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HELIAN HEALTH GROUP ANNOUNCES GRAND OPENING OF RECOVERY INN OF MENLO PARK; 'COMMUNITY HOSPITAL OF THE FUTURE' SIMILAR TO SMALL LUXURY HOTEL

HELIAN HEALTH GROUP ANNOUNCES GRAND OPENING OF RECOVERY INN OF MENLO PARK; 'COMMUNITY HOSPITAL OF THE FUTURE' SIMILAR TO SMALL LUXURY HOTEL
 MONTEREY, Calif., Nov. 2. /PRNewswire/ -- Helian Health Group Inc. (NASDAQ-NMS: HHGR) announced today that Recovery Inn(SM) of Menlo Park, an innovative hospital, celebrated its grand opening on Thursday, Oct. 29. This 16-private patient suite facility is a model for Helian's solution to many of the inefficiencies besetting traditional hospitals - - and to traditionally high surgical/medical prices.
 "Small IS better," states Thomas D. Wilson, president of Helian. "First, we
are able to build and e quip Recovery Inns for fewer dollars per square foot. Second, we are able to focus our payroll dollars on care-givers, instead of middle managers. In fact, our payroll costs will average about 35 percent of expenses vs. the approximately 71 percent more typical of traditional hospitals. And third, Recovery Inn's compact size allows us to surround our patients with highly personalized service -- adding to their comfort while giving them more confidence during recovery.
 "Recovery Inns are models for the community hospitals of the future. For instance, it is estimated that fully 75 percent of the surgeries performed today in an average community could be appropriately performed at a Recovery Inn. Also, the Recovery Inn was carefully designed to satisfy the needs of a community's patients and physicians. Prospective patients and the physicians were surveyed to determine what would best serve their needs. Then, with great attention to detail, Recovery Inn was built to meet these needs with the greatest efficiencies possible," concluded Wilson.
 "It's an idea that makes sense from everyone's vantage point," notes Elizabeth A. Stark, Recovery Inn of Menlo Park executive director. The patients get the best medical care available, the doctors are an integral part of setting the standards of how healthcare is delivered, and payers and patients save money."
 The savings can be quite substantial, based on the figures provided by Stark.
 Use of the Recovery Inn's operating room is charged at a flat, all inclusive fee according to surgical procedure type, instead of the traditional by-the-minute-fee for operating rooms and post-anesthesia care units. The following is a table reflecting the likely differences between Recovery Inn and traditional hospitals:
 PROCEDURE TRADITIONAL RECOVERY SAVINGS
 GENERAL CENTER $ PERCENT
 HOSPITAL
 Knee Reconstruction (A) $7,102 $4,605 $2,497 35
 Abdominal hysterectomy (B) 5,857 4,183 1,674 29
 Cholecystectomy (Gall
 Bladder Removal)(B) 8,542 3,456 5,086 60
 (A)Source: CBS News
 (B)Based on California Office of Statewide Health Planning study of
 recovery centers vs. traditional hospitals.
 Elective surgical procedures offered at Recovery Inn will include: orthopedic; gynecologic; eye, ear, nose and throat; reconstructive; urologic; gastroenteric; and general surgical procedures. Additionally, medical patients needing treatments such as infusion (intravenous-based) therapies will be well cared for at Recovery Inn.
 Post-surgical recovery at Recovery Inn will cost a flat rate of $550 per day, compared to the $1,000 to $1,500 typically charged by traditional general hospitals. Also, Recovery Inn will use a system of global pricing. In other words, a patient will not receive itemized charges for aspirin at Recovery Inn as all routine medications and supplies are included in the daily rate for the patient suite.
 For professionals like Rose Parkes, regional director, Helian Health Group Inc., the appeal of this alternative hospital rests on the fact that there are nearly twice as many nurses for each Recovery Inn as can be found in traditional general hospitals. During the day, one registered nurse will care for only three to four patients and at night each nurse will care for five to six, whereas an average traditional hospital will assign one nurse to eight patients day and night.
 "Our staff here is very dedicated because our nurses have the time to practice nursing as it was intended to be -- at the patient's bedside," states Parkes. "Every member of the staff is expertly trained from a medical perspective, but we have also taken great care to assemble a team of professionals who understand how important it is to do all the little things that make patients and their family comfortable throughout their stay at Recovery Inn," concludes Parkes.
 "What makes the Recovery Inn of Menlo Park unique is that it was designed and organized from the ground up to meet the needs of the patient and the physician," comments anesthesiologist and Recovery Inn Medical Director Bruce Halperin, M.D.
 "The biggest difference that the patient will see is the elimination of the 'red tape' of a traditional hospital," explains Halperin.
 At Recovery Inn, the traditional hospital room has been transformed into a private suite, tastefully decorated in soft colors with fine textured fabrics and wallpapers. Replacing the standard metal hospital bed is a full-sized bed that you would find is a luxury hotel. However, this bed still adjusts for maximum patient comfort. Wall-to-wall carpeting helps keep noise to a minimum.
 Each patient suite is private and includes a seating area with sofa, reading chairs and writing table. All the furnishings have been selected to purposefully avoid the "institutional" feeling that pervades traditional health care facilities. Hidden in an attractive armoire is a television and a VCR. Patients can either bring their own VCR tapes from home or borrow from an extensive video library. Several suites have outdoor patios so that patients can benefit from fresh air and sunshine. All rooms have access to a redwood deck or patio.
 "If a member of my family needed elective surgery, this is the facility I would want them to be in. And as a practicing physician, this is the kind of facility where I would want to practice," states Halperin.
 The involvement of family members in supporting the recovery of patients is so encouraged that guest meals are provided without additional charge. There are no restrictive "visiting hours" at Recovery Inn. A special member of the family or friend may be invited by the patient to stay overnight -- the sofa in every patient suite unfolds into a bed.
 Meals are an important time for patients to share with a guest in the privacy of their suite or in the comfort of the library. The usual "hospital fare" has been replaced by gourmet food -- all served on linens and china. Flowers and the morning newspaper accompany each breakfast.
 The 14,000-square-foot Recovery Inn facility was built at a total of $3.05 million (including equipment) and is projected to have annual gross revenue of $3.4 million.
 Recovery Inn(SM) of Menlo Park will be licensed as an acute care hospital by the State of California, and will participate in the accreditation program sponsored by the Joint Commission on the Accreditation of Hospital Organizations.
 The facility is owned by Helian Health Group Inc., the Palo Alto Medical Foundation, and a limited partnership of community physicians. Helian is a publicly held company that has earned a national reputation for providing cost-effective medical services. Helian is actively developing Recovery Inns nationally.
 -0- 11/2/92
 /CONTACT: J. Spencer Davis, vice president of investor and media relations for Helian Health Group, 408-646-9000/
 (HHGR) CO: Helian Health Group; Recovery Inn ST: California IN: HEA SU:


ML-TB -- SJ004 -- 1666 11/02/92 14:11 EST
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