EXHIBIT 12.1 NATIONAL MEDICAL ENTERPRISES, INC. AND SUBSIDIARIES STATEMENT RE:COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the Six Months For the Year Ended May 31, Ended November 30, ------------------------------------------------------- --------------------- 1990 1991 1992 1993 1994 1993 1994 ---- ---- ---- ---- ---- ---- ---- Income from continuing operations before income taxes.............. $200,486 $245,142 $359,199 $418,644 $359,901 $193,908 $183,246 Less: Equity in Earnings of Unconsolidated Affiliates...... (2,902) (5,338) (6,673) (12,489) (23,846) (14,707) (12,462) Add: Cash dividends received from unconsolidated affiliates....... - - - - 178 178 894 Portion of rents representative of interest..................... 38,257 31,803 35,477 35,822 30,728 16,582 13,014 Interest, net of capitalized portion......................... 130,882 123,852 89,376 75,343 70,037 37,759 35,006 Amortization of previously capitalized interest............ 2,538 2,967 3,368 3,595 3,784 1,892 1,939 -------- -------- ------- -------- -------- ------- -------- Income, as adjusted................ $369,261 $398,426 $480,747 $520,915 $440,782 $235,612 $221,637 ======== ======== ======== ======== ======== ======= ======== Fixed charges: Interest, net of capitalized portion.......................... $130,882 $123,852 $ 89,376 $ 75,343 $ 70,037 $ 37,759 $ 35,006 Capitalized interest............... 19,492 16,890 11,021 9,028 3,749 1,676 2,225 Portion of rents representative of interest...................... 38,257 31,803 35,477 35,822 30,728 16,582 13,014 -------- -------- ------- -------- -------- ------- -------- Total fixed charges................ $188,631 $172,545 $135,874 $120,193 $104,514 $ 56,017 $ 50,245 ======== ======== ======== ======== ======== ======= ======== Ratio of earnings to fixed charges: 2.0x 2.3x 3.5x 4.3x 4.2x 4.2x 4.4x