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 December 31, 2012.



Condensed Consolidating Statement of Income
Year Ended December 31, 2012

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	(9,653)	$	9,579,838	$	5,417,994	$	-	$	14,988,179
Provision for bad debts		-		-		1,323,508		635,686		-		1,959,194
Net operating revenues		-		(9,653)		8,256,330		4,782,308		-		13,028,985
Operating costs and expenses:
Salaries and benefits		-		-		3,623,082		2,480,849		-		6,103,931
Supplies		-		-		1,297,714		675,777		-		1,973,491
Other operating expenses		-		603		1,873,782		995,401		-		2,869,786
Electronic health records incentive reimbursement		-		-		(79,936)		(46,798)		-		(126,734)
Rent		-		-		152,205		120,624		-		272,829
Depreciation and amortization		-		-		480,912		244,646		-		725,558
Total operating costs and expenses		-		603		7,347,759		4,470,499		-		11,818,861
Income from operations		-		(10,256)		908,571		311,809		-		1,210,124
Interest expense, net		-		58,726		505,270		58,937		-		622,933
Loss from early extinguishment of debt		-		115,453		-		-		-		115,453
Equity in earnings of unconsolidated affiliates		(265,640)		(348,878)		(150,606)		-		723,091		(42,033)
Impairment of long-lived assets		-		-		10,000		-		-		10,000
Income from continuing operations before income taxes		265,640		164,443		543,907		252,872		(723,091)		503,771
Provision for (benefit from) income taxes		-		(101,197)		196,351		62,348		-		157,502
Income from continuing operations		265,640		265,640		347,556		190,524		(723,091)		346,269
Discontinued operations, net of taxes:
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		265,640		265,640		347,556		190,058		(723,091)		345,803
Less: Net income attributable to noncontrolling interests		-		-		-		80,163		-		80,163
Net income attributable to Community Health Systems,
Inc. stockholders	$	265,640	$	265,640	$	347,556	$	109,895	$	(723,091)	$	265,640



Condensed Consolidating Statement of Income
Year Ended December 31, 2011

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	-	$	8,625,818	$	5,000,350	$	-	$	13,626,168
Provision for bad debts		-		-		1,137,662		582,294		-		1,719,956
Net operating revenues		-		-		7,488,156		4,418,056		-		11,906,212
Operating costs and expenses:
Salaries and benefits		-		-		3,284,123		2,293,802		-		5,577,925
Supplies		-		-		1,183,817		650,289		-		1,834,106
Other operating expenses		-		-		1,634,806		880,832		-		2,515,638
Electronic health records incentive reimbursement		-		-		(43,959)		(19,438)		-		(63,397)
Rent		-		-		138,229		116,552		-		254,781
Depreciation and amortization		-		-		420,824		231,850		-		652,674
Total operating costs and expenses		-		-		6,617,840		4,153,887		-		10,771,727
Income from operations		-		-		870,316		264,169		-		1,134,485
Interest expense, net		-		87,095		495,888		61,427		-		644,410
Loss from early extinguishment of debt		-		66,019		-		-		-		66,019
Equity in earnings of unconsolidated affiliates		(201,948)		(287,903)		(65,846)		-		506,206		(49,491)
Impairment of long-lived assets		-		-		-		-		-		-
Income from continuing operations before income taxes		201,948		134,789		440,274		202,742		(506,206)		473,547
Provision for (benefit from) income taxes		-		(67,159)		158,939		45,873		-		137,653
Income from continuing operations		201,948		201,948		281,335		156,869		(506,206)		335,894
Discontinued operations, net of taxes:
Loss from operations of entities sold		-		-		-		(7,769)		-		(7,769)
Impairment of hospitals sold		-		-		-		(47,930)		-		(47,930)
Loss on sale, net		-		-		-		(2,572)		-		(2,572)
Loss from discontinued operations, net of taxes		-		-		-		(58,271)		-		(58,271)
Net income		201,948		201,948		281,335		98,598		(506,206)		277,623
Less: Net income attributable to noncontrolling interests		-		-		-		75,675		-		75,675
Net income attributable to Community Health Systems,
Inc. stockholders	$	201,948	$	201,948	$	281,335	$	22,923	$	(506,206)	$	201,948



