18. SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The Senior Notes, which are senior unsecured obligations of CHS, and the 5⅛% Senior Secured Notes are guaranteed on a senior basis by the Company and by certain of its existing and subsequently acquired or organized 100% owned domestic subsidiaries. The Senior Notes and the 5⅛% Senior Secured Notes are guaranteed on a joint and several basis, with limited exceptions considered customary for such guarantees, including the release of the guarantee when a subsidiary’s assets used in operations are sold. The following condensed consolidating financial statements present Community Health Systems, Inc. (as parent guarantor), CHS (as the issuer), the subsidiary guarantors, the subsidiary non-guarantors and eliminations. These condensed consolidating financial statements have been prepared and presented in accordance with SEC Regulation S-X Rule 3-10 “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.”

The accounting policies used in the preparation of this financial information are consistent with those elsewhere in the consolidated financial statements of the Company, except as noted below:

• Intercompany receivables and payables are presented gross in the supplemental condensed consolidating balance sheets.

• Cash flows from intercompany transactions are presented in cash flows from financing activities, as changes in intercompany balances with affiliates, net.

• Income tax expense is allocated from the parent guarantor to the income producing operations (other guarantors and non-guarantors) and the issuer through stockholders’ equity. As this approach represents an allocation, the income tax expense allocation is considered non-cash for statement of cash flow purposes.

• Interest expense, net has been presented to reflect net interest expense and interest income from outstanding long-term debt and intercompany balances.

The Company’s intercompany activity consists primarily of daily cash transfers for purposes of cash management, the allocation of certain expenses and expenditures paid for by the parent on behalf of its subsidiaries, and the push down of investment in its subsidiaries. This activity also includes the intercompany transactions between consolidated entities as part of the Receivables Facility that is further discussed in Note 11. The Company’s subsidiaries generally do not purchase services from one another; thus, the intercompany transactions do not represent revenue generating transactions. All intercompany transactions eliminate in consolidation.

From time to time, the Company sells and/or repurchases noncontrolling interests in consolidated subsidiaries, which may change subsidiaries between guarantors and non-guarantors. Amounts for prior periods are restated to reflect the status of guarantors or non-guarantors as of September 30, 2012.



Condensed Consolidating Balance Sheet
September 30, 2012

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	150,035	$	90,615	$	-	$	240,650
Patient accounts receivable, net of allowance for doubtful accounts		-		-		718,972		1,372,245		-		2,091,217
Supplies		-		-		254,223		110,749		-		364,972
Prepaid income taxes		20,233		-		-		-		-		20,233
Deferred income taxes		89,797		-		-		-		-		89,797
Prepaid expenses and taxes		-		155		103,344		29,308		-		132,807
Other current assets		-		-		189,931		77,804		-		267,735
Total current assets		110,030		155		1,416,505		1,680,721		-		3,207,411
Intercompany receivable		348,870		9,885,042		1,999,263		2,983,890		(15,217,065)		-
Property and equipment, net		-		-		4,674,640		2,431,154		-		7,105,794
Goodwill		-		-		2,534,696		1,862,777		-		4,397,473
Other assets, net		-		161,552		713,116		655,809		-		1,530,477
Net investment in subsidiaries		2,908,979		7,611,770		3,705,438		-		(14,226,187)		-
Total assets	$	3,367,879	$	17,658,519	$	15,043,658	$	9,614,351	$	(29,443,252)	$	16,241,155

LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	81,250	$	14,464	$	3,480	$	-	$	99,194
Accounts payable		-		1,117		582,281		225,857		-		809,255
Accrued interest		-		110,419		124		321		-		110,864
Accrued liabilities		7,580		-		636,001		318,329		-		961,910
Total current liabilities		7,580		192,786		1,232,870		547,987		-		1,981,223
Long-term debt		-		9,099,405		54,284		319,180		-		9,472,869
Intercompany payable		-		5,248,142		9,818,261		7,403,021		(22,469,424)		-
Deferred income taxes		704,725		-		-		-		-		704,725
Other long-term liabilities		1,085		209,210		614,717		174,068		-		999,080
Total liabilities		713,390		14,749,543		11,720,132		8,444,256		(22,469,424)		13,157,897
Redeemable noncontrolling interests in equity of consolidated subsidiaries		-		-		-		370,514		-		370,514
Equity:
Community Health Systems, Inc. stockholders’ equity:
Preferred stock		-		-		-		-		-		-
Common stock		922		-		1		2		(3)		922
Additional paid-in capital		1,104,570		1,152,752		1,258,509		639,290		(3,050,551)		1,104,570
Treasury stock, at cost		(6,678)		-		-		-		-		(6,678)
Accumulated other comprehensive (loss) income		(148,721)		(148,721)		(14,695)		-		163,416		(148,721)
Retained earnings		1,704,396		1,904,945		2,079,711		102,034		(4,086,690)		1,704,396
Total Community Health Systems, Inc. stockholders’ equity		2,654,489		2,908,976		3,323,526		741,326		(6,973,828)		2,654,489
Noncontrolling interests in equity of consolidated subsidiaries		-		-		-		58,255		-		58,255
Total equity		2,654,489		2,908,976		3,323,526		799,581		(6,973,828)		2,712,744
Total liabilities and equity	$	3,367,879	$	17,658,519	$	15,043,658	$	9,614,351	$	(29,443,252)	$	16,241,155



Condensed Consolidating Balance Sheet
December 31, 2011

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	8,920	$	120,945	$	-	$	129,865
Patient accounts receivable, net of allowance for doubtful accounts		-		-		1,190,956		643,211		-		1,834,167
Supplies		-		-		237,178		109,433		-		346,611
Prepaid income taxes		101,389		-		-		-		-		101,389
Deferred income taxes		89,797		-		-		-		-		89,797
Prepaid expenses and taxes		-		117		87,524		24,972		-		112,613
Other current assets		-		10,235		155,097		66,315		-		231,647
Total current assets		191,186		10,352		1,679,675		964,876		-		2,846,089
Intercompany receivable		249,088		9,294,301		1,046,486		1,774,718		(12,364,593)		-
Property and equipment, net		-		-		4,631,831		2,224,145		-		6,855,976
Goodwill		-		-		2,411,521		1,853,324		-		4,264,845
Other assets, net		-		99,511		515,882		626,537		-		1,241,930
Net investment in subsidiaries		2,670,155		7,388,874		2,317,131		-		(12,376,160)		-
Total assets	$	3,110,429	$	16,793,038	$	12,602,526	$	7,443,600	$	(24,740,753)	$	15,208,840

LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	49,954	$	10,114	$	3,638	$	-	$	63,706
Accounts payable		-		345		535,204		213,448		-		748,997
Accrued interest		-		109,984		131		6		-		110,121
Accrued liabilities		7,580		567		688,328		291,840		-		988,315
Total current liabilities		7,580		160,850		1,233,777		508,932		-		1,911,139
Long-term debt		-		8,707,805		54,651		20,342		-		8,782,798
Intercompany payable		-		5,000,003		7,843,539		6,108,561		(18,952,103)		-
Deferred income taxes		704,725		-		-		-		-		704,725
Other long-term liabilities		1,028		254,228		435,295		259,439		-		949,990
Total liabilities		713,333		14,122,886		9,567,262		6,897,274		(18,952,103)		12,348,652
Redeemable noncontrolling interests in equity of consolidated subsidiaries		-		-		-		395,743		-		395,743
Equity:
Community Health Systems, Inc. stockholders’ equity:
Preferred stock		-		-		-		-		-		-
Common stock		915		-		1		2		(3)		915
Additional paid-in capital		1,086,008		1,030,522		1,103,559		30,047		(2,164,128)		1,086,008
Treasury stock, at cost		(6,678)		-		-		-		-		(6,678)
Accumulated other comprehensive (loss) income		(184,479)		(184,479)		(21,687)		-		206,166		(184,479)
Retained earnings		1,501,330		1,824,109		1,953,391		53,185		(3,830,685)		1,501,330
Total Community Health Systems, Inc. stockholders’ equity		2,397,096		2,670,152		3,035,264		83,234		(5,788,650)		2,397,096
Noncontrolling interests in equity of consolidated subsidiaries		-		-		-		67,349		-		67,349
Total equity		2,397,096		2,670,152		3,035,264		150,583		(5,788,650)		2,464,445
Total liabilities and equity	$	3,110,429	$	16,793,038	$	12,602,526	$	7,443,600	$	(24,740,753)	$	15,208,840



Condensed Consolidating Statement of Income
Three Months Ended September 30, 2012

