About Diversicare Healthcare Services

Diversicare Healthcare Services, Inc. provides post-acute care services to skilled nursing facilities, referred to as ‘skilled nursing centers’, ‘nursing centers’, or ‘centers’, patients and residents in eight states, primarily in the Southeast, the Midwest, and Southwest United States. Nursing Centers and Services The company provides a broad range of post-acute care services to patients and residents, including skilled nursing, ancillary health care services, and assisted living. In addition to the nursing and social services usually provided in long-term care centers, the company offers a variety of rehabilitative, nutritional, respiratory, and other specialized ancillary services. As of December 31, 2020, its continuing operations consisted of 61 nursing centers with 7,250 licensed skilled nursing beds. The company’s nursing centers range in size from 50 to 320 licensed nursing beds. The licensed nursing bed count does not include 397 licensed assisted living beds. Its continuing operations include centers in Alabama, Indiana, Kansas, Mississippi, Missouri, Ohio, Tennessee, and Texas. The company’s nursing centers provide skilled nursing health care services, including nutrition services, recreational therapy, social services, housekeeping, and laundry services. Skilled nursing care is provided for post-acute patients and residents with comorbidities. This care includes assessment using evidence based tools, individualized care plan development based on identified areas of risk and care needs, and skilled interventions, such as IV services. The company also provides for the delivery of ancillary medical services at the nursing centers we operate. These specialty services include rehabilitation therapy services, such as audiology, speech, occupational, and physical therapies, which are provided through licensed therapists and registered nurses; and the provision of medical supplies, nutritional support, infusion therapies and related clinical services. The majority of these services are provided using the company’s internal resources and clinicians. Within the framework of a nursing center, the company may provide other specialty care, including: Transitional Care Unit: Many of the company’s nursing centers have units designated as transitional care units, its designation for patients requiring transitional care following an acute stay in the hospital. These units specialize in short-term nursing and rehabilitation with the intention of returning the patient to their highest potential level of functionality. These units provide enhanced services with emphasis on upgraded amenities. The design and programming of the units generally appeal to the clinical and hospitality needs of individuals as they progress to the next appropriate level of care. Specialized therapeutic treatment regimens include orthopedic rehabilitation, neurological rehabilitation, and complex medical rehabilitation. While these patients generally have a shorter length of stay, the intensive level of nursing and rehabilitation required by these patients typically results in higher levels of reimbursement. Memory Care Unit: Like the company’s transitional care units, many of its nursing centers have memory care units, the company’s designation for advanced care for dementia-related disorders, including Alzheimer's disease. The intention of the units is to provide a safe, homelike and supportive environment for cognitively impaired patients, utilizing an interdisciplinary team approach. Family and community involvement complement structured programming in the secure environment, which is instrumental in fostering as much resident independence and purposeful quality of life as long as possible despite diminished capacity. Enhanced Therapy Services: The company has complemented its traditional therapy services with programs that provide electrotherapy, vital stimulation, ultrasound, and shortwave diathermy therapy treatments that promote pain management, wound healing, muscle strengthening, and/or contractures management, improving outcomes for its patients and residents receiving therapy treatments. Other Specialty Programming: The company implements other specialty programming based on a center's specific needs. It has developed specialty programming for bariatric patients (generally, patients weighing more than 350 pounds) as these individuals have unique psychosocial and equipment needs. Quality Assurance and Performance Improvement The company has in place a Quality Assurance and Performance Improvement (QAPI) program, which focuses on monitoring and improving all aspects of the care provided in a center by identifying outcomes and acting on areas of improvement. The QAPI program in the company’s centers addresses all systems of care and management practices. Gaps and opportunities in performance versus benchmarks are addressed with analysis and performance improvement plans. Outcomes from each center in the areas of quality, employee workplace, customer satisfaction, and stewardship are collected monthly and overseen by regional and company quality committees. Utilization of Electronic Medical Records Electronic Medical Records (EMR) improve the company’s ability to accurately record the care provided to its patients and quickly respond to areas of need. All of the company’s nursing centers utilize EMR to improve Medicaid acuity capture, primarily in its states where the Medicaid payments are acuity based. By using EMR, the company has increased its average Medicaid rate despite rate cuts in certain acuity based states by accurate and timely capture of care delivery. The EMR system provides better support, efficiency, and improves the quality of care for the company’s patients. Organization The company’s nursing centers are organized into seven regions. Marketing As part of the company’s business strategy, it has dedicated sales and marketing personnel who develop strong partnerships with physicians and hospital executives, as well as accountable care organizations, bundled payments for care improvement providers, and managed care organizations. Growth Strategy The company’s strategic operations development plan focuses on providing a broad range of high quality post-acute care services; improving skilled mix in its nursing centers via enhanced capabilities for rehabilitation and transitional care; building clinical competencies and programs consistent with marketplace needs; and clustering its operations on a regional basis. The company’s strategy includes the development of additional specialty units and programming in nursing centers that could benefit from these services. The company continues to pursue and investigate opportunities to acquire and lease new centers, focusing primarily on opportunities that can leverage its existing infrastructure. Government Regulation In most states, nursing centers are subject to Certificate of Need laws, which require the company to obtain government approval for the construction of new nursing centers or the addition of new licensed beds to existing centers. History Diversicare Healthcare Services, Inc. was founded in 1994. The company was incorporated as a Delaware corporation in 1994.