GrayRobinson, P.A. Robie Robinson GrayRobinson, P.A. Robie Robinson Counsel to Adventist Health System ORANGE COUNTY BOARD OF COUNTY COMMISSIONERS TEFRA Approval November 9, 2010 Adventist Health System Tax Exempt Revenue Bonds

TEFRA Approval – Adventist Health System  Adventist Health System  44 acute-care hospitals  Ten states  32,500 full-time employees  4 million patients each year nationally

TEFRA Approval – Adventist Health System  Parent Corporation:  Not-for-profit  “501(c)(3)” under IRS Code  Long-Term Bond Ratings:  Moody’s AA3; S&P AA-; Fitch AA-

TEFRA Approval – Adventist Health System  AHS in Central Florida – Florida Hospital  Eight hospital campuses  12,600 full-time employees (3 rd largest employer)  One-million-plus patients each year  Treats most Medicare patients of any U.S. hospital  Recent capital investment:  $690 million-plus in past three years

TEFRA Approval – Adventist Health System  Proposed issuance of bonds:  Amount: up to $3.488 billion  Purpose:  finance/re-finance buildings and equipment (at 33 hospitals)

TEFRA Approval – Adventist Health System  Public Benefit  Tax-exempt bonds (saves hospital 1.5% per year in interest cost)  Reduces health-care costs

TEFRA Approval – Adventist Health System  Public Cost  None  Payable only from hospital revenues, not public funds  Bondholders have no legal rights to require state, county, or city governments to pay

TEFRA Approval – Adventist Health System  Requested BCC action:  Approval of a TEFRA resolution regarding proposed Orange County Health Facilities Authority Revenue Bonds for Adventist Health System/Sunbelt Obligated Group

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