IASIS Healthcare Announces Third Quarter 2007 Results.

FRANKLIN, Tenn. -- IASIS Healthcare[R] LLC ("IASIS") today announced financial and operating results for the fiscal third quarter and nine months ended June 30, 2007. Consolidated results for the third quarter and the nine months ended June 30, 2007, include the operations of Glenwood Regional Medical Center in West Monroe, Louisiana, which was acquired effective January 31, 2007, and Alliance Hospital in Odessa, Texas, which was acquired effective May 31, 2007, and immediately merged into Odessa Regional Hospital to form Odessa Regional Medical Center.

Net revenue for the third quarter totaled $470.6 million, an increase of 11.8%, compared with $421.0 million for the prior year quarter. Adjusted EBITDA for the third quarter totaled $55.2 million, compared with $62.5 million for the prior year quarter. A table describing adjusted EBITDA and reconciling net earnings to adjusted EBITDA is included in this press release in the attached Supplemental Consolidated Statements of Operations Information. Net earnings for the third quarter totaled $6.3 million, compared with $15.9 million for the prior year quarter.

IASIS' results for the third quarter include a loss on extinguishment of debt of $6.2 million associated with the refinancing of its senior secured credit facilities and $1.5 million in business interruption insurance recoveries received in connection with the final settlement of the insurance claim associated with the temporary closure and disruption of operations at The Medical Center of Southeast Texas, in Port Arthur, Texas, as a result of Hurricane Rita. The prior year quarter included $8.3 million in business interruption insurance recoveries. In addition, results for the third quarter include $2.5 million in pre-opening losses, compared with $90,000 in the prior year quarter, associated with Mountain Vista Medical Center, the Company's new hospital in Mesa, Arizona, which opened on July 23, 2007.

Admissions and adjusted admissions increased 10.1% and 8.3%, respectively, in the third quarter compared with the prior year quarter. Net patient revenue per adjusted admission in the third quarter increased 4.9% compared with the prior year quarter. On a same-facility basis, admissions increased 0.2% and adjusted admissions declined 0.3%, respectively, while net patient revenue per adjusted admission increased 5.7% compared with the prior year quarter.

In commenting on the quarterly results, David R. White, chairman and chief executive officer of IASIS, said, "We are pleased with our continued growth in net revenue, as well as our efforts to begin to ensure a successful integration of our recently acquired hospitals. Additionally, we are pleased with the contribution these hospitals are currently making to our overall success. We are excited about the opening of Mountain Vista Medical Center and believe that the hard work and dedication of our employees will make our new facility a valuable addition to its community and to IASIS."

Net revenue for the nine months ended June 30, 2007, totaled $1.360 billion, an increase of 11.6%, compared with $1.218 billion for the same prior year period. Adjusted EBITDA for the nine months ended June 30, 2007, totaled $176.5 million, compared with $159.7 million for the same prior year period. Net earnings for the nine months ended June 30, 2007, totaled $33.8 million, compared with $28.5 million for the same prior year period.

Admissions and adjusted admissions increased 8.8% and 6.8%, respectively, for the nine months ended June 30, 2007, compared with the same prior year period. For the nine months ended June 30, 2007, net patient revenue per adjusted admission increased 5.2% compared with the same prior year period. On a same-facility basis, admissions and adjusted admissions increased 3.0% and 1.9%, respectively, while net patient revenue per adjusted admission increased 5.7% for the nine months ended June 30, 2007, compared with the same prior year period.

IASIS' uninsured discount program, which became effective during the third quarter of fiscal 2006, resulted in $12.9 million and $38.3 million in discounts being provided to uninsured patients during the third quarter and nine months ended June 30, 2007, respectively, compared with $6.8 million in each of the same prior year periods. The Company's uninsured discount program had the effect of reducing net revenue and the provision for bad debts by generally corresponding amounts. On a same-facility basis, adjusting for the impact of uninsured discounts, net patient revenue per adjusted admission increased 7.2% and 8.9% in the third quarter and nine months ended June 30, 2007, respectively, compared with the same prior year periods. A table describing the impact of adjusting for the uninsured discount program is included in this press release in the attached Supplemental Operating Measures Adjusted for Comparative Analysis.

On April 27, 2007, IASIS announced the completion of a transaction to refinance its existing credit facilities, increase its borrowing capacity and repurchase equity from the shareholders of its parent company, IASIS Healthcare Corporation. The new financing includes $854 million in Senior Secured Credit Facilities and $300 million in Holdings Senior Paid-In-Kind ("PIK") Loans. The $300 million Holdings Senior PIK Loans were borrowed by IASIS' parent company.

