Hoboken Municipal Hospital Authorityd/b/a Hoboken University Medical Center

Financial StatementsFor The Period Ended December 31, 2008

Hoboken Municipal Hospital Authorityd/b/a Hoboken University Medical Center

Financial StatementsFor The Period Ended December 31, 2008

CONTENTS

Page

1. Statement of Net Assets

2. Statement of Operations - Hoboken University Medical Center

3. Statement of Operations - Hudson Health Care, Manager

4. Summary of Cash Receipts & Disbursements

5. Selected Financial Indicators

6. Operating Statistics

Hoboken' University Medical CenterStatement of Net Assets

December 31, 2008

HUMCASSETSCURRENT ASSETS:

Cash and Cash Equivalents $ 2,969,654Patient Receivables, net of allowance for doubtful accounts 16,559,734Grants & subsidies receivable 565,507Due From 3rd Party Payors 4,869,618Due From Foundation 2,365,840Inventories 1,955,430Other Current Assets 2,580,798

Total Current Assets $ 31,866,581

RESTRICTED FUNDS:Cash and Cash Equivalents 29,847,620

CAPITAL ASSETS - Net 43,181,296

BOND ISSUANCE COSTS - Net 1,590,188

TOTAL $ 106,485,685

LIABILITIES AND NET ASSETSCURRENT LIABILITIES:

Accounts Payable $ 14,057,912Accrued Payroll and Benefits 7,014,868Other Accrued expenses 4,331,233Interest Payable 1,059,788Due to 3rd Party Payors 705,025Specific Purpose Funds 19,189Deferred Revenue 450,491Current portion of long term debt 9,720,000

Total Current Liabilities 37,358,506

LONG TERM DEBT 42,280,000

TOTAL LIABILITIES $ 79,638,506

NET ASSETS:Restricted & Unrestricted assets, net of investment in capital

assets and related debt 26,847,179

TOTAL $ 106,485,685

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Hoboken University Medical CenterSTATEMENT OF OPERATIONS

For The Period Ended December 31, 2008

MONTH TO DATE YEAR TO DATEACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE

Operating Revenues:

$ 6,936,251 $ 8,756,322 $ (1,820,071 ) Net Patient Service Revenue less Bad Debt $ 103,953,391 $ 103,381,091 $ 572,3001,281,729 745,355 536,374 Disproportionate Share Revenue - MA 10,614,643 8,800,000 1,814,643

8,217,980 9,501,677 (1,283,697) Total Patient Service Revenues 114,568,034 112,181,091 2,386,943Other Operating Revenues:

1,659,122 1,364,050 295,072 State Charity Care subsidy (UCC) 15,632,858 16,368,600 (735,742)40,709 158,749 (118,040) State Hospital Relief subsidy 1,497,893 1,904,988 (407,095)21,330 21,421 (91) State Mental Health subsidy 255,956 257,055 (1,099)

237,135 105,499 131,636 Graduate Medical Education (Mcare & Mcaid) 2,086,958 1,245,571 841,387379,402 429,253 (49,851) Grant Revenues 4,078,021 5,067,960 (989,939)

45,388 82,481 (37,093) Other 535,687 973,803 (438,116)

2,383,086 2,161,453 221,633 Total Other Operating Revenues 24,087,373 25,817,977 (1,730,604)10,601,066 11,663,131 (1,062,065) Total Operating Revenues 138,655,407 137,999,068 656,339

Requisitioned Expenses:12,122,425 11,397,400 (725,025) Manager/Contractor 142,577,418 134,562,854 (8,014,564)

38,848 25,410 (13,438) MHA - Direct Organization Costs 392,163 300,000 (92,163)

12,161,273 11,422,810 (738,463) Total Operating Expenses 142,969,581 134,862,854 (8,106,727)

(1,560,207) 240,321 (1,800,528) Income From Operations Before Depreciation & Amortization (4,314,174) 3,136,214 (7,450,388)

596,813 62,857 (533,956) Depreciation & Amortization 4,562,795 754,285 (3,808,510)

(2,157,020) 177,463 (2,334,483) Income / (Loss) from Operations (8,876,969) 2,381,929 (11,258,898)

NonOperating Revenues (Expenses)(104,613) (196,446) 91,833 Interest Expense (2,230,545) (2,319,329) 88,784

10,454 152,459 (142,005) Interest Earnings - Bonds 401,186 1,800,000 (1,398,814)- - - Extrodinary Gain - Foundation Donation 2,415,000 - 2,415,000

$ (2,251,179) $ 133,477 $ (2,384,656) Margin available for funding Trust Accounts - 2008 $ (8,291,328) $ 1,862,600 $ (10,153,928)

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Hudson Health Care - Manager/ContractorSTATEMENT OF OPERATIONS

For The Period Ended December 31,2008

MONTH TO DATE YEAR TO DATEACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE

Expenses:$ 5,996,995 $ 5,658,390 $ (338,605) Salaries - Employees & Physicians $ 69,737,222 $ 66,805,512 $ (2,931,710)

105,574 98,860 (6,714) Salaries - Residents 1,296,891 1,167,180 (129,711)1,593,940 1,398,563 (195,377) Fringe Benefits 18,168,189 16,512,063 (1,656,126)

548,510 546,174 (2,336) Physician Pro Fees 7,126,007 6,448,382 (677,625)1,650,908 1,548,714 (102,194) NonPhys Pro Fees & Purchased Srvs 19,671,592 18,284,814 (1,386,778)1,339,359 1,306,451 (32,908) Supplies 16,422,964 15,424,550 (998,414)

260,532 256,420 (4,112) Rentals & Leases 3,023,802 3,027,412 3,610253,593 232,647 (20,946) Utilities 3,077,263 2,746,739 (330,524)184,872 182,986 (1,886) Insurance 2,083,463 2,160,417 76,954128,827 95,278 (33,549) Repairs & Maint 1,119,381 1,124,897 5,516

59,315 72,917 13,602 Other 850,644 860,888 10,244$ 12,122,425 $ 11,397,400 $ (725,025) Total Operating Expenses $ 142,577,418 $ 134,562,854 $ (8,014,564)

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Hoboken University Medical CenterSummary of Cash AccountsReceipts & Disbursements

Note: The Cash balances outlined below are comprised of 5 separate G/L accounts (HMHA Oper, HMHARev, CFH lockbox, HHC Oper and HHC Rev). These balances do not include any afthe Bondfunds. The Bond funds are separate accounts.

