PRIME HEALTHCARE SERVICES INC.
CONSOLIDATED INCOME STATEMENT
YTD Sept 30th, 2010
 YTDSept 2010REVENUENET PATIENT REVENUE
    
    $
    1,079,531,325CAPITATION REVENUE
    
    
    18,780,789OTHER REVENUE
    
    
    9,809,148TOTAL OPERATING REVENUE
    
    
    1,108,121,262OPERATING EXPENSESCOMPENSATION AND EMPLOYEE BENEFITS
    
    
    404,937,080PROVISION FOR DOUBTFUL ACCOUNTS
    
    
    227,537,746GENERAL AND ADMINISTRATIVE
    
    
    88,244,480SUPPLIES
    
    
    98,799,640PROFESSIONAL SERVICES
    
    
    79,968,055DEPRECIATION / AMORTIZATION
    
    
    20,103,730MEDICAL CLAIMS
    
    
    2,382,147TOTAL OPERATING EXPENSES
    
    
    921,972,878NET OPERATING INCOME (LOSS)
    
    
    186,148,384INTEREST
    
    
    21,776,182INCOME TAX EXPENSE
    
    
    918,500Income Before Allocation to Non-Controlling
Interest
    
    
    163,453,702Allocation of Income to Non-Controlling
Interest
    
    
    (92,317,515
    )NET INCOME (LOSS)
    
    
    71,136,187




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PRIME HEALTCARE SERVICES INC.
BALANCE SHEET
As of Sep 30, 2010
 As ofSept 30, 2010ASSETS:Cash and Equivalents
    
    $
    201,849,078Accounts Receivable
    
    $
    906,842,476Allowance for Bad Debt
    
    
    (71,580,084
    )Allowance for Contractuals & Oth Adj
    
    
    (631,160,331
    )Patient Accounts Receivable
    
    $
    204,102,061Other Receivables
    
    $
    4,101,930Inventories
    
    
    5,556,819Other Current Assets
    
    
    1,148,892Current Portion of Long-Term Notes Receivable
    
    
    2,000,000Current Portion of Related Party Long-Term Notes Rec
    
    
    0Prepaid Insurance
    
    
    53,930,997Other Pre-Paid Expenses
    
    
    4,171,492Total Current Assets
    
    $
    476,861,269Land and Improvements
    
    $
    38,515,973Buildings and Improvements
    
    
    67,604,100Leaseholds
    
    
    14,070,297Equipment
    
    
    169,464,233Construction-In-Progress
    
    
    8,140,738Property and Equipment
    
    $
    297,795,340Less: Accumulated Depreciation
    
    
    (88,843,987
    )Net Property and Equipment
    
    $
    208,951,354Investments in Property Plant & Equipment
    
    $
    11,813,481Less: Accumulated Depreciation
    
    
    0Net Investments in Property, Plant & Equip
    
    $
    11,813,481Long-term notes
    
    $
    0Related Party Long-term portion Notes Recv
    
    
    128,890,834Net goodwill
    
    
    13,707,802Other intangible assets
    
    
    8,465,784Total Long-Term Assets
    
    $
    371,829,255TOTAL ASSETS
    
    $
    848,690,523LIABILITIES:Accounts Payable
    
    $
    28,857,859Notes Payable
    
    
    206,438Capital Leases
    
    
    2,952,818Accrued Payroll
    
    
    16,860,719Accrued PTO
    
    
    24,251,368Accrued Payroll Taxes
    
    
    4,689,136IBNR
    
    
    4,128,009Other Accrued Expenses
    
    
    3,131,711Third-Party Settlements
    
    
    (8,101,909
    )Lines of Credit & Other Short-Term Debt
    
    
    10,268,304Current Portion of Long-Term Debt
    
    
    0Current Portion of Related Party Notes Payable
    
    
    0Other Liabilities
    
    
    833,139Total Current Liabilities
    
    $
    88,077,592Mortgages and Long-Term Notes Payable
    
    $
    97,973,797Related Party Notes Payable
    
    $
    128,890,396Total Intracompany
    
    $
    300,269Deferred Credits
    
    $
    3,414,474Deferred Taxes
    
    
    0Other Long-Term Liabilities
    
    
    241,512,056Total Long-Term Liabilities
    
    $
    472,090,992TOTAL LIABILITIES
    
    $
    560,168,584EQUITY:Common Stock
    
    $
    1,350,000Additional Paid-in Capital
    
    
    14,507,888Other Equity
    
    
    0Retained Earnings PY
    
    
    159,210,350Distributions
    
    
    (50,000,000
    )Net Income
    
    
    71,136,187Non  Controlling Interest
    
    
    92,317,515TOTAL EQUITY
    
    $
    288,521,940TOTAL LIABILITIES AND EQUITY
    
    $
    848,690,523




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##### 



PRIME HEALTHCARE SERVICES INC.
CONSOLIDATED CASH FLOWS STATEMENT
YTD FOR THE PERIOD ENDED SEPT 30th, 2010
 YTDSep-10Cash Flows from Operating Activities:Change in Net Income
    
    $
    163,453,702Adj from Operating Activities:Depreciation and Amortization
    
    $
    19,612,162Other Deferred Income/Expense
    
    
    (2,904,259
    )(Increase)/Decrease in Assets:Patient Accounts Receivable
    
    
    ($14,159,220
    )Supplies Inventory
    
    
    (407,430
    )Pre-Paid Expenses & Oth Current Assets
    
    
    8,355,033Other Receivables
    
    
    (1,391,490
    )Long-Term Receivables
    
    
    (128,890,834
    )Increase/(Decrease) in Liabilities:Accounts and Notes Payable
    
    
    ($16,524,475
    )Accrued Payroll Costs
    
    
    8,089,138IBNR
    
    
    (1,266,317
    )Other Accrued Liabilities
    
    
    (2,100,105
    )Estimated 3rd Party Settlements
    
    
    (1,345,010
    )Net Cash From (For) Operating Activities
    
    $
    30,520,894Cash Flows from Investing Activities:Capital Expenditures
    
    
    ($23,071,133
    )Payments to Acquire Other Assets
    
    
    (8,451,896
    )Net Cash From (For) Investing Activities
    
    
    ($31,523,028
    )Cash Flows from Financing Activities:Funds Provided (to) from Intercompany
    
    $
    14,214,370Funds Provided (to) from Related Party
    
    
    (13,105,378
    )Borrow (Re-Payment) of Debt
    
    
    211,489,752Capital Lease Obligations (Re-Payment)
    
    
    (6,450,659
    )Parent Contributions / (Distributions)
    
    
    (49,300,336
    )Payments for Acquisition
    
    
    0Net Cash From (For) Financing Activities
    
    $
    156,847,749Net Change in Cash and Cash Equivalents
    
    $
    155,845,615Beginning Cash Balance
    
    $
    46,003,463Ending Cash Balance
    
    $
    201,849,078
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