1. 1

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 2

3. Executive Summary – Overview
Healthcare Management Partners (HMP) is a hospital and healthcare services management firm. For decades, all of its senior
executives have been building and operating thriving healthcare organizations, including CEO, COO and CFO assignments
across the spectrum of healthcare services providers. This knowledge base gives HMP a unique perspective on what tools are
necessary to handle the issues facing any healthcare provider organization, and is what prompted HMP to create HMP
MetricsTM. Our executives understand the value of being able to measure hospital performance relative to comparable
facilities 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 study
comparing performance within six hospital peer groups. We can easily create custom peer groups and metrics. These groups
selected include the following:
1. All General Acute Care Hospitals Regardless of Ownership or Sponsorship
2. All Investor Owned General Acute Care Hospitals
3. All Not-For-Profit General Acute Care Hospitals, including Institutions Sponsored by Religious Organizations
4. All State and Local Government Owned General Acute Care Hospitals
5. Free Standing Children’s Hospitals
6. All Non-Federal Major Teaching Hospitals
Using proprietary filters, data contained in the HMP Metrics database has been “scrubbed” to exclude partial period or
statistically 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 licensed
beds are comprised of sub-acute beds. This data validation process produces highly accurate and defensible peer group
comparisons for dozens of standard industry metrics.
This report measures several commonly used metrics to further stratify these hospital types into quartiles in order to illustrate
the benchmarks for poor to exceptional performance for each of the metrics. With this information, one can quickly assess the
relative financial well-being of any facility in any of these groups. HMP can easily create custom reports and mix or create
new peer groups and compare them to state, local or national benchmarks.
October 2010 3

4. Executive Summary – Key Terms
Quartile Rankings: Quartile rankings were assigned based on the mean values calculated for all investor owned
general acute care hospitals within the peer groups.
Total Profit Margin
All Investor Owned General Acute Care Hospitals in the United States Regardless of Bed Size
2009
Quartile Rank
Mean Median Count
1st Quartile 19.14% 18.86% 148
2nd Quartile 10.53% 10.84% 150
3rd Quartile 4.37% 4.15% 153
4th Quartile (4.50%) (3.63%) 155
Total Population 7.23% 7.48% 606
Excluded Cost Reports 94
Total Cost Reports 700
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.
October 2010 4

5. Executive Summary – Hospital Performance Metrics
A measure of overall hospital profitability presented as a percentage. A negative percentage
Total Profit Margin
indicates an overall loss, while a positive percentage indicates profitability.
A measure of operating profitability presented as a percentage. A negative percentage
Total Operating Profit Margin
indicates overall loss, while a positive percentage indicates profitability.
A measure of labor productivity. This metric divides labor costs by operating revenues. A
Total Labor Cost as a Percentage of
higher percentage compared to its peers indicates that a hospital uses more labor to produce its
Total Operating Revenues
revenue.
Measures the number of full-time equivalent (FTE) employees used for each occupied bed.
Full-Time Equivalent (FTE) Staff per
Similar to the previous ratio, a higher percentage compared to its peers indicates that a hospital
Adjusted Occupied Bed (AOB)
uses more labor to treat its patients.
Measures the number of days it typically takes to collect accounts receivable. A higher
Average Days Net Patient Revenue in
percentage compared to its peers indicates that the hospital's revenue cycle is not as efficient as
Accounts Receivable (AR)
its peers.
Measures the average age of the hospital including capital improvements and major equipment
Average Age of Plant 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.
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.
October 2010 5