Condensed Consolidating Statement of Income
Year Ended December 31, 2010

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Operating revenues (net of contractual
allowances and discounts)	$	-	$	-	$	7,959,274	$	4,664,000	$	-	$	12,623,274
Provision for bad debts		-		-		1,018,880		511,972		-		1,530,852
Net operating revenues		-		-		6,940,394		4,152,028		-		11,092,422
Operating costs and expenses:
Salaries and benefits		-		-		3,008,055		2,085,712		-		5,093,767
Supplies		-		-		1,113,702		624,386		-		1,738,088
Other operating expenses		-		-		1,442,230		853,833		-		2,296,063
Electronic health records incentive reimbursement		-		-		-		-		-		-
Rent		-		-		132,032		116,431		-		248,463
Depreciation and amortization		-		-		376,963		218,034		-		594,997
Total operating costs and expenses		-		-		6,072,982		3,898,396		-		9,971,378
Income from operations		-		-		867,412		253,632		-		1,121,044
Interest expense, net		-		113,464		478,004		56,125		-		647,593
Loss from early extinguishment of debt		-		-		-		-		-		-
Equity in earnings of unconsolidated affiliates		(279,983)		(322,228)		(116,313)		-		673,081		(45,443)
Impairment of long-lived assets		-		-		-		-		-		-
Income from continuing operations before income taxes		279,983		208,764		505,721		197,507		(673,081)		518,894
Provision for (benefit from) income taxes		-		(71,219)		186,105		48,795		-		163,681
Income from continuing operations		279,983		279,983		319,616		148,712		(673,081)		355,213
Discontinued operations, net of taxes:
Loss from operations of entities sold		-		-		-		(6,772)		-		(6,772)
Impairment of hospitals sold		-		-		-		-		-		-
Loss on sale, net		-		-		-		-		-		-
Loss from discontinued operations, net of taxes		-		-		-		(6,772)		-		(6,772)
Net income		279,983		279,983		319,616		141,940		(673,081)		348,441
Less: Net income attributable to noncontrolling interests		-		-		-		68,458		-		68,458
Net income attributable to Community Health Systems,
Inc. stockholders	$	279,983	$	279,983	$	319,616	$	73,482	$	(673,081)	$	279,983



Condensed Consolidating Statement of Comprehensive Income
Year Ended December 31, 2012

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
		(In thousands)
Net income	$	265,640	$	265,640	$	347,556	$	190,058	$	(723,091)	$	345,803
Other comprehensive income (loss), net of taxes
Net change in fair value of interest rate swaps		46,409		46,409		-		-		(46,409)		46,409
Net change in fair value of available-for-sale securities		3,012		3,012		3,012		-		(6,024)		3,012
Amortization and recognition of unrecognized pension cost components		(10,252)		(10,252)		(10,252)		-		20,504		(10,252)
Other comprehensive income (loss)		39,169		39,169		(7,240)		-		(31,929)		39,169
Comprehensive income		304,809		304,809		340,316		190,058		(755,020)		384,972
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		80,163		-		80,163
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	304,809	$	304,809	$	340,316	$	109,895	$	(755,020)	$	304,809



Condensed Consolidating Statement of Comprehensive Income
Year Ended December 31, 2011

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Net income	$	201,948	$	201,948	$	281,335	$	98,598	$	(506,206)	$	277,623
Other comprehensive income (loss), net of taxes
Net change in fair value of interest rate swaps		55,145		55,145		-		-		(55,145)		55,145
Net change in fair value of available-for-sale securities		(960)		(960)		(960)		-		1,920		(960)
Amortization and recognition of unrecognized pension cost components		(7,737)		(7,737)		(7,737)		-		15,474		(7,737)
Other comprehensive income (loss)		46,448		46,448		(8,697)		-		(37,751)		46,448
Comprehensive income		248,396		248,396		272,638		98,598		(543,957)		324,071
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		75,675		-		75,675
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	248,396	$	248,396	$	272,638	$	22,923	$	(543,957)	$	248,396



