MPT Operating Partnership 8-K Medical Properties Trust Announces $1.75 Billion Investment In 24 Hospital Facilities

Exhibit 99.3

C O N D E N S E D   C O N S O L I D A T E D   F I N A N C I A L   S T A T E M E N T S   ( U N A U D I T E D )

Steward Health Care System LLC

Years Ended December 31, 2018 and 2017

Steward Health Care System LLC

Consolidated Balance Sheets

	December 31
	2018			2017
	(Amounts in Thousands)
Assets
Cash and cash equivalents	$	74,258		$	69,088
Patient accounts receivable, less allowance for doubtful accounts of $424,396 and $135,535 in 2018 and 2017, respectively		669,094			686,748
Other accounts receivable		266,811			203,132
Income tax receivable		–			63,230
Estimated settlements with third-party payors		10,853			8,865
Inventories		119,407			126,027
Prepaid expenses		48,735			61,204
Other current assets		19,294			18,922
Total current assets		1,208,452			1,237,216
Property and equipment – net		1,339,786			2,655,647
Other assets		119,289			198,060
Goodwill and other intangible assets		548,044			567,253
Total assets	$	3,215,571		$	4,658,176
Liabilities and members’ deficit
Current liabilities:
Current portion of long-term debt	$	17,875		$	79,853
Accounts payable and accrued expenses		805,544			690,196
Accrued compensation and benefits		239,900			222,635
Medical claims		155,476			163,458
Estimated settlements with third-party payors		20,221			16,620
Current portion of deferred gain		57,639			6,536
Current portion of sale-leaseback financing obligation		10,891			67,579
Other current liabilities		135,016			105,298
Total current liabilities		1,442,562			1,352,175
Long-term debt – net of current portion and debt issuance costs		1,335,434			1,907,157
Professional liability costs		163,923			138,253
Deferred tax liabilities		479			13,204
Deferred gain – net of current portion		645,665			39,769
Sale-leaseback financing obligation - net of current portion		182,622			1,552,311
Other liabilities		654,444			560,088
Total liabilities		4,425,129			5,562,957
Non-controlling interests with redemption rights		87,835			85,125
Members’ deficit		(1,324,117	)		(1,017,634	)
Non-controlling interests -non-redeemable		26,724			27,728
Total deficit		(1,297,393	)		(989,906	)
Total liabilities and members’ deficit	$	3,215,571		$	4,658,176

Steward Health Care System LLC

Consolidated Statements of Operations

	Year Ended December 31
	2018			2017
	(Amounts in Thousands)
Net patient service revenue	$	5,434,043		$	3,327,312
Less provision for bad debts		(580,378	)		(284,765	)
Net patient service revenue, less provision for bad debts		4,853,665			3,042,547
Premium revenue		1,449,638			465,651
Other revenue		322,886			197,443
Total revenues		6,626,189			3,705,641
Expenses:
Salaries, wages, and fringe benefits		2,744,635			1,780,182
Supplies and other expenses		2,628,183			1,561,051
Medical claims expense		1,151,875			363,978
Depreciation and amortization		230,802			154,772
Interest		169,777			108,604
Transaction expenses		–			49,792
Gain on sale-leaseback transaction, net		(3,931	)		–
Gain on sale of assets and business		(31,274	)		–
Reorganization expenses		5,308			8,859
Total expenses		6,895,375			4,027,238
Loss from operations		(269,186	)		(321,597	)
Othernon-operating income, net		(403	)		(2,223	)
Loss before income taxes		(268,783	)		(319,374	)
Income tax expense (benefit)		10,764			(112,193	)
Net loss		(279,547	)		(207,181	)
Net loss (earnings) attributable tonon-controlling interests		8,443			(248	)
Net loss attributable to Steward Health Care System LLC	$	(271,104	)	$	(207,429	)

Steward Health Care System LLC

Consolidated Statements of Comprehensive Loss

	Year Ended December 31
	2018		2017
	(Amounts in Thousands)
Net loss	$	(279,547)	$	(207,181)
Other comprehensive loss:
Unrealized loss on available-for-sale securities		(5,950)		–
Pension liability adjustment		(1,392)		(2,065)
Other comprehensive loss before income taxes		(7,342)		(2,065)
Income tax expense		–		–
Total other comprehensive loss, net of tax		(7,342)		(2,065)
Net loss (earnings) attributable to non-controlling interests		8,443		(248)
Comprehensive loss attributable to Steward Health Care System LLC	$	(278,446)	$	(209,494)

