BAPTIST MEMORIAL HEALTH CARE CORPORATION
OVERVIEW OF JUNE 2014 FINANCIAL RESULTS
The current month’s financial result is a net loss of $7.55 million compared to a budgeted net income of $15.69 million. The loss from operations is
$11.47 million compared to a budgeted income of $10.07 million. The Foundation had a net income of $1.59 million, which gives BMHCC a net loss of
$9.14 million net of the Foundation’s financial results for the month. The overall negative budget variance is $23.24 million. This variance is primarily the result of positive budget variance at BMH – North Mississippi ($1.56 million; UPL reimbursement), at the Foundation ($1.66; gain on sale of investments), the Physician Market ($.32 million; increased patient volume and expense reductions), and Health and Welfare Trust ($.49 million; premiums exceeded health claims). These positive results were offset primarily by negative budget variances at BMH – Memphis (10.81 million; A/R aging and decline in patient volume), BMH – Collierville ($.57 million; A/R aging), BMH – Tipton ($2.75 million; patient volume decline and poor payer mix), NEA Baptist Hospital ($1.57 million; patient volume below budget and EPIC training), BMH – Golden Triangle ($2.56 million; UPL reimbursement and poor payer mix), BMH – DeSoto ($2.11 million; poor payer mix and UPL reimbursement), Baptist Germantown Rehab Hospital
($2.81 million; CMS take back from outlier payments), and BMHCC ($4.71 million; BOC and Dove expenses) . Also, after close it was determined that some A/R allowances were overstated by approximately $3.5 million after reviewing EPIC reports. In June 2013, BMHCC had a consolidated net income of $7.94 million ($2.47 million income from operations and $5.47 million from interest/dividend income and gain on sale of investments).
During this month, the hospitals generated a net income of $1.72 million. For the same month last year, the hospitals generated a net income of $17.87 million. Reflected in this $1.72 million positive bottom line is a loss of $5.57 million from BMH – Memphis; a loss of $529 thousand from BMH –
Collierville; a loss of $278 thousand from BMH for Women; a loss of $2.95 million from Baptist Germantown Rehab Hospital; a loss of $2.00 million from BMH – Tipton; a loss of $2.83 million from NEA Baptist; a loss of 293 thousand from BMH – Huntingdon; and a loss of $52 thousand from BMH –
Union City. The losses are primarily the result of patient volumes falling below budget levels, a decline in payer mix, the aging of Accounts Receivable and a negative cost report settlement.
BMHCC has a year-to-date consolidated net loss of $46.32 million compared to a budgeted net income of $26.06 million. The Foundation has experienced a year-to-date net income of $19.53 million compared to a budgeted net loss of $5 thousand. The year-to-date financial results net of the
Foundation is a loss of $65.85 million compared to a budgeted net income of $26.07 million. In June 2013, BMHCC had a year-to-date consolidated net income of $43.38 million.
The Corporate Overhead Expenses, as a percentage of Total Operating Revenues for FY 2013 was 8.9%. For FY 2014, the Corporate Overhead Expenses, as a percentage of Total Operating Revenues is 13.3%. The following is a breakdown of BMHCC expenses (dollars in millions):
Operating Expenses
FY 2014 %
$ 172.43 12.0
Depreciation Expense 17.21 1.2
Interest Expense .96 .1
Total $ 190.60 13.3
Additionally, the overall Days Cash on Hand position remained at 156 days. The Days Revenue in Accounts Receivable remained at 57 days. Capital expenditures for the month were approximately $7.9 million.
1

DISCHARGES
PATIENT DAYS
AVERAGE LENGTH OF STAY
FTE'S
BAPTIST MEMORIAL HEALTH CARE CORPORATION
KEY OPERATING STATISTICS
JUNE
_______________
FISCAL YEAR 2014
DAYS REVENUES IN ACCOUNTS RECEIVABLE
SYSTEM NET REVENUE PER DISCHARGE
SYSTEM NET REVENUE PER PATIENT DAY
SYSTEM SALARY & BENEFIT COST PER DISCHARGE
SYSTEM SALARY & BENEFIT COST PER PATIENT DAY
SYSTEM SALARY & BENEFIT COST PER FTE
SYSTEM TOTAL EXPENSES PER DISCHARGE
SYSTEM TOTAL EXPENSES PER PATIENT DAY
ACTUAL
CURRENT MONTH
BUDGET
PRIOR
YEAR
7,101
35,892
5.05
13,150
57
23,028
4,556
12,446
2,462
6,720
24,644
4,876
7,004
37,630
5.37
13,011
54
25,725
4,788
12,558
2,337
6,760
24,287
4,521
6,619
34,844
5.26
12,796
57
25,120
4,772
12,633
2,400
6,535
24,747
4,701
2

