Jiranna Healthcare Balance Sheet December 31, 2013 (in thousands)

2009 2010 2011 2012

Current assets $ 280 $ 124 $ 136 $ 295
Cash 30 45 50 75
Receivables, net 1,340 1,536 1,700 1,896
Inventory 140 175 250 276
Prepaid expenses 40 32 40 53
Total Current Assets 1,830 1,912 2,176 2,595

Short-term investments 600 1,010 1,200 1,300

Plant and equipment 6,580 6,780 6,900 7,200
Less accumulated depreciation -1,660 -1750 -1,800 -1,950
Plants and equipment, net 4,920 5,030 5,100 5,250
Total Assets $ 7,350 $ 7,952 $ 8,476 $ 9,145

Current liabilities
Accounts payable 370 302 356 370
Accrued expenses payable 220 208 212 210
Deferred revenues 60 77 87 87
Total current liabilities 650 587 655 667
Long-term liabilities 2,400 3,000 3,300 3,500
Total Liabilities 3,050 3,587 3,955 4,167

Net assets
Unrestricted 3,000 3,285 3,221 3,678
Temporarily restricted 700 700 700 700
Permanently restricted 600 600 600 600
Total Net Assets 4,300 4,585 4,521 4,978
Total Liabilities and Net Assets 7,350 8,172 8,476 9,145
 2013
$ 355
88
2,400
266
78
3,187

1,510
7,500
-2,350
5,150
$ 9,847

375
215
94
684
3,750
4,434

4,113
700
600
5,413
9,847
Jiranna Healthcare Income Statement December 31, 2013 (in thousands)

2009 2010 2011 2012

Gross patient services revenues (non-GAAP) 8,870 9,490 10,400 11,200
Less deductions from revenues (non-GAAP) (780) (890) (1,000) (1,500)
Net patient service revenues 8,090 8,600 9,400 9,700
Other operating revenues 519 633 679 717
Total operating revenues 8,609 9,233 10,079 10,417

Operating expenses
Salaries and wages 5,497 5,678 5,890 6,170
Supplies 823 850 855 890
Utilities 558 576 590 595
Insurance 44 46 49 54
Depreciation 168 173 175 178
Interest 142 146 154 179
Bad debts 363 375 400 455
Other operating expenses 987 1,299 1,560 1,300
Total operating expenses 8,582 9,143 9,673 9,821

Operating income 27 90 406 596

Nonoperating income 154 195 245 220
Excess of revenue over expenses $ 181 $ 285 $ 651 $ 816

Change in net assets

Unrestricted $ 181 $ 285 $ 651 $ 816
Temporarily restricted - - - -
Permanently restricted - - - -
Total change in net assets 181 285 651 816
 2013
12,050
(1,600)
10,450
980
11,430

6,800
905
620
70
188
198
500
1,350
10,631

799
290
$ 1,089

$ 1,089
-
-
1,089
Jiranna Healthcare Cash Flows, 2013 (in thousands)

Cash Flows from Operating Activities

Cash received from patient and third-party payers $ 10,671
Cash received from operating revenue sources 800
Cash received from nonoperating revenue sources 270
Cash payments to employees (5,600)
Cash payments to suppliers of goods and services (4,800)
Net cash flow from operating activities $ 1,341

Cash flows from Investing Activities

Cash payments for purchase of plant assets (1,200)
Cash payments for purchase of long-term investments (670)
Proceeds from sales of plant assets 80
Proceeds from sale of long-term investments 60
Net cash flow from investing activities (1,730)

Cash flows from Financing Activities

Proceeds from issuance of 6% bonds payable 4,000
Principal payments on long-term debt (300)
Cash payments to retire 7% bonds payable (3,200)
Net cash flow from financing activities 500
Net increase/(decrease) in cash $ 111
 Jiranna Financials 2009 2010 2011 2012 2013
Net Sales 8,609 9,233 10,079 10,417 11,430
Operating Expenses 8,582 9,143 9,673 9,821 10,631
Operating Income 27 90 406 596 799
Net Income 181 285 651 816 1,089

