Financial Information for Subsidiary Guarantors and Non-Guarantor Subsidiaries

3 Months Ended

Sep. 30, 2011

Financial Information For Subsidiary Guarantors And NonGuarantor Subsidiaries [Abstract]

FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND NON-GUARANTOR SUBSIDIARIES

15.       FINANCIAL INFORMATION FOR SUBSIDIARY GUARANTORS AND
       NON-GUARANTOR SUBSIDIARIES

       Vanguard conducts substantially all of its business through its subsidiaries. Most of Vanguard's subsidiaries jointly and severally guarantee Vanguard's 8.0% Senior Unsecured Notes due 2018 and its 7.750% Senior Notes due 2019. Certain of Vanguard's other consolidated wholly-owned and non wholly-owned entities do not guarantee these Senior Notes or Vanguard's remaining 10.375% Senior Discount Notes due 2016 in conformity with the provisions of the indentures governing those notes and do not guarantee the 2010 credit facilities in conformity with the provisions thereof. The accompanying condensed consolidating financial information for the parent company, the issuers of the senior notes and term debt, the issuers of the 10.375% Senior Discount Notes, the subsidiary guarantors, the non-guarantor subsidiaries, certain eliminations and consolidated Vanguard as of June 30, 2011 and September 30, 2011 and for the three months ended September 30, 2010 and 2011 follows.

VANGUARD HEALTH SYSTEMS, INC.
Condensed Consolidating Balance Sheets
June 30, 2011 (Recast)
				Issuers of		Issuers of
				Senior		Senior				Combined
				Notes and		Discount		Guarantor		Non-				Total
		Parent		Term Debt		Notes		Subsidiaries		Guarantors		Eliminations		Consolidated
		(In millions)
ASSETS
Current assets:
Cash and cash equivalents		$	-	$	-	$	-	$	644.1	$	292.5	$	-	$	936.6
Restricted cash			-		-		-		0.7		1.6		-		2.3
Accounts receivable, net			-		-		-		448.1		36.3		-		484.4
Inventories			-		-		-		83.6		0.3		-		83.9
Prepaid expenses and other
	current assets		-		-		-		239.5		9.5		-		249.0
	Total current assets		-		-		-		1,416.0		340.2		-		1,756.2
Property, plant and equipment, net			-		-		-		1,773.4		57.1		-		1,830.5
Goodwill			-		-		-		672.0		83.6		-		755.6
Intangible assets, net			-		37.4		19.4		25.3		11.9		-		94.0
Investments in consolidated
	subsidiaries		608.8		-		-		-		-		(608.8)		-
Investments in auction rate securities			-		-		-		63.3		-		-		63.3
Other assets			-		-		-		84.3		9.0		-		93.3
	Total assets	$	608.8	$	37.4	$	19.4	$	4,034.3	$	501.8	$	(608.8)	$	4,592.9
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	-	$	-	$	-	$	280.6	$	33.7	$	-	$	314.3
Accrued expenses and other current
	liabilities		-		50.5		11.8		453.7		128.4		-		644.4
Current maturities of long-term debt			-		8.2		450.6		3.0		-		-		461.8
	Total current liabilities		-		58.7		462.4		737.3		162.1		-		1,420.5
Other liabilities			-		-		-		565.5		38.0		-		603.5
Long-term debt, less current maturities			-		2,305.0		14.4		6.4		-		-		2,325.8
Intercompany			365.7		(1,477.0)		(424.5)		1,927.1		(9.4)		(381.9)		-
Total equity			243.1		(849.3)		(32.9)		798.0		311.1		(226.9)		243.1
	Total liabilities and equity	$	608.8	$	37.4	$	19.4	$	4,034.3	$	501.8	$	(608.8)	$	4,592.9

