Franciscan Care Center Acquisition Overview

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Franciscan Care CenterAcquisition Overview

• April 24, 2014

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Genesis HealthCare
Genesis HealthCare is the nations largest
long-term care provider.

• Genesis operates over 400 skilled nursing and
  assisted living facilities in 28 states from
  coast to coast.
• Genesis Rehabilitation Services (GRS) serves
  nearly 1,500 providers in 46 states plus the
  District of Columbia.
• Focused on higher acuity medically complex
  patients.
• A team of approx. 80,000 employees.

www.genesishcc.com
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The Changing Face of Long-Term Care

• Over 90 of patients are admitted after an acute
  medical hospitalization.
• We are seeing patients younger than 65 years old.
• 60 of patients return home or to the community
  within 24 days.
• We are seeing an increasing number of short-stay
  patients with decreasing lengths of stay.
• Patients require complex medical care previously
  provided only in a hospital.
• Greater number of patients require rehab therapy.

Based upon Genesis legacy facilities and does
not incorporate Sun Healthcare.
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Acquisition Overview

• Genesis to acquire the operations of Franciscan
  Care Center through a wholly owned subsidiary
  100 St. Claire Drive Operations LLC
• Financing Health Care REIT
• Strategic focus Higher acuity skilled nursing
  services including short stay rehabilitation,
  wound care, IV therapy, etc.
• Renovation plans Cosmetic upgrade of entire
  center

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Health Resources Mgmt Plan

• Balance of access, cost and quality
• Facilitate a network of providers
• Discharge to community rates gt60
• Reduced hospital readmissions - lt11
• Medical indigency
• History of service to Medicaid residents in both
  SNF and ALF settings in excess of 50 in every
  Genesis facility in the state.
• No change budgeted in Medicaid rates at
  Franciscan Care Center, other than the inclusion
  of the new Delaware provider tax
• Coordination of health delivery
• Care Line
• External Care Coordinators
• Depth of experience with other providers in the
  market

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Health Resources Mgmt Plan

• Shared resources
• Internal regional and corporate support
• Industry wide - strong relationships with acute
  care, tertiary care and community based services
• Effective and efficient health delivery
• Collaborative focus
• Savings in overhead, buying power
• Sensitivity to cost and quality
• Existing center acquisition does not promote
  over utilization
• Regional and corporate resources
• Preventative care
• Focus on preventive care, quality of life,
  discharge to the community

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CPR Review Criteria

• Need/Alternatives
• Existing center
• No change in capacity or service
• Genesis selected for its experience and history
  as a Delaware provider
• Continuity - Genesis already provides clinical
  management and rehab services

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CPR Review Criteria

• Relationship to the health care delivery system
• Churchman Village 101 Bed SNF Newark
• Heritage at Dover 80 Bed ALF Dover
• Heritage at Milford 80 Bed ALF Milford
• Hillside Center 106 Bed SNF
  Wilmington
• Milford Center 136 Bed SNF
  Milford
• Seaford Center 124 Bed SNF/19 Bed ALF Seaford
• Silver Lake Center 120 Bed SNF Dover
• Lofland Park 110 Bed SNF Seaford
• Genesis Rehabilitation Services
• Genesis Respiratory Health Services
• Genesis Employees in Delaware 1,373 employees
• Managed center

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CPR Review Criteria

• Access to Resources
• Longevity of mgmt team
• Regional and corporate support
• Clinical approach for SFF graduation
• Access to capital
• Financing in place with Health Care REIT
• No change in rates