HomeMy WebLinkAbout991872.tiff RESOLUTION
RE: THE BOARD OF EQUALIZATION, 1999, WELD COUNTY, COLORADO - STIPULATE
PETITION OF:
HEALTHCARE REALTY TRUST INC
3310 WEST END AVE
NASHVILLE, TN 37203
DESCRIPTION OF PROPERTY: ACCOUNT#: R6930797 PARCEL#: 095915400008 - GR
PT SE4 15-5-66 (GRAPEVINE ANNEX) BEG SE COR SEC N0D36'W 1740.36' S89023'W 50'
TOW ROW LN 47 AVE & TPOB S0D36'E 387.88' S89D32'W 713.62' TO E ROW LIN 49
AVE N0D27'W 417.88' TO S ROW LN 25 ST N89D32'E 682.61' TH ALG CURVE 47.05' (R=30'
C/A=89D51' CHORD=N45D32'W 42.37') TO TPOB SECT,TWN,RNG:15-05-66 BK:1561
BK:1595 PARCEL: 395915400008
WHEREAS, the Board of County Commissioners of Weld County, Colorado, convened as
the Board of Equalization for the purpose of adjusting, equalizing, raising or lowering the
assessment and valuation of real and personal property within Weld County, fixed and made by
the County Assessor for the year 1999, and
WHEREAS, said petition has been heard before the County Assessor and due Notice of
Determination thereon has been given to the taxpayer(s), and
WHEREAS, the taxpayer(s) presented a petition of appeal of the County Assessor's
valuation for the year 1999, claiming that the property described in such petition was assessed too
high, as more specifically stated in said petition, and
WHEREAS, in lieu of the hearing scheduled before the Board of Equalization a Stipulation
was agreed upon by the Assessor and said petitioner(s), and
WHEREAS,the petitioner(s)and the Weld County Assessor agree that the assessment and
valuation of the Weld County Assessor shall be, and hereby is, stipulated as follows:
ACTUAL VALUE
AS DETERMINED ACTUAL VALUE
BY ASSESSOR AS STIPULATED
Land $ 297,950 $ 297,950
Improvements OR
Personal Property 10.476.200 9.502.050
TOTAL ACTUAL VALUE $ 10.774.150 $ 9,800,000
991872
1,2 --I- AS0043
RE: BOE - HEALTHCARE REALTY TRUST INC, R6930797
Page 2
WHEREAS, said Stipulation shall resolve all issues to have been determined by the Weld
County Board of Equalization.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, acting as tie Board of Equalization, that the Stipulation agreed to by the Weld County
Assessor and the above-named petitioner(s) be, and hereby is, accepted by the Board.
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 4th day of August, A.D., 1999.
BOARD OF COUNTY COMMISSIONERS
W COUNTY COL RADO
ATTE Q��'�"
Dale K. Hall, air
W ,C_ t oard
-.0 r EXCUSED
��` Barbara . Kirkmeyer, Pro-Tem
BY: o
o Board — ,
eorge xter
APPROVED AS TC) FORM:
M. J/Gel e
As ant Co my Attorney A; 4/741
Glenn Vaadc
991872
AS0043
1999
COUNTY BOARD OF EQUALIZATION
WELD COUNTY
ASSESSOR' S ACCOUNT NUMBER R6930797
STIPULATION (As To Tax Year 1999 Actual Value)
RE PETITION OF
NAME: Healthcare Realty Trust Inc .
ADDRESS : 3310 West End Aveue
Nashville, Tennessee 37203
Petitioner (s) , Healthcare Realty Trust, Inc . and the Weld
County Assessor, hereby enter into this Stipulation regarding the
tax year 1999 valuation of the subject property, and jointly
move that the Board of Equalization to enter its order based on
this Stipulation.
Petitioner (s) and the Assessor agree and stipulate as follows :
1 . The property subject to this Stipulation is described as :
GAR PT SE4 15-5-66 (GRAPEVINE ANNEX) %4750 W 25 ST%
2 . The subject property is classified as Residential
property (what type) .
3 . The County Assessor originally assigned the following
actual value to the subject property for tax year 1999 .
Land $ 297, 950
Improvements $ 10, 476 . 200
Total $ 10 , 774 , 150
4 . After further review and negotiation, the petitioner (s)
and Weld County Assessor agree to the following actual
value for the subject property.
Land $ 297 , 950
Improvements $ 9 , 502 . 050
Total $ 9. 800 , 000
5 . The valuations, as established above, shall be binding
only with respect to tax year 1999
6 . Brief narrative as to why the reduction was made ::
Equalize value with other sine lair properties be sold
throughout the Front Range . Comparables were provided
by agent for the Petitioner.
7 . Both parties agree that the hearing scheduled before the
Weld County Board of Equalization on July 30 , 1999 (date)
at30 p.m. (time) be vacated; or, a hearing has not yet
been scheduled before the Board of Equalization _
(check if appropriate) .
DATED this 29 day of July , 1999
Petitioner (s) or Attorney Petitioner (s) or Attorney
Address : Address :
In {fie ` lou.eke
o ,R R1 it MD
Of
65tt
i
Telephone : (Q( 201234 Telephone :
County Assessor
Address :
1400 N. 17th Avenue
Greeley, CO 80631
(303) 353-3845 ext . 3656
"7/29/99 16:06 FAX WELD ASSESSOR Z004
1999
• COUNTY BOARD OF EQUALIZATION
• WELD COUNTY •
•
ASSESSOR' S ACCOUNT NUMBER R69107 7
STIPULATION (As To Tax Year 1999 Actual Value)
RE PETITION OF
NAME : Healthcare Realty Trust Inc.
ADDRESS : _ 3310 West End AveUe
Nashville. Tennessee 37203
*
Petitioner (s) ,. H alt car Realty Trusr nc. and the Weld
County Assessor, hereby enter into this Stipulation regarding the
ov year 19 valuationf . Eal nation to of the ,ect enter its torderCibasedton
move that the Board of . Equ
this Stipulation.
Petitioner(s) and the Assessor agree and stipulate as follows :
1 . The property subject to this Stipulation is described as ;
_GAF PT SE4 15-5-66 (GRAPEVINE ANNEX) %4_750 W 25 ST%
2 . The subject property is classified as Residential
property (what type) .
3 . The County Assessor originally assigned the following
actual value to the subject property for tax year 1999 .
Land $ 297 . 950
Improvements $ 10 .4_76 , 200
Total $ 1O . 77A. 16O _
4 . After further review and negotiation, the petitioner (s)
and Weld County Assessor agree to the following actual
value for the subject property.
Land $ 297. 950 _
Improvements $ 9. 502 . 050
Total $ 9. 800. 000
5 . The valuations, as established above, shall be binding
only with respect to tax year 1999 .
991872
'7/29/99 16:06 FAX WELD ASSESSOR la 005
6 . Brief narrative as to why the reduction was made :
Equalize value with other similar properties be sold
thr shout the Front Ranae Comparab]. ss were provided
by agent for the PRtitioner. -
7 . Both parties agree that the hearing scheduled before the
Weld County Board of Equalization on July _3().0. 1999 (date)
at X30 gym. (time) be vacated; or, a hearing has not yet
been scheduled before the Board of Equalization _
(check if appropriate) .
DATED this 29 day of _ July , 1999
� 14<1
Petitioner(s) or Attorney Petitioner (s) or Attorney
Address: Address :
(o s�uche
1 (^ivl enritR, kitI
ratsclOle, Z S5t51
Telephone: (p.n/9`T" ZOO Telephone: _
County Asthessor
Address:
1400 N. 17th Avenue
Greeley, CO 80631
(303) 353-3845 ext. 3656
BOE SUMMARY SHEET
Account#: R6930797 PARCEL#: 095915400008
HEALTHCARE REALTY TRUST INC
3310 WEST END AVE
NASHVILLE, TN 37203
HEARING DATE: July 30, 1999 TIME: 1:30 PM
HEARING ATTENDED? (Y/N) NAME:
AGENT NAME: -
APPRAISER NAME:
DECISION:
ACTUAL VALUATION
ORIGINAL SET BY BOARD
Land $ 297,950
Improvements OR
Personal Property 10,476,200
Total Actual Value $10,774,150
COMMENTS:
MOTION BY TO : ADJUST/DENY /GRANT THE PETITION
SECONDED BY
Assessor's value upheld
Failed to prove appropriate value Baxter -- (Y/N)
No comparables given Geile -- (Y/N)
Increase/Decrease in Valuation Hall -- (Y/N)
Assessment Ratio Kirkmeyer-- (Y/N)
Other: Vaad -- (Y/N)
RESOLUTION NO.
