Cleveland Clinic Health System Obligated Group - FMSbonds.com

The following chart sets forth the number of discharges during 2007 by northeast Ohio’s healthcare serviceproviders:Discharge StatisticsHealthcare System Year Ended December 31, 2007 (1)Cleveland Clinic Health System 161,592University Hospitals 94,023Summa Health System 65,084Akron General Health System 28,734MetroHealth Medical Center 26,866Parma Community 17,539Lake Hospital System 16,443Community Health Partners 15,648Other Hospitals (2) 14,695Total 440,624(1)(2)The source of the discharge numbers is The Center for Health Affairs Volume Statistics, December 2007 except for Summa HealthSystem and Akron General Health System, which were obtained from Ohio Hospital Association 2007 data.“Other Hospitals” includes all hospitals not listed above that discharged patients from northeast Ohio.Economic and Demographic Information. In August 2007, the U.S. Census Bureau released statisticalinformation indicating that the City of Cleveland had the fourth highest percentage of people living below thefederal poverty line when compared to other American cities with populations in excess of 250,000. The estimatedrate of unemployment in June 2008 was 10.1% for the City of Cleveland, 8.1% for Cuyahoga County, 7.7% for theCleveland Primary Metropolitan Statistical Area (i.e., Cuyahoga, Geauga, Lake, Lorain and Medina counties) and6.6% for the State of Ohio, based on information from the Ohio Department of Jobs and Family Services.According to the U.S. Census American Community Survey for 2006, the most recent year for which data areavailable, median household income was $26,535 in the City of Cleveland, $41,522 in Cuyahoga County, $45,925in the Cleveland Primary Metropolitan Statistical Area, $44,532 in the State of Ohio and $48,451 nationally. Mostrecently, reports have indicated that the Cleveland area has been hard hit by the current mortgage crisis throughoutthe U.S., with foreclosure activity significantly increasing.While there is no established correlation between such statistics or conditions and the current or futuredemand for the Health System’s healthcare services or its financial performance, the persistence of such conditionsmay impact the Health System’s financial results in the future.FloridaFlorida Clinic and CCF Florida Hospital Corporation are two of many healthcare providers in southeastFlorida. Florida Clinic owns and operates the Weston Clinic in Weston and has the largest group multi-specialtymedical practice in Broward County. CCF Florida Hospital Corporation owns and operates the 150-bed WestonHospital, which competes in its primary service area with 17 hospitals. The most significant competition comesfrom three other hospitals and health systems, each of which has at least 400 beds, and from other physician practicegroups in the area.A-18