Skilled Healthcare Group acquires nursing facility in Iowa

Dec 13 2009

Skilled Healthcare Group, Inc. (NYSE: SKH) today announced that its wholly owned company, St. Mary Healthcare and Rehabilitation Center, LLC (“St. Mary HRC”), has completed the acquisition of a 118-bed, skilled nursing facility located in Davenport, Iowa. St. Mary HRC plans to begin building upgrades and improvements that are expected to increase skilled mix and to increase occupancy rates from current levels of approximately 50 percent.

The improvements will incorporate enhanced amenities, an Express Recovery Unit™ and a brand new rehabilitation gym including state-of-the-art equipment. The acquisition of the real estate and operations was effective on December 4, 2009. As a result, total facility ownership is an industry-leading 74 percent.

“We are excited to announce the acquisition of our 100^th facility and our second acquisition in Iowa,” stated Boyd Hendrickson, Chairman and CEO of Skilled Healthcare Group. “Similar to our acquisition in Des Moines, St. Mary HRC is located in a highly populated, urban market and is within close proximity to several local acute care hospitals. We believe that this facility offers a great upside opportunity and a solid strategic fit with our high-acuity model that has proven successful for our companies. Most importantly, we expect that the local St. Mary HRC staff will advance their role in the Davenport community, offer high-quality care to their patients, and develop strong partnerships with patients’ families in the care for their loved ones.”