07/13/99 TUE 10:40 FAX 770 432 0601 DELOITTE & TOUCHE ATL +-,. PHOENIX 11003
n •
NOTICE OF DENIAL OFFICE OF COUNTY ASSESSOR '
a 1400 NORTH 17th AVE.
GR PT sE4 15-5-66 (GRAPEVINE
GREELEY,0080631.
1710.AMEX) BEG SE COR 5SEC0' HOD36'W •
PHONE(970)353-3845,EXT.3650
LE 47 6' S89D23'N 50' TO W R68
LE 47 AVE & TPOp S0D36'E 387.88' ..
li it S89D32'W 713:62• TO E ROW LW 49 •
' AVE NOD27'N 417.88' TO S ROW LNCOLO
ADO
OWNERi HEALTHCARE REALTY TRUST INC
HEALTHCARE REALTY TRUST INC LOG 2859
3310 WEST END AVE PARCEL 095915400008
ACCOUNT R6930797
NASHVILLE, TN 37203 YEAR 1999
06/10/1999
The appraised value of property is bated{nnon'eett�he��aappropQQriiate consideration of the approaches to value required by law. The Assessor has determined that
Yale at j ciligaI1iO�ACA Mists Dry IMP VALUED BY CONSIDERING
THE COST, MARKET, AND INCONBS APPROACHES.
If your concern is the amount of your property tax,local taxing authorities(county,city,fire protection,and other special districts)bold budget
hearings in the fall. Pleas.refer to your tax bill or ask your Assessor for a listing of these districts,and plan to attend these budget bearings.
The Assessor has carefblly studied all available information,giving particular attention to the specks included on your protest,and has determined the
by tion(s)SSsr�n youro wry, The reasons for this detERG COon of,value are:
Qua PR BEEt7 UNIFORMLY VALUED FOLLOWING COLORADO LAW AND INSTRUCTIONS
PUSLISHED BY THE STATE DIVIISION OF PROPERTY TAXATION• YOUR PROTEST OF VALUE HAS
BEEN DENIED DUE TO COMPARISON OF OTHER SIMILAR PROPERTIES WHICH SOLD DURING THE
1997/1998 TIME PERIOD. THIS COMPARISON SHOWS YOUR ACTUAL PROPERTY VALUE TO BE
CORRECT FOR THAT PERIOD.
PETITIONER'S ASSESSOR'S VALUATION ,
PROPERTY CLASSIFICATION ESTIMATE ACTUAL VALUE ACTUAL VALUE
OF VALUE PRIOR TO REVIEW AFTER REVIEW
LAND 297950 297950
IMPS .. • 10476200 10476200
TOTALS S $ 10774150 ' $ 10774150
•
If you disagree with the Avoutior's decision,you have the right to appeal to the County Board of Egtalixadou for further consideration,39-8-
106(1)(a),C.D.S. Please see the back of this form for detailed information on filing your appeal.
By:
Stank-" v Cnasinna DATE
WELD COUNTY ASSESSOR
15-DPT-AR ON REVERSE SIDE
Form PR-207-87/99 ADDITIONAL INFORMATION
07/13/99 TUE 10:40 FAX 770 432 0601 DELOITTE & TOUCHE ATL ,-, PHOENIX y 004
ILYL' 1111'i lvVala av su a,,,;.na., aaau •.v.++-......vr� v+..��...�...
The County board of Equal nation will sit to hear appeals beginning July 1 and continuing through August 5 for real
property(land and buildings) and personal property (furnishings,machinery,and equipment) 39-8-104 and 39-8-
107(2),C.R.S.
APPEAL PROCEDURES; , e
If you choose to appeal the Assessor's decision,you must appealto the County Board of Equalization. To pdeserve
e your right to a al,your appeal must be POSTMARKED OR DELIVERED ON OR BEFORE JULY 15 FOR "
REAL PROPERTY,AND JULY 20 FOR PERSONAL PROPERTY. • ," a •
WELD COUNTY BOARD OF EQUALIZATION
915 10th Street,P.O. Box 758
Greeley, Colorado 80632
Telephone(970)3564000 Ext. 4225
NOTIFICATION OF Ii<E4RING:
You will be notified of the time and place set for the hearing of your appeal.
COUNTY WARD OF EQUALIZATION'S DETERMINATION:
The County Board of Equalization must make a decision on your appeal and mail you a determination within five
business days of that decision, The County Board must conclude their hearings by August 5.
TAXFAYER RIGHTS you E(JRTHER APPEAL&
If you are not satisfied with the County Board of Equalization's decision you must file within thirty days of the
County Board of Equalization's written decision with ONE of the following:
Board of Assessment Appeals (BAA):
Contact the BAA at 1313 Sherman, Room 315,Denver, Colorado 80203, (303)866-5880.
District Court:
9th Avenue and 9th Street,P.O. Box C
Greeley, Colorado 80632
Telephone(970) 3564000,Ext. 4520
Arbitration:
WELD COUNTY BOARD OF EQUALIZATION
915 10th Street,P.O.Box 758
Greeley,Colorado 80632
Telephone(970) 356-4000, Ext. 4225
If you do not receive a determination from the County Board of Equalization,you must file an appeal with the Board
of Assessment Appeals by September 10.
TO PRESERVE YOUR APPEAL RIGHTS,YOU MUST PROVE YOU HAVE FILED A TIMELY
APPEAL; THEREFORE, WE RECOMMEND ALL CORRESPONDENCE BE MAILED WITH PROOF -
OF MAILING.
PerITION TO THE COUNTY BOARD OF EQUALIZATION
In the space below,please explain why you disagree with the Assessor's valuation. IN ACCORDANCE WITH 39-
8-106, C.R.S.,YOU MUST STATE YOUR OPINION OF VALUE IN TERMS OF A SPECIFIC DOLLAR
AMOUNT. Attach additional documents as necessary.
Blau La
swry �u r iuwry , on,
1999 PROPERTY TAX APPEAL
THE BRIDGE AT GREELEY
LCC OF GREELEY
SCHEDULE #R6930797
The subject property is a 120-bed nursing home and a 28-unit assisted living project
located at 1318 47th Avenue in Greeley. It is currently valued at $10,774,150, or $72,798
per `bed'. Attached is some information supporting our appeal of the subject property.
The first part of the package relates to changes made by Congress with regard to
Medicare reimbursements, and the impact this has had on the long-term care provider
industry. Please note that the first article comes from the March, 1998 issue of The
Denver Business Journal, which details the then impending action by Congress to
institute the new"Interim Prospective Payment System", and its anticipated effects.
Subsequently, Congress instituted the final "Prospective Payment System", which
reimburses care providers a set amount for services rendered. Prior to the PPS, care
providers were reimbursed according to their cost. This new system has had a dramatic
effect on the nursing home industry, and consequently, the nursing home market. The
next several articles detail this effect. Due to the volume of information available, I have
only included articles dating back to May, 1999.
The next part of the package graphically illustrates the historical stock value of the
nation's largest nursing home providers, and is quite telling. The graphs cover a two-year
period, prior and subsequent to the PPS. The seven stocks lost an average of 67% of their
total value over the two-year period.
Finally, the last portion of our appeal package is a summary of comparable sales from the
seven largest Colorado counties. These sales average $41,675 per unit.
Given the dramatic changes to the nursing home industry over the last year and a half,
and in light of the comparable sales, it is our opinion that the 1999 Actual Value should
be no more than $54,000 per unit, or$8,000,000.
Reform sparks concern-- The Denver Business Journal-- 1998-03-23 Page 1 of 3
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The Denver
Rusin* en Journal
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Book of t_is's March 23, 1998
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Reform sparks concern
Medicare changes worry home-nursing providers
Marsha Austin Business Journal Staff Reporter
Richard Martin, owner of Longmont-based Superior Home
Health Services, doesn't know if he'll be getting a paycheck
this year.
Martin and numerous small agencies that provide home
nursing care to Medicare patients are anxiously awaiting an
April 1 announcement by the Health Care Financing
Administration that could spell financial disaster for their
businesses and cause a drastic drop in the quality of care to
chronically ill patients.
"It is frightening to go into 1998," said Martin, whose 25-
employee care agency serves about 30 patients, 95 percent
of them Medicare-covered. "I wanted to make a difference,
but I'm trying to make a living. I can't do it for free."
To crack down on Medicare fraud, Congress approved a
new payment system for reimbursing home-care providers
as part of the Balanced Budget Act of 1997. The new
Prospective Payment System is designed to reward home
health agencies for efficient use of Medicare dollars.