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Operating revenues (net of contractual allowances and discounts)	$	-	$	(2,551)	$	2,376,462	$	1,322,750	$	-	$	3,696,661
Provision for bad debts		-		-		316,988		167,643		-		484,631
Net operating revenues		-		(2,551)		2,059,474		1,155,107		-		3,212,030
Operating costs and expenses:
Salaries and benefits		-		-		905,141		619,970		-		1,525,111
Supplies		-		-		317,263		166,949		-		484,212
Other operating expenses		-		83		459,377		235,397		-		694,857
Electronic health records incentive reimbursement		-		-		(20,587)		(10,035)		-		(30,622)
Rent		-		-		38,559		30,078		-		68,637
Depreciation and amortization		-		-		120,620		61,587		-		182,207
Total operating costs and expenses		-		83		1,820,373		1,103,946		-		2,924,402
Income from operations		-		(2,634)		239,101		51,161		-		287,628
Interest expense, net		-		11,708		132,381		14,476		-		158,565
Loss from early extinguishment of debt		-		52,024		-		-		-		52,024
Equity in earnings of unconsolidated affiliates		(44,233)		(82,526)		(20,074)		-		139,414		(7,419)
Income from continuing operations before income taxes		44,233		16,160		126,794		36,685		(139,414)		84,458
Provision for (benefit from) income taxes		-		(28,073)		45,773		8,000		-		25,700
Income from continuing operations		44,233		44,233		81,021		28,685		(139,414)		58,758
Discontinued operations, net of taxes:
Income (loss) from operations of entities sold		-		-		-		-		-		-
Impairment of hospitals sold		-		-		-		-		-		-
Loss on sale, net		-		-		-		-		-		-
Loss from discontinued operations, net of taxes		-		-		-		-		-		-
Net income		44,233		44,233		81,021		28,685		(139,414)		58,758
Less: Net income attributable to noncontrolling interests		-		-		-		14,525		-		14,525
Net income attributable to Community Health Systems, Inc. stockholders	$	44,233	$	44,233	$	81,021	$	14,160	$	(139,414)	$	44,233



Condensed Consolidating Statement of Income
Three Months Ended September 30, 2011

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Operating revenues (net of contractual allowances and discounts)	$	-	$	-	$	2,307,560	$	1,088,213	$	-	$	3,395,773
Provision for bad debts		-		-		331,603		118,693		-		450,296
Net operating revenues		-		-		1,975,957		969,520		-		2,945,477
Operating costs and expenses:
Salaries and benefits		-		-		864,588		528,563		-		1,393,151
Supplies		-		-		317,139		142,007		-		459,146
Other operating expenses		-		-		431,533		192,075		-		623,608
Electronic health records incentive reimbursement		-		-		(28,090)		(12,137)		-		(40,227)
Rent		-		-		37,147		27,334		-		64,481
Depreciation and amortization		-		-		109,316		52,199		-		161,515
Total operating costs and expenses		-		-		1,731,633		930,041		-		2,661,674
Income from operations		-		-		244,324		39,479		-		283,803
Interest expense, net		-		15,484		132,041		11,955		-		159,480
Loss from early extinguishment of debt		-		-		-		-		-		-
Equity in earnings of unconsolidated affiliates		(74,304)		(77,141)		(9,432)		-		152,683		(8,194)
Income from continuing operations before income taxes		74,304		61,657		121,715		27,524		(152,683)		132,517
Provision for (benefit from) income taxes		-		(12,647)		43,939		5,425		-		36,717
Income from continuing operations		74,304		74,304		77,776		22,099		(152,683)		95,800
Discontinued operations, net of taxes:
Income (loss) from operations of entities sold		-		-		-		(3,103)		-		(3,103)
Impairment of hospitals sold		-		-		-		-		-		-
Loss on sale, net		-		-		-		(66)		-		(66)
Loss from discontinued operations, net of taxes		-		-		-		(3,169)		-		(3,169)
Net income		74,304		74,304		77,776		18,930		(152,683)		92,631
Less: Net income attributable to noncontrolling interests		-		-		-		18,327		-		18,327
Net income attributable to Community Health Systems, Inc. stockholders	$	74,304	$	74,304	$	77,776	$	603	$	(152,683)	$	74,304



