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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2003

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________.

COMMISSION FILE NUMBER: 333-106612-09

JORDAN VALLEY HOSPITAL,
LP

(Exact Name of Registrant as Specified in Its Certificate of Limited Partnership)

DELAWARE
(State or Other Jurisdiction of
Incorporation or Organization)
    
    82-0588653
(I.R.S. Employer
(Identification No.)


113 SEABOARD LANE, SUITE A-200
FRANKLIN, TENNESSEE 37067
(Address of Principal Executive Offices)

(615) 844-2747
(Registrants Telephone Number, Including Area Code)

Not Applicable
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)

Indicate
by check mark ü whether the registrant: (1) has filed
all reports required to be filed by Section 13 or 15 (d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days. YES o NO þ

Indicate by check mark ü whether the registrant is an
accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
YES o NO þ

The Registrant meets the conditions set forth in General
Instruction (H)(1)(a) and (b) of Form 10-Q (as modified by grants of
no-action relief) and is therefore filing this form using the
reduced disclosure format specified therein.





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TABLE OF CONTENTS



|                                             |                                                                                               |  |  |  |  |  |  | 
|-------------------------------------------- | --------------------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|PART I. FINANCIAL INFORMATION               
|                                             | Item 1. Financial Statements                                                                 
|                                             | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|                                             | Item 3. Quantitative and Qualitative Disclosures About Market Risk                           
|                                             | Item 4.Controls and Procedures                                                               
|PART II. OTHER INFORMATION                  
|                                             | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURES                                  
|EXHIBIT INDEX                               
|EX-31.1  SECTION 302 CEO CERTIFICATION      
|EX-31.2  SECTION 302 CFO CERTIFICATION      
|EX-32.1  SECTION 906 CEO & CFO CERTIFICATION



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TABLE OF CONTENTS

PART I.
    
    FINANCIAL INFORMATION
    
    
    1Item 1. Condensed Financial Statements
    
    
    1Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    6Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    9Item 4. Controls and Procedures
    
    
    9PART II.
    
    OTHER INFORMATION
    
    
    10Item 6. Exhibits and Reports on Form 8-K
    
    
    10






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PART I.

FINANCIAL INFORMATION




Item 1. Financial Statements

JORDAN VALLEY HOSPITAL, LP
CONDENSED BALANCE SHEETS
(In thousands)

Predecessor(Note 1)(unaudited)June 30,
    
    September 30,2003
    
    2002AssetsCurrent assets:Cash
    
    $
    
    
    
    $
    226Accounts receivable, net of allowance for doubtful
accounts of $2,717 and $2,134, respectively
    
    
    7,006
    
    
    
    7,603Due (to) from affiliate
    
    
    7,076
    
    
    
    (3,055
    )Inventories
    
    
    1,119
    
    
    
    1,116Prepaid expenses and other current assets
    
    
    358
    
    
    
    650Total current assets
    
    
    15,559
    
    
    
    6,540Property and equipment, net
    
    
    33,385
    
    
    
    32,881Goodwill
    
    
    8,925
    
    
    
    8,925Other assets, net
    
    
    1,150
    
    
    
    944Total assets
    
    $
    59,019
    
    
    
    49,290Liabilities and EquityCurrent liabilities:Accounts payable
    
    $
    2,165
    
    
    
    2,533Salaries and benefits payable
    
    
    1,099
    
    
    
    979Other accrued liabilities
    
    
    251
    
    
    
    193Current portion of long term debt and capital lease obligations
    
    
    935
    
    
    
    319Total current liabilities
    
    
    4,450
    
    
    
    4,024Long term portion of debt allocated from IASIS and capital leases
    
    
    32,683
    
    
    
    46,476Total liabilities
    
    
    37,133
    
    
    
    50,500Partners capital
    
    
    21,886
    
    
    
    Stockholders deficit
    
    
    
    
    
    
    (1,210
    )Total liabilities and equity
    
    $
    59,019
    
    
    $
    49,290


See accompanying notes.

