Genesis Health Ventures Announces Termination of Management Agreements.KENNETT SQUARE, Pa.--(BW HealthWire)--July 14, 1998--Genesis Health Ventures, Inc. (NYSE NYSE See: New York Stock Exchange :GHV GHV Genesis Health Ventures, Inc. GHV Gross Heating Value (relationship between volume and corresponding amount of energy for gas) ), a leading provider of eldercare eld·er·care n. Social and medical programs and facilities intended for the care and maintenance of the aged. services and owner and operator of over 330 eldercare centers in the eastern and mid-western United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , today announced that it has received notice from NewCourtland Inc., owner of eight nursing centers in the Philadelphia area, of the termination of its management agreements for these centers effective July 31, 1998. This notice follows the revocation The recall of some power or authority that has been granted. Revocation by the act of a party is intentional and voluntary, such as when a person cancels a Power of Attorney that he has given or a will that he has written. on June 25th of the operating license at one of the centers, Cobbs Creek This article is about the creek that forms the border between Delaware County and Philadelphia. For the West Philadelphia neighborhood that takes its name, see Cobbs Creek, Philadelphia, Pennsylvania. Nursing Center. The center has a long-standing history of regulatory compliance difficulties dating back many years prior to Genesis' management. Cobbs Creek received notification of the revocation of its license despite significant efforts by Genesis to work with the owner's employees at the Center to satisfy the regulatory requirements. Each of the seven other Presbyterian Foundation centers at which Genesis provided management services was in full regulatory compliance. The Company believes that the termination notice was inappropriate. It has also advised the owner of Cobbs Creek of its rights to contest what it believes are inappropriate survey results at the center. The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenue from the contracts is approximately $3.8 million. The termination of these contracts will result in a reduction in 1999 earnings of approximately $1.2 million or $.03 per share. Genesis Health Ventures, Inc., a recognized innovator in the healthcare industry, was founded in 1985 to redefine how America cares for the elderly and is dedicated to helping older adults live a full life as independently as possible in their later years. The Company, which consolidated its businesses under the brand name Genesis ElderCare in 1996, has established Genesis ElderCare Networks in five regional markets in the eastern United States and currently serves more than 150,000 customers daily. The above statements include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . The Company cautions investors that any forward-looking statements made by the Company are not guarantees of future performance. Numerous factors exist which could cause results to differ materially from these expectations.
CONTACT: Genesis Health Ventures, Inc.
George V. Hager, Jr.
Senior Vice President and
Chief Financial Officer
610/444-6350
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