VANGUARD HEALTH SYSTEMS, INC.
Condensed Consolidating Balance Sheets
September 30, 2011
				Issuers of		Issuers of
				Senior		Senior				Combined
				Notes and		Discount		Guarantor		Non-				Total
		Parent		Term Debt		Notes		Subsidiaries		Guarantors		Eliminations		Consolidated
		(In millions)
ASSETS
Current assets:
Cash and cash equivalents		$	-	$	-	$	-	$	154.9	$	(0.2)	$	-	$	154.7
Restricted cash			-		-		-		0.7		1.7		-		2.4
Accounts receivable, net			-		-		-		447.0		116.6		-		563.6
Inventories			-		-		-		81.0		10.9		-		91.9
Prepaid expenses and other
	current assets		-		-		-		311.2		30.5		(14.8)		326.9
	Total current assets		-		-		-		994.8		159.5		(14.8)		1,139.5
Property, plant and equipment, net			-		-		-		1,744.5		276.1		-		2,020.6
Goodwill			-		-		-		672.5		83.6		-		756.1
Intangible assets, net			-		36.1		7.8		26.7		13.2		-		83.8
Investments in consolidated
	subsidiaries		608.8		-		-		-		-		(608.8)		-
Investments in securities			-		-		-		49.6		8.8		-		58.4
Other assets			-		-		-		109.6		10.8		-		120.4
	Total assets	$	608.8	$	36.1	$	7.8	$	3,597.7	$	552.0	$	(623.6)	$	4,178.8
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	-	$	-	$	-	$	250.9	$	62.8	$	-	$	313.7
Accrued expenses and other current
	liabilities		-		26.6		4.5		360.6		154.6		-		546.3
Current maturities of long-term debt			-		8.2		-		3.1		2.6		-		13.9
	Total current liabilities		-		34.8		4.5		614.6		220.0		-		873.9
Other liabilities			-		-		-		581.0		70.6		(14.8)		636.8
Long-term debt, less current maturities			-		2,303.7		14.8		5.4		8.4		-		2,332.3
Intercompany			324.4		(1,417.0)		31.5		1,597.0		(154.0)		(381.9)		-
Redeemable non-controlling
	interests		-		-		-		-		51.4		-		51.4
Total equity			284.4		(885.4)		(43.0)		799.7		355.6		(226.9)		284.4
	Total liabilities and equity	$	608.8	$	36.1	$	7.8	$	3,597.7	$	552.0	$	(623.6)	$	4,178.8

VANGUARD HEALTH SYSTEMS, INC.
Condensed Consolidating Statements of Operations
For the three months ended September 30, 2010
					Issuers of		Issuers of
					Senior		Senior				Combined
					Notes and		Discount		Guarantor		Non-				Total
			Parent		Term Debt		Notes		Subsidiaries		Guarantors		Eliminations		Consolidated
			(In millions)
Patient service revenues, net			$	-	$	-	$	-	$	602.8	$	46.0	$	(7.3)	$	641.5
Premium revenues				-		-		-		14.8		206.7		(0.9)		220.6
		Total revenues		-		-		-		617.6		252.7		(8.2)		862.1
Salaries and benefits				1.2		-		-		328.4		25.2		-		354.8
Health plan claims expense				-		-		-		7.9		173.5		(7.3)		174.1
Supplies				-		-		-		112.8		8.2		-		121.0
Purchased services				-		-		-		44.6		6.4		-		51.0
Other operating expenses				0.1		-		-		61.7		12.8		(0.9)		73.7
Rents and leases				-		-		-		9.2		1.8		-		11.0
Depreciation and amortization				-		-		-		34.3		2.9		-		37.2
Interest, net				-		36.2		-		(2.4)		1.0		-		34.8
Management fees				-		-		-		(4.1)		4.1		-		-
Other				-		-		-		4.8		-		-		4.8
		Total costs and expenses		1.3		36.2		-		597.2		235.9		(8.2)		862.4
Income (loss) from continuing operations
	before income taxes			(1.3)		(36.2)		-		20.4		16.8		-		(0.3)
Income tax benefit (expense)				2.4		-		-		-		(5.5)		5.5		2.4
Equity in earnings of subsidiaries				0.1		-		-		-		-		(0.1)		-
Income (loss) from continuing operations				1.2		(36.2)		-		20.4		11.3		5.4		2.1
Income from discontinued
	operations, net of taxes			-		-		-		0.1		-		-		0.1
Net income (loss)				1.2		(36.2)		-		20.5		11.3		5.4		2.2
Less: Net income attributable to non-
	controlling interests			-		-		-		-		(1.0)		-		(1.0)
Net income (loss) attributable to Vanguard
	Health Systems, Inc. stockholders		$	1.2	$	(36.2)	$	-	$	20.5	$	10.3	$	5.4	$	1.2

