This document is dated as of July 25, 2019

SPECIAL NOTE CONCERNING FORWARD-LOOKING STATEMENTS. Certain of the

discussions included in the following document may include certain “forward-looking statements”
which involve known and unknown risks and uncertainties inherent in the operation of healthcare
facilities. Actual actions or results may differ materially from those discussed below. Specific
factors that might cause such differences include competition from other healthcare facilities in
the service area of NYU Langone Hospitals (“NYULH”) facilities, federal and state regulation of
healthcare providers, and reimbursement policies of the state and federal governments and
managed care organizations. In particular, statements preceded by, followed by or that include the
words “believes,” “estimates,” “expects,” “anticipates,” “plans,” “intends,” “scheduled” or other
similar expressions are or may constitute forward-looking statements.

QUARTERLY REPORT
(UNAUDITED FINANCIAL
INFORMATION)
FOR THE NINE MONTHS
ENDING MAY 31, 2019

Concerning

NYU Langone Hospitals

The information in this report

has been provided by

NYU Langone Hospitals

 NYU LANGONE HOSPITALS
QUARTERLY REPORT
(UNAUDITED FINANCIAL INFORMATION)
FOR THE NINE MONTHS ENDING MAY 31,2019

• MANAGEMENT’S DISCUSSION & ANALYSIS ........................................................ 3

• STATEMENT OF FINANCIAL POSITION............................................................... 12

• STATEMENT OF OPERATIONS ............................................................................... 13

• STATEMENT OF CHANGES IN NET ASSETS ....................................................... 14

• STATEMENT OF CASH FLOWS ............................................................................... 15

• UTILIZATION STATISTICS ....................................................................................... 16

• PAYOR MIX BY DISCHARGES ................................................................................. 17

 NYU LANGONE HOSPITALS
MANAGEMENT’S DISCUSSION & ANALYSIS
OF
RECENT FINANCIAL PERFORMANCE
FOR THE NINE MONTHS ENDING MAY 31, 2019

Presented below is Management’s discussion and analysis of NYULH’s financial performance for
the nine-month period ending May 31, 2019.

SUMMARY OF OPERATIONS FOR THE NINE MONTHS ENDING MAY 2019 AND 2018

Results from Operations

For the nine months ended May 31, 2019 and May 31, 2018, NYULH recorded a gain from
operations of $289.8 million or a 7.8% operating margin compared to a gain of $98.3 million or
3.1% operating margin for the comparable prior period. Management attributes the increase in
financial performance in the nine months ended May 31, 2019 compared to the prior period to
approximately $162.8 million in other sources of revenue (described below) and improvement in
operations (growth in patient care activities and cost containment measures implemented by
management). Included in other sources is $66.3 million attributable to the demutualization of
NYULH’s prior malpractice insurer, Medical Liability Mutual Insurance Company (MLMIC), a
$62.4 million settlement with a union for a recoupment of benefit overpayments made in prior
years and a $34.1 million pledge payment received from a donor .

Net patient service revenue totaled $3.3 billion for the nine months ending May 31, 2019, 48.9%
from inpatient operations and 51.1% from outpatient operations. This represents a $298.4 million
or 10.0% increase over the nine months ending May 31, 2018. Management attributes the increase
in net patient service revenue primarily to growth in volume and patient acuity.

Net patient service revenue attributable to inpatient services increased by $147.0 million for the
nine-month period ending May 31, 2019 or by 10.1% compared to the comparable prior period.
NYULH discharges, excluding routine newborn, totaled 48,842 for the nine months ended May
31, 2019, higher by 2,111 discharges than the comparable prior period of 46,731 discharges. The
case mix index through May 31, 2019 was 1.85 compared to comparable prior period of 1.81.

Net patient service revenue attributable to outpatient services increased by $151.5 million for the
nine-month period ending May 31, 2019 or by 10.0% compared to the comparable prior period.
Management attributes this growth in net outpatient service revenue primarily to increased volume
arising from the continued expansion of the NYU School of Medicine (the “NYUSoM”) Faculty
Group Practice (the “FGP”). Emergency room visits, excluding admissions, totaled 116,820 visits,
an increase of 8,344 visits or 7.7% over the comparable prior period. Ambulatory services at the
Perlmutter Clinical Cancer Center totaled 278,217 visits, an increase of 11,700 or 4.4% compared
to the same period ended May 31, 2018. Ambulatory surgery, including cardiac catheterization
and electrophysiology totaled 53,438 visits; an increase of 4,737 or 9.7% higher than the
comparable prior year period.

