Volume XVIII Data No. 3, October 2015 The Hertel Report - All Rights Reserved ©2015

The Source that Connects the Arizona Healthcare Community

STATE SPOTLIGHT: SIZE & SCOPE OF ARIZONA HEALTH SYSTEMS

BANNER HEALTH ABRAZO DIGNITY 18 Hospitals - 1 Medical School 7 Hospitals Dignity 8 Hospitals Banner 6 Surgical Centers Abrazo 10 Surgical Centers Briefs HOSPITALS Briefs HOSPITALS Briefs HOSPITALS Arizona’s Largest Part of Tenet, Abrazo Arrowhead Campus Part of Dignity Health System Banner Univ. Med. CTR, TUCS. Third Largest Health, Fifth Ariz. General Hospital & Private For Profit U.S. Abrazo Maryvale Campus Largest Employer Banner Univ. Med. CTR, PHX. Health System Chandler Regional Med. CTR Abrazo Scottsdale Campus Non-Profit U.S. Banner Univ. Med. CTR South Health System Mercy Gilbert Med. CTR 2015 News 2015 News Abrazo Central Hospital Banner Health Banner Baywood Med. CTR Abrazo Health St. Joseph’s Hospital & Merges with UA now Abrazo Abrazo West Campus 2015 News Med. CTR Banner Boswell Med. CTR JV with Tenet & Health Network Community HEART HOSPITAL Ascension to St. Joseph’s Westgate Price Tag: $1B Banner Casa Grande Med. CTR Health Network Own & Operate Med. CTR Banner Del E. Webb Med. CTR Arizona Heart Hospital S. Ariz. 2014 Carondelet ORTHO. HOSPITAL Banner Desert Med. CTR 2014 FREE STANDING ER Hospitals Results Ariz. Ortho. Surgical Pioneer ACO Banner Estrella Med. CTR Results MSSP ACO Abrazo Buckeye Hospital Banner Health Banner Gateway Med. CTR Arizona Care Emergency Center 2014 Network Earns Network Ariz. Spine & Joint Hospital Shared Savings Abrazo Peoria Results Banner Goldfield Med. CTR $15M Loss MSSP ACO of $18.7M Emergency Center OASIS Hospital Banner Ironwood Med. CTR (JV w/ Dignity) Arizona Care Network SURGICAL CENTERS Insurance Banner Thunderbird Med. CTR $15M Loss University Insurance (JV w/ Abrazo) Chandler Endoscopy Center Family Care Cardon Children’s Med. CTR Phoenix Health (AHCCCS) Plan (AHCCCS) Desert Ridge OP Surgical Banner Page Hospital Phoenix Choice Additions CTR University Arizona Health Banner Payson Medical CTR (HIM-HMO) Care Collaborative Metro Surgery CTR Phoenix Advantage SURGICAL CENTERS 19 Hospitals St. Joseph’s Hospital & Advantage (MA-HMO SNP) Across Ariz. Medical Center ASC (MA-HMO) University Banner Desert Surgery CTR Arizona Spine & Phoenix Abrazo Medical Group Surgery CTR of Glendale Healthcare Banner Del E. Webb Surgery CTR Joint Hospital Advantage Marketplace Primary & Specialty Care Surgery CTR of Gilbert Banner Estrella Surgery CTR Select Canyon Plan 14 Practice Locations Insurance (HIM) (MA-HMO) Mercy Care Plan Surgery CTR of Peoria Banner Gateway Surgery CTR (AHCCCS) Phoenix Surgery CTR of Phoenix Banner Thunderbird OP Surgery Advantage Plus Opening December 2015 Mercy Care Plan Additions (MA-HMO SNP) Surgery CTR of Scottsdale Payson Banner Health Surgicenter Cobalt Rehabilitation ALTCS Regional Hospital of Surprise Mercy Care Warner Park OP Surgery CTR Medical Center BH HOSPITALS (JV w/Cobalt) Advantage Projects (MA-SNP) now Banner CANCER CENTER $100 M IT Payson Medical Banner Behavioral Health Hospital Mercy Maricopa Investment Center Integrated Care UA Cancer CTR at HEART HOSPITAL MedPost (RBHA) St. Joseph’s Hospital Urgent Care Banner Heart Hospital Specialty Care Projects New Locations: Projects 16-Story Patient Dignity Health Peoria, Surprise Tower & ER CANCER CENTER East Valley Barrow Neurological Institute & Scottsdale at Banner Rehab. Hospital St. Joseph’s Hospital University Banner MD Anderson Cancer CTR (JV w/Kindred) Medical Center