The problem for small, home-care providers is not the new
reimbursement method, which most providers like, said
Carol Bartley, chief operating officer at the Visiting Nurses
Association. The threat is the Interim Payment System, the
financial guidelines that businesses must abide by until the
real payment system kicks in October 1999.
http://www.amcity.com/denver/stories/1998/03/23/smallb1.html?h=long-termlcare 6/28/99
r Reform sparks concern-- The Denver Business Journal -- 1998-03-23 Page 2 of 3
"The goal [of the payment system] was to put 40 to 50
percent of the home-care agencies out of business," said
Loretta Warren, a behavioral specialist and interim director
at of Englewood-based Holistic Health&Homecare. "And
that is exactly what they are going to do."
Chris Dean, member services representative at the Home
Care Association of America in Jacksonville, Fla., said free-
standing, "mom and pop" agencies are at greatest risk.
The Interim Payment System sets per-beneficiary caps on
reimbursement rates. Until now, care givers received
Medicare funds based on the previous year's spending. The
more a company spent, the more it got the following year,
opening the door for fraudulent claims.
The Interim Payment System will pay care-providers a set
amount of money per patient, per year. This amount, which
HCFA has until April to announce, is calculated based on a
company's 1994 fiscal spending, a practice that does not
account for inflation or company growth, contend home-
care providers.
If a company was not operating in 1994, a figure based on
regional home-care Medicare expenditures will be used to
calculate reimbursement. Home-care agencies in the Denver
area are expecting to receive around $4,000 per patient fbr
the year, said Warren.
But this number is by no means set in stone, and waiting
until April for the Health Care Financing Administration to
let the cat out of the bag makes budgeting a financial
nightmare, said Martin.
If home-care agencies spend beyond the amount the Health
Care Financing Administration dictates, they must repay
Medicare.
Large home-health agencies can offset losses incurred by
patients needing more than$4,000 in care, because they also
have many healthy patients that require few care visits. But
for small organizations, spending far beyond what Medicare
will pay for one or two critically ill patients can bury them
financially.
"Some Medicare patients will cost you $4,000 in one
month," said Warren, whose agency serves 55 patients,
approximately 10 of whom are Medicare-covered. "The
http://www.amcity.com/denver/stories/1998/03/23/smallbl.html?h=long-term(care 6/28/99
Reform sparks concern-- The Denver Business Journal -- 1998-03-23 Page 3 of 3
caps are either going to make us or break us."
Sue Brown, nursing director at Argus of Colorado, a 375-
employee home-care company established in 1995, concurs
with Warren's concern regarding the payment cap.
"That $4,000 capitation is about 57 patient visits a year and
we've already provided more that that to some of our
Medicare patients," she said.
Home-care agencies are prohibited from denying additional
care to a patient, and are therefore helpless to prevent huge
losses. The practice, called patient dumping is happening
and will probably increase, said Julie Connor, chief
operating officer at Denver Homehealth Agency.
"People want to dump [those patients]," she said. "There is
going to be a lot of that, and it's illegal."
What care providers can, and are doing, is refusing to take
on new patients with extensive care needs.
A major problem for care providers is that patients can use
$4,000 worth of care at one agency and then move to
another and receive $4,000 more in care without the new
agency knowing the patients Medicare limit has been
reached. Whoever gets left holding the ball at the end of the
year has to pay. There is no way to track a patient's home-
care records.
It is a difficult dilemma for small home care businesses like
Martin's. Many, including Holistic Health&Homecare,
were founded by former hospital nurses. The owners are
often more concerned about their patients future than their
own.
"My primary concern is that we take care of the patients,"
said Martin. "If this was a perfect world, no one would get
sick and need home care, but real life is that your employees
want to be paid and if they want to be paid, we have to stop
seeing these patients."
For now, the only thing the agencies can do is wait.
"The unknown is the key word here," said Brown.
Week of March 23,1998 I Strategies in Small Business I Top of the papa
http://www.amcity.corn/denver/stories/1998/03/23/smallb1.html?h=long-termlcare 6/28/99
Dow Jones Interactive Publications Library Page 1 of 3
Article 12 Return to Headlines
Dow Jones Business News
Market Observers Expect Nursing Home Operators To Recover Slowly
By Raymond Hennessey, Staff Reporter
05/03/1999
Dow Jones Business News
(Copyright (c) 1999,Dow Jones & Company, Inc.)
NEW YORK-(Dow Jones)-Forget any miracle cure. Nursing homes are in for a long period of
convalescence.
Market talk was rampant a few months ago that the sector was ripe for large equity investments or
outright buyouts by venture capitalists and leveraged buyout firms.
Many investors had clung to this hope after reduced reimbursement from the federal government
led to a bloodbath in the shares of the companies, including Sun Healthcare Group Inc. (SHG),
Mariner Post-Acute Network Inc. (MPN) and Genesis Health Ventures Inc. (GHV). Such money
was seen as providing a spark, or at least some stability, in the stocks.
But Welsh Carson Anderson & Stowe's decision last month to cancel its $190 million buyout of
Centennial Healthcare Corp. (CTEN) dampened such enthusiasm and only served to highlight the
large problems many of these companies face.
Now, market observers are nearly unanimous that it will be a very long time before these
companies recover and investor confidence returns.
"This is a tough sector," said Robert Mains, an analyst with Advest Inc. "It's going to be tough for
a while."
The Centennial buyout, once pointed to as the best-case scenario to rescue these companies, fell
apart after the company disclosed that it was under federal investigation over its Medicare billing
practices.
Centennial isn't alone in being under federal scrutiny. Nursing home operators Beverly Enterprises
Inc. (BEV) and Vencor Inc. (VC) previously disclosed that they are the subject of investigations,
and Health Care Financing Administration head Nancy-Ann DeParle has made rooting out nursing
home fraud and abuse a top priority in her agency.
The specter of federal probes just adds to the other, more important challenge facing most nursing
homes: the reduction in Medicare reimbursement brought on by the Balanced Budget Act of 1997.
.../wsearch&binding=2079153&ST_STARTING_HD=20&Search=Long%20Term%20Care%20 6/28/99
Dow Jones Interactive Publications Library Page 2 of 3
The act ushered in the Prospective Payment System, or PPS, which essentially pays health-care
providers a fixed amount for services rendered, rather than reimbursing for actual costs incurred.
PPS has turned into Public Enemy No. 1 for nursing homes. Sun Healthcare, for example, has been
struggling to meet loan obligations because of deep losses brought on by PPS, and the company
expects its auditor 1.o raise questions about its ability to continue as a going concern.
•
Vencor, which itself got a "going concern" statement from its auditors, has also emerged as one of
the highest-profile companies with deep financial woes, mostly related to PPS.
The problems cut across the entire industry. Most observers now expect bankruptcy-protection
filings, both among the small, mom-and-pop facilities and the larger chains.
"This is a service business," said John Runningen, a principal and head of the health-care practice
group at Cordova Ventures. "If you don't bring in the money, you don't make payroll. If you don't
make payroll, you don't stay in business."
Normally, share prices at these levels - most publicly traded nursing home companies trade below
$10 a share -would invite leveraged buyouts, with firms taking the companies private until the
operating environment improves, then launching a new public offering when the time is right.
But buyout firms can't turn to their favorite bags of tricks to fix these companies.
For one thing, there's not enough management talent out there to replace these companies' exiting
leaders. Buyout companies would have to keep most of the existing management in place after a
takeover, said Howard Capek, an analyst with Credit Suisse First Boston.
Also, leveraged-buyout firms love to sell assets of the companies they take private, but that
wouldn't necessarily work with nursing homes. Nursing homes could sell off their pharmacy-benefit
or rehabilitation businesses, but not for prices that would make such sales worthwhile. "It's a
buyer's market right now," Capek said.
Nursing homes operate in a difficult regulatory environment, as well, Advest's Mains said. Whereas
a managed-care company like Oxford Health Plans Inc. (OXHP) can stem its losses by exiting
unprofitable markets, nursing homes would have a difficult time shutting down facilities to boost
profits because "the regulators would be on their backs in minutes," Mains said.
Add to that the limited growth prospects these companies have. Without acquisitions -• a strategy
all but ruled out by most of the players - nursing homes provide stable cash flow, but little, if any,
growth.
"A good nursing home is a full nursing home," Cordova's Runningen said. "But with a full nursing
home, you're not going to grow, and you're not going to be able to raise prices."
Without the capital from private firms, most investors will simply have to wait it out and hope the
operating environment improves somewhat, observers said.
On a positive note, there are signs that the operating environment may be changing for the better.
.../wsearch&binding=2019153&ST STARTING_HD=20&Search=Long%20Term%20Care%20 6/28/99
, Dow Jones Interactive Publications Library Page 3 of 3
For one thing, payments under PPS won't get any lower, said Jill White, director of the Schwab
Washington Research Group.
"It's very much like a poker game," White said. "They've been dealt their cards and now they have
to play their hands."
And there are signs that Congress and HCFA may ease the burden brought on by PPS. There is
growing acceptance that Congress overshot its mark on potential savings from long - term care
providers through PPS.
