1052024--3/31/2006--EXTENDICARE_HEALTH_SERVICES_INC

related topics
{regulation, government, change}
{personnel, key, retain}
{competitive, industry, competition}
Changes or reductions in Medicaid rates may adversely affect our revenues. Legislative and regulatory actions have resulted in continuing changes to Medicare and Medicaid reimbursement programs. The shortage of qualified registered nursing staff, therapists and other healthcare workers could adversely affect our ability to attract, train and retain qualified personnel and could increase operating costs. We conduct our skilled nursing business in a heavily regulated industry and our failure to comply with laws and government regulation could lead to fines and penalties. We conduct our assisted living business in a regulated industry and our failure to comply with laws and government regulation could lead to fines and penalties. We face periodic reviews, audits and investigations under our contracts with federal and state government agencies, and these audits could have adverse findings that may negatively impact our business. If we do not comply with terms contained within leases for our leased nursing and assisted living facilities, nor maintain the facilities, we could be faced with financial penalties and the loss of the facility from our portfolio. We face national, regional and local competition.

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