Prime Healthcare Properties is a leading developer of ambulatory surgical centers, medical office buildings, and other outpatient facilities, with over 1 million square feet of developments across 8 states. They specialize in de novo development, acquisitions, joint ventures, and management of healthcare real estate. The document provides an overview of Prime Healthcare Properties' services and expertise in developing, acquiring, managing, and selling various types of medical real estate properties.

1. CONFIDENTIAL ©2019 PRIME HEALTHCARE PROPERTIES. ALL RIGHTS RESERVED. ‘PRIME HEALTHCARE PROPERTIES’’ AND THE LOGO ARE TRADEMARKS OF PRIME HEALTHCARE PROPERTIES.
Prime Healthcare Properties:
The Preferred Acquisition Partner and De Novo Developer of Ambulatory Surgical
Centers (ASC), Medical Office Buildings(MOB) & Extended Recovery Centers
23Yearsof
MedicalRealEstate
Development

2. Executive Summary
2
 Prime Healthcare Properties has self-disrupted. We are the trailblazer in Strategic Alliances and Joint Ventures in
ASC development and management space. We have established ourselves as a a top-tier super-regional developer
of ASCs and MOBs. Based in Huntsville, AL, we are a trusted, sophisticated and relevant partner of leading ASC
Management Companies and physician partners. With a 23-year track record of success, we separate ourselves from
our competition in:
i. De Novo Development- +1MM square feet of medical space,18 projects in 13 states
ii. Acquisitions- 400,000 square feet of healthcare properties, 8 projects in 3 states
 Our inherently symbiotic fit with physician partners and ASC management companies lies in our ability:
i. to organically develop de novo Ambulatory Surgical Centers (ASCs) and Medical Office Building (MOB)
ii. to acquire Grade-A medical space
iii. to orchestrate future-proof ownership models, JVs, with or without physician partners
 We successfully engage with industry leading ASC management companies and proven physician partners. As
property values coalesce around authenticity and individuality, our customers value our recommendations even more
 We help stabilize, diversify, expand and enrich a healthcare real estate portfolio. We create the ultimate managed
experience all through the medical property lifecycle. We have developed, acquired and managed properties for the
stalwarts in ASC management and healthcare services nationally. We are a preferred ASC and MOB real estate
developer –unrivalled in footprint, expertise and reputation.
Who we are
Who we serve
Physician
Partners
ASC Management
Company

3. 1 million sq ft
of De Novo Development
8
US states
23 years
of Medical Real Estate Development
Specialize in $2-$20MM
Owner-occupied specialty ASC with
management companies
De Novo Development Sale-Leaseback Property Acquisition
and Management
Investment Property Sale
 Physician Partners
 Strategic Alliance Partnerships
 Urgent Care Operators
 Imaging Providers
 Physical Therapy Providers
 Renal Care Providers
 Rural Critical Access Hospitals
 Acute Care Operators
 Freestanding Emergency Room
Operators
 Memory Care Operators
 Ophthalmologists
 Dental Clinics
 Plastic Surgery Providers
 Intensive Outpatient Program
Providers
 Primary Care Providers
 Rehab Providers

4. Centre Plaza (Faith Surgery Center), The Colony, TX North Dallas Surgical Center, Dallas, TX
Yellowstone Surgery Center (Montana Ambulatory Care
Campus), Billings, MT
Texas Health Orthopedic Surgery Center, Fort Worth, TX
We have developed iconic multi-specialty ASCs and MOBs nationwide.
Our typical ASC spans an area of 27,000 square feet housing 4 specialties

5. North Texas Orthopedics (MOB), Fort Worth, TXCentral Arkansas Surgical Center, Russellville, AR
West Feliciana Hospital, St.
Francisville, LA
Cleburne Surgical Center and MOB,
Cleburne, TX
Riverview Surgery Center (MOB), South
Sioux City, NE
Our de novos thrive and typically generate adjacent as well as ancillary development
for us. We are successfully engaged in subsequent phases of development

