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TSX: DRINVESTOR PRESENTATION SEPTEMBER 2016
MEDICAL FACILITIES CORPORATION
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Forward-Looking Statements
This presentation may contain forward-looking statements within the meaning of certain securities laws, including the
“safe harbour” provisions of the Securities Act (Ontario) and other provincial securities law in Canada. These forward-
looking statements include, among others, statements with respect to our objectives, goals and strategies to achieve
those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations,
anticipations, estimates and intentions. The words “may”, “will”, “could”, “should”, “would”, “suspect”, “outlook”,
“believe”, “plan”, “anticipate”, “estimate”, “expect”, “intend”, “forecast”, “objective” and “continue” (or the negative
thereof), and words and expressions of similar import, are intended to identify forward-looking statements. Any such
statements are subject to risks and uncertainties that could cause actual results to differ materially from those
projected in these forward-looking statements. For more information on the risk factors related to these forward-
looking statements, please refer to the management’s discussion and analysis, annual information form and ongoing
quarterly filings of Medical Facilities Corporation available on SEDAR at www.sedar.com.
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Transforming U.S. Healthcare Landscape
Acute Care Hospital
Specialty Surgical Hospital
Ambulatory Surgery Center
Urgent Primary Care Center
MFC TODAY
Home Healthcare
Imaging Clinic
Other Specialty Clinic
(~5,600)
(~235)
(~5,300)
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Multiple Payment Sources
Medicare20%
Medicaid16%
Other Public4%
Private Insurance33%
Out-of_Pocket11%
Public Health3%
Investment5%
Other Payors8%
2014:
$3TRILLION
40% Public Health Insurance
Source: “Payment Sources, 2014” Health Care Costs 101, California Health Care Foundation, 2016
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Growing Demand for Healthcare
DRIVERS:
Overall population growth
Aging population
Healthcare reform expanding coverage
Source: U.S. Census Bureau, 2010 based on National Population Projections 2008; 2015 & 2020 based on National Population Projections 2012Centers for Medicare & Medicaid Services, National Health Expenditure Projections 2011-2021
(millions) (US$ billion)
Po
pula
tio
n
Natio
nal Health Expenditure
0
1,000
2,000
3,000
4,000
5,000
0
100
200
300
400
2010 2015E 2020E
Under 45 years 45 to 64 years 65 years and over National Health Expenditure(US$ billion)
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Changing Healthcare Industry Driving Acquisition Opportunities
Affordable Care Act driving need for greater efficiency and scale in healthcare providers
Independent centers requiring scale to drive margin improvement
Portfolio rebalancing as a result of consolidation or service realignment makes attractive assets available
~940 healthcare transactions in 2015 ($175B)*
*Irving Levin Associates, cited in New York Times, April 8, 2016
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MFC: A Quality Healthcare Provider Well-Positioned for Growth
Majority ownership in four specialty surgical hospitals and one ambulatory surgery center • Specialty Surgical Hospitals: 42 operating rooms and 127 overnight rooms
• Ambulatory Surgery Center: 2 operating rooms and 1 procedure room
2015 Revenue: US$308.8 million
2015 Income from Operations: US$74.7 million
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MFC Specialty Surgical Hospitals
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1 1Specialty surgical hospitals have
consistently demonstrated HIGHER PATIENT SATISFACTION
ratings resulting from HIGHER QUALITY OF CARE RECEIVED
Our physician owned hospitals benefit from direct physician involvement in
facility management resulting inSUPERIOR PROCESSES AND EFFICIENCIES
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*Letter of intent in place to acquire hospital operations
FacilityOperating
SinceAcquired Operating Rooms Overnight Rooms Square Feet
Arkansas Surgical Hospital 2005 2012 11 41 126,000
Oklahoma Spine Hospital 1999 2005 7 25 61,000
Black Hills Surgical Hospital 1997 2004 11 26 75,000
Sioux Falls Specialty Hospital 1985 2004 13 35 76,000
Unity Medical and Surgical Hospital* 2009 2016 6 29 50,000
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Unemployment Rate (%)1 U.S. South Dakota Oklahoma Arkansas
2015 5.0 2.9 4.1 4.7
2014 5.6 3.3 3.9 5.7
65 and Over (% of population)2
2014 14.5 15.3 14.5 15.7
Situated in geographic regions that have proven to be resilient against challenging economic environments
MFC physicians and staff are integral part of our success, they provide patients with innovative treatments and optimal service
