Encompass Health Corporation · NYSE:EHC
Encompass Health — HealthSouth — Investor Presentation (November 2011)
95 slides from Encompass Health's investor presentation, Nov 15, 2011
Slide 1: Investor Reference Book
Exhibit 99.1 Post Q3 2011 Earnings Release - Last updated November 15, 2011 INVESTOR REFERENCE BOOK (Reclassified for long-term acute care hospitals moving to discontinued operations)
Slide 2: Forward-Looking Statements
Exhibit 99.1 The information contained in this presentation includes certain estimates, projections and other forward- looking information that reflect our current outlook, views and plans with respect to future events, including legislative and regulatory developments, strategy, capital expenditure
Slide 3: Table of Contents
Exhibit 99.1 Table of Contents
Slide 4: Largest Provider of Inpatient Rehabilitative Healthcare Services in the U.S.
Exhibit 99.1 Inpatient Rehabilitation Hospitals (“IRF”) Outpatient Rehabilitation Satellite Clinics Hospital-Based Home Health Agencies Employees Revenue in 2010 Inpatient Discharges in 2010 Outpatient Visits in 2010 Number of States NYSE (HLS) Exchange (Symbol) Largest Provider of Inpatient Rehabil
Slide 5: Our Hospitals
Exhibit 99.1 Our Hospitals Major Services • Rehabilitation Physicians: manage and treat medical needs of patients • Rehabilitation Nurses: oversee treatment programs of patients • Physical Therapists: address physical function, mobility, safety • Occupational Therapists: promote independence and re-
Slide 6: Our Patients
Exhibit 99.1 Our Patients Most Common Conditions (Q3 2011) 1. Stroke 16.9% 2. Neurological 17.1% 3. Debility 10.9% 4. Fracture of the lower extremity 10.2% 5. Other orthopedic conditions 9.9% 6. Knee/Hip replacement 8.5% 7. Brain injury 7.7% 8. Cardiac conditions 4.2% 9. Spinal cord injury 2.8% 10.
Slide 7: Our Quality
Exhibit 99.1 Our Quality FIM Gain Change in Functional Independence Measurement (based on an 18 point assessment) from admission to discharge (1) Average = Expected, Risk-adjusted for UDS database • Inpatient rehabilitation hospitals evaluate all patients at admission and upon discharge to determine
Slide 8: Our Cost-Effectiveness
Exhibit 99.1 HealthSouth differentiates itself by providing superior quality care at a lower cost. (1) The 96 for HLS does not include HealthSouth Sugar Land Rehabilitation Hospital, purchased in September 2010; it was included in the 136 non-HLS freestanding. Also, does not include HealthSouth Reha
Slide 9: CMS Fiscal Year 2012 IRF Rate Setting File Analysis
Exhibit 99.1 CMS Fiscal Year 2012 IRF Rate Setting File Analysis Notes: (1) All data provided was filtered and compiled from the Centers for Medicare and Medicaid Services (CMS) Fiscal Year 2012 IRF rate setting Correction Notice file found at http://www.cms.gov/InpatientRehabFacPPS/07_DataFiles.asp
Slide 10: Our Payors (Q3 2011)
Exhibit 99.1 Payment Methodology Payor Source 72.0% 20.0% 1.9 % 4.5% Our Payors (Q3 2011) Prospective Payment System (“PPS”) • Payments based on Case Mix Groups (“CMGs”) – Diagnosis of patient’s illness • Fixed payment per CMG adjusted for: – Acuity/severity – Regional wage differential – Patient ou
Slide 11: Our Historic Discharge Growth vs. Industry
Exhibit 99.1 HealthSouth’s volume growth has outpaced competitors’ 4.7% 5.9% 5.9% 5.8% 5.9% 2.7% 2.5% 1.3% • TeamWorks = standardized and enhanced sales & marketing • Bed additions will help facilitate continued organic growth 5.1% 6.1% 7.8% Yearly Discharge 6.9% 5.6% 3.1% Growth (2) Includes consol
Slide 12: Our Track Record
Exhibit 99.1 Our Track Record ($ in millions)
Slide 13: Our Track Record
