Systems Data Edition/April 2019 The Hertel Report - All Rights Reserved ©2019

The Source that Connects the Healthcare Community Location.Location.Location Banner Children’s Location, Location, Location Banner University Pilot Program Medical Center Banner Children’s Urgent Care takes Phoenix the scary out of an unexpected visit. Digital tools and video stories help prep pediatric patients with autism and other special needs. 16 Largest Stories Greater Phoenix Non-Profit, New Tower Baywood Medical Center System, Completed November 2018 Behavioral Health Hospital Private Employer Boswell Medical Center in Arizona 372,476 Sq. Ft. Cardon Children’s Medical Center Tucson Del E. Webb Medical Center University Medical Center Tucson 757 Beds Desert Medical Center University Medical Center South $417M Estrella Medical Center Rural Arizona US News & World Report Gateway Medical Center Casa Grande Medical Center Best in America Goldfield Medical Center Page Hospital 2018-2019 Made with Heart Hospital Payson Medical Center Banner University Medical Center Phoenix Banner University Medical Center Tucson Ironwood Medical Center Now No. 1: Tucson, No. 3 in Arizona No. 2: Arizona & Phoenix Metro Building in Thunderbird Medical Center Among Best in Nation Among Best in Nation Chandler University Medical Center Phoenix 3 Specialties 5 Specialties Arizona’s Largest • Nephrology • Neurology & Neurosurgery Three New Rehab Hospitals Employer • Pulmonology • Cardiology & Heart Surgery by 2020 • Gynecology • Nephrology 44,000 • Pulmonology A Leader in Inpatient Select Medical Holdings July 2018 Estimate • Geriatrics Diabetes Care $120M Deal Local FTE

St. Joseph’s Hospital & Location, Location, Location Greater Phoenix Medical Center Arizona General Hospital - Laveen & 1st Arizona General Hospital - Mesa St. Joseph’s Westgate Mercy in AZ Medical Center Gilbert Arizona Orthopedic & Surgical Hospital Specialty Hospital Center of Excellence 5 Robotic Surgery Stories Arizona Spine & Joint Hospital 60-Bed DIGNITY HEALTH US News & World Report NICO CommonSpirit Mercy Gilbert Medical Center Best Hospitals in America 50-Bed Peds 2019 Chandler Regional Medical St. Joseph’s Hospital & Medical Center Center Dignity Health & Among Best in Nation Catholic Health Initiatives Orthopedic & Spine Inpatient 2 Specialties Barrow Neurological Institute Merger Creates Surgical Hospital (OASIS) • Neurology & Neurosurgery Performs more brain surgeries than Tower • Gynecology Opens CommonSpirit Health any other hospital in the nation. 2020

www.thehertelreport.com DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW ABRAZO COMMUNITY HEALTH NETWORK HONORHEALTH STEWARD Tenet

Greater Phoenix Tenet Greater Phoenix Greater Phoenix Circle Abrazo Arizona Heart Hospital of HH Dear Valley Medical Center Mountain Vista Medical Center Excellence Abrazo Arrowhead Hospital HH John C. Lincoln Medical Center St. Luke’s Medical Center HH Scottsdale Osborn Medical Center Tempe St. Luke’s Hospital HH Scottsdale Shea Medical Center Florence Hospital in Anthem New

Arizona Central Campus HH Scottsdale Thompson Peak Medical Center Behavioral Health Hospital CMS 5 Thrombectomy-Capable Stroke Best Stars St. Luke’s Behavioral Health Center Center Certification Specialty Hospital Orthopedics Greenbaum Surgical Specialty Hospital Hedley Orthopaedic Institute Mesa & Surprise Re-Branded As Micro-hospitals Cancer Care Steward Orthopedic & Virginia G. Piper Cancer Center 13 ER Beds - 8 Inpatient Sports Medicine Center Official Partner of the Sonoran Medical Center Phoenix Suns & Phoenix Mercury North Phoenix Southern Arizona 40 Beds - Opens 2020 St. Luke’s Medical Center’s Carondelet St. Mary’s Hospital Dr. Richard Heuser Carondelet St. Joseph’s Hospital Home of Ortho CM, LLC 2018 Class of Master Interventionists of The Society for Cardiovascular Carondelet Holy Cross Hospital 90 Top Orthopedic Specialists Representing 26 Practices Angiography and Interventions Location, Location, Location Location, Location, Location Location, Location, Location

Arizona’s Largest Healthcare Employers 1. Banner Health 2. HonorHealth 3. Dignity Health 4. Mayo Clinic 5. UHC 50K AZ FTE 11K AZ FTE 11K AZ FTE 7K AZ FTE 6K AZ FTE Phoenix Business Journal July 2018

www.thehertelreport.com DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW Phoenix Children’s Maricopa Integrated Health System Mayo Clinic

