ARBORETA HEALTHCARE INC. SARASOTA, Fla., July 17, 2023 /PRNewswire/ --
Dear Valued Shareholder,
Arboreta Healthcare, Inc. (OTC PINK: ARBH) wants to share some information to our shareholders regarding several transitions within the company and how we are positioning ourselves as we move forward in a challenging healthcare industry.
We've experienced a trying past 12 months; however our goal remains to create a financially solid and operationally efficient company that provides quality service and delivery of care in the communities we serve.
PARTNERSHIP WITH EVEREST MANAGEMENT SOLUTIONS
To support our continuous improvement efforts, Arboreta's board of directors has engaged in a two-year contract with healthcare consultants Everest Management Solutions to help continue our company turnaround. EMS specializes in developing strategies and solutions for the senior housing and long term care industry, and is currently working closely with Arboreta leadership to assemble a plan to move the company forward. The EMS team meets regularly with our leadership team, and Everest's Chief Operating Officer, Samantha Whittaker, has taken an active role in the day-to-day operation of our skilled nursing, rehabilitation, assisted living and independent living facilities.
"Everest Management Solutions is excited to have the opportunity to work with Arboreta Healthcare in a consulting capacity," Whittaker said. "The Everest team brings significant long term care expertise and experience forward to work along with the Arboreta team in addressing the issues that are faced daily in long term care. We strongly believe that Arboreta will benefit from the partnership, and we look forward to working together for a positive future for the residents and team members that are served."
LEADERSHIP TRANSITION
Interim Chief Executive Officer Richard Mason returned to retirement at the end of May 2023 and board member Bruce A. Cassidy has been appointed as Interim Chief Executive Officer.
IOWA FACILITIES INCREASE CENSUS
In April 2023, our Iowa facilities received a Medicaid reimbursement rate increase of $50/day per resident. This rate will increase again this month by an additional $15/day per resident; however, we won't begin to see the benefits of this second increase until September of this year.
FOCUS ON INCREASED EFFICIENCIES
Our leadership team continues to work with the Everest Management Solutions team to undertake cost cutting measures throughout the organization to run as effectively and efficiently as possible. We have realized cost savings by switching to national vendors and streamlining HR vendor service contracts. We identified workflow efficiencies in our human resources team that have led to a restructuring of the entire HR function. Corporate office expenses alone have been reduced by approximately 50%, and we will continue to look at future expenses to ensure we are operating as efficiently as possible without sacrificing quality of care.
SALE OF BANYAN PEDIATRIC CARE CENTERS
In order to focus more clearly on adult post-acute care, we are transitioning our Banyan Pediatric Care Centers facilities to new ownership. We have entered into a letter of intent, and expect to sign a purchase and sale agreement this month, with an anticipated closing upon receiving regulatory approvals by the end of the third quarter.
SALE OF GRACE CARE CENTERS
To centralize our operations within the Midwest, we have made the challenging decision to sell the Grace Care Center facilities in the Texas market. We've already signed a letter of intent with a buyer, and also expect to sign a purchase and sale agreement this month, with an anticpated closing shortly thereafter.
While the past year has been a trying one for our company, we continue to weather these challenges and look forward to continuing to build for the future of Arboreta Healthcare with the experienced team of professionals and consultants we have assembled. We will continue to make as many operational improvements as necessary to create a financially solid company that is focused on providing quality outcomes.
We will continue to keep our valued shareholders apprised of our progress as we move forward with these initiatives.
Sincerely,
Bruce A. Cassidy
Interim Chief Executive Officer
Arboreta Healthcare, Inc.
About Arboreta Healthcare, Inc.
Arboreta Healthcare, Inc. is a fast-growing, diversified healthcare company caring for people of all ages through three distinct operating divisions: Arboreta Healthcare, which provides exceptional skilled nursing, rehabilitation, assisted living and independent living programs across 29 facilities in Iowa, Nebraska, Texas, Florida, and Georgia; Banyan Pediatric Centers, a Prescribed Pediatric Extended Care (PPEC) program that provides nurse-staffed day care for young people (birth to 21 years) who have medical conditions that require ongoing specialized care; and Real Living Property Holdings, the real estate holding company into which all real estate is housed. For more information, visit ArboretaHealthcare.com.
Forward-Looking Statements
This correspondence may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws about our business, or financial condition and prospects that reflect our assumptions and beliefs based on information currently available. Words such as "expects," "intends," "plans," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. Therefore, you should not rely on any of these forward-looking statements. The forward-looking statements are made only as of the date of this news release, and except as otherwise required by law, we have no obligation to update or revise such statements to reflect subsequent events or circumstances.
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SOURCE Arboreta Healthcare