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DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW Page 2 HONOR HEALTH IASIS PHOENIX CHILDREN’S HOSPITAL Honor 5 Hospitals Iasis 4 Hospitals Phoenix 1 Hospital 1 Surgical Center 8 Specialty Care

Health Briefs HOSPITALS Children’s HOSPITALS Briefs Rated 38 of 100 Briefs HOSPITAL Largest Mountain Vista Med. CTR HonorHealth Deer Valley Med. CTR Phoenix Children’s Hospital Eighth Largest Employers in St. Luke’s Med. CTR Employer in Ariz. HonorHealth John C. Lincoln Med. Ariz. 2015 News Shared a $2.8M Specialty Care CTR Tempe St. Luke’s Hospital Grant to 2015 News Study Biology East Valley Center 2015 News HonorHealth Scottsdale Shea Med. Parent Company Scottsdale BH HOSPITALS Behind OB Specialty & Urgent Care CTR Filed IPO Lincoln Health Hemorrhagic Northwest Valley Specialty HonorHealth Scottsdale Osborn Health Choice St. Luke’s Behavioral Health Network strokes & Urgent Care Becomes Med CTR (HC) Formed CTR ACO PCH at Mercy Gilbert HonorHealth HonorHealth Scottsdale Alliance with Specialty Care Additions Center Specialty Care Thompson Peak Med. CTR Phoenix Phoenix Children’s Care 2014 Children’s Care Grossman Burn Center at PCH Surgery Center SURGICAL CENTER St. Luke’s Medical CTR. Network (PCCN) Network Phoenix Children’s Medical Results PCN ACO MSSP ACO Official Group - Urology Greenbaum Surgical Specialty Alliance with Scottsdale Healthcare Hospital Health Choice Scottsdale Center Health Partners Partner of the Specialty & Urgent Care Earns Shared CANCER CENTER Phoenix Suns Chan Savings of and Phoenix Soon-Shiong Southwest Valley Center $1.8M Virginia G. Piper Cancer Center Mercury Children’s Specialty & Urgent Care Precision MSSP ACO Yuma Center John C. Lincoln Medicine Insurance Institute at PCH Specialty Care $467,198 Loss HC Ariz. (AHCCCS) Arizona Fetal $1.2M Grant for Care Network at HEART CENTERS Neighborhood HC Integrated PCH Care (RBHA) Outreach Access Phoenix Children’s Heart to Health (NOAH) Physician Group of Partnered with HC Generations TMC for Children CTR - Gilbert (MA-HMO SNP) for Inpatient Arizona Phoenix Children’s Heart Pediatric Additions HC Insurance CTR - Glendale HonorHealth Co.(HIM) More than Hospitalist and Health Center IC Services Phoenix Children’s Heart HC Preferred 10 Medical Specialties Glendale CTR - Scottsdale Commercial 25 Practice Locations ACO MARICOPA INTEGRATED HEALTHCARE MAYO CLINIC CANCER TREATMENT CENTERS OF AMERICA MIHS 1 Hospital Mayo 1 Hospital - 1 Medical School CTCA 1 Hospital HOSPITAL HOSPITAL Briefs Briefs Briefs HOSPITAL Maricopa Medical Center State’s Only Mayo Clinic Hospital Public 2015 News 2015 CTCA at Western Regional Specialty/Clinics Expands Teaching CANCER CENTER Med. CTR Relationship with News Hospital & Started New Arizona Burn CTR Optum Medical Mayo Clinic Cancer Center Healthcare Network Treatments System Arizona Children’s CTR Specialty/Clinics in Oncology CME Desert Vista BH CTR Additions 2015 News $180M + Scottsdale Campus OP Clinic Conference New Proton-therapy Maricopa BH Annex Phase II Pendergast Center Mayo Clinic Specialty Building, Immuno- Family Health CANCER CENTER PHX Campus therapy Medical School Center Clinical Phoenix Cancer CTR on Scottsdale Trial Targets Campus Mayo Clinic Care Network Soft-Tissue Opening 2017 Tucson Medical Center, ASU Additions Cancers New 11-bed Health Services, Kingman BH unit Regional Medical Center & Yuma Regional Medical Center