VANGUARD HEALTH SYSTEMS, INC.
Condensed Consolidating Statements of Operations
For the three months ended September 30, 2011
					Issuers of		Issuers of
					Senior		Senior				Combined
					Notes and		Discount		Guarantor		Non-				Total
			Parent		Term Debt		Notes		Subsidiaries		Guarantors		Eliminations		Consolidated
			(In millions)
Patient service revenues, net			$	-	$	-	$	-	$	1,163.9	$	76.0	$	(7.4)	$	1,232.5
Premium revenues				-		-		-		14.6		200.2		(3.8)		211.0
		Total revenues		-		-		-		1,178.5		276.2		(11.2)		1,443.5
Salaries and benefits				0.7		-		-		624.2		40.1		-		665.0
Health plan claims expense				-		-		-		10.5		161.6		(7.4)		164.7
Supplies				-		-		-		200.8		12.8		-		213.6
Other operating expenses				0.1		-		-		234.1		29.7		(3.8)		260.1
Rents and leases				-		-		-		16.0		2.0		-		18.0
Depreciation and amortization				-		-		-		57.2		5.4		-		62.6
Interest, net				-		36.1		10.1		(2.8)		2.4		-		45.8
Management fees				-		-		-		(6.2)		6.2		-		-
Acquisition related expenses				-		-		-		7.8		4.4		-		12.2
Debt extinguishment costs				-		-		38.9		-		-		-		38.9
Other				-		-		-		(2.5)		0.1		-		(2.4)
		Total costs and expenses		0.8		36.1		49.0		1,139.1		264.7		(11.2)		1,478.5
Income (loss) from continuing operations
	before income taxes			(0.8)		(36.1)		(49.0)		39.4		11.5		-		(35.0)
Income tax benefit (expense)				13.6		-		-		-		(5.4)		5.4		13.6
Equity in earnings of subsidiaries				(32.0)		-		-		-		-		32.0		-
Income (loss) from continuing operations				(19.2)		(36.1)		(49.0)		39.4		6.1		37.4		(21.4)
Loss from discontinued
	operations, net of taxes			-		-		-		(0.1)		-		-		(0.1)
Net income (loss)				(19.2)		(36.1)		(49.0)		39.3		6.1		37.4		(21.5)
Less: Net loss attributable to non-
	controlling interests			-		-		-		-		2.3		-		2.3
Net income (loss) attributable to Vanguard
	Health Systems, Inc. stockholders		$	(19.2)	$	(36.1)	$	(49.0)	$	39.3	$	8.4	$	37.4	$	(19.2)

VANGUARD HEALTH SYSTEMS, INC.
Condensed Consolidating Statements of Cash Flows
For the three months ended September 30, 2010
				Issuers of		Issuers of
				Senior		Senior				Combined
				Notes and		Discount		Guarantor		Non-				Total
		Parent		Term Debt		Notes		Subsidiaries		Guarantors		Eliminations		Consolidated
		(In millions)
Operating activities:
Net income (loss)		$	1.2	$	(36.2)	$	-	$	20.5	$	11.3	$	5.4	$	2.2
Adjustments to reconcile net income
	(loss) to net cash provided by (used in)
	operating activities:
Income from discontinued
	operations, net of taxes		-		-		-		(0.1)		-		-		(0.1)
Depreciation and amortization			-		-		-		34.3		2.9		-		37.2
Deferred income taxes			(3.1)		-		-		-		-		-		(3.1)
Amortization of loan costs			-		1.2		-		-		-		-		1.2
Accretion of principal on notes			-		0.7		-		-		-		-		0.7
Stock compensation			1.2		-		-		-		-		-		1.2
Acquisition related expenses			-		-		-		3.7		-		-		3.7
Changes in operating assets and liabilities,
	net of effects of acquisitions		0.7		(14.5)		-		22.9		67.9		(19.9)		57.1
Net cash provided by (used in) operating
	activities - continuing operations		-		(48.8)		-		81.3		82.1		(14.5)		100.1
Net cash provided by operating
	activities - discontinued operations		-		-		-		0.1		-		-		0.1
Net cash provided by (used in)
	operating activities		-		(48.8)		-		81.4		82.1		(14.5)		100.2

VANGUARD HEALTH SYSTEMS, INC.
Condensed Consolidating Statements of Cash Flows
For the three months ended September 30, 2010
(Continued)
				Issuers of		Issuers of
				Senior		Senior				Combined
				Notes and		Discount		Guarantor		Non-				Total
		Parent		Term Debt		Notes		Subsidiaries		Guarantors		Eliminations		Consolidated
		(In millions)
Investing activities:
Capital expenditures		$	-	$	-	$	-	$	(43.7)	$	(0.9)	$	-	$	(44.6)
Acquisitions and related expenses			-		-		-		(49.5)		-		-		(49.5)
Sales of auction rate securities			-		-		-		-		0.5		-		0.5
Other			-		-		-		(0.4)		-		-		(0.4)
Net cash used in investing activities-
	continuing operations		-		-		-		(93.6)		(0.4)		-		(94.0)
Net cash used in investing activities -
	discontinued operations		-		-		-		-		-		-		-
Net cash used in investing activities			-		-		-		(93.6)		(0.4)		-		(94.0)
Financing activities:
Payments of long-term debt			-		(2.0)		-		-		-		-		(2.0)
Proceeds from debt borrowings			-		216.6		-		-		-		-		216.6
Payments of refinancing costs and fees			-		(5.5)		-		-		-		-		(5.5)
Distributions paid to non-controlling
	interests and other		-		-		-		-		(3.4)		2.3		(1.1)
Cash provided by (used in) intercompany
	activity		-		(160.3)		-		197.6		(49.5)		12.2		-
Net cash provided by (used in) financing
	activities		-		48.8		-		197.6		(52.9)		14.5		208.0
Net increase in cash and cash
	equivalents		-		-		-		185.4		28.8		-		214.2
Cash and cash equivalents, beginning of
	period		-		-		-		198.6		59.0		-		257.6
Cash and cash equivalents, end of period		$	-	$	-	$	-	$	384.0	$	87.8	$	-	$	471.8