6. Total Profit Margin - Summary
Total Profit Margin
All Investor Owned General Acute Care Hospitals in the United States Ranked by Number of Licensed Beds
2009 2008 2007
Number of Licensed Beds
Mean Median Count Mean Median Count Mean Median Count
25 Beds or Less 6.17% 5.52% 75 5.93% 7.16% 89 5.79% 8.16% 89
26 to 100 Beds 5.39% 5.08% 166 5.38% 6.28% 187 6.08% 5.50% 196
101 to 200 Beds 7.54% 7.59% 197 6.00% 6.07% 221 6.27% 6.26% 226
201 to 300 Beds 9.90% 10.98% 86 7.65% 8.41% 89 8.39% 8.84% 92
301 to 400 Beds 8.29% 8.95% 43 6.97% 7.10% 47 7.16% 8.39% 49
401 to 500 Beds 7.61% 6.98% 21 6.48% 4.88% 24 7.85% 8.74% 23
Over 500 Beds 9.59% 9.36% 18 8.52% 8.05% 18 9.80% 8.99% 18
Total All Hospitals 7.23% 7.48% 606 6.19% 6.71% 675 6.64% 7.06% 693
Excluded Cost Reports 94 89 100
Total Cost Reports 700 764 793
2006 2005 2004
Number of Licensed Beds
Mean Median Count Mean Median Count Mean Median Count
25 Beds or Less 4.76% 3.80% 92 5.62% 4.56% 69 4.98% 5.75% 57
26 to 100 Beds 6.50% 6.10% 195 6.52% 6.70% 193 4.87% 5.23% 199
101 to 200 Beds 5.67% 5.61% 218 5.81% 6.27% 215 5.55% 6.21% 216
201 to 300 Beds 8.71% 9.20% 96 8.05% 8.35% 92 7.52% 7.30% 98
301 to 400 Beds 7.85% 6.52% 46 5.96% 6.47% 48 7.88% 8.17% 50
401 to 500 Beds 4.16% 6.48% 23 6.00% 5.59% 21 6.87% 7.58% 24
Over 500 Beds 8.56% 8.91% 20 10.03% 7.16% 20 9.64% 9.39% 19
Total All Hospitals 6.39% 6.48% 690 6.46% 6.63% 658 5.93% 6.16% 663
Excluded Cost Reports 107 106 87
Total Cost Reports 797 764 750
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 6

7. Peer Group Comparison – Total Profit Margin
Total Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with 25 Licensed Beds or Less
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 20.40% 20.53% 18 20.28% 19.39% 22 19.42% 19.31% 22
2nd Quartile 10.13% 9.73% 19 11.46% 11.66% 22 10.48% 9.93% 22
3rd Quartile 2.41% 2.31% 19 2.39% 2.48% 22 3.70% 4.22% 22
4th Quartile (7.53%) (6.49%) 19 (9.71%) (9.71%) 23 (9.73%) (9.63%) 23
Total Population 6.17% 5.52% 75 5.93% 7.16% 89 5.79% 8.16% 89
Excluded Cost Reports 21 29 33
Total Cost Reports 96 118 122
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 20.37% 20.09% 23 21.69% 21.72% 17 19.89% 19.48% 14
2nd Quartile 9.39% 9.05% 23 10.33% 11.41% 17 9.73% 9.03% 14
3rd Quartile 0.32% 0.26% 23 1.26% 1.99% 17 0.88% 0.10% 14
4th Quartile (11.05%) (9.87%) 23 (9.88%) (9.33%) 18 (9.55%) (9.28%) 15
Total Population 4.76% 3.80% 92 5.62% 4.56% 69 4.98% 5.75% 57
Excluded Cost Reports 35 25 23
Total Cost Reports 127 94 80
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

8. Peer Group Comparison – Total Profit Margin
Total Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with Between 26 and 100 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 19.60% 18.98% 41 19.56% 19.39% 46 19.49% 19.09% 49
2nd Quartile 9.06% 8.32% 41 9.74% 9.79% 47 9.67% 10.11% 49
3rd Quartile 1.62% 1.26% 42 2.22% 2.27% 47 2.60% 2.49% 49
4th Quartile (8.27%) (7.64%) 42 (9.68%) (8.87%) 47 (7.46%) (6.22%) 49
Total Population 5.39% 5.08% 166 5.38% 6.28% 187 6.08% 5.50% 196
Excluded Cost Reports 34 33 34
Total Cost Reports 200 220 230
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 20.73% 20.82% 48 19.19% 18.75% 48 19.18% 18.55% 49
2nd Quartile 11.14% 11.40% 49 10.51% 10.46% 48 8.86% 9.19% 50
3rd Quartile 2.68% 2.68% 49 3.75% 4.15% 48 1.21% 0.95% 50
4th Quartile (8.25%) (7.17%) 49 (7.08%) (5.26%) 49 (9.49%) (9.55%) 50
Total Population 6.50% 6.10% 195 6.52% 6.70% 193 4.87% 5.23% 199
Excluded Cost Reports 34 36 28
Total Cost Reports 229 229 227
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

9. Peer Group Comparison – Total Profit Margin
Total Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with Between 101 and 200 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 18.75% 18.90% 49 17.96% 17.41% 55 18.11% 17.48% 56
2nd Quartile 10.58% 10.50% 49 9.44% 9.74% 55 9.52% 9.42% 56
3rd Quartile 4.42% 4.24% 49 2.88% 3.09% 55 3.14% 3.07% 57
4th Quartile (3.38%) (2.43%) 50 (6.07%) (5.10%) 56 (5.45%) (3.76%) 57
Total Population 7.54% 7.59% 197 6.00% 6.07% 221 6.27% 6.26% 226
Excluded Cost Reports 25 16 23
Total Cost Reports 222 237 249
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 17.58% 17.32% 54 17.53% 17.42% 53 17.95% 16.71% 54
2nd Quartile 9.35% 9.45% 54 9.37% 9.17% 54 9.13% 9.19% 54
3rd Quartile 2.51% 2.33% 55 3.43% 3.59% 54 2.97% 3.17% 54
4th Quartile (6.47%) (5.79%) 55 (6.89%) (5.44%) 54 (7.84%) (6.94%) 54
Total Population 5.67% 5.61% 218 5.81% 6.27% 215 5.55% 6.21% 216
Excluded Cost Reports 30 34 27
Total Cost Reports 248 249 243
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

