Investment Opportunity

Navigant Capital Advisors has been retained by North Texas Community Hospital as its exclusive financial advisor with respect to a proposed sale or business combination. All inquiries should be directed to the Navigant professionals below.

COMPANY OVERVIEW North Texas Community Hospital A Provider of Top Quality, Community-Supported Healthcare

Spacious Patient-Centered Rooms

Convenient Access to Healthcare

Advanced Healthcare Technologies

West 380 Family Care Facility d/b/a North Texas Community Hospital (NTCH or Hospital), an independent, not-forprofit 501(c)3 corporation, owns and operates a general acute care, medical/surgical hospital located in Bridgeport, Texas. The organization was founded in 2002 by a group of community leaders, including 11 physicians, who all shared a common vision to serve the growing healthcare needs of this region with a state-of-the-art healthcare facility situated in Wise County. NTCH has 36 licensed beds and provides a full range of healthcare services, including 23 specialties, such as anesthesia, cardiology, clinical laboratory, diagnostic imaging, emergency services, family medicine, gastroenterology, general surgery, hospitalists, neurology, obstetrics/gynecology, oncology, orthopedics, pain management/sports medicine, pediatrics, physical therapy, podiatry, pulmonary medicine, radiology, sleep studies, spine surgery, urology and vascular surgery. The Hospital is accredited by DNV Healthcare and licensed by the Texas Department of State Health Services. NTCH (formerly known as Doctors Hospital) was supported by federal, state and local grants as well as funds from individual founders to build a new community hospital. In January 2007, the Hospital issued $59.3 million in tax-exempt bonds to assist in financing the construction of this highly attractive facility and support working capital needs. NTCH opened in August 2008. The Hospital, situated on a 19-acre campus, consists of a two-story, 99,000 sq. ft. facility connected to a three-story 38,000 sq. ft. medical office building, which is separately owned by local physicians. The hospital includes 30 inpatient rooms, a full-service emergency department with five bays and a level IV trauma designation, three operating rooms, two procedure rooms, four intensive care unit beds, two labor, delivery and recovery rooms, and a complete line of leading imaging technologies, such as a 64-slice CT scan, 1.5 Tesla MRI, a nuclear medicine camera, 1 rad and 1 rad/fluro and PACS. NTCH does lease 3,700 sq. ft. of the adjoining MOB for physical therapy services. NTCH, located approximately 48 miles northwest of Fort Worth, provides healthcare to a total service area (SA) that includes most of Wise, Jack and Montague Counties, which includes approximately 69,000 people. Due to expansion from the Dallas-Fort Worth Metroplex, this SA is expected to grow to 74,000 by 2017, reflecting a growth rate of 7.6% compared with the national average of 3.9% growth over this same five year period. In this SA and resulting from commercial growth along the Alliance Corridor in the northwest section of the Metroplex, the 65 and over age group is expected to grow 26%, compared with the national average growth rate of 16%, to approximately 10,400 residents, which represents 14% of the total population, an increase from the current 12%. Additionally, household income in this SA is $62,250 and the unemployment rates for Wise and Jack Counties, 5.7% and 4.3%, respectively, are significantly below that of the State of Texas (6.8%) and the country (7.9%) and have been on a downward trend since early 2009.
Navigant Capital Advisors, LLC 1180 Peachtree Street, Suite 1900 Atlanta, GA 30309 Ph: (404) 575-4123

Investment Opportunity
NTCH, which does not employ any physicians, currently has 57 physicians on staff providing a complete spectrum of healthcare specialty services throughout the North Texas region spanning from Wichita Falls to Fort Worth. Further, since January 2010, the Hospital has recruited 11 physicians to this market to broaden services. These physicians include: two OB/Gyn specialists, three Family Practice/Obstetrics physicians, a hospitalist, two pain management/sports medicine doctors, a spine surgeon, and a cardiologist. The hospital has also added nuclear medicine and sleep lab services during this same period. As result of these strategic initiatives, the hospitals monthly operating performance has increased significantly as gross patient revenue doubled from $3.4 million in December 2009 to $6.8 million in September 2012, while monthly EBIDA improved from negative $368 thousand to positive $12 thousand during this same period. Additionally, through September 2012, the Hospital has reported positive EBIDA in five out of the last six months evidencing the positive momentum gained from the strategic direction led by the current hospital administrative team. NTCH currently has approximately 130 full-time-equivalent employees (FTEs). The current CEO was hired in January 2010 and brings 34 years of healthcare experience leading hospitals operating in for-profit, nonprofit, governmental, public and private, rural, suburban and urban environments. Since joining the Hospital, he brought in a new management team to drive improvement efforts. This leadership team has implemented operational changes to improve financial reporting, administrative accountability and computerized billing programs. Under the new leadership team, the Hospital has seen improved financial performance, including positive monthly EBIDA margins for the first time in years. Concurrently, NTCH has experienced three consecutive quarters of growth in average adjusted patient days and reach its highest quarterly total in operating room procedures. As part of managements improvement initiative, Navigant Consulting, Inc. was engaged during 2011 to perform a strategic assessment, which included several performance improvement recommendations totaling over $2.1 million in net revenue and expense reduction opportunities. As a result of these recommendations, revenue per patient day has risen 38% in a year to $7,976 as of September 30, 2012. For the nine-month period ended September 2012, NTCH recorded gross patient revenue of $52.7 million and a breakeven adjusted EBIDA (after legal fees associated with restructuring and pre-bankruptcy filing activities).
Trailing Twelve Months Performance
Net operating revenue EBIDA

$1,750 $1,500 $1,250 $1,000 $750

$500
$250 $0

-$250

Due to significant cash flow issues incurred from its opening in combination with insufficient operating results and excessive financial leverage, NTCH filed for protection under Chapter 11 of the U.S. Bankruptcy Code in November 2012. In light of the Hospitals mission, NTCHs Board of Directors seeks to pursue a strategic transaction partnering with a well-capitalized, growth-oriented healthcare provider. For this new strategic partner, the Hospital represents an efficient, highly attractive facility with strong community backing and a loyal, highly integrated medical staff led by a base of primary care physicians. KEY INVESTMENT HIGHLIGHTS

Critical Market Share Position Loyal, Well-Integrated Primary Care Physician Base Successful Service Initiatives Driving Growth
Edward R. Casas, MD Senior Managing Director (847) 583-1619 ecasas@ncacf.com Navigant Capital Advisors, LLC

Attractive, State-of-the-Art Facility Highly Committed Community Support Strong Employee Base and Management Team
Scott Mattice Analyst (404) 575-3840 scott.mattice@ncacf.com Atlanta, GA 30309 Ph: (404) 575-4123

Matt Caine, CFA Managing Director (404) 504-2010 mcaine@ncacf.com 1180 Peachtree Street, Suite 1900