Exhibit 99.1 Our Track Record Leverage Ratio (1) (billions) (1) Reconciliation to GAAP provided on slides 49, 50, and 88 - 93. (2) Expect full-year adjusted free cash flow to be at least $210 million reflecting growth over full-year 2010 of at least 16%. Interest Expense $229 $131
Slide 14: Managed through Medicare payment cuts and recession
Exhibit 99.1 HealthSouth has successfully managed through Medicare payment cuts and an economic recession… Adjusted EBITDA ($million) Discharges
Slide 15: Our Assets
Exhibit 99.1 3,164 Licensed Beds in CON States Our Assets 98 (1) Inpatient Rehabilitation Hospitals, 6,416 Licensed Beds 3,252 Licensed Beds in Non-CON States 23 Own Hospital Building Only 40 Own Building and Land 35 Lease Building and Land A Certificate of Need (CON) is a legal document required in
Slide 16: Strong and Sustainable Business Fundamentals
Exhibit 99.1 Growth Opportunities Financial Strengths Industry Leading Position Attractive Healthcare Sector Cost-Effectiveness Real Estate Portfolio Strong and Sustainable Business Fundamentals (1) Inclusive of non-consolidated entities
Slide 17: Industry Structure
Exhibit 99.1 Industry Structure
Slide 18: Overall Healthcare Spending
Exhibit 99.1 $759.1 $137.0 $674.9 $122.6 $68.3 $328.0 $29.8 $133.2 $77.2 $156.2 National Healthcare Spending: $2,486.3 billion Source : Center for Medicare & Medicaid Services, National Health Expenditure Data for year ended December 2009 - Table 2 Overall Healthcare Spending Hospital Care Includes
Slide 19: Medicare 2010 Spending
Exhibit 99.1 5% 27% 23% 12% 12% 4% 5% 12% Medicare Part B Medicare Part C Medicare Parts A&B Medicare Part D Medicare Part A Medicare 2010 Spending = $509.7 Billion (1) (1) Percentages are based upon total Medicare spending of $520.3 billion, before $10.6 billion of recoveries for 2010 (CBO Medicare
Slide 20: Continuum of Healthcare Services
Exhibit 99.1 Preventive Routine health care that includes screenings, check-ups, and patient counseling to prevent illnesses, disease, or other health problems. Acute Medical treatment of diseases for which a patient is treated for a brief but severe episode of illness. Ambulatory Medical care deliv
Slide 21: Post-Acute Settings
Exhibit 99.1 Note: These numbers are program spending only and do not include beneficiary copayments. Sources : Center for Medicare & Medicaid Services, Medicare Trustees Report May 2011 - Page 45 and Medpac Data Book, June 2011 - Skilled nursing facilities 18.1% Home health agencies 17.7% Inpatient
Slide 22: Geographic Distribution of IRFs, 2009
Exhibit 99.1 Geographic Distribution of IRFs, 2009 Source : Medpac Report to Congress, Medicare Payment Policy, March 2011 - page 205
Slide 23: Supply of IRFs remains stable in 2009
Exhibit 99.1 Supply of IRFs remains stable in 2009 Source : Medpac Report to Congress, Medicare Payment Policy, March 2011 - page 208
Slide 24: Inpatient Rehabilitation Sector
Exhibit 99.1 (1) The 96 for HLS does not include HealthSouth Sugar Land Rehabilitation Hospital, purchased in September 2010; it was included in the 136 non-HLS freestanding. Also, does not include HealthSouth Rehabilitation Hospital of Cypress, TX, which opened in October 2011. (2) In 2010, HealthS
Slide 25: Readmission Rates
Exhibit 99.1 Readmission Rates Note: Use of home health care and hospice is based on care that starts within three days of discharge. Other PAC care starts within one day of discharge. Home health use includes episodes that overlap an inpatient stay. Source : Medpac Data Book, Healthcare Spending an
Slide 26: CMS: Inpatient Rehabilitation vs. Skilled Nursing
Exhibit 99.1 CMS: Inpatient Rehabilitation vs. Skilled Nursing “… MedPAC’s analysis of recent quality measure data related to rehospitalizations suggests that quality of care within SNFs has not been improving … Since 2000, one outcome measure (the risk-adjusted rate of rehospitalization for any of
