Transaction Accounting Issues for Not-For-Profit Hospitals

Allocation of Assets in Acquisitions - 2012

Net Working Capital

Intangible Assets

Goodwill

Fixed Assets

Other Assets

Total

Seller

0.0% 1.2% 0.0% 0.0% 1.9% 2.3% 9.7% 0.0% 0.9% 0.0% 0.0% 0.2% 0.0% 0.0% 3.9% 0.0% 1.7% 0.0% 0.0% 1.2%

BIR JV, LLP

0.0% 4.5% 2.9% 0.0% -4.5% 38.1% 7.8% 5.0% 1.6% -4.8% 38.8% -16.9%

7.8%

92.2% 32.6%

0.0% 2.9%

100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Community Health Partners, Inc. d/b/a Unity Health Center

58.8% 77.0% 10.4% 59.6% 66.8% 34.3% 16.7% 24.6% 45.3% 83.9% 43.1% 83.6% 1.9%

East Tennessee Medical Group, P.C. Emerus Investment Company II, LLC HealthCare Partners Holdings, LLC (HCP) Jewish Hospital and St. Mary's Healthcare, Inc.

0.0%

20.1%

89.6% 65.4%

0.0%

35.2% 0.0% 0.0% 7.7% 0.0% 3.6% 0.0% 0.0% 0.0% 52.1% 37.9%

0.0%

Marquette General

15.8% 53.0% 28.6% 80.2% 12.2% 32.8% 56.9% 16.4% 45.4% 98.1% 83.2% 71.4% 49.2% 48.5%

Nebraska Heart

Nine ancillary health care businesses and INTEGRIS Health, Inc.

Physican practices

Shawnee Medical Center Clinic, Inc. South Hampton Community Hospital Texas Health Ventures Group, LLC The Heart Hospital Baylor Denton

0.0% 0.0% 7.5% 0.0% 3.9% -1.6% 0.8% 4.6%

U.S. Healthworks, Inc.

5.3% 0.0%

1.9% 0.0%

Valley Hospital Doctors, PLLC

Various Entities - 1 Various Entities - 2

11.2%

9.4%

20.8%

Median Average

29.4% 35.5%

0.9%

10.1%

 In 2012, the allocation of assets was similar to 2013 with fixed assets and goodwill comprising a significant portion of the purchase price allocation.

The Impact of the Affordable Care Act and Transaction Accounting Issues for Not-For-Profit Hospitals

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