10. Peer Group Comparison – Total Profit Margin
Total Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with Between 201 and 300 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 18.89% 17.62% 21 16.84% 16.09% 22 17.97% 17.33% 23
2nd Quartile 12.72% 12.34% 21 10.51% 10.49% 22 11.32% 11.34% 23
3rd Quartile 8.85% 8.77% 22 6.17% 6.40% 22 6.40% 6.25% 23
4th Quartile (0.34%) 3.19% 22 (2.47%) (0.63%) 23 (2.15%) (0.75%) 23
Total Population 9.90% 10.98% 86 7.65% 8.41% 89 8.39% 8.84% 92
Excluded Cost Reports 9 9 8
Total Cost Reports 95 98 100
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 19.05% 18.01% 24 18.78% 18.66% 23 19.07% 19.56% 24
2nd Quartile 11.86% 11.69% 24 10.86% 10.55% 23 10.33% 10.19% 24
3rd Quartile 6.52% 6.79% 24 5.52% 5.03% 23 4.56% 4.47% 25
4th Quartile (2.58%) (0.00%) 24 (2.98%) (0.42%) 23 (3.31%) (2.77%) 25
Total Population 8.71% 9.20% 96 8.05% 8.35% 92 7.52% 7.30% 98
Excluded Cost Reports 5 8 4
Total Cost Reports 101 100 102
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

11. Peer Group Comparison – Total Profit Margin
Total Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with Between 301 and 400 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 18.00% 18.06% 10 18.17% 18.27% 11 18.16% 18.13% 12
2nd Quartile 11.39% 10.83% 11 9.76% 9.52% 12 10.97% 10.61% 12
3rd Quartile 7.14% 7.04% 11 4.07% 4.09% 12 4.91% 5.02% 12
4th Quartile (2.48%) (1.89%) 11 (3.21%) (3.22%) 12 (4.42%) (3.72%) 13
Total Population 8.29% 8.95% 43 6.97% 7.10% 47 7.16% 8.39% 49
Excluded Cost Reports 3 2 1
Total Cost Reports 46 49 50
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 19.21% 18.69% 11 18.52% 17.76% 12 19.91% 18.58% 12
2nd Quartile 10.38% 10.05% 11 10.21% 10.23% 12 11.00% 10.32% 12
3rd Quartile 5.05% 5.30% 12 3.19% 3.01% 12 5.37% 5.11% 13
4th Quartile (2.06%) (1.63%) 12 (8.06%) (5.65%) 12 (3.58%) (2.43%) 13
Total Population 7.85% 6.52% 46 5.96% 6.47% 48 7.88% 8.17% 50
Excluded Cost Reports 2 2 4
Total Cost Reports 48 50 54
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

12. Peer Group Comparison – Total Profit Margin
Total Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with Between 401 and 500 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 16.77% 14.17% 5 16.44% 16.28% 6 18.55% 18.44% 5
2nd Quartile 9.53% 9.36% 5 7.33% 7.77% 6 10.16% 9.85% 6
3rd Quartile 5.33% 6.33% 5 2.79% 2.23% 6 6.47% 7.21% 6
4th Quartile 0.28% 1.17% 6 (0.63%) (0.35%) 6 (1.97%) (1.29%) 6
Total Population 7.61% 6.98% 21 6.48% 4.88% 24 7.85% 8.74% 23
Excluded Cost Reports 2 0 1
Total Cost Reports 23 24 24
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 16.34% 16.22% 5 15.29% 14.17% 5 18.97% 17.64% 6
2nd Quartile 9.48% 9.03% 6 10.58% 11.34% 5 10.53% 10.66% 6
3rd Quartile 2.57% 2.59% 6 2.73% 2.58% 5 3.55% 3.29% 6
4th Quartile (9.71%) (9.63%) 6 (2.84%) (1.33%) 6 (5.58%) (4.02%) 6
Total Population 4.16% 6.48% 23 6.00% 5.59% 21 6.87% 7.58% 24
Excluded Cost Reports 1 1 0
Total Cost Reports 24 22 24
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

