15.Supplemental Condensed Consolidating Financial Statements

Health Management Associates, Inc. (referred to as the “Parent Issuer” for the remainder of this Note 14) is the primary obligor under the Credit Facilities, as well as our 6.125% Senior Notes due 2016 and our 7.375% Senior Notes due 2020. Certain of the Parent Issuer’s material domestic subsidiaries that are 100% owned (the “Guarantor Subsidiaries”) provide joint and several unconditional guarantees as to payment for borrowings under such long-term debt arrangements; however, other Parent Issuer subsidiaries (the “Non-Guarantor Subsidiaries”) have not been required to provide any such guarantees. See Note 3 herein and Note 3 to the audited consolidated financial statements included in our 2012 Form 10-K for further information regarding our long-term debt arrangements. Following are schedules which present condensed consolidating financial statements as of September 30, 2013 and December 31, 2012, as well as the three and nine months ended September 30, 2013 and 2012. However, this financial information may not necessarily be indicative of the results of operations, cash flows or financial position of the Parent Issuer, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries if they had operated as independent entities.


Health Management Associates, Inc.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2013
(in thousands)

	Parent Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated

Net revenue before the provision for doubtful accounts	$	-	$	969,614	$	707,065	$	-	$	1,676,679
Provision for doubtful accounts		-		(149,979)		(105,457)		-		(255,436)
Net revenue		-		819,635		601,608		-		1,421,243

Salaries and benefits		-		307,950		347,889		-		655,839
Supplies		-		143,672		76,850		-		220,522
Rent expense		-		19,652		20,841		-		40,493
Other operating expenses		-		191,942		179,450		-		371,392
Medicare and Medicaid HCIT incentive payments		-		(1,972)		(43)		-		(2,015)
Change in control and other related expense		-		-		102,886		-		102,886
Equity in the earnings of consolidated subsidiaries		47,816		-		-		(47,816)		-
Depreciation and amortization		9,294		55,331		34,726		-		99,351
Interest expense		65,231		2,652		2,864		-		70,747
Other		305		275		304		-		884
		122,646		719,502		765,767		(47,816)		1,560,099

Income (loss) from continuing operations before income taxes		(122,646)		100,133		(164,159)		47,816		(138,856)
Income tax (expense) benefit		45,814		(66,809)		86,504		-		65,509
Income (loss) from continuing operations		(76,832)		33,324		(77,655)		47,816		(73,347)
Income (loss) from discontinued operations, net of
income taxes		-		-		-		-		-
Consolidated net income (loss)		(76,832)		33,324		(77,655)		47,816		(73,347)
Net income attributable to noncontrolling interests		-		-		(3,485)		-		(3,485)
Accretion of redeemable equity securities		-		-		(19,813)		-		(19,813)
Net income (loss) attributable to Health Management
Associates, Inc. common stockholders	$	(76,832)	$	33,324	$	(100,953)	$	47,816	$	(96,645)


Health Management Associates, Inc.
Condensed Consolidating Statement of Comprehensive Income (Loss)
Three Months Ended September 30, 2013
(in thousands)

	Parent Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated

Consolidated net income (loss)	$	(76,832)	$	33,324	$	(77,655)	$	47,816	$	(73,347)
Components of other comprehensive income
before income taxes attributable to:
Available-for-sale securities:
Unrealized gains (losses), net		-		-		4,720		-		4,720
Adjustments for net (gains) losses reclassified
into net income		-		-		(706)		-		(706)
Interest rate swap contract:
Reclassification adjustments for amortization
into net income		17,208		-		-		-		17,208
Other comprehensive income before income taxes		17,208		-		4,014		-		21,222
Income tax expense related to items
of other comprehensive income		(6,680)		-		(1,405)		-		(8,085)
Other comprehensive income (loss), net		10,528		-		2,609		-		13,137

Total consolidated comprehensive income (loss)		(66,304)		33,324		(69,709)		47,816		(60,210)
Total comprehensive income (loss) attributable to
noncontrolling interests		-		-		(3,485)		-		(3,485)
Accretion of redeemable equity securities		-		-		(19,813)		-		(19,813)
Total comprehensive income (loss) attributable to Health
Management Associates, Inc. common
stockholders	$	(66,304)	$	33,324	$	(93,007)	$	47,816	$	(83,508)


Health Management Associates, Inc.
Condensed Consolidating Statement of Operations
Three Months Ended September 30, 2012
(in thousands)
(restated)
	Parent Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated

