Florida Approves NHC Divestiture.

Business Editors, Health & Medical Writers

MURFREESBORO, Tenn.--(BUSINESS WIRE)--Dec. 21, 2000

National HealthCare Corporation (AMEX: NHC), one of the nation's oldest publicly traded long-term health care companies, today announced that the State of Florida has completed the change of ownership licensing of its 12 skilled nursing facilities into new entities, effective October 1, 2000.

President W. Andrew Adams said, "NHC is pleased the Florida State Agency has approved the change of ownership of the 12 skilled nursing facilities NHC formerly operated in Florida. This approval transfers ownership to twelve newly-formed and non-related companies effective October 1, 2000.

NHC's decision to leave Florida was mandated by its inability to locate any insurance carrier willing to provide medical liability coverage. The insurance industry's unwillingness to underwrite in Florida is due to the increasingly litigious nature of the Florida plaintiff's bar, aided and abetted by legal standards different than those applied to other health care professionals such as physicians and hospitals."

NHC operates for itself and third parties, 77 long-term health care centers with 10,144 beds. NHC also operates or provides services to 33 homecare programs, six independent living centers and assisted living centers at 16 locations. NHC's other services include managed care specialty medical units, Alzheimer's units, accounting and financial services at 31 additional projects, and a rehabilitation services company.