13. Peer Group Comparison – Total Profit Margin
Total Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with Over 500 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 20.75% 20.88% 4 20.60% 20.10% 4 19.43% 19.55% 4
2nd Quartile 14.12% 14.09% 4 12.43% 12.18% 4 12.30% 12.26% 4
3rd Quartile 7.58% 6.83% 5 6.47% 6.74% 5 8.12% 8.87% 5
4th Quartile (0.94%) (1.64%) 5 (2.21%) (2.07%) 5 1.80% 2.09% 5
Total Population 9.59% 9.36% 18 8.52% 8.05% 18 9.80% 8.99% 18
Excluded Cost Reports 0 0 0
Total Cost Reports 18 18 18
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 17.56% 16.91% 5 21.03% 22.05% 5 16.98% 16.00% 4
2nd Quartile 10.53% 10.49% 5 11.28% 11.46% 5 11.38% 10.77% 5
3rd Quartile 7.26% 7.79% 5 6.07% 5.72% 5 7.62% 8.24% 5
4th Quartile (1.11%) (0.58%) 5 1.76% 2.51% 5 4.06% 4.06% 5
Total Population 8.56% 8.91% 20 10.03% 7.16% 20 9.64% 9.39% 19
Excluded Cost Reports 0 0 1
Total Cost Reports 20 20 20
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

14. Peer Group Comparison – Total Profit Margin
Total Profit Margin
All Investor Owned General Acute Care Hospitals in the United States Regardless of Bed Size
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 19.14% 18.86% 148 18.59% 18.38% 166 18.70% 18.21% 171
2nd Quartile 10.53% 10.84% 150 9.95% 10.11% 168 10.11% 10.29% 172
3rd Quartile 4.37% 4.15% 153 3.25% 3.14% 169 3.87% 3.85% 174
4th Quartile (4.50%) (3.63%) 155 (6.56%) (6.31%) 172 (5.74%) (4.72%) 176
Total Population 7.23% 7.48% 606 6.19% 6.71% 675 6.64% 7.06% 693
Excluded Cost Reports 94 89 100
Total Cost Reports 700 764 793
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 19.12% 18.57% 170 18.74% 18.56% 163 18.81% 17.89% 163
2nd Quartile 10.32% 10.57% 172 10.17% 10.28% 164 9.53% 9.66% 165
3rd Quartile 3.14% 3.16% 174 3.64% 3.99% 164 2.85% 3.08% 167
4th Quartile (6.70%) (6.20%) 174 (6.41%) (5.17%) 167 (7.04%) (6.36%) 168
Total Population 6.39% 6.48% 690 6.46% 6.63% 658 5.93% 6.16% 663
Excluded Cost Reports 107 106 87
Total Cost Reports 797 764 750
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

15. Total Operating Profit Margin - Summary
Total Operating Profit Margin
All Investor Owned General Acute Care Hospitals in the United States Ranked by Number of Licensed Beds
2009 2008 2007
Number of Licensed Beds
Mean Median Count Mean Median Count Mean Median Count
25 Beds or Less 3.21% 2.36% 76 3.64% 3.19% 85 2.27% 4.65% 94
26 to 100 Beds 5.46% 4.61% 166 5.10% 5.69% 187 5.03% 5.05% 199
101 to 200 Beds 6.59% 6.55% 196 6.01% 6.25% 210 4.98% 5.70% 217
201 to 300 Beds 8.51% 9.65% 85 7.33% 8.32% 87 7.54% 9.38% 86
301 to 400 Beds 7.77% 8.46% 42 6.38% 6.06% 46 6.88% 8.20% 48
401 to 500 Beds 6.38% 5.50% 21 6.37% 5.66% 24 6.29% 6.29% 24
Over 500 Beds 8.55% 8.84% 18 6.58% 6.61% 17 6.64% 7.89% 17
Total All Hospitals 6.26% 6.52% 604 5.67% 6.18% 656 5.16% 5.76% 685
Excluded Cost Reports 96 108 108
Total Cost Reports 700 764 793
2006 2005 2004
Number of Licensed Beds
Mean Median Count Mean Median Count Mean Median Count
25 Beds or Less 1.23% 0.89% 94 0.45% 0.46% 74 1.14% (1.71%) 58
26 to 100 Beds 5.14% 6.15% 201 5.35% 6.55% 200 3.62% 4.26% 197
101 to 200 Beds 4.42% 4.99% 216 4.59% 4.91% 208 4.66% 5.56% 216
201 to 300 Beds 7.90% 9.65% 90 7.15% 7.50% 90 6.51% 6.31% 94
301 to 400 Beds 6.48% 5.46% 45 5.69% 5.91% 49 5.73% 8.62% 53
401 to 500 Beds 4.88% 4.31% 23 4.10% 4.21% 19 4.42% 5.34% 22
Over 500 Beds 6.69% 7.59% 20 7.42% 4.97% 20 6.42% 7.96% 18
Total All Hospitals 4.87% 5.82% 689 4.86% 5.22% 660 4.43% 5.21% 658
Excluded Cost Reports 108 104 92
Total Cost Reports 797 764 750
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