Grants and sponsored programs for the nine months ended May 31, 2019 totaled $16.5 million,
representing a decline of 34.2% compared to comparable prior period of $25.1 million.
Management attributes the decline to a decrease in revenue related to the DSRIP program (see
3
“Delivery System Reform Incentive Payment (DSRIP)” section below). DSRIP revenue totaled
$14.9 million, 40% lower compared to the comparable prior period of $24.8 million. The DSRIP
program is a five-year program structured with lower payments to providers in the later years, and
it is currently in its final year covering the period April 1, 2019 to March 31, 2020.

NYULH recorded endowment distribution and gain from short-term investments of $16.8 million
for the nine months ending May 31, 2019, representing an increase of 19.8% compared to the
comparable prior year of $14.0 million primarily due to a favorable return on investments.

Operating expenses for the nine months ended May 31, 2019 increased by $308.6 million or 10.0%
to $3.4 billion, compared with $3.1 billion for the nine months ending May 31, 2018. Salaries and
wages totaled $1.1 billion, an increase of $60.1 million or 5.9% higher than the comparable prior
period. Employee benefits expense was $406.6 million, a $37.9 million increase or 10.3% higher
compared to the prior period primarily due to the increase in overall staffing and usage of medical
and other employee benefits. Supplies and other expenses totaled $1.6 billion, an increase of
$137.5 million or 9.3%. Management attributes these increases primarily to continued investment
in ambulatory expansions, investment in the liver, heart and lung transplant program, increases in
complexity of medical and surgical cases, increased purchased services related to growth in patient
care activities, increased support to the NYUSoM attributable to the FGP’s continued growth and
operations, and increased pharmaceutical costs associated with infusion volume and usage of
higher cost drugs at the Perlmutter Cancer Center. Depreciation, amortization and interest
increased by $73.0 million or 32.5%, due primarily to commencement of depreciation for the
opening of the Kimmel Pavilion.

The gain from operations and the other changes in unrestricted net assets recorded (described
below) resulted in a $210.7 million net increase in unrestricted net assets for the nine months
ending May 31, 2019:

• $33.4 million, net equity transfer from related organizations mainly attributable to sale of
a senior housing facility (see “Sale of a Senior Housing Facility” below);
• $18.2 million in net assets released from restrictions for hazard mitigation (following
satisfaction of certain requirements related to Superstorm Sandy FEMA grants);
• $14.1 million in net assets released from restrictions for capital purposes;
• $4.2 million in grants for capital asset acquisitions;
• $1.8 million in unrealized investment return primarily attributable to market results in the
underlying asset portfolio;
• $1.2 million in other items;
• $(37.5) million in mission support payment to the NYUSoM, compared to $50.0 million
transferred to the NYUSoM during the comparable prior year period; and
• $(114.5) million in changes and other components of pension and postretirement costs
mainly attributable to a decrease in the pension benefit obligation discount rate of the
NYULH’s retirement plan.

4
STATEMENT OF FINANCIAL POSITION HIGHLIGHTS – MAY 31, 2019

As of May 31, 2019, cash and investments totaled $989.4 million, an increase of $250.7 million
or 33.9% as compared to fiscal year ended August 31, 2018. Days cash on hand increased to 86
days, as compared to 67 days at August 31, 2018. The increase in cash from August 31, 2018 is
primarily the result of improvement in overall patient care operations in addition to a $66.3 million
demutualization payout from MLMIC Insurance Company and $40.4 million from the sale of the
senior housing facility and a $34.1 million pledge payment, which was partially offset by the $35.8
million semi-annual debt repayment.

As of May 31, 2019, an aggregate of approximately $117.9 million was owed to the Hospital from
affiliated parties related to intercompany balances. Of this amount, $18.4 million was owed by
NYUSoM and $99.5 million was owed by NYU Langone Health System (“the System”), of which
$86.3 million was advanced to NYU Winthrop Hospital (“NYU Winthrop”) based on the
affiliation loan agreement with that entity. As noted below (see “Winthrop Affiliation”),
management anticipates that amounts owed by NYU Winthrop will be forgiven at the time of the
planned merger of NYU Winthrop into NYULH.

