CPGH, Inc. Quarterly Report December 31, 2011 Prepared for The Kenai Peninsula Borough Assembly and Administration February 28, 2012

Presentation Overview Financial Performance New/Expanded Services Physician Recruitment Leadership Changes New Board Members Other Items

Gross Patient Revenue – FY 2012 (in thousands) 24.6% increase

Net Patient Revenue – FY 2012 (in thousands) 13.2% increase

Lease and Operating Agreement – 6 th Whereas The parties agree that CPGH, Inc. shall endeavor to operate the Medical Facilities on a self-supporting basis;

Net Income – FY 2012 (in thousands) 8.8% Increase

Charity Care & Bad Debt FY – 2012 ( in thousands ) 19.3% increase Community Benefit

Charity Care & Bad Debt FY $7.3 Million uncompensated care provided to community members Financial Assistance Program Brochure available at the following website 20FinancialAssistBrochure lr.pdfhttp:// 20FinancialAssistBrochure lr.pdf

Cash & CDs FY – 2012 (in thousands) 7.6% increase

Transfers to Plant Replacement & Expansion Fund* PREF Account Balance at 12/31/11: $9,497,666 Days Operating Cash on Hand at 12/31/11 – days Transfer to Plant replacement pending: $627,999 Balance after transfer – $10,125,665 * reinvest for facility maintenance, purchase of replacement equipment and development of new services

Lease & Operating Agreement – Section 21(b) Any change in the level or type of services provided shall be included in the next quarterly report regardless of the cost –Spine Program update: 93 Procedures Jul 2011 – Dec 2011

Heather Schramm, MD, PhD PEDIATRICS Arrives August 1, 2012 CURRENT POSITIONS Pediatric Hospitalist Clinical Assistant Professor EDUCATION Vanderbilt Children’s Hospital pediatric residency program University of California at Davis, combined M. D. / Ph. D. program

Quality / Patient Satisfaction CPH Mission: We are a community-initiated and community-nurtured organization dedicated to promoting wellness and providing high quality health care that ensures the confidence and loyalty of our customers. Patient Satisfaction Quality / Patient Safety

Senior Leadership Changes Rick Davis –Chief Executive Officer – 12/15/12 –Chief Operating Officer 8/01/11 – 11/01/11 –Alaska Regional Hospital – 1996 – July 2011 Matt Dammeyer, Ph.D. –Chief Operating Officer – 2/13/12 –Working at CPH as a Psychologist in the Behavioral Health Department since June 11 –Assistant Administrator 4/01/08 – 6/30/11

New CPGH, Inc. Board Members Irv Carlisle Pete Sprague Craig Humphreys, MD

Other Items 2012 Strategic Plan 990 to be filed on Mar. 1, 2012 Coker Group Rural Health Care Leadership Conference