16. Peer Group Comparison – Total Operating Profit Margin
Total Operating Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with 25 Licensed Beds or Less
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 20.04% 20.39% 19 20.25% 19.38% 21 19.57% 18.97% 23
2nd Quartile 8.57% 8.94% 19 9.69% 10.02% 21 9.53% 9.92% 23
3rd Quartile (1.36%) (0.53%) 19 0.21% 0.27% 21 (1.64%) (1.13%) 24
4th Quartile (14.41%) (13.46%) 19 (14.72%) (15.96%) 22 (17.35%) (17.54%) 24
Total Population 3.21% 2.36% 76 3.64% 3.19% 85 2.27% 4.65% 94
Excluded Cost Reports 20 33 28
Total Cost Reports 96 118 122
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 19.01% 19.02% 23 19.46% 19.29% 18 18.72% 17.35% 14
2nd Quartile 7.41% 7.03% 23 7.04% 7.40% 18 7.06% 5.69% 14
3rd Quartile (3.89%) (3.09%) 24 (4.49%) (3.38%) 19 (4.52%) (5.03%) 15
4th Quartile (16.62%) (16.99%) 24 (18.86%) (20.35%) 19 (15.11%) (12.75%) 15
Total Population 1.23% 0.89% 94 0.45% 0.46% 74 1.14% (1.71%) 58
Excluded Cost Reports 33 20 22
Total Cost Reports 127 94 80
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

17. Peer Group Comparison – Total Operating Profit Margin
Total Operating Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with Between 26 and 100 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 20.44% 20.61% 41 20.28% 20.86% 46 19.18% 18.48% 49
2nd Quartile 10.05% 9.47% 41 9.91% 9.85% 47 9.89% 10.13% 50
3rd Quartile 0.86% 0.53% 42 2.01% 2.42% 47 1.69% 1.95% 50
4th Quartile (9.04%) (8.35%) 42 (11.49%) (10.15%) 47 (10.36%) (8.44%) 50
Total Population 5.46% 4.61% 166 5.10% 5.69% 187 5.03% 5.05% 199
Excluded Cost Reports 34 33 31
Total Cost Reports 200 220 230
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 20.78% 20.69% 50 18.88% 18.54% 50 18.21% 16.97% 49
2nd Quartile 10.95% 11.03% 50 10.58% 10.22% 50 8.40% 8.73% 49
3rd Quartile 1.68% 2.37% 50 2.46% 2.63% 50 (0.00%) (0.31%) 49
4th Quartile (12.49%) (12.04%) 51 (10.51%) (8.96%) 50 (11.83%) (11.68%) 50
Total Population 5.14% 6.15% 201 5.35% 6.55% 200 3.62% 4.26% 197
Excluded Cost Reports 28 29 30
Total Cost Reports 229 229 227
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

18. Peer Group Comparison – Total Operating Profit Margin
Total Operating Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with Between 101 and 200 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 20.26% 20.33% 49 18.76% 18.29% 52 18.59% 17.98% 54
2nd Quartile 10.44% 11.01% 49 10.04% 10.07% 52 9.18% 9.40% 54
3rd Quartile 3.33% 3.28% 49 2.46% 2.20% 53 1.50% 1.27% 54
4th Quartile (7.67%) (5.95%) 49 (6.89%) (5.58%) 53 (9.10%) (7.33%) 55
Total Population 6.59% 6.55% 196 6.01% 6.25% 210 4.98% 5.70% 217
Excluded Cost Reports 26 27 32
Total Cost Reports 222 237 249
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 18.63% 18.50% 54 18.63% 18.36% 52 18.78% 18.60% 54
2nd Quartile 9.37% 9.28% 54 8.47% 8.52% 52 9.14% 8.90% 54
3rd Quartile 0.22% (0.29%) 54 1.21% 0.98% 52 1.52% 1.94% 54
4th Quartile (10.53%) (8.34%) 54 (9.96%) (9.12%) 52 (10.79%) (9.46%) 54
Total Population 4.42% 4.99% 216 4.59% 4.91% 208 4.66% 5.56% 216
Excluded Cost Reports 32 41 27
Total Cost Reports 248 249 243
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