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CARONDELET ARIZONA 2015 TRENDS IN HOSPITAL UNCOMPENSATED CARE

4 Hospitals Since Arizona expanded Medicaid to include Haynes. “Operating income over the last twelve childless adults, the cost and volume of months has decreased from 2.9 percent to 1.7 HOSPITALS uncompensated care has paradoxically fallen percent for reporting hospitals.” along with Arizona hospital’s net incomes. Carondelet Heart & Vascular Institute With nearly 80 percent of Arizona hospitals The August 2015 hospital financial survey responding, the survey estimated that hospital Carondelet Holy Cross Hospital from the Arizona Hospital and Healthcare operating income declined by $187 million, Carondelet Saint Joseph’s Hospital Association (AHHA) reported the percentage of and operating margin declined from 3.6 to 1.7 uncompensated care and costs fell more than Carondelet Saint Mary’s Hospital percent from August 2013 to August 2014. 65 percent since 2013. According to Kaiser, from 2013 to 2014, KINDRED HEALTHCARE “While there has been a dramatic decrease in inpatient stays for expansion states declined uncompensated care, there has not been a by 3.4 percent, but Medicaid inpatient stays 4 Hospitals corresponding increase in net income,” stated increased by 16.3 percent while uninsured 8 Home Health Agencies AzHHA Senior Vice President and COO Jim stays dropped by 36.9 percent. HOSPITALS

Kindred Hospital, Phoenix Kindred Hospital, Northwest Phoenix Kindred Hospital, Scottsdale Kindred Hospital, Tucson

HOME HEALTH AGENCIES

Gentiva Home Health Peoria Gentiva Home Health Phoenix Gentiva Home Health Mesa Granite Mountain Home Care and Hospice Kindred at Home - Cottonwood Granite Mountain Home Care - Cottonwood Gentiva Home Health Tucson Gentiva Hospice Tucson Arizona Hospital and Healthcare Association (AzHHA)

BASICS OF THE PAYMENTS 2015 Southern AZ News Payments to Hospitals Program TO HOSPITALS PROGRAM Formed: FFY 2014 ARIZ. HOSPITALS RECEIVED The Payments to Hospitals program The Southern Arizona Hospital Alliance $587.7M includes supplemental funding in addition • Benson Hospital to payments from AHCCCS FFS and • Copper Queen FY2016 Expected Funding contracted plans. • Mount Graham Regional Medical Center CRITICAL ACCESS HOSPITALS Includes these five programs: • Northern Cochise Community $22.6M Hospital • Disproportionate Share MARICOPA INTEGRATED • Rural Hospital Payments HEALTH SYSTEM $113.8 M (including CAH Payments) Arizona Hospitals Paid Out • Graduate Medical Education DHS ARIZONA • Safety Net Care Pool STATE HOSPITAL $28M PROVIDER ASSESSMENT • Proposition 202 - Trauma & Emergency FFY 2015 Estimate $270 M Services SAFETY NET CARE POOL FUNDING $137M

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DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW Page 4 MARKET SHARE: ARIZONA’S MARICOPA & PINAL COUNTIES HOSPITAL CONNECTIONS HEALTH SYSTEM 2012 2013 2014 Beyond Mergers & Acquisitions Banner Health 63.1% 62.2% 61.6% In an era of stiff competition, declining admissions and rising costs, hospitals invite HonorHealth 15% 15.8% 15.4% multiple partners to help improve patients’ Dignity Health 13.5% 13.9% 14.8% experience and outcomes. Abrazo 9.8% 9.5% 10% Identifying Models Maricopa Integrated Health System 3.8% 4% 4% Accountable Care Organization (ACO) IASIS 4% 3.9% 3.8% Independent entity formed to enter risk-based contracts. Participating providers share account- Mayo 2.7% 2.8% 3% ability for quality measures, costs and can partic- Phoenix Children’s Hospital 3% 2.9% 3% ipate in shared savings. Others < 3 percent 4% 3.7% 2.6% Clinically Integrated Hospital Network A collection of hospitals with joint payer contracts Source: Banner Analysis of State Data designed to improve care coordination and clinical outcomes. ARIZONA CRITICAL ACCESS HOSPITALS Clinical Affiliation Agreement to collaborate to provide a specific service join together on a specific initiative. Hospital Name City THE FLEX PROGRAM Banner Page Hospital Page The Center for Rural Benson Hospital Benson Health coordinates Arizona’s Medicare Carondelet Holy Cross Hospital Nogales Rural Hospital Cobre Valley Regional Medical Center Globe Flexibility Program.