Jan 08 Feb 08 MarOa Apr08 May 08 June 08 July 08 Aug 08 Sept. 08 Oct. 08 Nov. 08 Dec. 08Cash per General Ledger. Beg balance $ 7,218,291 $ 9,751,599 $ 10,522,913 $ 10,801,029 $ 997.352 $ 7,368,613 $ 2,960,132 $ 8,642.180 $ (9,571) $ (865,843) $ 2,012,701 $ (623,241)

ReceiptsBond proceeds I Transfers to HHC ooer accountfrom HMHA Rev fund 35,025,569 24,761.674 21,763,795 (219,775) 20,417,801 11,368,508 16,371,124 8,572,594 11,496,992 15,466.313 9,158,301 12,004,527

Charity Care subsidy (UCC) 0 0 0 4,092,150 0 0 4,468,241 1.157.877 1,157,877 1,157,877 1,157,877 1,157,877DSH Payment 0 0 0 0 0 0 0 0 0 1,922,594 0 3,845,187Cash Colis on Patient accounts 8,130,258 7,691,121 9,525,252 6,630,840 5,861,442 5,307,512 9,240,262 5,323,471 6,218,523 4,998,420 5,881,569 7,793,753Mcare PIP payments 1,610,000 1,610,000 2,415,000 2,415,000 2,415,000 2,415,000 2,415,000 2,415,000 2,415,000 2,415,000 1,990,000 1,990,000Interest Income 0 0 10,987 0 0 0 0 0 0 0 0 0Other (37018) 345 !lilll!l Q Q Q Q Q Q Q Q Q

~p.1i ~ 34063140 ~lli 12918215 28694243 :!i.l!2L!lli! 32494627 17468942 Zl,288392 25960204 1§.1J!U!l ~ill

DisbursementsSweeps and Prior Period Corrections (31,844,654) (21,385,547) (22,311,176) (14,050,985) (8,834,217) (8,395,097) (14,643,424) (14,644,887) (10,162,602) (12,226,810) (9,119,048) (14,234,525)Payroll & Tax Expense (5,496,601 ) (5,195,560) (5,298,670) (5,380,303) (5,415,523) (10,338,457) (5,526,155) (5,336,928) (5,675,972) (5,348,676) (5,274,866) (2,208,236)Accounts Payable (4,654,245) (6,710,720) (5,820,872) (3,290,604) (8,073,243) (4,765,946) (6,643,000) (6,138,878) (6,306,089) (5,506,174) (6,429,775) (6,755,688)Wire Transfers:

Phys Malpractice 0 0 0 0 0 0 0 0 0 0 0 0Mise Q 0 Q Q Q Q Q Q Q Q Q Q

Net Disbursements (~ m291827) G!l,lli,ill) (22721892) (22322983) @.499501) ~812 579) (26120692) (~ (23081660) (lQ,823 689) (ll,ill,rnJ

Cash per General ledger, Ending balance ~5_99 __$ 10.522,913 $ 10801029 s 997352 $ 7368613 $ 2960132 $ 8642.180 $ (9,571) $ (865,843) _$ __ ?,()1,2,701 $ (623,241) $ 2,969,654

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Hoboken University Medical CenterSELECTED FINANCIAL INDICATORS

For The Period Ended December 31, 2008

YTD Actual YTD BudgetFTEs (includes Contract FTEs) 1,129 1,113

Current Ratio 0.9

Days in Accounts Receivable 58.3

Days in Accounts Payable 96.4

Net Patient Service Rev (less Bad Debt) per Adj Discharge $7,803 $8,748

Total Revenue per Adj Discharge $9,443 $10,761

Total Expenses per Adj Discharge $10,048 $10,575

Net Patient Service Rev (less Bad Debt) per Adj Patient Day $1,432 $1,541

Total Revenue per Adj Patient Day $1,733 $1,895

Total Expenses per Adj Patient Day $1,844 $1,863

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Hoboken University Medical CenterSELECTED OPERATING STATISTICSFor The Period Ended December 31,2008

Month-to-Date Statistic Year-to-Date

Actual Budqet Variance Actual Budget Variance

792 793 (1) Discharges * 9,434 9,367 67

3,815 4,481 (666) Patient Days * 51,411 53,159 (1,748)

123.06 144.55 (21.48) ADC 140.47 145.24 (4.78)

4.82 5.65 0.83 ALOS 5.45 5.68 0.23

2,822 2,575 247 Emergency Room Visits ** 32,012 30,403 1,609

477 436 41 Emergency Room Admits 4,745 5,149 (404)

420 435 (15) Surgeries (IP & OP) 5,555 5,130 425

1.2568 1.2089 0.0479 Medicare Case Mix Index *** 1.2794 1.2089 0.0705

0.9537 0.8991 0.0546 Total Hospital CMI *** 1.0359 0.8991 0.1368

* Excludes Newborn** Includes Emergency Room Admits*** Excludes Psych & Rehab

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