Greater Phoenix Greater Phoenix Greater Phoenix Phoenix Children’s Hospital Maricopa Medical Center Mayo Clinic Hospital US News & World Report The State’s Largest & Longest Serving NO. 1 HOSPITAL IN ARIZONA Best Hospitals in America Public Teaching Hospital 2018-2019 US News & World Report Top 50 Departments in the Nation New Name Best Hospitals in America 2018-2019 No. 9 Phoenix Children’s Heart Center Valleywise No. 20 Center for Cancer & Blood Disorders Top 30 in the Nation No. 23 Nephrology Health Abdominal aortic aneurysm repair No. 24 Orthopedics Aortic valve surgery No. 26 Gastroenterology & GI Surgery Behavioral Health Hospital Chronic obstructive pulmonary disease No. 28 Barrow Neurological Institute & PC West Phoenix, Formerly Maryvale Hospital Colon cancer surgery No. 28 Urology Opening 2020 Congestive heart failure No. 34 Neonatology West Valley Primary & Specialty Heart bypass surgery No. 35 Diabetes & Endocrinology Care Center Hip replacement No. 39 Pulmonology Knee replacement Society of Thoracic Surgeons Medical Training Lung cancer surgery Congenital Top Creighton University Cardiothoracic Surgery Top 10 Medical School Rating Arizona Health Education Alliance Greater Phoenix Chamber’s Maricopa Integrated Health System Mayo Clinic Alix School of Medicine 2018 Exceptional Innovator Dignity Health St. Joseph’s Hospital Rochester, Minn. Large Business of the Year District Medical Group Phoenix & Scottsdale Jacksonville, Fla. Location, Location, Location Location, Location, Location Location, Location, Location

Operating Income Trends Arizona Hospital Numbers 2019 2016 $468M Uncompensated Operating Care Costs Margins 2017 2017 $266M $855M 2017 3.1% 2018 $257M 2018 5.4% 2018 February 2019 Report $740M 2019 $292M 2019 4.6% Responses from 71 percent of Arizona hospitals

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DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW CMS Hospital Star Ratings: Rural Health System Scores Big

NORTHERN ARIZONA HEALTHCARE Also Winning 5-Stars

HONORHEALTH Scottsdale Thompson Peak MC Flagstaff Scottsdale Verde Valley Medical Center Northern Arizona Healthcare MAYO CLINIC Cottonwood Mayo Clinic Northern Arizona Scottsdale Flagstaff Medical Center Verde Valley Medical Center ABRAZO DIGNITY HEALTH Arrowhead Campus Sedona Campus ER Chandler Regional Medical Center Medical Clinic Central Campus Mercy Gilbert Medical Center

New Expanded Facilities & Programs Scottsdale Campus St. Joseph’s Hospital over 3 years New Era Sedona West Campus Strategic Village of Oak Creek HONORHEALTH Camp Verde Plan Deer Valley Medical Center Cottonwood BANNER Flagstaff $300M Baywood Medical Center John C. Lincoln N. Mountain

Boswell Medical Center Scottsdale Osborn Medical Center

Casa Grande Medical Center Scottsdale Shea Medical Center

Del. E. Webb Medical Center MARICOPA INTEGRATED HEALTH SYSTEM Desert Medical Center Maricopa Medical Center

Estrella Medical Center Of the 77 hospitals in Arizona listed about 27 percent didn’t receive a score because two few Gateway Medical Center measures or groups were reported or results were not available during the rating period. Goldfield Medical Center Arizona Star Ratings Fast Facts 5% 1-star rating Heart Hospital 29% 2-star rating 36% 3-star rating Ironwood Medical Center 25% 4-star rating 7% 5-star rating Save the Date Payson Medical Center Take a look at how Arizona hospitals scored Market Update Thunderbird Medical Center across every county and whether their star rat- ings went up, down or remained flat from the last University MC, Phoenix release from CMS in December 2017.

Wednesday University MC, South Campus Tucson: June 26 University MC, Tucson Campus Friday Phoenix: June 28 Friday Flagstaff: July 12