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JORDAN VALLEY HOSPITAL, LP
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands)

Predecessor (Note 1)Three Months
    
    Six Months
    
    Three Months
    
    Nine MonthsEnded
    
    Ended
    
    Ended
    
    EndedJune 30, 2003
    
    March 31, 2003
    
    June 30, 2002
    
    June 30, 2002Net revenue
    
    $
    13,563
    
    
    $
    25,275
    
    
    $
    11,410
    
    
    $
    31,546Costs and expenses:Salaries and benefits
    
    
    4,359
    
    
    
    8,753
    
    
    
    3,826
    
    
    
    11,219Supplies
    
    
    1,623
    
    
    
    3,051
    
    
    
    1,401
    
    
    
    4,186Other operating expenses
    
    
    2,356
    
    
    
    3,908
    
    
    
    1,796
    
    
    
    5,130Provision for bad debts
    
    
    1,003
    
    
    
    1,973
    
    
    
    844
    
    
    
    2,417Interest expense
    
    
    780
    
    
    
    3,001
    
    
    
    1,479
    
    
    
    4,430Depreciation and amortization
    
    
    804
    
    
    
    1,555
    
    
    
    666
    
    
    
    1,918Management fees
    
    
    271
    
    
    
    1,159
    
    
    
    411
    
    
    
    1,096Total costs and expenses
    
    
    11,196
    
    
    
    23,400
    
    
    
    10,423
    
    
    
    30,396Net earnings
    
    $
    2,367
    
    
    $
    1,875
    
    
    $
    987
    
    
    $
    1,150


See accompanying notes.

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JORDAN VALLEY HOSPITAL, LP
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)

Predecessor(Note 1)Three Months
    
    Six Months
    
    Nine MonthsEnded
    
    
    
    
    
    Ended
    
    EndedJune 30, 2003
    
    March 31, 2003
    
    June 30, 2002Cash flows from operating activitiesNet earnings
    
    $
    2,367
    
    
    
    
    
    
    $
    1,875
    
    
    $
    1,150Adjustments to reconcile net earnings to net cash
provided by operating activities:Depreciation and amortization
    
    
    804
    
    
    
    
    
    
    
    1,555
    
    
    
    1,918Changes in operating assets and liabilities:Accounts receivable
    
    
    310
    
    
    
    
    
    
    
    287
    
    
    
    (722
    )Inventories, prepaid expenses and
other current assets
    
    
    (16
    )
    
    
    
    
    
    
    102
    
    
    
    (957
    )Accounts payable, salaries and
benefits payable and other accrued
liabilities
    
    
    521
    
    
    
    
    
    
    
    (710
    )
    
    
    (1,073
    )Net cash provided by operating activities
    
    
    3,986
    
    
    
    
    
    
    
    3,109
    
    
    
    316Cash flows from investing activitiesPurchases of property and equipment, net
    
    
    (1,505
    )
    
    
    
    
    
    
    (1,357
    )
    
    
    (1,059
    )Change in other assets
    
    
    118
    
    
    
    
    
    
    
    (324
    )
    
    
    17Net cash used in investing activities
    
    
    (1,387
    )
    
    
    
    
    
    
    (1,681
    )
    
    
    (1,042
    )Cash flows from financing activitiesChange in due to affiliate, net
    
    
    (3,806
    )
    
    
    
    
    
    
    (1,497
    )
    
    
    (703
    )Proceeds from syndication
    
    
    1,288
    
    
    
    
    
    
    
    
    
    
    
    Payment of capital leases
    
    
    (81
    )
    
    
    
    
    
    
    (157
    )
    
    
    (23
    )Net cash used in financing activities
    
    
    (2,599
    )
    
    
    
    
    
    
    (1,654
    )
    
    
    726Change in cash
    
    
    
    
    
    
    
    
    
    
    (226
    )
    
    
    Cash at beginning of the period
    
    
    
    
    
    
    
    
    
    
    226
    
    
    
    Cash at end of the period
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    $
    


See accompanying notes.

