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FRANKLIN, Tenn.–IASIS Healthcare® LLC (“IASIS” or the “Company”) today announced financial and operating results for the fiscal fourth quarter and year ended September 30, 2016.

Key Financial and Operating Results

Consolidated Financial and Operating Results – Fourth Quarter and Year Ended September 30, 2016 and 2015

Consolidated revenue for the fourth quarter ended September 30, 2016, totaled $814.4 million, an increase of 13.7% compared to $716.6 million in the prior year quarter. The consolidated revenue increase for the fourth quarter ended September 30, 2016, is comprised of 35.9% growth in premium, service and other revenue in the Company’s managed care operations and 2.3% growth in acute care revenue.

Net loss from continuing operations for the fourth quarter ended September 30, 2016, totaled $76.3 million, compared to a net loss from continuing operations of $3.0 million in the prior year quarter. Included in the net loss from continuing operations for the fourth quarter is a $54.0 million non-cash charge to write-off the goodwill related to one of the Company’s acute care reporting units. This non-cash charge is a result of the Company’s annual impairment test required under accounting guidance.

Adjusted EBITDA for the fourth quarter ended September 30, 2016, totaled $29.1 million, compared to $59.4 million in the prior year quarter. During the fourth quarter ended September 30, 2016, the Company’s managed care division incurred $10.8 million in losses associated with its Arizona health insurance marketplace exchange plan business, which the Company is exiting effective January 1, 2017. The losses at the Company’s Arizona marketplace exchange business for the quarter ended September 30, 2016, included a premium deficiency reserve of $7.5 million and $1.8 million in estimated unfavorable risk adjustment transfer settlements. Additionally, net loss from continuing operations and Adjusted EBITDA for the quarter ended September 30, 2016, continued to be negatively impacted by certain items, as further described in the following table. Excluding the impact of these items and the losses associated with the Arizona health insurance marketplace exchange plan, normalized adjusted EBITDA would have been $43.9 million for the fourth quarter ended September 30, 2016, compared to $54.8 million in the prior year quarter.

Consolidated revenue for the year ended September 30, 2016, totaled $3.25 billion, an increase of 17.5% compared to $2.77 billion in the prior year. The consolidated revenue increase for the year ended September 30, 2016, is comprised of 45.7% growth in premium, service and other revenue in the Company’s managed care operations and 4.2% growth in acute care revenue.

Net loss from continuing operations for the year ended September 30, 2016, (which includes the impact of the goodwill impairment charge previously discussed) totaled $117.0 million, compared to net earnings from continuing operations of $6.8 million in the prior year. Adjusted EBITDA for the year ended September 30, 2016, totaled $162.6 million, compared to $253.0 million in the prior year. During the year ended September 30, 2016, the Company’s managed care division incurred $19.0 million in losses associated with its Arizona health insurance marketplace exchange plan business, which includes a $7.5 million premium deficiency reserve and $10.8 million related to final and estimated unfavorable risk adjustment transfer settlements. Additionally, net loss from continuing operations and Adjusted EBITDA for the year ended September 30, 2016, continued to be negatively impacted by certain items, as further described in the following table. Excluding the impact of these items and the losses associated with the Arizona health insurance marketplace exchange plan, normalized adjusted EBITDA would have been $220.1 million for the year ended September 30, 2016, compared to $254.3 million in the prior year.

The Company provides the following table reflecting normalized adjusted EBITDA, which reflects certain items that affected the Company’s results for the quarters and years ended September 30, 2016 and 2015, and adjusted EBITDA, and a reconciliation of such non-GAAP figures to net earnings (loss) from continuing operations, the most comparable GAAP measure.

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