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DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW COMMUNITY INVESTMENT DRIVES NON-PROFIT EXEMPT STATUS FOR ARIZONA HOSPITALS The mix of non-profit and proprietary hospi- After the 2014 roll out of the Affordable Care Act tals in Arizona provide urban consumers many (ACA), uninsured rates fell across the country Arizona Non-Profit Hospitals/Systems choices, while rural communities have limited and so did uncompensated care costs; drop- Hospital/System Year Revenue options. The benefits communities reap v tax ping to a 15-year low in 2015. Charity care in Banner Health 2018 $6.3B revenues lost keeps non-profit hospitals under FY 2016 also plummeted to just 1.4 percent of a scrutiny. hospital’s collective operating revenue, accord- Dignity Health 2017 $19.9B ing to a Modern Healthcare analysis. HonorHealth 2016 $1.7B Nonprofit hospitals may qualify for favored tax Kingman Regional Medical treatment under federal and a variety of state Prior to the roll out of HealthCare.Gov in 2010, 2017 $309M and local income, property, and sales tax laws. non-profit hospitals set aside around 10 percent Center In addition to tax exemptions, nonprofit status of their operating expenses to help their com- Maricopa Integrated Health 2017 $602M allows hospitals to benefit from tax-exempt munities through charity care, unreimbursed System bond financing and to receive charitable con- costs from Medicaid and other government tributions that are tax-deductible to the donors. payers, medical research and education. Mayo Clinic 2018 $12.6B Northern Arizona 2017 $611M In Feb. 2019 Senate Finance Committee Chair- In Arizona, 2014 uncompensated care costs for Healthcare man Chuck Grassley continued his years-long all the state’s hospitals were estimated at $927 Phoenix Children’s Hospital 2017 $879M effort to ensure tax-exempt hospitals are fulfilling million. By January 2018 they had fallen more the standards for serving communities and low-in- than 50 percent – with costs estimated at $408 Summit Healthcare 2016 $162M come patients. million. But for states like Arizona that expand- Regional Medical Center ed Medicaid, it also means hospitals are reim- Tuba City Regional IRS RULES 2016 $165M bursed below commercial rates and in many Healthcare A Tax-Exempt Hospital Must Meet: cases, below costs; reducing profits and chal- lenging margins. And while many celebrated the Tucson Medical Center 2017 $534M • Community health needs ACA’s successful reduction of uninsured and Yavapai Regional Medical assessment requirements 2017 $317K uncompensated care rates it was also hoped Center • Financial assistance policy the change would push nonprofit hospitals to requirements Yuma Regional Medical use the savings to invest more in public health COMMUNITY HEALTH2017 $448M • Requirements on charges billed to initiatives. Center patients Sources: System/HospitalBENEFITS Financial Reports - Partial list • Billing and collection requirements. Non-profit hospitals have watched their exempt status vanish by not playing by the rules. The Defined In his letter to the IRS, Grassley wants answers first move by the IRS came in 2017 after an Community Benefit Defined to dig into whether any non-profit hospitals acute hospital failed to perform a community deemed at risk of non-compliance since April health needs assessment (CHNA) report, cre- Charity Care & 2018 made a reasonable effort to determine if ate and adopt a strategy for implementation or Subsidized Health Services a patient was eligible for financial assistance or make the report available to the general public. used debt collection practices on patients that would qualify. Another revocation of non-profit status that Participation in Government same year came after a rural hospital’s lease “Unfortunately, according to reports, it ap- Programs: Medicaid pears that at least some of these tax-ex- agreement with a for-profit resulted in the IRS empt hospitals have cut charity care, determining the hospital was not operated ex- clusively for a tax-exempt purpose. despite increased revenue, calling into question their compliance with the stan- Medical Education According to National Law Review, the hospital dards set by Congress.” leased its land, property, and equipment to the Chuck Grassley for-profit, which also controlled the hospital’s Senate Finance Committee Chairman operations, including revenue collection. Health Services Research CHARITY CARE - COMMUNITY BENEFIT

Banner Health Dignity Health HonorHealth Community Health $73.4M $889M $200M Improvement 2019 2018 2016 NAH MIHS Mayo Clinic Cash or In-Kind $29M $1B $101M 2018 2015 2016 Contributions