Slide 27: Future Regulatory Risk
Exhibit 99.1 Future Regulatory Risk Inpatient Rehabilitation Facility Skilled Nursing Facility Long-Term Acute Care Hospital Home Health Hospice 1. Re-basing payment system No Yes; RUGS IV and MDS 3.0 parity adjustment for FY 2012 (-12.6%) No Yes; CY re-weighting re-distributes payment from high the
Slide 28: Estimated Impact to HealthSouth
Exhibit 99.1 Estimated Impact to HealthSouth Scenario Comments Above estimates assume no mitigating actions by HealthSouth § Special Committee actions mirror President’s Fiscal Commission (Simpson Bowles) (million) Net Operating Revenues ($4.0) Adjusted EBITDA ($7.0) Note: Impact based on 2012 § Spe
Slide 29: Historical Perspective
Exhibit 99.1 Historical Perspective
Slide 30: Historical Perspective
Exhibit 99.1 Historical Perspective • Divested surgery centers, outpatient and diagnostic divisions • Used proceeds plus tax refund to repay $1.4 billion of debt • Reduced G&A to match residual business size • Piloted TeamWorks sales and marketing • 75% rule frozen at 60% (MMSEA) • Completed all set
Slide 31: Historical Perspective: 2008
Exhibit 99.1 2008 Adjusted EBITDA (1) = $322.6 Historical Perspective • Established 2008-2010 business model • 4% discharge growth; 5-8% Adjusted EBITDA growth;15-20% adjusted EPS growth • Balanced delevering and growth/development strategies • Completed TeamWorks sales and marketing roll-out • Abso
Slide 32: Historical Perspective: 2009
Exhibit 99.1 2009 Adjusted EBITDA (1) = $363.7 2008 Adjusted EBITDA (1) = $322.6 Historical Perspective • Continued focus on delevering (approx. $151 million in debt repaid) • Focused on organic growth; TeamWorks sustainability module rolled out • Issued 5 million shares for securities litigation se
Slide 33: Historical Perspective: 2010
Exhibit 99.1 2010 Adjusted EBITDA (1) = $409.6 2009 Adjusted EBITDA (1) = $363.7 2008 Adjusted EBITDA (1) = $322.6 Historical Perspective • Healthcare reform passed; reduced future market basket updates • Weak acute care referral volumes • Adjusted annual volume growth target to 2.5-3.5% • Developme
Slide 34: Historical Perspective: 2011
Exhibit 99.1 2010 Adjusted EBITDA (2) = $409.6 2009 Adjusted EBITDA (2) = $363.7 2008 Adjusted EBITDA (2) = $322.6 Historical Perspective • Acute care volumes still low • Annual volume growth target remains 2.5-3.5% • Raised $122 million by reopening 2018 and 2022 senior notes • Plan to add a minimu
Slide 35: Revenues & Expenses
Exhibit 99.1 Revenues & Expenses (1) Employees per occupied bed, or “EPOB,” is calculated by dividing the number of full-time equivalents, including an estimate of full- time equivalents from the utilization of contract labor, by the number of occupied beds during each period. The number of occupied
Slide 36: Adjusted EBITDA
Exhibit 99.1 Adjusted EBITDA (1) (1) Reconciliation to GAAP provided on slides 50 and 88- 93.
Slide 37: Shares Outstanding and Warrants
Exhibit 99.1 Notes : (1) Does not include 2.0 million warrants issued in connection with a January 2004 loan repaid to Credit Suisse First Boston. In connection with this transaction, we issued warrants to the lender to purchase two million shares of our common stock. Each warrant has a term of ten
Slide 38: Business Outlook 2011 to 2013
Exhibit 99.1 Business Outlook 2011 to 2013 (as of November 15, 2011)
Slide 39: Business Model
Exhibit 99.1 Business Model • Adjusted EBITDA CAGR: 5-8% (1) • Adjusted Free Cash Flow CAGR: 12-17% (1) (1) Reconciliation to GAAP provided on slides 49, 50, and 88 - 93. (2) Exclusive of any E&Y recovery.