Net revenue before the provision for doubtful accounts	$	-	$	1,004,282	$	658,655	$	-	$	1,662,937
Provision for doubtful accounts		-		(143,884)		(80,194)		-		(224,078)
Net revenue		-		860,398		578,461		-		1,438,859

Salaries and benefits		-		333,294		304,011		-		637,305
Supplies		-		147,995		68,824		-		216,819
Rent expense		-		21,409		20,398		-		41,807
Other operating expenses		-		182,506		149,850		-		332,356
Medicare and Medicaid HCIT incentive payments		-		(15,990)		(8,234)		-		(24,224)
Equity in the earnings of consolidated subsidiaries		(93,895)		-		-		93,895		-
Depreciation and amortization		4,946		52,819		33,798		-		91,563
Interest expense		72,789		2,507		1,620		-		76,916
Other		(361)		(137)		(1,865)		-		(2,363)
		(16,521)		724,403		568,402		93,895		1,370,179

Income from continuing operations before income taxes		16,521		135,995		10,059		(93,895)		68,680
Income tax (expense) benefit		24,422		(42,704)		(1,381)		-		(19,663)
Income from continuing operations		40,943		93,291		8,678		(93,895)		49,017
Loss from discontinued operations, net of
income taxes		-		-		(1,389)		-		(1,389)
Consolidated net income		40,943		93,291		7,289		(93,895)		47,628
Net income attributable to noncontrolling interests		-		8		(6,693)		-		(6,685)
										-
Net income (loss) attributable to Health Management
Associates, Inc. common stockholders	$	40,943	$	93,299	$	596	$	(93,895)	$	40,943



Health Management Associates, Inc.
Condensed Consolidating Statement of Comprehensive Income
Three Months Ended September 30, 2012
(in thousands)
(restated)
	Parent Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated

Consolidated net income	$	40,943	$	93,291	$	7,289	$	(93,895)	$	47,628
Components of other comprehensive income
before income taxes attributable to:
Available-for-sale securities:
Unrealized gains (losses), net		(1)		-		4,245		-		4,244
Adjustments for net (gains) losses
reclassified into net income		-		-		(443)		-		(443)
Interest rate swap contract:
Reclassification adjustments for
amortization into net income		19,404		-		-		-		19,404
Other comprehensive income (loss) before income
taxes		19,403		-		3,802		-		23,205
Income tax expense related to items
of other comprehensive income		(7,531)		-		(1,332)		-		(8,863)
Other comprehensive income (loss), net		11,872		-		2,470		-		14,342

Total consolidated comprehensive income		52,815		93,291		9,759		(93,895)		61,970
Total comprehensive income attributable to
noncontrolling interests		-		8		(6,693)		-		(6,685)
Total comprehensive income (loss) attributable to
Health Management Associates, Inc.
common stockholders	$	52,815	$	93,299	$	3,066	$	(93,895)	$	55,285


Health Management Associates, Inc.
Condensed Consolidating Statement of Operations
Nine Months Ended September 30, 2013
(in thousands)

	Parent Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated

Net revenue before the provision for doubtful accounts	$	-	$	3,017,338	$	2,083,136	$	-	$	5,100,474
Provision for doubtful accounts		-		(432,025)		(297,670)		-		(729,695)
Net revenue		-		2,585,313		1,785,466		-		4,370,779

Salaries and benefits		-		962,221		1,051,294		-		2,013,515
Supplies		-		459,728		229,306		-		689,034
Rent expense		-		61,619		64,087		-		125,706
Other operating expenses		-		561,775		482,207		-		1,043,982
Medicare and Medicaid HCIT incentive payments		-		(11,876)		(11,731)		-		(23,607)
Change in control and other related expense		-		-		112,026		-		112,026
Equity in the earnings of consolidated subsidiaries		(62,752)		-		-		62,752		-
Depreciation and amortization		22,936		164,838		101,821		-		289,595
Interest expense		198,238		8,082		6,032		-		212,352
Other		1,150		(248)		(3,750)		-		(2,848)
		159,572		2,206,139		2,031,292		62,752		4,459,755

Income (loss) from continuing operations before income taxes		(159,572)		379,174		(245,826)		(62,752)		(88,976)
Income tax (expense) benefit		106,588		(181,786)		123,994		-		48,796
Income (loss) from continuing operations		(52,984)		197,388		(121,832)		(62,752)		(40,180)
Loss from discontinued operations, net of
income taxes		-		-		-		-		-
Consolidated net income (loss)		(52,984)		197,388		(121,832)		(62,752)		(40,180)
Net income attributable to noncontrolling interests		-		-		(12,804)		-		(12,804)
Accretion of redeemable equity securities		-		-		(19,813)				(19,813)

