Hospital for Healthy Living (HHL) Consolidated Statements of Financial Position (In Thousands) 2019 Assets Current assets: Cash and cash equivalents Short-term investments Accounts receivable: Patient care, less allowance for uncollectibles (2019 -$31,085; 2018 -$39,048) Inventory Other-net Other current assets Assets limited as to use -current portion Total current assets Assets limited as to use: Donor restricted Investments held by captive insurance companies Deferred employee compensation plan assets Less assets limited as to use -current portion Assets limited as to use -noncurrent Property, buildings and equipment -net Investments in real estate -net Other noncurrent assets Total assets $41,443 70,779 56,811 6,132 6,416 181,581 12,439 1,276 195,296 6,587 47,099 5,396 59,082 -1,276 57,806 186,481 2,518 2,470 $444,571 Liabilities and net assets Current liabilities: Current portion of long-term debt Accounts payable and accrued expenses Accrued salaries and related liabilities Due to affiliates, net Professional insurance liabilities -current Other current liabilities Total current liabilities $2,804 32,189 31,590 1,927 6,738 15,534 90,782 Long-term debt, less current portion Accrued pension liability Deferred employee compensation plan liabilities 51,250 29,183 5,396 Professional insurance liabilities -noncurrent Other noncurrent liabilities Total liabilities Net assets: Without donor restrictions With donor restrictions Total net assets Total liabilities and net assets Revenue, gains and other support Net patient service revenue Other revenue Net assets released from restrictions Total revenue, gains and other support Operating expenses Salaries and wages Employee benefits Supplies and other expenses Interest and amortization of deferred financing fees Depreciation and amortization Total operating expenses Gain(loss) from operations Profession liability insurance program premium revision Excess (deficiency) of revenue over expenses 117,686 55,462 349,759 86,109 8,703 94,812 $444,571 Consolidated Statements of Operations 2019 541,301 36,656 1,562 579,519 226,400 59,154 266,356 3,093 23,137 578,140 1,379 0 1,379 Other changes in net assets without donor restrictions Change in unrealized gains and losses on investments other than trading securities 4,036 Net assets released from restrictions for purchases of property, buildings and equipment 527 Change in pension liability to be recognized in future periods 12,231 Increase(decrease) in net assets without donor restrictions 18,173 Consolidated Statement of Cash Flows Year Ended December 31 2019 (In Thousands) Operating activities Change in net assets 17,991 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization Amortization of deferred financing fees 23,137 108 Net change in unrealized gains and losses on marketable securities (4,036) Loss on other-than-temporary impairment of investments in captive insurance companies Changes in operating assets and liabilities: Patient care accounts receivable, net Other assets Accounts payable and accrued expenses Accrued salaries and related liabilities Due to affiliates, net Accrued pension liability Professional insurance liabilities Other liabilities Net cash provided by operating activities (263) (1,568) 2,099 3,681 (1,061) (17,085) 9,876 14,405 47,284 Investing activities Acquisitions of property, buildings and equipment, net (Purchases) sales of investments, net Net decrease in investments in real estate Net (increase) decrease in assets limited as to use Net cash used in investing activities (8,734) (18,705) 357 (5,537) (32,619) Financing activities Principal repayments on long-term debt Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning ofyear Cash and cash equivalents at end of year (14,020) (14,020) 645 40,798 41,443 Supplemental disclosure of non cash investing and financing activities Assets acquired under capitalized lease obligations 2,500 spital for Healthy Living (HHL) lidated Statements of Financial Position (In Thousands) 2018 $40,798 48,038 56,548 9,173 4,662 159,219 12,308 5,628 177,155 6,587 40,023 3,894 50,504 -5,628 44,876 198,384 2,875 2,895 $426,185 $8,153 30,090 27,909 2,988 7,767 2,071 78,978 57,421 46,268 3,894 106,781 56,022 349,364 67,936 8,885 76,821 $426,185 dated Statements of Operations 2018 531,154 8,057 1,356 540,567 223,599 56,660 268,202 3,180 24,477 576,118 (35,551) (2,392) (37,943) (8,145) 596 (38,728) (84,220) dated Statement of Cash Flows Year Ended December 31 2018 (83,105) 24,477 129 8,145 3,875 437 (1,218) (467) 1,110 509 33,271 32,947 (5,342) 14,768 (14,938) 7,789 357 5,871 (921) (7,097) (7,097) 6,750 34,048 40,798 4,905 Option 1 Year 1 Year 2 Year 3 Year 4 (100,000) (100,000) (100,000) (100,000) 175,000 175,000 175,000 175,000 75,000 75,000 75,000 75,000 Annual Contract Cost (75,000) (75,000) (75,000) (75,000) Estimated Savings 175,000 175,000 175,000 175,000 100000 100000 100000 100000 Initial Contract Investment -250,000 Annual Contract Cost Estimated Savings Net Cash Flow -250,000 NPV: Option 2 Purchase Price Net Cash Flow NPV: -350000 -350000 AR Patient care, less allowance Cash and for cash Short-term uncollectible equivalents investments s Inventory Other-net Beginning Balance 41443 70779 56811 6132 6416 a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) Ending Balance 41443 70779 56811 6132 6416 Assets Assets Other limited as to current use -current Donor assets portion restricted 12439 1276 6587 12439 1276 6587 Investments held by captive insurance companies 47099 Deferred employee compensatio n plan assets 5396 Less assets limited as to use -current