Executive Summary As part of its ongoing efforts to improve access to health care in rural areas, General Medical Center

is subsidizing the start-up and first year of operations of a new family medicine practice, Park Square Family Medicine. The business will be owned and managed by Dr. Nathan Detroit, MD as a sole proprietorship. He will be responsible for ensuring the general health of his patients and creating a viable and profitable business medical practice. Throughout the first year, Dr. Detroit will work closely with advisers from General Medical to get the clinic on a sound financial and operational footing, using this medical clinic business plan as a guiding management tool. Dr. Detroit will focus on diagnosing and treating conditions of all ages while emphasizing preventative medicine and the overall health and wellness of his patients. The clinic will utilize new equipment and a trained staff that will be able to optimize the care of each patient. He understands that there are many factors that can affect health, including exercise, diet, environment and heredity. Park Square Family Medicine will try to provide the most comprehensive medical care possible in order to optimize the care and well-being of each patient. Dr. Detroit will also carry out minor procedures in his office, but only after both risks and benefits have been explained and understood and written consent has been obtained from the patient. Dr. Detroit will refer patients, when appropriate, to specialists and/or to hospitals for tests, further treatment and therapy. Dr. Detroit will be assisted by two employees: a medical assistant and a receptionist. Ongoing training and support for these employees will be provided by General Medical Center throughout the first year. The marketing strategy involves a combination of print media advertising, website development, networking, and promotional events, all aimed at residents living within 35 miles of the clinic. With only five other family practitioners in town, we project a gradually increasing patient load over the first several years, as we find out place in the community. At first, the clinic will be dependent upon the support received from General Medical Center. They will also cover Dr. Detroit's salary and payroll taxes for the first year of operations. As patient volume increases, we will begin supporting our expenses from revenues. At the end of the first year, the subsidies will cease, and Dr. Detroit's compensation will become one of the clinic's expenses. We expect to incur operating losses in the first three years, but have planned for a strong cash balance to keep the business running. We will begin making a small profit in the fourth year. Dr. Detroit will use all his experience and knowledge to create a successful and profitable practice. He will leverage the years he spent in solo practice elsewhere to help model his new business. His past experience in conjunction with his progressive and diversified approach to each patient will allow him to rapidly grow a large and devoted patient base.

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Location and Facilities The start-up requirements include purchase of a building for use by the clinic. The building was built in 1931 and has undergone a complete remodeling. The total office space will be approximately 1,158 sq. feet and the lot size is 115.5' x 66'. There is also a storage shed which is 10 x 12 ft. The office is located just off the main street and the office has blacktop parking for eight cars plus a generous carport, as well as a wide driveway entrance for patient convenience. Company Ownership Park Square Family Medicine will be created as a sole proprietorship owned and operated by Dr. Nathan Detroit, MD. Start-up Summary It is estimated that start-up expenses will near $23,000. This amount of money will be used to purchase office equipment, medical supplies, furniture, stationary, and other startup expenses. We will also need approximately $10,000 for cash on hand at start-up. Expenses and initial cash requirements will be funded by General Medical Center. Our long-term assets of $225,000 represent the purchase price of the building described above. Dr. Detroit will finance this purchase with a 15-year loan, guaranteed by his personal assets.

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Start-up Requirements

Start-up Expenses Legal & Accounting Insurance Marketing Computer Business License Communications Medical Equipment Office Supplies Office Furniture Marketing Plan Regulatory Duties/CLIA Total Start-up Expenses $500 $1,000 $2,000 $3,000 $32 $150 $7,000 $4,000 $2,000 $3,000 $50 $22,732

Start-up Assets Cash Required $10,000

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Other Current Assets Long-term Assets Total Assets

$0 $225,000 $235,000

Total Requirements

$257,732

Services In general, Park Square Family Medicine will provide general care for all ages, as well as providing multiple procedures to create a complete health care solution. Park Square Family Practice will provide procedures including but not limited to mole removals, biopsies, and trigger point injections, and much more. We will also incorporate multiple modalities, such as cryotherapy, hyfrecator, shaving, and excisional removal of lesions and biopsies. The costs will depend upon the materials used, the physician's time and the amount designated for each procedure. Park Square Family Medicine philosophy is that optimal health and performance can be attained through the proper balance of exercise, nutrition, and education. Our goal is to educate our patients as well as treat them. Therefore, our services will also provide group classes and teaching sessions for our patients. Subjects could include nutrition, diabetes, hypertension, and much more. Park Square Family Medicine will focus on each individual case. After each procedure and where appropriate, each patient will be offered education in rehabilitation, nutrition and exercise as it relates to each particular case. Our goal is to create the most well-rounded experience for each patient in order to optimize their health. Park Square Family Medicine will maintain privacy according to HIPAA rules. All patients will be welcome, including the ones with no insurance. No one will be turned down for medical care. Our clinic will hold no prejudice to race, creed, color or socioeconomic status. Everyone will be welcome for great medical care at Park Square Family Medicine. Park Square Family Medicine will provide the following services, among others: Gynecology:

PAP Tests Annual Well Women Exam Family Planning Acute Gyn Problems Newborn Care
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Pediatrics:

Infant Care Annual Physicals Routine Services Possible Immunizations Removal of minor lesions, skin tags, moles and warts Biopsies of suspicious dermatological lesions and/or referral Allergy Testing and shots Tetanus Pneumovax Immunizations

Dermatology:

Minor Surgery:

Laceration Repair Lesion Removals Hyfrecation for Lesions and Blemishes

Adult Medicine Preventative and Routine Services Diabetic Teaching Nutritional/ Dietician Services Exercise and Obesity Counseling Cardiology: o EKGs o Possible Stress Testing (Future Service) Information Management and Technology

In order to comply with HIPAA laws and improve efficiency of billing, we will use a secure, networked, electronic medical records system. Hardware The clinic will use the most advanced computer, server and software systems, as well as Internet connections, in order to optimize the potential EMR and PMS systems software as well as in other software and network system utilized resulting in faster verification, efficient patient information transfer, reduction in administrative costs, computer breakdown or malfunction, as wells as allowing outside access for the physician in order to access important patient information for hospital admissions and in other important situation where information is needed about the patient in optimizing the care of the patient. Billing
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Park Square Family Medicine will utilize an outside electronic medical billing company. This will allow the medical practice to focus primarily on patient care satisfaction. The electronic medical billing company will use electronic claim billing and filing, which in turn will allow us to fully utilize the benefits of electronics claim filing (i.e. faster payment for processing insurance claims) while at the same time allowing us to maximize valuable clinic time and man power. The billing company charges 7% of the total expenses collected. EMR (Electronic Medical Records) Park Square Family Practice is strongly considering EMR, in order to secure the success and efficiency of the office. Below are a few of the benefits and features we may expect to gain from utilizing the EMR system. This technology is expected to increase the systematic approach for each patient, while at the same time decreasing risk while maximizing profits. We feel that all of these technological enhancements will increase our chances of success.