The days revenue in patient accounts receivable equated to 45 days at May 31, 2019, 4 days shorter
compared to 49 days at August 31, 2018. Days in accounts payable decreased to 71 days as of
May 31, 2019, as compared to 81 days at August 31, 2018.

At May 31, 2019, NYULH had existing lines of credit with three commercial banks with an
aggregate available amount of $500.0 million. Interest is payable on each of these lines of credit
at LIBOR plus a spread of 60-70 basis points. As of May 31, 2019, total draws of $311.5 million
were outstanding on these lines of credit.

CURRENT ACTIVITIES

Winthrop Affiliation

On April 1, 2017, the System became the sole member of Winthrop-University Hospital
Association, now known as “NYU Winthrop”, a 591-bed inpatient acute care facility located in
Mineola, Nassau County. NYU Winthrop is not a member of the Obligated Group. The System
has committed to expend at least $100 million through a subordinated, non-interest bearing loan
to NYU Winthrop to construct projects on the campus of NYU Winthrop and realize cost
efficiencies. In September and October of 2017, the parties entered into two agreements pursuant
to which the System agreed to loan NYU Winthrop $48.1 million for equipment purchases and
renovations and $45.0 million for electronic medical record implementation. NYULH agreed to
loan these amounts to the System, and as of May 31, 2019, has advanced $86.3 million on these
commitments.

Pursuant to the terms of the Affiliation Agreement, the second phase of this affiliation, the full
asset merger of NYU Winthrop with and into NYULH, is to occur no later than April 1, 2022. On
November 13, 2018, the NYU Winthrop board voted to accelerate the merger to on or about August
2019, and the NYULH and Health System Boards approved such action on November 26, 2018.
Regulatory approval for the merger has been obtained, and the merger is expected to be
implemented on or about August 1, 2019, at which time the loans will be forgiven. Based on the
5
audited financial statements of NYU Winthrop and its Subsidiaries, for the fiscal year ended
August 31, 2018, total operating revenues were $1.7 billion and total assets were $1.4 billion. The
financial statements of NYU Winthrop and its Subsidiaries for the fiscal year ended August 31,
2018 are on file at wwww.emma.msrb.org.

Increase in Medical School Payments

NYUSoM experienced an increase in research space costs due to the replacement and expansion
of research space following Superstorm Sandy. As a result, NYULH’s direct mission support
payment to the NYUSoM was increased to $50.0 million per year from fiscal year 2015 and has
remained at that level to cover these losses. As of May 31, 2019, $37.5 million direct mission
support had been paid to NYUSoM.

In addition, the FGP of NYUSoM has expanded into Long Island and other areas, and the historic
level of subsidy to the FGP for joint program support has increased. The FGP employs the
physicians constituting approximately 65% of the active medical staff of NYULH. The FGP
expansion has resulted in material incremental costs for salary, rent, and recruitment. To cover
the cost of expansion as well as other support for the clinical, research and education missions,
NYULH has provided, for the nine-month period ending May 31, 2019, support of $448.4 million
recorded in supplies and other expenses within the Statement of Operations. This is an increase of
$34.3 million or 8.3% more than the comparable prior period of $414.1 million. This is in addition
to the $37.5 million direct mission support to NYUSoM. Management believes this investment
has been more than offset by incremental growth as NYULH’s market share has expanded.

Management’s current strategic plan anticipates that additional NYULH funding for incremental
FGP costs should become available from expanded ambulatory growth and improved operations
as integration of the Brooklyn Campus, NYU Winthrop and the Manhattan Campus
continues. Although NYULH is not obligated to increase funding to the NYUSoM absent
agreement of its Chief Executive Officer, management believes that given the close
interconnection between NYULH and the NYUSoM and the importance of the NYUSoM to the
Hospital’s strategic plans, NYULH may decide to increase future funding to the NYUSoM. All
such transfers would be consistent with the requirements of the Master Trust Indenture.

Other Discussions

NYULH is also considering affiliating with other acute care hospitals located outside of Manhattan
in areas where NYULH believes that there may be a sufficient number of NYULH-affiliated
physicians to support such an affiliation. Other than the System affiliation with NYU Winthrop
noted above, no additional letters of intent or other binding documents have been executed in
connection with such potential affiliations, and there can be no assurance any affiliations will be
completed.