Copper Queen Community Hospital Bisbee The AZ Flex goals focus Hopi Health Care Center Polacca on the following areas: Hospital Compare CAH Quality Hu Hu Kam Memorial Hospital Sacaton Improve the quality of Measure Results, Q2 2013 - Q1 2014 rural health care. La Paz Regional Hospital Parker Arizona CAHs • Lower for inpatient measures: Little Colorado Medical Center Winslow Improve CAH financial and operational 73.3% vs. 86.4% nationally Northern Cochise Community Hospital Willcox performance. • Lower for outpatient measures: 26.7% vs. 54.0% nationally Parker Indian Health Center Parker Support health system • Similar for HCAHPS: Sage Memorial Hospital Ganado development & 60% vs. 59.0% nationally community engagement. White Mountain Regional Medical Center Springerville Enable CAH status to Wickenburg Community Hospital Wickenburg The Hertel Report interested and eligible 29455 N. Cave Creek Road rural hospitals Suite 118 Box 453 CAH DEFINITION Among the 45 states Cave Creek, AZ 85331 participating in the Flex 602-679-4322 Less Than 25 Inpatient Beds Program, Arizona’s CAHs rank: Publisher: Jim Hammond 35 Miles or More From Managing Editor: Paula Blankenship Another Facility • Number 39 for Staffs a 24-hour/7days per Week Emergency inpatient measure NEWSLETTER SPONSORED BY Department reporting Maintains Acute Care Status by Averaging Less Than • Number 37 for outpa- 96 Hours for an Inpatient Stay tient measure reporting • Number 22 for HCAHPS reporting Source: The Flex Monitoring Team

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TOP ARIZONA HEALTH SYSTEMS HOSPITAL SIZE & SCOPE

Banner Health Network Hospitals City Type Non Total Total Total Net Income Profit Discharges Patient Days Patient Revenue or Loss Banner University Medical Center Tucson Acute Yes 24,056 134,810 $2.6 Billion 0.1 % Banner University Medical Center, South 1 Tucson Acute Yes 6925 35,137 $526 Million -0.7% Banner University Medical Center 2 Phoenix Acute Yes 32,463 160,756 $2.7 Billion 1.1% Banner Baywood Medical Center Mesa Acute Yes 17,837 79,333 $1.4 Billion 2.1% Banner Boswell Medical Center Sun City Acute Yes 17,268 71,556 $1.3 Billion 1.7% Banner Casa Grande Medical Center Casa Grande Acute Yes 7011 29,174 $444 Million -3.6% Banner Del E. Webb Medical Center Sun City West Acute Yes 15,054 56,822 $1.2 Billion 1.1% Banner Desert Medical Center Mesa Acute Yes 38,173 144,203 $2.4 Billion 2.4% Banner Estrella Medical Center Phoenix Acute Yes 16,684 62,468 $1.4 Billion 2.7% Banner Gateway Medical Center Gilbert Acute Yes 13,107 51,358 $1.2 Billion -6.3% Banner Goldfield Medical Center Apache Junction Acute Yes 595 1277 $61 Million -11% Banner Heart Hospital Mesa Acute Yes 5038 21,568 $672 Million 3.1% Banner Ironwood Medical Center San Tan Valley Acute Yes 2460 7,668 $210 Million -5.6 Banner Thunderbird Medical Center Glendale Acute Yes 32,184 124,736 $2 Billion 2% Banner Behavioral Health Hospital Scottsdale Psych Yes 3953 27,929 $63 Million -9.7% Banner Page Hospital Page CAH Yes 507 1390 $36 Million 12.7% Banner Payson Medical Center Payson Acute Yes 1908 5544 $289 Million 5.6% Abrazo Community Health Network Abrazo Arrowhead Campus Glendale Acute No 10,529 42,720 $713 Million 5.1% Abrazo Maryvale Campus Phoenix Acute No 4781 18,760 $275 Million 1.2% Abrazo Scottsdale Campus Phoenix Acute No 5207 20,245 $355 Million -0.9% Abrazo Central Campus & Phoenix Acute No 11,191 43,424 $784 Million -1.5% Arizona Heart Hospital Abrazo West Campus Goodyear Acute No 9582 35,700 $593 Million 0.8% Dignity Health Arizona Arizona General Hospital - New 2015 Laveen Acute No Unavailable Unavailable Unavailable Unavailable Arizona Orthopedic Surgical Hospital Chandler Acute No 704 1725 $112 Million -0.4% Arizona Spine & Joint Hospital Mesa Acute No 947 1815 $81 Million -0.3% Chandler Regional Medical Center Chandler Acute Yes 19,021 78,913 $2 Billion 2.6% Mercy Gilbert Medical Center Gilbert Acute Yes 13,928 52,398 $1.3 Billion 1.9% Orthopedic & Spine Inpatient Surgical Phoenix Acute No 3364 7712 $160 Million 1.1% Hospital (OASIS) St. Joseph’s Hospital & Medical Center & Phoenix/ Acute Yes 27,061 137,890 $3 Billion 2.2% Westgate Medical Center Glendale