BENEFITS: Increases Revenue by allowing more patient to be seen without working harder or longer, improves collections through management of referral and eligibility data, tracks managed care contracts, managed care payments/bonuses, provides valuable tools to generate research income, and provides for coding optimization. Reduces Expenses by reducing transcription costs, data analysis costs, paper storage and access costs, staff costs, and paper/forms costs. Reduces Risks by improving the quality of documentation, maintaining security and integrity of data, checks for drug interactions, helps to analyze payer relationships, and helps keep documentation and coding in compliance with laws. Improves Quality by improving documentation, presenting and managing protocols, tracking and summarizing indicators, alerting providers, and helping to track recalls. GENERAL FEATURES:

Document Generation Workflow Management Image Management Electronic Superbill and Billing System Interface Coding Optimization Referral Management Eligibility Verification Contract Management Outcomes Analysis Lab Order Entry/ Lab Result Reporting Follow-up/Recall Tracking Patient Instructions Fax Capability Prescription Generation
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Graphing Voice Recognition Option Advanced Security Electronic Data Interchange (EDI) Mobile Solutions Scheduling Option

Market Analysis Summary According to the 2005 local area "Economic and Demographic Profile Report," there is an increasing demand for cost-effective health care in the nation and in our region. Specifically, the local population (within 35 miles) is predicted to grow approximately 3.5% per year and has a population roughly around 160,000 people as of 2004. Market Segmentation The largest age group in our area in 2004 was between 40-49, with 31,714 people. Residents over 60 make up a higher percentage of the population in here than the regional average. Since we will be open to patients of all ages, our market segmentation breaks potential patients out into local population (within 35 miles) and patients from the surrounding region (within 70 miles). There are currently 4-5 family practitioners in town, with 15,000 people living within 4 miles. These are favorable statistics that offer an excellent patient-to-doctor ratio, in addition to the limited number of surrounding family medical practices.

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Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Customers Local Population Surrounding Region Population Total Growth CAGR

4% 160,000 165,600 171,396 177,395 183,604 3.50% 4% 300,000 310,500 321,368 332,616 344,258 3.50% 3.50% 460,000 476,100 492,764 510,011 527,862 3.50%

Target Market Segment Strategy Park Square Family Medicine will locate and focus its efforts on the entire local population (within 35 miles). Our segmentation strategy is geographic for a number of reasons: The rural and semi-rural patients of this area will not, and often cannot, travel more than 30 miles to see a doctor. They would rather "wait it out" on all but urgent matters. Our clinic is a general family practice, and will treat patients of all ages, incomes, physical abilities, races, and ethnicities. As a family clinic, there is no need to create marketing materials targeted at only one or two of these groups, but we can appeal to all with a similar message. The expected growth of the local population, at 3.5% a year, makes this an ideal location for a broadly geographic marketing approach. Service Business Analysis

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Park Square Family Medicine is part of the larger medical industry, in particular "Offices and Clinics of Medical Doctors." Private medical practices are numerous, generally small (1 - 4 physicians) and may provide either general or specialist services. They are well-suited to rural and semi-rural areas, which often do not have a large enough population to make a hospital or larger medical group a viable proposition. There are currently five family practitioners in this town of 15,000, with 160,000 potential patients within 35 miles. These are favorable statistics that offer an excellent patient-to-doctor ratio for marketing efforts. Competition and Buying Patterns In general, competition among fellow family practitioners our town and the surrounding area is small. The growing population base and the limited number of doctors creates a great potential for meeting our patient load goals. When choosing a family doctor, most patients look for someone knowledgeable and skilled who will listen carefully to their health concerns. They are more likely to return to a doctor whose location and hours are convenient and accessible, who have short waiting times for getting appointments and sitting in the waiting room, whose staff is friendly and helpful, and who work effectively with their insurance provider. The relative importance of each of these factors will vary by patients' age range, medical needs, and level of sophistication in managing their own health.

Strategy and Implementation Summary Our strategy for a successful start is based on quickly creating a high profile and name recognition within the community through public speaking, networking, promotional events, and print advertising. These marketing tools will be followed up with a sales strategy that relies on a pleasant and accessible location, well-trained, highly motivated employees, and a commitment to provide the best care and patient experience possible in every interaction. The advantage of this strategy is that every element of it is within our control. With few local doctors for this community, competition will be less of a concern than will education of potential patients about the benefits of seeing any doctor at all, and encouraging preventive health care. Competitive Edge

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Park Square Medical Center will have an competitive edge based on position, timing, quality of care, availability to patient, after-hour care, weekend hours, quality time, pleasant staff and office environment. All of these factors will result in patient satisfaction and high referral rates. In general, competition among fellow family practitioners in our town and the surrounding area is small. The growing population base and the limited number of doctors creates a strong opportunity. Marketing Strategy Upon opening up a new General Practice such as Park Square Family Medicine, it is important to create momentum before the actual day of opening. In conjunction with a Marketing and Advertising Group this momentum will be created 1 month prior to the opening date. We will first try to get our name recognized in conjunction with promoting the location and the services we can offer. We feel that the most important way to become established is create a presence among the community. The best way to create this is through a combination of the strategies outlined below, in order to accomplish greater visibility to prospective patients and institutions.