DISCHARGES
PATIENT DAYS
AVERAGE LENGTH OF STAY
FTE'S
BAPTIST MEMORIAL HEALTH CARE CORPORATION
KEY OPERATING STATISTICS
JUNE
_______________
FISCAL YEAR 2014
DAYS REVENUES IN ACCOUNTS RECEIVABLE
SYSTEM NET REVENUE PER DISCHARGE
SYSTEM NET REVENUE PER PATIENT DAY
SYSTEM SALARY & BENEFIT COST PER DISCHARGE
SYSTEM SALARY & BENEFIT COST PER PATIENT DAY
SYSTEM SALARY & BENEFIT COST PER FTE
SYSTEM TOTAL EXPENSES PER DISCHARGE
SYSTEM TOTAL EXPENSES PER PATIENT DAY
ACTUAL
YEAR TO DATE
BUDGET
PRIOR
YEAR
62,747
322,023
5.13
13,096
57
22,922
4,466
12,732
2,481
61,004
24,903
4,852
63,389
333,878
5.27
13,011
54
23,761
4,511
12,531
2,379
61,053
24,087
4,573
62,744
334,352
5.33
12,784
57
23,003
4,317
12,078
2,267
59,281
23,385
4,388
3

BAPTIST MEMORIAL HEALTH CARE CORPORATION
OTHER KEY OPERATING STATISTICS
JUNE 30, 2014
Statistic
Current Ratio
Return on Assets
Debt to Equity
Days Cash on Hand (Includes Foundation)*
June
2014
1.43
-1.46%
31.91%
156
September
2013
1.40
0.78%
24.96%
175
AA
Rating
2.00
4.20%
37.40%
209
*Cash includes - cash and investments, plus Foundation cash and investments
Note**June's return on assets calculation includes nine months actual activity and three months budgeted net income to calculate the return percentage.
4

BAPTIST MEMORIAL HEALTH CARE CORPORATION
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
CURRENT ASSETS:
Cash and cash equivalents
Short term investments
Patient accounts receivable, net
Other receivables
Supplies, Inventory and Prepaid
Estimated settlements-3rd parties
Assets designated for current liabilities
Total current assets
June
2014
$ 89,802
598
292,680
18,383
109,610
2,145
-
$ 513,218
September
2013
$ 102,825
-
242,567
18,354
91,555
9,051
-
$ 464,351
VAR
$ (13,023)
598
50,113
30
18,056
(6,906)
-
$ 48,867
INVESTMENTS
ASSETS WHOSE USE IS LIMITED
PROPERTY AND EQUIPMENT, net
OTHER ASSETS:
Other assets
Goodwill
TOTAL ASSETS
835,483
24,418
1,241,851
863,040
21,545
1,189,387
(27,558)
2,873
52,464
12,106
76,134
$ 2,703,209
11,906
74,675
$ 2,624,904
200
1,459
$ 78,305
5

BAPTIST MEMORIAL HEALTH CARE CORPORATION
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
CURRENT LIABILITIES:
Current portion-long-term debt & CLO
Accounts payable
Estimated settlements-3rd parties
Accrued expenses and other current
Total current liabilities
June
2014
$ 179,793
39,566
12,967
126,155
$ 358,482
September
2013
$ 129,977
35,690
13,564
153,066
$ 332,296
VAR
$ 49,816
3,877
(597)
(26,911)
$ 26,185
LONG-TERM DEBT and CLO
RESERVE FOR SELF INSURANCE
POST RETIREMENT BENEFIT
OTHER LONG-TERM LIABILITIES
FUND BALANCE (DEFICIT)
TOTAL LIABILITIES & FUND BAL.
399,223
70,325
39,543
20,977
325,082
79,886
38,696
25,615
74,141
(9,561)
847
(4,637)
1,814,659
$ 2,703,209
1,823,329
$ 2,624,904
(8,670)
$ 78,305
6