The Congressional Budget Office initially estimated that the Balanced Budget Act would save
Medicare $9.5 billion in long-term care costs from 1998 to 2002. Now, the CEO has revised that
figure to $16.6 billion, and, at a recent town hall meeting held by HCFA in Maryland, nursing home
companies demanded that the surplus be returned to them.
Congress, too, may take action, especially if high-profile bankruptcies begin popping up this year.
"Senators might have to do something if major employers in their states start failing because of
something they supported," Credit Suisse First Boston's Capek said.
Still, while a faint light at the end of the tunnel may be visible, it is still likely that a real turnaround
at these companies is far off. HCFA, while recognizing the problem PPS has brought on nursing
homes, is so tied up with rectifying its year 2000 computer problems that it has, in the meantime,
simply hired a consulting group to chart a possible course of action.
As a result, the agency doesn't see making any changes to PPS until October 2000.
Even an accelerated timetable, though, wouldn't be any catalyst for rapid appreciation in stock
price. "The problem with this industry," Advest's Mains said, "is that you can't turn on a dime."
-Raymond Hennessey; 201-938-5240;
raymond.hennessey@dowjones.com
Copyright(c) 1999 I)ow Jones & Company, Inc.
All Rights Reserved.
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Article 129 Return to Headlines
Investors fear long-term-care industry.
Scott Gottlieb
05/10/1999
American Medical News
COPYRIGHT 1999 American Medical Association. All Rights Reserved.
Gottlieb (sg2@doc.mssm.edu)is a fourth-year medical student at Mount Sinai in New York and a
former analyst for the Wall Street firm Alex Brown& Sons.
BACK IN 1994, BEFORE I TRADed in my gilded life on Wall Street for the austerity of medical
school, I witnessed firsthand the original swoon in the nursing home industry
At the time, the federal government was flirting with the idea of imposing new regulations on
nursing homes . If implemented, the new rules would cut reimbursements and shrink profits.
Professional investors wanted no part of it. Mutual funds and pension plans dumped shares in all
the leading operators, and stock prices tumbled as a result.
For bankers who worked with the nursing homes , however, the depressed stock prices created an
unprecedented opportunity While the rest of Wall Street was expecting the worst, we knew that
the federal government would have to find some middle ground. Bureaucrats couldn't simply stick
it to the nursing homes . The government was too dependent on them, since a large portion of
nursing home care is paid for by public funds. So we bought up large blocks of stock.
Six months later, when the federal government announced new reimbursement rates, Wall Street
breathed a sigh of relief. Stock prices rose handily And my colleagues pocketed a tidy profit.
No takers this time
THE FEDERAL GOVERNMENT IS once again threatening the $14 billion nursing home industry
with new mandates and lower reimbursements through its Medicare program. Professional
investors are dumping shares in each of the popular chains.
During the second half of 1998 alone, the long-term-care sector posted its worst performance in
recent history. The stocks of some nursing home chains, trading in the 30s just a year ago, are
worth only a few dollars now. This time around, however, it's hard to find anyone who is snapping
up cheap shares.
Only a few years ago, the field was being swept by mergers, acquisitions and high hopes. The
industry expanded rapidly and came to be defined not just by nursing homes , but also by long-
term-care facilities such as ARV Assisted Living and American Retirement Corp. Wall Street
investment groups bought all of these companies, attracted by the cash flow from serving a
swelling demographic group -- the elderly.
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But other trends lay in wait. Tough new state and federal scrutiny of operators posed hurdles.
These challenges were exacerbated when plaintiff lawyers began to train their guns on nursing
homes . Now the whole industry is scrambling to adapt to a complex and less-lucrative new
Medicare pay structure.
Until 1998, nursing homes were reimbursed directly for the patient care they provided. Like
hospitals and doctors before their payment reforms, nursing homes earned more money by
providing more services. Starting late last year, however, the government began paying operators a
fixed fee based on each patient's assumed needs. As a result, to the extent that a nursing home
could lower costs below the reimbursable rates, the provider could earn a profit. The majority of
operators, however, couldn't squeeze their expenses that low. As a result, they were hurt badly.
Although the "new" Medicare reimbursement system, called prospective payment, dates back to
1984, when it was first implemented for hospital inpatient services, it stirred increased nervousness
among investors. Faced with what represented the biggest change in the long-term-care industry
investors entered 1998 with a level of distinct trepidation.
Expected value uncertain
THE EVENT THAT TRIGGERED THE industry's tailspin last year was the announced earnings
shortfall by Vencor inc., the first,publicly traded company to have all of its facilities make the
transition into the new government payment scheme. It was seen as the guinea pig of the industry
A second event, and the one that represented the straw that broke the industry's back, was the
announcement by Beverly Enterprises that it was the target of a government investigation into its
Medicare billing practices. This announcement was particularly damaging to the overall group
because Beverly, with its low costs, was commonly seen as the most likely to succeed under the
new payment system.
What makes this story noteworthy is not the reason why investors have fled the industry but why
many say they will never be coming back.
Wall Street investors base their individual investment decisions on estimates of future earnings. To
describe the single most likely outcome, investors calculate what they call "expected value." The
expected value is the average of all possible return outcomes, where each outcome is weighted by
its respective probability of occurrence. This calculation includes a discount variable in order to
quantify and measure risk.
When events prevent investors from being able to accurately gauge even an average of their
possible returns, they understandably grow wary It's often said that Wall Street hates uncertainty
These days, nothing can be more uncertain than the precarious situation in which most nursing
homes find themselves.
Whereas investors once believed that the Medicare system would always allow nursing homes to
earn a fair rate of return, sentiment has shifted. Few in the investment community trust that the
government will maintain a steady and benevolent hand. Incredibly, many investors believe that the
government, in its zeal to save a buck, would starve the industry into bankruptcy, despite the
billions spent each year on long-term care. As a result, the overall risk profile of the entire nursing
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home industry has been raised, and all those neat profit formulas analysts had plugged into their
Lotus spreadsheets no longer line up.
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Article 6 Return to Headlines
Florida Regulators Prepare for Possible Financial Crisis at Nursing Homes
David Nitkin
06/24/1999
KRTBN Knight-Ridder Tribune Business News: The Orlando Sentinel -Florida
Copyright (C) 1999 KRTBN Knight Ridder Tribune Business News; Source: World Reporter
(TM)
TALLAHASSEE, Ea.--State regulators may have seen the leading edge of a nursing-home crisis
Wednesday when a company that owns six Florida homes filed for bankruptcy protection.
NewCare Health Corp. of Atlanta is one of five financially troubled nursing-home companies that
the state Agency for Health Care Administration has been monitoring for the past six months, since
stricter Medicare-reimbursement guidelines took effect.
NewCare is also the:former manager of Orlando's Princeton Hospital, which filed for Chapter 11
bankruptcy reorganization in January.
yz(k
NewCare and the feur other companies have seen their stock prices drop as the Medicare changes
roil the health-care business. Florida, with about 84,000 nursing-home beds and the nation's largest
elderly population, has been bracing for closings.
"This announcement today, although unfortunate, is not a surprise to us," agency director Ruben
King-Shaw said of NewCare's Chapter 11 filing.
NewCare, which operates 25 homes nationwide, told state officials that none of its Florida nursing
homes is expected to close as the company attempts to reorganize in federal bankruptcy court.
Still, state officials are preparing emergency plans in case the homes shut down or deteriorate.
"They do not expect a short-term interruption in services, but the best laid plans of mice, men and
nursing homes often go astray," King-Shaw said.
NewCare's Florida homes are in Dania, Tampa, Venice and Crawfordville, plus two in St.
Petersburg. The Dania and Tampa homes have been sold to another company but are not yet
relicensed, so the state still considers them NewCare properties.
"Having [new owners]Liberty Management Co. take us over was nothing but a blessing," said Tim
Shanks, administrator of the 88-bed Dania Nursing Home. While the home was closed by state
officials last year for unexplained injuries and weight loss among residents, it recently passed an
inspection with no citations, he said.
"We've come a long way in a year," Shanks said.
S / M NW0/4
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Article 8 Return to Headlines
Alabama health officials warns of harm to nursing home residents
By DAVID PACE
06/23/1999
Associated Press Newswires
Copyright 1.999. The Associated Press. All Rights Reserved.
WASHINGTON(AP) -An Alabama agency has warned federal health officials that some nursing
home residents could die if financial problems now plaguing nursing home chains across the
country force one of them to close all of its facilities in the state.
"We would be unable to effectively assure continued resident safety and protection from neglect,"
said Rick Harris, director of the Bureau of Health Provider Standards in the Alabama Department
of Public Health.
"It is highly likely that we would see adverse outcomes, including serious transfer trauma, and
possibly death," he said.