Condensed Consolidating Statement of Comprehensive Income
Year Ended December 31, 2010

	Parent Guarantor		Issuer		Other Guarantors		Non - Guarantors		Eliminations		Consolidated
	(In thousands)
Net income	$	279,983	$	279,983	$	319,616	$	141,940	$	(673,081)	$	348,441
Other comprehensive income (loss), net of taxes
Net change in fair value of interest rate swaps		(15,676)		(15,676)		-		-		15,676		(15,676)
Net change in fair value of available-for-sale securities		3,716		3,716		3,716		-		(7,432)		3,716
Amortization and recognition of unrecognized pension cost components		2,418		2,418		2,418		-		(4,836)		2,418
Other comprehensive income (loss)		(9,542)		(9,542)		6,134		-		3,408		(9,542)
Comprehensive income		270,441		270,441		325,750		141,940		(669,673)		338,899
Less: Comprehensive income attributable to
noncontrolling interests		-		-		-		68,458		-		68,458
Comprehensive income attributable to Community
Health Systems, Inc. stockholders	$	270,441	$	270,441	$	325,750	$	73,482	$	(669,673)	$	270,441



Condensed Consolidating Balance Sheet
December 31, 2012
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated

	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	-	$	-	$	271,559	$	116,254	$	-	$	387,813
Patient accounts receivable, net of allowance
for doubtful accounts		-		-		676,649		1,390,730		-		2,067,379
Supplies		-		-		254,853		113,319		-		368,172
Prepaid income taxes		49,888		-		-		-		-		49,888
Deferred income taxes		117,045		-		-		-		-		117,045
Prepaid expenses and taxes		-		115		86,628		39,818		-		126,561
Other current assets		-		-		222,424		79,860		-		302,284
Total current assets		166,933		115		1,512,113		1,739,981		-		3,419,142
Intercompany receivable		406,534		9,837,904		3,723,120		3,262,823		(17,230,381)		-
Property and equipment, net		-		-		4,660,557		2,491,316		-		7,151,873
Goodwill		-		-		2,544,195		1,863,943		-		4,408,138
Other assets, net		-		165,236		1,273,347		816,373		(627,774)		1,627,182
Net investment in subsidiaries		2,974,965		8,686,242		3,427,182		-		(15,088,389)		-
Total assets	$	3,548,432	$	18,689,497	$	17,140,514	$	10,174,436	$	(32,946,544)	$	16,606,335

LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	-	$	75,679	$	11,103	$	3,129	$	-	$	89,911
Accounts payable		-		74		583,865		241,975		-		825,914
Accrued interest		-		110,091		295		316		-		110,702
Accrued liabilities		7,580		-		748,010		361,103		-		1,116,693
Total current liabilities		7,580		185,844		1,343,273		606,523		-		2,143,220
Long-term debt		-		9,079,392		53,201		318,801		-		9,451,394
Intercompany payable		-		5,639,928		11,693,119		7,822,313		(25,155,360)		-
Deferred income taxes		808,489		-		-		-		-		808,489
Other long-term liabilities		1,156		809,372		675,341		180,950		(627,774)		1,039,045
Total liabilities		817,225		15,714,536		13,764,934		8,928,587		(25,783,134)		13,442,148
Redeemable noncontrolling interests in
equity of consolidated subsidiaries		-		-		-		367,666		-		367,666
Equity:
Community Health Systems, Inc. stockholders’
equity:
Preferred stock		-		-		-		-		-		-
Common stock		929		-		1		2		(3)		929
Additional paid-in capital		1,138,274		1,176,342		1,283,499		690,929		(3,150,770)		1,138,274
Treasury stock, at cost		(6,678)		-		-		-		-		(6,678)
Accumulated other comprehensive (loss)
income		(145,310)		(145,310)		(28,927)		-		174,237		(145,310)
Retained earnings		1,743,992		1,943,929		2,121,007		121,938		(4,186,874)		1,743,992
Total Community Health Systems, Inc.
stockholders’ equity		2,731,207		2,974,961		3,375,580		812,869		(7,163,410)		2,731,207
Noncontrolling interests in equity of
consolidated subsidiaries		-		-		-		65,314		-		65,314
Total equity		2,731,207		2,974,961		3,375,580		878,183		(7,163,410)		2,796,521
Total liabilities and equity	$	3,548,432	$	18,689,497	$	17,140,514	$	10,174,436	$	(32,946,544)	$	16,606,335



