As of December 31, 1999, the Company leased seven hospital facilities from the Trust with terms expiring in 2000 through 2006. These leases contain up to six 5-year renewal options. During 1998, the Company exercised five-year renewal options on four hospitals leased from the Trust which were scheduled to expire in 1999 through 2001. The leases on these facilities were renewed at the same lease rates and terms as the initial leases. Future minimum lease payments to the Trust are included in Note 6. Total rent expense under these operating leases was $16.6 million in 1999, $16.5 million in 1998 and $16.3 million in 1997. The terms of the lease provide that in the event the Company discontinues operations at the leased facility for more than one year, the Company is obligated to offer a substitute property. If the Trust does not accept the substitute property offered, the Company is obligated to purchase the leased facility back from the Trust at a price equal to the greater of its then fair market value or the original purchase price paid by the Trust. The Company received an advisory fee of $1.2 million in 1999 and 1998 and $1.1 million in 1997 from the Trust for investment and administrative services provided under a contractual agreement which is included in net revenues in the accompanying consolidated statement of income. During 1999, the Company sold the real property of a medical office building to the Trust for cash proceeds of approximately $13 million. Tenants in the multi-tenant building include subsidiaries of the Company as well as unrelated parties.

    A member of the Company’s Board of Directors is a partner in the law firm used by the Company as its principal outside counsel.