Common use of LEASE COMMITMENTS Clause in Contracts

LEASE COMMITMENTS. Certain of the Company's hospital and medical office facilities and equipment are held under operating or capital leases which expire through 2017 (See Note 8). Certain of these leases also contain provisions allowing the Company to purchase the leased assets during the term or at the expiration of the lease at fair market value. A summary of property under capital lease follows: DECEMBER 31 1997 1996 - - - Land, buildings and equipment........................... $27,712,000 $27,243,000 Less: accumulated amortization.......................... 20,592,000 17,371,000 $7,120,000 $9,872,000 =========== =========== Future minimum rental payments under lease commitments with a term of more than one year as of December 31, 1997, are as follows: YEAR CAPITAL LEASES - - - 1998.................................................... $4,399,000 1999.................................................... 2,807,000 2000.................................................... 1,309,000 2001.................................................... 133,000 2002.................................................... -- Later Years............................................. -- Total minimum rental.................................. $8,648,000 Less: Amount representing interest...................... 628,000 Present value of minimum rental commitments............. 8,020,000 Less: Current portion of capital lease obligations...... 3,998,000 Long-term portion of capital lease obligations.......... $4,022,000 ========== OPERATING LEASES $21,458,000 20,090,000 16,512,000 14,754,000 4,674,000 18,781,000 $96,269,000 =========== Capital lease obligations of $3,059,000, $1,902,000 and $4,961,000 in 1997, 1996 and 1995, respectively, were incurred when the Company entered into capital leases for new equipment.

LEASE COMMITMENTS. Certain of the Company's hospital and medical office facilities and equipment are held under operating or capital leases which expire through 2017 2013 (See Note 8). Certain of these leases also contain provisions allowing the Company to purchase the leased assets during the term or at the expiration of the lease at fair market value. A summary of property under capital lease follows: DECEMBER 31 1997 31, ----------------------- 1996 - - - 1995 ----------- ----------- Land, buildings and equipment........................... $27,712,000 .......................... $27,243,000 $27,415,000 Less: accumulated amortization.......................... 20,592,000 ......................... 17,371,000 12,867,000 ----------- ----------- $ 9,872,000 $7,120,000 $9,872,000 14,548,000 =========== =========== Future minimum rental payments under lease commitments with a term of more than one year as of December 31, 19971996, are as follows: YEAR CAPITAL LEASES OPERATING LEASES - - - ---- ----------- ----------- 1997................................................... $ 5,216,000 $23,145,000 1998.................................................... $4,399,000 ................................................... 3,094,000 20,266,000 1999.................................................... 2,807,000 ................................................... 1,934,000 18,668,000 2000.................................................... 1,309,000 ................................................... 1,248,000 15,131,000 2001.................................................... 133,000 2002.................................................... -- ................................................... 130,000 13,373,000 Later Years............................................. -- ............................................ Total minimum rental.................................. ................................. -- ----------- $8,648,000 11,622,000 7,587,000 ----------- $98,170,000 Less: Amount representing interest...................... 628,000 Present value of minimum rental commitments............. 8,020,000 Less: Current portion of capital lease obligations...... 3,998,000 Long-term portion of capital lease obligations.......... $4,022,000 ..................... 1,080,000 =========== OPERATING LEASES $21,458,000 20,090,000 16,512,000 14,754,000 4,674,000 18,781,000 $96,269,000 Present value of minimum rental commitments............ ----------- 10,542,000 Less: Current portion of capital lease obligations..... Long-term portion of capital lease obligations......... 4,643,000 ----------- $ 5,899,000 =========== Capital lease obligations of $3,059,0001,902,000, $1,902,000 4,961,000 and $4,961,000 4,654,000 in 19971996, 1996 1995 and 19951994, respectively, were incurred when the Company entered into capital leases for new equipment.