Slide 40: Business Outlook: Revenue Assumptions
Exhibit 99.1 Volume • 2.5% to 3.5% annual growth (excludes acquisitions) • Includes bed expansions, de novos and unit consolidations Medicare Managed Care Business Outlook: Revenue Assumptions Revenue Other (1) Not inclusive of the Budget Control Act of 2011, which could result in a reduction of up
Slide 41: Business Outlook: Expense Assumptions
Exhibit 99.1 Salaries & Benefits (1) Hospital Expenses • Other operating and supplies tracking with inflation Salaries & Benefits Hospital Expenses Business Outlook: Expense Assumptions Expense ~4.5% of revenue (excludes stock-based compensation) (1) Salaries, Wages and Benefits: ~ 85% Salaries and
Slide 42: Guidance
Exhibit 99.1 Guidance
Slide 43: 2011 Guidance - Adjusted EBITDA
Exhibit 99.1 Original Guidance Feb. 17, 2011 $440 million to $450 million ( Inclusive of 12 months LTCH Adjusted EBITDA) July 27, 2011 $447 million to $453 million May 18, 2011 $440 million to $450 million; (The high end of, or greater than) Guidance effectively raised by the 2011 expected LTCH Adju
Slide 44: 2011 Guidance - EPS
Exhibit 99.1 Basic Earnings per Share from Continuing Operations Attributable to HealthSouth (1) $1.18 to $1.23 Diluted earnings per share on a GAAP basis are the same as basic earnings per share due to the antidilutive impact in the period. 2011 Guidance - EPS (as of November 15, 2011) Consideratio
Slide 45: 2011 Guidance - EPS
Exhibit 99.1 2011 Guidance - EPS (as of November 15, 2011) (2) Income from continuing operations attributable to HealthSouth (reclassified for the 6 LTCHs moving to discontinued operations) (3) Current period amounts in income tax provision; see slides 94 - 95. (4) Total income tax provision for ful
Slide 46: Expected Adjusted Free Cash Flow
Exhibit 99.1 HealthSouth’s GAAP income statement will be affected by a number of items that will not affect adjusted free cash flow: Normalized GAAP tax rate resulting from the valuation allowance reversal in Q4 2010. Loss on early extinguishment of debt Expect full-year adjusted free cash flow to b
Slide 47: Income Tax Considerations
Exhibit 99.1 GAAP Considerations: • As of 9/30/11, the Company had an ending balance of approx. $1.3 billion in federal NOLs and a remaining valuation allowance of approx. $105 million, primarily related to state NOLs. • Expect effective tax rate of approx. 40% going forward Future Cash Tax Payments
Slide 48: Free Cash Flow
Exhibit 99.1 Free Cash Flow
Slide 49: Adjusted Free Cash Flow
Exhibit 99.1 Adjusted Free Cash Flow (1) Maintenance capital expenditures are expected to be approx. $50 million in 2011 and $75 million in 2012. (2) Final swap payment of $10.9 million was made in March 2011.
Slide 50: Net Cash Provided by Operating Activities
Exhibit 99.1 Net Cash Provided by Operating Activities
Slide 51: Priorities for reinvesting free cash flow
Exhibit 99.1 HealthSouth’s priorities for reinvesting free cash flow… • Additional debt prepayment (revolver, term loan and senior notes) • Growth in core business • Bed expansions • De novo hospitals • Hospital acquisitions • Acute care IRF unit acquisitions/consolidations • Purchase properties und
Slide 52: Refinancing and Delevering
Exhibit 99.1 Refinancing and Delevering
Slide 53: Debt Schedule as of September 30, 2011
Exhibit 99.1 Debt Schedule as of September 30, 2011 (1) Based on 4 quarter trailing and 2010 Adjusted EBITDA of $455.4 million and $409.6 million, respectively; reconciliation to GAAP provided on slides 50, 88, 89, and 93.