Condensed Consolidating Balance Sheet
December 31, 2011

	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		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 Cash Flows
Year Ended December 31, 2012

	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In thousands)
Net cash (used in) provided by operating
activities	$	(55,122)	$	(71,683)	$	1,156,708	$	250,217	$	-	$	1,280,120

Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(309,731)		(12,584)		-		(322,315)
Purchases of property and equipment		-		-		(540,816)		(227,974)		-		(768,790)
Proceeds from disposition of hospitals and
other ancillary operations		-		-		-		-		-		-
Proceeds from sale of property and equipment		-		-		2,756		3,141		-		5,897
Increase in other investments		-		10,000		(231,326)		(76,668)		-		(297,994)
Net cash used in investing activities		-		10,000		(1,079,117)		(314,085)		-		(1,383,202)

Cash flows from financing activities:
Proceeds from exercise of stock options		20,858		-		-		-		-		20,858
Repurchase of restricted stock shares for payroll
tax withholding requirements		(9,314)		-		-		-		-		(9,314)
Deferred financing costs		-		(141,219)		-		-		-		(141,219)
Excess tax benefit relating to
stock-based compensation		3,973		-		-		-		-		3,973
Payment of special dividend to stockholders		(22,535)		-		-		-		-		(22,535)
Stock buy-back		-		-		-		-		-		-
Proceeds from noncontrolling investors in joint
ventures		-		-		-		535		-		535
Redemption of noncontrolling investments in joint
ventures		-		-		-		(44,287)		-		(44,287)
Distributions to noncontrolling investors in joint
ventures		-		-		-		(68,344)		-		(68,344)
Changes in intercompany balances with
affiliates, net		62,140		(124,560)		189,076		(126,656)		-		-
Borrowings under credit agreement		-		3,955,000		20,866		-		-		3,975,866
Issuance of long-term debt		-		3,825,000		-		-		-		3,825,000
Proceeds from receivables facility		-		-		-		350,000		-		350,000
Repayments of long-term indebtedness		-		(7,452,538)		(24,894)		(52,071)		-		(7,529,503)
Net cash provided by (used in) financing
activities		55,122		61,683		185,048		59,177		-		361,030
Net change in cash and cash equivalents		-		-		262,639		(4,691)		-		257,948
Cash and cash equivalents at beginning of period		-		-		8,920	$	120,945		-		129,865
Cash and cash equivalents at end of period	$	-	$	-	$	271,559	$	116,254	$	-	$	387,813



Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2011
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated
	(In thousands)
Net cash (used in) provided by operating
activities	$	(41,780)	$	(111,001)	$	918,947	$	495,742	$	-	$	1,261,908

Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(370,243)		(45,117)		-		(415,360)
Purchases of property and equipment		-		-		(440,754)		(335,959)		-		(776,713)
Proceeds from disposition of hospitals and
other ancillary operations		-		-		-		173,387		-		173,387
Proceeds from sale of property and equipment		-		-		2,283		8,877		-		11,160
Increase in other investments		-		(10,000)		(129,852)		(48,397)		-		(188,249)
Net cash used in investing activities		-		(10,000)		(938,566)		(247,209)		-		(1,195,775)

