<PAGE>
Filed by Triad Hospitals, Inc.
Pursuant to Rule 425, under the
Securities Act of 1933 and deemed
filed pursuant to 14A-12 under the
Securities Exchange Act of 1934.
Subject Company: Quorum Health Group Inc.
Commission File Number 33-31717-A.
FORWARD LOOKING STATEMENTS
--------------------------
This Presentation may contain so-called "forward-looking statements,"
which are statements that do not relate solely to historical or current facts.
These forward-looking statements are based on the current plans and expectations
of the Company and are subject to a number of uncertainties and risks which
could significantly affect such current plans and expectations, as well as the
future financial condition of the Company. Such uncertainties and risks include
the competitive nature of the health care business, the efforts of various
public and private payers to reduce reimbursements to providers, possible
changes to government programs to further limit reimbursement, the enactment of
various Federal and state health care reform legislation, and changes in general
economic conditions. As a consequence of these and other risks and
uncertainties, current plans, anticipated actions and future financial condition
and results may differ significantly from those expressed in any forward-looking
statement made by or on behalf of the Company. You are accordingly cautioned not
to unduly rely on such forward-looking statements when evaluating the
information presented here, or in the Company's press release.
<PAGE>
[LOGO] TRIAD
HOSPITALS, INC.
================================================================================
Investor Presentation
October 19, 2000
<PAGE>
Triad to Acquire Quorum Health Group, Inc.
================================================================================
. Total Transaction Value: $2.4 billion
. Purchase Price of Equity: $1.4 billion
} $1.1 billion equity
} $300 million cash
. Quorum Shareholders will receive $3.50 per share in cash and .4107
Triad shares
} Fixed exchange ratio, no collars
. Represents $16.13 per Quorum share based on Triad's October 18th
closing price of $30.75
. Tax free transaction to the extent of stock received
2 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Other Key Deal Terms
================================================================================
---------------- . 2 Quorum representatives will join Triad's Board of
Board Directors
Additions
---------------- . Board size will increase to 12
---------------- . Existing Triad Shareholders 51%
Diluted Equity
Ownership . Existing Quorum Shareholders 49%
----------------
} Welsh, Carson 11%
---------------- . Voting agreement in place
Welsh, Carson
Support . Russ Carson to join Triad board
----------------
3 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Other Key Deal Terms
================================================================================
---------------- . Committed financing: $1.7 billion debt fully
Committed underwritten by Merrill Lynch
Financing
----------------
---------------- . IRS letter-ruling regarding Triad tax-free spinoff
Conditions . Shareholder approvals
. Regulatory approvals
----------------
---------------- . Closing expected end of Q1 2001/beginning of Q2 2001
Timing
----------------
4 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Triad Overview
================================================================================
---------------- . On May 11, 1999, Triad spun-off from HCA, where it had
History comprised the Pacific Group
----------------
---------------- . Locations in small cities and selected high-growth urban
Market Focus markets
----------------
---------------- . Limited competition
Advantages of . Minimal managed care penetration
Target
Markets . Growing population base
---------------- . Service expansion opportunities
5 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Triad Overview -- Track Record
================================================================================
. Triad has delivered on its pre-spinoff strategy
} Rationalized portfolio
} Improved operating performance
} Strengthened balance sheet
. Financial performance has consistently met or exceeded expectations
. Quorum represents next stage
6 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Triad Corporate Strategy
================================================================================
. Develop physician relations
} Build Physician Leadership Groups
} Leverage improved relations to jointly build volume and
manage resources
. Develop community relations
} Add community leaders to the local Boards of Trustees
} Leverage improved community relations to build volume
. Improve financial performance
} Increase patient volume
} Improve operating margin
. Grow the Company
} Expand existing hospitals
} Develop de novo hospitals in high growth emerging markets
} Acquire hospitals on a selective basis
7 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Transaction Creates a Leading Hospital Company
================================================================================
. Combination creates the third largest investor-owned hospital company
} 53 hospitals and 14 surgery centers
} 9,479 total licensed beds
} Combined LTM revenue - $3.0 billion; EBITDA - $477 million
. Geographic balance
} Operations in 17 states
. Leading hospital company focused on small city markets
. Estimated pre-tax synergies of $15 - $20 million annually, half
recognized in CY 2001
. Triad will be opportunistic with respect to managing its assets
8 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Strategic Rationale -- Why Quorum?