6. of the recent and planned
medical-property
construction projects are in
the outpatient space
Hospitals are planning
relevant projects
A new paradigm is taking shape in the ever-changing ASC world
...and super-winners dominate value-creation
JVs and strategic alliances are
our sweet spot. We are nimble,
think client-first, and achieve
ever-faster speed-to-market. Our
formidable track record in
orchestrating JVs:
 Yellowstone Surgery Center is an
alliance between St. Vincent
Healthcare and Ortho Montana
 MACC Imaging is a JV between
St. Vincent and Touchstone
Imaging
 North Dallas is a JV between
Texas Health Resources,
Surgical Care Affiliates and
physician partners
 Zachary LA is a JV between
Baton Rouge Orthopedics and
Lane Memorial Hospital
 N. Fort Worth is an alliance JV
between Texas Health
Resources, Surgical Care
Affiliates and North Texas
Orthopedics
 Cleburne is an alliance JV
between Texas Health
Resources, Surgical Care
Affiliates and multiple specialists
Macro Trend Evidence Solution
There is a marked shift away
from Hospital to:
i. Ambulatory Surgery
Centers (ASC)
ii. Medical Office Buildings
(MOB)
iii. Urgent Care Centers
(UCC)
iv. Free-Standing
Emergency
Departments (FED)
v. Micro Hospitals
58%
Our Positioning
A 3-way Strategic Alliance or
Joint Venture (JV) between the
local hospital, ASC and
management and development
company is emerging as a
preferred structure
It allows physician partners to
maintain independence while
achieving tighter alignment by
simultaneously boosting ASC
volumes, attracting physicians
and connecting the center into
its hospitals partner’s patient
referral network
This is especially relevant
today as Accountable Care
Organizations (ACOs) are
becoming dominant and
insurance companies are
steering patients to the low-
cost providers
92%
Source: Advisory Board at the BOMA Healthcare Conference (May 2018)

7. 7
Medical Office Buildings
(MOBs)
Urgent Care Center
(UCC)
Micro Hospitals
Ambulatory Surgical
Center (ASC)
Outpatient
Formats
Description
 Services:
i. Imaging
ii. Lab
iii. Pharmacy
 Typically leveraged by
health systems to:
a. Enter a new
market
b. Protect
market share
c. Facilitate care
coordination
Real Estate
Trend
 Larger facility
 Multispecialty
properties
 Located near
complimentary
services and retailers
 Same-day clinics that
can handle medical
problems that need to
be treated immediately,
but are not considered
true emergencies
 Typically leveraged by
health systems to:
a. Enter a new
market
b. Encourage
primary care
c. Discourage
unnecessary
use of
emergency
departments
 3,000 square feet
 7,080 UCCs in the US-
37% are partially
owned by hospitals
 Average 50 patient
visits/day, 15% offer
primary care services
 8-12 beds facilities that
offer core services:
i. Acute care
ii. Emergency
Pharmacy
iii. Diagnostic
iv. Imaging/Lab
v. Primary care
vi. Outpatient
Rehab and
Surgery
vii. Specialty
Care
viii. Wellness
care
ix. Women’s
services
 15,000 - 50,000 square
feet compared to
15,000 square feet for a
Free-standing
Emergency Department
 Located at city edges,
exurbs, or 10-15 miles
from parent facilities
 Medicare-certified
ASCs has grown from
4,955 (2008) to 5,507
(2016).
 General surgery in
ASCs is projected to
grow from 18% to 52%,
Gastroenterology from
13% to 51%, and
neurosciences from 6%
to 50% in 2016 to
2026. Urology,
orthopedics, spine,
ENT and
cardiovascular are also
projected to grow
 Bandwidth to improve
ASC infrastructure
 Facilitate design
alterations to
accommodate higher-
acuity procedures

8. 8
Our REIT heritage, sharp locational intelligence and insights, cultural alignment and
time-sensitive execution make us a preferred Development and Acquisition Partner
ASC Lifecycle Build/Acquire Develop Manage Sell
1 2 3 4
Key
Stakeholders
Our Services
Physician
Partners
ASC Management
Company
REIT
Real Estate
Investment Trust
De Novo Development
Sale-Leaseback
Property Management Investment Property Sale
Property Acquisition
Property Development
Physician
Partners
ASC Management
Company
Physician
Partners
ASC Management
Company
Physician
Partners
ASC Management
Company
Private Equity