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JORDAN VALLEY HOSPITAL, LP
NOTES TO UNAUDITED CONDENSED
FINANCIAL STATEMENTS

1. Organization

Jordan Valley Hospital, LP, a Delaware limited partnership (the
Partnership) was formed on February 11, 2003 to own and operate Jordan Valley
Hospital (the Hospital). The Hospital is a 50-bed acute care hospital that
provides inpatient, outpatient and emergency care services to residents in and
around the Salt Lake City, Utah area. The Partnerships general partner is
IASIS Healthcare Holdings, Inc. (General Partner) and the limited partners
consist of IASIS Healthcare Corporation (IASIS) and other third party
investors. The General Partner is an indirect wholly-owned subsidiary of
IASIS. IASIS is a for-profit hospital management company that owns and operates
14 general, acute care hospitals in four states. IASIS also owns a Medicaid
managed health plan in Arizona. The Partnerships initial 99% limited partner
was IASIS. On April 1, 2003, IASIS sold 2.6% of its limited partner units in
the Partnership to third party investors, which reduced its ownership in the
Partnership accordingly. Prior to this transaction, the Hospital was owned and
operated by Jordan Valley Hospital, Inc.

The financial statements for all periods prior to April 1, 2003 reflect
the financial position, result of operations and cash flows of Jordan Valley
Hospital, Inc., the Partnerships predecessor entity (the Predecessor
Company). The financial statements for all periods subsequent to April 1,
2003, reflect the financial position, results of operations and cash flows for
the Hospital as operated by the Partnership. Unless stated otherwise as the
Predecessor Company or the Partnership, all references to the Hospital include
the operations of both the Predecessor Company and the Partnership.

The unaudited condensed financial statements include the accounts of the
Partnership and have been prepared in accordance with accounting principles
generally accepted in the United States for interim financial reporting and in
accordance with Rule 10-01 of Regulation S-X. Accordingly, they do not include
all of the information and notes required by accounting principles generally
accepted in the United States for complete financial statements. The balance
sheet at September 30, 2002 has been derived from the audited financial
statements at that date but does not include all of the information and
footnotes required by accounting principles generally accepted in the United
States for complete financial statements.

In the opinion of management, the accompanying unaudited condensed
financial statements contain all material adjustments (consisting of normal
recurring items) necessary for a fair presentation of results for the interim
periods presented. The results of operations for any interim period are not
necessarily indicative of results for the full year.

The preparation of the financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the amounts reported in the accompanying
unaudited condensed financial statements and notes. Actual results could differ
from those estimates.

2. Debt Allocated from IASIS

In conjunction with the acquisition of the Hospital, the Predecessor
Company entered into a promissory note (the Note) with IASIS in the amount of
$45,080,363. Under provisions of the Note interest of 13% per annum is due and
payable on October 1, of each year until October 1, 2004, at which time the
entire outstanding principal balance, together with all accrued and unpaid
interest, shall be immediately due and payable in full. The Note may be prepaid
in whole or in part without premium or penalty and may reborrow up to the
stated principal amount.

During 2003, the Partnership entered into a new promissory note (the New
Note) with the Precessor Company in the amount of $32,301,279. The New Note is a five-year note at 9.3% interest per annum on a twenty-year
amortization schedule.

3. Goodwill

Goodwill represents cost in excess of the fair value of acquired tangible
net assets of the Hospital and is evaluated for impairment according to
Statement of Financial Accounting Standards (SFAS) No. 142, Goodwill and
Other Intangible Assets.The Partnership adopted SFAS No. 142 effective October
1, 2001 which resulted in no goodwill impairment.

