Providing the Facilities...for Exceptional Healthcare

About MFC

Medical Facilities Corporation owns majority interests in four specialty surgical hospitals located in Arkansas, Oklahoma and South Dakota, and an ambulatory surgery center located in California. Our facilities, which are owned in partnership with physicians, offer a range of surgical, imaging, diagnostic, pain management and other ancillary services such as urgent and primary care and occupational health. Revenue is derived from fees charged for the usage of our facilities.

Letter from the CEO

Celebrating 12 years as a publicly listed company on the Toronto Stock Exchange, Medical Facilities Corporation (“MFC”) is pleased to report revenue of $308.8 million and income from operations of $74.7 million, representing a year-to-year change of 3.8% and 12.0%, respectively.

MFC is positioned to capitalize on the robust demand for medical services. The U.S. $2.2 trillion healthcare market is projected to double in size over the next decade. As well, the healthcare sector is relatively resistant to economic fluctuations. Healthcare is one of the fastest growing sectors in the U.S. economy.


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Providing the Facilities...to Outperform Expectations

Highlights

2015 generated year-over-year revenue growth of 3.8% and an increase in income from operations of 12.0%

Revenue

2015

$308.8M

20141

$297.4M

Income from Operations

2015

$74.7M

20141

$66.7M

Operating Margin

2015

24.2%

20141

22.4%

Cash Available for Distribution2

2015

C$45.9M

2014

C$41.4M

Payout Ratio2

2015

76.7%

2014

85.2%

Strategies for Growth

All figures in US$ unless otherwise stated.

1Figures have been restated for the classification of Dakota Plains Surgical Center, LLP as discontinued operation. Refer to Note 4 of Medical Facilities’ 2015 audited consolidated financial statements.

2Non-IFRS Financial Measures. Refer to Medical Facilities’ 2015 Management’s Discussion and Analysis.

Providing the Facilities...for Exceptional Healthcare

facilities Sioux Falls Specialty HospitalSioux Falls, South Dakota Black Hills Surgical HospitalRapid City, South Dakota Arkansas Surgical HospitalNorth Little Rock,Arkansas Oklahoma Spine HospitalOklahoma City, Oklahoma The Surgery Center of Newport CoastNewport Beach, California

Providing the Facilities...for Optimal Patient Outcomes

Surgeons at MFC facilities and our registered nurses and medical support staff help ensure that their patients are provided quality care during their operation, post-operation, and rehabilitation phases.


OPERATION

The physicians and staff at our facilities provide medical and surgical expertise focused on a limited number of specialized procedures. To facilitate quality care, our facilities utilize state-of-the-art medical equipment.

POST-OPERATION

Our facilities are designed to ensure a pleasant stay, for patients and families alike. Patients enjoy our high standards, equivalent to a fine hospitality service. Facilities include private suites, coupled with guest rooms for family members and caregivers.

REHABILITATION

Our facilities provide services and procedures to help patients return to optimal functionality in a timely manner. Services include customized rehabilitation programs and on-going monitoring.

Providing the Facilities...for Exceptional Growth Potential

2015 Payor Mix

Our facilities operate in markets where Blue Cross/Blue Shield and affiliates comprise the largest portions of their payor mix.

Our facilities actively negotiate with payors for improved re-imbursement rates, contract terms and access to large patient populations covered by payor contracts.

Emphasizing cost advantages, efficiencies, and high standard of care, our facilities market their hospitals directly to payors.

HEALTHCARE REFORM

Medical Facilities’ track record of efficiently delivering the highest standard of care to our patients is being rewarded under the Patient Protection and Affordable Care Act. Payors demand efficient, cost-effective services, with excellent outcomes, which align with the strategic focus and best practices of Medical Facilities. Our strategic, disciplined and efficient approach positions us to be attractively compensated by payors and to address the future challenges of healthcare reform. With our excellent performance on the 20 factors used by Medicare to evaluate hospital inpatient stays, our facilities qualified for incentive payments.

Gross Billings (%)

  • Blue Cross/Blue Shield
  • Medicare/Medicaid
  • Worker's Comp
  • Other Private Insurers
  • Other

Net Revenue (%)

Expert Guidance and Strong Leadership

Seymour Temkin

Interim CEO
and Chair of the Board

David Bellaire

Director

Marilynne Day‑Linton

Lead Director

Stephen Dineley

Director

Dr. Gil Faclier

Director

Irving Gerstein

Director

Dale Lawr

Director

Jeffrey Lozon

Director

John Perri

Director

Dr. Donald Schellpfeffer

Director

Michael Salter

Chief Financial Officer

Contact

Head Office

45 St. Clair Avenue West
Suite 200
Toronto, Ontario
Canada M4V 1K6

www.medicalfacilitiescorp.ca Tel: 416-848-7380
Toll Free: 1-877-402-7162

INVESTOR INFORMATION

Shareholders or other interested parties seeking information about the Company are invited to contact:

Renée Lam
NATIONAL Equicom
416-848-1405 rlam@national.ca


ANNUAL MEETING

May 12, 2016 at 2:00 pm ET
TMX Broadcast Centre
The Exchange Tower
130 King Street West
Toronto, Ontario
Canada M5X 1J2

STOCK EXCHANGE LISTING

The Toronto Stock Exchange
Common Shares: DR
Convertible Debentures: DR.DB.A

AUDITOR

KPMG LLP
333 Bay Street, Suite 4600
Toronto, Ontario
Canada M5H 2S5

TRANSFER AGENT AND REGISTRAR

Computershare Investor Services Inc.
100 University Avenue
Toronto, Ontario
Canada M5J 2Y1
1-800-564-6253

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