CERTIFICATE OF CHIEF FINANCIAL OFFICER OF ROBERT WOOD JOHNSON UNIVERSITY HOSPITAL, INC.

Transcription

1 ~ ROBERT WOOD JOHNSON UNIVERSITY HOSPITAL Office of the Chief Financial Officer One Robert Wood Johnson Place P.O. Box 2601 New Brunswick, NJ Phone: CERTIFICATE OF CHIEF FINANCIAL OFFICER OF ROBERT WOOD JOHNSON UNIVERSITY HOSPITAL, INC. NJHCFFA REVENUE BOND ISSUE ROBERT WOOD JOHNSON UNIVERSITY HOSPITAL, Series 2003, Series 2004, Series This Certification is made to the New Jersey Health Care Facilities Financing Authority (the "Authority") and to US Bank (the "Trustee"). In connection with information derived from our interim financial statements, nothing came to our attention that caused us to believe that Robert Wood Johnson University Hospital (the "Institution") was not in compliance with any of the terms, covenants, provisions or conditions of the Loan and Security Agreement and Mortgage dated as of July 1, 1979, as supplemented for the Series 2003, Series 2004, Series 2010 Bonds. The undersigned hereby certifies that he is the Chief Financial Officer of the Institution, that the undersigned has reviewed the provisions of the loan documents, and that based upon such review, and by evidence of the attached exhibits, to the best knowledge of the undersigned, no event has occurred which, with the giving of notice or the passage of time, would constitute an Event of Default under the terms of such loan documents. The undersigned also certifies that the unaudited financial statements have been prepared in accordance with generally accepted accounting principles on substantially the same basis as the Institution's audited financial statements. The Institution further certifies that any and all property/casualty insurance premiums, IRS payroll taxes, and other governmental or municipal charges have been paid before the same became delinquent or subject to interest or penalties. July 31, 2013 By: Certified on this date for the twelve-month period ended 6/30/13 The principal teaching hospital for UMDNJ- Robert Wood Johnson Medical School The flagship hospital ofthe Cancer Institute of New Jersey Core Academic Medical Center for the Robert Wood Johnson Health System and Network

2 One Robe Wood Johnson Place, New Brunswick, NJ he principal teaching hospital for UMDN -Robert Wood Johnson Medical School QUARTERLY FINANC L REPORTS FOR THE PERIOD ENDED JUNE 30,2013 FOR INVEST RS AND OTHER INTERESTED OUTSIDE PARTIES

3 EXHIBIT A ROBERT WOOD JOHNSON UNIVERSITY HOSPITAL Section 6.03 of the Third Supplement to the Loan Agreement Debt Service Coverage Ratio For the twelve months ended June 30, Funds Available for Debt Service Operating Income (Loss) Investment Income Interest expense from operation Depreciation expense Amortization of financing charges Unrestricted Gifts and Bequests 12-month period Ended 6/30/13 22,650,000 30,190,000 5,687,000 38,813,000 (73,000) Total: 97,267, Maximum Annual Debt Service Requirement (year 2013) Long Term Obligations a. Series 2003 b. Series 2004 c. Series 2010 d. Capital Leases Payable e. Rahway Guarantee Maximum Annual Debt Service Requirement 2,357,000 2,781,550 8,601,644 1,800, ,496 Total: 16,104, Debt Service Coverage Ratio Funds Available for Debt Service Maximum Annual Debt Service Requirements 97,267,000 = 16,104, Minimum required is 1.25

4 Exhibit B ROBERT WOOD JOHNSON UNIVERSITY HOSPITAL Section 6.03 of the Third Supplement to the Loan Agreement Cushion Ratio For the twelve-month period ended June 30, Assets Available for Debt Service 6/30/13 Cash and Marketable Securities 33,041,000 Board Designated funds (excl. donor restricted) 546,511, Maximum Annual Debt Service Requirement (year 2013) Long Term Obligations Total: 579,552,000 a. Series ,357,000 b. Series ,781,550 c. Series ,601,644 d. Capital Leases Payable 1,800,214 e. Rahway Guarantee 564,496 Cushion Ratio: Total: 16,104,904 Assets Available for Debt Service 579,552,000 = Maximum Annual Debt Service Requirements 16,104,904 Minimum required is 1.25