1 Source: The Bureau of Labor Statistics of the US Department of Labor.
2 Source: U.S. Census Bureau, Population Estimates as of July 1, 2014. Release Date: June 2015.
Well-Situated in Current Markets
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Unity Medical and Surgical HospitalMishawaka, Indiana
Healthgrades: 5 Star rating in Patient Safety and Outstanding Patient Experience
Indiana Hospital Association Coalition of Care: 6 awards
The only hospital in Northern Indiana and Southern Michigan (Michiana) to
receive a 5 Star ranking from CMS
Becker’s: 150 Great Places to Work in Healthcare
Women’s Choice Award 2015: America’s 100 Best Hospitals for Patient
Experience
Top 1% nationally in overall patient satisfaction and #1 in the state of Indiana
#4 nationally in Value Based Purchasing score 2014
HCAHPS score in top 5%
Letter of intent in place to
purchase (72% ownership in PAM), 62%
Can be purchased over 3 years (all but 4% of the remaining ownership in PAM),
21%
Remaining PAM ownership, 3%
Remaining ownership held by practicing physicians directly in Unity,
14%PAM*ownership, 86%
* Physicians ASC Management, current majority owners of Unity
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Strict Acquisition Criteria
Accretive metrics
Strong operating performance
Balanced composition of physicians
Attractive markets (demographics, location)
Change pic to something less similar
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FINANCIALREVIEW
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Factors Driving Our Results
Revenues
Case Mix
Case Counts
Payor Mix
Ancillary Services
Levelof
Revenue
Operating Margins
Salaries & Benefits
Drugs & Supplies (incl. implants)
General & Administrative
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Blue Cross/Blue Shield
Medicare/Medicaid
WorkersCompensation
Other Private Insurance
Other
MFC Payor Mix – 2015
33%
36%
9%
14%
8%
GROSS BILLING NET REVENUE
33%
27%
10%
19%
11%
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(US$ millions, except where noted otherwise)
Q2 2016 Q2 2015 Change %
REVENUE 76.7 73.6 4.2%
INCOME FROM OPERATIONS* 13.8 16.0 (13.9%)
OPERATING MARGIN 17.9% 21.7% (17.1%)
CASH AVAILABLE FOR DISTRIBUTION (C$ MILLIONS)
10.5 12.1 (13.2%)
PAYOUT RATIO 82.8% 72.8% 13.7%
Operating Results – Q2 2016
* Based on income from operations, which is income before interest expense, gains or losses on foreign currency translation and other non-operating income and expenses.
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$257.0
$187.4
$50.5
$116.0
$69.4$34.2
$39.3
Strong Financial Position – Q2 2016
Current Assets Total
Liabilities
Total EquityNon-Current Assets
Cash & Cash Equivalents, Short-Term Investments
Subsidiary Debt (including current portion)
Corporate Level Debt
Other Current AssetsOther Liabilities
Consolidated Balance Sheet(US$ millions)
3.4xCurrent Ratio
52.4%Net Debt/Equity
2.6xSubsidiary Debt Coverage
(LTM)
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31.2 31.534.4 35.3 35.233.8
37.840.8 41.4
45.9
33.335.7
40.843.3
51.9
2011 2012 2013 2014 2015
76.72015
PAYOUT RATIO*
%
83.3%92.3%
(C$ millions)
Distributions Cash Available for Distribution (including realized gains/losses on FX forward contracts)
84.3%Payout Ratio*
*Including realized gains/losses of FX forward contracts
Strong Cash Flow
Cash Available for Distribution (Excluding realized gains/losses on FX forward contracts)
85.2% 76.7%
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Key Strengths
• Well-located facilities providing stable cash flows
• Favorable industry growth drivers
• Experienced, entrepreneurial management team
• Resources in place to execute on growth strategy
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Board of Directors
Marilynne Day-Linton, CPA, CA Chair of the Board of Directors
Irving Gerstein, C.M., O.OntCorporate Director
David Bellaire Senior Advisor, Bain & Company
Dale Lawr, CPA, CA (Ontario) & CPA (Illinois)Corporate Director
John PerriPartner, Dorchester Capital, LLC
Stephen Dineley, FCPA, FCA Corporate Director
Jeffrey LozonCorporate Director
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Capital Markets Profile* (as at August 9, 2016)
Stock Symbol: TSX: DR
Shares Outstanding: 31 million
Price: $21.50
52-Week Low / High: $12.75/$22.66
Market Capitalization: $667.5 million
Annualized Distribution (per share): $1.125
Current Yield: 5.2%
Payout Ratio (TTM): 82.8%
*All figures in $Canadian