and Investment Pay for Performance Inpatient Length of Stay and Level of Care

Risk Management and Insurance

Physician Relations Care and Case Management Processes

Human Resources Management Budgeting / Financial Planning

Physician Integration Quality and Safety Indicators Ambulatory Care Capital Programs

Continuum of Care Design and Implementation Strategic Plans

Hospice and Home Care Supply Chain

Corporate and Medical Staff Governance

Mission and Vision Best Practices and Operating Metrics

Financial Reporting and Accounting

We will be directly accountable to the board of directors and will assume full responsibility to plan, organize, staff, direct andcontrol the successful and cost effective operations of the hospital.

Because HMP is not a management consulting firm, our contract management executives are free to always bring the best and mostcost-effective solution, from whatever source, to the hospital should outside assistance prove necessary to implement a givenstrategic or tactical initiative.

October 2010

Turnaround Management

HMP’s executives have served as chief restructuring officers of healthcare companies through bankruptcies, crisis situations and in theearly stages of high-profile criminal and civil fraud investigations. In each of these situations, their leadership helped theseorganizations bolster performance through discipline and carefully planned action.

Some consultants assess your problems and provide a recommended course of action. But HMP executives take the helm of failingorganizations and assume direct responsibility for transforming them. Time and again, they have succeeded in revitalizing providers ofall kinds, from a rural nursing home chain to a 1,000 bed teaching hospital or a 179 bed county owned community hospital.

There are no quick fixes in turnaround management, but HMP has developed a highly effective, streamlined approach for achievinglasting improvements as soon as possible. We begin by developing a strong knowledge base of your organization. Individuals fromevery level of the organization are interviewed: management, medical and nursing staff members, board of directors, employees,patients and their families. Their input, combined with a depth of healthcare industry knowledge, allows HMP to:

Stabilize the crises,

Identify immediate opportunities and challenges,

Develop a strategic plan, including milestones and deadlines,

Define expected outcomes,

Build consensus with all constituents – medical and nursing staffs, management, unions, and the local community,

Change cultures, and

Optimize performance.

In all of its healthcare provider turnaround assignments, HMP has successfully designed and executed plans that simultaneously addedpatient volume and revenues, reduced costs and improved profitability and cash flow.

From the outset, HMP builds on each organization’s strengths, working side‐by‐side with management, directors and other keystakeholders to drive desired results. HMP also focuses on winning the support and active participation of the medical and nursingstaffs, which is fundamental for delivering quality healthcare services and improving financial results.

63

Introduction to Healthcare Management Partners

October 2010

Interim and Crisis Management

HMP serves in interim and crisis management roles when required to help guide providers through periods of crisis or change.Companies that are underperforming and in crisis, or healthy but in transition, may need additional experienced healthcare industryleaders to stabilize operations and improve financial performance or maintain continuity in the rapid implementation of critical strategicinitiatives.

Our professionals can offer critical advice or step into key leadership positions such as Chief Restructuring Officer, Chief FinancialOfficer, or Chief Executive Officer to provide needed stability during periods of change. Our proven interim management capabilitiesadd valuable support in crisis situations. We immediately fill critical leadership vacancies and shorten the lead‐time for implementingspecific initiatives. HMP provides much needed leadership and speed to create value in executing crisis management and restructuringplans.

Our crisis and interim management services include:

Immediate staffing of critical senior management positions

Reducing lead‐time for implementing strategic initiatives

Managing communications processes with Members of the medical and nursing staffs, board members, employees and regulators,and if required

Bankruptcy process planning and administration

64

Introduction to Healthcare Management Partners

October 2010

Clients Our Professionals Have Served

65

Investor Owned Hospitals or Health SystemsAmeris Health Systems Health South Corporation Integrated Healthcare

Holdings, Inc.Shasta Regional Medical Center

Doctors Hospital, Houston Hospital Corporation of America

Lakeside Hospital at Bastrop St. Joseph Hospital, Houston

Doctors Hospital, Los Angeles Hugh Chatham Memorial Hospital

LifePoint Hospitals Tenet Healthcare Corporation

HealthPlus Hughston Hospital and Clinic Monroe Hospital, LLC Vanguard Health Systems

