Triad Reports Third Quarter Results

Triad Hospitals, Inc. (the "Company" or "Triad") (NYSE:TRI) announced consolidated financial results for the three and ninemonths ended September 30, 2005. For the three months, the Companyreported revenues of $1.2 billion; earnings before interest, taxes,depreciation, amortization, and other items ("adjusted EBITDA") of$171.2 million; net income of $46.3 million; income from continuingoperations of $54.6 million; diluted earnings per share ("EPS") of$0.53; and diluted EPS from continuing operations of $0.63. Theseresults include approximately $1.6 million after-tax ($0.02 perdiluted share) of additional expenses, net of estimated insuranceproceeds, related to Hurricanes Katrina and Rita, which impactedseveral of the Company's facilities in Louisiana, Mississippi, andTexas.

On a same-facility basis compared to the prior year three-monthperiod, inpatient admissions decreased 1.4%, adjusted admissionsdecreased 2.0%, and inpatient surgeries decreased 0.4%. Excluding theimpact of hurricanes, change in insurance admission criteria atcertain Alabama facilities, and a shift in admissions from an existingTriad facility to a new Triad facility, the Company estimates thatsame-facility inpatient admissions growth would have been slightlypositive. Patient revenue per adjusted admission increased 5.8%,patient revenues increased 3.7%, and revenues increased 3.9%. Revenuegrowth rates reflected the impact of both components of the Company'sself-pay discount policy (implemented October 2004 and April 2005);excluding self-pay discounts (which reduced net revenue relative towhat it would have been without the discounts), the Company estimatesthat patient revenue per adjusted admission would have increased10.5%, patient revenues would have increased 8.3%, and revenues wouldhave increased 8.3%. Same-facility results included facilities ownedfor the full third quarter of both years.

For the three months, the Company reported a provision fordoubtful accounts of $89.6 million, or 7.6% of revenue. Excluding theself-pay discounts of $48.6 million (which reduced both provision fordoubtful accounts as a percent of net revenue and net revenue relativeto what they would have been without the discounts), the Companyestimates that the provision for doubtful accounts would have been11.2% of revenue. The Company continued to include in the allowancefor doubtful accounts on its balance sheet approximately $15 millionbeyond what the Company's historical experience would require, inorder to reflect the potential for further deterioration in thecollectibility of receivables from uninsured patients.

For the three months, cash flow from operating activities was$124.8 million, or $149.5 million excluding cash interest payments of$7.7 million and cash tax payments of $17.0 million. The Company spent$90.8 million on capital expenditures and received proceeds of $220.4million from the issuance of common stock.

At September 30, cash and cash equivalents were $373.7 million,and the Company had $578 million available under its $600 millionrevolving line of credit, which was reduced by $22 million ofoutstanding letters of credit. Long-term debt outstanding was $1.7billion, and stockholders' equity totaled $2.9 billion. On October 4,2005, the Company finalized an agreement (effective October 1) toacquire a 65% interest in Montclair Baptist Medical Center inBirmingham, AL, for approximately $116 million; the Company used cashon hand to fund the transaction.

The Company reclassified as discontinued operations the resultsfrom Central Arkansas Hospital in Searcy, AR, in the third quarter,with all prior periods restated. The Company entered into a definitiveagreement to sell the hospital on September 14, 2005, forapproximately $16 million less net assumed liabilities. The loss fromdiscontinued operations includes a $4.7 million after-tax impairmentcharge related to the sale.

For the nine months, the Company reported revenues of $3.6billion; adjusted EBITDA of $545.4 million; net income of $171.4million; income from continuing operations of $174.4 million; dilutedEPS of $2.07; and diluted EPS from continuing operations of $2.11.

On a same-facility basis compared to the prior year nine-monthperiod, inpatient admissions increased 0.8%, adjusted admissionsincreased 0.3%, and inpatient surgeries increased 0.3%. Patientrevenue per adjusted admission increased 5.8%, patient revenuesincreased 6.2%, and revenues increased 6.1%. Revenue growth ratesreflected the impact of both components of the Company's self-paydiscount policy; excluding self-pay discounts (which reduced netrevenue relative to what it would have been without the discounts),the Company estimates that patient revenue per adjusted admissionwould have increased 9.3%, patient revenues would have increased 9.7%,and revenues would have increased 9.4%. Same-facility results includedfacilities owned for the full nine months of both years.

For the nine months, cash flow from operating activities was$351.2 million, or $490.6 million excluding cash interest payments of$62.6 million and cash tax payments of $76.8 million. The Companyspent $279.4 million on capital expenditures and $161.3 million onacquisitions during the nine months. The Company paid debt principalof $484.0 million, received proceeds of $520.0 million from theissuance of new debt, and received proceeds of $310.2 million from theissuance of common stock.

On October 18, 2005, the Company entered into a definitiveagreement to sell three hospitals to Signature Hospital, LLC, for $75million plus working capital: Gulf Coast Medical Center ("Gulf Coast")in Wharton, TX; Medical Park Hospital ("Medical Park") in Hope, AR;and Pampa Regional Medical Center ("Pampa") in Pampa, TX. The resultsfrom these hospitals will be reclassified as discontinued operationsbeginning in the fourth quarter of 2005, with all prior periodsrestated; the sale is expected to close in the fourth quarter of 2005.The Company expects to record a gain on the sale.

