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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 {{,,�� 1r L1F8f �! 'aurora the �l d �1� 'y DeX The Denver Rusin* en Journal HCSTYE tL+CNIACF 'fl E %[ RA fl (at COTMAR P f)lf&rJAALS . `x(.RRGbf WE2 LINN. < Book of t_is's March 23, 1998 o n Di,,k k 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. Display as: Full Article ............ ... __,., ,._,_„_ Return to Headlines Ft)a'FM t ref P iI?tiFYI;' .. Copyright®1999 Dow Jones& Company, Inc. All Rights Reserved. .../wsearch&binding=2079153&ST_STARTING_HD=20&Search=Long%20Term%20Care%20 6/28/99 Dow Jones Interactive Publications Library Page 1 of 3 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. .../isearch&binding=206:5561&ST STARTING_HD=130&Search=%28Nursing%20Homes%29 6/28/99 Dow Jones Interactive Publications Library Page 2 of 3 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 .../isearch&binding=2065561&ST_STARTING HD=130&Search=%28Nursing%20Homes%29 6/28/99 Dow Jones Interactive Publications Library Page 3 of 3 home industry has been raised, and all those neat profit formulas analysts had plugged into their Lotus spreadsheets no longer line up. Display as: Full Article Return to Headlines Format Fm Punta Copyright® 1999 Dow Jones& Company, Inc. All Rights Reserved. .../isearch&binding=2065561&ST_STARTING HD=130&Search=%28Nursing%20Homes%29 6/28/99 Dow Jones Interactive Publications Library Page 1 of 2 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 .../isearch&binding=206'561&ST_STARTING_HD=10&Search=%28Nursing%20Homes%29%6/28/99 Dow Jones Interactive Publications Library Page 1 of 2 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 .../isearch&binding=2065561&ST_STARTING_HD=10&Search=%28Nursing%20Homes%29%6/28/99 Dow Jones Interactive Publications Library Page 2 of 2 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. Display as: Full Article Return to Headlines Parma or Print n Copyright®1999 Dow Jones& Company, Inc. All Rights Reserved. .../isearch&binding=2065561&ST_STARTING_HD=10&Search=%28Nursing%20Homes%29%6/28/99 . Dow Jones Interactive Publications Library Page 1 of 3 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. .../isearch&binding=2065.561&ST STARTING_HD=50&Search=%28Nursing%20Homes%29%6/28/99 Dow Jones Interactive rubncauons Library rage A or 3 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. .../isearch&binding=2065561&ST_STARTING_HD=50&Search=%28Nursing%20Homes%29%6/28/99 . Dow Jones Interactive Publications Library Page 3 of 3 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?" Display as: Full Article Return to Headlines • Format For Fretting Copyright O1999 Dow Jones& Company, Inc. All Rights Reserved. .../isearch&binding=2065561&ST STARTING_HD=50&Search=%28Nursing%20llomes%29%6/28/99 i . Dow Jones Interactive Publications Library Page 1 of 1 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). Display as: Full Article Return to Headlines fvnut Fw prim€1nn Copyright O 1999 Dow Jones & Company, Inc. All Rights Reserved. .../isearch&binding=2065561&ST_STARTING HD=50&Search=%28Nursing%20Homes%29'/06/28/99 • Dow Jones Interactive Publications Library Page 1 of 2 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 .:./isearch&binding=2065561&ST_STARTING_HD=80&Search=%28Nursing%20Homes%29%6/28/99 i . Dow Jones Interactive Publications Library Page 1 012 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 .../isearch&binding=2065561&ST_STARTING_HD=90&Search°%28Nursing%20Homes%29%6/28/99 