================================================================================
. Similar focus on small cities
} Less competition } Opportunity to expand services
} Less managed care } Ideal for Triad strategy
. Complementary geographic fit
. Quorum is a company with fundamentally strong assets
} Lutheran Hospital -- Ft. Wayne, IN
} Flowers Hospital -- Dothan, AL
} Carolinas Health System - Florence, SC
} River Region Health System - Vicksburg, MS
. Opportunity to improve operating performance
9 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
A Compelling Opportunity for Triad
================================================================================
. Attractive assets
} Increases cash flow diversification
} Margin enhancement opportunity
. Complementary geographic fit
. Qui Tam resolution
. Attractive valuation
. Reasonable leverage
10 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Broadened Asset Base
================================================================================
2000 CYE
Pro Forma
State Revenue (mm) % Total
-------------- ------------- ---------
Texas $640 23%
Indiana 395 14%
Alabama 365 13%
South Carolina 295 10%
Arizona 245 9%
Mississippi 225 8%
Arkansas 145 5%
------ ------
Subtotal 2,310 82%
Other States 525 18%
------ ------
Total $2,835 100%
11 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Complementary Market Focus
================================================================================
--------------------------------------------------------------------------------
The Majority of Quorum's Portfolio Fits Well with Triad's Market Focus; Triad is
Committed to Managing Its Portfolio Opportunistically
--------------------------------------------------------------------------------
CYE 2000 Hospital Revenue
--------------------- --------------------- ---------------------
Triad(a) Quorum Pro Forma Revenue
--------------------- --------------------- ---------------------
Urban 29.1% Small City 70.2% Small City 70.5%
Small City 70.9% Rural 21.7% Urban 12.1%
QHR 8.1% Rural 12.7%
QHR 4.7%
(a) Includes Denton (recent acquisition) and Greenbrier (pending acquisition
scheduled to at the end of October) and Sherman (designated as
held-for-sale). Excludes 2 hospitals leased to third party, Ambulatory
Surgery Centers and non-patient revenues.
12 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
A Compelling Opportunity for Triad
================================================================================
. Attractive assets
} Increases cash flow diversification
} Margin enhancement opportunity
. Complementary geographic fit
. Qui Tam resolution
. Attractive valuation
. Reasonable leverage
13 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Complementary Geographic Fit
================================================================================
[U.S.A MAP]
14 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
A Compelling Opportunity for Triad
================================================================================
. Attractive assets
} Increases cash flow diversification
} Margin enhancement opportunity
. Complementary geographic fit
. Qui Tam resolution
. Attractive valuation
. Reasonable leverage
15 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Qui Tam Resolution
================================================================================
. Quorum and the government have agreed in principle to settlement amount
. Addresses major known whistleblower lawsuits
. Total settlement amount of $95.5 million
} Alderson -- $77.5 million
} Flowers -- $18.0 million
. Corporate integrity agreements are under negotiation
. Settlement documents to be completed within four months
16 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
A Compelling Opportunity for Triad
================================================================================
. Attractive assets
} Increases cash flow diversification
} Margin enhancement opportunity
. Complementary geographic fit
. Qui Tam resolution
. Attractive valuation
. Reasonable leverage
17 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Attractive Valuation
================================================================================
. Reasonable multiple paid
} 7.9x calendar year 2000 EBITDA
} 7.5x calendar year 2000 EBITDA -- post synergies
. Paying less than Triad's current CY 2000 EBITDA multiple of 9.0x
. Paying lower multiple than the trading multiple of any public hospital
company
Market Cap/
Comparable Companies CY 2000 EBITDA
---------------------------------------- --------------
Health Management Associates 14.3x
HCA - The Healthcare Company 9.6x
Universal Health Services 9.5x
Tenet Healthcare 8.7x
18 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Attractive Valuation
================================================================================
. Non-dilutive on a GAAP EPS basis in first year and accretive thereafter
. Highly accretive on a Cash EPS basis in first year and beyond
. Generates returns in excess of Triad's investment criteria
19 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
A Compelling Opportunity for Triad
================================================================================
. Attractive assets
} Increases cash flow diversification
} Margin enhancement opportunity
. Complementary geographic fit
. Qui Tam resolution
. Attractive valuation
. Reasonable leverage
20 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Reasonable Leverage
================================================================================
--------------------------------------------------------------------------------
As it has historically, Triad plans to reduce financial leverage going forward
--------------------------------------------------------------------------------
Post-Transaction
Pro Forma
Pro Forma Credit Statistics 6/30/00(a)
--------------------------- ----------
Total Debt/EBITDA 4.0x
Senior Debt/EBITDA 3.4x
Total Debt/Capitalization 53%
EBITDA/Interest 2.3X
(a) Pro Forma to reflect Denton and Greenbrier acquisitions.
