Harmony Financial Impact

Harmony Healthcare International, Inc.Presented by:

Kris MastrangeloPresident & CEO

Facility #1 – Northwest

75 Bed facility Medicare Part A ADC Range: 12-17 Average Medicare Part A LOS YTD Jan–July 2011: 33.31 days

$190,216

$212,249

$245,324

$259,035

$175,000

$195,000

$215,000

$235,000

$255,000

$275,000

Feb Mar Apr May

Total Part A RevenueFebruary 2011 - May 2011

$439.92$446.52

$466.48

$488.69

$514.98

$425

$445

$465

$485

$505

$525

J an Feb Mar Apr May

Part A RateJanuary 2011 - May 2011

Facility #2 – Northwest

165 bed facility Medicare Part A ADC Range: 10-17 Average Medicare Part A LOS YTD Jan–June 2011: 31.56 days

$405.87

$447.93

$489.89$508.95

$521.75

$574.55

$400

$425

$450

$475

$500

$525

$550

$575

$600

J ul-10(Harmonystart date)

J an Feb Mar Apr May

Part A RateJanuary 2011 - May 2011

60.7% 61.9%

67.9%

76.4%

88.2%

55%

60%

65%

70%

75%

80%

85%

90%

95%

Jan Feb Mar Apr May

Percentage of Therapy DaysJanuary 2011 - May 2011

Facility #3 – Northwest

93 bed facility Medicare Part A ADC Range: 18-26 Average Medicare Part A LOS YTD Jan–July 2011: 29.53 days

$443.75

$496.96

$513.83 $515.22

$522.63

$480

$490

$500

$510

$520

$530

Oct-10(Harmonystart date)

Feb Mar Apr May

Part A RateFebruary 2011 - May 2011

$310,355$313,770

$327,165

$300,000

$310,000

$320,000

$330,000

$340,000

Mar Apr May

Total Part A RevenueMarch 2011 - May 2011

Facility #4 – Southern

233 bed facility Medicare Part A ADC Range: 20-29 Average Medicare Part A LOS YTD Jan–June 2011: 31.19 days

64.5%

88.0% 88.2%89.5%

93.7%95.3%

80%

85%

90%

95%

100%

Feb-05(Harmonystart date)

J an Feb Mar Apr May

Percentage of Therapy DaysJanuary 2011 - May 2011

3.2%

58.9%60.1%

70.0%71.6%

55.00%

60.00%

65.00%

70.00%

75.00%

% o

f D

ays

Feb-05(Harmonystart date)

Feb Mar Apr May

% RU Days of TotalFebruary 2011 - May 2011

Facility #4 – Southern (cont.)

$405.87

$428.39

$447.93

$489.89

$508.95

$521.75

$400

$420

$440

$460

$480

$500

$520

$540

J ul-10(Harmonystart date)

Dec J an Feb Mar Apr

Part A RateDecember 2010 - April 2011

Facility #5 – Northeast

102 bed facility Medicare Part A ADC Range: 11-15 Average Medicare Part A LOS YTD Jan–June 2011: 35.22 days

$134,363$145,038

$189,077

$207,628

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

Jan Feb Apr May

Total Part A RevenueJanuary 2011 - May 2011

$416.00

$439.10

$459.64

$492.39

$415

$430

$445

$460

$475

$490

$505

Dec-10(Harmony start date)

Jan Mar Apr

Part A RateJanuary, March & April 2011

Facility #5 – Northeast (cont.)

70

77

84

91

Dec-10(Harmony start date)

Mar Apr May

9

75

81

93

# o

f D

ays

RU DaysMarch 2011 - May 2011

Facility #6 – Northeast

154 bed facility Medicare Part A ADC Range: 13-19 Therapy FTEs: 4.8

$362.78

$512.46

$530.01

$535.79

$545.02

$500

$510

$520

$530

$540

$550

$560

J un-06(Harmonystart date)

J an Feb Mar May

Part A RateJanuary 2011 - May 2011

Facility #7 – Northeast

53 bed facility Medicare Part A ADC Range: 3-4

$26,186

$34,384$37,303

$69,097

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

J an Feb Apr J un

Part A RevenueJanuary, February, April & June 2011

$406.15

$478.24$486.78

$575.81

$425

$445

$465

$485

$505

$525

$545

$565

$585

May-09(Harmonystart date)

Apr May J un

Part A RateApril 2011 - June 2011

Facility #7 – Northeast (cont.)

37.2%

75.4%81.7%

25%

35%

45%

55%

65%

75%

85%

95%

Apr May Jun

Percentage of Therapy DaysApril 2011 - June 2011

Facility #8 – Northeast

30 bed facility Medicaid Census: 16 Case Mix RUG Mix for July = 20% Rehab

1.3100

1.3600

1.4100

1.4600

Aug10

Sep10

Oct10

Jan11

Mar11

Jul11

1.3385

1.3755

1.4075 1.4160

1.4323

1.4725

Tota

l Cas

e M

ix In

dex

Case Mix Historical DataAugust 2010 - July 2011

Facility #9 – Northeast

120 bed facility Medicare Part A ADC Range: 9-11

$190,673

$201,035

$214,896

$237,839

$185,000

$195,000

$205,000

$215,000

$225,000

$235,000

$245,000

Feb Mar Apr May

Total Part A RevenueFebruary 2011 - May 2011

$431.04

$638.21

$663.26

$718.55

$575

$605

$635

$665

$695

$725

Dec 09(Harmonystart date)

Mar Apr May

Part A RateMarch 2011 - May 2011

Facility #10 – Southern

92 bed facility Medicare Part A ADC Range: 13-18 Average Medicare Part A LOS YTD Jan–June 2011: 29.85 days

$185,000

$210,000

$235,000

$260,000

$285,000

Dec 10(Harmonystart date)

Feb Apr May Jun

$184,206

$203,330

$219,531

$235,928

$277,277

Total Part A RevenueFebruary, April, May & June 2011

$150,000

$180,000

$210,000

$240,000

Dec 10(Harmonystart date)

Apr May Jun

$152,156

$195,558 $200,257

$247,520

Rehab RevenueApril 2011 - June 2011

Facility #10 – Southern (cont.)

$405

$430

$455

$480

$505

Dec 10(Harmonystart date)

Feb Mar Apr May Jun

$407.54

$440.11

$451.45

$466.10 $464.42

$506.90

Part A RateFebruary 2011 - June 2011

54%

58%

62%

66%

70%

Dec 10(Harmonystart date)

Feb Mar Apr May Jun

54.3%

58.6%60.1%

62.1% 61.9%

67.5%

% of Max RateFebruary 2011 - June 2011