The Company updated its guidance for provision for doubtfulaccounts to approximately 7.9-8.1% of revenue in 2005 fromapproximately 7.7-8.2% of revenue. For the fourth quarter of 2005, theCompany expects the provision to be approximately 7.3-8.1% of revenue.This range reflects the expected impact of the Company's self-paydiscount policy, which reduces both revenue and the provision as apercent of net revenue in 2005 relative to what they would have beenwithout the discounts. Excluding the self-pay discount policy, theCompany expects the provision for doubtful accounts to beapproximately 10.9-11.1% of revenue in 2005, above its previousguidance of approximately 10.2-10.7% of revenue. For the fourthquarter of 2005, the Company expects the provision excluding discountsto be approximately 10.6-11.4% of revenue. Triad believes that theprovision will likely fluctuate for the remainder of 2005, evenpossibly outside of this range, based on evolving business conditionsand the effectiveness of Company actions in response, and this mayimpact 2005 EPS. The Company's current EPS guidance excludes anyimpact from reversing any or all of the $15 million that it continuesto include in the allowance for doubtful accounts on its balancesheet.

The Company also updated its guidance for 2005 diluted EPS fromcontinuing operations to approximately $2.82-2.84 from approximately$2.82-2.90. This guidance comprises diluted EPS from continuingoperations for the nine months ended September 30, 2005, of $2.13 andexpected diluted EPS from continuing operations for the fourth quarterof 2005 of $0.69-0.71; diluted EPS for the nine months is composed ofdiluted EPS excluding refinancing transaction costs of $2.17 less anegative impact for the nine months of approximately $0.04 related tothe sale of Gulf Coast, Medical Park and Pampa, which will bereclassified as discontinued operations beginning in the fourthquarter of 2005.

Beyond 2005, Triad expects to achieve annual EPS growth in themid-teens percent range (excluding the impact of expensing stockoptions, which the Company expects to commence January 1, 2006, inaccordance with Statement of Financial Accounting Standards ("SFAS")123(R)). The Company also expects to achieve further gradualimprovement over time, with occasional fluctuation, in its overallreturn on invested capital.

Triad will conduct a conference call at 9:00 am Eastern Time (8:00am Central Time) today, October 24, to discuss these results. Tolisten to the call, please call 800-818-5264, confirmation code6329471. International participants, please call 913-981-4910,confirmation code 6329471. This conference call will be simulcast onthe Internet via the Triad website at www.triadhospitals.com. Arecorded replay of the call will be available for 14 days at719-457-0820 or 888-203-1112, confirmation code 6329471.

Triad, through its affiliates, owns and manages hospitals andambulatory surgery centers in small cities and selected larger urbanmarkets. Excluding 4 hospitals that are held-for-sale, the Companycurrently operates 49 hospitals and 10 ambulatory surgery centers in15 states with approximately 8,845 licensed beds. In addition, throughits QHR subsidiary, the Company provides hospital management,consulting and advisory services to more than 180 independentcommunity hospitals and health systems throughout the United States.

This press release contains forward-looking statements based oncurrent management expectations. Numerous factors, including thoserelated to market conditions and those detailed from time-to-time inthe Company's filings with the Securities and Exchange Commission, maycause results to differ materially from those anticipated in theforward-looking statements. Many of the factors that will determinethe Company's future results are beyond the ability of the Company tocontrol or predict. These statements are subject to risks anduncertainties and, therefore, actual results may differ materially.Readers should not place undue reliance on forward-looking statements,which reflect management's views only as of the date hereof. TheCompany undertakes no obligation to revise or update anyforward-looking statements, or to make any other forward-lookingstatements, whether as a result of new information, future events orotherwise. This release contains certain financial information notderived in accordance with generally accepted accounting principles(GAAP), including adjusted EBITDA; the Company believes thisinformation is useful to investors and other interested parties; suchinformation should not be considered as a substitute for any measuresderived in accordance with GAAP, and may not be comparable to othersimilarly titled measures of other companies; reconciliation of thisinformation to the most comparable GAAP measure is included as anattachment to this release. All references to "Company", "Triad", and"Triad Hospitals, Inc." as used throughout this document refer toTriad Hospitals, Inc. and its affiliates.
Triad Hospitals, Inc.
Consolidated Statements of Operations
For the Periods Ended September 30, 2005 and 2004
Unaudited
(Dollars in millions, except for earnings per share)

For the three months ended
-------------------------------------------
2005 2004
----------- -----------
Amount Percentage Amount Percentage
--------- ----------- --------- ----------
Revenues $1,185.7 100.0% $1,082.2 100.0%


Salaries and benefits 505.7 42.6% 435.9 40.3%
Reimbursable expenses 12.2 1.1% 12.4 1.2%
Supplies 200.7 16.9% 179.2 16.6%
Other operating expenses 214.4 18.1% 201.8 18.6%
Provision for doubtful
accounts 89.6 7.6% 118.9 11.0%
Depreciation 50.6 4.3% 44.8 4.1%
Amortization 1.8 0.1% 1.6 0.2%
Interest expense 24.2 2.0% 26.4 2.4%
ESOP expense 3.7 0.3% 2.6 0.2%
(Gain) loss on sales of
assets (0.3) 0.0% 0.1 0.0%
------------- ------- ------------- -------
Total operating expenses 1,102.6 93.0% 1,023.7 94.6%
------------- ------- ------------- -------

