Genesis Health Ventures signs letter agreement with NewCourtland Inc., a subsidiary of The Presbyterian Foundation for Philadelphia.KENNETT SQUARE, Pa.--(BUSINESS WIRE)--Nov. 21, 1996--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) ) Thursday announced that it has signed a letter agreement, subject to additional documentation, to provide management services for and enter into an affiliation agreement with NewCourtland Inc. ("NewCourtland"), a fully owned subsidiary of the Presbyterian Foundation for Philadelphia ("Foundation"), a non-profit organization A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. with assets in excess of $110 million. Under the terms of the agreement, Genesis will become the exclusive, third-party manager of nine long-term care facilities long-term care facility n. See skilled nursing facility. located in Philadelphia and throughout the Delaware Valley The Delaware Valley is the name of the metropolitan area centered on the city of Philadelphia in the United States. The region is named for the Delaware River which flows through it. . Genesis will provide specialty medical services, including pharmacy and rehabilitation therapy, to NewCourtland's facilities. The parties have also agreed to explore the development of a joint venture to deliver healthcare services on a capitated basis to the dually-eligible institutionalized in·sti·tu·tion·al·ize tr.v. in·sti·tu·tion·al·ized, in·sti·tu·tion·al·iz·ing, in·sti·tu·tion·al·iz·es 1. a. To make into, treat as, or give the character of an institution to. b. and non-institutionalized elderly in the Philadelphia area. The agreement provides that Genesis will enter into management agreements on nine facilities with 1,867 beds to commence no later than Feb. 1, 1997. The historical annual revenues of the facilities were in excess of $80 million for the fiscal year ended June 30, 1996. Additionally, NewCourtland will enter into an affiliation agreement for a term of ten years to be a member of the Genesis ElderCare eld·er·care n. Social and medical programs and facilities intended for the care and maintenance of the aged. (SM) Network. Genesis will have the exclusive right to manage any facility that may be acquired or developed by NewCourtland. Currently, NewCourtland retains a purchase option for four additional facilities totalling 514 beds with annual revenues in excess of $20 million. In addition to the management and affiliation agreements, Genesis and the Foundation have agreed to commit equally to guarantees to facilitate the refinancing of certain long-term care facilities; the acquisition of certain long-term care facilities; capital improvements; and working capital. "Genesis and NewCourtland share a common mission in the greater Philadelphia marketplace, which is to provide the frail elderly frail elderly, n.pl older persons (usually over the age of 75 years) who are afflicted with physical or mental disabilities that may interfere with the ability to independently perform activities of daily living. with access to high quality, cost effective health care and the support needed to live a full life," commented Gail Kass, president and chief executive officer of NewCourtland Inc. "Over the past year, since the divestiture of Presbyterian Medical Center of Philadelphia, NewCourtland has restructured and expanded its portfolio of Long Term Care facilities, and plans to develop `Quality of Life' campuses which will address the broad spectrum of needs of the urban elderly. Genesis's market strength, clinical expertise, and breadth of service capabilities will better allow us to fulfill our mission in the years ahead," she said. "Our partnership with the Foundation and NewCourtland is important to Genesis," noted Michael R. Walker, Genesis chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. "We are very pleased to welcome an organization of such caliber and integrity to the Genesis ElderCare(SM) Network, and look forward to working together to deliver a new standard of care to the older people and their families in Philadelphia and throughout the Delaware Valley." "The Presbyterian Foundation for Philadelphia has had a long outstanding history of service to the people of greater Philadelphia, and the new opportunity with Genesis will allow us to substantially increase our mission to serve the needs of the urban elderly," said I. Donald Snook snook: see bass, fish. snook Any of about eight species (genus Centropomus) of tropical marine fishes that are long and silvery and have two dorsal fins, a long head, and a large mouth with a projecting lower jaw. , Jr., president and chief executive officer of the Foundation. Genesis Health Ventures is a leader in the healthcare industry and was founded in 1985 to redefine how America cares for the elderly, using a coordinated, comprehensive approach that helps older adults define and live a full life. The company has established Genesis ElderCare(SM) Networks in five major metropolitan markets in the eastern 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. and currently serves more than 75,000 customers. CONTACT: Genesis Health Ventures Inc. George V. Hager, Jr. senior vice president & chief financial officer 610/444-6350 |
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