Hi Crush Inc
Manor Care, Inc., which we also refer to as Manor Care and HCR Manor Care, provides
a range of health care services, including skilled nursing care, assisted living,
subacute medical and rehabilitation care, rehabilitation therapy, hospice care,
home health care, and management services for subacute care and rehabilitation
therapy. The most significant portion of our business relates to long-term care,
including skilled nursing care and assisted living. Our other segment is hospice
and home health care.
No individual customer or related group of customers accounts for a significant
portion of our revenue. We do not expect that the loss of a single customer
or group of related customers would have a material adverse effect.
Medicaid is a medical assistance program for the indigent, operated by individual
states with the financial participation of the federal government. Medicare
is a health insurance program for the aged and certain other chronically disabled
individuals, operated by the federal government.
Private pay and other sources include commercial insurance, individual patients’
own funds, managed care plans and the Veterans Administration. Although payment
rates vary among these sources, market forces and costs largely determine these
rates.
Government reimbursement programs such as Medicare and Medicaid prescribe,
by law, the billing methods and amounts that may be charged and reimbursed to
care for patients covered by these programs.
Competitive Conditions
Our nursing facilities compete primarily on a local and regional basis with
many long-term care providers, some of whom may own as few as a single nursing
center. Our ability to compete successfully varies from location to location
and depends on a number of factors, which include:
The number of competing centers in the local market;
The types of services available;
Quality of care;
Reputation, age and appearance of each center; and
The cost of care in each locality.
In general, we seek to compete in each market by establishing a reputation
within the local community for quality and caring health services, attractive
and comfortable facilities, and providing specialized health care.
We also compete with a variety of other companies in providing assisted living
services, rehabilitation therapy services, hospice services and home health
care services. Given the relatively low barriers to entry and continuing health
care cost-containment pressures in the assisted living industry, we expect that
the assisted living industry will become increasingly competitive in the future.
Increased competition in the future could limit our ability to attract and retain
residents, to maintain or increase resident service fees, or to expand our business.