Income from continuing operations
before minority interests,
equity in earnings and income
tax provision 83.1 7.0% 58.5 5.4%
Minority interests in
(earnings) loss of
consolidated entities (1.8) (0.2%) 1.6 0.1%
Equity in earnings of
affiliates 8.1 0.7% 7.2 0.7%
------------- ------- ------------ --------
Income from continuing
operations before income
tax provision 89.4 7.5% 67.3 6.2%

Income tax provision (34.8) (2.9%) (24.1) (2.2%)
------------- ------- ------------ --------

Income from continuing
operations 54.6 4.6% 43.2 4.0%

Income (loss) from
discontinued operations (8.3) (0.7%) 6.0 0.5%
------------- ------- ------------ --------

Net income $46.3 3.9% $49.2 4.5%
============= ======= ============ ========

Basic income per common share:
Continuing operations $0.64 $0.57
Discontinued operations $(0.10) $0.08
----------- -----------
Net $0.54 $0.65
=========== ===========

Diluted income per common share:
Continuing operations $0.63 $0.56
Discontinued operations $(0.10) $0.08
----------- -----------
Net $0.53 $0.64
=========== ===========


Shares used in earnings per
share calculations 84,822,808 75,491,073
Shares used in diluted
earnings per share
calculations 86,588,857 77,102,586


Triad Hospitals, Inc.
Reconciliation of Non-GAAP Financial Information
For the Periods Ended September 30, 2005 and 2004
Unaudited
(Dollars in millions)

For the three months ended
---------------------------------------
2005 2004
--------- ---------
Amount Percentage Amount Percentage
------------------- -------------------

Revenues $1,185.7 100.0% $1,082.2 100.0%

Salaries and benefits 505.7 42.6% 435.9 40.3%
Reimbursable expenses 12.2 1.1% 12.4 1.2%
Supplies 200.7 16.9% 179.2 16.6%
Other operating expenses 214.4 18.1% 201.8 18.6%
Provision for doubtful accounts 89.6 7.6% 118.9 11.0%
Equity in earnings of affiliates (8.1) (0.7%) (7.2) (0.7%)
------------------- -------------------
1,014.5 85.6% 941.0 87.0%
------------------- -------------------

Adjusted EBITDA (1) 171.2 14.4% 141.2 13.0%

Depreciation 50.6 4.3% 44.8 4.1%
Amortization 1.8 0.1% 1.6 0.2%
Interest expense 24.2 2.0% 26.4 2.4%
ESOP expense 3.7 0.3% 2.6 0.2%
(Gain) loss on sales of assets (0.3) 0.0% 0.1 0.0%
Minority interests in earnings
(loss) of consolidated entities 1.8 0.2% (1.6) (0.1%)
------------------- -------------------
81.8 6.9% 73.9 6.8%
------------------- -------------------

Income from continuing
operations before income tax
provision 89.4 7.5% 67.3 6.2%

Income tax provision (34.8) (2.9%) (24.1) (2.2%)
------------------- -------------------

Income from continuing
operations 54.6 4.6% 43.2 4.0%

Income (loss) from
discontinued operations (8.3) (0.7%) 6.0 0.5%
------------------- -------------------

Net income $46.3 3.9% $49.2 4.5%
=================== ===================

Basic income per common share:
Continuing operations $ 0.64 $0.57
Discontinued operations $(0.10) $0.08
--------- ---------
Net $0.54 $0.65
========= =========

Diluted income per common
share:
Continuing operations $ 0.63 $0.56
Discontinued operations $(0.10) $0.08
--------- ---------
Net $0.53 $0.64
========= =========


(1) Adjusted EBITDA is defined as earnings before interest
expense, income taxes, depreciation, amortization, ESOP expense,
(gain) loss on sales of assets, minority interests, and discontinued
operations. Adjusted EBITDA is commonly used by lenders and investors
to assess leverage capacity, debt service ability and liquidity. Many
of Triad's debt covenants use adjusted EBITDA, or a modification of
adjusted EBITDA, in financial covenant calculations. Adjusted EBITDA
is used by management to evaluate financial performance and resource
allocation for each facility and for Triad as a whole. Adjusted EBITDA
should not be considered as a measure of financial performance under
generally accepted accounting principles, and items excluded from
adjusted EBITDA are significant components in understanding and
assessing financial performance. Adjusted EBITDA should not be
considered in isolation or as an alternative to net income, cash flows
generated by operating, investing, or financing activities or other
financial statement data presented in the consolidated financial
statements as an indicator of financial performance or liquidity.
Because adjusted EBITDA is not a measurement determined in accordance
with generally accepted accounting principles and is thus susceptible
to varying calculations, adjusted EBITDA as presented may not be
comparable to other similarly titled measures of other companies.