Hospital Partners of America Integra Healthcare Promise Healthcare

Not-For-Profit or Governmental Hospitals or SystemsBaylor College of Medicine Hahnemann University

HospitalNew York United Hospital Medical Center

Southern Chester County Medical Center

The Brooklyn Hospital Center Health Alliance of Cincinnati Nyack Hospital St Vincent’s Catholic Medical Centers, New York

Devereux Foundation National Health Service, United Kingdom

Rahway Hospital Temple Health System

Franciscan Health System Legacy Health System Raritan Bay Health System Tri‐Lakes Medical Center

General Health System Mercy Health System Robert Wood Johnson Health Network

University Hospital Consortium of Pennsylvania

Good Samaritan Hospital Natchez Regional Medical Center

Sisters of Mercy Health System

October 2010 66

Law and Accounting FirmsBird Marella LLP Deloitte Kantrow, Spaht, Weaver & Blitzer Patton Boggs

Bradley Arant Boult Cummings LLP

Gearhiser, Peters, Lockaby, Cavett & Elliott, PLLC

KPMG Ramirez International, Inc.

Brown McCarroll LLP Hogan & Hartson LLP Latham & Watkins Whiteford Taylor Preston, LLP

Fulbright & Jaworski LLP Hooper, Lundy & Bookman Mancuso & Franco PC Schiavetti, Corgan, Soscia, DiEdwards and Nicholson, LLP

Decosimo Jones Day Milbank, Tweed, Hadley and McCloy LLP

Waller Lansden Dortch & Davis

Clients Our Professionals Have Served (continued)

Senior Care and/or Continuing Care Retirement CommunitiesGrace Care of Texas Monarch Landing, Inc.

Jenner’s Pond Continuing Care Retirement Community National Senior Campuses (Erickson Retirement Communities)

Life Care Centers of America Sedgebrook, Inc.

Linden Ponds, Inc. St. Edward Mercy Health Systems (Ft. Smith, AR)

Mercy Hospitals of Texas St. Johns Nursing Home (St. Louis, MO)

Other Providers / PayorsBlue Cross of Tennessee Best Choice Home Health Community Behavioral Health

Network of PAColumbia Home Care

October 2010 67

Firm Leadership

Scott PhillipsTitle Managing Director

Education B.S. from University of FloridaCPA

Boards & Organizations American Bankruptcy Institute Healthcare Subcommittee Chair

Telephone 267.207.2929

Mobile 267.804.3885

E-Mail sphillips@hcmpllc.com

Scott has more than 30 years of healthcare industry management and consulting experience. Prior to founding HMP in 1997, he served as thepresident and chief executive officer of a 636-bed academic medical center, as national partner and regional healthcare practice director for ToucheRoss & Co., and as the chief financial officer of a faith-based multihospital system operating 12 hospitals across seven states.

Scott has significant management and consulting experience with government, tax-exempt and investor owned healthcare service providers. Heunderstands the organization and delivery of high-quality health services, including the role of corporate and medical staff governance duringdifficult periods of transition. Scott has executive level experience with mergers, acquisitions and turnaround situations, including restructuring inbankruptcy. In all of his many healthcare provider turnaround assignments, he has successfully designed and implemented plans that simultaneouslyadded patient volume and revenues while conserving cash and reducing unit costs. He understands this approach builds on the organization’sstrengths and attracts the support of the local community and medical and nursing staffs, which is essential for the long-term provision of qualityhealthcare services.

Over the past several years, Scott has served as the chairman and CEO of an investor owned healthcare provider with operations in 15 states andchief executive officer of a publicly traded medical staffing company with more than 2,000 employees. Both turnaround assignments included thecrises management of complex organizations in the early stages of high-profile criminal and civil fraud investigations by multiple federal agencies.