BAPTIST MEMORIAL HEALTH CARE CORPORATION
AND RELATED PARTIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED JUNE 30, 2014
(IN THOUSANDS)
ACTUAL
6/30/2014
Net Cash Flows From Operating Activities And
Non-Operating Income:
Net Income
Adjustments to reconcile net income to net cash provided by operating activities and nonoperating income-
Depreciation and amortization
Transfers from restricted net assets and other
Changes in-
Net patient accounts receivables
Inventory, prepaid expenses and other assets
Accounts payable, accrued expenses and other liabilities
Net cash provided by operating activities and nonoperating income
Cash Flows From Investing Activities:
Capital Expenditures
Purchases of long-term investments
Sales of long-term investments
Changes in other long-term assets and liabilities
Net cash used in investing activities
Cash Flows From Financing Activities:
Proceeds from issuance of debt
Principal payments and retirements of debt and capital lease obligations
Net cash provided by (used in) financing activities
Net Change in Cash and Short Term Investments
Cash And Short Term Investments at Beginning of Year
Cash And Short Term Investments at End of Year
$
$
(46,320)
$
$ (146,418)
(144,319)
$
94,353
(31,342)
(50,113)
(11,179)
(23,631)
(68,232)
248,184
(25,597)
(68,150)
$
125,000
(1,043)
123,957
$ (12,425)
102,825
$ 90,400
ACTUAL
6/30/2013
$ 43,377
88,185
(76,296)
(19,946)
(1,571)
(22,518)
$ 11,231
$ (150,367)
(212,550)
294,857
8,206
$ (59,854)
$ 27,003
(4,515)
$ 22,488
$ (26,134)
136,038
$ 109,904
7

BAPTIST MEMORIAL HEALTH CARE CORPORATION
AND RELATED PARTIES
MONTHLY COMPARATIVE CONSOLIDATED INCOME STATEMENT
AS OF JUNE 30, 2014
(IN THOUSANDS)
NET PATIENT REVENUES
OTHER OPERATING REVENUES
TOTAL OPERATING REVENUES
OPERATING EXPENSES
MANAGEMENT FEES
DEPRECIATION
INTEREST
TOTAL OPERATING EXPENSES
OPERATING INCOME/(LOSS)
NONOPERATING REVENUES/
(EXPENSES)
EXCESS OF REVENUES OVER
EXPENSES/ (EXPENSES OVER
REVENUES)
ACTUAL
$ 157,470
6,055
$ 163,525
$ 162,238
16
11,719
1,024
$ 174,998
$ (11,473)
3,919
BUDGET
$ 173,815
6,362
$ 180,178
$ 157,817
18
11,250
1,023
$ 170,109
$ 10,069
5,623
PRIOR
$ 158,730
$
$
166,272
152,720
$
7,541
5,463
-
10,058
1,022
163,799
$ 2,473
$ (7,554) $ 15,691 $ 7,936
8

BAPTIST MEMORIAL HEALTH CARE CORPORATION
AND RELATED PARTIES
YTD COMPARATIVE CONSOLIDATED INCOME STATEMENT
AS OF JUNE 30, 2014
(IN THOUSANDS)
NET PATIENT REVENUES
OTHER OPERATING REVENUES
TOTAL OPERATING REVENUES
OPERATING EXPENSES
MANAGEMENT FEES
DEPRECIATION
INTEREST
TOTAL OPERATING EXPENSES
OPERATING INCOME/(LOSS)
NONOPERATING REVENUES/
(EXPENSES)
EXCESS OF REVENUES OVER
EXPENSES/ (EXPENSES OVER
REVENUES)
ACTUAL
$ 1,379,141
59,142
$ 1,438,283
$ 1,459,756
164
94,353
8,319
$ 1,562,592
$ (124,309)
BUDGET
$ 1,445,961
60,248
$ 1,506,209
$ 1,419,267
168
98,218
9,206
$ 1,526,860
$ (20,651)
PRIOR
$ 1,386,536
56,779
$ 1,443,315
$ 1,370,141
-
88,185
8,920
$ 1,467,246
$ (23,931)
$
77,989
(46,320) $
46,712
26,061 $
67,308
43,377
9