9. 9
Build/Acquire Develop Manage Sell
1 2 3 4
 Landlord entities created by physicians often lacks foresight, diligence and end-to-end thoroughness. Most Landlord entities fail to
envision evolving needs (physician partners’ retirements, fresh recruitments, real estate expansion, buy-ins and handoffs as well as
capital restructuring). This myopia creates glaring inequities and conflicts between stakeholders overtime that leads to lease
restructuring and re-syndication
 Our forte lies in structuring, orchestrating and executing imaginative ownership models- Joint Ventures with or without physician
partners. We are experts in consultative selling and complex negotiations with physician partners. We take immense pride in
“making it right” by structuring and executing future-proof Landlord LLCs in terms of rent, escalation factor, triple net (maintenance,
insurance and taxes) and guarantee. We are known for clean structuring of triple net leases and syndicating for private placement.
We align priorities, mindsets, and approaches
 Our domain-specific expertise and unbiased perspective makes us a critical partner. We have a keen understanding of Certificate of
Need (CON), Anti-Kickback and Stark Law
 Unlike regional developers limited to a particular state who excel in shell development, we offer a solid national footprint of complete
end-to-end medical real estate solutions
Challenge
Our
Difference
“ASC development is
exhilarating but can also
be overwhelming for
Physicians”
“Physicians make numerous mistakes when they attempt to plan and develop these facilities without
engaging an experienced developer. The 4% development fee seems excessive on the front end.
Organizing the right team to design and construct these facilities, and managing the multiple
alliance partners through the planning, budgeting, syndicating, site selection, programming, design
and construction process is an undertaking that they do not understand. They need to focus on
being surgeons or physicians. Orchestrating a development is a time consuming job. Keeping the
physicians from making mistakes in the design of facilities that cost $400 PSF + is a skill set few
people have. They don’t like to hear this on the front end of a project. They usually get it later. You
get one chance to right size this facility, establishing your occupancy costs and profitability for the
next 10-20 years. How you plan for future growth is key. Over developing a facility on the front end
is a common mistake”
Stark Law: “Fair market value means the value in arm’s-length transactions, consistent with the general market value. ‘General market value’ means the price that an asset would bring as the
result of bona fide bargaining between well-informed buyers and sellers who are not otherwise in a position to generate business for the other party, or the compensation that would be included in
a service agreement as the result of bona fide bargaining between well-informed parties to the agreement who are not otherwise in a position to generate business for the other party, on the date
of acquisition of the asset or at the time of the service agreement.” [emphasis added]
Anti-Kickback Statute: “...fair market value in arms-length transactions... not determined in a manner that takes into account the volume or value of any referrals or business otherwise generated

10. 10
Build/Acquire Develop Manage Sell
1 2 3 4
 Physicians are not bona fide real estate experts. Most physicians do not have the bandwidth nor the expertise to develop and to
manage real estate
 Physicians may become emotional about a particular location. However property development is much more than site selection. It is
about optimizing patient access, right-sizing facility, envisioning and building tech infrastructure, addressing environmental issues
and zoning laws, envisioning parking and designing with adequate headroom for flexibility and future service-mix
 We execute either as a Partner in the Landlord LLC or as a Fee Developer. Constructing the right team is fundamental and perhaps
the most important early task. We spearhead, mobilize and align best-in-class architects, general contractors and engineers
 In a design assist model, we leverage the expertise and market intel of architects and general contractors in the initial programming
and budgeting phase. We carefully hand-pick each team based on their local expertise in specific use case and then scale
accordingly. We take into consideration the team’s existing work load to purposefully harness the collective brain power and
knowledge. We require the A-game from each team member. We create the ultimate managed experience in property management
– vendor & supplier management, lease management, reporting, facility maintenance, tenancy management, safety and security,
vacant property management, marketing and disposition. Our robust technology platforms support this neural network in real-time.
Our partnership’s profound potential lies in its ability to link various key stakeholders for unsurpassed transparency, visibility, ubiquity
and specificity
Challenge
Our
Difference

11. 11
Build/Acquire Develop Manage Sell
1 2 3 4
 Recession-resistant healthcare remains the most active sector in Real Estate Transaction Market as evidenced by record-breaking
consolidation:
i. Acquisition of Physicians’ Practice by Large Facilities
ii. Cheaper to Buy than Build
iii. CON (Certificate of Need) State Opportunities
iv. MOBs Attractive to PE’s (Cash Flow from Doctors)
 Savvy investors are being drawn to medical office properties due to declining vacancy and market cap rates. Between 2012 and
2016, vacancy rates dropped from 11.6% to 7.4% and average capitalization rates dropped from 7.7% to 6.7%
 Private equity roll-ups or leveraged buy-outs are increasingly becoming common
Challenge
Our
Difference
Mark Samples
CCIM, President
 Cap rates are what they are- every auction 1031 platform would reflect it. What
matters is that our selling fees are half. We make sure there is no buy side
brokerage
 Our Founder and President, Mark Samples’ Investment Property Sales heritage
from CNL-Bank of America (1990-1998) of recycling capital and enhancing the
REIT’s portfolio by concept, by geography & by tenant is of special relevance to
sellers today. 1031 exchange can minimize significant selling costs by dealing
directly with buyers and by reducing the selling commissions by as much as
50%
 Mark Samples has originated +$800MM in sale-leaseback, debt financing and
strategic advisory to Restaurant real estate in Trustreet Properties- the largest
publicly-traded restaurant REIT in the US (2000-2007)
 We have close ties with leading lenders, equity sponsors and private real
estate investment groups

12. 12
Contact Us
Mark Samples
President, Prime Healthcare Properties
mark@primehealthcareproperties.com
972-679-5612
Donna Hendricks
Executive Assistant, Prime Healthcare Properties
donna@primehealthcareproperties.com
256-425-5173