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LifePoint Hospitals Inc.(NASDAQ LPNT)
By Greg BoehmerChristen BrownMike
JacobsonBill SchwartzJosh Stanley
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LifePoint (LPNT) Overview

• NASDAQ LPNT
• Own and operate 51 hospitals in 19 states.
• One of the largest hospital groups in US
• Focus on non-urban healthcare
• Offers potential for significant operational
  improvement. - Website
• Medical, surgical, and outpatient services.

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LifePoint (LPNT) Overview
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LifePoint History

• Spun off from HCA,Inc in 1999.
• Agreed to acquire Providence Healthcare Company
  in August 2004.
• 1.7 billion in cash, stock and debt.
• Transaction completed in 2005.
• 26 new hospitals added.

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William F. Carpenter IIIPresident and Chief
Executive Officer

• Joined in 1999.
• Served as executive vice president, general
  counsel and secretary, chief development officer
  and corporate governance officer.
• Prior member of the Nashville law firm, Waller,
  Lansden, Dortch Davis.
• Specialized in general corporate and healthcare
  law.
• Board of directors
• Federation of American Hospitals
• Psychiatric Solutions, Inc.

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Michael  J.  CulottaChief Financial Officer

• Joined in 2001.
• Previously spent 25 years with Ernst Young LLP.
  
• Became partner in 1999.
• Board of Directors - Evolved Digital Systems,
  Inc.
• Previous Chairman of the Board of the Tennessee
  Valley Region of the American Red Cross Blood
  Services.
• Previous Treasurer of the Nashville Area Chapter
  of the American Red Cross
• Board member for the Nashville Healthcare Counsel
  and the Nashville Ballet.

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William M. GraceyChief Operating Officer

• Joined in 1999.
• Served in a number of multi-facility executive
  and hospital CEO positions with HCA.
• Fellow - American College of Healthcare
  Executives.
• Board Member of the Tennessee Hospital
  Association,
• Board Member - Board of Governors of the
  Federation of American Hospitals.
• Preceptor of the Year - Virginia Commonwealth
  University's Healthcare Administration Graduate
  Program.

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Board of Directors

• Owen G. Shell Jr.Chairman
• William F. Carpenter III
• Richard H. Evans
• DeWitt Ezell Jr.
• Michael P. Haley
• Ricki Tigert Helfer
• William V. Lapham
• John E. Maupin Jr., D.D.S.

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Stock Screener (3/20/07)
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Percent Return LPNT, CHY, HMA
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Competitors
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DCF Results
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Revenues by Payor Mix
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Key Challenges

• Increase in provisions for doubtful accounts
  Went from 197 to 273 from 05 to 06.
• Difficulty in recruiting and retaining physicians
• Substantial indebtedness 1.6 billion in debt
• Medicare Changes changes in regulations and
  standards by govt.
• Integrating acquired hospitals
• Shortage of nursing and technician personnel
• Changes in companys Chief Executive Officer and
  Chairman

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Future initiatives and competitive advantages.

• Own 52 hospitals nation wide Plan to acquire 2
  more hospitals in 2006-2007
• Will be seeking to add 172 admitting physicians
  in 2007
• Formed Joint venture with physicians in Lake
  Havasu
• They are sole provider of medical care in all but
  5 of their locations
• Acquired on April 15, 2005 21 hospitals in non
  urban communities
• Run hospitals in primarily non urban communities
  because of certain specific advantages.
• Less competitive than urban markets smaller
  populations fewer hospitals
• Community Focus
• Acquisition Opportunities-
• Paying down debt Interest rate swap effective
  Nov 30, 06

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LifePoint Recommendation

• Passed initial and secondary screens.
• Young company but DCF is positive.
• Recommendation (strong sell to strong buy)

BUY