Net income (loss) attributable to Health Management
Associates, Inc. common stockholders	$	(52,984)	$	197,388	$	(154,449)	$	(62,752)	$	(72,797)



Health Management Associates, Inc.
Condensed Consolidating Statement of Comprehensive Income (Loss)
Nine Months Ended September 30, 2013
(in thousands)

	Parent Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated

Consolidated net income (loss)	$	(52,984)	$	197,388	$	(121,832)	$	(62,752)	$	(40,180)
Components of other comprehensive income
before income taxes attributable to:
Available-for-sale securities:
Unrealized gains (losses), net		-		-		4,321		-		4,321
Adjustments for net (gains) losses reclassified
into net income		-		-		(2,700)		-		(2,700)
Interest rate swap contract:
Reclassification adjustments for amortization
into net income		53,515		-		-		-		53,515
Other comprehensive income before income taxes		53,515		-		1,621		-		55,136
Income tax expense related to items
of other comprehensive income		(20,774)		-		(569)		-		(21,343)
Other comprehensive income (loss), net		32,741		-		1,052		-		33,793

Total consolidated comprehensive income (loss)		(20,243)		197,388		(120,780)		(62,752)		(6,387)
Total comprehensive income attributable to
noncontrolling interests		-		-		(12,804)		-		(12,804)
Accretion of redeemable equity securities		-		-		(19,813)		-		(19,813)
Total comprehensive income (loss) attributable to Health
Management Associates, Inc. common stockholders	$	(20,243)	$	197,388	$	(153,397)	$	(62,752)	$	(39,004)



Health Management Associates, Inc.
Condensed Consolidating Statement of Operations
Nine Months Ended September 30, 2012
(in thousands)
(restated)
	Parent Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated

Net revenue before the provision for doubtful accounts	$	-	$	3,059,365	$	1,974,131	$	-	$	5,033,496
Provision for doubtful accounts		-		(395,487)		(244,415)		-		(639,902)
Net revenue		-		2,663,878		1,729,716		-		4,393,594

Salaries and benefits		-		1,007,196		934,279		-		1,941,475
Supplies		-		464,888		212,528		-		677,416
Rent expense		-		67,522		62,999		-		130,521
Other operating expenses		-		552,278		418,335		-		970,613
Medicare and Medicaid HCIT incentive payments		-		(18,612)		(11,263)		-		(29,875)
Equity in the earnings of consolidated subsidiaries		(267,785)		-		-		267,785		-
Depreciation and amortization		10,623		152,230		92,722		-		255,575
Interest expense		229,237		7,180		4,632		-		241,049
Other		(768)		(299)		(678)		-		(1,745)
		(28,693)		2,232,383		1,713,554		267,785		4,185,029

Income from continuing operations before income taxes		28,693		431,495		16,162		(267,785)		208,565
Income tax (expense) benefit		85,504		(154,263)		1,953		-		(66,806)
Income from continuing operations		114,197		277,232		18,115		(267,785)		141,759
Loss from discontinued operations, net of
income taxes		-		-		(5,805)		-		(5,805)
Consolidated net income		114,197		277,232		12,310		(267,785)		135,954
Net income attributable to noncontrolling interests		-		(133)		(21,624)		-		(21,757)
										-
Net income (loss) attributable to Health Management
Associates, Inc. common stockholders	$	114,197	$	277,099	$	(9,314)	$	(267,785)	$	114,197



Health Management Associates, Inc.
Condensed Consolidating Statement of Comprehensive Income
Nine Months Ended September 30, 2012
(in thousands)
(restated)
	Parent Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated

Consolidated net income	$	114,197	$	277,232	$	12,310	$	(267,785)	$	135,954
Components of other comprehensive income
before income taxes attributable to:
Available-for-sale securities:
Unrealized gains (losses), net		66		-		8,762		-		8,828
Adjustments for net (gains) losses reclassified
into net income		-		-		(340)		-		(340)
Interest rate swap contract:
Reclassification adjustments for amortization
into net income		59,937		-		-		-		59,937
Other comprehensive income before income taxes		60,003		-		8,422		-		68,425
Income tax expense related to items
of other comprehensive income		(23,292)		-		(2,948)		-		(26,240)
Other comprehensive income, net		36,711		-		5,474		-		42,185

