<p>Table of Contents<br/>Acute-Care Sector......................................................................................................................................................... 2<br/>Recap of 4Q07 Performance ........................................................................................................................................ 3<br/>Quality of Earnings Analysis ..................................................................................................................................... 11<br/>Preview of 1Q08 Expectations ................................................................................................................................... 12<br/>Common Themes for All Hospitals in 1Q08............................................................................................................ 12<br/>Post-Acute Sector....................................................................................................................................................... 15<br/>Senior Living ............................................................................................................................................................... 20<br/>Recap of 4Q07 Performance ................................................................................................................................. 20<br/>Preview of 1Q08 Expectations............................................................................................................................... 23<br/>Skilled Nursing ............................................................................................................................................................ 24<br/>Recap of 4Q07 Performance ................................................................................................................................. 24<br/>Preview of 1Q08 Expectations............................................................................................................................... 27<br/>Hospice ........................................................................................................................................................................ 27<br/>Recap of 4Q07 Performance ................................................................................................................................. 27<br/>Preview of 1Q08 Expectations............................................................................................................................... 31<br/>Behavioral Health........................................................................................................................................................ 32<br/>Recap of 4Q07 Performance ................................................................................................................................. 32<br/>Preview of 1Q08 Expectations............................................................................................................................... 33<br/>Rehabilitation .............................................................................................................................................................. 33<br/>Recap of 4Q07 Performance ................................................................................................................................. 33<br/>Preview of 1Q08 Expectations............................................................................................................................... 34<br/>Institutional Pharmacy................................................................................................................................................ 34<br/>Recap of 4Q07 Performance ................................................................................................................................. 34<br/>Preview of 1Q08 Expectations............................................................................................................................... 35<br/>Healthcare REIT Sector .............................................................................................................................................. 36<br/>Recap of 4Q07 Performance ................................................................................................................................. 36<br/>Preview of 1Q08 Expectations............................................................................................................................... 37</p><p></p><p> <br/></p><p></p>