Triad Hospitals, Inc.
Consolidated Statements of Operations
For the Periods Ended September 30, 2005 and 2004
Unaudited
(Dollars in millions, except for earnings per share)

For the nine months ended
-------------------------------------------
2005 2004
----------- -----------
Amount Percentage Amount Percentage
---------- ---------- ---------- ----------
Revenues $3,559.3 100.0% $3,217.3 100.0%


Salaries and benefits 1,470.9 41.3% 1,297.0 40.3%
Reimbursable expenses 38.8 1.1% 38.8 1.2%
Supplies 592.9 16.7% 522.2 16.2%
Other operating expenses 649.8 18.3% 590.2 18.4%
Provision for doubtful accounts 289.3 8.1% 341.1 10.6%
Depreciation 151.9 4.3% 130.5 4.1%
Amortization 4.8 0.1% 4.7 0.1%
Interest expense 77.7 2.2% 86.2 2.7%
Refinancing transaction costs 8.4 0.2% 76.0 2.4%
ESOP expense 10.9 0.3% 7.6 0.2%
Gain on sales of assets (0.8) 0.0% (0.2) 0.0%
--------------- ----- --------------- -----
Total operating expenses 3,294.6 92.6% 3,094.1 96.2%
--------------- ----- --------------- -----

Income from continuing
operations before minority interests,
equity in earnings and
income tax provision 264.7 7.4% 123.2 3.8%
Minority interests in
earnings of consolidated
entities (8.1) (0.2%) (1.1) 0.0%
Equity in earnings of affiliates 27.8 0.8% 17.4 0.5%
--------------- ----- --------------- -----
Income from continuing
operations before income
tax provision 284.4 8.0% 139.5 4.3%

Income tax provision (110.0) (3.1%) (53.0) (1.6%)
-------------- ------ -------------- ------

Income from continuing
operations 174.4 4.9% 86.5 2.7%

Income (loss) from
discontinued operations (3.0) (0.1%) 55.3 1.7%
------------- ------- --------------- -----

Net income $171.4 4.8% $141.8 4.4%
============= ======= =============== =====

Basic income per common share:
Continuing operations $ 2.16 $1.15
Discontinued operations $(0.04) $0.74
----------- -----------
Net $2.12 $1.89
=========== ===========

Diluted income per common share:
Continuing operations $ 2.11 $1.13
Discontinued operations $(0.04) $0.73
----------- -----------
Net $ 2.07 $1.86
=========== ===========


Shares used in earnings per
share calculations 80,909,570 74,894,196
Shares used in diluted
earnings per share
calculations 82,677,412 76,357,157


Triad Hospitals, Inc.
Reconciliation of Non-GAAP Financial Information
For the Periods Ended September 30, 2005 and 2004
Unaudited
(Dollars in millions)

For the nine months ended
--------------------------------------------------------
2005
---------
Reconciling
Amount Percentage Items Amount Percentage
--------------------------------------------------------

Revenues $3,559.3 100.0% $- $3,559.3 100.0%

Salaries and
benefits 1,470.9 41.3% - 1,470.9 41.3%
Reimbursable
expenses 38.8 1.1% - 38.8 1.1%
Supplies 592.9 16.7% - 592.9 16.7%
Other
operating
expenses 649.8 18.3% - 649.8 18.3%
Provision for
doubtful
accounts 289.3 8.1% - 289.3 8.1%
Equity in
earnings of
affiliates (27.8) (0.8%) - (27.8) (0.8%)
---------------------------------------------
3,013.9 84.7% - 3,013.9 84.7%
---------------------------------------------

Adjusted
EBITDA (1) 545.4 15.3% - 545.4 15.3%

Depreciation 151.9 4.3% - 151.9 4.3%
Amortization 4.8 0.1% - 4.8 0.1%
Interest
expense 77.7 2.2% - 77.7 2.2%
Refinancing
transaction costs - 0.0% 8.4 8.4 0.2%
ESOP expense 10.9 0.3% - 10.9 0.3%
Gain on sales
of assets (0.8) 0.0% - (0.8) 0.0%
Minority interests in
earnings of
consolidated
entities 8.1 0.2% - 8.1 0.2%
---------------------------------------------
252.6 7.1% 8.4 261.0 7.3%
---------------------------------------------

Income from
continuing
operations
before income
tax provision 292.8 8.2% (8.4) 284.4 8.0%

Income tax
provision (113.1) (3.2%) 3.1 (110.0) (3.1%)
---------------------------------------------

Income from
continuing
operations 179.7 5.0% (5.3) 174.4 4.9%

Income (loss)
from
discontinued
operations (3.0) (0.1%) - (3.0) (0.1%)
---------------------------------------------

Net income $176.7 4.9% $(5.3) $171.4 4.8%
=============================================

Basic income per common share:
Continuing operations $ 2.22 $(0.06) $ 2.16
Discontinued operations $(0.04) $ - $(0.04)
--------- --------------------
Net $ 2.18 $(0.06) $ 2.12
========= ====================

Diluted income per common share:
Continuing operations $ 2.17 $(0.06) $ 2.11
Discontinued operations $(0.04) $ - $ (0.04)
--------- --------------------
Net $2.13 $(0.06) $ 2.07
========= ====================


For the nine months ended
--------------------------------------------------------
2004
-------------
Reconciling
Amount Percentage Items Amount Percentage
----------------------------------------------------

Revenues $3,217.3 100.0% $- $3,217.3 100.0%

Salaries and
benefits 1,297.0 40.3% - 1,297.0 40.3%
Reimbursable
expenses 38.8 1.2% - 38.8 1.2%
Supplies 522.2 16.2% - 522.2 16.2%
Other
operating
expenses 590.2 18.4% - 590.2 18.4%
Provision for
doubtful
accounts 341.1 10.6% - 341.1 10.6%
Equity in
earnings of
affiliates (17.4) (0.5%) - (17.4) (0.5%)
-------------------------------------------------
2,771.9 86.2% - 2,771.9 86.2%
-------------------------------------------------