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JORDAN VALLEY HOSPITAL, LP
NOTES TO UNAUDITED CONDENSED
FINANCIAL STATEMENTS (Continued)

4. Commitments and Contingencies

Final determination of amounts earned under the Medicare and Medicaid
programs often occurs in subsequent years because of audits by the programs,
rights of appeal and the application of numerous technical provisions. In the
opinion of management, adequate provision has been made for adjustments that
may result from such routine audits and appeals.

The Partnership is subject to claims and legal actions arising in the
ordinary course of business. The Partnership is currently not a party to any
such proceedings that, in the Partnerships opinion, would have a material
adverse effect on the Partnerships business, financial condition or results of
operations.

The Partnerships assets and equity interests are pledged as a full and
unconditional guarantee of certain debt of IASIS, which totaled approximately
$654 million at June 30, 2003.

In order to recruit and retain physicians to the communities it serves,
the Partnership has committed to provide certain financial assistance in the
form of recruiting agreements with various physicians. Amounts advanced under
the recruiting agreements are generally forgiven prorata over a period of 24
months after one year of completed service and contingent upon the physician
continuing to practice in the respective community. The amounts advanced and
not repaid, in managements opinion, will not have a material adverse effect on
the Partnerships financial condition or results of operations.

5. Income Taxes

No provision for income taxes has been reflected in the accompanying
financial statements because the tax effect of the Partnerships activities
accrues to the individual partners. The Partnerships tax returns and the
amounts of distributable Partnership income or loss are subject to examination
by the federal and state taxing authorities. In the event of an examination of
the Partnerships tax return, the tax liability of the partners could be
changed if any adjustment to the Partnership taxable income or loss is
ultimately sustained by the taxing authorities.

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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

Pursuant to General Instruction (H)(2)(a) of Form 10-Q, the following
analysis of the results of operations is presented in lieu of Managements
Discussion and Analysis of Financial Condition and Results of Operations. The
following discussion should be read in conjunction with our unaudited condensed
financial statements, the notes to our unaudited condensed financial statements
and the other financial information appearing elsewhere in this report.

Overview

Jordan Valley Hospital, LP, also referred to as the Partnership, was
formed on February 11, 2003 to own and operate Jordan Valley Hospital in West
Jordan, Utah. The hospital is a 50-bed acute care hospital that provides
inpatient, outpatient and emergency care services to residents in and around
the Salt Lake City, Utah area. The Partnerships 1% general partner is IASIS
Healthcare Holdings, Inc., which is an indirect wholly-owned subsidiary of
IASIS Healthcare Corporation, also referred to as IASIS. IASIS is a for-profit
hospital management company that owns and operates 14 general, acute care
hospitals in four states. IASIS also owns a Medicaid managed health plan in
Arizona. The Partnerships initial 99% limited partner was IASIS. On April 1,
2003, IASIS sold 2.6% of its limited partner units in the Partnership to third
party investors, which reduced its ownership in the Partnership accordingly.
Prior to this transaction, the hospital was owned and operated by Jordan Valley
Hospital, Inc.

On June 6, 2003, IASIS issued $100.0 million of 8-1/2% senior subordinated
notes due 2009. On August 14, 2003, pursuant to an effective registration
statement on Form S-4 filed with the Securities and Exchange Commission, IASIS
exchanged all of its outstanding 8-1/2% senior subordinated notes due 2009 for
8-1/2% senior subordinated notes due 2009 that are registered under the
Securities Act of 1933, as amended. The notes are guaranteed by all of IASISs
material subsidiaries other than Health Choice Arizona, Inc., including the
Partnership.

The Partnership, along with all of IASISs material subsidiaries, also
guarantees IASISs 13% senior subordinated notes due 2009 in the amount of
$230.0 million. The 13% senior subordinated notes were issued on October 13,
1999. On May 25, 2000, IASIS exchanged all of its outstanding 13% senior
subordinated notes due 2009 for 13% senior subordinated notes due 2009 that
have been registered under the Securities Act of 1933, as amended.

