Evaluating financing options.
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These regulations delete the requirements of war service in the determination of veterans' eligibility for State home care and in the determination of the number of State nursing home beds in each State for construction purposes. In addition, [1] the term "construction" has been expanded to include construction of new domiciliary buildings to provide care in State homes, [2] the term "cost of construction" has been expanded to include the amount found necessary for a construction project, [3] the percentage of bed occupancy has been amended to allow no more than 25 percent occupancy by non-veterans in buildings constructed with grant funds, [4] general standards of construction and equipment have been expanded to include domiciliary and hospital facilities, and [5] the recapture period for construction funds, when a facility is no longer operated for the purpose for which the grant was made, is now no greater than 20 nor less than seven years based on the magnitude of the project and the grant amount involved. Also, the number of beds required to provide adequate nursing home care to veterans residing in each State has been adjusted. These regulations implement legislation.
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Is it reasonable to expect facility occupancy expenses to be 10% of revenues by 1990? If so, a group with static revenues of $10 million can expect a decline in distributable income of $250, 000 to $300, 000 a year.
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