Adjusted
EBITDA (1) 445.4 13.8% - 445.4 13.8%

Depreciation 130.5 4.1% - 130.5 4.1%
Amortization 4.7 0.1% - 4.7 0.1%
Interest expense 86.2 2.7% - 86.2 2.7%
Refinancing
transaction
costs - 0.0% 76.0 76.0 2.4%
ESOP expense 7.6 0.2% - 7.6 0.2%
Gain on sales
of assets (0.2) 0.0% - (0.2) 0.0%
Minority
interests in
earnings of
consolidated
entities 1.1 0.0% - 1.1 0.0%
-------------------------------------------------
229.9 7.1% 76.0 305.9 9.5%
-------------------------------------------------

Income from continuing
operations
before income
tax provision 215.5 6.7% (76.0) 139.5 4.3%

Income tax
provision (81.2) (2.5%) 28.2 (53.0) (1.6%)
-------------------------------------------------

Income from
continuing
operations 134.3 4.2% (47.8) 86.5 2.7%

Income (loss)
from discontinued
operations 55.3 1.7% - 55.3 1.7%
-------------------------------------------------

Net income $189.6 5.9% $(47.8) $141.8 4.4%
=================================================

Basic income per common share:
Continuing operations $1.79 $(0.64) $1.15
Discontinued operations $0.74 $ - $0.74
--------- --------------------
Net $2.53 $(0.64) $1.89
========= ====================

Diluted income per common share:
Continuing operations $1.76 $(0.63) $1.13
Discontinued operations $0.73 $ - $0.73
--------- --------------------
Net $2.49 $(0.63) $1.86
========= ====================


(1) Adjusted EBITDA is defined as earnings before interest
expense, income taxes, depreciation, amortization, ESOP expense, gain
on sales of assets, minority interests, refinancing transaction costs,
and discontinued operations. Adjusted EBITDA is commonly used by
lenders and investors to assess leverage capacity, debt service
ability and liquidity. Many of Triad's debt covenants use adjusted
EBITDA, or a modification of adjusted EBITDA, in financial covenant
calculations. Adjusted EBITDA is used by management to evaluate
financial performance and resource allocation for each facility and
for Triad as a whole. Adjusted EBITDA should not be considered as a
measure of financial performance under generally accepted accounting
principles, and items excluded from adjusted EBITDA are significant
components in understanding and assessing financial performance.
Adjusted EBITDA should not be considered in isolation or as an
alternative to net income, cash flows generated by operating,
investing, or financing activities or other financial statement data
presented in the consolidated financial statements as an indicator of
financial performance or liquidity. Because adjusted EBITDA is not a
measurement determined in accordance with generally accepted
accounting principles and is thus susceptible to varying calculations,
adjusted EBITDA as presented may not be comparable to other similarly
titled measures of other companies.

Triad Hospitals, Inc.
Expenses as % of Net Revenue -
Pro Forma to Exclude Self-Pay Discounts(1)
For the Periods Ended September 30, 2005
Unaudited

For the For the
three nine
months months
ended ended
---------- -----------
Percentage Percentage
---------- ----------
Revenues 100.0% 100.0%


Salaries and benefits 41.0% 40.1%
Reimbursable expenses 1.0% 1.0%
Supplies 16.2% 16.2%
Other operating expenses 17.4% 17.7%
Provision for doubtful accounts 11.2% 10.9%
Equity in earnings of affiliates (0.7%) (0.8%)
---------- ----------

Adjusted EBITDA margin (2) 13.9% 14.9%

Depreciation 4.1% 4.2%
Amortization 0.1% 0.1%
Interest expense 2.0% 2.1%
Refinancing transaction costs 0.0% 0.2%
ESOP expense 0.3% 0.3%
Gain on sales of assets 0.0% 0.0%
Minority interests in earnings of consolidated
entities 0.2% 0.2%
---------- ----------
6.7% 7.1%

Income from continuing operations before income
tax provision 7.2% 7.8%

Income tax provision (2.8%) (3.0%)
---------- ----------

Income from continuing operations 4.4% 4.8%

Loss from discontinued operations (0.6%) (0.1%)
---------- ----------

Net income 3.8% 4.7%
========== ==========


(1) Revenues and provision for doubtful accounts are pro forma to
reflect the exclusion of self-pay discounts of $48.6 million for the
three months and $109.3 million for the nine months.

(2) Adjusted EBITDA is defined as earnings before interest
expense, income taxes, depreciation, amortization, ESOP expense, gain
on sales of assets, minority interests, refinancing transaction costs,
and discontinued operations. Adjusted EBITDA is commonly used by
lenders and investors to assess leverage capacity, debt service
ability and liquidity. Many of Triad's debt covenants use adjusted
EBITDA, or a modification of adjusted EBITDA, in financial covenant
calculations. Adjusted EBITDA is used by management to evaluate
financial performance and resource allocation for each facility and
for Triad as a whole. Adjusted EBITDA should not be considered as a
measure of financial performance under generally accepted accounting
principles, and items excluded from adjusted EBITDA are significant
components in understanding and assessing financial performance.
Adjusted EBITDA should not be considered in isolation or as an
alternative to net income, cash flows generated by operating,
investing, or financing activities or other financial statement data
presented in the consolidated financial statements as an indicator of
financial performance or liquidity. Because adjusted EBITDA is not a
measurement determined in accordance with generally accepted
accounting principles and is thus susceptible to varying calculations,
adjusted EBITDA as presented may not be comparable to other similarly
titled measures of other companies.