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Made with MICRO-HOSPITAL & FREE-STANDING EMERGENCY ROOM GROWTH Spotting a Micro-Hospital Arizona hospital systems aren’t just large, ur- Budget for a Better America ban campuses; their reach extends to new Effective CY 2020, President Trump’s proposed Licensing Short-Term Acute Care Hospital neighborhoods with branded micro-hospitals budget tackles Medicare payment disparities and freestanding emergency rooms. between on-campus outpatient departments and physician offices by making the rates the Costs Higher than Urgent Care It’s a popular strategy. Micro-hospitals provide same, or site neutral. Medicare estimated it Lower than Traditional Hospital patients with “full access to (fill in the hospital’s paid rates that were $75 to $85 more for the name here) network of physicians and special- same services in a hospital outpatient setting Size ists,” in other words, a reliable stream of rev- with patients on the hook for the 20 percent 20,000 to 75,000 square feet enue. co-insurance. 2 to 25 Inpatient Beds Estimated Savings: $131 billion. Outpatient services featured in such facilities Healthcare Services Offered have also boosted hospitals’ bottom lines due FREE-STANDING ERs ER to higher reimbursement levels, but a recent Surgery Abrazo Community Health payment ruling by CMS and the President Diagnostic Imaging Trump’s federal budget proposals could trim Buckeye Emergency Center Buckeye Labs hospital profits. Peoria Emergency Center Peoria Pharmacy Outpatient Services Outpatient Prospective Payment System Dignity Health In the summer of 2018, MedPac told Congress Ahwatukee ER Phoenix in its “Medicare and the Health Care Delivery ARIZONA MICRO-HOSPITALS Chandler ER Chandler System,” summer report to Congress, to ad- Abrazo Community Health - Coming Soon! dress the proliferation of off-campus emer- Chandler-McQueen ER Chandler gency departments in certain urban locations, Abrazo Mesa Hospital - 2019 Mesa Gilbert ER Gilbert where growth appears to be driven more by Abrazo Surprise Hospital - Surprise Medicare payment policy than by unmet need Glendale ER Glendale 2020 for services. Goodyear ER Goodyear Dignity Health Arizona General Hospital - MedPac’s recommendation would reduce Mesa-Baseline ER Mesa Mesa Medicare’s payments to hospital-owned Mesa Mesa-Power ER Mesa free-standing emergency rooms, saving mon- Arizona General Hospital - Phoenix ey for both beneficiaries and the Medicare pro- Surprise ER Surprise Laveen gram. In November, CMS reaffirmed its com- HonorHealth mitment to site-neutrality in its 2019 Outpatient Northwest Health Care - Coming Soon! Prospective Payment System (“OPPS”) final Sonoran Health & Emergency Center Phoenix Northwest Sahuarita - 2020 Sahuarita rule by reducing reimbursement for clinic visits Northwest Health Care in off-campus provider-based hospital depart- Northwest Emergency Center at ments by as much as 40 percent. Tucson Marana Market Outlook “These cuts directly undercut the clear intent Northwest Emergency Center at Vail Tucson Micro-hospitals represent a potential area of growth, particularly in areas of Congress to protect hospital outpatient Copper Queen Community Hospital departments because of the real and crucial where inpatient and emergency care differences between them and other sites of Douglas Freestanding ED Douglas are needed but demand is insufficient care,” to warrant construction of a new, Northern Arizona Healthcare large acute care facility. Rick Pollack President & CEO VVMC Sedona Campus ED Sedona Becker’s Hospital Review The American Hospital Association

The American Hospital Association and the As- sociation of American Medical Colleges filed a Save the Date lawsuit against the U.S. Department of Health and Human Services (HHS) arguing the pay- Market Update ment reduction was “ill-advised and unlawful” and “threatens access to care and hospitals’ Wednesday Friday Friday and health systems’ ability to continue to meet the needs of their patients, especially those Tucson Phoenix Flagstaff with the most complex needs and those in vul- June 28 July 12 nerable communities.” June 26

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DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW HOSPITAL & HEALTH SYSTEM OWNED ACO REPORT Hospital-Affiliated ACOs

Membership 35K Membership 17K Arizona Care Network John C. Lincoln MSSP & Next Generation MSSP Hospital-affiliated ACOs participating in the Earned Generated Earned Generated Quality Quality Year Shared Savings/ Year Shared Savings/ MSSSP achieved about $174M in net Score Score Savings Losses Savings Losses savings to Medicare, out of $313M total net savings. 2014 0 -$15M 82.04% 2014 0 -$467,198 88.19% 2015 0 -$6.1M 96.25% 2015 0 -$17.4M 93.62% 2016 0 $5.8M 89% 2016 0 -$27M 93% 2017 0 -$3.6M 82% 2017 0 -$11.7M 95% Hospital-affiliated ACOs participating in the Arizona Care Network is a partnership between Digni- HonorHealth ACO, managed by Innovation Care MSSSP achieved an average quality score ty Health & Tenet Health Systems (Abrazo Partners Community Health). of 92.3%

Membership 7K Membership 16K Arizona Connected Care North Central Accountable Care MSSP MSSP Hospital-affiliated ACO spending was about $690M less than their benchmarks. Earned Generated Earned Generated Quality Quality Year Shared Savings/ Year Shared Savings/ Score Score Savings Losses Savings Losses APPROACHES Hospitals & Health System ACO Participation 2014 0 -$5.2M 89.69% 2015 0 -$1.2M P4R 2015 $2.2M $4.8M 94.09% 2016 0 -$7M 93% Initiate & lead an ACO with a physician group 2016 0 -$14.5M 88% 2017 0 -$6.1M 99% Participate in an ACO 2017 0 -$2.8M 95% Owned by Yavapai Regional Medical Center and partners with Summit Healthcare’s NEAR Network. Owned by Tucson Medical Center and independent Contract with a physician group physicians for health system services and resources without appearing on the physician group ACO's Membership 53K Membership 26K participation list Banner Health Network Scottsdale Health Partners Participate in another manner Pioneer/Track 3 MSSP

