Mr. Jason Redman reports

MEDICAL FACILITIES CORPORATION ANNOUNCES 2023 FIRST QUARTER RESULTS

Medical Facilities Corp. has released its financial results for the first quarter ended March 31, 2023. All amounts are expressed in U.S. dollars unless indicated otherwise.

Q1 2023 Highlights

(Compared to Q1 2022)

• Facility service revenue increased 8.4% to $109.3 million;
• Income from operations was $13.5 million, an increase of 4.9% when excluding government stimulus income of $1.8 million in Q1 2022;
• EBITDA1 was $19.1 million, an increase of 6.3% when excluding government stimulus income of $1.8 million in Q1 2022;
• Cash available for distribution increased by 20.6% on a per common share basis; and,
• Arkansas Surgical Hospital, Black Hills Surgical Hospital, and Sioux Falls Specialty Hospital named top hospitals for joint replacements in their states by Healthgrades.

"It was a strong quarter from an operational standpoint as higher surgical volumes from our surgical hospitals contributed to an 8.4% increase in facility service revenue," said Jason Redman, President and CEO of Medical Facilities. "We had strong cash flow and our income from operations and EBITDA were up 4.9% and 6.3% respectively, when excluding government stimulus income in the prior year. Moreover, our cash available for distribution on a per common share basis and our payout ratio benefited from the significant reduction in our share count because of last year's Substantial Issuer Bid and our ongoing Normal Course Issuer Bid program."

"We continue to be pleased with the strength of our surgical hospitals. During the quarter, three of our hospitals were recognized by Healthgrades as the leading hospitals for joint replacements in their respective states. MFC is committed to providing the highest-quality treatment and care to our patients, and this recognition reflects the incredible efforts of our physician partners and staff."

During the quarter, MFC paid a quarterly cash dividend of C$0.0805 per common share (or C$0.322 per share on an annualized basis), which represented an annualized yield of 4.05% on the March 31, 2023, closing price of C$7.95 per common share.

On March 31, 2023, MFC had consolidated net working capital of $31.9 million, compared to $32.5 million on December 31, 2022.

MFC's financial statements and management's discussion and analysis, for the three-month period ended March 31, 2023, will be filed on SEDAR at www.sedar.com on Thursday, May 11, 2023, and will also be available on Medical Facilities' website at www.medicalfacilitiescorp.ca.

Notice of Conference Call

Management of MFC will host a conference call today, May 11, 2023, at 8:30 am ET to discuss its first quarter financial results. All interested parties may join the conference call by dialing 416-764-8650 or 1-888-664-6383 approximately 15 minutes prior to the call to secure a line. To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3o9IPRy to receive an instant automated call back.

A live audio webcast of the call will be available at https://bit.ly/MFC2023Q1. Please connect at least 15 minutes prior to the call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on MFC's website following the call date.

About Medical Facilities

Medical Facilities, in partnership with physicians, owns a portfolio of highly rated, high-quality surgical facilities in the United States. MFC's ownership includes controlling interest in four specialty surgical hospitals located in Arkansas, Oklahoma, and South Dakota, and an ambulatory surgery center ("ASC") located in California. In addition, through a partnership with NueHealth LLC, Medical Facilities owns a controlling interest in five ambulatory surgery centers located in Michigan, Missouri, Nebraska, Ohio, and Pennsylvania. MFC also owns a non-controlling interest in an ASC in Missouri. The specialty surgical hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including primary and urgent care, and derive their revenue from the fees charged for the use of their facilities. The ASCs specialize in outpatient surgical procedures, with patient stays of less than 24 hours. For more information, please visit www.medicalfacilitiescorp.ca.

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