Genesis Health Ventures Stongly Denies Union Allegations.

KENNETT SQUARE, Pa.--(BW HealthWire)--July 23, 1998--Genesis Health Ventures Inc. (NYSE:GHV), a leading provider of eldercare services in the eastern and midwestern United States, Thursday strongly denied union allegations made in a press release issued yesterday.

The union has been undertaking an organizing campaign against Genesis ElderCare centers for some time. The company believes yesterday's release to be a common and regrettable organizing tactic designed to cause the company to give in to the demands of the union.

Genesis asserts that the statistics the union issued regarding state surveys in New Jersey and Florida are inaccurate. The press release indicates that the statistics were compiled from surveys conducted during the period January 1994 to January 1998.

Statistics based on information compiled during this time are reflective of surveys conducted prior to Genesis' ownership of some of the these centers, specifically under the ownership of National Health Care Affiliates Inc., McKerley Health Care Centers, and Geriatric & Medical Companies Inc.

For example, the union alleged that 47% of Genesis facilities in New Jersey were rated as substandard in their most recent inspection. In fact, none of the 38 centers received a survey with even one finding of substandard care.

Genesis ElderCare has a history of resolving long-standing survey problems at troubled facilities and committing considerable resources to clinical initiatives and staff development to improve care. In New Jersey alone, Genesis has substantively reduced the number of deficiencies these centers receive in routine annual surveys, as evidenced by their current survey status.

The company has made a considerable financial investment in this state alone by providing ongoing staff development and award-winning education programs to all 38 centers. Since October 1997, career and skills development programs for New Jersey employees encompassed more than 6,800 staff hours. Specific examples include:

-- A 2-day "Focused Physical Assessment" program for nursing staff

to improve their assessment skills and make them more valuable members of the care planning team -- A new 10-day Administrator/DON training program which reviews

issues impacting successful operations in today's environment, including quality improvement -- A GNAS, or Geriatric Nursing Assistant Specialist, program is

offered on an ongoing basis to provide certified nursing assistants with additional training and promotional opportunities -- BUILD, a one-day workshop for all levels of center staff designed

to increase knowledge and practical skills on topics such as death and dying, dealing with dementia, sensitivity towards the elderly, etc.

Additionally, quality improvement initiatives in New Jersey over the past twelve months include:

-- Quarterly meetings with the state Ombudsman for Institutionalized

Elderly and the Director of the LTC Assessment and Survey program to review quality improvement programs -- Development of a physical restraint reduction initiative -- Develop a program to have Medical Directors play an active role

in care at Genesis centers and obtain training and certification by the American Medical Directors Association -- Monthly review of each center's "Quality Indicator Report" by

Genesis' Vice President of Medical Affairs to monitor quality practices and develop necessary training programs

Genesis ElderCare currently serves more than 150,000 customers daily through its network of comprehensive eldercare services and believes that to be the highest indicator of customer satisfaction.

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 is headquartered in Kennett Square.

    CONTACT:  Genesis Health Ventures
               Jeanne Moore, director of Public Relations
               610/925-4024