2007 Financials

Our combined statements of financial position and operations.

Combined Statements of Financial Position (In Thousands)	For the period ending June 30, 2007 and 2006
ASSETS	2007	2006
Current assets
Cash and cash equivalents	$ 36,839	$ $47,811
Patient accounts receivable, net	144,203	118,095
Prepaids, inventories and other current assets	40,513	45,757
Assets limited under bond debt service fund	11,046	10,925
Assets limited under primary professional liability and worker’s compensation	2,863	2,969
Total current assets	235,464	225,557
Noncurrent assets
Assets limited by board for capital improvements	405,450	424,553
Assets limited by board for retained excess professional liability arrangements	14,135	15,498
Assets limited by management	22,566	21,123
Assets limited under bond construction funds, debt service and debt service reserve fund	12,003	49,758
Assets limited under workers' compensation arrangements	1,994	3,143
Assets limited under primary professional liability arrangements	15,759	13,526
Assets limited or restricted by donors	125,240	89,755
Assets limited to fund deferred compensation and other liabilities	35,260	28,364
Property and equipment, net	589,763	496,238
Partnership investments	16,346	15,389
Deferred charges, net and other assets	29,511	27,661
Total noncurrent assets	1,268,027	1,185,008
Total assets	1,503,491	$1,410,565

LIABILITIES AND NET ASSETS	2007	2006
Current liabilities
Accounts Payable	$ 42,804	$ 43,067
Accrual for estimated third-party payer settlements	19,462	57,932
Accrued compensation	37,531	35,125
Other accrued expenses	22,987	21,710
Pension	15,875	25,640
Professional liability	2,182	2,048
Workers' compensation	731	971
Current portion of ong-term debt	8,245	8,736
Total current liabilities	149,817	195,229
Noncurrent liabilities
Long-term debt, net of current portion	471,163	458,635
Deferred compensation and other liabilities funded with matching assets	35,260	28,364
Pension	33,813	33,854
Professional liability	37,539	36,489
Workers' compensation	1,994	3,143
Other liabilities	11,004	23,308
Total noncurrent liabilities	590,773	583,793
Total liabilities	740,590	779,022
Net assets
Unrestricted	637,661	541,788
Temporarily restricted by donors/grantors	62,639	28,829
Permanently restricted by donors/grantor	62,601	60,926
Total net assets	762,901	631,543
Total liabilities and net assets	$1,503,491	$1,410,565
Combined Statements of Operations (In Thousands)
Patient services and supporting operations	2007	2006
Net Patient Service Revenue	$1,063,356	$974,166
Other Supporting Operations Revenue	31,781	35,607
Net assets released from restrictions-operations	2,872	2,897
Total Revenue	1,098,009	1,012,670
Wages	465,707	407,501
Benefits	95,296	92,401
Supplies	193,727	175,180
Purchased Services	112,966	107,284
Other	50,855	53,570
Depreciation and amortization	60,216	54,202
Bad debts	53,720	47,977
Total Expenses	1,032,487	938,115
Patient services net margin	65,522	74,555
Other operating revenue and expense
Realized investment earnings	45,606	21,947
Interest expense	19,840	19,243
Provision for income taxes	1,682	2,977
Change in unrealized gains on swaps	2,167	0
Non-cash loss on refinancing of debt	0	(3,033)
Other operating, net	26,251	(3,306)
Net from operations	91,773	71,249
Nonoperating gains and losses
Other nonoperating gains (losses),net	(301)	173
Net available for community needs and debt repayment	$91,472	$71,422

This page last updated 2/12/08 04:08 PM

2007 Financial and Operational Report

Understanding This Report

The Combined Statements of Financial Position report our assets, liabilities and net assets.

The Combined Statements of Operations report our revenues and expenses. The amount of revenues minus the amount of expenses creates our patient services net margin.

Listed underneath the patient services net margin is our net available for community needs and debt repayment. This chiefly includes investment earnings and interest expense. The net available is reinvested in our community.

Prepared from Lehigh Valley Health Network internal financial reports.

For the 13th year, we are listed among nation's best by U.S. News & World Report

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We are a Magnet hospital that provides top quality nursing care for you.

©2008 Lehigh Valley Hospital and Health Network
LVH Info Line: 610-402-CARE
Cedar Crest & I-78, P.O. Box 689, Allentown, PA 18105-1556

Lehigh Valley Hospital has campuses in Allentown and Bethlehem, Pa. and serves the Pennsylvania communities of Easton, Doylestown, Quakertown, Hazelton, Lehighton, Perkasie, Pottstown, Pottsville, Reading, Scranton, Wilkes Barre, Stroudsburg, and the Poconos and also Phillipsburg and Flemington, N.J., and western New Jersey. You don't have to travel to Philadelphia or New York for quality health care.