Hospital Type Legend: Government Hospital Districts = GHD 1. Banner UMC, South formerly Kino Community Hospital Indian Health Services = IHS 2. Banner UMC, Phoenix, formerly Good Samaritan Hospital Government/Federal = GF Data Source: American Hospital Directory https://www.ahd.com/data_sources.html

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DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW Page 6 TOP ARIZONA HEALTH SYSTEMS HOSPITAL SIZE & SCOPE (Cont’d)

Name City Type Non Total Total Total Net Income Profit Discharges Patient Days Patient Revenue or Loss HonorHealth HonorHealth Dear Valley Medical Center Phoenix Acute Yes 12,029 44,833 $1.2 Billion 1.8% HonorHealth John C. Lincoln Medical Phoenix Acute Yes 14,111 63,392 $1.4 Billion 0.2% Center HonorHealth Scottsdale Shea Medical Scottsdale Acute Yes 20,060 97,447 $2 Billion 1% Center HonorHealth Scottsdale Osborn Medical Scottsdale Acute Yes 15,054 68,485 $1.6 Billion -0.1% Center HonorHealth Scottsdale Thompson Peak Scottsdale Acute Yes 5606 17,550 $534 Million 1.5% Medical Center IASIS Healthcare Mountain Vista Medical Center Mesa Acute No 8267 34,600 $895 Million -0.4% St. Luke’s Medical Center Phoenix Acute No 7674 27,957 $848 Million -0.2%

St. Luke’s Behavioral Health Center Phoenix Psych No 5010 44,587 $138 Million 5.8% Tempe St. Luke’s Hospital Tempe Acute No 3320 10,217 $154 Million -2.0 Carondelet Health Network * Carondelet Holy Cross Hospital Nogales Acute Yes 1038 3536 $87 Million -1% Carondelet Saint Joseph’s Hospital Tucson Acute Yes 14,798 73,665 $1.1 Billion -1% Carondelet Saint Mary’s Hospital Tucson Acute Yes 10,494 49,229 $886 Million 0.2% Includes Carondelet Heart & Vascular Institute Phoenix Children’s Hospital Phoenix Peds Yes 12,535 71,860 $1.9 Billion 1.4% Maricopa Medical Center Phoenix Acute GHD 15,792 70,598 $2 Billion -1.1% Mayo Clinic Hospital Phoenix Acute Yes 13,196 63,389 $1.8 Billion 5.3% Cancer Treatment Centers of America Goodyear Acute No Unavailable Unavailable Unavailable Unavailable Kindred Hospitals Kindred Hospital Phoenix, LTC No 499 16,552 $96 Million -4.7% Phoenix NW, Scottsdale Kindred Hospital Tucson LTC No 427 11,249 $48 Million 2.1% MORE ARIZONA HEALTH SYSTEMS HOSPITAL SIZE & SCOPE Community Health Systems

Northwest Medical Center Tucson Acute No 16,528 62,461 $1.6 Billion 1.7% Oro Valley Hospital Oro Valley Acute No 4732 15,802 $536 Million 0.5% Western Arizona Regional Medical Center Bullhead City Acute No 6287 27,638 $994 Million 3.2%