Forward Looking Statements

Some of the statements we make in this report are forward-looking within
the meaning of the federal securities laws, which are intended to be covered by
the safe harbors created thereby. Those forward-looking statements include all
statements that are not historical statements of fact and those regarding our
intent, belief or expectations. Forward-looking statements involve known and
unknown risks and uncertainties that may cause actual results in future periods
to differ materially from those anticipated in the forward-looking statements.
Those risks and uncertainties include, among others, our ability to negotiate
favorable contracts with managed care plans; the highly competitive nature of
the healthcare industry; possible changes in Medicare and Medicaid
reimbursement levels and other federal or state healthcare reforms; future cost
containment initiatives undertaken by purchasers of healthcare services; our
ability to attract and retain qualified management and personnel, including
physicians and nurses; the effect of existing and future governmental
regulations, including the Balanced Budget Act of 1997, the Balanced Budget
Refinement Act of 1999 and the Medicare, Medicaid and SCHIP Benefit Improvement
and Protection Act of 2000; the impact of possible governmental investigations;
our ability to use our information systems effectively; our limited operating
history; and general economic and business conditions. Although we believe that
the assumptions underlying the forward-looking statements contained in this
report are reasonable, any of these assumptions could prove to be inaccurate
and, therefore, there can be no assurance that the forward-looking statements
included in this report will prove to be accurate. In light of the significant
uncertainties inherent in the forward-looking statements included in this
report, you should not regard the inclusion of such information as a
representation by us or any other person that our objectives and plans will be
achieved. We undertake no obligation to publicly release any revisions to any
forward-looking statements contained herein to reflect events and circumstances
occurring after the date hereof or to reflect the occurrence of unanticipated
events.

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Results of Operations

The following table presents, for the period indicated, information
expressed as a percentage of net revenue. Such information has been derived
from our unaudited condensed statement of operations.

PredecessorThree Months
    
    Six Months
    
    Three Months
    
    Nine MonthsEnded June 30,
    
    Ended March 31,
    
    Ended June 30,
    
    Ended June 30,2003
    
    2003
    
    2002
    
    2002Net revenue
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %Salaries and benefits
    
    
    32.1
    
    
    
    34.6
    
    
    
    33.5
    
    
    
    35.6Supplies
    
    
    12.0
    
    
    
    12.1
    
    
    
    12.3
    
    
    
    13.3Other operating expenses
    
    
    17.4
    
    
    
    15.5
    
    
    
    15.8
    
    
    
    16.2Provision for bad debts
    
    
    7.4
    
    
    
    7.8
    
    
    
    7.4
    
    
    
    7.7Interest expense
    
    
    5.7
    
    
    
    11.9
    
    
    
    13.0
    
    
    
    14.0Depreciation and amortization
    
    
    5.9
    
    
    
    6.1
    
    
    
    5.8
    
    
    
    6.1Management fees
    
    
    2.0
    
    
    
    4.6
    
    
    
    3.6
    
    
    
    3.5Net earnings
    
    
    17.5
    %
    
    
    7.4
    %
    
    
    8.6
    %
    
    
    3.6
    %


Three Months Ended June 30, 2003 (Partnership) Compared to Three Months Ended June 30, 2002 (Predecessor)

Net Revenue

Net revenue is comprised of net patient service revenue and other revenue.
Net patient service revenue is reported net of contractual adjustments. The
adjustments principally result from differences between the hospitals
established charges and payment rates under Medicare, Medicaid and various
managed care plans. Established hospital charges generally have increased at a
faster rate than the rate of increase for Medicare and Medicaid payments. The
calculation of appropriate payments from the Medicare and Medicaid programs as
well as terms governing agreements with other third-party payors are complex
and subject to interpretation. As a result, there is at least a reasonable
possibility that recorded estimates will change by a material amount.