Slide 54: Debt and Liquidity
Exhibit 99.1 (1) Based on 2008 and trailing four-quarter Adjusted EBITDA of $322.6 million and $455.4 million, respectively; reconciliation to GAAP provided on slides 50 and 88 - 93. Debt and Liquidity Liquidity Credit Ratings
Slide 55: Lower-cost, flexible capital structure
Exhibit 99.1 10% of the outstanding principal is currently callable per annum at 103% HealthSouth is now positioned with a lower-cost, flexible capital structure… $500 Revolver L+225 September 30 , 2011 (3) $ 276 Undrawn (1) Based on trailing four-quarter Adjusted EBITDA of $455.4 million; reconcili
Slide 56: Credit Agreement Key Covenants
Exhibit 99.1 Terms Acquisitions Limited by compliance with leverage and interest coverage covenants currently requiring 4.75x and 2.5x, respectively Restricted payments: 10.75% repurchase Unlimited up to 4.5x leverage ratio (revolver draws available for repurchase) Share repurchase (2) $200 million
Slide 57: Growth
Exhibit 99.1 Growth
Slide 58: Organic Growth: A Strategic Framework
Exhibit 99.1 Demographics + population growth and changes (weighted by age) = Rehab CAGR Growth goals for the market and/or hospital Sales and Marketing Strategies Defining “upstream” opportunities Identifying CMS-13 discharges “Converting” CMS-13 patients to rehab Market Dynamics Existing IRF beds
Slide 59: Organic Growth: Compounded Annual Growth Rate
Exhibit 99.1 Organic Growth: Compounded Annual Growth Rate (CAGR) (1) (1) Numbers in map are for illustrative purposes only and do not represent actual results. (2) “Weighted for Rehab Services” - methodology weights growth in rehab age groups higher. % CAGR Rehab by Zip Code Weighted for Rehab Serv
Slide 60: De Novo Market Selection Process
Exhibit 99.1 Active Development List Corporate Assessment Strategic Approach • Build • Buy • JV Regional President Priority Assessment “Deep Dive” Market Assessments Potential Opportunity List (160 opportunities identified) National Market Assessment ( 3,141 counties in 48 states studied) De Novo Ma
Slide 61: De Novo Evaluation Process
Exhibit 99.1 CON Approval Site Selection Cost Assessment Pro forma Financials Execution NO GO GO Market Selection GO NO GO • Design • Construction De Novo Evaluation Process
Slide 62: Illustrative De Novo Timeline
Exhibit 99.1 Illustrative De Novo Timeline Day 1 CON Process Construction With CON Design Planning & Zoning Month 20 Groundbreaking Month 32 Opening Construction Design Planning & Zoning Month 11 Groundbreaking Month 20 Opening Day 1 Without CON
Slide 63: Illustrative De Novo Pro forma (40 bed)
Exhibit 99.1 Capital Cost $ Range (millions) Low High Construction, design, permitting, etc. $11.0 $14.5 Land 1.5 3.5 Equipment 2.5 3.0 $15.0 $21.0 Pre-opening Expenses (thousands) Low High Operating $200 $300 Salaries, wages and benefits 150 200 $350 $500 Illustrative De Novo Pro forma (40 bed)
Slide 64: Hospital EBITDA and Occupancy
Exhibit 99.1 (1) Hospital EBITDA = earnings before interest, taxes, depreciation and amortization directly attributable to the related hospital. Occupancy
Slide 65: IRF Acquisition Performance
Exhibit 99.1 Date Acquired Acquired Census Q3 2011 Census Vineland Q3 2008 26 34 Desert Canyon Q2 2010 16 34 Sugar Land Q3 2010 26 34 Ft. Smith Q3 2010 15 39 IRF Acquisition Performance Value added by HealthSouth • TeamWorks approach to sales/marketing • Labor management tools and “best practices” •
