Risk Factors Update Summary

• Total indebtedness increased from $38.084 billion in 2022 to $39.593 billion in 2023.
• Change from "goals" to "objectives" in ESG reporting may impact stakeholder confidence and legal risks.
• Availability under senior secured cash flow credit facility increased from $1.935 billion to $3.487 billion.
• Transition from "goals" to "objectives" in ESG matters could lead to substantial costs and expenses.
• Economic conditions, including inflation, may negatively impact results of operations and debt repayment.
• Labor costs may continue to increase due to workforce competition, shortages, and inflation.
• Medicare now requires a % reduction in inpatient PPS Medicare payments, impacting hospital finances.
• Investment securities held decreased from $473 million to $564 million, with unrealized losses of $38 million.
• Changes in Medicaid fraction of Medicare DSH payment formulas may lower payments for hospitals.
• Under the HHVBP Model, home health agencies will receive payment adjustments based on performance.
• Quarterly dividends per share increased from $0.56 to $0.60, impacting stockholder returns.
• Cybersecurity incident affected 11 million patients, reinforcing cybersecurity protocols and monitoring.
• Failure to comply with privacy laws may result in enforcement actions and damage to reputation.
• Climate change presents risks such as increased intensity or frequency of hurricanes affecting operations.