Marketing Materials All written materials used to promote the medical office will share a professional and polished look and feel. Our office will carry our own leaflets, to be made available to all patients, containing factual information about the services provided. This leaflet will also contain some biographical information, location, photos and other promotional material. This leaflet will be used to help promote Park Square Family Medicine both as handouts for patients within the clinic, as well as potential patients outside the clinic. The clinic will provide multiple education brochures from the AAFP. We will have an area where health information will be displayed and dispersed in the form of packets and brochures. In addition, patient information handouts will also be available via the EMR system and the website.
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There will be a number of patient-friendly brochures, videos, mailings, and other materials used to promote the medical office. We will have multiple ads in magazines and newspapers, as well as a commercial to announce the opening of Park Square Family Practice. Park Square Family Medicine will employ commercials, mail-outs that may include new patient discounts, yellow pages, magazines, newspapers, and other forms of advertising. Promotional Events We will set up an open house for surrounding businesses and potential patients to let them see our new clinic. During these open houses, we will provide HTN readings, glucose testing, and much more. We will consider having a blood drive in coordination with the local hospitals and Red Cross. Park Square Family Medicine will hold health information workshops with the help of community organizations for the general public at Park Square Family Medicine, as well as in local and public areas of interest. Our goal will be to bring new patients into the clinic but to also create word of mouth. New patients will have time to ask questions about medicine and new patients will be introduced to the new clinic. Our goal is to meet and promote the clinic to as many people before the opening of the clinic, as well as after the clinic is open. Networking Park Square Family Medicine will become a member of the business community. We will join and attend key business events that will help promote our new business. We will also promote ourselves in local business directories. We will also network through various organizations, such as local churches, the Lyons club, the Rotary club, as well as the country club in order to promote and generate further interest in our services. Park Square Family Medicine will incorporate reciprocal advertising with other nearby healthcare facilities, such as opticians, chiropractors, and hospitals. Park Square Family Medicine will obtain additional patients via ER referrals.

Accessibility Park Square Family Medicine will adopt several strategies to ensure patient satisfaction and word of mouth advertising. First our hours will include after after-hours care and allow patients to come into clinic after they get off work. We will also be open on Saturdays. This means there will be several days that we will be open till 7:00 P.M. and that we will also be open on Saturdays. Marketing Expenses Print Distribution: Newspaper A: A newspaper that serves the local region. A weekly circulation reaching approximately 40,000 homes and apartments. Additional papers circulated to businesses for

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handout distribution. Estimated ad space for an 8 inch color ad: $445.00 per circulation. Requests for placement 25% surcharge. Discounts given for frequency. Magazine B: a monthly magazine that is mailed to approximately 40,000 residents within our area. Quarter Page Ad: $656.00 / Ad with 3 month contract, $627.00/ Ad with 6 month contract, $568.00/Ad with 12 month contract. Professional Directory C: They will have advertising opportunities in their Professional Directory that is published in the Fall. I do not have pricing details guaranteed. Estimate a Quarter Page Ad: $1,100.00/Year Commercial Advertising: Effective campaign would include 100-150 spots per month. Several cable channels to target. 30 second spots range between: $50-75.00/ Spot. Primetime setting is $65.00- $100.00/Spot. Direct Mail Marketing: Targeting a specific prospect and demographic. Designing a targeted campaign, printing, and mail processing: Estimate: $00.75/piece processed. Effective direct mail campaign ranges between 5,000-10,000. Mailing to the same market 3 times over a six month period.

Sales Strategy The sales process begins when a patient calls us, comes in for an appointment, or accompanies a family member to an appointment. In every interaction, we must be accessible, courteous, knowledgeable, and helpful. Location: The clinic will be located in the heart of town. Patients will easily be able to find the clinic. Signs will be posted in strategic places to help assure patients comfort in finding our location. We feel that our location is a great asset and will strengthen our future success. Flexible Hours: Park Square Medical Clinic will adopt several strategies to ensure patient satisfaction and word of mouth advertising. First, our hours will include after after-hours care and allow patients to come into clinic after they get off work. We will also be open on Saturdays. This means there will be several weekdays that we will be open till 7:00 P.M. and that we will be open on Saturdays. We will also take walk-ins in order to provide the best possible convenience for the patient.
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Environment, Appearance, Etiquette and Overall Patient Experience: The building will have a bright and cheerful appearance with flowers and plants to decorate the outside and inside of the office. There will be colorful and informative signs that will help them find the clinic. Upon arriving and entering the clinic the patient will be greeted with a smile. Patients' needs and concerns will be addressed and they will be asked politely to have a seat in the waiting room. Upon arrival to the waiting room they will experience comfortable seating, good lighting, soft music or T.V, reading material and the general comforts appreciated by any patient. The walls will have beautiful art and there may even be a fish tank. The clinic rooms will be professional, clean and organized and the walls will be decorated with medical posters that will help explain the most common conditions. During the consultation the doctor will have a white coat and tie and will conduct himself in a professional and courteous manner. After the consultation, the doctor or the nurse will escort the patient to the front where all further arrangements will be made. A courtesy reminder card will be filled our for patients' convenience. Pricing Strategy: The pricing for consultations and visits, as well as any procedures will be billed according to industry standards. We will be consistent with our competitors and the national averages. Most pricing will be dependent upon agreements with the five largest insurers in the area. Sales Literature: The clinic will provide multiple education brochures from the AAFP. We will have an area where information will be displayed and dispersed in the form of packets and brochures. In addition, information handouts will also be available via the EMR system and website. Sales Forecast The first month prior to opening will be used to get the new office in order, set up appointments and begin marketing activities. The following months Park Square Medical Clinic will continue advertising and will use less and less assistance from General Medical Center until the second year, when the subsidy will cease. The following tables basically represent the amount of money that the practice expects to be making. Note that we list no direct cost of sales. This is standard for the medical office industry, since all medical supplies and waste disposal (needles, gauze, etc.) are handled as monthly supply orders, not inventory. These expenses can be found in the projected Profit and Loss statement.