Profitability 2009 2010 2011 2012 2013

Total Profit Margin 2.10% 3.09% 6.46% 7.83% 9.53%
Asset Turnover 1.17 1.16 1.19 1.14 1.16
Return on Assets 2.46% 3.58% 7.68% 8.92% 11.06%
Return on Net Worth 4.21% 6.53% 14.40% 16.39% 20.12%

Liquidity Analysis 2009 2010 2011 2012 2013

Current Ratio 2.82 3.26 3.32 3.89 4.66
Days Cash on Hand 27.33 42.93 48.04 52.05 55.85
Working Capital 1180 1325 1521 1928 2503

Longterm Solvency 2009 2010 2011 2012 2013

Debt Ratio 41.50% 45.11% 46.66% 45.57% 45.03%
Times Interest Earned 2.27 2.95 5.23 5.56 6.50

DuPont 2009 2010 2011 2012 2013

Net Profit Margin 2.10% 3.09% 6.46% 7.83% 9.53%
Asset Turnover 1.171293 1.161092 1.189122 1.139092 1.16076
Equity Multiplier 1.709302 1.821764 1.874806 1.837083 1.819139
DuPont Analysis 4.21% 6.53% 14.40% 16.39% 20.12%
Total Assets 7350 7952 8476 9145 9847

Cash 30 45 50 75 88
Short-term investment 600 1010 1200 1300 1510
Total Current Assets 1830 1912 2176 2595 3187
Total current liabilities 650 587 655 667 684
Unrestricted 3000 3285 3221 3678 4113
Depreciation 168 173 175 178 188

Total Liabilities 3050 3587 3955 4167 4434

Interest 142 146 154 179 198

Long-term liabilities 2400 3000 3300 3500 3750

 year 0 1 2 3 4 5
Nurse Triage Salaries $ 523,800 $ 549,990 $ 577,490 $ 606,364 $ 636,682 $ 668,516 cost of capi 11%
Forecasted ER Cost Reductions $ 400,000 $ 800,000 $ 848,000 $ 900,577 $ 955,512 $ 1,013,798
New IT Specialist's Salary $ 150,000 $ 154,500 $ 159,135 $ 163,909 $ 168,826 $ 173,891
Costs of Facility Renovations $ 30,000 $ - $ - $ - $ - $ -
Necessary Capital Equipment Purchases $ 117,000 $ 3,510 $ 3,510 $ 3,510 $ 3,510 $ 3,510
Net Cash Flow: $ (420,800) $ 92,000 $ 107,865 $ 126,794 $ 146,494 $ 167,881
Present Values of Net Cash Flows: $ (420,800) $ 82,883 $ 87,546 $ 92,711 $ 96,500 $ 99,629 38468.55
Net Present Value: $ 38,469
Internal Rate of Return (IRR): 14%
Modified Internal Rate of Return (MIRR): 13%
Payback Period (# years): 3.64262700179 $ (328,800) $ (220,935) $ (94,141) $ 52,353
Discounted Payback Period (# years): $ 4.70 $ (337,917) $ (230,052) $ (103,258)
 Jiranna Healthcare
Expenses Worksheet, Mid-Year Review
Outpatient
Unit Expense (FY10) Actual Units Total OP Unit Forecast Unit Expence
(FY10) Expenses (FY10) (FY11) (Budget
Outpatient Product Line FY11)

CARDIOLOGY $ 5,478.81 645 $ 3,533,832 677 $5,807.54

ENDOCRINOLOYGY $ 5,478.81 217 $ 1,188,902 228 $5,807.54
FAMILY MED $ 5,476.81 1,105 $ 6,051,875 1,161 $5,802.92
GYN $ 5,478.81 208 $ 1,139,592 219 $5,794.28
ENT $ 5,475.81 690 $ 3,778,309 724 $5,804.36
MENTAL HEALTH $ 498.78 1,287 $ 641,930 1,351 $528.71
NEWBORN $ 5,478.81 698 $ 3,824,209 733 $5,807.54
OB $ 5,478.81 1,430 $ 7,834,698 1,501 $5,807.54
ORTHO $ 5,478.81 601 $ 3,292,765 631 $5,807.54
PEDIATRICS $ 5,477.81 124 $ 679,248 130 $5,806.48
PODIATRY $ 5,478.81 2,050 $ 11,231,561 2,152 $5,807.54
Total Expenses $55,281 9,055 $43,196,921 9,507 $58,582