Earned Generated Earned Generated Source: American Hospital Association, January 2019 Quality Quality 2017 Data by Leavitt Partners Insight, LLC Year Shared Savings/ Year Shared Savings/ Score Score Savings Losses Savings Losses 2014 $18.7M $29.4M 87.6% 2014 $1.8M $3.7M NA HOSPITAL & HEALTH SYSTEM 2015 $24.6M $35M 95.23% 2015 $4.5M $9.94M 93.76% ACO INVESTMENT • Network Development & Management 2016 $11M $15M 91.86% 2016 $8.8M $18.7M 97% Creating & maintaining post-acute careMade with(PAC) 2017 0 -$3.9M P4R 2017 $19.5M $46.2M 86% networks & relationships

BHN has now moved to an MSSP AC0 Track 3. HonorHealth ACO, managed by Innovation Care • Robust Care Coordination, Utilization Pioneer program ended in 2016. Partners Management & Quality Improvement Health coaches & navigators • Clinical Information Systems Hospital & Health Systems Total Investment to Start & Maintain ACOs Interoperable EHR to link ACO providers, misc. infrastructure investments START UP: $5 to $12M (based on size) • Data Analysis & Reporting Systems ONGOING: $6.3-$14.1M (annually) Source: American Hospital Association

www.thehertelreport.com DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW Arizona HONORHEALTH Hospital & Health System Chief Executive Officer Todd LaPorte Leadership Report Senior VP/Chief Operating Officer Alice Pope Senior VP/Chief Quality Officer Stephanie Jackson, MD Senior VP, Chief Physician ABRAZO COMMUNITY HEALTH John Neil, MD Executive Chief Executive Officer Frank Molinaro Senior VP, CEO Hospitals & Chief Kim Post Chief Operating Officer Phil Fitzgerald Clinical Officer Chief Medical Officer William Ellert, MD Senior VP, CEO Population Health Richard Silver, MD Mgmt. & Chief Strategy Officer Chief Nursing Officer Davey Ellison Chief Transformation Officer Jim Whitfill, MD Chief Strategy Officer Kyle Bennion

Chief Financial Officer Asja DiMuria MARICOPA INTEGRATED HEALTH SYSTEM Chief Human Resources Officer Erin Gonzalez President/Chief Executive Officer Steve Purves Chief Operating Officer Kris Gaw BANNER HEALTH Richard Mutarelli Chief Executive Officer Peter S. Fine Chief Nursing Officer Sherry Stotler, RN Chief Operating Officer Becky Kuhn Chief Clinical Officer Marjorie Bessel, MD MAYO CLINIC Chief Strategy & Growth Officer Scott Nordlund Chair, Board of Trustees Samuel A. Di Piazza Jr. Chief Financial Officer Dennis Laraway President/CEO Gianrico Farrugia, MD Chief Human Resources Officer Naomi Cramer AZ Interim - Chief Executive Officer Lois E. Krahn, MD

Chief Legal Officer David Bixby PHOENIX CHILDREN’S Chief Marketing Officer Alexandra Morehouse President, Chief Executive Officer Robert L. Meyer Chief Information Officer Deanna Wise Executive VP, Chief Operating Officer David Higginson President, Arizona Region Todd Werner Executive VP, Chief Financial Officer Craig McKnight President, Western Region Margo Karsten Chief Medical Officer Michael Ritchey, MD President, University Medicine Division Larry Goldberg Chief Clinical Integration Officer Jodi Carter, MD President, Banner Health Network Chuck Lehn Senior VP, Strategic Planning Rich Lehmuth DIGNITY HEALTH Senior VP, Human Resources Page Bachman Senior VP, Patient Care Services & Chief Executive Officer Linda S. Hunt Julie Bowman, RN Chief Nursing Officer Chief Financial Officer Douglas Watson Senior VP & Executive Director, Chad Johnson Vice President of Managed Care Ethel Hoffman Phoenix Children’s Care Network

Vice President of Human Resources Maureen Sterbach STEWARD HEALTH Vice President of External Affairs Shirley Gunther Chairman & Chief Executive Officer Ralph De La Torre, MD Chief Physician Executive Keith A. Frey, MD Chief Operations Officer John Polanowicz President/CEO - Mercy Gilbert & Mark Slytera Chief Medical Officer Joseph Weinstein, MD Chandler Regional Medical Centers Regional VP, Arizona Douglas Luckett President/CEO - St. Joseph’s Patty White Hospital & Medical Center President, Steward Medical Group Sanjay Shetty, MD

www.thehertelreport.com DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW TOP ARIZONA HEALTH SYSTEMS’ HOSPITAL SIZE & SCOPE TOTAL GROSS % NET NON TOTAL HEALTH SYSTEM CITY TYPE PATIENT PATIENT INCOME OR # BEDS PROFIT DISCHARGES DAYS REVENUE LOSS BANNER HEALTH