Triad Hospitals, Inc.
Consolidated Balance Sheets
Unaudited
(Dollars in millions)

September December
30, 31,
2005 2004
--------- ---------
Assets
Current assets
Cash and cash equivalents $373.7 $56.6
Accounts receivable less allowances for doubtful
accounts of
$274.6 at September 30, 2005 and $325.7 at
December 31, 2004 762.2 648.8
Inventories 122.0 113.2
Deferred income taxes 25.4 58.0
Prepaid expenses 48.4 41.3
Discontinued operations assets 17.9 95.6
Other 108.3 85.1
--------- ---------
1,457.9 1,098.6

Property and equipment, at cost:
Land 182.6 172.2
Buildings and improvements 1,728.9 1,465.5
Equipment 1,440.4 1,247.3
Construction in progress 202.0 311.9
--------- ---------
3,553.9 3,196.9
Accumulated depreciation (1,017.6) (891.6)
--------- ---------
2,536.3 2,305.3

Goodwill 1,226.0 1,202.7
Intangible assets, net of accumulated amortization 73.0 71.4
Investment in and advances to affiliates 197.2 198.9
Other 112.7 104.5
--------- ---------

Total assets $5,603.1 $4,981.4
========= =========

Liabilities and Equity
Current liabilities
Accounts payable $178.0 $139.3
Accrued salaries 128.0 117.3
Current portion of long-term debt 4.4 79.7
Discontinued operations liabilities 2.2 52.8
Other current liabilities 193.8 160.7
--------- ---------
506.4 549.8

Long-term debt 1,698.8 1,587.3
Other liabilities 162.8 138.8
Deferred taxes 210.1 218.3
Minority interests in equity of consolidated
entities 163.9 143.9

Stockholders' equity
Common stock 0.9 0.8
Additional paid-in capital 2,320.2 1,976.8
Accumulated other comprehensive loss (1.4) (1.7)
Unearned ESOP compensation (11.2) (13.8)
Accumulated earnings 552.6 381.2
--------- ---------
Total stockholders' equity 2,861.1 2,343.3
--------- ---------

Total liabilities and stockholders' equity $5,603.1 $4,981.4
========= =========

Triad Hospitals, Inc.
Consolidated Statements of Cash Flows
For the Periods Ended September 30, 2005 and 2004
Unaudited
(Dollars in millions)

For the three For the nine
months ended months ended
--------------- ---------------
2005 2004 2005 2004
------- ------- ------- -------
Cash flows from operating activities
Net income $46.3 $49.2 $171.4 $141.8
Adjustments to reconcile net income
to net cash provided by
operating activities:
Income from discontinued operations,
net of tax 8.3 (6.0) 3.0 (55.3)
Provision for doubtful accounts 89.6 118.9 289.3 341.1
Depreciation and amortization 52.4 46.4 156.7 135.2
ESOP expense 3.7 2.6 10.9 7.6
Minority interests 1.8 (1.6) 8.1 1.1
Equity in earnings of affiliates (8.1) (7.2) (27.8) (17.4)
(Gain) loss on sales of assets (0.3) 0.1 (0.8) (0.2)
Deferred income tax provision
(benefit) 20.4 (4.9) 25.3 (7.0)
Refinancing transaction costs - - 8.4 76.0
Non-cash interest expense 0.9 1.4 3.2 5.5
Non-cash stock option expense 0.8 0.2 1.4 0.9
Increase (decrease) in cash from
operating assets and liabilities -
Accounts receivable (120.4) (118.5) (379.7) (351.6)
Inventories and other assets (28.4) 5.1 (2.8) (27.5)
Accounts payable and other
current liabilities 55.4 43.4 73.0 11.8
Other 2.4 3.5 11.6 19.7
------- ------- ------- -------
Net cash provided by operating
activities 124.8 132.6 351.2 281.7

Cash flows from investing activities
Purchases of property and equipment (90.8) (113.7) (279.4) (330.4)
Distributions and advances from
affiliates 8.8 3.8 21.6 8.2
Proceeds received (paid) on disposals
of assets, net (0.6) 33.0 35.9 230.3
Acquisitions, net of cash acquired (6.0) (0.2) (161.3) (0.9)
Other (0.2) (0.1) (0.2) (0.1)
------- ------- ------- -------
Net cash used in investing
activities (88.8) (77.2) (383.4) (92.9)

Cash flows from financing activities
Payments of long-term debt (0.2) (16.6) (484.0) (748.9)
Proceeds from issuance of long-term
debt - - 520.0 675.0
Payment of debt issue costs - - (6.4) (9.1)
Payment of refinancing transactions
costs - - - (65.8)
Proceeds from issuance of common
stock 220.4 6.1 310.2 25.0
Contributions from minority partners,
net 10.2 3.1 9.5 9.4
------- ------- ------- -------
Net cash provided by (used in)
financing activities 230.4 (7.4) 349.3 (114.4)
------- ------- ------- -------

Change in cash and cash equivalents 266.4 48.0 317.1 74.4

Cash and cash equivalents at beginning
of period 107.3 40.6 56.6 14.2
------- ------- ------- -------