Cash flows from financing activities:
Proceeds from exercise of stock options		18,910		-		-		-		-		18,910
Repurchase of restricted stock shares for payroll
tax withholding requirements		(13,311)		-		-		-		-		(13,311)
Deferred financing costs		-		(19,352)		-		-		-		(19,352)
Excess tax benefit relating to
stock-based compensation		5,290		-		-		-		-		5,290
Payment of special dividend to stockholders		-		-		-		-		-		-
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		-		-		-		(13,022)		-		(13,022)
Distributions to noncontrolling investors in joint
ventures		-		-		-		(56,094)		-		(56,094)
Changes in intercompany balances with
affiliates, net		116,681		209,056		(175,332)		(150,405)		-		-
Borrowings under credit agreement		-		560,000		18,236		2,145		(2,145)		578,236
Issuance of long-term debt		-		1,000,000		-		-		-		1,000,000
Proceeds from receivables facility		-		-		-		-		-		-
Repayments of long-term indebtedness		-		(1,628,703)		(23,200)		(1,775)		2,145		(1,651,533)
Net cash provided by (used in) financing
activities		41,780		121,001		(180,296)		(217,922)		-		(235,437)
Net change in cash and cash equivalents		-		-		(199,915)		30,611		-		(169,304)
Cash and cash equivalents at beginning of period		-		-		208,835	$	90,334		-		299,169
Cash and cash equivalents at end of period	$	-	$	-	$	8,920	$	120,945	$	-	$	129,865



Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2010
	Parent				Other		Non -
	Guarantor		Issuer		Guarantors		Guarantors		Eliminations		Consolidated

	(In thousands)
Net cash (used in) provided by operating
activities	$	(154,101)	$	(87,018)	$	774,222	$	655,627	$	-	$	1,188,730

Cash flows from investing activities:
Acquisitions of facilities and other related
equipment		-		-		(204,773)		(43,478)		-		(248,251)
Purchases of property and equipment		-		-		(342,735)		(324,643)		-		(667,378)
Proceeds from disposition of hospitals and
other ancillary operations		-		-		-		-		-		-
Proceeds from sale of property and equipment		-		-		8,140		261		-		8,401
Increase in other investments		-		-		(112,587)		(24,495)		-		(137,082)
Net cash used in investing activities		-		-		(651,955)		(392,355)		-		(1,044,310)

Cash flows from financing activities:
Proceeds from exercise of stock options		56,916		-		-		-		-		56,916
Repurchase of restricted stock shares for payroll
tax withholding requirements		-		-		-		-		-		-
Deferred financing costs		-		(13,260)		-		-		-		(13,260)
Excess tax benefit relating to
stock-based compensation		10,219		-		-		-		-		10,219
Payment of special dividend to stockholders		-		-		-		-		-		-
Stock buy-back		(113,961)		-		-		-		-		(113,961)
Proceeds from noncontrolling investors in joint
ventures		-		-		-		7,201		-		7,201
Redemption of noncontrolling investments in joint
ventures		-		-		-		(7,318)		-		(7,318)
Distributions to noncontrolling investors in joint
ventures		-		-		-		(68,113)		-		(68,113)
Changes in intercompany balances with
affiliates, net		200,927		144,788		(144,642)		(201,073)		-		-
Borrowings under credit agreement		-		-		-		-		-		-
Issuance of long-term debt		-		-		-		-		-		-
Proceeds from receivables facility		-		-		-		-		-		-
Repayments of long-term indebtedness		-		(44,510)		(7,240)		(9,726)		-		(61,476)
Net cash provided by (used in) financing
activities		154,101		87,018		(151,882)		(279,029)		-		(189,792)
Net change in cash and cash equivalents		-		-		(29,615)		(15,757)		-		(45,372)
Cash and cash equivalents at beginning of period		-		-		238,450		106,091		-		344,541
Cash and cash equivalents at end of period	$	-	$	-	$	208,835	$	90,334	$	-	$	299,169