21
<PAGE>
Triad Has Demonstrated the Ability to Deleverage
================================================================================
Since its spin-off, Triad has substantially improved its balance sheet
Leverage and Coverage Ratios Total Debt/Capitalization
---------------------------- -------------------------
5.2x 3.6x 3.3x 63.4% 50.2% 49.0%
---- ---- ---- ---- ---- ----
1998(a) 1999(a) LTM 2000(b) 1998 1999 LTM 2000
(a) Reflects core operations.
(b) Pro Forma to adjust Q3 1999 and Q4 1999 to core operations.
[LOGO] Triad
HOSPITALS, INC.
22
<PAGE>
Pro Forma Financial Impact
================================================================================
<PAGE>
Pro Forma Income Statement
================================================================================
($ in Millions)
<TABLE>
<CAPTION>
Triad Quorum
LTM 6/30 LTM 6/30
Standalone(a) Standalone(a) Pro Forma
------------- ------------ -------
<S> <C> <C> <C>
Revenues $1,261 $1,763 $3,024
EBITDA 189 288 477
Margin 15.0% 16.3% 15.8%
</TABLE>
(a) Triad results Pro Forma to reflect Denton and Greenbrier acquisitions;
Quorum excludes rent expense on ELLF refinanced upon closing.
24
<PAGE>
Synergy Opportunities
================================================================================
. Corporate Savings
} Estimated pre-tax synergies of $15-20 million per year, half
recognized in CY 2001
. Other long-term synergies
} Physician relations/recruitment
} Managed care contracting
} Targeted service additions
} Purchasing synergies
25 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
Earnings Per Share Impact
================================================================================
. Non-dilutive on a GAAP basis in first year, accretive thereafter
. Highly accretive on a Cash EPS basis in first year and beyond
. Improves EPS growth rate
} Revenue growth/margin improvement opportunities
} Deleveraging from strong positive cash flow
} Realization of synergies
. Continued earnings visibility in future years
26 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
A Compelling Opportunity for Triad
================================================================================
. Attractive assets
. Similar focus on small cities
. Opportunity to improve operating performance
. Qui Tam resolution
. Attractive transaction terms
} Paying less than Triad's current EBITDA multiple;
meaningfully less than current industry averages
} Exceeds Triad's investment criteria
27 [LOGO] Triad
HOSPITALS, INC.
<PAGE>
[LOGO] Triad
Hospitals, Inc.
================================================================================
Investor Presentation
October 19, 2000
<PAGE>
(Press Release)
Triad Hospitals, Inc. and Quorum will be filing joint proxy statements /
prospectuses and other relevant documents concerning the proposed merger with
the U.S. Securities and Exchange Commission. Investors are urged to read the
proxy statement / prospectus when it becomes available and any other relevant
information about the proposed merger. Investors should read the proxy
statement / prospectus before making any voting or investment decisions.
Investors will be able to obtain the documents free of charge at the SEC's
website, www. sec.gov, and at the SEC public reference rooms in Washington,
D.C., New York, New York, and Chicago, Illinois. Please call the SEC at 1-800-
SEC-0330 for more information on public reference rooms. In addition, documents
filed with the SEC by Triad may be obtained free of charge by contacting Triad.
