The following tables provide unaudited condensed financial information by operating segment for the three months and nine months ended March 31, 2012 and 2013, including a reconciliation of Segment EBITDA to income from continuing operations before income taxes (in millions).



	Three months ended March 31, 2012
	Acute Care Services			Health Plans			Eliminations			Consolidated
Patient service revenues, net ⁽¹⁾	$	1,391.7		$	—		$	—		$	1,391.7
Premium revenues	—			190.8			—			190.8
Inter-segment revenues	13.0			—			(13.0		)	—
Total revenues	1,404.7			190.8			(13.0		)	1,582.5

Salaries and benefits (excludes stock compensation)	710.4			9.5			—			719.9
Health plan claims expense ⁽¹⁾	—			146.6			—			146.6
Supplies	235.5			—			—			235.5
Other operating expenses-external	297.5			8.8			—			306.3
Operating expenses-intersegment	—			13.0			(13.0		)	—
Medicare and Medicaid EHR incentives	(2.4		)	—			—			(2.4		)
Segment EBITDA ⁽²⁾	163.7			12.9			—			176.6
Less:
Interest, net	43.9			(0.5		)	—			43.4
Depreciation and amortization	61.9			1.0			—			62.9
Equity method income	(1.1		)	—			—			(1.1		)
Stock compensation	1.9			—			—			1.9
Loss on disposal of assets	0.2			—			—			0.2
Acquisition related expenses	1.2			—			—			1.2
Pension credits	(1.3		)	—			—			(1.3		)
Income from continuing operations before income taxes	$	57.0		$	12.4		$	—		$	69.4

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⁽¹⁾	The Company eliminates in consolidation those patient service revenues earned by its health care facilities attributable to services provided to members in its owned health plans and eliminates the corresponding medical claims expenses incurred by the health plans for those services.

⁽²⁾

Segment EBITDA is defined as income from continuing operations before income taxes less interest expense (net of interest income), depreciation and amortization, equity method income, stock compensation, gain or loss on disposal of assets, realized gains or losses on investments, acquisition related expenses, debt extinguishment costs, impairment and restructuring charges, and pension expense (credits). Management uses Segment EBITDA to measure the performance of the Company’s segments and to develop strategic objectives and operating plans for those segments. Segment EBITDA eliminates the uneven effect of non-cash depreciation of tangible assets and amortization of intangible assets, much of which results from acquisitions accounted for under the purchase method of accounting. Segment EBITDA also eliminates the effects of changes in interest rates, which management believes relate to general trends in global capital markets, but are not necessarily indicative of the operating performance of the Company’s segments. Management believes that Segment EBITDA provides useful information to investors, lenders, financial analysts and rating agencies about the financial performance of the Company’s segments. Additionally, management believes that investors and lenders view Segment EBITDA as an important factor in making investment decisions and assessing the value of the Company. Segment EBITDA is not a substitute for net income, operating cash flows or other cash flow statement data determined in accordance with accounting principles generally accepted in the United States. Segment EBITDA, as presented, may not be comparable to similar measures of other companies.



	Three months ended March 31, 2013
	Acute Care Services			Health Plans		Eliminations			Consolidated
Patient service revenues, net ⁽¹⁾	$	1,316.0		$	—	$	—		$	1,316.0
Premium revenues	—			182.1		—			182.1
Inter-segment revenues	9.4			—		(9.4		)	—
Total revenues	1,325.4			182.1		(9.4		)	1,498.1

Salaries and benefits (excludes stock compensation)	684.9			9.8		—			694.7
Health plan claims expense ⁽¹⁾	—			137.3		—			137.3
Supplies	229.1			—		—			229.1
Other operating expenses-external	287.8			11.6		—			299.4
Operating expenses-intersegment	—			9.4		(9.4		)	—
Medicare and Medicaid EHR incentives	(5.4		)	—		—			(5.4		)
Segment EBITDA ⁽²⁾	129.0			14.0		—			143.0
Less:
Interest, net	48.1			0.7		—			48.8
Depreciation and amortization	59.7			1.0		—			60.7
Equity method income	(1.4		)	—		—			(1.4		)
Stock compensation	0.6			—		—			0.6
Loss on disposal of assets	0.3			—		—			0.3
Realized losses on investments	0.1			—		—			0.1
Acquisition related expenses	0.1			—		—			0.1
Debt extinguishment costs	1.3			—		—			1.3
Pension credits	(3.9		)	—		—			(3.9		)
Income from continuing operations before income taxes	$	24.1		$	12.3	$	—		$	36.4

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⁽¹⁾	The Company eliminates in consolidation those patient service revenues earned by its health care facilities attributable to services provided to members in its owned health plans and eliminates the corresponding medical claims expenses incurred by the health plans for those services.

