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DespiteanincrediblychallengingeconomicenvironmentConcordHospitalexceededitsbudgetedperormanceduring2012.ForthersttimeConcordHospitalhadtopayitsullMedicaidEnhancementTaxover15000000withabsolutelynoosetromtheDisproportionateShareFund.TheNewHampshireLegislaturebalancedtheStatebudgetonthebacksothe13largerandpredominantlynot-or-prothospitalsintheState.TheMedicaidEnhancementTaxwasinitiallyputinplacemorethan20yearsagoasavehicleortheStatetoleverageederalunding.AtthattimetheStatecommittedthatallhospitalswouldreceivepaymentstoosetthetaxbasedupontheamountouncompensatedcaretheyprovided.ConcordHospitalprovidesmoreuncompensatedcarethananyhospitalintheStateotherthanDartmouth-HitchcockMedicalCenteranditsunreasonablethattheStatewouldrenegeonitslongstandingcommitmenttomakeequitabledisproportionatecarepaymentsoruncompensatedcare.ConcordHospitalhasremainedtruetoitsmissionandisprobablytheonlylargehospitalintheStatethatdidnotcutbackonservicetotheMedicaidanduninsuredpopulationortakedraconianactionsuchasstalayostoreduceexpenses.Anumberoactorsdidcontributetoourabilitytooutperormourbudget.Wemadesignicantadjustmentsin2010whenwewereunderperormingwhencomparedtobudgetandthoseadjustmentscontinuetohelpourperormancetoday.Wereceivedaone-timesettlementpaymentromMedicarerelatedtotheirmiscalculationopaymentsoveramultiyearperiod.Wereceivedasignicantone-timesettlementromaninormationtechnologyvendortoosetourinvestmentinaproductthatwasneverullydevelopedanddeployed.Wereceivedtwoextraordinaryphilanthropicgitsduringtheyear.Onewasalegacygitoover3000000thisdidnotgointooperationsandanotherwasa700000gitwhichsupportedoperationsorkeycommunitybenetprogramsandservices.TheimportanceophilanthropytoConcordHospitalhasneverbeenmoresel-evidentOcourseexcellentday-to-daymanagementoexpensesalsocontributed32012CONCOrDHOSpItAlANNuAlrEpOrtMichaelB.GreenPresidentChieExecutiveOfcerCONTINUEDONPG4