Harris'warning came in a letter this month to Sally Richardson, director of Medicaid and state
operations for the Health Care Financing Administration. It was in response to HFCA's directive to
states last month to develop contingency plans for dealing with multiple closures of nursing homes
should one of the big chains go under financially.
At least two of the financially troubled chains operate in Alabama. Vencor Inc. of Louisville, Ky.,
which has four nursling homes in Alabama, reported in April that it may not be able to stay in
business. The company missed a $14.8 million debt payment in May, and its stock was trading at
less than $1 a share before it was suspended from the New York Stock Exchange this month.
Sun Healthcare Group Inc. of Albuquerque,N.M., which operates five nursing homes in Alabama,
reported a $113 million loss in the first quarter of this year, compared with a profit of$18.4 million
a year earlier.
)4... Much of the financial difficulty facing the chains can be traced to Medicare spending cuts enacted
by Congress. Nursing homes in the past were reimbursed what they spent in rehabilitation care for
Medicare patients, but now the government is moving toward standardized daily payments, sharply
reducing revenue.
Harris'letter was released by Sen. Chuck Grassley, R-Iowa, chairman of the Senate Aging
Committee. Grassley has introduced legislation to protect quality of care for nursing home
residents when companies that operate nursing homes declare bankruptcy.
In an interview Wednesday, Harris said he doesn't think Alabama nursing home residents are at any
greater risk than those in other states because of the financial problems facing the large nursing
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home chains.
He said he wrote the letter to put HCFA on notice that the states cannot deal with a large scale
closing of nursing homes and that the federal government should begin taking steps to prevent it
from happening.
Harris said his agency, which inspects and monitors nursing homes for HCFA, doesn't have the
staff or resources to step in and keep facilities operating should there be multiple closures.
"In the worst case scenario, if a huge chain stopped making payroll and nursing homes shut down
massively across the country, we're not prepared to deal with that, our health care system is not
prepared," he said. "And it's not just in Alabama."
Mary Ann Holt, legislative director for the Alabama Nursing Home Association, said up to 95
percent of the available nursing home beds in Alabama already are taken, leaving little room to
move residents should several facilities be forced to close.
"On paper, I don't think it can be done," she said, "But we're all putting our heads together because
we have to have manpower to ensure residents' safety and health care. We're all worried about the
residents."
In his letter, Harris also warned HCFA that there is a "tremendous potential" for a deterioration of
health care provided to nursing home residents at facilities suffering financial difficulties.
"It is entirely predictable that corporate officials will divert resources away from care needs to
address pressing debt needs," he said.
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Article 45 Return to Headlines
Kentucky-.Based Long-Term-Care Provider Negotiates Restructuring Pact
Janet Patton
06/08/1999
KRTBN Knight-Ridder Tribune Business News: Lexington Herald-Leader-Kentucky
Copyright (C) 1999 KRTBN Knight Ridder Tribune Business News; Source: World Reporter
(TM)
Troubled long-term-care provider Vencor is negotiating a restructuring agreement that:will turn
ownership of much of the Louisville-based company over to its creditors and leave stockholders
out in the cold.
"Any such agreement is likely to result in existing Vencor stock having little if any value," said
Edward L. Kuntz, the chairman and CEO, in a news release yesterday.
Kuntz made similar comments at last month's annual shareholders meeting, said analyst Premila
Peters ofKDP Investment Advisors of Montpelier, Vt.
"The needs of the Vencor shareholders are certainly not on the table," Peters said. "There are a lot
of people losing a lot of money way ahead of the shareholders."
Those people include the banks, the bondholders and, most of all, Ventas Inc., the real estate
company spun off from Vencor last year to become its landlord.
Ventas owns the nursing homes and hospitals that Vencor operates.
"The primary creditors of the company will own substantial portions of the stock," said Richard
Lechleiter, Vencor vice president of finance. "The debt is being restructured and part of the debt is
being reduced."
All three parties-- Ventas, the banks and the bondholders--will make concessions as part of the
restructuring,Lechleiter said.
He declined to comment on scenarios going forward. But analysts said there are a couple of
possibilities:
Frank Morgan of J.C. Bradford of Nashville said Vencor might issue a lot of new stock, reducing
the value of existing stock, or it could wipe out existing stock and create new stock to give the
creditors. In the second option, "shareholders basically get nothing; the creditors, for taking a hit,
will get equity in the new entity," he said.
The debt holders have, indeed, taken a hit. Bondholders have lost nearly 80 percent of their original
investment, and bank noteholders have lost about 60 percent, Peters said.
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Shareholders of Ventas probably are already unhappy with the performance of their investment, she
said. And now, with Ventas as the largest creditor, they could wind up with a controlling share of
the nearly bankrupt Vencor. .
"It's going to be interesting. I It's not altogether impossible that Vencor and Ventas would
combine," Peters said.
Ventas CEO Debra A. Cafaro said a combination was not in line with her shareholders' interests
after Kuntz mentioned it as a possibility at the shareholders meeting.
Vencor's main financial obligation to Ventas is rent, about $221.5 million a year, on 210 nursing
centers and 45 hospitals, said Richard Riney, Ventas vice president. That accounts for 98.7 percent
of Ventas'yearly income. Riney would not comment on how much of Vencor the real estate
investment trust might eventually own.
Yesterday, both companies announced that they had agreed to let Vencor spread paying $18.9
million in May rent throughout June, and delay paying June rent until July 12.
Trading on Vencor was frozen yesterday, and trading Ventas was delayed until the afternoon.
Ventas closed up 6 cents at $5.40.
As part of yesterday's agreement Ventas agreed to hold off on pursuing other remedies, including
pushing Vencor into bankruptcy.
Despite the respite, Vencor shareholders are likely to be very unhappy about their situation,
unhappy enough to look for a lawyer, Peters said. "There are probably already lawsuits out there."
There are. One class-action suit, filed in Louisville, alleged that Vencor and its executives misled
the public, artificially inflated the value of the company by acquisitions and underestimated the
effect of Medicare changes. The suit was dismissed in January and has been appealed. Another suit
makes similar allegations against Vencor founder W. Bruce Lunsford, who has left Vencor but
remains chairman of'Ventas'board.
Ventas CEO Cafaro said in a statement yesterday that "Vencor's financial stability is clearly in the
best interests of the Ventas shareholders," and the company will continue trying to find a way to
satisfy Vencor's creditors short of bankruptcy.
Ventas, which has a 3275 million payment on its debt due in October, cannot afford to cut Vencor
too much slack.
At best, this latest extension will help Vencor stay afloat, said John Sico of Standard and Poor's.
"No one's filed voluntary or involuntary bankruptcy yet, and this kind of staves it off."
Vencor's other major creditors are its banks -- J.P. Morgan and Bank of America-- and its
bondholders.
Vencor owes the banks at least $770 million; $300 million in bonds are rated default, Sico said,
after Vencor failed to pay $15 million in interest in May.
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Vencor, and industry observers, have blamed the majority of the revenue shortfall on Medicare
reform, which they say cut reimbursements to providers much more severely than anticipated.
According to Vencor's 1998 annual report, the company lost $650 million last year, after coming
under the new payment structure in July, and has to repay$90 million to Medicare. _
That leaves Vencor very little wiggle room to recover from the combination of over-leveraging and
restricted reimbursements that have it choking with debt.
Analyst Howard Capek of Warburg Dillon Read in New York said that while Vencor's problems
are not unique in the nursing-home industry, the solution is a little unusual.
"I've never seen this;" Capek said. "Who's going to run the company? The REIT is not really an
operator of assets. II's a question of finding someone to run the company, either existing
management or from outside." ,
Either way, Vencor can truly recover only with changes to the Medicare reimbursement system, he
said.
"At the end of the day, the government reimbursement changes are what's driven companies to the
edge," Capek said. "You have to look at rate relief. The question is, how quickly can i1.come?
Does it happen now or after summer recess for fiscal year 2000 or even later?"
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Article 50 Return to Headlines
LONG TERM CARE/ASSISTED LIVING- NURSING HOMES : LEAVE PATIENTS
LINGERING IN HOSPITALS
06/07/1999
American Health Line
Copyright 1999 by National Journal Group Inc. All rights reserved.