5 Unaudited ROBERT WOOD JOHNSON UNIVERSITY HOSPITAL Statements of Operations For The Period Ended June 30, 2013 (Dollars in thousands) 6/30/13 6/30/12 Unrestricted revenues and other support: Net patient service revenue Less: Provision for doubtful accounts, net Net patient service revenues Other revenue Net assets released from restrictions Total unrestricted revenues and other support 423, ,976 25,998 21, , ,883 9,964 15, , ,830 Expenses: Salaries and purchased labor Employee benefits Supplies and other expenses Physician Fees Depreciation and amortization Interest 150, ,047 35,235 34, , ,094 34,253 32,896 20,178 19,848 2,876 2,934 Total expenses Operating income Investment return, net Change in net assets of RWJ University Foundation, Inc. Gain on disposal of equipment Other gains, net Excess of revenues over expenses Change in net unrealized gain on investments other-than-trading 395, ,839 12,413 16,991 21,254 22,601 (189) (243) ,939 39, Increase in unrestricted net assets 34,136 40,072

6 ROBERT WOOD JOHNSON UNIVERSITY HOSPITAL Balance Sheets June 30, 2013 and December 31, 2012 (Dollars in thousands) Assets 12/31/12 Current assets: Cash and cash equivalents Investments Assets limited as to use, required for current obligations Patient accounts receivable, less allowance for doubtful accounts of 56,000 in June 2013 and 50,548 in 2012 Other receivables Due from related parties, net Other current assets 30,037 3,004 5, ,953 5,596 11,009 21,361 56,683 1,244 4, ,352 3,517 7,192 18,102 Total current assets 187, ,237 Assets limited as to use: Held by trustee Board designated 35, ,511 31, ,612 Total assets limited as to use 582, ,246 Less amounts required to meet current obligations 5,872 4,147 Total non-current assets whose use is limited 576, ,099 Property, plant and equipment, net Long-term restricted investments Interest In Net Assets of RWJUH Foundation Other non-current assets 294,806 2,382 40,933 24, ,281 2,340 44,589 19,841 Total assets 1,126,983 1,102,387 Liabilities and Net Assets Current liabilities: Current installments of long-term debt Accounts payable Accrued expenses Accrued bond interest payable Estimated third-party payor settlements Total current liabilities Estimated third-party payor settlements, excluding current portion Other long-term liabilities Long-term obligations, excluding current installments Net assets: Unrestricted Temporarily restricted Permanently restricted Total liabilities Total net assets 7,308 51,794 57,548 2,810 22, ,670 29,893 19, , , ,356 24,989 2, ,007 8,364 63,043 43,793 2,810 22, ,220 38,117 16, , , ,220 29,676 2, ,555 Total liabilities and net assets 1,126,983 1 '1 02,387

7 ROBERT WOOD JOHNSON UNIVERSITY HOSPITAL COMPARATIVE STATISTICS REPORT JUNE 2013 AND SIX MONTHS YEAR-TO-DATE OCCUPIED BEDS YEAR- TO-DATE INPATIENT ADMISSIONS 17,042 17,093 SAME DAY SURGICAL PROCEDURES 4,486 4,066 SAME DAY MEDICAL PROCEDURES 2,844 2,739 OBSERVATION PATIENTS 2,276 2,015 TOTAL 26,648 25,913 INPATIENT ADMISSIONS ADULTS with ICU 12,708 12,745 PEDs with PICU 2,024 1,960 MATERNITY 1,244 1,286 NEWBORN NURSERY NICU with SCN TOTAL 17,042 17,093 AVERAGE LENGTH OF STAY ADULTS with ICU PEDs with PICU MATERNITY NEWBORN NURSERY NICU with SCN TOTAL AVERAGE DAILY CENSUS ADULTS with ICU PEDs with PICU MATERNITY NEWBORN NURSERY NICU with SCN TOTAL OCCUPANCY PERCENT 83.3% 79.2% CASE MIX (intensity) INDEX MEDICARE CMI HOSPITAL INTENSITY INDEX EMERGENCY DEPARTMENT ADULT Total Visits 35,230 35,247 ADULT Admits thru ED 11,016 10,889 PEDIATRIC Total Visits 13,164 12,611 PEDIATRIC Admits thru ED 1,401 1,289 SURGERIES (MAIN OR) OUTPATIENT Same-Day 4,486 4,066 INPATIENT Surgeries 4,624 4,624 TOTAL 9,110 8,690 CVI-RELA TED PROGRAMS OPEN HEART Surgeries HEART Transplantations 9 4 CARDIAC Catheterizations 2,345 2,636 CORONARY Angioplasties 1,134 1,344 STENTS Placed During Angioplasty 1,547 1,854 PACEMAKERS Implanted AICDs Implanted PERIPHERALS OTHER MAJOR PROGRAMS RADIATION ONCOLOGY Treatments 7,559 6,965 CHEMOTHERAPY Treatments 12,579 11,353 KIDNEY/PANCREAS Transplantations 31 38