Jiranna Healthcare
Revenues Worksheet, Mid-Year Review
Outpatient
Actual Units Total OP Revenue Unit Forecasted Unit Price (Budget
Outpatient Product Line Unit Price (FY10)
(FY10) (FY11) For (FY11) FY11)
CARDIOLOGY $ 6,118.73 645 $ 3,946,580.85 677 $6,118.73
ENDOCRINOLOYGY $ 6,103.65 217 $ 1,324,492.05 228 $6,103.65
FAMILY MED $ 6,021.65 1,105 $ 6,653,923.25 1,161 $6,019.06
GYN $ 6,013.65 208 $ 1,250,839.20 219 $5,999.92
ENT $ 6,010.65 690 $ 4,147,348.50 724 $6,010.65
MENTAL HEALTH $ 502.99 1,287 $ 647,348.13 1,351 $502.99
NEWBORN $ 7,014.71 698 $ 4,896,267.58 733 $7,014.71
OB $ 5,713.65 1,430 $ 8,170,519.50 1,501 $5,713.65
ORTHO $ 6,084.18 601 $ 3,656,592.18 631 $6,084.18
PEDIATRICS $ 6,001.65 124 $ 744,204.60 130 $6,001.65
PODIATRY $ 6,018.14 2,050 $ 12,337,187.00 2,152 $6,018.14
Total Revenue $61,604 9,055 $47,775,303 9,507 $61,587
Product Line MDC DescrOPtion
CARDIOLOGY Diseases and Disorders of the Circulatory System (Hypertension, Heart Disease, etc.)
ENDOCRINOLOYGY Diseases and Disorders of the Endocrin System (Diabetes Type 1 & 2, Thyroid Disorders, etc)
FAMILY MED Family Primary Care and Disease Preventative Services
GYN Diseases and Disorders of Women's Reproductive Health
ENT Diseases and Disorders of the Ear, Nose, Mouth, and Throat
MENTAL HEALTH Mental Diseases and Disorders
NEWBORN Newborns and Other Neonates with Conditions Originating in Perinatal Period
OB Pregnancy, Childbirth, and the Puerperium
ORTHO Diseases and Disorders of the Musculoskeletal System and Connective Tissue
PEDIATRICS Pediatric Primary Care and Disease Prevention Services (0 - 18 years)
PODIATRY Diseases and Disorders of the Feet and Lower Limbs
w

FY11 Budget (FY10+6% Inflation) Actual OP Expenses

Acutal Mid (FY11 YTD)
Year Units
(FY11)

$ 3,931,704 197 $ 1,144,085

$ 1,324,119 112 $ 650,444
$ 6,737,188 636 $ 3,690,656
$ 1,268,947 116 $ 672,136
$ 4,202,356 421 $ 2,443,635
$ 714,283 736 $ 389,128
$ 4,256,926 433 $ 2,514,664
$ 8,717,115 868 $ 5,040,943
$ 3,664,557 274 $ 1,591,266
$ 754,842 72 $ 418,066
$ 12,497,823 800 $ 4,646,031
$48,069,860 4,665 $23,201,056

Projected OP Revenue For FY11 Actual (FY11 Actual OP Revenue

YTD) (FY11 YTD)
$ 4,142,380 197 $ 1,205,390
$ 1,391,632 112 $ 683,609
$ 6,988,125 636 $ 3,828,120
$ 1,313,983 116 $ 695,991
$ 4,351,711 421 $ 2,530,484
$ 679,539 736 $ 370,200
$ 5,141,782 433 $ 3,037,369
$ 8,576,189 868 $ 4,959,448
$ 3,839,118 274 $ 1,667,066
$ 780,215 72 $ 432,119
$ 12,951,037 800 $ 4,814,512
$50,155,711 4,665 $24,224,308
 Jirann
Pro
Projected (FY11)