Slide 66: Portfolio Growth: Cash Payback
Exhibit 99.1 Cash Payback Cash Payback • Target: Minimum of 4 de novos and 2 - 3 acquisitions/yr • All projects have minimum IRR of 15% (pre-tax). • Longer payback on de novos versus acquisitions is attributable to: • 12-15 month construction period • Initial ramp-up of operations on de novos Portfo
Slide 67: Future Growth: Complementary Post-Acute Care Services
Exhibit 99.1 Discharge Hospice Inpatient Rehabilitation Facility (1) Skilled Nursing Facility Home Health (1) (Lowest Acuity) Acute Care Hospital (Highest Acuity) Future Growth: Complementary Post-Acute Care Services (1) For information on HealthSouth’s hospital portfolio, see slide 4. Sources : Med
Slide 68: Modified near-term growth strategy
Exhibit 99.1 While the Company still believes investing in growth is a correct long-term strategy, we are modifying our near-term strategy (slow walk de novo growth) until we have a better line of site into the changes coming from Washington, DC. • Growth strategies will complement delevering priori
Slide 69: Operational Initiatives
Exhibit 99.1 Operational Initiatives
Slide 70: Key Operational Initiatives: Summary
Exhibit 99.1 Key Operational Initiatives: Summary • Strong track record of providing high-quality, cost-effective care – Patient functional gains exceed industry norms – Consistent market share gains – Disciplined expense management • Targeted operational strategies to achieve excellence in: – Clini
Slide 71: Operational Strategy
Exhibit 99.1 Operational Strategy Excellence in … • Care Management TeamWorks project • Identify trends and establish “best practices” for the prevention of acute care transfers • Provide a robust rehabilitation specific clinical education program for nurses and therapists • BEACON management report
Slide 72: TeamWorks: Care Management
Exhibit 99.1 Design a HealthSouth Care Management Playbook to be implemented across all hospitals Referral Management Pre-authorization / Pre- certification Patient Assessment Care Delivery & Documentation Interdisciplinary Team Process Denials & Approvals Outcomes Analysis Effective & Efficient Car
Slide 73: TeamWorks: Care Management Initial Observations
Exhibit 99.1 Care Management implementation completed in all hospitals in 2011 Focus shifted to sustainability TeamWorks: Care Management Initial Observations • Lower transfers back to acute care providers • More clinical resources needed to enable process (added approx. one per hospital) • Higher p
Slide 74: CPR: Comfort, Professionalism, Respect
Exhibit 99.1 CPR is an in-house course designed to train all employees to realize that even minor encounters between staff and patients can have a memorable impact on the patient’s entire experience. CPR: Comfort, Professionalism, Respect • All employees trained in the CPR campaign. • Hospital-based
Slide 75: BEACON
BEACON HEALTHSOUTH MANAGEMENT REPORTING
Slide 76: BEACON: Hospital-Specific
Exhibit 99.1 BEACON: Hospital-Specific (1) (1) Numbers in screen shot have been modified for presentation and do not represent actual results.
Slide 77: BEACON: Regional Roll-up
Exhibit 99.1 BEACON: Regional Roll-up (1) (1) Numbers in screen shot have been modified for presentation and do not represent actual results.