6
Sale of a Senior Housing Facility

NYU Langone Health System acquired control of a senior housing facility, in connection with the
merger of the former Lutheran Medical Center into NYULH. Upon the sale of the facility on
November 7, 2018, NYULH received $40.4 million and recorded a $7.0 million liability relating
to indemnification obligations for the property. Thus, the net gain from sale of the facility assets
was approximately $33.4 million.

Delivery System Reform Incentive Payment (“DSRIP”)

NYULH is the lead hospital in the NYU Langone Performing Provider System (“NYU Langone
PPS”, formerly known as NYU Lutheran PPS and Brooklyn Bridges PPS), a network of hospitals,
primary care practices and other healthcare providers participating in DSRIP. DSRIP is a New
York State initiative to restructure the health care delivery system by reinvesting in the Medicaid
program, with the primary goal of reducing avoidable hospital use by 25% over five years (April
1, 2015 – March 31, 2020). After Lutheran Medical Center (“Lutheran”) merged into NYULH,
NYULH met the criteria of a safety net provider to participate as a performing provider in DSRIP,
because it meets the percentage requirements for Medicaid patients (35% for outpatient and 30%
for inpatient). In 2015 and prior to the merger of Lutheran into NYULH, the DSRIP program
announced that approximately $127.8 million had been allocated to Lutheran, as lead hospital of
the NYU Langone PPS. To be eligible to receive the full amount of this allocation, the NYU
Langone PPS must meet certain benchmarks and performance metrics over five years. As of the
third quarter of fiscal year 2019 ending May 31, 2019, $14.9 million was recorded as grants
revenue within the Statement of Operations. To date the NYU Langone PPS has exceeded its
performance requirement, and NYULH has received $81.9 million in cash of the prospective
$127.8 million. However, there can be no assurance such requirements will continue to be satisfied
or that the remainder will become available to NYULH.

UPDATE ON MAJOR CONSTRUCTION PROJECTS

NYULH is currently considering both near term and longer-term enhancements to the Brooklyn
Campus and, pending completion of the Winthrop merger, the Winthrop campus. In addition,
management is developing long-range plans for both campuses and the Cobble Hill Emergency
Department (discussed further below) that are currently expected to include new construction or
substantial renovation anticipated to occur over the next ten years. Management currently
anticipates that such costs would be funded from income generated from operations and additional
debt. Management is in the early stages of considering a potential borrowing to fund a portion of
these costs, although board approval has not yet been sought for any borrowing. Any borrowing
in connection with such plans would be made in compliance with the requirements of the Master
Trust Indenture. Completion of the long-range plans for both campuses and the Cobble Hill
Emergency Department is dependent on internal and external approvals and is subject to market
conditions and other factors.

Cobble Hill Emergency Department (“ED”)

NYULH currently operates the Cobble Hill ED pursuant to a sublease from Fortis Property Group,
LLC (“Fortis”), which is developing the former Long Island College Hospital campus for
residential purposes. Pursuant to agreements among NYULH, Fortis and the State University of
7
New York (“SUNY”), once demolition and remediation of adjacent premises is completed, SUNY
is expected to deed the cleared site to NYULH at no cost, and NYULH intends to construct a new
ED as well as ambulatory facilities. Fortis has substantially completed demolition and is preparing
the required documentation prior to closing and property transfer, currently projected to occur in
late summer or fall of 2019. Once turnover is complete, the schedule of construction will be
developed.

Superstorm Sandy Update

New York University, on behalf of NYULH, has initiated lawsuits against its primary insurer,
Factory Mutual Insurance Company, and Turner Construction Company to recover additional
insurance proceeds, but the ultimate outcome cannot be determined at this time and therefore no
revenue relating to these lawsuits has been recorded for the ten months ended May 31, 2019.

8
 NYU LANGONE HOSPITALS
NOTES TO FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDING MAY 31, 2019

NOTE 1: FINANCIAL INFORMATION

The financial information furnished herein is unaudited and thus is subject to

change; however, in the opinion of management, the information reflects all
adjustments that are necessary to fairly state the financial position of NYULH, and
the results of its operations and changes in its unrestricted net assets for the interim
periods indicated.