Scott has expert knowledge of the bankruptcy process as well as its implications and obligations on an operating provider of healthcare services. Herecently led the successful financial turnaround and Chapter 9 reorganization of a 179-bed county-owned hospital.

Recently he was the financial advisor to 18 tax-exempt continuing care retirement communities with more than 20,000 residents in twelve states,affected by the bankruptcy and sale of Erickson Retirement Communities.

Scott graduated from the University of Florida with a Bachelor of Science in accounting. He is a licensed certified public accountant and member ofnumerous professional organizations. He is currently serving Leader Special Projects, Healthcare Committee, American Bankruptcy Institute.

October 2010 68

Firm Leadership

Michael MorganTitle Managing Director

Education MBA from University of Central OklahomaB.S. from University of Science and Arts of Oklahoma

Boards & Organizations Fellow of American College of Healthcare Executives

Telephone 713.968.6521

Mobile 214.701.9990

E-Mail mmorgan@hcmpllc.com

Michael is a former hospital chief executive officer with more than 30 years of experience in healthcare management. He brings expertise and talentfor turning around ailing healthcare providers and optimizing healthy organizations.

In his 25-year career at the Sisters of Mercy Health System, Michael was responsible for turning around five of the system’s 19 hospitals. He servedas president and chief executive officer for several Sisters of Mercy hospitals, including St. John’s Mercy Health Care, which has over $800 millionin operating revenues, employs more than 8,000 individuals and includes the system’s flagship 957-bed teaching hospital. As the CEO, he has setsuccessful new strategies, improved clinical and administrative operations and changed organizational cultures. His trademark is developing capablemanagement teams that in turn increase service quality, employee and medical staff satisfaction, patient volume, profitability and maximize cashflow.

After leaving the Sisters of Mercy system, Michael served as the chief restructuring officer and CEO for a two-hospital, investor owned system inTexas. In eight months, he led the successful turnaround, emergence from bankruptcy and recapitalization of the hospitals by a physician-led limitedpartnership. He led the turnaround of a chain of five nursing homes in Texas and the bankruptcy turnaround of a two-campus, acute-care hospital inMississippi. He was the oversight Managing Director for a two-campus rehab and specialty hospital chapter 11 bankruptcy. He also recently servedas the CRO for three individual CCRC’s under a large CCRC management company bankruptcy, and provided financial advisory services for a largeinvestment banking group on a 500-bed hospital system.

Michael holds a Bachelor of Science in business administration from the University of Science and Arts of Oklahoma and a Master of Science inbusiness administration from the University of Central Oklahoma. He is a fellow of the American College of Healthcare Executives and has servedas an officer or director of numerous hospitals and business organizations, including a 280,000-member for-profit health insurance plan.

October 2010 69

Firm Leadership

Bruce BuchananTitle Managing Director

Education MBA from George Mason UniversityMHSA from University of MichiganB.A. from Princeton University

Boards & Organizations Fellow of American College of Healthcare Executives

Mobile 602.363.1140

Fax 866.794.9501

E-Mail bbuchanan@hcmpllc.com

Bruce has more than 30 years of experience in the healthcare field and is a senior healthcare executive with a successful track record in both the not-for-profit and investor owned sectors. He possesses multimarket experience at the hospital and health system chief executive officer level. He hasdeep experience and expertise in revenue growth, physician collaboration/integration, organizational development, productivity improvement andquality enhancement.

Before joining HMP, Bruce served as CEO of Phoenix Baptist Hospital, where he turned around the distressed 236-bed teaching hospital by reducingoperating costs while enhancing the quality of care. Bruce led a similar turnaround of Northeast Baptist Hospital in San Antonio, including recruitingnew physicians, doubling the hospital’s physical space and growing market share. He also served as president and CEO of Atlanta Medical Centerand Mercy Health System Oklahoma and its Mercy Health Center in Oklahoma City. Bruce also held senior management positions with HillcrestHealthcare System and Saint Joseph Hospital and worked for Invalesco Group as an operations consultant to healthcare organizations.

