2. A-20 Table 2.1: Number of Community Hospitals, (1) 1981 – 2006 Source: Avalere Health analysis of American Hospital Association Annual Survey data, 2006, for community hospitals. (1) All nonfederal, short-term general, and specialty hospitals whose facilities and services are available to the public. (2) Data on the number of urban and rural hospitals in 2004 and beyond were collected using coding different from previous years to reflect new Centers for Medicare & Medicaid Services wage area designations. Data for Charts 2.1 and 2.4 YearAll HospitalsUrbanRural In Health System (2) 19815,8133,0482,765- 19825,8013,0412,760- 19835,7833,0702,713- 19845,7593,0632,696- 19855,7323,0582,674- 19865,6783,0402,638- 19875,6113,0122,599- 19885,5332,9842,549- 19895,4552,9582,497- 19905,3842,9242,460- 19915,3422,9212,421- 19925,2923,0072,285- 19935,2613,0122,249- 19945,2292,9932,236- 19955,1942,9582,236- 19965,1342,9082,226- 19975,0572,8522,205- 19985,0152,8162,199- 19994,9562,7672,1892,524 20004,9152,7402,1752,542 20014,9082,7422,1662,580 20024,9272,7492,1782,606 20034,8952,7292,1662,626 20044,9192,9162,0032,668 20054,9362,9272,0092,716 20064,9272,9262,0012,755

3. A-21 Table 2.2: Number of Beds and Number of Beds per 1,000 Persons, 1981 – 2006 Source: Avalere Health analysis of American Hospital Association Annual Survey data, 2006, for community hospitals. Data for Chart 2.2 YearNumber of BedsBeds per 1,000 19811,001,8014.37 19821,011,9894.37 19831,018,4524.36 19841,016,9874.31 19851,000,5984.21 1986978,2834.07 1987956,5293.95 1988944,2763.86 1989932,1853.78 1990926,4363.72 1991922,8223.66 1992919,5053.61 1993917,8473.56 1994901,0563.46 1995871,9763.32 1996862,3523.25 1997853,2873.19 1998839,9883.11 1999829,5753.04 2000823,5602.93 2001825,9662.90 2002820,6532.85 2003813,3072.80 2004808,1272.75 2005802,3112.71 2006802,6582.68

4. A-22 Table 2.3: Beds per 1,000 Persons by State, 2005 and 2006 Source: Avalere Health analysis of American Hospital Association Annual Survey data, 2006, for community hospitals. US Census Bureau: National and State Population Estimates, July 1, 2006. Link: http://www.census.gov/popest/states/tables/NST-EST2006-01.xls. Data for Chart 2.3 State Beds per 1,000 Persons State Beds per 1,000 Persons 05060506 Alabama3.40 Montana4.584.33 Alaska2.102.31Nebraska4.304.17 Arizona1.981.94Nevada1.941.93 Arkansas3.383.31New Hampshire2.182.15 California1.941.92New Jersey2.542.53 Colorado2.062.00New Mexico1.821.80 Connecticut2.252.28New York3.273.29 Delaware2.272.51North Carolina2.692.65 District of Columbia6.076.19North Dakota5.515.58 Florida2.882.84Ohio2.902.86 Georgia2.742.65Oklahoma3.053.01 Hawaii2.362.31Oregon1.79 Idaho2.332.25Pennsylvania3.193.18 Illinois2.702.66Rhode Island2.24 Indiana2.832.86South Carolina2.702.73 Iowa3.633.52South Dakota5.585.53 Kansas3.673.62Tennessee3.463.37 Kentucky3.573.46Texas2.542.51 Louisiana3.453.70Utah1.831.78 Maine2.672.64Vermont2.182.10 Maryland2.04 Virginia2.312.26 Massachusetts2.522.54Washington1.71 Michigan2.60 West Virginia3.993.96 Minnesota3.123.07Wisconsin2.622.54 Mississippi4.384.46Wyoming4.033.99 Missouri3.303.23

5. A-23 Table 2.4: Percent of Outpatient Surgeries by Facility Type, 1981 – 2005 Source: Verispan, Diagnostic Imaging Center Profiling Solution, 2004. *2005 values are estimated based upon current trends. Data for Chart 2.5 YearHospital-owned FacilitiesFreestanding FacilitiesPhysician Offices 198193%4%3% 198389%6%5% 198586%9%5% 198783%12%5% 198980%15%5% 199176%17%7% 199369%22%9% 199563%25%12% 199757%28%15% 199953%31%16% 200151%33%16% 200347%37%16% 2005 * 45%38%17% Table 2.5: Percentage of Hospitals with Physician Affiliates (1) by Type of Relationship, 1995 – 2006 Source: Avalere Health analysis of American Hospital Association Annual Survey data, 2006, for community hospitals. (1) A hospital is considered to have a physician relationship if the relationship exists as part of the hospital or a system or network of which the hospital is a part. Data for Chart 2.7 959697989900010203040506 Physician Hospital Organization31% 29% 27%25%23%22%21%19% IPA23%24%21%19%18%17% 16% 15%14% Management Service Organization19%22%19%17%16%13%11% 10%9% Group Practice without Walls7% 6%5%4% 5%4% 3%4%3%

6. A-24 Table 2.6: Percentage of Hospitals with Insurance Products by Type of Insurance, 1995 – 2006 Source: Avalere Health analysis of American Hospital Association Annual Survey data, 2006, for community hospitals. Data for Chart 2.8 959697989900010203040506 Preferred Provider Organization31% 26%23%21%18%19% 18%19%18% Health Maintenance Organization21%22%23%22%20%18%15%14% 13% Indemnity or Fee-for-service10% 8%6% 5% 6% Table 2.7: Percentage of Hospitals Offering Non-hospital Services, (1) 1995 – 2006 959697989900010203040506 Home Health Service74%77%78%76%72%69%66%65%64% 63% Skilled Nursing Facility45%49%52%53%49% 48%46%45%43%42% Other Long-term Care13%14%15%12%11% 12%13%14% Assisted Living8%10%11%13%14%15% 16% Hospice53%56% 59%57%54% 55%57%59%60%62% Meals on Wheels23%24%25%26%25%26%25% 24% 23% Source: Avalere Health analysis of American Hospital Association Annual Survey data, 2006, for community hospitals. (1) Includes services offered in hospital, health system, network or joint venture. Data for Chart 2.9