Nursing homes are shunning elderly and disabled patients with "costly medical needs" because of
payment restrictions that went into effect under the Balanced Budget Act, the Washington Post
reports. As a result, "some patients are staying in hospitals much longer than necessary,and other
are being forced to enter nursing facilities far from their homes and families." Those most
frequently rejected by nursing homes include "patients requiring intravenous antibiotics, tube
feeding, dialysis and ventilator support" - all money-losing services under the BBA, according to
nursing homes officials. Under the new payment methodology, rates are "based on average
industry costs for different types of care" rather than the actual costs incurred. Some nursing
homes are now sending representatives to hospitals to screen patients, while others use the services
of Genesis Health Ventures, a drug supplier that screens patients for nursing homes and has, since
July, seen its screenings increase from 50 to 500 per week. "We know that most of those people
that we do that analysis for are not being admitted," said Genesis CEO Michael Walker. Although
federal law prohibit:, nursing homes from accepting some Medicare patients while rejecting others,
monitoring compliance is difficult, as nursing homes can assert that they lack the room or
• resources to care for certain patients. Currently, plans are underway at HCFA to conduct a study to
"assess beneficiaries' access to nursing homes ." "In some cases it may be appropriate for acutely
ill patients to spend a little more time in a hospital before being transferred to a skilled nursing
facility," said HCFA Administrator Nancy Ann DeParle (Hilzenrath, 6/7).
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Article 74 Return to Headlines
NewCare Health Corporation Announces Restructuring
05/24/1999 '
PR Newswire
(Copyright (c) 1999, PR Newswire)
ATLANTA, May 24 /PRNewswire/--NewCare Health Corporation(Nasdaq: NWCA), an
operator of nursing homes , assisted/independent living centers and hospitals, today announced a
corporate restructuring to reduce operating losses.
t
The Company has entered into a management agreement with Lenox Healthcare of Pittsfield,
Massachusetts, in which Lenox will be responsible for the ongoing operations commencing June 1,
1999. Lenox is a privately-held national provider of long-term healthcare facilities. Currently,
Lenox is involved in 73 facilities, comprising 8,388 beds/units and operating in 13 states. Lenox
will appoint two members to NewCare's board of directors, replacing two existing members, and
will acquire shares of common stock and warrants.
Chris Brogdon, Chairman and CEO of NewCare stated, "We look forward to a successful
relationship with Lenox Healthcare. NewCare will benefit greatly from Lenox's purchasing power,
systems and clinical controls. In addition, Lenox's per patient day costs are significantly less than
NewCare's, and I anticipate that we will begin to realize these cost savings during the third quarter.,3.4„ This is particularly important in light of the recent reduction in reimbursement for Medicare
patients in nursing homes ."Due to the nature of the management contract,NewCare expects to
ultimately realize an annual cost savings of$5,000;000 from reduced corporate overhead.
Separately, the Company through its affiliates has recently sold five facilities that lost in excess of
$2,000,000 during fiscal 1998. The proceeds of the sale will reduce debt by approximately
$21,500,000 and generate a non- cash gain on sale of assets of approximately $500,000. Mr.
Brogdon confirmed, "The sale of these facilities is consistent with the Company's strategy to
dispose of poorer performing facilities, while strengthening the balance sheet. This transaction
alone reduces long-term debt by more than 40%."
Headquartered in Atlanta, NewCare Health Corporation provides senior residential care services
including long-term care, assisted-living and independent-living. The Company's long-term care
facilities provide skilled nursing care and ancillary services, while its assisted/independent living
centers provide services to residents in need of varying degrees of assistance with the activities of
daily living. NewCare Hospital Corporation manages facilities that provide acute, rehabilitation and
skilled nursing care for its patients.
Statements contained in this press release, which are not historical facts, may be forward-looking
statements within the meaning of the federal law. Such forward-looking statements reflect
management's beliefs and assumptions and are based on information currently available to
management. The forward-looking statements involve known and unknown risks, uncertainties and
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Article 86 Return to Headlines
BUSINESS
Nursing home operator laying off 7,300 workers
MARY SIT-DUVALL
05/19/1999
Houston Chronicle
3 STAR
Page 5
(Copyright 1999)
ATLANTA- One of the nation's largest nursing home operators says deep cuts in Medicare
reimbursements forced 7,300 layoffs.
Atlanta-based Mariner Post-Acute Network, which also announced a second-quarter loss of about
$79 million on Monday, said the layoffs will occur in the 29 states it operates.
Mariner, which has 400 nursing homes with 50,000 beds, plans to eliminate 11 percent of the jobs
in its work force of 65,000.
"About 300 (layoffs) are corporate, the rest are rehabilitation therapists," company spokeswoman
Kym Spell said Tuesday. "We are not closing any homes."
I
The company has 19 nursing homes in Houston. None of the local staff will be laid off, Spell said.
Most of those laid off are physical therapists who work at the company's subsidiary, Prism Rehab
Systems. By canceling its contracts with long-term care facilities, including Mariner's facilities,
Prism is closing its contract therapy business.
In Texas, 269 Prism therapists are being laid off, along with 25 corporate administrative
employees.
On the news, Mariner stock tumbled 9/16, or 20 percent, to 2 1/8 on the New York Stock
Exchange.
Mariner officials cited Medicare caps on the amount of physical, occupational and speech therapy
patients can receive in a year in its decision to close the Boston-based Prism.
"These were dedicated employees providing superb rehabilitative care to thousands of Medicare
beneficiaries," said Keith B. Pitts,Mariner's chairman and CEO. "These were difficult decisions for
our company, but the government's cuts left us no other choice.
Nursing homes nationwide are reeling from Medicare changes in which they get paid fixed daily
fees for treating patients rather than being reimbursed for the actual cost to the nursing home.
MRIJe
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Mariner says it now receives $90 a day less per customer.
Mariner was formed last year in a merger between Atlanta-based Paragon Health Network and
Mariner Health Group of Connecticut. The bulk of its operations are in Texas, California,Florida
and North Carolina.
The layoffs are expected to be complete by May 31.
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Article 99 Return to Headlines
Nursing Home Woes Prompt HCFA Advisory.
05/17/1999
Medicine & Health
Copyright 1999 Information Access Company. All rights reserved.
Prodded by Sen. Charles Grassley(R-IA),HCFA notified state Medicaid agencies in a May 7 letter
that they must have contingency plans to handle multiple closures of nursing homes and hospitals,
including a process to identify beds to which residents can be relocated if necessary.
Also, amid rumors that one or two big nursing home chains may file for bankruptcY in the
aftermath of prospective payment for skilled nursing facilities, Grassley is offering a bill.(S. 840)
that would require appointment of an ombudsman to represent patients'interest in a bankruptcy
proceeding. "The appointment of an ombudsman should balance the interests between the creditor
and the patient," Grassley said.
But he warned against a "thoughtless bailout" that increases skilled nursing facility payment before
identifying why certain companies are in trouble. While SNFs lost$7 billion more than they were
supposed to under the Balanced Budget Act according to some industry analysts, "applies to
apples" comparisons of CBO baselines show that the Medicare Part A baseline for skilled nursing
facilities has decreased by "only $200 million over five years," Grassley said.
•
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Article 117 Return to Headlines
Lower Medicare Payments Force Bellevue,Wash.-Based PeaceHealth to Streamline
Janet Flips
05/12/1999
KRTBN Knight-Ridder Tribune Business News: The Register Guard -Eugene, Oregon
Copyright(C) 1999 KRTBN Knight Ridder Tribune Business News; Source: World Reporter
(TM)
Positions eliminated Not workers laid off.
That's the message PeaceHealth tried to extend to its 3,500 employees and the community on.
Tuesday as supervisors at Sacred Heart Medical Center and PeaceHealth clinics finished breaking
the bad news:
1 Sixty-nine positions axed, including two complete departments. Thirty-five workers with their
work weeks cut four to six hours. Red ink projected for the hospital between now and June 30, the
end of the first fiscal year rocked by lower Medicare payments that were part of the federal
Balanced Budget Act of 1997.
Curt Roberts, chief executive officer for Peacellealth Oregon Region, blamed the budget problems
on a 2.5 percent to 2.8 percent drop in payments for Medicare patients and a 30 percent jump in
• spending on medical and surgical supplies, prosthetics, implants and drugs. The soaring spending
on supplies far exceeded the 7 percent increase that had been budgeted.
The double-whammy was enough to push the hospital's financial situation "from moderately in the
black, to definitely in the red,"Roberts said.
Meanwhile, the fortunes of the PeaceHealth clinics -- a longtime money loser--improved $2
million this year,Roberts said, boosting it to nearly the break-even point.
Overall,PeaceHealth in Eugene and Springfield is looking at a 4.3 percent operating deficit this
fiscal year, and a$1.8 million loss. The system needs to close a $17.9 million gap in wort year's
budget, the second in five years of Medicare cuts, Roberts said.
The health care giant intends to close that gap through a combination of more revenue from
increased business;trimming supply costs; reducing fees paid to outside medical and service
professionals; and reducing employees.