Steward Health Care System LLC

Consolidated Statements of Changes in Members’ Deficit

	Members’ Deficit
	Accumulated Deficit			Accumulated Other Comprehensive Loss			Non- controlling interests Non-redeemable			Total Deficit
	(Amounts in Thousands)
BALANCE, JANUARY 1, 2017	$	(908,524	)	$	(1,707	)	$	-		$	(910,231	)
Net (loss) income		(207,429	)		-			1,189			(206,240	)
Pension liability adjustment		-			(2,065	)		-			(2,065	)
Non-controlling interests acquired		-			-			26,539			26,539
Issuance of convertible preferred interests		100,000			-			-			100,000
Distributions		(89	)		-			-			(89	)
Equity-based compensation expense		2,180			-			-			2,180
BALANCE, DECEMBER 31, 2017	$	(1,013,862	)	$	(3,772	)	$	27,728		$	(989,906	)
Net (loss) income		(271,104	)		-			3,196			(267,908	)
Pension liability adjustment		-			(1,392	)		-			(1,392	)
Unrealized loss onavailable-for-sale securities		-			(5,950	)		-			(5,950	)
Repurchase of equity		(5,275	)		-			-			(5,275	)
Distributions		-			-			(4,200	)		(4,200	)
Adjustment to redemption value of non-controlling interests with redemption rights		(24,942	)		-			-			(24,942	)
Equity-based compensation expense		2,180			-			-			2,180
BALANCE, DECEMBER 31, 2018	$	(1,313,003	)	$	(11,114	)	$	26,724		$	(1,297,393	)

Steward Health Care System LLC

Consolidated Statements of Cash Flows

	Year Ended December 31
	2018			2017
Operating Activities	(Amounts in Thousands)
Net loss	$	(279,547	)	$	(207,181	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		230,802			154,772
Provision for bad debts		580,378			284,765
Equity-based compensation expense		2,180			2,180
Deferred tax, net		(29,589	)		(244,051	)
Non-cash interest expense		7,963			2,342
Amortization of deferred gains		(15,093	)		(6,214	)
Gain on sale-leaseback transaction, net		(3,931	)		–
Gain on sale of assets and business		(31,274	)		(1,953	)
Other		–			(6,682	)
Increase (decrease) in cash resulting from a change in:
Patient accounts receivable		(563,349	)		(315,064	)
Establishment of accounts receivable of recent acquisitions		–			(128,634	)
Other assets		73,516			(50,816	)
Accounts payable, accrued expenses, and other liabilities		267,598			494,372
Net cash provided by (used in) operating activities		239,654			(22,164	)
Investing Activities
Purchase of property and equipment		(200,895	)		(83,403	)
Proceeds from sale of assets and business		57,851			–
Purchase ofavailable-for-sale securities		(7,500	)		–
Cost of acquisitions, net of cash acquired		(1,082	)		(440,623	)
Increase in noncurrent other assets		(4,413	)		(51,209	)
Net cash used in investing activities		(156,039	)		(575,235	)
Financing Activities
Payment of debt issuance costs		–			(16,598	)
Proceeds from issuance of debt		38,648			15,000
Proceeds under revolving credit facility		30,000			650,000
Payments under revolving credit facility		(80,000	)		(35,000	)
Repayments of debt and capital lease obligations		(87,448	)		(65,994	)
Distributions		(12,320	)		(89	)
Proceeds from preferred equity issuance		–			100,000
Net proceeds from sale-leaseback transaction		42,823			–
Repurchases of equity interests		(5,275	)		–
Cash paid for the repurchase ofnon-controlling interests		(2,348	)		–
Other		(2,525	)		(745	)
Net cash (used in) provided by financing activities		(78,445	)		646,574
Net increase in cash and cash equivalents		5,170			49,175
Cash and cash equivalents at beginning of year		69,088			19,913
Cash and cash equivalents at end of year	$	74,258		$	69,088

Steward Health Care System LLC

Consolidated Statements of Cash Flows (continued)

	2018		2017
Supplemental disclosure of cash flow information		(Amounts in Thousands)
Cash paid for interest	$	168,025	$	95,640
Net cash paid for income taxes	$	–	$	58,561
Supplemental schedule ofnon-cash investing and financing activity
Purchase of property and equipment financed by capital leases	$	11,399	$	37,735
Reduction of financing obligations resulting from qualifying for sale-leaseback accounting	$	2,016,881	$	–
Non-cash financing to fund acquisitions	$	–	$	1,711,300