VANGUARD HEALTH SYSTEMS, INC.
Condensed Consolidating Statements of Cash Flows
For the three months ended September 30, 2011
				Issuers of		Issuers of
				Senior		Senior				Combined
				Notes and		Discount		Guarantor		Non-				Total
		Parent		Term Debt		Notes		Subsidiaries		Guarantors		Eliminations		Consolidated
		(In millions)
Operating activities:
Net income (loss)		$	(19.2)	$	(36.1)	$	(49.0)	$	39.3	$	6.1	$	37.4	$	(21.5)
Adjustments to reconcile net income
	(loss) to net cash provided by (used in)
	operating activities:
Loss from discontinued
	operations, net of taxes		-		-		-		0.1		-		-		0.1
Depreciation and amortization			-		-		-		57.2		5.4		-		62.6
Deferred income taxes			(14.5)		-		-		-		-		-		(14.5)
Amortization of loan costs			-		1.6		-		-		-		-		1.6
Accretion of principal on notes			-		0.7		3.4		-		-		-		4.1
Impairment and restructuring charges			-		-		-		(0.1)		-		-		(0.1)
Stock compensation			0.7		-		-		-		-		-		0.7
Debt extinguishment costs			-		-		38.9		-		-		-		38.9
Acquisition related expenses			-		-		-		16.6		(4.4)		-		12.2
Realized gain on investments			-		-		-		(1.2)		-		-		(1.2)
Changes in operating assets and liabilities,
	net of effects of acquisitions		33.0		(23.9)		4.5		(140.8)		8.6		(52.0)		(170.6)
Net cash provided by (used in) operating
	activities - continuing operations		-		(57.7)		(2.2)		(28.9)		15.7		(14.6)		(87.7)
Net cash used in operating
	activities - discontinued operations		-		-		-		(0.1)		-		-		(0.1)
Net cash provided by (used in)
	operating activities		-		(57.7)		(2.2)		(29.0)		15.7		(14.6)		(87.8)

VANGUARD HEALTH SYSTEMS, INC.
Condensed Consolidating Statements of Cash Flows
For the three months ended September 30, 2011
(Continued)
				Issuers of		Issuers of
				Senior		Senior				Combined
				Notes and		Discount		Guarantor		Non-				Total
		Parent		Term Debt		Notes		Subsidiaries		Guarantors		Eliminations		Consolidated
		(In millions)
Investing activities:
Acquisitions and related expenses		$	-	$	-	$	-	$	(211.0)	$	0.9	$	-	$	(210.1)
Capital expenditures			-		-		-		(62.2)		(1.2)		-		(63.4)
Proceeds from asset dispositions			-		-		-		2.2		-		-		2.2
Net proceeds from sale of investments in
	securities		-		-		-		1.7		-		-		1.7
Net cash used in investing activities			-		-		-		(269.3)		(0.3)		-		(269.6)
Financing activities:
Payments of long-term debt and
	capital lease obligations		-		(8.2)		(445.8)		(2.4)		(0.1)		-		(456.5)
Proceeds from issuance of common stock			67.5		-		-		-		-		-		67.5
Payments of IPO related costs			(6.9)		-		-		-		-		-		(6.9)
Payments of tender premiums on note
	redemption		-		-		(27.6)		-		-		-		(27.6)
Dividends and related equity payments
	to equity holders		(0.2)		-		-		-		-		-		(0.2)
Distributions paid to non-controlling
	interests and other		-		-		-		-		(2.0)		1.2		(0.8)
Cash provided by (used in) intercompany
	activity		(60.4)		65.9		475.6		(188.5)		(306.0)		13.4		-
Net cash provided by (used in) financing
	activities		-		57.7		2.2		(190.9)		(308.1)		14.6		(424.5)
Net decrease in cash and cash
	equivalents		-		-		-		(489.2)		(292.7)		-		(781.9)
Cash and cash equivalents, beginning of
	period		-		-		-		644.1		292.5		-		936.6
Cash and cash equivalents, end of period		$	-	$	-	$	-	$	154.9	$	(0.2)	$	-	$	154.7