Slide 78: Clinical Information Systems in Healthcare
Exhibit 99.1 Stage 2 Clinical Data Repository, Controlled Medical Vocabulary, may have Document Imaging; Health Info Exchange capable Stage 3 Nursing/clinical documentation , Clinical Decision Support Digital Radiology Stage 4 Computerized Physician Order Enter, Clinical Decision Support (clinical p
Slide 79: Clinical Information System rollout timeline
Exhibit 99.1 2010 2011 2012 2013 - 2016 2009 • HealthSouth Rehabilitation Hospital of Northern, VA hospital opened with ACE IT installed • Pilot project kickoff • Complete installation in remaining hospitals
Slide 80: Clinical Information System Installation Cost
Exhibit 99.1 Clinical Information System (CIS) Installation Cost • No incentive payments for inpatient rehabilitation hospitals – Only acute care hospitals are eligible (1) • Installation cost will vary by hospital depending on items such as size and physical plan. – Installation cost expected to be
Slide 81: CIS Benefits and Value Proposition
Exhibit 99.1 Operational Efficiencies Improved Patient Safety Cost-Effectiveness CIS Benefits and Value Proposition
Slide 82: Operational Metrics
Exhibit 99.1 Operational Metrics
Slide 83: Our Historic Discharge Growth vs. Industry
Exhibit 99.1 HealthSouth’s volume growth has outpaced competitors’ 4.7% 5.9% 5.9% 5.8% 5.9% 2.7% 2.5% 1.3% • TeamWorks = standardized and enhanced sales & marketing • Bed additions will help facilitate continued organic growth 5.1% 6.1% 7.8% Yearly Discharge 6.9% 5.6% 3.1% Growth (2) Includes consol
Slide 84: Operational Metrics: Expense Efficiencies
Exhibit 99.1 3.59 3.52 3.49 3.47 EPOB Operational Metrics: Expense Efficiencies (% of Net Operating Revenues) 2008 2009 2010 2011 2008 2009 2010 2011 2008 2009 2010 2011 • Salaries, Wages & Benefits reflects continued improvement from productivity gains and growing revenue base. • Hospital-related E
Slide 85: Operational and Labor Metrics
Exhibit 99.1 Operational and Labor Metrics (1) (1) Numbers have been reclassified to reflect current continuing operations. (2) Represents discharges from HealthSouth’s 94 consolidated hospitals in Q3 2011, Q2 2011, Q1 2011, Q4 2010 and Q3 2010, 92 consolidated hospitals in Q2 2010, and 90 consolida
Slide 86: Payment Sources (Percent of Revenue)
Exhibit 99.1 Payment Sources (Percent of Revenue) (1 ) Managed Medicare revenues represent ~ 7%, 8%, 7%, 8% and 8% of total revenues for Q3 2011, Q3 2010, 9 Months 2011, 9 Months 2010 and Full Year 2010, respectively, and are included in “Managed care and other discount plans.”
Slide 87: Reconciliations to GAAP
Exhibit 99.1 Reconciliations to GAAP
Slide 88: Reconciliation of Net Income to Adjusted EBITDA
Exhibit 99.1 Reconciliation of Net Income to Adjusted EBITDA (1)(3) (1) (2) (3) (4) - Notes on page 93.
Slide 89: Reconciliation of Net Income to Adjusted EBITDA
Exhibit 99.1 Reconciliation of Net Income to Adjusted EBITDA (1)(3) (1) (2) (3) (4) - Notes on page 93.
Slide 90: Reconciliation of Net Income to Adjusted EBITDA
Exhibit 99.1 Reconciliation of Net Income to Adjusted EBITDA (1) (3) (1) (2) (3) (4) - Notes on page 93.
Slide 91: Reconciliation of Net Income to Adjusted EBITDA
Exhibit 99.1 Reconciliation of Net Income to Adjusted EBITDA (1) (3) (1) (2) (3) (4) - Notes on page 93.
Slide 92: Reconciliation of Net Income to Adjusted EBITDA
Exhibit 99.1 Reconciliation of Net Income to Adjusted EBITDA (1) (3) (1) (2) (3) (4) - Notes on page 93.
Slide 93: Reconciliation Notes for Slides 88-92
Exhibit 99.1 Reconciliation Notes for Slides 88-92 1. Adjusted EBITDA is a non-GAAP financial measure. The Company’s leverage ratio (total consolidated debt to Adjusted EBITDA for the trailing four quarters) is, likewise, a non- GAAP financial measure. Management and some members of the investment c
Slide 94: (1) (2) (3) (4) - Notes on page 95.
Exhibit 99.1 (1) (2) (3) (4) - Notes on page 95.
Slide 95: Reconciliation Notes
Exhibit 99.1 Reconciliation Notes for Slide 94 1. Adjusted income from continuing operations and Adjusted EBITDA are non-GAAP financial measures. The Company’s leverage ratio (total consolidated debt to Adjusted EBITDA for the trailing four quarters) is, likewise, a non-GAAP financial measure. Manag