Total consolidated comprehensive income		150,908		277,232		17,784		(267,785)		178,139
Total comprehensive income attributable to
noncontrolling interests		-		(133)		(21,624)		-		(21,757)
Total comprehensive income (loss) attributable to Health
Management Associates, Inc. common stockholders	$	150,908	$	277,099	$	(3,840)	$	(267,785)	$	156,382


Health Management Associates, Inc.
Condensed Consolidating Balance Sheet
September 30, 2013
(in thousands)

	Parent Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Current assets:
Cash and cash equivalents	$	(11,989)	$	10,974	$	2,306	$	-	$	1,291
Available-for-sale securities		-		-		62,961		-		62,961
Accounts receivable, net		-		551,445		418,687		-		970,132
Supplies, prepaid expenses and other assets		3,605		134,892		88,055		-		226,552
Prepaid and recoverable income taxes		164,803		-		-		-		164,803
Restricted funds		-		-		30,667		-		30,667
Assets held for sale		-		-		6,250		-		6,250
Total current assets		156,419		697,311		608,926		-		1,462,656

Property, plant and equipment, net		165,248		2,272,618		1,152,966		-		3,590,832
Investments in consolidated subsidiaries		3,767,387		-		-		(3,767,387)		-
Restricted funds		-		-		125,042		-		125,042
Intercompany receivables		931,826		343,308		-		(1,275,134)		-
Goodwill		-		654,500		378,213		-		1,032,713
Deferred charges and other assets		87,404		101,170		225,086		-		413,660

Total assets	$	5,108,284	$	4,068,907	$	2,490,233	$	(5,042,521)	$	6,624,903

Current liabilities:
Accounts payable	$	13,693	$	91,004	$	55,868	$	-	$	160,565
Accrued expenses and other current liabilities		62,355		226,184		282,241		-		570,780
Deferred income taxes		10,169		-		-		-		10,169
Current maturities of long-term debt and
capital lease obligations		80,690		22,666		7,424		-		110,780
Total current liabilities		166,907		339,854		345,533		-		852,294

Deferred income taxes		386,543		-		-		-		386,543
Long-term debt and capital lease obligations,
less current maturities		3,468,883		81,083		86,982		-		3,636,948
Intercompany payables		27,008		-		1,248,126		(1,275,134)		-
Other long-term liabilities		61,988		92,920		314,604		-		469,512
Total liabilities		4,111,329		513,857		1,995,245		(1,275,134)		5,345,297

Redeemable equity securities		-		-		272,013		-		272,013

Stockholders' equity:
Total Health Management Associates, Inc.
stockholders' equity		996,955		3,555,050		212,337		(3,767,387)		996,955
Noncontrolling interests		-		-		10,638		-		10,638
Total stockholders' equity		996,955		3,555,050		222,975		(3,767,387)		1,007,593
Total liabilities and stockholders' equity	$	5,108,284	$	4,068,907	$	2,490,233	$	(5,042,521)	$	6,624,903


Health Management Associates, Inc.
Condensed Consolidating Balance Sheet
December 31, 2012
(in thousands)
(restated)
	Parent Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Current assets:
Cash and cash equivalents	$	23,214	$	24,823	$	11,136	$	-	$	59,173
Available-for-sale securities		65,376		-		55,730		-		121,106
Accounts receivable, net		-		587,754		370,164		-		957,918
Supplies, prepaid expenses and other assets		4,459		136,078		80,347		-		220,884
Prepaid and recoverable income taxes		60,438		-		-		-		60,438
Restricted funds		-		-		26,525		-		26,525
Assets held for sale		-		-		6,250		-		6,250
Total current assets		153,487		748,655		550,152		-		1,452,294

Property, plant and equipment, net		118,699		2,322,678		1,024,513		-		3,465,890
Investments in consolidated subsidiaries		3,768,249		-		-		(3,768,249)		-
Restricted funds		-		-		125,532		-		125,532
Intercompany receivables		827,770		24,838		-		(852,608)		-
Goodwill		-		654,500		370,637		-		1,025,137
Deferred charges and other assets		80,118		125,144		112,239		-		317,501

Total assets	$	4,948,323	$	3,875,815	$	2,183,073	$	(4,620,857)	$	6,386,354

Current liabilities:
Accounts payable	$	42,093	$	112,643	$	56,651	$	-	$	211,387
Accrued expenses and other current liabilities		120,598		239,281		249,853		-		609,732
Deferred income taxes		29,026		-		-		-		29,026
Current maturities of long-term debt and
capital lease obligations		100,542		20,091		5,629		-		126,262
Total current liabilities		292,259		372,015		312,133		-		976,407