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Sales Forecast Year 1 Sales Patient Care Other Total Sales Direct Cost of Sales Not applicable - see expenses Other $148,000 $220,000 $250,000 $270,000 $290,000 $0 $0 $0 $0 $0 $148,000 $220,000 $250,000 $270,000 $290,000 Year 1 $0 $0 Year 2 $0 $0 Year 3 $0 $0 Year 4 $0 $0 Year 5 $0 $0
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Year 2

Year 3

Year 4

Year 5

Subtotal Direct Cost of Sales

$0

$0

$0

$0

$0

Milestones We have established some basic milestones to keep the business plan priorities in place. Responsibility for implementation falls on the shoulders of Dr. Detroit. This Milestones table will be updated as the year progresses using the actual tables. New milestones will be added as the first year of operations commences.

Milestones Milestone Design and place first ads Close on Building Start Date End Date Budget Manager Department Dr. $2,000Detroit & Jack Dr. Detroit Dr. Detroit PSFM & GMC PSFM PSFM PSFM & GMC PSFM

9/1/2005 11/1/2005

10/1/2005 10/2/2005 $225,000

Redecorate and 10/1/2005 11/15/2005 $13,000 Furnish Clinic Install and Test 11/1/2005 12/15/2005 EMR system Sign contract for medical 11/1/2005 11/1/2005

Dr. $4,000Detroit & Jan $0 Dr. Detroit

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billing Employee training 12/1/2005 12/31/2005 Dr. $3,950Detroit & Liz Dr. $3,500Detroit & Jack Dr. Detroit, $0 Liz, & John Dr. $0Detroit & Liz $500 $0 $0 $251,950 Dr. Detroit Dr. Detroit Dr. Detroit PSFM & GMC PSFM & GMC PSFM & GMC

Finish Printed 12/1/2005 12/31/2005 Materials Monthly Financial Review with GMC Monthly Operational Review with GMC Hold Open Houses Begin first appointments Track Patient Load, first three months Totals

1/2/2006 12/31/2006

1/2/2006 12/31/2006

PSFM & GMC PSFM PSFM PSFM

1/2/2006 1/31/2006 2/1/2006 2/10/2006 2/1/2006 5/1/2006

Web Plan Summary Park Square Family Medicine will have a clinic website where patients can learn about our clinic, health information, location, map, hours of operation, biographical information about the physician, procedures and much more. We will also consider educational videos for diabetes, hypertension and many other important health issues facing society today, as well as specific health issues facing the local area. Website Marketing Strategy The website marketing strategy will be focused on increasing placement in search engines. The practice and website will focus on the local population. We will develop strategies to create links from local websites in the community to our business. Information about the website will be on the office brochure, cards and future advertisements. Development Requirements

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The website will be created by two companies, one to design the "front-end" and another which will implement it as a working site. The user interface will consist of a clean and simple design in which to comfortably navigate. The major content of the site will be information about the practice, hours, location, general medical information, insurance accepted and hospitals covered. The "front-end" design will be created in Fireworks MX software and the back-end design will be created in MYSQL and PHP. The website will be hosted on a dedicated server. Future development may include a registration database for new patients and a question and answer forum.

Management Summary Park Square Family Medicine will initially have two employees: a receptionist and a medical assistant. They will both be paid hourly wages and have health and dental benefits. As the practice grows, we will add additional personnel to help with referrals and additional responsibilities that will be needed at that time. During the first year, Park Square Family Medicine's physician (the clinic owner) will work fulltime at the clinic, but will be paid directly by General Medicine, and all of his benefits and payroll taxes will be paid by them. Starting in the second year, the physician/owner will draw his salary directly from Park Square Family Medicine. We will create a policy and procedures manual that will act as a guide and reference to sick pay, leave, vacation, hourly wages, payment, etc. The philosophies and guidelines in this manual will help maintain proper organizational structure. There will be a mandatory staff meeting on Wednesdays at 12:00 noon. There will be a prewritten list of items that will address ways to improve the practice. Everyone is expected to attend. All employees, including the doctor, will be expected to continue to better themselves in regards to both skills and knowledge. The staff of the clinic will have specific duties that they will perform on a daily basis. They will be responsible for their individual duties and must complete them in a systematic time-efficient manner. Once a month, Dr. Detroit will meet with each employee individually, and review their goals and performance for the month. Employees will have access to administrative consultants at General Medical for the first year, and will be expected to follow the suggestions that come out of joint meetings with Dr. Detroit and the consultants. Employees who consistently do a poor job will be written up and after two write-ups will be put on suspension. If the employee again fails to correct the problem that employee will be dismissed. All write-ups will occur in the presence of a witness and will be recorded.

Personnel Plan Employees will enjoy full medical and dental benefits. They will have a good salary that corresponds to their level of skill and total contribution to the medical practice. As our business grows and become stronger, we will offer a 401k plan. We may first start with a Simple IRA
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plan. The final goal is to create a profit-sharing opportunity in which to foster loyalty, longevity and contentment in the workplace.

Personnel Plan Year 1 Physician salary Receptionist Medical Assistant Health Insurance Dental Insurance Vision Insurance Workman's Comp Total People Year 2 Year 3 Year 4 Year 5 $0 $110,000 $110,000 $110,000 $110,000 $18,000 $20,000 $22,000 $23,000 $24,000 $21,600 $21,600 $21,600 $23,000 $24,000 $2,000 $2,000 $2,000 $1,800 3 $2,000 $2,000 $2,000 $1,800 3 $2,000 $2,000 $2,000 $1,800 3 $2,000 $2,000 $2,000 $1,800 3 $2,000 $2,000 $2,000 $1,800 3