Cash and cash equivalents at end of
period $373.7 $88.6 $373.7 $88.6
======= ======= ======= =======

Interest payments 7.7 6.4 62.6 68.3
Income tax payments 17.0 15.1 76.8 81.8


Triad Hospitals, Inc.
Operating Data - Same-Facility (1)
Unaudited


For the three months ended
September 30,
--------------------------
2005 2004 Change
--------- --------- ------
Volume Statistics (2)
---------------------
Number of hospitals 47 47 -
Licensed beds 8,031 7,776 255
Admissions 74,821 75,876 (1.4%)
Average length of stay (days) 4.6 4.6 0.0%
Inpatient surgeries 30,106 30,213 (0.4%)
Outpatient surgeries 67,650 68,078 (0.6%)
Outpatient visits (excluding outpatient
surgeries) 927,673 923,111 0.5%
Outpatient visits (including outpatient
surgeries) 995,323 991,189 0.4%
Adjusted patient days 590,107 603,246 (2.2%)
Adjusted admissions 128,704 131,309 (2.0%)

Rate Statistics (2)
-------------------
Patient revenue per adjusted patient day $1,814.7 $1,712.1 6.0%
Patient revenue per adjusted admission $8,320.4 $7,865.6 5.8%

Revenues (millions)
-----------------------------------------
Inpatient % of patient revenues (2) 55% 52% 3.0%
Outpatient % of patient revenues (2) 45% 48% (3.0%)
Patient revenues (2) $1,070.8 $1,032.8 3.7%
Non-patient revenues (3) $53.7 $49.4 8.7%
Revenues $1,124.5 $1,082.2 3.9%


(1) Same-facility operating data include facilities owned and
operated in the full third quarter of both years. They:
- Exclude 3 hospitals with 468 beds acquired or opened since
first quarter 2004;
- Exclude 1 hospital with 166 beds owned 50% through a joint
venture, reported on an equity (non-consolidated) basis;
- Exclude 1 hospital with 534 beds acquired
October 2005;
- Exclude 1 hospital with 193 beds reclassified to discontinued
operations to be sold in fourth quarter 2005;
- Exclude 1 hospital with 48 beds reclassified to discontinued
operations and for which the lease was terminated in June 2005;
- Exclude 7 ambulatory surgery centers reclassified to discontinued
operations and sold in May 2005;
- Exclude 6 hospitals with 1,282 beds and 3 ambulatory surgery
centers reclassified to discontinued operations
and sold in 2004.

(2) Volume statistics, rate statistics, and
patient revenues:
- Exclude the QHR hospital management, consulting and
advisory services subsidiary.

(3) Non-patient revenues:
- Include the QHR hospital management, consulting and
advisory services subsidiary;
- Include other sources.


Triad Hospitals, Inc.
Operating Data - Same-Facility (1)
Unaudited


For the nine months ended
September 30,
----------------------------
2005 2004 Change
---------- ---------- ------
Volume Statistics (2)
---------------------
Number of hospitals 46 46 -
Licensed beds 8,006 7,755 251
Admissions 231,731 229,863 0.8%
Average length of stay (days) 4.7 4.7 0.0%
Inpatient surgeries 89,506 89,258 0.3%
Outpatient surgeries 201,796 202,631 (0.4%)
Outpatient visits (excluding outpatient
surgeries) 2,780,633 2,692,597 3.3%
Outpatient visits (including outpatient
surgeries) 2,982,429 2,895,228 3.0%
Adjusted patient days 1,828,584 1,823,106 0.3%
Adjusted admissions 393,063 391,722 0.3%

Rate Statistics (2)
-------------------
Patient revenue per adjusted patient
day $1,780.5 $1,681.9 5.9%
Patient revenue per adjusted admission $8,283.3 $7,827.9 5.8%

Revenues (millions)
-------------------
Inpatient % of patient revenues (2) 54% 53% 1.0%
Outpatient % of patient revenues (2) 46% 47% (1.0%)
Patient revenues (2) $3,255.8 $3,066.3 6.2%
Non-patient revenues (3) $155.2 $149.2 4.0%
Revenues $3,411.0 $3,215.5 6.1%


(1) Same-facility operating data include facilities owned and
operated in the full nine months of both years. They:
- Exclude 4 hospitals with 493 beds acquired or opened since
first quarter 2004;
- Exclude 1 hospital with 166 beds owned 50% through a joint
venture, reported on an equity (non-consolidated) basis;
- Exclude 1 hospital with 534 beds acquired
October 2005;
- Exclude 1 hospital with 193 beds reclassified to discontinued
operations to be sold in fourth quarter 2005;
- Exclude 1 hospital with 48 beds reclassified to discontinued
operations and for which the lease was terminated in June 2005;
- Exclude 7 ambulatory surgery centers reclassified to discontinued
operations and sold in May 2005;
- Exclude 6 hospitals with 1,282 beds and 3 ambulatory surgery
centers reclassified to discontinued operations
and sold in 2004.

(2) Volume statistics, rate statistics, and
patient revenues:
- Exclude the QHR hospital management, consulting and
advisory services subsidiary.

(3) Non-patient revenues:
- Include the QHR hospital management, consulting and
advisory services subsidiary;
- Include other sources.