Banner Baywood Medical Mesa Acute Yes 16,388 74,890 $1,618,733,543 2.3 340 Center

Banner Behavioral Health Scottsdale Psych Yes 3,671 24,932 $77,105,651 -9.7 104 Hospital

Banner Boswell Medical Center Sun City Acute Yes 13,532 62,146 $1,728,810,368 1.4 525

Banner Casa Grande Casa Grande Acute Yes 6,109 21,989 $723,627,526 -1.2 164 Medical Center

Banner Del E. Webb Sun City West Acute Yes 15,338 61,753 $1,776,802,137 2.8 366 Medical Center

Banner Desert Medical Center Mesa Acute Yes 35,465 157,061 $3,290,050,635 3.1 615

Banner Estrella Medical Center Phoenix Acute Yes 16,385 64,321 $1,796,832,704 2.8 317

Banner Gateway Medical Gilbert Acute Yes 12,038 52,589 $1,754,924,227 3.5 165 Center

Banner Goldfield Medical Apache Acute Yes 551 1,600 $128,116,317 -3.0 20 Center Junction

Banner Heart Hospital Mesa Acute Yes 4,664 20,719 $852,638,039 4.5 111

Banner Ironwood Medical San Tan Valley Acute Yes 2,848 9,996 $383,636,694 0.8 53 Center

Banner Payson Medical Center Payson Acute Yes 1,571 4,191 $252,282,742 -9.0 25

Banner Thunderbird Glendale Acute Yes 28,508 113,729 $2,447,353,136 3.1 555 Medical Center

Banner - University Medical Phoenix Acute Yes 29,852 161,491 $3,542,592,970 1.3 708 Center Phoenix

Banner - University Medical Tucson Acute Yes 21,277 126,598 $3,126,425,788 -2.3 479 Center Tucson

Banner University Medical Tucson Acute Yes 21,277 126,598 $3,126,425,788 -2.3 479 Center South Campus DIGNITY HEALTH

Arizona General Hospital Laveen Acute Yes 327 858 $522,242,015 -5.4 9

Arizona Specialty Hospital Chandler Acute No 1,071 2.095 $152,911,276 2.6 24

Arizona Spine and Joint Mesa Acute No 1,261 1,986 $169,690,113 4.3 23 Hospital

Chandler Regional Medical Chandler Acute Yes 24,755 106,940 $3,145,344,427 0.9 338 Center

Mercy Gilbert Medical Center Gilbert Acute Yes 14,954 59,480 $1,613,667,255 0.4 198

Orthopedic and Spine Phoenix Acute No 3,792 7,594 $233,399,071 2.5 64 Inpatient Surgical Hospital

Saint Joseph's Hospital and Phoenix Acute Yes 30,567 153,353 $3,998,588,174 -1.0 571 Medical Center ABRAZO COMMUNITY HEALTH

Abrazo Arrowhead Hospital Glendale Acute No 15,644 64,013 $2,011,135,669 1.6 262

Abrazo Central Campus Phoenix Acute No 7,851 32,546 $835,680,116 1.5 145

Abrazo Scottsdale Campus Phoenix Acute No 6,274 22,779 $513,046,777 -0.8 127

Abrazo West Campus Goodyear Acute No 13,318 53,525 $1,611,074,145 0.7 323

Source: American Hospital Directory

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DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW TOP ARIZONA HEALTH SYSTEMS’ HOSPITAL SIZE & SCOPE TOTAL GROSS % NET NON TOTAL HEALTH SYSTEM CITY TYPE PATIENT PATIENT INCOME OR # BEDS PROFIT DISCHARGES DAYS REVENUE LOSS HONORHEALTH

HonorHealth Deer Valley Phoenix Acute Yes 11,179 48,948 $1,699,957,944 4.8 204 Medical Center

HonorHealth John C. Phoenix Acute Yes 12,299 60,408 $2,139,864,718 2.0 262 Lincoln Medical Center

HonorHealth Rehabilitation Scottsdale Rehab No 989 12,944 $41,511,940 1.2 50 Hospital

HonorHealth Scottsdale Scottsdale Acute Yes 13,721 62,256 $1,883,889,063 4.1 440 Osborn Medical Center

HonorHealth Scottsdale Shea Scottsdale Acute Yes 14,860 88,648 $2,415,584,746 4.4 425 Medical Center

HonorHealth Scottsdale Thompson Peak Scottsdale Acute Yes 6,601 21,486 $884,909,740 13.6 120 Medical Center STEWARD HEALTH

