2012-08-02 Windward Transcript Regency

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AU: Okay, thank you. MOSES: Mr. Chair? KERN: Commissioner Moses. MOSES: I just have a quick question. Maybe you can educate me. I don't understand health care as far as Medicaid, Medicare and private insurance. But I would assume, for your facility for it to be financially sound and sustainable, what percentage are we looking at as far as the patients that will reside there? Is there a percentage that you have to have private care, private insurance versus Medicare or Medicaid, or does that not even have anything to do with it? STROUD: Normally what we find is that in most skilled facilities 90% plus of our residents are either Medicaid or Medicare, which would be the state or the counties, or state and federal funding. A much smaller percentage tend to be private pay. Usually because the cost of care, like hospital care or anything else, has become so great that the majority of people who access those services did not live and work in a time when they were able to accumulate the resources necessary to pay privately. That’s true across the country. And so it's a very, very high percentage that we would normally see with both State and Federal funding, and that's, not understanding Medicare and Medicaid is nothing unusual even for me. KERN: Thank you. Commissioner Ono? ONO: Yes. This question may be out of line but I think I'm the one with the most self interest if you look at the age of the panel. I'm about there. At any rate I'm just curious, the history of your company? My concern, is this a development thing, I guess for, I need to know more about the background of your company. STROUD: Okay, sure. ONO: Is this where you construct and sell or is this construct and, you know –? STROUD: No, no. We build, own and operate. I run the development division. I own a number of facilities myself within the group. We as a company have been around since the 60s. We retain our properties. In fact, occasionally we operate properties for other owners. But we don't build them and sell them. It is pretty hard to do today anyway. But normally in instances where, in Washington state for example, we act as a receiver for properties that are operated by an operator that maybe doesn't do a good job. The State comes in and takes over, we’ll operate for them. But as far as there, we become a part of the community. And that's, as I say, I worked as an administrator at our quaint facility out at Waimea years ago, haven’t worked in any of the others here locally. But we certainly own and operate, and will continue to do so. There is another operational model where people will go in, just build the facility almost on speculation, and then just hire someone else, but that’s not our model, no. ONO: Thank you. 14 EXHIBIT B