19. Peer Group Comparison – Total Operating Profit Margin
Total Operating Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with Between 201 and 300 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 19.33% 19.96% 21 18.88% 19.93% 21 19.05% 17.59% 21
2nd Quartile 12.14% 11.25% 21 10.97% 11.01% 22 11.82% 11.80% 21
3rd Quartile 7.05% 6.50% 21 5.34% 5.22% 22 5.27% 5.15% 22
4th Quartile (3.87%) (0.79%) 22 (5.33%) (4.48%) 22 (5.27%) (3.95%) 22
Total Population 8.51% 9.65% 85 7.33% 8.32% 87 7.54% 9.38% 86
Excluded Cost Reports 10 11 14
Total Cost Reports 95 98 100
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 20.33% 20.38% 22 20.11% 19.02% 22 19.40% 19.43% 23
2nd Quartile 12.72% 12.78% 22 10.80% 10.77% 22 10.93% 11.16% 23
3rd Quartile 5.71% 5.74% 23 4.02% 3.75% 23 2.97% 2.53% 24
4th Quartile (6.40%) (2.89%) 23 (5.62%) (3.14%) 23 (6.55%) (4.71%) 24
Total Population 7.90% 9.65% 90 7.15% 7.50% 90 6.51% 6.31% 94
Excluded Cost Reports 11 10 8
Total Cost Reports 101 100 102
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

20. Peer Group Comparison – Total Operating Profit Margin
Total Operating Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with Between 301 and 400 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 18.63% 17.94% 10 19.17% 17.90% 11 18.40% 18.47% 12
2nd Quartile 12.07% 13.05% 10 9.60% 9.36% 11 10.45% 10.24% 12
3rd Quartile 6.16% 6.28% 11 3.83% 4.69% 12 4.44% 3.90% 12
4th Quartile (4.41%) (4.28%) 11 (5.74%) (4.58%) 12 (5.74%) (5.58%) 12
Total Population 7.77% 8.46% 42 6.38% 6.06% 46 6.88% 8.20% 48
Excluded Cost Reports 4 3 2
Total Cost Reports 46 49 50
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 19.23% 19.22% 11 19.84% 19.98% 12 19.04% 19.44% 13
2nd Quartile 10.11% 10.68% 11 11.04% 10.11% 12 10.64% 10.09% 13
3rd Quartile 3.57% 3.98% 11 1.98% 2.22% 12 3.87% 3.30% 13
4th Quartile (5.85%) (4.55%) 12 (8.88%) (5.80%) 13 (9.47%) (6.70%) 14
Total Population 6.48% 5.46% 45 5.69% 5.91% 49 5.73% 8.62% 53
Excluded Cost Reports 3 1 1
Total Cost Reports 48 50 54
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

21. Peer Group Comparison – Total Operating Profit Margin
Total Operating Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with Between 401 and 500 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 19.01% 22.28% 5 18.29% 18.57% 6 20.63% 19.76% 6
2nd Quartile 8.98% 9.47% 5 8.24% 7.26% 6 9.41% 8.27% 6
3rd Quartile 2.81% 2.35% 5 3.06% 4.31% 6 1.25% 0.56% 6
4th Quartile (3.34%) (2.36%) 6 (4.11%) (3.58%) 6 (6.14%) (3.88%) 6
Total Population 6.38% 5.50% 21 6.37% 5.66% 24 6.29% 6.29% 24
Excluded Cost Reports 2 0 0
Total Cost Reports 23 24 24
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 20.26% 19.52% 5 17.66% 16.31% 4 17.67% 17.14% 5
2nd Quartile 9.92% 9.18% 6 8.65% 10.28% 5 9.14% 9.43% 5
3rd Quartile 1.21% 1.55% 6 0.13% (0.38%) 5 1.92% 2.07% 6
4th Quartile (9.31%) (8.28%) 6 (7.33%) (7.05%) 5 (8.06%) (6.69%) 6
Total Population 4.88% 4.31% 23 4.10% 4.21% 19 4.42% 5.34% 22
Excluded Cost Reports 1 3 2
Total Cost Reports 24 22 24
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

