38Spire Healthcare Annual Review 2010Chief Financial Officer's statement continuedSummaryWe are delighted to have completed our third full year of this expanded business with substantial growth over 2009 at the same time as improving our stakeholder measures. Our focus continues to be on investing for growth in 2011 and beyond - both in existing facilities and future developments - and on improving margin growth.Rob Roger, Chief Financial Officer, April 2011 Essential arrangementsSpire has arrangements with all the major private medical insurers operating in the United Kingdom, as well as contracts with various NHS Trusts and Foundation Trusts, Primary Care Trusts in addition to contracts with the Secretary of State for Health. Certain contracts with the Secretary of State for Health will be replaced later in 2011 with contracts with local Primary Care Trusts. Many of these contracts can be considered essential to Spire's business. Spire also has material contracts with a range of suppliers.Approximately 6,600 consultants have practising privileges at Spire hospitals. These consultants are key stakeholders for Spire and such arrangements are essential to Spire's business.Properties Spire owns freehold or long leasehold interests in all its hospitals, with the exception of Spire Sussex, which is leased from an NHS Trust under a lease expiring in 2027. Where Spire is a tenant under third-party leases, a nominal rent is generally payable. Exceptions are three former Classics sites (Clare Park, Fylde Coast and Hull), which are leased from Matterhorn Capital under 35-year leases, and Spire Sussex, where material rent is payable.

39Spire Healthcare Limited PartnershipGeneral Partner's reportfor the year ended 31 December 2010The General Partner presents the report and the audited consolidated financial statements of Spire Healthcare Limited Partnership (the 'Partnership') for the year ended 31 December 2010. These financial statements include the results of Spire Heathcare Limited Partnership and its significant subsidiaries, as listed in note 11 to these accounts (the 'Group'). 1. Principal activity and results for the yearThe principal activity of the Group is the ownership and operation of private hospitals and the provision of private healthcare facilities. In 2010 the business comprised 37 hospitals in the UK and a number of healthcare centres, including London Fertility Centre and The London Cognitive Behaviour Therapy Centres, which were acquired during the year.Results The loss for the year, after taxation, amounted to £52.8 million (2009: £40.6 million).The Group has total assets of £2,158.6 million (2009: £2,107.7 million) and total liabilities of £2,515.2 million (2009: £2,381.7 million).Acquisitions On 29 March 2010, the Group acquired the entire share capital of London Fertility Centre Limited for a total consideration of £4.5 million. This amount was funded by means of bank loan facilities. In addition, on 7 October 2010 the Group acquired part of The London Cognitive Behaviour Therapy Centres Limited for £0.6 million, and other businesses were acquired during the year for an aggregate consideration of £1 million.2. Business reviewThe business review of the Group is contained on pages 16-23 of this Annual Review.3. Principal risks and uncertaintiesThe Group's activities expose it to a variety of business and financial risks and uncertainties. These are discussed on page 37 of the financial review.4. Ownership structureSpire Healthcare Limited Partnership is the parent undertaking of a number of separate corporate groups trading under the Spire Healthcare brand, which include:. Spire 1 (owning and operating 25 former Bupa hospitals, plus Spire Thames Valley Hospital, Spire Shawfair Park Hospital, London Fertility Centre and The London Cognitive Behaviour Therapy Centres). Spire 2 (ten former Classic hospitals)Spire 1 includes Spire Healthcare Group UK Limited, the Board of which has been invited by Spire Healthcare Limited Partnership to comment on the Group's performance in this report. Spire Healthcare Group UK Limited also hosts Spire's principal corporate governance functions, including Spire's audit and remuneration committees.Spire Healthcare Limited Partnership is controlled by funds managed and advised by Cinven, further details of which are contained in note 2 to these financial statements. Details of the current partners in Spire Healthcare Limited Partnership are given in Section 6 of this General Partner's report. Spire's senior management and certain employees hold units in Spire Healthcare Limited Partnership through one of the partners, the Rozier Employee Benefit Trust.The General Partner of Spire Healthcare Limited Partnership is Spire Healthcare (GP1) Limited, which has sole responsibility for the conduct and management of the business of Spire Healthcare Limited Partnership.