Revenue $ 50,155,711
Expenses $ 48,069,860
Profit $ 2,085,851

Jirann
FY11 YTD
I
Outpatient Product Line FY11 YTD Budget

CARDIOLOGY $ 1,965,852
ENDOCRINOLOYGY $ 662,060
FAMILY MED $ 3,368,594
GYN $ 634,474
ENT $ 2,101,178
MENTAL HEALTH $ 357,142
NEWBORN $ 2,128,463
OB $ 4,358,558
ORTHO $ 1,832,279
PEDIATRICS $ 377,421
PODIATRY $ 6,248,912
Total Outpatient Expenses $ 24,034,930

Jirann
Reve
I
Outpatient Product Line FY11 YTD Budget

CARDIOLOGY $ 2,071,190
ENDOCRINOLOYGY $ 695,816
FAMILY MED $ 3,494,063
GYN $ 656,992
ENT $ 2,175,856
MENTAL HEALTH $ 339,770
NEWBORN $ 2,570,891
OB $ 4,288,095
ORTHO $ 1,919,559
PEDIATRICS $ 390,108
PODIATRY $ 6,475,519
Total Outpatient Revenues $ 25,077,856

Jirann
Pro
I
Outpatient Product Line FY11 YTD Budget Profit

CARDIOLOGY 105,338
ENDOCRINOLOYGY 33,757
FAMILY MED 125,469
GYN 22,518
ENT 74,678
MENTAL HEALTH (17,372)
NEWBORN 442,428
OB (70,463)
ORTHO 87,281
PEDIATRICS 12,687
PODIATRY 226,607
Total Profit 1,042,926
 Jiranna Healthcare
Projected Profit
Projected Actual
(mid-year) (mid-year)
$ 25,077,856 $ 24,224,308
$ 24,034,930 $ 23,201,056
$ 1,042,926 $ 1,023,252

Jiranna Healthcare
FY11 YTD Expense Variances
II III
Actual OP Expenses (FY11 YTD) Expense Variance
(I-II)
$ 1,144,085 (821,767)
$ 650,444 (11,615)
$ 3,690,656 322,062
$ 672,136 37,663
$ 2,443,635 342,457
$ 389,128 31,987
$ 2,514,664 386,201
$ 5,040,943 682,386
$ 1,591,266 (241,013)
$ 418,066 40,645
$ 4,646,031 (1,602,881)
$ 23,201,056 -$ 833,874

Jiranna Healthcare
Revenue Variances
II III
Actual OP Revenue (FY11 YTD) Revenue Variance
(I-II)
$ 1,205,390 (865,800)
$ 683,609 (12,207)
$ 3,828,120 334,058
$ 695,991 38,999
$ 2,530,484 354,628
$ 370,200 30,431
$ 3,037,369 466,478
$ 4,959,448 671,354
 $ 1,667,066 (252,493)
$ 432,119 42,012
$ 4,814,512 (1,661,007)
$ 24,224,308 -$ 853,548

Jiranna Healthcare
Profit Variances
II III
Actual OP Profit Profit Variance
(FY11 YTD) (I-II)
61,305 (44,033)
33,164 (592)
137,464 11,996
23,855 1,337
86,849 12,171
(18,928) (1,556)
522,705 80,277
(81,495) (11,032)
75,800 (11,481)
14,053 1,366
168,481 (58,126)
1,023,252 (19,673)
 Revised FY11 Projection

$ 48,448,616
$ 46,402,112
$ 2,046,504

IV
Favorable / Unfavorable

Favorable
Favorable
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Favorable
Unfavorable
Favorable
Favorable

IV
Favorable / Unfavorable

Unfavorable
Favorable
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Unfavorable
 Favorable
Unfavorable
Favorable
Favorable

IV
F/U

Unfavorable
Favorable
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Unfavorable
Favorable
Unfavorable
Favorable
Favorable