Total Payroll

$47,400 $159,400 $161,400 $163,800 $165,800

Financial Plan It is estimated that start-up expenses will be $22,732. This amount of money will be used to purchase office equipment, medical supplies, furniture, stationary, and other start-up expenses. This amount, and a starting cash balance of $10,000, will be financed by General Medical Center. In addition, we are in the process of acquiring a building worth $225,000 with a 15 year mortgage, which will be repaid from the company's cash flows. As a sole proprietorship, this loan is guaranteed by Dr. Detroit's personal assets, and General Medical Center does not assume responsibility for it. The physician's salary will be paid by General Medical throughout the first year. They will also provide us with $24,000 a month for business expenses, for 12 months.
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At the end of the first year, subsidies from General Medical will end. Although sales are projected to increase steadily, and the physician will take reduced salary in the second through fourth years, we project a loss in the second and third years. This is due to the loss of expense subsidies, and the additional expense of the physician's salary and related taxes. We expect to begin breaking even in the fourth year, and have budgeted a cash balance to carry us through the years of loss. Important notation/limitations in viewing the financial plan: 1. The physician salary is considered a constant in the first year and therefore has not been included in this overall financial plan. 2. The $32,732 in start-up subsidies, and the $288,000 in first-year subsidies is forgiven and not subject to reimbursement unless Park Square family medicine fails...which will not happen. "Failure" is defined in the grant agreement as inability to achieve patient load goals for five months in a row during the first year. Start-up Funding The start-up requirements, with the exception of the building loan, are to be financed by General Medical Center. This is in addition to the $288,000 they will be providing over a 12 month period as expense subsidies in the first year, and the physician's salary for the first year. The purchase of the building will be financed by the owner, Dr. Detroit, with a 15-year mortgage (listed under Long-term Liabilities). This loan will be repaid from the clinic's cash flows and guaranteed with his personal assets. Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets $225,000 $10,000 $0 $10,000 $235,000 $22,732 $235,000 $257,732

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Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Grant from Marshall Medical Other Investment Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital $32,732 $0 $0 $32,732 ($22,732) $10,000 $0 $225,000 $0 $0 $225,000

Total Capital and Liabilities Total Funding

$235,000 $257,732

Break-even Analysis
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The Break-even Analysis shows that in the first year (with no physician salary), we need bring in $11,605 in revenue per month to break even. We will pass this mark by the sixth month. However, in the second and third year, with increased expenses including the physician's salary, and increased patient load, we will need to bring in roughly $21,400 per month to break even. We do not anticipate reaching this level of patient care payment until the middle of the fourth year, which will end with a modest profit.

Break-even Analysis

Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost Projected Profit and Loss

$11,013

0% $11,013

The profit and loss statement shows our increasing ability to cover the expenses of the business over the first year. Although we will operate at a loss for much of this year, our cash balance will be maintained by subsidies from General Medical. In the second year, Park Square Family Medicine will assume the full expense of the physician/owner's salary, as well as related payroll taxes. This increase, combined with small increases in operating expenses due to increased patient load, will keep us operating at a loss in the second and third year, but we expect to begin turning a small profit in the middle of the fourth year. Again, these losses will not cause us to go into a negative cash position at any point.

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Without the physician/owner's compensation, we would show a profit of $85,000 in the second year, and $114,000 in the third year. Should patient load not meet expectations in these years, the owner will reduce his own salary to keep the business on track.

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Pro Forma Profit and Loss Year 1 Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales

Year 2

Year 3

Year 4

Year 5

$148,000 $220,000 $250,000 $270,000 $290,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin Gross Margin %

$148,000 $220,000 $250,000 $270,000 $290,000 100.00% 100.00% 100.00% 100.00% 100.00%

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Expenses Payroll $47,400 $159,400 $161,400 $163,800 $165,800

Marketing/Promotion $36,000 $10,000 $10,000 $10,000 $10,000 Depreciation Payroll Taxes Medical Supplies Office Supplies Printing Other Professional Services Answering Service Telephone Medical Waste Repairs and Maintenance Janitorial Service Dues Books and Subscriptions Medical Billing Commercial Insurance $0 $0 $6,750 $4,500 $2,000 $1,000 $3,000 $2,000 $2,000 $1,500 $1,500 $1,000 $0 $0 $8,000 $5,000 $2,000 $1,000 $3,000 $1,500 $2,100 $1,500 $1,500 $1,000 $0 $0 $9,000 $5,500 $2,000 $1,000 $3,000 $1,500 $2,200 $1,500 $1,500 $1,000 $0 $0 $0 $0

$9,500 $10,000 $6,000 $2,000 $1,000 $3,000 $1,500 $2,300 $1,500 $1,500 $1,000 $6,200 $2,000 $1,000 $3,000 $1,500 $2,400 $1,500 $1,500 $1,000

$20,000 $20,000 $20,000 $20,000 $20,000 $3,500 $3,500 $3,500 $3,500 $3,500

Total Operating Expenses

$132,150 $219,500 $223,100 $226,600 $229,400

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

$15,850 $15,850

$500 $26,900 $43,400 $60,600 $500 $26,900 $43,400 $60,600

$20,875 $18,000 $15,000 $13,500 $13,500 $0 $0 $0 $0 $0

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Net Profit Net Profit/Sales Projected Cash Flow

($5,025) ($17,500) $11,900 $29,900 $47,100 -3.40% -7.95% 4.76% 11.07% 16.24%

This table shows the ongoing financial relationship between General Medical and Park Square Family Medicine. Park Square Family Medicine will receive $24,000 dollars a month to subsidize business expenses over the first 12 months. This plan does not show physician's compensation for the first year, which will be paid directly from General Medical to Dr. Detroit.

Pro Forma Cash Flow Year 1 Cash Received

Year 2

Year 3

Year 4

Year 5

Cash from Operations Cash Sales Cash from Receivables $14,800 $22,000 $25,000 $27,000 $29,000 $71,730 $168,096 $212,540 $234,693 $252,693

Subtotal Cash from $86,530 $190,096 $237,540 $261,693 $281,693 Operations

Additional Cash Received

25 | P a g e

Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interestfree) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received

$0 $0 $0 $0 $0 $0 $288,000

$0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0 $0 $0 $0

$374,530 $190,096 $237,540 $261,693 $281,693

Expenditures

Year 1

Year 2

Year 3

Year 4

Year 5

Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations $47,400 $159,400 $161,400 $163,800 $165,800 $96,925 $80,381 $76,815 $76,333 $77,034 $144,325 $239,781 $238,215 $240,133 $242,834

Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

26 | P a g e

Other Liabilities Principal Repayment

$0

$0

$0

$0

$0

Long-term Liabilities Principal $30,000 $30,000 $30,000 Repayment Purchase Other Current Assets Purchase Longterm Assets Dividends Subtotal Cash Spent $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 $0

$0 $0 $0 $0

$174,325 $269,781 $268,215 $240,133 $242,834

Net Cash Flow Cash Balance

$200,205 ($79,685) ($30,675) $21,560 $38,859 $210,205 $130,520 $99,845 $121,405 $160,264

Projected Balance Sheet The Balance Sheet shows our liabilities and assets, including the cumulative Cash Balance from the previous table. The Paid-in Capital of $320,732 represents subsidies from General Medical Center during the Start-up period and the first year of operations. This is a grant, and does not have to be repaid unless the clinic fails - defined in the grant agreement as failure to achieve patient load goals for five months in a row. The change in Cash Balance in the second and third years reflects the end of the first year subsidies from General Medical, and Park Square Family Medicine's payment of the physician's compensation. This decrease in assets is balanced by the repayment of our building loan. We expect Net Worth to begin rising again in years four and five. Pro Forma Balance Sheet Year 1 Assets

Year 2

Year 3

Year 4

Year 5

Current Assets Cash Accounts Receivable $210,205 $130,520 $99,845 $121,405 $160,264 $61,470 $91,374 $103,834 $112,141 $120,448

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Other Current Assets Total Current Assets

$0

$0

$0

$0

$0

$271,675 $221,894 $203,679 $233,546 $280,712

Long-term Assets Long-term Assets $225,000 $225,000 $225,000 $225,000 $225,000 Accumulated Depreciation Total Long-term Assets Total Assets $0 $0 $0 $0 $0

$225,000 $225,000 $225,000 $225,000 $225,000 $496,675 $446,894 $428,679 $458,546 $505,712

Liabilities and Capital

Year 1

Year 2

Year 3

Year 4

Year 5

Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities $8,700 $0 $0 $8,700 $6,419 $0 $0 $6,419 $6,304 $0 $0 $6,304 $6,271 $0 $0 $6,271 $6,337 $0 $0 $6,337

Long-term Liabilities Total Liabilities

$195,000 $165,000 $135,000 $135,000 $135,000 $203,700 $171,419 $141,304 $141,271 $141,337

Paid-in Capital

$320,732 $320,732 $320,732 $320,732 $320,732

Retained Earnings ($22,732) ($27,757) ($45,257) ($33,357) ($3,457) Earnings Total Capital ($5,025) ($17,500) $11,900 $29,900 $47,100 $292,975 $275,475 $287,375 $317,275 $364,375
28 | P a g e

Total Liabilities and Capital

$496,675 $446,894 $428,679 $458,546 $505,712

Net Worth Business Ratios

$292,975 $275,475 $287,375 $317,275 $364,375

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 8011, Offices and Clinics of Medical Doctors, are shown for comparison. Ratio Analysis Year 1 Sales Growth Year 2 Year 3 Year 4 8.00% Year 5 7.41% Industry Profile 5.64%

n.a. 48.65% 13.64%

Percent of Total Assets Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Total Assets 12.38% 20.45% 24.22% 24.46% 23.82% 13.11% 0.00% 0.00% 0.00% 0.00% 0.00% 54.55%

54.70% 49.65% 47.51% 50.93% 55.51% 68.11% 45.30% 50.35% 52.49% 49.07% 44.49% 31.89% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabilities Long-term Liabilities Total Liabilities Net Worth

1.75%

1.44%

1.47%

1.37%

1.25% 21.29%

39.26% 36.92% 31.49% 29.44% 26.70% 21.02% 41.01% 38.36% 32.96% 30.81% 27.95% 42.31% 58.99% 61.64% 67.04% 69.19% 72.05% 57.69%

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Percent of Sales Sales Gross Margin 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Selling, General & 103.40% 107.95% 95.24% 88.93% 83.76% 52.19% Administrative Expenses Advertising Expenses Profit Before Interest and Taxes 0.00% 10.71% 0.00% 0.00% 0.00% 0.00% 0.31% 3.12%

0.23% 10.76% 16.07% 20.90%

Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets 31.23 31.23 34.57 34.57 32.31 32.31 37.24 37.24 44.30 44.30 1.72 1.36

41.01% 38.36% 32.96% 30.81% 27.95% 49.35% -1.72% -1.01% -6.35% -3.92% 4.14% 2.78% 9.42% 12.93% 18.06% 6.52% 9.31% 35.67%

Additional Ratios Net Profit Margin Return on Equity

Year 1 -3.40% -1.72%

Year 2 -7.95% -6.35%

Year 3

Year 4

Year 5 n.a n.a

4.76% 11.07% 16.24% 4.14% 9.42% 12.93%

Activity Ratios Accounts Receivable Turnover 2.17 2.17 2.17 2.17 2.17 n.a

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Collection Days Accounts Payable Turnover Payment Days Total Asset Turnover

76 12.14 27 0.30

141 12.17 35 0.49

158 12.17 30 0.58

162 12.17 30 0.59

163 12.17 30 0.57

n.a n.a n.a n.a

Debt Ratios Debt to Net Worth Current Liab. to Liab. 0.70 0.04 0.62 0.04 0.49 0.04 0.45 0.04 0.39 0.04 n.a n.a

Liquidity Ratios Net Working Capital Interest Coverage $262,975 $215,475 $197,375 $227,275 $274,375 0.76 0.03 1.79 3.21 4.49 n.a n.a

Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 3.36 2% 24.16 0.51 0.00 2.03 1% 20.33 0.80 0.00 1.71 1% 15.84 0.87 0.00 1.70 1% 19.36 0.85 0.00 1.74 1% 25.29 0.80 0.00 n.a n.a n.a n.a n.a

31 | P a g e

Appendix Personnel Plan Month Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 12 Physician salary 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Receptionis $1,50 $1,50 $1,50 $1,50 $1,50 $1,50 $1,50 $1,50 $1,50 $1,50 $1,50 0% $1,500 t 0 0 0 0 0 0 0 0 0 0 0 Medical Assistant Health Insurance Dental Insurance Vision Insurance 0% $1,80 $1,80 $1,80 $1,80 $1,80 $1,80 $1,80 $1,80 $1,80 $1,80 $1,80 $1,800 0 0 0 0 0 0 0 0 0 0 0