NYULH presumes that users of this interim financial information have read or have
access to NYULH audited financial statements and that the adequacy of additional
disclosure needed for a fair presentation may be determined in that context. The
Financial Statements of NYULH for the fiscal year ended August 31, 2018 are on
file at www.emma.msrb.org and the information contained therein is hereby
incorporated in this Quarterly Report.

Patient volumes and net operating revenues are subject to seasonal variations
caused by a number of factors, including, but not necessarily limited to, seasonal
cycles of illness, climate and weather conditions, vacation patterns of both hospital
patients and admitting physicians and other factors relating to the timing of elective
hospital procedures. Interim operating results are not necessarily representative of
operations for a full year for various reasons, including levels of occupancy and
other patient volumes, interest rates, unusual or non-recurring items and other
seasonal fluctuations. These same considerations apply to all year-to-year
comparisons.

NOTE 2: BASIS OF PRESENTATION

The accompanying financial statements have been prepared in accordance with

accounting principles generally accepted in the United States applied on a basis
substantially consistent with that of the August 31, 2018 audited financial
statements of NYULH. They do not include all of the information and footnotes
required by accounting principles generally accepted in the United States for
complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included.

NOTE 3: INVESTMENTS AND ASSETS LIMITED AS TO USE

Investments and Assets limited as to use consist of unrestricted assets and assets
whose use has been restricted to satisfy certain debt obligations, respectively. These
assets include cash and cash equivalents and marketable securities classified as
trading.

9
NOTE 4: USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles

generally accepted in the United States requires management to make estimates and
assumptions that affect the reported amounts of assets, including estimated
uncollectible accounts receivable for services to patients and the valuation of
investments, and liabilities including estimated settlements with third party payors
and malpractice insurance liabilities, and disclosures of contingent assets and
liabilities at the date of the financial statements. Estimates also affect the amounts
of revenue and expenses reported during the period. There is at least a reasonable
possibility that certain estimates will change by material amounts in the near term.
Actual results could differ from those estimates.

NOTE 5: NEW AUTHORITATIVE PRONOUNCEMENTS

In May 2014, the FASB issued Accounting Standard Update (“ASU”) 2014-9,
Revenue from Contracts with Customers. This standard implements a single
framework for recognition of all revenue earned from customers. This framework
ensures that entities appropriately reflect the consideration to which they expect to
be entitled in exchange for goods and services by allocating transaction price to
identified performance obligations and recognizing revenue as performance
obligations are satisfied. Qualitative and quantitative disclosures are required to
enable users of financial statements to understand the nature, amount, timing, and
uncertainty of revenue and cash flows arising from contracts with customers. The
standard is effective for fiscal years beginning after December 15, 2017. NYULH
has implemented the standard using the modified retrospective approach in fiscal
year 2019 and has concluded there will be no opening net asset impact.

In February 2016, the FASB issued ASU 2016-02, Leases. Under the new guidance,
lessees will be required to recognize the following for all leases (with the exception
of leases with a term of six months or less) at the commencement date: (a) a lease
liability, which is a lessee‘s obligation to make lease payments arising from a lease,
measured on a discounted basis; and (b) a right-of-use asset, which is an asset that
represents the lessee’s right to use, or control the use of, a specified asset for the
lease term. Under the new guidance, lessor accounting is largely unchanged. The
guidance requires a modified retrospective transition approach for leases existing
at, or entered into after, the beginning of the earliest comparative period presented
in the financial statements. The modified retrospective approach would not require
any transition accounting for leases that expire before the earliest comparative
period presented. A full retrospective transition approach is not permitted. This
guidance will be effective for NYULH beginning in fiscal year 2020 and early
application is permitted. NYULH is currently assessing the impact this standard
will have on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-14, Presentation of Financial

Statements for Not for Profit Entities. This standard marks the completion of the
first phase of a larger project aimed at improving not for profit financial reporting.
Under the new guidance, net asset reporting will be streamlined and clarified. The
existing three category classification of net assets (i.e., unrestricted, temporarily
10
 restricted, and permanently restricted) will be replaced with a simplified model that
combines temporarily restricted and permanently restricted into a single category
called “net assets with donor restrictions.” There will be new requirements to
reporting expenses and additional disclosures to highlight restrictions on the use of
resources that make otherwise liquid assets unavailable for meeting near term
financial requirements. The standard is effective for NYULH beginning in fiscal
year 2019 with early adoption permitted. In the year of application, not for profit
entities are required to disclose the nature of any reclassifications or restatements
resulting from the adoption and their effect, if any, on the change in the net asset
classes for each year presented. The requirements must be applied retrospectively;
however, entities can elect not to provide certain comparative disclosures in the
year of adoption. NYULH has implemented the standard retrospectively in fiscal
year 2019 and concluded that there will be no impact to fiscal year 2018 net asset
balances.