Mountain Vista Medical Center Mesa Acute No 7,056 28,721 $925,770,598 0.2 162

Saint Luke's Behavioral Health Phoenix Psych No 5,049 41,701 $130,996,259 4.7 124 Center

Saint Luke's Medical Center Phoenix Acute No 7,291 24,759 $921,170,401 -0.4 256

Tempe Saint Luke's Tempe Acute No 3,320 10,217 $15,389,276 -2.0 65 Hospital PHOENIX CHILDREN’S

Phoenix Children’s Hospital Phoenix Childrens Yes 13,017 76,990 $2,325,294,962 3.7 433 MIHS

Maricopa Medical Center Phoenix Acute Govt 12,349 55,152 $2,045,897,859 5.5 542 MAYO

Mayo Clinic Hospital Phoenix Acute Yes 15,008 71,301 $2,677,288,271 5.1 276 CTCA

Cancer Treatment Center Goodyear Acute No N/R N/R N/R N/R N/R of America CARONDELET

Carondelet Heart & Tucson Acute No 1,162 4,175 $128,261,791 -18.6 60 Vascular Institute

Carondelet Holy Cross Hospital Nogales CAH Yes 1,056 3,471 $133,681,078 2.0 25

Carondelet Saint Joseph's Tucson Acute Yes 14,451 62,645 $1,469,606 0.8 486 Hospital

Carondelet Saint Mary's Tucson Acute Yes 10.190 48,695 $1,262,782,067 0.0 400 Hospital

Source: American Hospital Directory NOTES: Limited Data Available: Saint Joseph’s Westgate Medical Center reports in a Fort Defiance Indian Hospital The Hertel Report consolidated form with Saint Joseph’s Hospital and Los Ninos Hospital 29455 N. Cave Creek Road Medical Center Phoenix Indian Medical Center Select Specialty Hospital - Phoenix Downtown reports in a Sells Hospital Suite 118 Box 453 consolidated form with the Scottsdale campus Sierra Tucson Cave Creek, AZ 85331 Tuba City Indian Medical Center 602-679-4322 No Financial Data Available: Whiteriver Indian Hospital Cancer Treatment Centers of America, Goodyear. Publisher: Jim Hammond Dignity Health East Valley Rehabilitation Hospital NR = Not Reported Managing Editor: Paula Blankenship Hacienda Children’s Hospital Scottsdale Liberty Hospital, formerly Freedom Pain Hospital.

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DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW REMAINING ARIZONA HEALTH SYSTEMS’ HOSPITAL SIZE & SCOPE TOTAL GROSS % NET NON TOTAL HEALTH SYSTEM CITY TYPE PATIENT PATIENT INCOME OR # BEDS PROFIT DISCHARGES DAYS REVENUE LOSS COMMUNITY HEALTH SYSTEMS

Northwest Medical Center Tucson Acute No 15,018 56,964 $2,181,374,208 2.1 294

Oro Valley Hospital Tucson Acute No 5,028 16,527 $769,687,623 1.7 146

Western Ariz. Regional Bullhead City Acute No 4,688 19,506 $1,004,538,031 3.2 139 Medical Center Encompass Health

Encompass Health Rehabilitation Mesa Rehab No 1,468 19,551 $43,102,170 8.0 60 Hospital of East Valley

Encompass Health Rehabilitation Tuscon Rehab No 990 12,205 $26,689,098 2.6 60 Hospital of Northwest Tucson

Encompass Health Rehabilitation Tucson Rehab No 1,511 19,704 $43,910,484 8.6 80 Institute of Tucson

Encompass Health Rehabilitation Scottsdale Rehab No 1,022 12,940 $29,515,976 5.1 60 Hospital of Scottsdale

Encompass Health Valley of the Glendale Rehab No 1,138 15,359 $35,062,994 6.2 75 Sun Rehabilitation Hospital NORTHERN ARIZONA HEALTHCARE

Flagstaff Medical Center Flagstaff Acute Yes 12,767 57,534 $1,219,982,985 6.3 267

Verde Valley Medical Center Cottonwood Acute Yes 4,198 17,092 $556,933,897 3.9 104 REMAINING ARIZONA HOSPITALS SIZE & SCOPE Aurora East Tempe Psych No 3,987 35,171 $58,599,289 1.9 138

Aurora West Glendale Psych No 4,254 30,706 $50,690,032 4.7 100

Benson Hospital Benson CAH Yes 357 1,605 $30,215,653 -6.2 22

Canyon Vista Medical Center Sierra Vista Acute No 4,526 13,920 $413,997,921 1.6 94

ChangePoint Psychiatric Lakeside Psych Yes 659 3,552 $4,599,804 -9.4 16 Hospital Lakeside