0% $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 0% $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 0% $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167

Workman's 0% $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 Comp Total People 3 3 3 3 3 3 3 3 3 3 3 3

Total Payroll

$3,95 $3,95 $3,95 $3,95 $3,95 $3,95 $3,95 $3,95 $3,95 $3,95 $3,95 $3,950 0 0 0 0 0 0 0 0 0 0 0

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Pro Forma Profit and Loss Month Month Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont 1 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 h 10 h 11 h 12 Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $4,00 $6,00 $9,00 $12,0 $14,0 $16,0 $18,0 $21,0 $24,0 $24,0 0 0 0 00 00 00 00 00 00 00 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin Gross Margin %

$0

$0

$4,00 $6,00 $9,00 $12,0 $14,0 $16,0 $18,0 $21,0 $24,0 $24,0 0 0 0 00 00 00 00 00 00 00 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

0.00% 0.00%

Expenses Payroll Marketing/Pro motion Depreciation Payroll Taxes Medical Supplies Office Supplies Printing Other 15 % $3,950$3,950 $3,000$3,000 $0 $0 $0 $0 $0 $0 $0 $0 $3,95 $3,95 $3,95 $3,95 $3,95 $3,95 $3,95 $3,95 $3,95 $3,95 0 0 0 0 0 0 0 0 0 0 $3,00 $3,00 $3,00 $3,00 $3,00 $3,00 $3,00 $3,00 $3,00 $3,00 0 0 0 0 0 0 0 0 0 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $750 $750 $750 $750 $750 $750 $750 $750 $750 $0 $500 $500 $500 $500 $500 $500 $500 $500 $500

$167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83

33 | P a g e

Professional Services Answering Service Telephone Medical Waste Repairs and Maintenance Janitorial Service Dues Books and Subscriptions Medical Billing Commercial Insurance $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125

$83

$83

$83

$83

$83

$83

$83

$83

$83

$83

$83

$83

15 $1,66 $1,66 $1,66 $1,66 $1,66 $1,66 $1,66 $1,66 $1,66 $1,66 $1,667$1,667 % 7 7 7 7 7 7 7 7 7 7 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292

Total Operating Expenses

$10,07 $10,07 $10,0 $11,3 $11,3 $11,3 $11,3 $11,3 $11,3 $11,3 $11,3 $11,3 5 5 75 25 25 25 25 25 25 25 25 25

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

($10,0 ($10,0($6,07($5,32($2,32 $2,67 $4,67 $6,67 $9,67 $12,6 $12,6 $675 75) 75) 5) 5) 5) 5 5 5 5 75 75 ($10,0 ($10,0($6,07($5,32($2,32 $2,67 $4,67 $6,67 $9,67 $12,6 $12,6 $675 75) 75) 5) 5) 5) 5 5 5 5 75 75 $1,854$1,833 $0 $0 $1,81 $1,79 $1,77 $1,75 $1,72 $1,70 $1,68 $1,66 $1,64 $1,62 3 2 1 0 9 8 8 7 6 5 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit

($11,9 ($11,9($7,88($7,11($4,09($1,07 $2,96 $4,98 $8,00 $11,0 $11,0 $946 29) 08) 8) 7) 6) 5) 7 7 8 29 50
34 | P a g e

Net Profit/Sales

18.54 27.71 38.13 45.95 46.04 0.00% 0.00% 197.1 118.6 45.51 6.76% 8.96% % % % % % 9% 1% %

Pro Forma Cash Flow Mont Mont Mont Mont Mont Mont Mont Month Month Month Month Month h1 h2 h3 h4 h5 h6 h7 8 9 10 11 12 Cash Received

Cash from Operation s Cash Sales Cash from Receivabl es Subtotal Cash from Operation s $0 $0 $400 $600 $900 $1,20 $1,40 $1,600 $1,800 $2,100 $2,400 $2,400 0 0 $3,66 $5,49 $10,86 $12,66 $14,46 $16,29 $8,190 0 0 0 0 0 0

$0

$0

$0

$0 $120

$0

$0 $400 $600

$1,02 $4,86 $6,89 $12,66 $14,76 $16,86 $18,69 $9,790 0 0 0 0 0 0 0

Additiona l Cash Received Sales Tax, VAT, 0.00 HST/GST % Received New Current Borrowin g

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

35 | P a g e

New Other Liabilities (interestfree) New Longterm Liabilities Sales of Other Current Assets Sales of Longterm Assets New Investmen t Received Subtotal Cash Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$24,0 $24,0 $24,0 $24,0 $24,0 $24,0 $24,0 $24,00 $24,00 $24,00 $24,00 $24,00 00 00 00 00 00 00 00 0 0 0 0 0

$24,0 $24,0 $24,4 $24,6 $25,0 $28,8 $30,8 $33,79 $36,66 $38,76 $40,86 $42,69 00 00 00 00 20 60 90 0 0 0 0 0

Expenditu res

Mont Mont Mont Mont Mont Mont Mont Month Month Month Month Month h1 h2 h3 h4 h5 h6 h7 8 9 10 11 12

Expenditu res from Operation s Cash Spending Bill Payments Subtotal $3,95 $3,95 $3,95 $3,95 $3,95 $3,95 $3,95 $3,950 $3,950 $3,950 $3,950 $3,950 0 0 0 0 0 0 0 $266 $7,97 $7,95 $7,97 $9,16 $9,14 $9,12 $9,103 $9,083 $9,062 $9,041 $9,020 8 8 8 6 5 4

$4,21 $11,9 $11,9 $11,9 $13,1 $13,0 $13,0 $13,05 $13,03 $13,01 $12,99 $12,97
36 | P a g e

Spent on Operation s

28

08

28

16

95

74

Additiona l Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayme nt of Current Borrowin g Other Liabilities Principal Repayme nt Longterm Liabilities Principal Repayme nt Purchase Other Current Assets Purchase Longterm Assets Dividends Subtotal