Net revenue totaled $13.6 million in the three months ended June 30, 2003,
compared to $11.4 million in the same period during 2002, an increase of $2.2,
or 18.9%. Net patient revenue per adjusted admission increased 19.3% for the
three months ended June 30, 2003, compared to the same period in 2002. The
increase in net patient revenue per adjusted admission was due primarily to
increased acuity and price increases.

Admissions increased 6.1% from 1,236 for the three months ended June 30,
2002 to 1,311 for the same period in 2003, and adjusted admissions decreased
0.3% from 3,032 for the three months ended June 30, 2002, to 3,022 for the same
period in 2003.

Operating Expenses

Salaries
and benefits increased $533,000 from $3.8 million, or 33.5% of
net revenue, in the three months ended June 30, 2002 to $4.3 million or 32.1%
of net revenue, in the three months ended June 30, 2003. The increase was due
primarily to volume growth, general wage inflation and an increase in employee
benefits. The 1.4% decrease in salaries and benefits as a percentage of net
revenue during the three months ended June 30, 2003 from the prior year period
resulted from the staffing efficiencies achieved from leveraging costs through
the growth in net revenue.

Supplies expense increased $222,000 from $1.4 million, or 12.3% of net
revenue, in the three months ended June 30, 2002 to $1.6 million, or 12.0% of
net revenue, in the three months ended June 30, 2003. Supplies as a percentage
of net revenue decreased 0.3% during the three months ended June 30, 2003 from
the prior year period as a result of improved compliance with IASISs group
purchasing contract compared to the prior period.

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Other operating expenses, consisting of medical and clinical fees, other
fees and services, repairs and maintenance, insurance, rent expense,
amortization of physician recruiting costs and other expenses increased
$560,000 from $1.8 million, or 15.8% of net revenue, in the three months ended
June 30, 2002 to $2.4 million, or 17.4% of net revenue, in the three months
ended June 30, 2003. The increase in other operating expenses was primarily
the result of increases in insurance expense and physician recruiting costs.
We expect our other operating expenses to continue to be negatively impacted
for the near term by insurance expense increases as a result of continued cost
pressures on the professional liability insurance market. Other operating
expenses as a percentage of net revenue increased 1.6% during the three months
ended June 30, 2003, over the prior year period.

Provision for bad debts increased $159,000 from $844,000 in the three
months ended June 30, 2002 to $1.0 million in the three months ended June 30,
2003. As a percentage of net revenue, provision for bad debts was unchanged at
7.4%.

Depreciation and amortization expense increased $138,000 from $666,000 in
the three months ended June 30, 2002 to $804,000 in the three months ended June
30, 2003. The increase in depreciation and amortization was primarily the
result of additions to property and equipment during 2002 and 2003.

Interest expense decreased $699,000 from $1.5 million in the three months
ended June 30, 2002 to $780,000 in the three months ended June 30, 2003. The
decrease in interest expense is due to the decrease in debt associated with a
new promissory note entered into with Predecessor Company in April 2003.

Management fees decreased $140,000 from $411,000 in the three months ended
June 30, 2002 to $271,000 in the three months ended June 30, 2003. Management
fees represent an allocation of IASISs corporate overhead costs. The decrease
in allocated management fees resulted from a decrease in IASISs corporate
overhead costs charged to the Partnership as compared to amounts charged by
IASIS to the predecessor company.

Net income was $987,000 for the three months ended June 30, 2002 as
compared to $2.4 million for the three months ended June 30, 2003.

Nine Months Ended June 30, 2003 (Combined Partnership and Predecessor) Compared to Nine Months Ended June 30, 2002 (Predecessor)

Net Revenue

Net revenue totaled $38.8 million in the nine months ended June 30, 2003,
compared to $31.5 million in the same period during 2002, an increase of $7.3
million or 23.1%. Net patient revenue per adjusted admission increased 6.0%
for the nine months ended June 30, 2003, compared to the same period in 2002.
The increase in net patient revenue per adjusted admission was due primarily to
price increases.