NOTE 6: RETIREMENT PLANS

NYULH provides pension and similar benefits to its employees through several
plans, including various multiemployer plans for union employees, a qualified
noncontributory defined benefit plan primarily for eligible nonunion employees of
NYULH and certain of its related organizations, and a nonqualified defined benefit
plan for certain executives. NYULH also provides pension and similar benefits to
certain employees through a defined contribution plan. NYULH funds the
noncontributory defined benefit plans in accordance with the minimum funding
requirement of the Employee Retirement Income Security Act of 1974 (“ERISA”),
plus additional amounts that NYULH may deem appropriate from time to time.
The Pension Protection Act of 2006 required certain changes to the minimum
funding requirements, among other provisions, commencing in 2008. Amounts
contributed to the defined benefit plans are based on actuarial valuations.
Contributions to union plans are based on union employee gross salary levels and
rates required under union contractual arrangements. Contributions to NYULH’s
defined contribution plan are generally based on percentages of annual salaries.

Pension expense included in the statements of operations and changes in net assets
for the ten months ending May 31, 2019 totaled $34.7 million.

11
 NYU Langone Hospitals
Statement of Financial Position
(Amounts In Thousands)

(Unaudited) (Audited)
May 31, 2019 August 31, 2018
Assets
Current assets:
Cash and cash equivalents $ 426,788 $ 265,383
Short-term investments 459,526 442,681
Assets whose use is limited 23,204 5,805
Patient accounts receivable, less allowances
for uncollectibles 578,964 535,637
Due from related organizations 22,170 17,234
Contributions receivable - current 32,198 55,365
Inventories 78,537 76,087
Commercial insurance recoveries receivable 4,207 4,207
Other current assets 159,469 120,938
Total current assets 1,785,063 1,523,337

Long-term investments 103,076 30,603

Assets whose use is limited 30,253 30,565
Contribution receivable - long term 22,777 23,166
Professional liabilities insurance recoveries receivable 61,905 61,905
Other assets 131,723 101,161
Due from related organizations less current portion 95,754 68,055
Property, plant and equipment, net 3,931,073 3,956,393
Total assets $ 6,161,624 $ 5,795,185

Liabilities and net assets

Current liabilities:
Current portion of long-term debt $ 48,610 $ 52,480
Accounts payable and accrued expenses 205,346 269,056
Accrued salaries and related liabilities 210,179 125,907
Accrued interest payable 36,504 14,817
Current portion of accrued postretirement liabilities 2,525 2,525
Deferred revenue 45,537 44,018
Due to related organization 5,251 26,765
Other current liabilities 68,810 64,176
Total current liabilities 622,762 599,744

Long-term debt, less current portion 2,218,301 2,209,540

Professional liabilities 61,905 61,905
Accrued pension liabilities 290,637 182,380
Accrued postretirement liabilities 91,100 79,290
Other liabilities 261,154 227,420
Total liabilities 3,545,859 3,360,279

Net assets:
Unrestricted 2,524,518 2,313,825
Temporarily restricted 78,903 109,238
Permanently restricted 12,344 11,843
Total net assets 2,615,765 2,434,906
Total liabilities and net assets $ 6,161,624 $ 5,795,185

12
 NYU Langone Hospitals
Statement Of Operations
For the Nine Months Ending May 31, 2019 and 2018
(Amounts In Thousands)

(Unaudited) (Unaudited)
May 31, 2019 May 31, 2018

Operating revenue
Net patient service revenue $ 3,271,790 $ 2,973,355
Grants and sponsored programs 16,531 25,123
Contributions 3,274 3,456
Endowment distribution and return on short-term investments 16,782 14,011
Other revenue 346,338 170,989
Net assets released from restrictions
for operating purposes 42,536 10,189
Total operating revenue 3,697,251 3,197,123