Hospital Type Legend: Government Hospital Districts = GHD *Carondelet Health Network (CHN): Indian Health Services = IHS CHN is now owned and operated by for-profit Tenet, non-profits Government/Federal = GF Dignity Health and Ascension Health Data Source: American Hospital Directory https://www.ahd.com/data_sources.html

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HealthSouth HealthSouth East Valley Rehab Hospital Mesa Rehab No 1150 16,214 $32 Million 5.2% HealthSouth Rehabilitation Institute of Tucson Rehab No 1394 18,764 $39 Million 7.3% Tucson HealthSouth Rehabilitation Hospital of Tucson Rehab No 1092 12,573 $25 Million 5.4% Southern Arizona HealthSouth Scottsdale Rehabilitation Scottsdale Rehab No 874 10,727 $23 Million 0.6% Hospital HealthSouth Valley of the Sun Glendale Rehab No 1284 17,239 $38 Million 4.1% Rehabilitation Hospital Northern Arizona Healthcare (NAH) Flagstaff Medical Center Flagstaff Acute Yes 14,196 56,733 $936 Million 7.8% Verde Valley Medical Center Cottonwood Acute Yes 4425 17,352 $516 Million 3.9% Veterans Affairs (VA) Phoenix VA Health Care System Phoenix Acute GF Unavailable Unavailable Unavailable Unavailable Southern Arizona VA Health Care System Tucson Acute GF Unavailable Unavailable Unavailable Unavailable Northern Arizona VA Health Care System Prescott Acute GF Unavailable Unavailable Unavailable Unavailable MORE ARIZONA HOSPITALS SIZE & SCOPE Name Type Non Total Total Total Net Income Profit Discharges Patient Days Patient Revenue or Loss Acuity Specialty Hospital of Ariz., Mesa Mesa LTC No Unavailable Unavailable Unavailable Unavailable Acuity Specialty Hospital of Ariz., Sun City Sun City LTC No 193 5191 $47 Million -9% Aurora West Glendale Psych No 3980 32,762 $53 Million 10.8% Benson Hospital Benson CAH Yes 341 1460 $22 Million -2.1%

Canyon Vista Medical Center Sierra Vista Acute Yes 4590 15,031 $294 Million 2.6% Chinlee Comprehensive Health Care Chinlee Acute IH 1784 4787 Unavailable Unavailable Facility Cobre Valley Regional Medical Center Globe CAH Yes 1737 6214 $78 Million 1.3% Cochise Regional Hospital Douglas CAH Closed Closed Closed Closed Closed July 2015 Copper Queen Community Hospital Bisbee CAH Yes 280 1448 $67 Million 1.7% Cornerstone Hospital Southeast Tucson Tucson LTC No 295 7277 $34 Million -1.3% Florence Hospital at Anthem Florence Acute No 469 1307 $79 Million 2.4% Fort Defiance Indian Hospital Fort Defiance Acute IH 2508 11,257 Unavailable Unavailable Fort Yuma Indian Hospital Yuma Acute IH Unavailable Unavailable Unavailable Unavailable Freedom Pain Hospital Scottsdale Acute No 94 220 $88 Million -0.2% Gilbert Hospital Gilbert Acute No 661 2101 $111 Million -2.5% Green Valley Hospital Green Valley Acute No Unavailable Unavailable Unavailable Unavailable

Hospital Type Legend: Government Hospital Districts = GHD Indian Health Services = IHS Government/Federal = GF Data Source: American Hospital Directory https://www.ahd.com/data_sources.html

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MORE ARIZONA HOSPITALS SIZE & SCOPE CONT’D

Hospital Name City Type Non Total Total Total Patient Net Income Profit Discharges Patient Days Revenue or Loss