Triad Hospitals, Inc.
Operating Data - Pro Forma for Acquisitions & Divestitures (1)
Unaudited


For the three months ended
September 30,
----------------------------
2005 2004 Change
---------- ---------- ------
Volume Statistics (2)
---------------------
Number of hospitals 50 49 1
Licensed beds 8,499 8,139 360
Admissions 79,145 79,368 (0.3%)
Average length of stay (days) 4.6 4.6 0.0%
Inpatient surgeries 31,621 31,331 0.9%
Outpatient surgeries 70,677 70,304 0.5%
Outpatient visits (excluding outpatient
surgeries) 978,013 965,362 1.3%
Outpatient visits (including outpatient
surgeries) 1,048,690 1,035,666 1.3%
Adjusted patient days 631,290 637,535 (1.0%)
Adjusted admissions 136,506 137,720 (0.9%)

Rate Statistics (2)
-------------------
Patient revenue per adjusted patient
day $1,791.4 $1,684.7 6.3%
Patient revenue per adjusted admission $8,284.6 $7,799.0 6.2%

Revenues (millions)
-------------------
Inpatient % of patient revenues (2) 55% 52% 3.0%
Outpatient % of patient revenues (2) 45% 48% (3.0%)
Patient revenues (2) $1,130.9 $1,074.1 5.3%
Non-patient revenues (3) $54.8 $50.3 8.9%
Revenues $1,185.7 $1,124.4 5.5%


(1) Pro forma operating data:
- Include 1 hospital with 50 beds acquired October 2004 on a pro
forma basis as if owned since January 1, 2004;
- Include 1 new hospital with 322 beds acquired April 2005 on a pro
forma basis as if owned since January 1, 2004;
- Include 1 hospital with 25 beds opened July
2004;
- Include 1 hospital with 96 beds opened January
2005;
- Exclude 1 hospital with 166 beds owned 50% through a joint
venture, reported on an equity (non-consolidated) basis;
- Exclude 1 hospital with 534 beds acquired
October 2005;
- Exclude 1 hospital with 193 beds reclassified to discontinued
operations to be sold in fourth quarter 2005;
- Exclude 1 hospital with 48 beds reclassified to discontinued
operations and for which the lease was terminated in June 2005;
- Exclude 7 ambulatory surgery centers reclassified to discontinued
operations and sold in May 2005;
- Exclude 6 hospitals with 1,282 beds and 3 ambulatory surgery
centers reclassified to discontinued operations
and sold in 2004.

(2) Volume statistics, rate statistics, and
patient revenues:
- Exclude the QHR hospital management, consulting and
advisory services subsidiary.

(3) Non-patient revenues:
- Include the QHR hospital management, consulting and
advisory services subsidiary;
- Include other sources.


Triad Hospitals, Inc.
Operating Data - Pro Forma for Acquisitions & Divestitures (1)
Unaudited


For the nine months ended
September 30,
----------------------------
2005 2004 Change
---------- ---------- ------
Volume Statistics (2)
---------------------
Number of hospitals 50 49 1
Licensed beds 8,499 8,139 360
Admissions 245,471 241,026 1.8%
Average length of stay (days) 4.7 4.7 0.0%
Inpatient surgeries 94,118 92,801 1.4%
Outpatient surgeries 210,887 209,757 0.5%
Outpatient visits (excluding outpatient
surgeries) 2,931,571 2,815,424 4.1%
Outpatient visits (including outpatient
surgeries) 3,142,458 3,025,181 3.9%
Adjusted patient days 1,952,794 1,929,924 1.2%
Adjusted admissions 417,570 411,705 1.4%

Rate Statistics (2)
-------------------
Patient revenue per adjusted patient
day $1,760.4 $1,655.3 6.3%
Patient revenue per adjusted admission $8,232.7 $7,759.3 6.1%

Revenues (millions)
-------------------
Inpatient % of patient revenues (2) 54% 53% 1.0%
Outpatient % of patient revenues (2) 46% 47% (1.0%)
Patient revenues (2) $3,437.7 $3,194.6 7.6%
Non-patient revenues (3) $158.7 $151.9 4.5%
Revenues $3,596.4 $3,346.5 7.5%


(1) Pro forma operating data:
- Include 1 hospital with 50 beds acquired October 2004 on a pro
forma basis as if owned since January 1, 2004;
- Include 1 new hospital with 322 beds acquired April 2005 on a pro
forma basis as if owned since January 1, 2004;
- Include 1 hospital with 25 beds opened July
2004;
- Include 1 hospital with 96 beds opened January
2005;
- Exclude 1 hospital with 166 beds owned 50% through a joint
venture, reported on an equity (non-consolidated) basis;
- Exclude 1 hospital with 534 beds acquired
October 2005;
- Exclude 1 hospital with 193 beds reclassified to discontinued
operations to be sold in fourth quarter 2005;
- Exclude 1 hospital with 48 beds reclassified to discontinued
operations and for which the lease was terminated in June 2005;
- Exclude 7 ambulatory surgery centers reclassified to discontinued
operations and sold in May 2005;
- Exclude 6 hospitals with 1,282 beds and 3 ambulatory surgery
centers reclassified to discontinued operations
and sold in 2004.

(2) Volume statistics, rate statistics, and
patient revenues:
- Exclude the QHR hospital management, consulting and
advisory services subsidiary.

(3) Non-patient revenues:
- Include the QHR hospital management, consulting and
advisory services subsidiary;
- Include other sources.