Operating expenses
Salaries and wages 1,086,747 1,026,608
Employee benefits 406,648 368,765
Supplies and other 1,616,148 1,478,655
Depreciation and amortization 229,422 165,905
Interest 68,454 58,923
Total operating expenses 3,407,419 3,098,856

Gain from operations 289,832 98,267

Other items
Grants for capital asset acquisitions 4,234 1,743
Other component of pension & postretirement costs (1,455) (1,958)
Investment return in excess of endowment distribution, net 1,782 2,851
Mission based payment to NYUSoM (37,500) (50,000)
Other 1,081 3,872
Excess of revenue over expenses 257,974 54,775

Changes in pension & postretirement obligations (113,055) 13,536

Contribution for capital acquisitions 41 1,103
Equity transfers from related organizations, net 33,398 12,612
Net assets released from restrictions for capital purpose 14,102 200
Net assets released from restrictions for hazard mitigation 18,233 26,864
Net change in unrestricted net assets $ 210,693 $ 109,090

13
 NYU Langone Hospitals
Statement of Changes in Net Assets
(Amounts In Thousands)
(Unaudited)

Temporarily Permanently
Unrestricted Restricted Restricted Total

Net assets at August 31, 2017 $ 2,003,693 $ 355,064 $ 13,073 $ 2,371,830

Excess of revenue over expenses 122,016 - - 122,016
Net assets released from restrictions for operations - (11,665) - (11,665)
Net assets released from restrictions for capital purposes 236,251 (236,251) - -
Net assets released from restrictions for hazard mitigation 34,385 (34,385) - -
Contributions for capital asset acquisitions 1,231 153 - 1,384
Change in pension and postretirement plans 41,825 - - 41,825
Net assets reclassification related to cy-pres 8,692 (5,759) (2,933) -
Gifts, bequests and other items - 41,232 1,501 42,733
Equity transfers from related organizations, net (134,268) - 202 (134,066)
Investment return, net - 1,895 - 1,895
Appropriation of endowment distribution - (1,046) - (1,046)
Total changes in net assets 310,132 (245,826) (1,230) 63,076
Net assets at August 31, 2018 $ 2,313,825 $ 109,238 $ 11,843 $ 2,434,906

Net assets at August 31, 2018 $ 2,313,825 $ 109,238 $ 11,843 $ 2,434,906

Excess of revenue over expenses 257,974 - - 257,974
Net assets released from restrictions for operations - (42,536) - (42,536)
Net assets released from restrictions for capital purposes 14,102 (14,102) - -
Net assets released from restrictions for hazard mitigation 18,233 (18,233) - -
Contributions for capital asset acquisitions 41 600 - 641
Change in pension and postretirement plans (113,055) - - (113,055)
Gifts, bequests and other items - 44,186 501 44,687
Equity transfers from related organizations, net 33,398 - - 33,398
Investment return, net - 328 - 328
Appropriation of endowment distribution - (578) - (578)
Total changes in net assets 210,693 (30,335) 501 180,859
Net assets at May 31, 2019 $ 2,524,518 $ 78,903 $ 12,344 $ 2,615,765

14
 NYU Langone Hospitals
Statement of Cash Flows
(Amounts In Thousands)

(Unaudited) (Audited)
For the nine For the year
month ended ended
May 31, 2019 August 31, 2018

Cash flows from operating activities

Change in net assets: $ 180,859 $ 63,076
Adjustments to reconcile change in net assets to
net cash provided by operating activities
Depreciation and amortization 229,422 236,166
Loss on disposal of property plant and equipment - 6,168
Patient care bad debt expense - 19,887
Write-offs of contributions receivable - 23
Gain on 1199 settlement (51,066) -
Post-retirement benefit adjustment 9,101 (4,497)
Pension benefit adjustment 103,954 (37,328)
Equity transfer from related organization (33,398) 134,268
Commercial insurance proceeds for capital (534) (5,558)
Contributions restricted for permanent investment and capital (13,838) (6,831)
Donated securities (51,026) (14,584)
Net unrealized and realized gain on investments (2,595) (10,027)
Changes in operating assets and liabilities:
Patient accounts receivable (43,327) (8,677)
Contributed receivable 23,556 8,243
Accounts payable & accrued expenses (13,035) 16,956
Accrued salaries and related liabilities 72,924 8,723
Accrued interest payable 21,687 (410)
Due to related organization (26,452) 78,606
Accrued pension obligation 4,303 (3,243)
Accrued postretirement obligation 2,709 3,834
Other operating asset, liabilities, and deferred revenue 39,562 (18,423)
Net cash provided by operating activities 452,806 466,372

