NOTE 11 - HOSPITAL QUALITY ASSURANCE FEE PROGRAM	3 Months Ended
Jun. 30, 2011
Other Parent Company Disclosures	NOTE 11 - HOSPITAL QUALITY ASSURANCE FEE PROGRAM In October 2009, the Governor of California signed legislation supported by the hospital industry to impose a provider fee on general acute care hospitals that, combined with federal matching funds, would be used to provide supplemental Medi-Cal payments to hospitals. The state submitted the plan to the Centers for Medicare and Medicaid Services (“CMS”) for a required review and approval process, and certain changes in the plan were required by CMS. Legislation amending the fee program to reflect the required changes was passed by the legislature and signed by the Governor on September 8, 2010. Among other changes, the legislation leaves distribution of “pass-through” payments received by Medi-Cal managed care plans that will be paid to hospitals under the program to the discretion of the plans. The hospital quality assurance fee program (“QAF”) created by this legislation initially provided payments for up to 21 months retroactive to April 2009 and expiring on December 31, 2010 (“2010 QAF”). During fiscal year 2011, the Company recognized $87.2 million in revenue from the state for the 2010 QAF of which $1.8 million was received in April 2011 and is reflected as a receivable in the accompanying unaudited condensed consolidated balance sheet as of March 31, 2011. All other amounts had been received during fiscal year 2011. As of March 31, 2011, $378.6 of the other expenses relating to the 2010 QAF was accrued and included in other current liabilities in the accompanying unaudited condensed consolidated balance sheet. In May 2011, CMS conditionally approved the extension of the QAF for the six month period from January 1 through June 30, 2011 (“2011 QAF”). Based on the most recent modeling prepared by the California Hospital Association, the Company anticipates making payments for provider fees and other expenses relating to the 2011 QAF of approximately $15.8 million and receiving approximately $31.6 million in net revenues from the state ($18.1 million from the fee-for-service portion and $13.5 million from the managed care portion). As of June 30, 2011, the Company has received $17.2 million from the fee-for-service portion of the 2011 QAF from the state and has paid fees to the state totaling $15.1 million. Until such time as all final approvals have been received from CMS, the amounts received and paid through June 30, 2011 are reflected as unearned revenue and a prepaid asset, respectively, in the accompanying unaudited condensed consolidated balance sheet as of June 30, 2011. The Company cannot provide any assurances or estimates in connection with a possible continuation of the QAF program beyond June 30, 2011.

NOTE 11 - HOSPITAL QUALITY ASSURANCE FEE PROGRAM

3 Months Ended

Jun. 30, 2011

NOTE 11 - HOSPITAL QUALITY ASSURANCE FEE PROGRAM

In October 2009, the Governor of California signed legislation supported by the hospital industry to impose a provider fee on general acute care hospitals that, combined with federal matching funds, would be used to provide supplemental Medi-Cal payments to hospitals. The state submitted the plan to the Centers for Medicare and Medicaid Services (“CMS”) for a required review and approval process, and certain changes in the plan were required by CMS. Legislation amending the fee program to reflect the required changes was passed by the legislature and signed by the Governor on September 8, 2010. Among other changes, the legislation leaves distribution of “pass-through” payments received by Medi-Cal managed care plans that will be paid to hospitals under the program to the discretion of the plans.

The hospital quality assurance fee program (“QAF”) created by this legislation initially provided payments for up to 21 months retroactive to April 2009 and expiring on December 31, 2010 (“2010 QAF”). During fiscal year 2011, the Company recognized $87.2 million in revenue from the state for the 2010 QAF of which $1.8 million was received in April 2011 and is reflected as a receivable in the accompanying unaudited condensed consolidated balance sheet as of March 31, 2011. All other amounts had been received during fiscal year 2011. As of March 31, 2011, $378.6 of the other expenses relating to the 2010 QAF was accrued and included in other current liabilities in the accompanying unaudited condensed consolidated balance sheet.

In May 2011, CMS conditionally approved the extension of the QAF for the six month period from January 1 through June 30, 2011 (“2011 QAF”).

Based on the most recent modeling prepared by the California Hospital Association, the Company anticipates making payments for provider fees and other expenses relating to the 2011 QAF of approximately $15.8 million and receiving approximately $31.6 million in net revenues from the state ($18.1 million from the fee-for-service portion and $13.5 million from the managed care portion). As of June 30, 2011, the Company has received $17.2 million from the fee-for-service portion of the 2011 QAF from the state and has paid fees to the state totaling $15.1 million. Until such time as all final approvals have been received from CMS, the amounts received and paid through June 30, 2011 are reflected as unearned revenue and a prepaid asset, respectively, in the accompanying unaudited condensed consolidated balance sheet as of June 30, 2011.

The Company cannot provide any assurances or estimates in connection with a possible continuation of the QAF program beyond June 30, 2011.