Deferred income taxes		301,237		-		-		-		301,237
Long-term debt and capital lease obligations,
less current maturities		3,304,667		82,871		52,815		-		3,440,353
Intercompany payables		-		-		852,608		(852,608)		-
Other long-term liabilities		71,755		96,250		292,881		-		460,886
Total liabilities		3,969,918		551,136		1,510,437		(852,608)		5,178,883

Redeemable equity securities		-		-		212,458		-		212,458

Stockholders' equity:
Total Health Management Associates, Inc.
stockholders' equity		978,405		3,324,679		443,570		(3,768,249)		978,405
Noncontrolling interests		-		-		16,608		-		16,608
Total stockholders' equity		978,405		3,324,679		460,178		(3,768,249)		995,013
Total liabilities and stockholders' equity	$	4,948,323	$	3,875,815	$	2,183,073	$	(4,620,857)	$	6,386,354



Health Management Associates, Inc.
Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 30, 2013
(in thousands)

	Parent Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidated
Net cash provided by (used in) continuing operating activities	$	(184,216)	$	344,180	$	(39,756)	$	120,208

Cash flows from investing activities:
Additions to property, plant and equipment		(70,328)		(74,414)		(62,910)		(207,652)
Acquisitions of hospitals and other ancillary health care
businesses		-		-		(173,653)		(173,653)
Purchases of available-for-sale securities		(426,197)		-		(45,718)		(471,915)
Proceeds from sales of available-for-sale securities		491,471		-		38,728		530,199
Other investing activities		-		1,547		3,753		5,300
Net cash provided by (used in) continuing investing activities		(5,054)		(72,867)		(239,800)		(317,721)

Cash flows from financing activities:
Proceeds from long-term debt borrowings		476,900		-		-		476,900
Principal payments on debt and capital lease obligations		(337,166)		(18,193)		(3,152)		(358,511)
Payments of debt issuance costs		(1,588)		-		-		(1,588)
Proceeds from exercises of stock options		27,949		-		-		27,949
Cash payments to noncontrolling shareholders		-		-		(24,175)		(24,175)
Changes in intercompany balances, net		(31,084)		(266,969)		298,053		-
Equity compensation excess income tax benefits		19,056		-		-		19,056
Net cash provided by (used in) continuing financing activities		154,067		(285,162)		270,726		139,631

Net increase (decrease) in cash and cash equivalents		(35,203)		(13,849)		(8,830)		(57,882)
Cash and cash equivalents at the beginning of the period		23,214		24,823		11,136		59,173
Cash and cash equivalents at the end of the period	$	(11,989)	$	10,974	$	2,306	$	1,291



Health Management Associates, Inc.
Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 30, 2012
(in thousands)
(restated)
	Parent Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidated
Net cash provided by (used in) continuing operating activities	$	(86,109)	$	445,061	$	99,113	$	458,065

Cash flows from investing activities:
Additions to property, plant and equipment		(16,705)		(201,571)		(64,067)		(282,343)
Acquisitions of hospitals and other ancillary health care								-
businesses		-		(800)		(70,675)		(71,475)
Purchases of available-for-sale securities		(1,395,665)		-		(35,883)		(1,431,548)
Proceeds from sales of available-for-sale securities		1,380,985		-		31,595		1,412,580
Other investing activities		-		-		(15,399)		(15,399)
Net cash provided by (used in) continuing investing activities		(31,385)		(202,371)		(154,429)		(388,185)

Cash flows from financing activities:
Proceeds from long-term debt borrowings		17,000		-		-		17,000
Principal payments on debt and capital lease obligations		(68,890)		(12,456)		(6,581)		(87,927)
Payments for debt issuance costs		(636)		-		-		(636)
Cash received from noncontrolling shareholders		-		-		3,591		3,591
Cash payments to noncontrolling shareholders		-		(3,431)		(27,384)		(30,815)
Changes in intercompany balances, net		149,062		(274,666)		125,604		-
Equity compensation excess income tax benefits		1,444		-		-		1,444
Net cash provided by (used in) continuing financing activities		97,980		(290,553)		95,230		(97,343)

Net increase (decrease) in cash and cash equivalents
before discontinued operations		(19,514)		(47,863)		39,914		(27,463)
Net cash used in discontinued operations		-		-		(1,462)		(1,462)
								-
Net increase (decrease) in cash and cash equivalents		(19,514)		(47,863)		38,452		(28,925)
Cash and cash equivalents at the beginning of the period		28,586		47,094		(11,537)		64,143
Cash and cash equivalents at the end of the period	$	9,072	$	(769)	$	26,915	$	35,218