⁽²⁾



	Nine months ended March 31, 2012
	Acute Care Services			Health Plans			Eliminations			Consolidated
Patient service revenues, net ⁽¹⁾	$	3,903.6		$	—		$	—		$	3,903.6
Premium revenues	—			590.6			—			590.6
Inter-segment revenues	32.1			—			(32.1		)	—
Total revenues	3,935.7			590.6			(32.1		)	4,494.2

Salaries and benefits (excludes stock compensation)	2,054.8			27.9			—			2,082.7
Health plan claims expense ⁽¹⁾	—			458.6			—			458.6
Supplies	676.9			0.1			—			677.0
Other operating expenses-external	836.2			31.6			—			867.8
Operating expenses-intersegment	—			32.1			(32.1		)	—
Medicare and Medicaid EHR incentives	(26.8		)	—			—			(26.8		)
Segment EBITDA ⁽²⁾	394.6			40.3			—			434.9
Less:
Interest, net	133.8			(1.4		)	—			132.4
Depreciation and amortization	188.0			3.3			—			191.3
Equity method income	(1.8		)	—			—			(1.8		)
Stock compensation	6.5			—			—			6.5
Gain on disposal of assets	(0.6		)	—			—			(0.6		)
Acquisition related expenses	13.8			—			—			13.8
Debt extinguishment costs	38.9			—			—			38.9
Impairment and restructuring charges	(0.1		)	—			—			(0.1		)
Pension credits	(3.9		)	—			—			(3.9		)
Income from continuing operations before income taxes	$	20.0		$	38.4		$	—		$	58.4

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⁽¹⁾	The Company eliminates in consolidation those patient service revenues earned by its health care facilities attributable to services provided to members in its owned health plans and eliminates the corresponding medical claims expenses incurred by the health plans for those services.

⁽²⁾



	Nine months ended March 31, 2013
	Acute Care Services			Health Plans			Eliminations			Consolidated
Patient service revenues, net ⁽¹⁾	$	3,930.1		$	—		$	—		$	3,930.1
Premium revenues	—			551.8			—			551.8
Inter-segment revenues	29.1			—			(29.1		)	—
Total revenues	3,959.2			551.8			(29.1		)	4,481.9

Salaries and benefits (excludes stock compensation)	2,039.3			28.8			—			2,068.1
Health plan claims expense ⁽¹⁾	—			421.4			—			421.4
Supplies	687.6			0.1			—			687.7
Other operating expenses-external	888.1			33.8			—			921.9
Operating expenses-intersegment	—			29.1			(29.1		)	—
Medicare and Medicaid EHR incentives	(31.2		)	—			—			(31.2		)
Segment EBITDA ⁽²⁾	375.4			38.6			—			414.0
Less:
Interest, net	149.7			(0.4		)	—			149.3
Depreciation and amortization	191.0			3.1			—			194.1
Equity method income	(1.8		)	—			—			(1.8		)
Stock compensation	5.5			—			—			5.5
Loss on disposal of assets	1.3			—			—			1.3
Realized losses on investments	0.3			—			—			0.3
Acquisition related expenses	0.2			—			—			0.2
Debt extinguishment costs	1.3			—			—			1.3
Pension credits	(11.6		)	—			—			(11.6		)
Income from continuing operations before income taxes	$	39.5		$	35.9		$	—		$	75.4

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⁽¹⁾	The Company eliminates in consolidation those patient service revenues earned by its health care facilities attributable to services provided to members in its owned health plans and eliminates the corresponding medical claims expenses incurred by the health plans for those services.

⁽²⁾