Admissions increased 8.3% from 3,557 for the nine months ended June 30,
2002 to 3,854 for the same period in 2003, and adjusted admissions increased
16.2% from 7,869 for the nine months ended June 30, 2002, to 9,142 for the same
period in 2003.

Operating Expenses

Salaries and benefits increased $1.9 million from $11.2 million, 35.6% of
net revenue, in the nine months ended June 30, 2002 to $13.1 million, or 33.8%
of net revenue, in the nine months ended June 30, 2003. The increase was due
primarily to general wage inflation and an increase in employee benefits. The
1.8% decrease in salaries and benefits as a percentage of net revenue during
the nine months ended June 30, 2003 over the prior year period resulted from
the staffing efficiencies achieved from leveraging costs through the growth in
net revenue.

Supplies expense increased $482,000 from $4.2 million, or 13.3% of net
revenue, in the nine months ended June 30, 2002 to $4.7 million, or 12.0% of
net revenue, in the nine months ended June 30, 2003. Supplies as a percentage
of net revenue decreased 1.3% during the nine months ended June 30, 2003 over
the prior year period as a result of improved compliance with IASISs group
purchasing contract compared to the prior period.

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Other operating expenses, consisting of medical and clinical fees, other
fees and services, repairs and maintenance, insurance, rent expense,
amortization of physician recruiting costs and other expenses increased $1.1
million from $5.1 million, or 16.3% of net revenue, in the nine months ended
June 30, 2002 to $6.3 million, or 16.1% of net revenue, in the nine months
ended June 30, 2003. The increase in other operating expenses was primarily
the result of increases in insurance expense and physician recruiting costs.
We expect our other operating expenses to continue to be negatively impacted
for the near term by insurance expense increases as a result of continued cost
pressures on the professional liability insurance market. Other operating
expenses as a percent of net revenue decreased 0.2% during the nine months
ended June 30, 2003, over the prior year period.

Provision for bad debts increased $559,000 from $2.4 million in the nine
months ended June 30, 2002 to $3.0 million in the nine months ended June 30,
2003. As a percentage of net revenue, provision for bad debts was unchanged at
7.7%.

Depreciation and amortization expense increased $441,000 from $1.9 million
in the nine months ended June 30, 2002 to $2.4 in the nine months ended June
30, 2003. The increase in depreciation and amortization was primarily the
result of additions to property and equipment during 2002 and 2003.

Interest expense decreased $649,000 from $4.4 million in the nine months
ended June 30, 2002 to $3.8 million in the nine months ended June 30, 2003. The
decrease in interest expense is due to the decrease in debt associated with a
new promissory note entered into with the Predecessor Company in April 2003.

Management fees increased $334,000 from $1.1 million for the nine months
ended June 30, 2002 to $1.4 million for the nine months ended June 30, 2003.
Management fees represent an allocation of IASISs corporate overhead costs.
The increase in allocated management fees resulted from an increase in IASISs
corporate overhead costs.

Net income was $1.2 million for the nine months ended June 30, 2002 as
compared to $3.2 million for the nine months ended June 30, 2003.




Item 3. Quantitative and Qualitative Disclosures About Market Risk

Omitted pursuant to General Instruction (H)(2)(c) of Form 10-Q.




Item 4. Controls and Procedures

Under the supervision and with the participation of our management team,
including the persons performing the functions of principal executive officer
and principal financial officer of the Partnership, we conducted an evaluation
of our disclosure controls and procedures, as such term is defined under Rule
13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934,
as amended, as of June 30, 2003. Based on this evaluation, the persons
performing the functions of principal executive officer and principal financial
officer concluded that the Partnerships disclosure controls and procedures are
effective in timely alerting them to material information required to be
included in our periodic reports.

There were no changes in our internal control over financial reporting
that occurred during the period covered by this report that materially
affected, or are reasonably likely to materially affect, our internal control
over financial reporting.