portion -1276 Property, buildings and equipment -net 186481 47099 5396 -1276 186481 Liabilities Current Investments Other portion of in real estate noncurrent long-term -net assets debt 2518 2470 2804 2518 2470 2804 Accounts payable and accrued expenses 32189 32189 Accrued salaries and Due to related affiliates, liabilities net 31590 1927 31590 1927 Professional insurance liabilities -current 6738 6738 Liabilities Net Assets Long-term Other debt, less Accrued current current pension liabilities portion liability 15534 51250 29183 15534 51250 29183 Deferred employee compensatio n plan liabilities 5396 5396 Professional insurance Other Without liabilities noncurrent donor -noncurrent liabilities restrictions 117686 55462 86109 117686 55462 86109 Net Assets With donor restrictions 8703 8703 Hospital forStatements Healthy Living (HHL) Consolidated of Financial Position (In Thousands) 2019 2018 41,443 70,779 $41,443 70,779 56,811 6,132 6,416 181,581 12,439 1,276 195,296 56,811 6,132 6,416 181,581 12,439 1,276 195,296 6,587 47,099 5,396 59,082 (1,276) 57,806 186,481 2,518 2,470 444,571 6,587 47,099 5,396 59,082 -1,276 57,806 186,481 2,518 2,470 $444,571 Liabilities and net assets Current liabilities: Current portion of long-term debt Accounts payable and accrued expenses Accrued salaries and related liabilities Due to affiliates, net Professional insurance liabilities -current Other current liabilities Total current liabilities 2,804 32,189 31,590 1,927 6,738 15,534 90,782 $2,804 32,189 31,590 1,927 6,738 15,534 90,782 Long-term debt, less current portion 51,250 51,250 Assets Current assets: Cash and cash equivalents Short-term investments Accounts receivable: Patient care, less allowance for uncollectibles (2019 -$31,085; 2018 -$39,048) Inventory Other-net Other current assets Assets limited as to use -current portion Total current assets Assets limited as to use: Donor restricted Investments held by captive insurance companies Deferred employee compensation plan assets Less assets limited as to use -current portion Assets limited as to use -noncurrent Property, buildings and equipment -net Investments in real estate -net Other noncurrent assets Total assets Accrued pension liability Deferred employee compensation plan liabilities Professional insurance liabilities -noncurrent Other noncurrent liabilities Total liabilities Net assets: Without donor restrictions With donor restrictions Total net assets Total liabilities and net assets Revenue, gains and other support Patient service revenue Other revenue Net assets released from restrictions Total revenue, gains and other support Operating expenses Salaries and wages Employee benefits Supplies and other expenses Interest and amortization of deferred financing fees Depreciation and amortization Total operating expenses Gain(loss) from operations Profession liability insurance program premium revision Excess (deficiency) of revenue over expenses 29,183 5,396 117,686 55,462 349,759 29,183 5,396 117,686 55,462 349,759 86,109 8,703 94,812 444,571 86,109 8,703 94,812 $444,571 Consolidated Statements of Operations 2019 2018 541,301 36,656 1,562 579,519 - 226,400 59,154 266,356 3,093 23,137 578,140 1,379 0 1,379 Other changes in net assets without donor restrictions Change in unrealized gains and losses on investments other than trading securities 4,036 Net assets released from restrictions for purchases of property, buildings and equipment 527 Change in pension liability to be recognized in future periods 12,231 Increase(decrease) in net assets without donor restrictions - 18,173 Consolidated Statement of Cash Flows Year Ended December 31 2019 2018 (In Thousands) Operating activities Change in net assets Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization Amortization of deferred financing fees - 17,991 - 23,137 108 Net change in unrealized gains and losses on marketable securities Loss on other-than-temporary impairment of investments in captive insurance companies Changes in operating assets and liabilities: Patient care accounts receivable, net Other assets Accounts payable and accrued expenses Accrued salaries and related liabilities Due to affiliates, net Accrued pension liability Professional insurance liabilities Other liabilities Net cash provided by operating activities Investing activities Acquisitions of property, buildings and equipment, net (Purchases) sales of investments, net Net decrease in investments in real estate Net (increase) decrease in assets limited as to use Net cash used in investing activities Financing activities Issuance of long-term debt Principal repayments on long-term debt Net cash used in financing activities (4,036) - - - (263) (1,568) 2,099 3,681 (1,061) (17,085) 9,876 14,405 47,284 - (8,734) (18,705) 357 (5,537) (32,619) - (14,020) (14,020) Net cange in cash and cash equivalents Cash and cash equivalents at beginning ofyear Cash and cash equivalents at end of year Supplemental disclosure of non cash investing and financing activities Assets acquired under capitalized lease obligations 41,443 41,443 645 40,798 41,443 2,500 HHL Financial Ratios For 2019 and 2018 Liquidity Current Ratio 2019 2.15 2018 2.15 Quick Ratio 1.24 1.24 Days Cash on Hand #DIV/0! 73.80 Days in Accounts Receivable #DIV/0! 37.36 Days in Accounts Payable #DIV/0! 21.17 Average Payment Period #DIV/0! 59.70 0.00 1.30 Interest Coverage #DIV/0! 1.45 Debt Service Coverage #DIV/0! -2.40 0.57 0.57 #DIV/0! 0.00 Return on Assets 0.00 0.00 Return on Net Assets 0.00 0.01 Efficiency Total Asset Turnover Solvency Long-Term Debt to Net Assets Profitability Total Margin