i Dow Jones Interactive Publications Library Page 2 of 2 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. Display as: Furl Return Ito Headlines CraritTh Copyright 01999 Dow Jones 8 Company, Inc. All Rights Reserved. % I .../isearch&binding=2065561&ST_STARTING III =90&Search-%28Nursing%20Homes%29%6/28/99 i Dow Jones Interactive ruoncauons Liorary rage i or i 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. • Display as: Fir Return 1:o Headlines fa st For Prir gng Copyright O1999 Dow Jones& Company, Inc. All Rights Reserved. .../isearch&binding=206'_561&ST_STARTING_HD=100&Search=%28Nursing%20Homes%29 6/28/99 . Dow Jones Interactive Publications Library rage i or s 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 .../isearch&binding=2065561&ST_STARTING HD=120&Search=%28Nursing%20Homes%29 6/28/99 Dow Jones Interactive Quotes&Market Data rage i or i 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 ».!7 'E�n N���i�t➢ �W?i '�1E3��ttY t.2dtn,*a, a��\����aa\ .y SF \ y v • c€ r? Volume Symbol: NWCAQ thousands of shares 0 C C C zz r § C Ci g E § nl tr. h. 15S v [C New REluxt trItA#i+1y he orl,Cede;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 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 \ c fi� 6 g . 9 Volume Symbol: CTEN moons of shares 2.5 2D r•E \ \ is \ ,\ \ \ 4. S t a \ 0.5 r` 0.0 �. . . �. .. "` .. . .. 2g%T a) al e c le G c t. „ .. .: M 2 c: fc. ix' {:i '.. S! V 'a) 'NO*tepott' Modify R4q rt CSlteria Copyright O 1999 Dow Jones& Company, Inc. All Rights Reserved. .../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 S is $ 1 I F I I N I E F4 : r e. m g rw r: h €' h: _ 2 (�i L� T C' C• Volume Symbol: GHV mians of stores 2.0 P r. r, c C, $ .fir 4 e E c n W Ca u N Report Modify Report Coseria 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 25 ,�\\ sko is aSw re46 fv M. Volume Symbol: MPN mions of shares 41) r a �\ 3.0 2.0 � in 'y k f n r N C a 5 ix !a 5 Ei C /I Nn n v Need Report Muxtily Report Ctltet a. Copyright 0 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 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\\ \ REPS `i • R+N v��ai A\ s."* �x4 Ai:�v:k v ��� .:.::H.• ,'''‘•-•-• ��3.k . t � .,V.. ' V�Avg ' , Tip \\ O.+*�..\ ifl �vv '"i v Y V Av y •:tg aeh v ` •,s c c: a. o' er 0 '3 n If) N 0 V Cr Volume Symbol: SHG millions of shares 30 \\a\ as \ > > ` \ iJ e s3 LI Ni ry n {c c ' w � 3 ". how Report modify Refxwr oitoria 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 :d �.� \ te \ C \`C�\s# � .Z�.\\O; . \ i• �\\ v ` \v Aw V0�6AAyA ElY Srts 1. y? 46 Volume Symbol: SRS millions of shares i s \ 0.0 g; rnrz C r: ni ,- C o :e zz C .: N o i4;,„ Cwt 5K, 1� 4! O is 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`.$ 12 \ i0 n c 45 _.: M ^J�'� � n L': h Q Volume Symbol: ACR maims of shares 5 tp € 0.5 OD g� g1 ga N N i? oS 4 a c3 in M e3 u. u Pity Rf ort Mod fly Report ttiterda 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 18 ;\+11qvv� y vv�v���c �����vvV yV iii �aZ1\���\�, \ \;��\� G� l.m.• •\ \x i 4 A ��,; Yv� acs cL p IP 12 ill V. A .,,,.. ..:f•: ',n•:: <,.A A �A ., �iL �� ¢ v v� vv v1• v 'tesa g�_ x, F , x, :i 20 # M e6e 6 W ill E—• M 4.k y r; e.: v (*, ate': • h L. f co ti' L Volume Symbol: BEV millions of shares 10.0 \. p•:-..•,::,'•\i•<:,.-n:4::•:',.. .'•: ::::•:•'•'::---•i,.:,,,.:.:.._ ,\ 8.0 , 8.0 . . ` (_ - :; 511 gi 61 011 { 4 § § § g g § '. :t1 1: n - ;g C' • 4 A 0P. till. ¢. ru m. R. v r:: .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 Hello