The Guidance Center Flagstaff Psych Yes 474 3083 $15 Million 0.1% Havasu Regional Medical Center Lake Havasu Acute No 6868 26,215 $751 Million 3.2% Haven Senior Horizons Phoenix Psych No 746 9550 $11 Million 12.6% Hopi Health Care Center Polacca CAH IH 349 615 $0 Unavailable Hu Hu Kam Memorial Hospital Sacaton Acute IH 20 40 Unavailable Unavailable Kingman Regional Medical Center Kingman Acute Yes 9008 42,516 $947 Million 0.4% La Paz Regional Hospital Parker CAH Yes 778 2864 $60 Million 2.3% Little Colorado Medical Center Winslow CAH Yes 1458 3911 $90 Million -6.6% Los Ninos Hospital part of Hacienda Phoenix Peds Yes Unavailable Unavailable Unavailable Unavailable Healthcare Mount Graham Regional Medical Center Safford Acute Yes 1649 5364 $130 Million 1.3% Mountain Valley Regional Rehabilitation Prescott Rehab No 804 11,817 $26 Million 15.2% Hospital Valley Northern Cochise Community Hospital Willcox CAH GHD 508 2425 $37 Million -0.9% Oro Valley Hospital Oro Valley Acute No 4732 15,802 $536 Million 0.5% Palo Verde Behavioral Health Tucson Psych No 1784 13,738 $31 Million -5.1% Parker Indian Health Center Parker Acute IH 99 293 Unavailable Unavailable Phoenix Indian Medical Center Phoenix Acute IH 2641 9714 Unavailable Unavailable Promise Hospital of Phoenix Mesa LTC No 394 9907 $50 Million -5.9% Quail Run Behavioral Health Phoenix Psych No Unavailable Unavailable Unavailable Unavailable Remuda Ranch Center for Wickenburg Psych No Unavailable Unavailable Unavailable Unavailable Anorexia and Bulemia Select Specialty Hospital Phoenix Phoenix LTC No 468 13,280 $63 Million 1.9% Downtown & Scottsdale Select Specialty Hospital Scottsdale Scottsdale LTC No 560 15,984 $69 Million 2% San Carlos Hospital San Carlos Acute No 38 80 Unavailable Unavailable The Core Institute Specialty Hospital3 Phoenix Acute No 791 1392 $51 Million -0.7% Tuba City Indian Medical Center Tuba City Acute IH 2239 10,185 Unavailable Unavailable Tucson Medical Center Tucson Acute Yes 28,941 126,566 $1.6 Billion 0.8% Valley Hospital Phoenix Phoenix Psych No 3496 37,467 $91 Million 7.6% Valley View Medical Center Fort Mohave Acute No 2846 10,996 $347 Million -0.7% White Mountain Regional Medical Center Springerville CAH Yes 267 1753 $31 Million 1.6% Whiteriver Indian Hospital Whiteriver Acute No 914 2972 Unavailable Unavailable

3. Formerly The Surgical Hospital of Phoenix and Hospital Type Legend: Government Hospital Districts = GHD The Surgical Specialty Hospital of Arizona. Indian Health Services = IHS Purchased by The Core Institute in 2015. Now known as Government/Federal = GF The CORE Institute Specialty Hospital Data Source: American Hospital Directory https://www.ahd.com/data_sources.html

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DUPLICATION WITHOUT WRITTEN AUTHORIZATION VIOLATES FEDERAL LAW Page 9 MORE ARIZONA HOSPITALS SIZE & SCOPE Hospital Name City Type Non Total Total Total Patient Net Income Profit Discharges Patient Days Revenue or Loss Wickenburg Community Hospital Wickenburg CAH Yes 369 2535 $46 Million 6.7% Windhaven Psychiatric Hospital Prescott Valley Psych Yes 805 5672 $28 Million 4.0% Yavapai Regional Medical Center-East Prescott Valley Acute Yes 3973 10,351 $251 Million 8.2% Yavapai Regional Medical Center Prescott Acute Yes 6433 23,271 $553 Million -2.6% Yuma Regional Medical Center Yuma Acute Yes 15,250 70,695 $1.2 Billion 2.5% Yuma Rehabilitation Hospital Yuma Re- No 1037 13,225 $24 Million 24.2% hab.

Information based on American Hospital Directory reports accessed September & October 2015. Information includes both public and private sources such as Medicare claims data, hospital cost reports and commercial licensors. Medicare IPPS claims data FFY ending September 30, 2014. Financial data is from period ending June 30, 2014.

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Hospital Type Legend: Government Hospital Districts = GHD Indian Health Services = IHS Government/Federal = GF Data Source: American Hospital Directory https://www.ahd.com/data_sources.html

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