22. Peer Group Comparison – Total Operating Profit Margin
Total Operating Profit Margin
All Investor Owned General Acute Care Hospitals in the United States with Over 500 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 21.36% 20.61% 4 18.49% 18.70% 4 17.85% 17.27% 4
2nd Quartile 13.72% 13.70% 4 10.12% 10.51% 4 10.83% 10.78% 4
3rd Quartile 6.08% 6.32% 5 4.33% 5.40% 4 3.32% 2.41% 4
4th Quartile (3.35%) (2.96%) 5 (4.00%) (5.07%) 5 (3.01%) (3.53%) 5
Total Population 8.55% 8.84% 18 6.58% 6.61% 17 6.64% 7.89% 17
Excluded Cost Reports 0 1 1
Total Cost Reports 18 18 18
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 18.33% 16.43% 5 20.81% 21.23% 5 14.12% 14.10% 4
2nd Quartile 10.53% 9.26% 5 10.98% 10.90% 5 10.06% 10.13% 4
3rd Quartile 2.72% 0.36% 5 1.71% 1.13% 5 6.17% 7.50% 5
4th Quartile (4.82%) (3.07%) 5 (3.81%) (2.77%) 5 (2.42%) (0.92%) 5
Total Population 6.69% 7.59% 20 7.42% 4.97% 20 6.42% 7.96% 18
Excluded Cost Reports 0 0 2
Total Cost Reports 20 20 20
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

23. Peer Group Comparison – Total Operating Profit Margin
Total Operating Profit Margin
All Investor Owned General Acute Care Hospitals in the United States Regardless of Bed Size
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 20.03% 20.12% 149 19.41% 19.38% 161 18.99% 18.47% 169
2nd Quartile 10.48% 10.51% 149 9.99% 10.06% 163 9.90% 9.93% 170
3rd Quartile 2.85% 2.98% 152 2.60% 2.67% 165 1.84% 2.02% 172
4th Quartile (7.79%) (6.44%) 154 (8.74%) (7.47%) 167 (9.60%) (8.04%) 174
Total Population 6.26% 6.52% 604 5.67% 6.18% 656 5.16% 5.76% 685
Excluded Cost Reports 96 108 108
Total Cost Reports 700 764 793
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 19.61% 19.54% 170 19.13% 18.78% 163 18.56% 17.76% 162
2nd Quartile 10.10% 10.35% 171 9.54% 9.78% 164 9.13% 9.49% 162
3rd Quartile 1.12% 1.22% 173 1.36% 1.44% 166 1.07% 1.54% 166
4th Quartile (10.87%) (9.50%) 175 (10.19%) (8.83%) 167 (10.42%) (9.27%) 168
Total Population 4.87% 5.82% 689 4.86% 5.22% 660 4.43% 5.21% 658
Excluded Cost Reports 108 104 92
Total Cost Reports 797 764 750
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

24. Total Labor Cost as a Percentage of Total Operating Revenues - Summary
Total Labor Cost as a Percentage of Total Operating Revenues
All Investor Owned General Acute Care Hospitals in the United States Ranked by Number of Licensed Beds
2009 2008 2007
Number of Licensed Beds
Mean Median Count Mean Median Count Mean Median Count
25 Beds or Less 42.84% 40.62% 61 43.59% 40.46% 71 44.48% 43.43% 69
26 to 100 Beds 42.90% 40.77% 170 44.35% 42.50% 186 43.58% 43.19% 197
101 to 200 Beds 42.98% 41.94% 207 43.92% 42.54% 224 44.79% 44.16% 239
201 to 300 Beds 41.55% 40.13% 91 42.64% 41.13% 96 43.00% 41.72% 97
301 to 400 Beds 44.24% 43.69% 45 44.72% 45.15% 49 44.29% 44.25% 50
401 to 500 Beds 46.17% 44.86% 22 45.87% 45.51% 24 46.40% 45.08% 24
Over 500 Beds 42.66% 41.55% 18 44.51% 43.71% 18 44.24% 43.32% 18
Total All Hospitals 42.93% 41.49% 614 43.97% 42.45% 668 44.17% 43.56% 694
Excluded Cost Reports 86 96 99
Total Cost Reports 700 764 793
2006 2005 2004
Number of Licensed Beds
Mean Median Count Mean Median Count Mean Median Count
25 Beds or Less 44.99% 43.57% 79 44.79% 42.61% 62 48.59% 48.40% 51
26 to 100 Beds 43.55% 42.35% 191 44.58% 43.27% 200 44.89% 43.99% 201
101 to 200 Beds 45.39% 44.09% 234 45.44% 44.44% 239 45.45% 44.16% 233
201 to 300 Beds 42.90% 41.46% 98 43.81% 42.31% 98 44.12% 42.39% 100
301 to 400 Beds 44.53% 44.73% 48 45.32% 44.68% 50 44.52% 44.03% 52
401 to 500 Beds 46.14% 43.95% 24 45.71% 45.71% 22 46.29% 46.06% 24
Over 500 Beds 44.36% 42.57% 20 43.56% 42.36% 20 44.30% 43.43% 19
Total All Hospitals 44.42% 42.83% 694 44.85% 43.55% 691 45.25% 43.92% 680
Excluded Cost Reports 103 73 70
Total Cost Reports 797 764 750
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