Condensed Consolidating Statement of Income
Nine Months Ended September 30, 2012

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Operating revenues (net of contractual allowances and discounts)	$	-	$	(6,980)	$	7,178,086	$	4,055,474	$	-	$	11,226,580
Provision for bad debts		-		-		998,451		476,090		-		1,474,541
Net operating revenues		-		(6,980)		6,179,635		3,579,384		-		9,752,039
Operating costs and expenses:
Salaries and benefits		-		-		2,688,553		1,858,979		-		4,547,532
Supplies		-		-		968,505		504,015		-		1,472,520
Other operating expenses		-		418		1,387,034		752,573		-		2,140,025
Electronic health records incentive reimbursement		-		-		(45,732)		(27,860)		-		(73,592)
Rent		-		-		113,014		89,310		-		202,324
Depreciation and amortization		-		-		356,196		180,166		-		536,362
Total operating costs and expenses		-		418		5,467,570		3,357,183		-		8,825,171
Income from operations		-		(7,398)		712,065		222,201		-		926,868
Interest expense, net		-		45,033		379,004		38,310		-		462,347
Loss from early extinguishment of debt		-		115,453		-		-		-		115,453
Equity in earnings of unconsolidated affiliates		(203,066)		(287,320)		(107,110)		-		564,883		(32,613)
Income from continuing operations before income taxes		203,066		119,436		440,171		183,891		(564,883)		381,681
Provision for (benefit from) income taxes		-		(83,630)		158,901		45,767		-		121,038
Income from continuing operations		203,066		203,066		281,270		138,124		(564,883)		260,643
Discontinued operations, net of taxes:
Income (loss) from operations of entities sold		-		-		-		(466)		-		(466)
Impairment of hospitals sold		-		-		-		-		-		-
Loss on sale, net		-		-		-		-		-		-
Loss from discontinued operations, net of taxes		-		-		-		(466)		-		(466)
Net income		203,066		203,066		281,270		137,658		(564,883)		260,177
Less: Net income attributable to noncontrolling interests		-		-		-		57,111		-		57,111
Net income attributable to Community Health Systems, Inc. stockholders	$	203,066	$	203,066	$	281,270	$	80,547	$	(564,883)	$	203,066



Condensed Consolidating Statement of Income
Nine Months Ended September 30, 2011

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Operating revenues (net of contractual allowances and discounts)	$	-	$	-	$	6,438,997	$	3,744,657	$	-	$	10,183,654
Provision for bad debts		-		-		856,309		426,958		-		1,283,267
Net operating revenues		-		-		5,582,688		3,317,699		-		8,900,387
Operating costs and expenses:
Salaries and benefits		-		-		2,438,797		1,717,817		-		4,156,614
Supplies		-		-		882,510		483,732		-		1,366,242
Other operating expenses		-		-		1,214,638		678,500		-		1,893,138
Electronic health records incentive reimbursement		-		-		(28,090)		(12,137)		-		(40,227)
Rent		-		-		102,319		87,763		-		190,082
Depreciation and amortization		-		-		308,485		172,561		-		481,046
Total operating costs and expenses		-		-		4,918,659		3,128,236		-		8,046,895
Income from operations		-		-		664,029		189,463		-		853,492
Interest expense, net		-		65,799		372,320		47,809		-		485,928
Loss from early extinguishment of debt		-		-		-		-		-		-
Equity in earnings of unconsolidated affiliates		(171,017)		(211,395)		(32,710)		-		376,777		(38,345)
Income from continuing operations before income taxes		171,017		145,596		324,419		141,654		(376,777)		405,909
Provision for (benefit from) income taxes		-		(25,421)		117,115		33,936		-		125,630
Income from continuing operations		171,017		171,017		207,304		107,718		(376,777)		280,279
Discontinued operations, net of taxes:
Income (loss) from operations of entities sold		-		-		-		(4,546)		-		(4,546)
Impairment of hospitals sold		-		-		-		(47,930)		-		(47,930)
Loss on sale, net		-		-		-		(3,300)		-		(3,300)
Loss from discontinued operations, net of taxes		-		-		-		(55,776)		-		(55,776)
Net income		171,017		171,017		207,304		51,942		(376,777)		224,503
Less: Net income attributable to noncontrolling interests		-		-		-		53,486		-		53,486
Net income attributable to Community Health Systems, Inc. stockholders	$	171,017	$	171,017	$	207,304	$	(1,544)	$	(376,777)	$	171,017



