Natividad Medical Center Board of Trustees February 1, 2013 Financial Statements For December 31,

Average Daily Census Total Hospital - Monthly 2

Ave. Daily Census and Length of Stay Total Hospital - Annual 3

Average Daily Census by Unit Medical Surgical, ICU and OB. 4

Average Daily Census by Unit NICU, Pediatrics, Rehab., and Psych. 5

Deliveries Monthly 6

Deliveries – Average Per Month Annual 7

Emergency Room Visits Monthly 8

Emergency Room Visits Average Per Day 9

E.R. Visits – Average Per Month Annual 10

Payor Mix Current and Past Four Years 11

Payor Mix Current and Past Two Years 12

Net Revenues Government and Payors 13

Net Revenues Government and Payor Segment 14

Net Revenues Payor Segment 15

Net Income or Monthly 16

Net Income or Actual and Budget 17

Revenue, Expense, Profit Per APD Annual 18

Revenue, Expense, Profit Per APD Monthly 19

Cash - Patients Monthly 20

Cash – Patients – Average Per Month Annual 21

Month End Cash Balance 22

Patient Accounts Receivable Monthly 23

Days in AR Monthly 24

Days in AR Year to Year Comparison 25

Days Cash on Hand Annual 26

Long Term Debt Ratio 27

Key Points 28 Average Daily Census (ADC) for December is 93.4 or 5.4 higher than the November census of 88.0 ADC. The YTD ADC was (.3) patients lower than budget and (1.0) ADC lower than the prior year. Gross Patient Revenues: ● Total patient revenue of $ 62.7 M for December was ($ 1.0 M) lower than budget. YTD total patient revenue is $ 4.6 M higher than budget and was $.2 M higher than the prior year to date average. Deductions from Revenue: Deductions from revenue were $ 1.0 M lower than budget and Net Patient Revenue was ($.1M) lower than budget. YTD deductions from revenue were ($8.4 M) higher than budget and was ($ 2.9 M) higher than the prior year to date average. Government Funding: Government funding is being accrued at the FY 2013 Budget level and has been adjusted to reflect changes to Year to date funding that is known and is ($ 0.9 M) below budget.

Key Points 29 Salaries, Wages and Benefits YTD has a favorable variance of $.9 M. On dollars per APD, SWB are $ 48 under budget for the current year. Paid FTE’s are or 14.1 FTE’s lower than budget while FTE’s per adjusted occupied bed are 6.7 or.8 lower than budget. Registry has an unfavorable variance YTD of ($ 509 K). RN fees are over budget by ($ 115 K) over in Therapy by ($ 114 K) and over in Temp Staff by ($ 280K) Physician fees/salaries have a favorable variance of $ 127 K. Non-employed physicians ($ 380 K). Payroll Residency Program $ 353 K. Payroll Staff Physicians $ 154 K. Supplies have a favorable variance of $ 844 K. Supplies expense per adjusted patient day are under budget by $ 37 and $ 33 lower than the prior year average per APD. Other Operating Expense has a favorable variance of $ 557 K. Other operating expense per adjusted patient day are under budget by $ 24 and $ 16 lower than the prior year average per APD.

Key Points 30 Utilities and Telephone has a favorable variance of $ 80 K. Utilities & Telephone expense per adjusted patient day are under budget by $ 4 and $ 1 lower than the prior year average per APD. Purchased Services has a favorable variance of $ 1.5 M. Adjusted for volume, purchased services per adjusted patient day are $ 68 favorable to budget year to date and $ 22 lower than the prior year average. Net income year to date is $ 664 K but is ($ 1.10 M) negative variance vs. budget. The current cash balance is $ 53.0 M. at December 31, vs. a budgeted cash balance of $ 50.4 M, yielding a positive variance at 12/31 of $ 2.6 M excluding the $14.2M in the County’s NMC Reserve Fund. Patient account collections were $ 11.5 M. for December up from $ 10.9 in November. The schedule below shows the change in year-end cash forecasted month by month for FY JulyAugSept.Oct.Nov.Dec. $1.1M($0.1M)$2.9 M($3.6M)$.7 M$.5 M