Copper Queen Bisbee CAH Yes 209 1,129 $117,695,324 3.1 14 Community Hospital

Copper Springs Hospital Avondale Psych N/A 3,327 24,543 $51,225,352 7.1 72

Cornerstone Hospital of Tucson LTC No 336 8,817 $54,757,010 -4.6 32 Southeast Arizona

Curahealth - Phoenix Phoenix LTC No 293 9,448 $54,830,791 -8.5 102

Curahealth - Tucson Tucson LTC No 323 8,825 $40,096,267 -2.8 47

Fort Defiance Indian Hospital Fort Defiance Acute Govt 2,457 10,252 N/A N/A 56

Havasu Regional Medical Lake Havasu Acute No 6,004 23,294 $1,043,878,413 3.1 163 Center

Haven Behavioral Hospital of Phoenix Psych No 1,228 14,523 $17,535,112 2.4 51 Phoenix

Kingman Regional Medical Kingman Acute Yes 8,277 39,611 $1,421,082,450 0.9 214 Center

Source: American Hospital Directory

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www.thehertelreport.com DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW REMAINING ARIZONA HEALTH SYSTEMS’ HOSPITAL SIZE & SCOPE TOTAL GROSS % NET NON TOTAL HEALTH SYSTEM CITY TYPE PATIENT PATIENT INCOME OR # BEDS PROFIT DISCHARGES DAYS REVENUE LOSS

La Paz Regional Hospital Parker CAH Yes 695 3,528 $79,345,691 2.6 25

Little Medical Winslow CAH Yes 945 3,708 $121,340,277 1.3 25 Center

Mount Graham Regional Safford Acute Yes 1,341 4,749 $136,204,843 2.8 49 Medical Center

Mountain Valley Regional Prescott Valley Rehab No 946 13,052 $29,645,188 7.5 44 Rehabilitation Hospital

Northern Cochise Willcox CAH Govt 288 1,809 $28,487,117 1.4 48 Community Hospital

Oasis Behavioral Health Chandler Psych No 2,598 42,548 $61,356,695 11.3 146 Hospital

Page Hospital Page CAH Yes 381 1,255 $42,898,089 12.4 25

Palo Verde Behavioral Health Tucson Psych No 1,762 20,607 $49,258,642 1.2 84

Phoenix Indian Medical Phoenix Acute Govt 2,337 8,483 N/A N/A 133 Center

Promise Hospital of Phoenix Mesa LTC No 442 10,101 $73,560,522 -2.8 48

Quail Run Behav. Health Phoenix Psych No 3,821 33,126 $78,866,157 11.6 102

Santa Cruz Valley Regional Green Valley Acute No 1,706 4,874 $96,704,846 -35.5 49 Hospital

Select Specialty Phoenix LTC No 523 14,192 $83,617,912 1.4 48 Hospital - Phoenix

Sells Hospital Sells Acute Govt 242 964 N/A N/A 14

Sonora Behavioral Health Tucson Psych No 3,831 28,262 $45,086,404 7.3 148 Hospital

Summit Healthcare Regional Show Low Acute Govt 4,824 15,781 $586,904,414 2.0 89 Medical Center

The CORE Institute Specialty Phoenix Acute No 1,390 1,716 $97,199,270 0.9 32 Hospital

The Guidance Center Flagstaff Psych Yes 603 2,903 $19,482,525 3.4 16

Tuba City Indian Tuba City Acute Govt 2,340 11,027 N/A N/A 73 Medical Center

Tucson Medical Center Tucson Acute Yes 32,508 141,919 $2,099,417,900 1.7 457

Valley Hospital Phoenix Psych No 3,517 39,057 $97,050,339 9.8 122 Phoenix

Valley View Medical Center Fort Mohave Acute No 2,054 7,427 $429,478,990 -0.4 78

White Mountain Springerville CAH Govt 206 2,126 $38,985,399 1.8 25 Reg. Medical Center

Whiteriver Indian Hospital Whiteriver Acute Govt 909 3,750 N/A N/A 40

Wickenburg Wickenburg CAH Yes 458 1,814 $79,831,727 -1.6 19 Community Hospital

Windhaven Psych Hospital Prescott Valley Psych Yes 725 5,067 $42,038,613 0.8 16

Yavapai Regional Medical Prescott Valley Acute Yes 4,182 14,512 $374,590,207 11.0 56 Center-East Campus

Yavapai Regional Medical Prescott Acute Yes 11,401 40,591 $1,156,879,201 4.1 206 Center-West Campus

Yuma Regional Yuma Acute Yes 16,317 65,273 $1,701,266,044 2.9 406 Medical Center

Yuma Rehabilitation Hospital Yuma Rehab No 1,299 13,630 $27,569,400 29.5 51

Source: American Hospital Directory

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