Cash flows from investing activities

Net acquisitions of property, plant and equipment (257,694) (682,398)
Purchase of investment (86,723) (37,959)
Sale of investment - 201,536
Changes in assets limited as to use, net (17,087) 16,422
Commercial insurance proceeds for capital 534 5,558
Net cash used in investing activities (360,970) (496,841)

Cash flows from financing activities

Equity & endowment transfer from related organization 33,398 (134,268)
Contributions restricted for permanent investment and capital 64,864 21,415
Loan to related organizations (27,697) (58,555)
Proceeds from borrowing on line of credits 25,000 256,519
Principal payments on long-term debts (25,996) (55,604)
Net cash provided by financing activities 69,569 29,507

Net increase (decrease) in cash and cash equivalents 161,405 (962)

Cash and cash equivalents

Cash and cash equivalents at beginning of year 265,383 266,345
Cash and cash equivalents at end of year $ 426,788 $ 265,383

Supplemental information
Cash paid for interest $ 51,535 92,383
Non-cash acquisitions of property, plant and equipment (59,479) (3,117)
Assets acquired under capital leases 7,227 89,130

15
 NYU Langone Health
Utilization Statistics
For the Nine Months Ending May 31, 2019

NYU Langone NYU Langone

Manhattan Campus Brooklyn Campus Hospitals Manhattan Campus Brooklyn Campus Hospitals
May 2019 May 2019 May 2019 May 2018 May 2018 May 2018

Total Inpatient Discharges 36,425 19,122 55,547 34,317 19,439 53,756

Less: Routine Newborn 3,882 2,823 6,705 4,069 2,956 7,025
Total Discharges (Excluding Routine Newborn) 32,543 16,299 48,842 30,248 16,483 46,731

Total Patient Days 174,143 82,326 256,469 159,024 82,580 241,604

Less: Routine Newborn 8,596 6,082 14,678 8,971 6,483 15,454
Total Patient Days (Excluding Routine Newborn) 165,547 76,244 241,791 150,053 76,097 226,150

Average Length of Stay 5.1 4.7 5.0 5.0 4.6 4.8

Total Case Mix Index 2.04 1.48 1.85 2.04 1.39 1.81
Average Census 606 279 886 550 279 828
Percent of Occupancy 81% 82% 82% 84% 77% 82%

16
ER Visits (Treat & Release) 66,648 50,172 116,820 60,889 47,587 108,476
ER Observation 4,242 1,826 6,068 4,737 1,438 6,175
ER Admits 14,407 11,203 25,610 12,155 11,351 23,506
Cancer Center Visits 278,217 - 278,217 266,517 - 266,517
Ambulatory Surgery - Includes Cardiac Cath + EP 44,957 8,481 53,438 41,334 7,367 48,701
Clinics + Referred Amb 428,619 55,952 484,571 486,228 51,402 537,630
837,090 127,634 964,724 871,860 119,145 991,005
 NYU Langone Health
Payor Mix by Discharges (Excluding Routine Newborn)
For the Nine Months Ending May 31, 2019

NYU Langone NYU Langone

Manhattan Campus Brooklyn Campus Hospitals Manhattan Campus Brooklyn Campus Hospitals
May 2019 May 2019 May 2019 May 2018 May 2018 May 2018

Medicare 12,078 37% 6,053 37% 18,131 37% 10,849 36% 5,747 35% 16,596 36%
Medicaid 5,881 18% 6,973 43% 12,854 26% 5,431 18% 7,411 45% 12,842 27%
Commercial & Other 14,341 44% 3,036 19% 17,377 36% 13,757 45% 3,138 19% 16,895 36%
Self Pay 243 1% 237 1% 480 1% 211 1% 187 1% 398 1%

17
TOTAL 32,543 100% 16,299 100% 48,842 100% 30,248 100% 16,483 100% 46,731 100%