A listen-only simulcast and 30-day replay of IASIS' third fiscal quarter conference call will be available by clicking the "For Investors" link on the Company's website at www.iasishealthcare.com beginning at 11:00 a.m. Eastern Time on August 7, 2007. A copy of this press release will also be available on the Company's website.

IASIS, located in Franklin, Tennessee, is a leading owner and operator of medium-sized acute care hospitals in high-growth urban and suburban markets. The Company operates its hospitals with a strong community focus by offering and developing healthcare services targeted to the needs of the markets it serves, promoting strong relationships with physicians and working with local managed care plans. IASIS owns or leases 16 acute care hospitals and one behavioral health hospital with a total of 2,693 beds in service and has total annual net revenue of approximately $1.8 billion. These hospitals are located in six regions: Salt Lake City, Utah; Phoenix, Arizona; Tampa-St. Petersburg, Florida; three cities in Texas, including San Antonio; Las Vegas, Nevada; and West Monroe, Louisiana. IASIS recently opened Mountain Vista Medical Center, a new 176-bed hospital located in Mesa, Arizona. IASIS also owns and operates a Medicaid and Medicare managed health plan in Phoenix that serves over 119,000 members. For more information on IASIS, please visit the Company's website at www.iasishealthcare.com.

Some of the statements we make in this press release are forward-looking within the meaning of the federal securities laws, which are intended to be covered by the safe harbors created thereby. Those forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief or expectations including, but not limited to, statements about the benefits of the recently announced Alliance Hospital acquisition, including future financial and operating results, the Company's plans, objectives, expectations and other statements that are not historical facts. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual results in future periods to differ materially from those anticipated in the forward-looking statements. Those risks and uncertainties include, among others, the risks and uncertainties related to our ability to generate sufficient cash to service our existing indebtedness, our substantial level of indebtedness that could adversely affect our financial condition, our ability to retain and negotiate favorable contracts with managed care plans, changes in legislation that may significantly reduce government healthcare spending and our revenue, our hospitals' competition for patients from other hospitals and healthcare providers, our hospitals facing a growth in bad debts resulting from increased self-pay volume and revenue, our ability to recruit and retain quality physicians, our hospitals' competition for staffing which may increase our labor costs and reduce profitability, our failure to consistently enhance our hospitals with the most recent technological advances in diagnostic and surgical equipment that would adversely affect our ability to maintain and expand our markets, our failure to comply with extensive laws and government regulations, the outcome of (and expenses incurred in connection with) an ongoing Office of Inspector General investigation, the possibility that we may become subject to federal and state investigations in the future, our ability to satisfy regulatory requirements with respect to our internal controls over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002, a failure of our information systems that would adversely affect our ability to properly manage our operations, an economic downturn or other material change in any one of the regions in which we operate, potential liabilities because of claims brought against our facilities, increasing insurance costs that may reduce our cash flows, the impact of certain factors, including severe weather conditions and natural disasters, on our revenue and volume trends at our hospitals, our ability to control costs at Health Choice Arizona, Inc., the possibility of Health Choice Arizona, Inc.'s contract with the Arizona Health Care Cost Containment System being discontinued or experiencing materially reduced reimbursements, significant competition from other healthcare companies and state efforts to regulate the sale of not-for-profit hospitals that may affect our ability to acquire hospitals, difficulties with the integration of acquisitions, including Glenwood Regional Medical Center and Alliance Hospital, that may disrupt our ongoing operations, difficulties with the opening of our new hospital that may require unanticipated start-up costs, the significant capital expenditures that would be involved in the construction of other new hospitals that could have an adverse effect on our liquidity, the rising costs for construction materials and labor that could have an adverse impact on the return on investment relating to our new hospital and other expansion projects, state efforts to regulate the construction or expansion of hospitals that could impair our ability to operate and expand our operations, our dependence on key personnel, the loss of one or more of which could have a material adverse effect on our business, potential responsibilities and costs under environmental laws that could lead to material expenditures or liability, the possibility of a decline in the fair value of our reporting units that could result in a material non-cash charge to earnings and those risks, uncertainties and other matters detailed in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2006.

Although we believe that the assumptions underlying the forward-looking statements contained in this press release are reasonable, any of these assumptions could prove to be inaccurate, and, therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, you should not regard the inclusion of such information as a representation by the Company or any other person that our objectives and plans will be achieved. We undertake no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.

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