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PART II.

OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K



| | (a) |  | List of Exhibits:
| | --- |  | -----------------

3.1
    
    Certificate of Limited Partnership of Jordan
Valley Hospital, LP, as filed with the Secretary of State of
the State of Delaware on February 11, 2003*3.2
    
    Limited Partnership Agreement of Jordan Valley
Hospital, LP*4.1
    
    Supplemental Indenture dated April 1, 2003,
between Jordan Valley Hospital, LP, as Subsidiary Guarantor,
and The Bank of New York, as Trustee*4.2
    
    Indenture, dated as of June 6, 2003, among IASIS
Healthcare Corporation, the Subsidiary Guarantors and The Bank
of New York, as Trustee*4.3
    
    Form of Subsidiary Guarantee dated as of June 6,
2003, executed by each of the Subsidiary Guarantors*4.4
    
    Registration Rights Agreement dated June 6, 2003,
by and among IASIS Healthcare Corporation, the Guarantors
signatories thereto and Banc Of America Securities LLC, Bear,
Stearns & Co. Inc. and Citigroup Global Markets Inc.*10.1
    
    First Amendment to Credit Agreement dated as of
May 21, 2003, by and among IASIS Healthcare Corporation, the
Subsidiary Guarantors, the Lenders party thereto and Bank of
America, N.A., as Administrative Agent*31.1
    
    Certification pursuant to Rule 15d-14(a), as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
200231.2
    
    Certification pursuant to Rule 15d-14(a), as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
200232.1
    
    Certification pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002*
    
    (Incorporated by reference to the Partnerships
Registration Statement on Form S-4 (Registration No.
333-106612-09))




| | (b) |  | Reports on Form 8-K:
| | --- |  | --------------------



| |  |  | None
| |  |  | ----

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

|                      |  |                            |  |                                                                                  
|--------------------- |  | -------------------------- |  | ---------------------------------------------------------------------------------
|                      |  | JORDAN VALLEY HOSPITAL, LP
|                     
|                      |  | By:                        |  | IASIS Healthcare Holdings, Inc.
General Partner                                  
|                     
|Date: August 29, 2003 |  | By:                        |  | /s/ Benjamin CluffBenjamin Cluff,
Chief Financial Officer-
Jordan Valley Hospital

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EXHIBIT INDEX

3.1
    
    Certificate of Limited Partnership of Jordan
Valley Hospital, LP, as filed with the Secretary of State of
the State of Delaware on February 11, 2003*3.2
    
    Limited Partnership Agreement of Jordan Valley
Hospital, LP*4.1
    
    Supplemental Indenture dated April 1, 2003,
between Jordan Valley Hospital, LP, as Subsidiary Guarantor,
and The Bank of New York, as Trustee*4.2
    
    Indenture, dated as of June 6, 2003, among IASIS
Healthcare Corporation, the Subsidiary Guarantors and The Bank
of New York, as Trustee*4.3
    
    Form of Subsidiary Guarantee dated as of June 6,
2003, executed by each of the Subsidiary Guarantors*4.4
    
    Registration Rights Agreement dated June 6, 2003,
by and among IASIS Healthcare Corporation, the Guarantors
signatories thereto and Banc Of America Securities LLC, Bear,
Stearns & Co. Inc. and Citigroup Global Markets Inc.*10.1
    
    First Amendment to Credit Agreement dated as of
May 21, 2003, by and among IASIS Healthcare Corporation, the
Subsidiary Guarantors, the Lenders party thereto and Bank of
America, N.A., as Administrative Agent*31.1
    
    Certification pursuant to Rule 15d-14(a), as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
200231.2
    
    Certification pursuant to Rule 15d-14(a), as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
200232.1
    
    Certification pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002*
    
    (Incorporated by reference to the Partnerships
Registration Statement on Form S-4 (Registration No.
333-106612-09))


12