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$2,50 $2,50 $2,50 $2,50 $2,50 $2,50 $2,50 $2,500 $2,500 $2,500 $2,500 $2,500 0 0 0 0 0 0 0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$6,71 $14,4 $14,4 $14,4 $15,6 $15,5 $15,5 $15,55 $15,53 $15,51 $15,49 $15,47
37 | P a g e

Cash Spent

28

08

28

16

95

74

Net Cash Flow Cash Balance

$17,2 $9,57 $9,99 $10,1 $9,40 $13,2 $15,3 $18,23 $21,12 $23,24 $25,36 $27,22 84 2 2 72 4 65 16 7 7 8 9 0 $27,2 $36,8 $46,8 $57,0 $66,4 $79,6 $95,0 $113,2 $134,3 $157,6 $182,9 $210,2 84 56 48 19 23 88 04 41 68 16 85 05

Pro Forma Balance Sheet Month Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 12 Startin g Balan ces

Assets

Current Assets Cash Account s Receivab le Other Current Assets Total Current Assets $10,0 $27,2 $36,8 $46,8 $57,0 $66,4 $79,6 $95,0 $113, $134, $157, $182, $210,2 00 84 56 48 19 23 88 04 241 368 616 985 05 $3,60 $9,00 $16,9 $24,1 $31,2 $37,4 $42,7 $49,0 $56,1 $61,47 0 0 80 20 30 40 80 20 60 0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$10,0 $27,2 $36,8 $50,4 $66,0 $83,4 $103, $126, $150, $177, $206, $239, $271,6 00 84 56 48 19 03 808 234 681 148 636 145 75

Longterm Assets Long$225, $225, $225, $225, $225, $225, $225, $225, $225, $225, $225, $225,$225,0
38 | P a g e

term Assets Accumul ated Deprecia tion Total Longterm Assets Total Assets

000

000

000

000

000

000

000

000

000

000

000

000

00

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$225, $225, $225, $225, $225, $225, $225, $225, $225, $225, $225, $225, $225,0 000 000 000 000 000 000 000 000 000 000 000 000 00 $235, $252, $261, $275, $291, $308, $328, $351, $375, $402, $431, $464, $496,6 000 284 856 448 019 403 808 234 681 148 636 145 75

Liabilitie s and Capital

Month Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 12

Current Liabilitie s Account s Payable Current Borrowi ng Other Current Liabilitie s Subtotal Current Liabilitie s $0 $7,71 $7,69 $7,67 $8,86 $8,84 $8,82 $8,80 $8,78 $8,76 $8,74 $8,72 $8,700 3 3 3 1 1 1 1 1 0 0 0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$7,71 $7,69 $7,67 $8,86 $8,84 $8,82 $8,80 $8,78 $8,76 $8,74 $8,72 $8,700 3 3 3 1 1 1 1 1 0 0 0

Long-

$225, $222, $220, $217, $215, $212, $210, $207, $205, $202, $200, $197,$195,0
39 | P a g e

term Liabilitie s

000

500

000

500

000

500

000

500

000

500

000

500

00

Total $225, $230, $227, $225, $223, $221, $218, $216, $213, $211, $208, $206, $203,7 Liabilitie 000 213 693 173 861 341 821 301 781 260 740 220 00 s

Paid-in Capital

$32,7 $56,7 $80,7 $104, $128, $152, $176, $200, $224, $248, $272, $296, $320,7 32 32 32 732 732 732 732 732 732 732 732 732 32

Retained ($22,7 ($22,7 ($22,7 ($22,7 ($22,7 ($22,7 ($22,7 ($22,7 ($22,7 ($22,7 ($22,7 ($22,7 ($22,7 Earnings 32) 32) 32) 32) 32) 32) 32) 32) 32) 32) 32) 32) 32) Earnings Total Capital $0 ($11,9 ($23,8 ($31,7 ($38,8 ($42,9 ($44,0 ($43,0 ($40,1 ($35,1 ($27,1 ($16,0 ($5,02 29) 38) 25) 42) 38) 13) 67) 00) 13) 04) 75) 5)

$10,0 $22,0 $34,1 $50,2 $67,1 $87,0 $109, $134, $161, $190, $222, $257, $292,9 00 71 62 75 58 62 987 933 900 887 896 925 75

Total Liabilitie $235, $252, $261, $275, $291, $308, $328, $351, $375, $402, $431, $464, $496,6 s and 000 284 856 448 019 403 808 234 681 148 636 145 75 Capital

Net Worth

$10,0 $22,0 $34,1 $50,2 $67,1 $87,0 $109, $134, $161, $190, $222, $257, $292,9 00 71 62 75 58 62 987 933 900 887 896 925 75

General Assumptions Month Month Month Month Month Month Month Month Month Month Month Month 1 2 3 4 5 6 7 8 9 10 11 12 Plan Month 1 2 3 4 5 6 7 8 9 10 11 12

Curren t 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Interest % % % % % % % % % % % % Rate Long10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 term % % % % % % % % % % % % Interest

40 | P a g e

Rate Tax Rate Other 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 % % % % % % % % % % % % 0 0 0 0 0 0 0 0 0 0 0 0

Sales Forecast Mont Mont Mont Mont Mont Month Month Month Month Month Month Month h1 h2 h3 h4 h5 6 7 8 9 10 11 12 Sales Patient Care Other Total Sales 0 % 0 % $0 $0 $0 $0 $0 $0 $4,00 $6,00 $9,00 $12,00 $14,00 $16,00 $18,00 $21,00 $24,00 $24,00 0 0 0 0 0 0 0 0 0 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$4,00 $6,00 $9,00 $12,00 $14,00 $16,00 $18,00 $21,00 $24,00 $24,00 0 0 0 0 0 0 0 0 0 0

Direct Cost of Sales Not applicabl e - see expenses Other Subtotal Direct Cost of Sales

Mont Mont Mont Mont Mont Month Month Month Month Month Month Month h1 h2 h3 h4 h5 6 7 8 9 10 11 12

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

41 | P a g e