Condensed Consolidating Statement of Comprehensive Income
Three Months Ended September 30, 2012

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In thousands)
Net income	$	44,233	$	44,233	$	81,021	$	28,685	$	(139,414)	$	58,758
Other comprehensive income (loss), net of taxes
Net change in fair value of interest rate swaps		8,254		8,254		-		-		(8,254)		8,254
Net change in fair value of available-for-sale securities		1,370		1,370		1,370		-		(2,740)		1,370
Amortization and recognition of unrecognized pension cost components		1,202		1,202		1,202		-		(2,404)		1,202
Other comprehensive income (loss)		10,826		10,826		2,572		-		(13,398)		10,826
Comprehensive income		55,059		55,059		83,593		28,685		(152,812)		69,584
Less: Comprehensive income attributable to noncontrolling interests		-		-		-		14,525		-		14,525
Comprehensive income attributable to Community Health Systems, Inc. stockholders	$	55,059	$	55,059	$	83,593	$	14,160	$	(152,812)	$	55,059



Condensed Consolidating Statement of Comprehensive Income
Three Months Ended September 30, 2011

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Net income	$	74,304	$	74,304	$	77,776	$	18,930	$	(152,683)	$	92,631
Other comprehensive income (loss), net of taxes
Net change in fair value of interest rate swaps		2,722		2,722		-		-		(2,722)		2,722
Net change in fair value of available-for-sale securities		(4,029)		(4,029)		(4,029)		-		8,058		(4,029)
Amortization and recognition of unrecognized pension cost components		790		790		790		-		(1,580)		790
Other comprehensive income (loss)		(517)		(517)		(3,239)		-		3,756		(517)
Comprehensive income		73,787		73,787		74,537		18,930		(148,927)		92,114
Less: Comprehensive income attributable to noncontrolling interests		-		-		-		18,327		-		18,327
Comprehensive income attributable to Community Health Systems, Inc. stockholders	$	73,787	$	73,787	$	74,537	$	603	$	(148,927)	$	73,787



Condensed Consolidating Statement of Comprehensive Income
Nine Months Ended September 30, 2012

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Net income	$	203,066	$	203,066	$	281,270	$	137,658	$	(564,883)	$	260,177
Other comprehensive income (loss), net of taxes
Net change in fair value of interest rate swaps		28,766		28,766		-		-		(28,766)		28,766
Net change in fair value of available-for-sale securities		3,509		3,509		3,509		-		(7,018)		3,509
Amortization and recognition of unrecognized pension cost components		3,483		3,483		3,483		-		(6,966)		3,483
Other comprehensive income (loss)		35,758		35,758		6,992		-		(42,750)		35,758
Comprehensive income		238,824		238,824		288,262		137,658		(607,633)		295,935
Less: Comprehensive income attributable to noncontrolling interests		-		-		-		57,111		-		57,111
Comprehensive income attributable to Community Health Systems, Inc. stockholders	$	238,824	$	238,824	$	288,262	$	80,547	$	(607,633)	$	238,824



Condensed Consolidating Statement of Comprehensive Income
Nine Months Ended September 30, 2011

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Net income	$	171,017	$	171,017	$	207,304	$	51,942	$	(376,777)	$	224,503
Other comprehensive income (loss), net of taxes
Net change in fair value of interest rate swaps		30,199		30,199		-		-		(30,199)		30,199
Net change in fair value of available-for-sale securities		(2,692)		(2,692)		(2,692)		-		5,384		(2,692)
Amortization and recognition of unrecognized pension cost components		2,369		2,369		2,369		-		(4,738)		2,369
Other comprehensive income (loss)		29,876		29,876		(323)		-		(29,553)		29,876
Comprehensive income		200,893		200,893		206,981		51,942		(406,330)		254,379
Less: Comprehensive income attributable to noncontrolling interests		-		-		-		53,486		-		53,486
Comprehensive income attributable to Community Health Systems, Inc. stockholders	$	200,893	$	200,893	$	206,981	$	(1,544)	$	(406,330)	$	200,893



Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 30, 2012

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(58,932)	$	(33,958)	$	736,312	$	134,443	$	-	$	777,865

