EXHIBIT 99.4 INTEGRATED HEALTHCARE HOLDINGS, INC. CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended March 31, 2008 (amounts in 000's) AS FILED AS RESTATED -------- -------- Cash flows from operating activities: Net loss $(39,163) $(39,603) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization of property and equipment 3,134 3,134 Provision for doubtful accounts 30,958 30,958 Amortization of debt issuance costs and intangible assets 236 236 Common stock warrant expense 11,404 11,404 Change in fair value of warrant liability 14,273 14,273 Minority interest in net income (loss) of variable interest entity 1,474 1,474 Noncash share-based compensation expense 121 121 Changes in operating assets and liabilities: Accounts receivable (69,578) (69,070) Security reserve funds 7,990 7,990 Deferred purchase price receivable 23,765 23,765 Inventories of supplies 91 91 Due from governmental payers (3,499) (3,499) Prepaid insurance, other prepaid expenses and current assets, and other assets 2,063 2,063 Accounts payable 5,306 5,238 Accrued compensation and benefits 2,127 2,127 Due to governmental payers 768 768 Accrued insurance retentions and other current liabilities (2,729) (2,729) -------- -------- Net cash used in operating activities (11,259) (11,259) -------- -------- Cash flows from investing activities: Decrease in restricted cash 4,948 4,948 Additions to property and equipment (921) (921) -------- -------- Net cash provided by (used in) investing activities 4,027 4,027 -------- -------- Cash flows from financing activities: Proceeds from revolving line of credit, net 3,090 3,090 Proceeds from debt 2,658 2,658 Debt issuance costs (1,493) (1,493) Issuance of common stock 576 576 Variable interest entity distribution (2,040) (2,040) Payments on capital lease obligations (262) (262) -------- -------- Net cash provided by financing activities 2,529 2,529 -------- -------- Net decrease in cash and cash equivalents (4,703) (4,703) Cash and cash equivalents, beginning of period 7,844 7,844 -------- -------- Cash and cash equivalents, end of period $ 3,141 $ 3,141 ======== ========