25. Peer Group Comparison – Total Labor Cost as a Percent of Total Op. Rev.
Total Labor Cost as a Percentage of Total Operating Revenues
All Investor Owned General Acute Care Hospitals in the United States with 25 Licensed Beds or Less
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 32.04% 32.42% 15 31.61% 31.62% 17 31.67% 31.84% 17
2nd Quartile 36.44% 36.21% 15 36.56% 36.19% 18 38.40% 38.15% 17
3rd Quartile 45.63% 46.09% 15 46.84% 48.48% 18 47.34% 48.25% 17
4th Quartile 56.35% 53.92% 16 58.69% 57.30% 18 59.62% 58.07% 18
Total Population 42.84% 40.62% 61 43.59% 40.46% 71 44.48% 43.43% 69
Excluded Cost Reports 35 47 53
Total Cost Reports 96 118 122
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 31.89% 32.07% 19 31.16% 31.17% 15 34.14% 34.32% 12
2nd Quartile 39.01% 39.35% 20 37.77% 37.65% 15 40.21% 39.23% 13
3rd Quartile 48.31% 48.33% 20 48.63% 49.79% 16 53.99% 56.28% 13
4th Quartile 60.12% 58.73% 20 60.31% 61.29% 16 64.89% 64.29% 13
Total Population 44.99% 43.57% 79 44.79% 42.61% 62 48.59% 48.40% 51
Excluded Cost Reports 48 32 29
Total Cost Reports 127 94 80
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

26. Peer Group Comparison – Total Labor Cost as a Percent of Total Op. Rev.
Total Labor Cost as a Percentage of Total Operating Revenues
All Investor Owned General Acute Care Hospitals in the United States with Between 26 and 100 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 33.61% 33.93% 42 33.81% 34.29% 46 33.77% 34.27% 49
2nd Quartile 38.70% 39.05% 42 39.98% 39.76% 46 39.62% 39.72% 49
3rd Quartile 44.01% 43.60% 43 45.64% 45.52% 47 45.67% 45.35% 49
4th Quartile 54.98% 53.17% 43 57.65% 56.33% 47 55.01% 54.82% 50
Total Population 42.90% 40.77% 170 44.35% 42.50% 186 43.58% 43.19% 197
Excluded Cost Reports 30 34 33
Total Cost Reports 200 220 230
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 33.59% 33.67% 47 34.00% 34.28% 50 34.41% 35.02% 50
2nd Quartile 39.27% 39.20% 48 40.28% 40.24% 50 40.71% 40.99% 50
3rd Quartile 45.36% 45.40% 48 46.60% 46.78% 50 47.36% 47.18% 50
4th Quartile 55.78% 54.42% 48 57.44% 56.48% 50 56.84% 55.55% 51
Total Population 43.55% 42.35% 191 44.58% 43.27% 200 44.89% 43.99% 201
Excluded Cost Reports 38 29 26
Total Cost Reports 229 229 227
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

27. Peer Group Comparison – Total Labor Cost as a Percent of Total Op. Rev.
Total Labor Cost as a Percentage of Total Operating Revenues
All Investor Owned General Acute Care Hospitals in the United States with Between 101 and 200 Licensed Beds
2009 2008 2007
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 34.21% 34.38% 51 34.54% 34.67% 56 34.77% 35.11% 59
2nd Quartile 39.72% 39.80% 52 40.43% 40.54% 56 40.97% 40.96% 60
3rd Quartile 44.04% 43.89% 52 45.47% 45.76% 56 46.92% 46.42% 60
4th Quartile 53.78% 52.99% 52 55.25% 53.90% 56 56.34% 55.19% 60
Total Population 42.98% 41.94% 207 43.92% 42.54% 224 44.79% 44.16% 239
Excluded Cost Reports 15 13 10
Total Cost Reports 222 237 249
2006 2005 2004
Quartile Rank
Mean Median Count Mean Median Count Mean Median Count
1st Quartile 34.78% 35.29% 58 35.11% 35.48% 59 35.84% 36.52% 58
2nd Quartile 41.05% 40.80% 58 41.00% 41.22% 60 41.86% 42.27% 58
3rd Quartile 47.27% 47.21% 59 47.47% 47.42% 60 47.03% 47.00% 58
4th Quartile 58.21% 57.35% 59 58.03% 56.32% 60 56.86% 55.62% 59
Total Population 45.39% 44.09% 234 45.44% 44.44% 239 45.45% 44.16% 233
Excluded Cost Reports 14 10 10
Total Cost Reports 248 249 243
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