Most recently with HMP, Bruce served as Chief Restructuring Officer for a rehabilitation hospital company with two facilities. He successfully ledthe company through a Chapter 11 bankruptcy process and a Section 363 sale to a new, privately held owner. He also served as CEO of a countyhospital and guided it through a Chapter 9 bankruptcy, which resulted in all unsecured creditors receiving three year notes for full payment plusinterest.

Bruce has a Bachelor of Arts in sociology from Princeton University, a Master of Health Services Administration from University of Michigan, and aMaster of Business Administration from George Mason University. He is board-certified in healthcare management and a Fellow in the AmericanCollege of Healthcare Executives. He also is a member of the Turnaround Management Association.

October 2010 70

Firm Leadership

Derek PierceTitle Managing Director

Education B.S. from Samford University

Telephone 205.202.0459

Mobile 615.584.0719

E-Mail dpierce@hcmpllc.com

Derek has over 20 years of professional experience focused solely in the healthcare industry, having served as chief financial officer, chiefrestructuring officer, director of reimbursement, court-appointed examiner, Medicare auditor, Medicare cost report preparer, forensic accountant,compliance consultant, financial auditor, and financial advisor. He has audited, managed and consulted with all types of healthcare providers,including government owned, community not-for-profit, academic, and investor owned entities.

Most recently, Derek served as the restructuring chief financial officer of a two-campus, not-for-profit hospital in Chapter 11 bankruptcy. In additionto his CFO responsibilities, he led the Section 363 sale process and conducted a forensic review into the circumstances that led to the hospital’sbankruptcy filing. Throughout the project, Derek worked closely with senior lenders, debtor-in-possession lenders and the applicable federal loanprogram to a successful plan of reorganization.

Starting his career with the Medicare fiscal intermediary as a Medicare auditor, Derek developed deep expert knowledge of the patient revenue cycle,third-party contracting, and Medicare and Medicaid rules and regulations. He is expert in the areas of corporate and regulatory compliance andforensic accounting in conjunction with the defense of civil and criminal fraud claims or allegations. He led teams conducting forensic analysis insupport of settlement negotiations with the government at both Hospital Corporation of America (HCA) and HealthSouth Corporation, two of thelargest and most complex civil fraud settlements in history.

In his career, Derek has led or participated in interim management and consulting assignments for more than 40 healthcare providers, includingBaptist Memorial Health Care, National Health Service (United Kingdom) Washington Hospital Center, Lifepoint Hospitals, Tampa GeneralHospital, Legacy Health System and IASIS Healthcare.

Prior to joining HMP as a managing director, Derek was a Director with Alvarez & Marsal in its New York-based healthcare practice. Before that,he was a senior manager with Arthur Andersen in its Atlanta-based healthcare consulting practice.

Derek is a graduate of Samford University with a Bachelor of Science in accounting and is a member of numerous professional associations.

October 2010

Contact Information

Philadelphia• Contact: Scott Phillips

Managing Director• Address:

One Liberty Place1650 Market Street36th FloorPhiladelphia, PA 19103

• Phone: 267.804.3885• Fax: 215.689.4386

New York• Contact: Nihal Shah

Director• Address:

1185 Avenue of the Americas30th FloorNew York, NY 10036

• Phone: 212.461.4243• Fax: 212.461.4252

Houston• Contact: Mike Morgan

Managing Director• Address:

5100 WestheimerSuite 200Houston, TX 77056

• Phone: 713.968.6521• Fax: 866.422.6176

Birmingham• Contact: Derek Pierce

Managing Director• Address:

2001 Park Place, Suite 1400Birmingham, AL 35203

• Phone: 205.202.0459• Fax: 615.523.1835

Phoenix• Contact: Bruce Buchanan

Managing Director• Address:

243 E. Glenn DrivePhoenix, AZ 85020

• Mobile: 602.363.1140 • Fax: 866.794.9501

London, UK• Contact: Tim Bolot

Managing Director• Address:

Bolt Partners LLP 192 Haverstock Hill,Belsize Park,London NW3 2AJ

• Phone: +44 (0)20 7435 7349

71