On Monday and Tuesday, Peacellealth announced these changes:
-- Closing PeaceHealth Medical Group's research department, which since 1993 has conducted
drug trials for pharmaceutical companies. For the past 11 months, the cost of conducting the
studies has exceeded the payments from drug companies. PeaceHealth felt it could cut that
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VENTAS INCORPORATED •
Pricing History Report
Symbol: VTR
CUSIP Number: 92276F10
Exchange: New York
Type: Common
Currency:
Weekly Prices From: 7/4/1997 to 6/25/1999
Adjusted for stock dividends and stock splits as of 6/25/1999
Price Symbol:VTR
30
n S Si F .� M
rti PC: h - m C} +Y ?S". (S+l : M Cz
• N ... r< v Cr 4'? • C.
¢, 'o` Nc' C.
Volume • Symbol: VTR
unions of shares
5
p . .
11i11EC 1
T;
ka3 C3 03 03
.N ROOft Modify Repii.rt Cato:ia
Copyright O1999 Dow Jones& Company, Inc. All Rights Reserved.
.../1999&sampleCount=30&sampleInterval=Daily&span=Week&money--CAR&adjustment=on& 6/28/99
Dow Jones Interactive Quotes&Market Data Page 1 of 1
NEWCARE HEALTH CORPORATION
Pricing History Report
Symbol: NWCAQ
CUSIP Number. 65105310
Exchange: NASDAQ SmallCap Market
Type: Common
Currency:
Weekly Prices From: 7/4/1997 to 6/25/1999
Adjusted for stock dividends and stock splits as of 6/25/1999
Price Symbol: NWCAQ
50
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thousands of shares
0
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Copyright O1999 Dow Jones& Company, Inc. All Rights Reserved.
/1999&sampleCount=30&sampleInterval=Daily&span=Week&money=CAR&adjustment=on& 6/28/99
• Dow Jones Interactive Quotes&Market Data Page 1 of 1
CENTENNIAL HEALTHCARE CORPORATION .
Pricing History Report
Symbol: CTEN
CUSIP Number: 15093710
Exchange: NASDAQ National Market
Type: Common
Currency:
Weekly Prices From: 7/4/1997 to 6/25/1999
Adjusted for stock dividends and stock splits as of 6/25/1999
Price Symbol: CTEN
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Volume Symbol: CTEN
moons of shares
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.../1999&sampleCount=_t0&sampleInterval=Daily&span=Week&money=CAR&adjustment=on& 6/28/99
Dow Jones Interactive Quotes&Market Data Page 1 of 1
GENESIS HEALTH VENTURES INCORPORATED
Pricing History Report
Symbol: GHV
CUSIP Number 37191210
Exchange: New York
Type: Common
Currency:
Weekly Prices From: 7/4/1997 to 6/25/1999
Adjusted for stock dividends and stock splits as of 6/25/1999
Price Symbol: GHV
30
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Volume Symbol: GHV
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Copyright O1999 Dow Jones& Company, Inc. All Rights Reserved.
.../1999&sampleCount=30&sampleInterval—Daily&span----Week8cmoney=CAR&adjustment=on& 6/28/99
Dow Jones Interactive Quotes&Market Data rage 1 of 1
MARINER POST-ACUTE NETWORK I
Pricing History Report
Symbol: MPN
CUSIP Number: 56845910
Exchange: New York
Type: Common
Currency:
Weekly Prices Frorn: 7/4/1997 to 6/25/1999
Adjusted for stock dividends and stock splits as of 6/25/1999
Price Symbol: MPN
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Volume Symbol: MPN
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/1999&sampleCount=30&sampleInterval=Daily&span=Week&money—CAR&adjustment=on& 6/28/99
Dow Jones Interactive Quotes&Market Data Page 1 of 1
SUN HEALTHCARE GROUP INCORPORATED
Pricing History Report
Symbol: SHG
CUSIP Number: 86693310
Exchange: New York
Type: Common
Currency:
Weekly Prices From: 7/4/1997 to 6/25/1999
Adjusted for stock dividends and stock splits as of 6/25/1999
Price Symbol: SHG 25 �\`.{\,Arla n\\ � \a\\'C \\ ` '•-E, \i\\N\\ \
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Volume Symbol: SHG
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Copyright O1999 Dow Jones 8 Company, Inc. All Rights Reserved.
/1999&sampleCount=_f0&sampleInterval=Daily&span=Week&money—CAR&adjustment=on& 6/28/99
• Dow Jones Interactive Quotes &Market Data Page 1 of 1
ARV ASSISTED LIVING INCORPORATED
Pricing History Report
Symbol: SRS
CUSIP Number: 00204C10
Exchange: American
Type: Common
Currency:
Weekly Prices From: 7/4/1997 to 6/25/1999
Adjusted for stock dividends and stock splits as of 6/25/1999
Price Symbol: SRS
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Volume Symbol: SRS
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Novtepft Modify Report Cdterix
Copyright O 1999 Dow Jones & Company, Inc. All Rights Reserved.
.../1999&sampleCount=30&sampleInterval=Daily&span=Week&money=CAR&adjustment=on& 6/28/99
. Dow Jones Interactive Quotes&Market Data Page 1 of 1
AMERICAN RETIREMENT CORPORATION
Pricing History Report
Symbol: ACR
CUSIP Number: 02891310
Exchange: New York
Type: Common
Currency:
Weekly Prices From: 7/4/1997 to 8/25/1999
Adjusted for stock dividends and stock splits as of 6/25/1999
Price Symbol: ACR
20 it F SJ,d"3k Xfi`.$
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Volume Symbol: ACR
maims of shares
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Copyright O1999 Dow Jones& Company, Inc. All Rights Reserved.
:./1999&sampleCount=30&sampleInterval=Daily&span=Week&money=CAR&adjustmem—on& 6/28/99
Dow Jones Interactive Quotes&Market Data rage i of i
BEVERLY ENTERPRISES INCORPORATED: COM NEW
Pricing History Report
Symbol: BEV
CUSIP Number: 08785130
Exchange: New York
Type: Common
Currency:
Weekly Prices From: 7/4/1997 to 6/25/1999
Adjusted for stock dividends and stock splits as of 6/25/1999
Price Symbol: BEV
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Volume Symbol: BEV
millions of shares
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.New Report Mod€3y t�eport Gtlteria
Copyright O1999 Dow Jones& Company, Inc. All Rights Reserved.
.../1999&sampleCount=:i0&sampleInterval=Daily&span=Week&mone}--CAR&adjustment=on& 6/28/99
Quick Stats
+ 's " Thursday July 15,1999
9888 Carroll Centre Rd.Suite 100,San Diego,CA 92126 (619)578-3000 (800)821-1573 Licensed by:Real Estate Tax Services
Nursing Home Sales Comparables
STATISTIC AVERAGE MEDIAN COUNT
Sales Price: $3,095,530 $2,881,100 10
Square Feet: - - -
Cap Rate: - - -
Gross Multiplier: - - -
Price/Square Foot: - - -
Units: 76 81 10
Price/Unit: $41,675 $41,515 10
Total Volume: $30,955,300 Total Transactions: 10
The information contained herein has been received from what are believed to be reliable sources but no guarantee a,to its accuracy is expressly or implicitly made by COMPS InfoSystems,Inc®.COMPS is a hadernadc of COMPS
InfoSystems,Inc.Reproduction in any form without the expressed written consent of COMPS hdoSystms,Inc.is prohibited.All rights reserved.Copyright 1997 by COMPS hnfoSyatena,Inc.