Cash flows from investing activities:
Acquisitions of facilities and other related equipment		-		-		(302,759)		(10,168)		-		(312,927)
Purchases of property and equipment		-		-		(374,940)		(182,529)		-		(557,469)
Proceeds from disposition of hospitals and other ancillary
operations		-		-		-		-		-		-
Proceeds from sale of property and equipment		-		-		2,281		2,527		-		4,808
Increase in other investments		-		-		(168,506)		(53,658)		-		(222,164)
Net cash used in investing activities		-		-		(843,924)		(243,828)		-		(1,087,752)

Cash flows from financing activities:
Proceeds from exercise of stock options		5,750		-		-		-		-		5,750
Repurchase of restricted stock shares for payroll tax withholding requirements		(9,165)		-		-		-		-		(9,165)
Deferred financing costs		-		(135,647)		-		-		-		(135,647)
Excess tax benefit (income tax payable increase) relating to stock-based compensation		1,545		-		-		-		-		1,545
Stock buy back		-		-		-		-		-		-
Proceeds from noncontrolling investors in joint ventures		-		-		-		535		-		535
Redemption of noncontrolling investments in joint ventures		-		-		-		(39,709)		-		(39,709)
Distributions to noncontrolling investors in joint ventures		-		-		-		(60,676)		-		(60,676)
Changes in intercompany balances with affiliates, net		60,802		(189,385)		248,311		(119,728)		-		-
Borrowings under credit agreement		-		5,904,978		19,399		-		-		5,924,377
Issuance of long-term debt		-		3,825,000		-		-		-		3,825,000
Proceeds from receivables facility		-		-		-		300,000		-		300,000
Repayments of long-term indebtedness		-		(9,370,988)		(18,983)		(1,367)		-		(9,391,338)
Net cash provided by (used in) financing activities		58,932		33,958		248,727		79,055		-		420,672
Net change in cash and cash equivalents		-		-		141,115		(30,330)		-		110,785
Cash and cash equivalents at beginning of period		-		-		8,920	$	120,945		-		129,865
Cash and cash equivalents at end of period	$	-	$	-	$	150,035	$	90,615	$	-	$	240,650



Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 30, 2011

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(23,970)	$	(120,269)	$	659,348	$	305,126	$	-	$	820,235

Cash flows from investing activities:
Acquisitions of facilities and other related equipment		-		-		(163,397)		(46,054)		-		(209,451)
Purchases of property and equipment		-		-		(301,466)		(231,379)		-		(532,845)
Proceeds from disposition of hospitals and other ancillary
operations		-		-		-		172,578		-		172,578
Proceeds from sale of property and equipment		-		-		1,269		7,982		-		9,251
Increase in other investments		-		-		(90,009)		(40,971)		-		(130,980)
Net cash used in investing activities		-		-		(553,603)		(137,844)		-		(691,447)

Cash flows from financing activities:
Proceeds from exercise of stock options		18,880		-		-		-		-		18,880
Repurchase of restricted stock shares for payroll tax withholding requirements		-		-		-		-		-		-
Deferred financing costs		-		(100)		-		-		-		(100)
Excess tax benefit (income tax payable increase) relating to stock-based compensation		4,616		-		-		-		-		4,616
Stock buy back		(85,790)		-		-		-		-		(85,790)
Proceeds from noncontrolling investors in joint ventures		-		-		-		1,229		-		1,229
Redemption of noncontrolling investments in joint ventures		-		-		-		(4,784)		-		(4,784)
Distributions to noncontrolling investors in joint ventures		-		-		-		(49,928)		-		(49,928)
Changes in intercompany balances with affiliates, net		86,264		157,854		(157,936)		(86,182)		-		-
Borrowings under credit agreement		-		83,000		-		-		-		83,000
Issuance of long-term debt		-		-		-		-		-		-
Proceeds from receivables facility		-		-		-		-		-		-
Repayments of long-term indebtedness		-		(120,485)		(1,195)		(7,088)		-		(128,768)
Net cash provided by (used in) financing activities		23,970		120,269		(159,131)		(146,753)		-		(161,645)
Net change in cash and cash equivalents		-		-		(53,386)		20,529		-		(32,857)
Cash and cash equivalents at beginning of period		-		-		212,992		86,177		-		299,169
Cash and cash equivalents at end of period	$	-	$	-	$	159,606	$	106,706	$	-	$	266,312