NewCare Health Corp. announces restructuring.NewCare Health Corporation, an operator of nursing homes, assisted/independent living centers, and hospitals, announced a corporate restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). to reduce operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. . As of June 1, Lenox Healthcare of Pittsfield, Massachusetts "Pittsfield" redirects here. For other places named Pittsfield, see Pittsfield (disambiguation). Pittsfield is the largest city and county seat of Berkshire County, Massachusetts, United States. , became responsible for the Atlanta-based company's ongoing operations. Lenox will appoint two members to NewCare's board of directors and will acquire shares of common stock and warrants. Chris Brogdon, 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. of NewCare, said in a statement, "NewCare will benefit greatly from Lenox's purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. , systems, and clinical controls. In addition, Lenox's per-patient-day costs are significantly less than NewCare's, and I anticipate that we will begin to realize these cost savings during the third quarter." NewCare recently sold five facilities that lost more than $2 million during fiscal 1998. Proceeds of the sale will reduce debt by about $21.5 million and generate a non-cash gain on sale of assets of about $500,000. "This transaction alone reduced long term debt by more than 40 percent," Brogdon says. |
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