•
... Quick Comp Report
COMPS ' Thursday,July 15,1999
Page 1
9888 Carroll Centre Rd.Suite 100,San Diego,CA 92126 (619)578-3000 (800)821-1573
Licensed by:Real Estate Tax Services
NURSING HOME COMP#: JFC-54893-11-97
7720 Allison St.
Arvada,CO 80005
Assessor#: 29-352-01-014 Map: 12-D
Sale Price: $2,910,000 Recording Date: 08/29/97
SqFt: 30,186 6/SqFt: $96.40
Units: 50 S/Unit: $58,200
Cap Rate: 0.00% Zoning: B-2,ARVADA
Legal: Lot 1 Marshalls Indian Tree Center
filing#3 Photograph not available
Seller: Sterling House Corporation,Doug Rupe
(316)684-8300
Buyer: LTC Development Co.,Inc.,Paul Parker
(503)254-4990
Down Payment $0
Financing LTC Properties
Bak$2,910,000
42-BED NURSING HOME* COMP it: ADC-54378-08-97
2215 Eghert St.
Brighton,CO 80601
Assessor#: 1569-08-1-05-071 :vlap: 203-B
Sale Price: $2,350,000 Recording Date: 07/11/97
SqFt: 20,000 6/SgFt: $117.50
Units: 42 6/Unit: $55,952
Cap Rate: 0.00% Zoning: PUD,BRIGHTON
Legal: Lot 2 East Ridge PUD being
por of NE4 sec 8 T1S R66M'
Photograph not available
Seller: Glenwood Development LLC,Steven Vick
(316)684-8300
Buyer: Nationwide Health Properties,Inc.,Gary Stark
(714)251-1211
Down Payment $2,350,000
Financing Not Applicable: all cash sah:
Bal:$0
Nursing Home/Convalescent Hospital COMP#: BDC-5 802 1-1 1-9 8
2240 Pratt St
Longmont,CO 80501
Assessor it: 1205272-10-002 .Slap: 6-G
Sale Price: $2,450,000 Recording Date: 04/03/98
SqFt: 23,315 S/SqFt: $105.08
Units: 44 S/Unit: $55,682
Cap Rate: 0.00% Zoning: C-2,Longmont
Legal: Lot 1 Horizon Park Shopping Center
Replat F Resubdiv of par 4 ieplat Photograph not available
Seller: Sterling House Corp IL Gail Knott
(316)684-8300
Buyer: LTC Development Co.,Inc. Rae d Shawaf
(805)981-8655
Down Payment N/Av
Financing LTC Properties
Hal: $2,470,000
The information contained herein has been received from what are believed to be reliable sources but no guarantee as to its accuracy is expressly or implicitly made by COMPS nfoSysems,Inc®.COMPS is a trademark of COMPS
InfoSystems,Inc.Reproduction in any fomi without the expresseed written consent of COMPS InfoSystems,Inc.is prohibited.All rights reserved.Copyright 1997 by COMPS InfoSystems,Inc.
COMPS` Quick Como Report
Thursday,July 15,1999
Page 2
9888 Carroll Centre Rd.Suite 100,San Diego,CA 92126 (619)578-3000 (800)821-1573 Licensed by:Real Estate Tax Services
Nursing Home/Convalescent.Hospital COMP#: APC-31309-09-98
656 Dillon Way
Aurora,CO 80011
Assessor if: 1975-06-3-03-026 ]dap: 66-D
Sale Price: $6,620,000 Recording Date: 06/05/98
SqFt: 36,307 $/SgFt: $182.33
Units: 120 :6/Unit: $55,167
Cap Rate: 0.00% Zoning: R-0/R2-M/Aurora
Legal: Por SE4 sec 6 T4S R66 W;por trts
2,3 Chamber Heights 7th Fl1:;por Photograph not available
Seller: IHS Acquisition No 101,Inc. Daniel J.Booth,Sr.
Buyer: Peak Medical of Colorado,Inc. Chuck Gonzales-Horizon Health C
(505)342-0235
Down Payment $6,620,000
Financing Private
Bal:$18,396,615
NURSING HOME COMP#: EPC-53931-07-97
2438 Fountain Bl.
Colorado Springs,CO 80910
Assessor 14: 64214-15-01(1 Map: 53-KM154
Sale Price: $3,689,000 :Recording Date: 04/04/97
SqFt: 26,730 :6/SqFt: $138.00
Units: 82 :6/Unit: $44,987
Cap Rate: 0.00% Zoning: R5,COLORADO SPRI
Legal: Blk 9 of blks 1 thru 9 Prospect
ParkSubdiv#z Photograph not available
Seller: John W.Heard,
(719)634-6161
Buyer: FBTC Leasing Corp.,Carl Marc Antonio
(212)898-2439
Down Payment N/Av
Financing Living Centers Holding Tms:
Bal:$97,000,000
NURSING HOME COMP#: EPC-53930-07-97
1795 Monterey Rd.
Colorado Springs,CO 80910
Assessor#: 64281-06-04(1 Map: 53-KM155
Sale Price: $4,070,700 Recording Date: 04/04/97
SqFt: 31,752 6/SqFt: $128.20
Units: 107 6/Unit: $38,043
Cap Rate: 0.00% Zoning: OC,COLORADO SPRI
Legal: Lot 4 blk 1 Monterey Office
Park Photograph not available
Seller: John W.Heard,
(719)634-6161
Buyer: FBTC Leasing Corp.,Carl Marc Antonio
(212)898-2439
Down Payment N/Av
Financing Living Centers Holding Trust
Bal:$97,000,000
the information contained herein bar been received from Mast are believed to be reliable sources but no guarantee as to its accuracy is expressly or implicitly made by COMPS hifoSystmu,be®.COWS is a trademark of COMPS
InfoSystane,Inc.Reproduction in any form without the expressed written consent of COMPS InfoSystens,Inc.is prohibited.AD rights reserved.Copyright 1997 by COMPS w Systems,Inc.
Quick Comp Report
�[ Thursday,July 15,1999
Page S
9888 Carroll Centre Rd.Suite 100,San Diego,CA 92126 (619)578-3000 (800)821-1573
Licensed by:Real Estate Tax Services
NURSING HOME COMP#: EPC-53934-07-97
1340 E.Fillmore St
Colorado Springs,CO 80907
Assessor#: 63324-02-051 Map: 42-KL150
Sale Price: $2,862,200 Recording Date: 04/04/97
SqFt: 20,660 3/SqFt: $138.53
Units: 79 $./Unit: $36,230
Cap Rate: 0.00% Zoning: R4-CR,COLORADO SP
Legal: Lot 1 Colonial Columns Hes Ith
Care Subdiv Photograph not available
Seller: John W.Heard,
(719)634-6161
Buyer: FBTC Leasing Corp.,Carl Marc Antonio
(212)898-2439
Down Payment N/Av
Financing Living Centers Holding Trus'.
Bal: $97,000,000
103-BED NURSING HOME* COMP#: BDC-54792-10-97
1444 Coffman St.
Longmont,CO 80501
Assessor#: 1205342-40-002 Map: 8-A
Sale Price: $2,900,000 Recording Date: 08/05/97
SqFt: 35,337 ,≥/SgFt: $82.06
Units: 103 3/Unit: $28,155
Cap Rate: 0.00% Zoning: CM,LONGMONT
Legal: All lots 1 thru 5,12 thru 16
(exc E 100'of lot 12&exc Photograph not available
Seller: Longmont Healthcare Investors,UP,David Beardsley
(770)392-0032
Buyer: Heights Healthcare Company LLC,David Von
(813)651-4184
Down Payment $0
Financing GMAC
Bal:$2,900,000
NURSING HOME COMP#: EPC-53933-07-97
924 W.Kiowa St.
Colorado Springs,CO 80905
Assessor#: 74131-05-001 Map: 52-1O153
Sale Price: $2,353,400 Recording Date: 04/04/97
SqFt: 25,317 :1/SqFt: $92.95
Units: 92 IB/Unit: $25,580
Cap Rate: 0.00% Zoning: CU,COLORADO SPRI
Legal: Por NW4 NE4 sec 13 T14S R67W
Photograph not available
Seller: John W.Heard,
(719)634-6161
Buyer: FBTC Leasing Corp.,Carl Marc Antonio
(212)898-2439
Down Payment N/Av
Financing Living Centers Holding Co.
Bal:$97,000,000
The information contained herein has been received from what are believed to be reliable amnms but no guarantee as to its accuracy is expressly or implicitly made by COMPS InfoSysterns,Ince.COMPS is a trademark of COMPS
InfoSyatexs,Inc.Reproduction in any form without the expressed written consent of COMPS In oSystens,Inc.is prohibited.All rights reserved.Copyright 1997 by COMPS InfoSystens,Inc.
'COMPS' , Quick Comp Report
Thursday,July 15,1999
.:.. ... :. .......... . . Page 4
9888 Carroll Centre Rd.Suite 100,San Diego,CA 92126 (619)578-3000 (800)821-1573 Licensed by:Real Estate Tax Services
NURSING HOME/CONVALESCENT COMP#: JFC-5 5 82 6-02-9 8
3315 Sheridan BI.
Denver,CO 80212
Assessor#: 39-251-12-005 Map: 20-C
Sale Price: $750,000 Recording Date: 11/04/97
SqFt: 12,723 S/SqFt: $58.94
Units: 40 .i/Unit: $18,750
Cap Rate: 0.00% ;:oning: IA,JEFFERSON COUN
Legal: Lots 12,13,14&S 2'lot 15
subdiv ofblk 5 Columbia Heights; Photograph not available
Seller: Iutera Willowbrook LLC,Haney&Co.
(816)822-2828
Buyer: Peter J.Madigan,David Johnson
(714)553-9440
Down Payment N/Av
Financing Monarch Capital
Bal:$1,000,000
The information contained herein has been received from what are believed to be reliable sources but no guarantee as to its accuracy is expressly or implicitly made by COMPS lnfoSysWne,boat.COMPS is a tradmnuk of COMPS
InfoSystans,Inc.Reproduction in any form without the captessed written consent of COMPS 1nfoSyebms,Inc.isprohibited AR rights n,..ved.Copyright 1997 by COMPS InfoSystems,Inc
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