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e starting point. HCA framed ACA impact as a L-T positive, but key variables remain very fluid this year including: (I) enrollment for exchange and Medicaid; (2) net new lives; (3) networks and plan selection of exchange products. HCA assumes 7-9% reduction of uninsured (reasonable) but offset somewhat

mcam 'app. ;roc SIP 06)111,EX 0..tbasten Performance (%I 1n1 3m 12m Absolute .0.6 2.4 26.8 S&P 600 INDEX awn Cana Sat -4.9 -1.1 15.1 Deutsche Bank Securities Inc. Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have

ines in pricing/volume from exchange mix. The key variables that HCA is tracking for its reform model are: (1) enrollment figures for exchanges and Medicaid expansion; (2) the proportion of enrollment that is net newly insured; (3) health plan selection (metallic), network design and network participati

We see HCA as a best-in-class operator with strong assets, a flexible balance sheet and a good track record for opportunistic capital deployment. Deutsche Bank Securities Inc. HCA's O4 E8ITOA growth (+6.7% YoY) is very respectable and reflects strong expense management and improving priangimix We believe any sustained

hat drove their estimated 2014 net benefit from health care reform of I%-2% of adjusted EBITDA: (1) Health Insurance Exchange (HIX) enrollment and Medicaid lives. Management indicated that its model builds from the latest reported base of HIX enrollees (-3M as indicated by CMS on Jan 24th). It also ta

EBITDA / $3.45-$3.75 EPS ) due to underlying growth and ACA. Our model now reflects higher S/O (+1% higher), slightly lower HITECH benefit Page 8 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0110493 CONFIDENTIAL SDNY_GM_00256677 EFTA01453082

31/16 6/30/16 9/30/16 12/31/16 3/31/17 6/30/17 9/30/17 HCA Medicare 31.8% 2&9% 28.6% 28.2% 30.5% 29.7% 29.0% 29.2% 31.7% 29.7% 29.3% Medicaid 9.7% 9.0% 8.7% 8.9% 9.3% 9.2% 9.1% &8% 8.9% 8.7% 7.9% Managed Care 53.6% 52.9% 52.4% 53.7% 54.5% 54.9% 55.3% 55.5% 54.4% 54.0%

12.6% 12.7% 112% Total W00% 100.0% 103.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Saar Clancniabest N Cowry ira lawn Deutsche Bank Securities Inc. Page 121 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0086680 CONFIDENTIAL SDNY_GM_00232864 EFTA01385396

cal Properties Trust Elevated government reimbursement risk While an updated payor mix has not been provided since August 2014, Medicare (38%) and Medicaid (13%) accounted for roughly half of US net revenue at that point. This is a function of MPW's focus on hospitals, which have a higher government pa

PW acquired CircleBath Hospital, a 28-bed acute care facility in Bath, England. from Circle Health for E28MM through a sale leaseback transaction. Deutsche Bank Securities Inc. Pogo 9 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0093208 CONFIDENTIAL SDNY_GM_00239392 EFTA01389042

s Episode-based payment initiatives In an attempt to coordinate care across different settings and generate cost savings, Centers for Medicare and Medicaid (CMS) has expanded its existing use of bundled payment programs with the goal of shifting 50% of traditional Medicare payments into alternative pay

procedures to that of a physician's office rate. In its report MedPAC provided an example where an echocardiogram performed at a hospital Page 20 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0093219 CONFIDENTIAL SDNY GM_00239403 EFTA01389045

the US Department of Health and Human Services (HHS). These figures are based on estimated decreases in the total number of uninsured and expanded Medicaid coverage. $5.06 of UCC reduction was due to the expansion of Medicaid in 28 states and Washington D.C., which is a 26% reduction in baseline UCC co

, though the tailwind from falling UCC costs cycled in late 2015 and we would not expect material upside to growth going forward from this factor. Deutsche Bank Securities Inc. Page 19 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0093218 CONFIDENTIAL SDNY_GM_00239402 EFTA01389044