PRIME HEALTHCARE SERVICES INC.
CONSOLIDATED INCOME STATEMENT
YEAR TO DATE MARCH 31, 2009
 REVENUENET PATIENT REVENUE
    
    $
    400,410,830CAPITATION REVENUE
    
    
    5,522,210OTHER REVENUE
    
    
    3,423,580TOTAL OPERATING REVENUE
    
    
    409,356,620OPERATING EXPENSESCOMPENSATION AND EMPLOYEE BENEFITS
    
    
    149,353,064PROVISION FOR DOUBTFUL ACCOUNTS
    
    
    129,880,817GENERAL AND ADMINISTRATIVE
    
    
    41,758,368MEDICAL SUPPLIES
    
    
    34,376,926PROFESSIONAL FEES
    
    
    8,231,922DEPRECIATION / AMORTIZATION
    
    
    5,486,707MEDICAL CLAIMS
    
    
    1,524,379TOTAL OPERATING EXPENSES
    
    
    370,612,182NET OPERATING INCOME (LOSS)
    
    
    38,744,437INTEREST
    
    
    5,797,567INCOME TAX EXPENSE
    
    
    713,320Income Before Allocation to Non-Controlling
Interest
    
    
    32,233,551Allocation of Income to Non-Controlling
Interest
    
    
    (18,095,803
    )NET INCOME (LOSS)
    
    
    14,137,748




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##### 



PRIME HEALTCARE SERVICES INC.
BALANCE SHEET
As of March 31, 2009
 PrimeTotalASSETS:Cash and Equivalents
    
    $
    24,344,912Accounts Receivable
    
    $
    1,423,340,513Allowance for Bad Debt
    
    
    (88,957,742
    )Allowance for Contractuals & Oth Adj
    
    
    (1,130,172,094
    )Patient Accounts Receivable
    
    $
    204,210,677Other Receivables
    
    $
    2,637,399Inventories
    
    
    6,343,524Other Current Assets
    
    
    5,403,295Current Portion of Long-Term Notes
Receivable
    
    
    434,186Prepaid Insurance
    
    
    24,327,703Other Pre-Paid Expenses
    
    
    6,015,371Total Current Assets
    
    $
    273,717,065Land and Improvements
    
    $
    42,275,328Buildings and Improvements
    
    
    72,433,763Leaseholds
    
    
    10,503,218Equipment
    
    
    124,409,814Construction-In-Progress
    
    
    7,164,685Property and Equipment
    
    $
    256,786,808Less: Accumulated Depreciation
    
    
    (50,576,928
    )Net Property and Equipment
    
    $
    206,209,880Investments in Property Plant & Equipment
    
    $
    0Less: Accumulated Depreciation
    
    
    0Net Investments in Property, Plant &
Equip
    
    $
    0Long-term notes
    
    $
    0Net goodwill
    
    
    13,707,802Other intangible assets
    
    
    97,222Total Long-Term Assets
    
    $
    220,014,903TOTAL ASSETS
    
    $
    493,731,969LIABILITIES:Accounts Payable
    
    $
    36,658,770Notes Payable
    
    
    8,593,644Capital Leases
    
    
    5,185,148Accrued Payroll
    
    
    15,083,506Accrued PTO
    
    
    25,157,327Accrued Payroll Taxes
    
    
    11,120,167IBNR
    
    
    2,916,997Other Accrued Expenses
    
    
    2,343,408Third-Party Settlements
    
    
    1,930,376Lines of Credit & Other Short-Term Debt
    
    
    19,422,893Current Portion of Long-Term Debt
    
    
    277,394Other Liabilities
    
    
    11,965,533Total Current Liabilities
    
    $
    140,655,163Mortgages and Long-Term Notes Payable
    
    $
    208,142,455Total Intracompany
    
    
    ($7,861,672
    )Deferred Credits
    
    $
    20,369,567Deferred Taxes
    
    
    0Other Long-Term Liabilities
    
    
    24,463,508Total Long-Term Liabilities
    
    $
    245,113,858TOTAL LIABILITIES
    
    $
    385,769,021EQUITY:Common Stock
    
    $
    1Additional Paid-in Capital
    
    
    2,999Other Equity
    
    
    0Retained Earnings PY
    
    
    85,476,400Distributions
    
    
    (9,750,003
    )Net Income
    
    
    14,137,748Non  Controlling Interest
    
    
    18,095,803TOTAL EQUITY
    
    $
    107,962,947TOTAL LIABILITIES AND EQUITY
    
    $
    493,731,968




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##### 



PRIME HEALTHCARE SERVICES INC.
CONSOLIDATED CASH FLOWS STATEMENT
YTD FOR THE PERIOD ENDED 03/31/09
 PrimeTotalCash Flows from Operating Activities:Change in Net Income
    
    $
    32,233,550Adj from Operating Activities:Depreciation and Amortization
    
    $
    5,489,229Other Deferred Income/Expense
    
    
    (799,304
    )(Increase)/Decrease in Assets:Patient Accounts Receivable
    
    
    ($25,964,396
    )Supplies Inventory
    
    
    (463,193
    )Pre-Paid Expenses & Oth Current Assets
    
    
    3,326,089Other Receivables
    
    
    460,148Long-Term Receivables
    
    
    726,669Increase/(Decrease) in Liabilities:Accounts and Notes Payable
    
    
    ($5,667,725
    )Accrued Payroll Costs
    
    
    (7,079,419
    )IBNR
    
    
    (1,071,166
    )Other Accrued Liabilities
    
    
    2,663,118Estimated 3rd Party Settlements
    
    
    3,217,702Net Cash From (For) Operating Activities
    
    $
    7,071,304Cash Flows from Investing Activities:Capital Expenditures
    
    
    ($6,327,459
    )Payments to Acquire Other Assets
    
    
    0Net Cash From (For) Investing Activities
    
    
    ($6,327,459
    )Cash Flows from Financing Activities:Funds Provided (to) from Intercompany
    
    $
    5,571,607Funds Provided (to) from Related Party
    
    
    (10,120,670
    )Borrow (Re-Payment) of Debt
    
    
    (8,604,084
    )Capital Lease Obligations (Re-Payment)
    
    
    1,627,529Parent Contributions / (Distributions)
    
    
    (9,750,001
    )Payments for Acquisition
    
    
    0Net Cash From (For) Financing Activities
    
    
    ($21,275,620
    )Net Change in Cash and Cash Equivalents
    
    
    ($20,531,775
    )Beginning Cash Balance
    
    $
    44,876,687Ending Cash Balance
    
    $
    24,344,912
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