Richland Place All Resident Meeting November 29, 2017

Mike Ussery President & COO NHC

Richland Place Board of Directors Voting Members Lavonne Tarleton Cardy Davis 500 Elmington Ave #306 Resident Council President Dr. Paul Stumb, Board Chair 500 Elmington Avenue #300 25 Foxhall Close (757) 871-7582 Nashville, TN 37215 thetarletons@gmail.com (615) 970-8057 (615)292-0090 crd2921@gmail.com paulstumb@bellsouth.net Roger Graham   500 Elmington Ave #407 Tim Shelly, Regional Vice-President Lynn May NHC, Metro Nashville Region 133 Abbottsford (615) 269-5455 8044 Coley Davis Road rogergraham@Comcast.net Nashville, TN 37211 (615) 298-2206 (615) 451-0788 (615) 397-5170 - cell Blair Wilson tshelly@nhccare.com lynnhmay@comcast.net 104 Woodmont, Suite 310 Christina Jones, Administrator Charlie Cook (615) 352-2080 Richland Place - Health Care Center 3608 Richland Avenue bjwnt@comcast.net 500 Elmington Ave Nashville, TN 37205 (615) 292-0011 – home John Bailey (615) 269-4200 cwcook@comcast.net 30 Foxhall Close cjones@richlandplace.com Janet Jernigan (615) 298-2249 Joan Stephens, Director Fifty Forward Bail7854@bellsouth.net Richland Place – Independent Living 174 Rains Avenue 500 Elmington Ave. Nashville, TN 37203 Non-Voting Members (615) 743-3404 615-269-4900 jjernigan@fiftyforward.org Mike Ussery, President and COO jstephens@richlandplace.com National HealthCare Corporation Anne Johnson P.O. Box 1398 Kim Looney, Legal Counsel 500 Elmington Avenue #326 Murfreesboro, TN 37133 Waller, Lansden, Dortch & Davis (615) 890-2020 511 Union Street, Suite 2100 (615) 292-2448 mussery@nhccare.com Nashville, TN 37219 annegjohnson2@outlook.com (615) 244-6380 kim.looney@wallerlaw.com

Richland Place History

1989 - Richland Place, Inc. and NHC. entered into an agreement 1989 - Richland Place, Inc. and NHC entered into an agreement related to the purchase of the Richland Place site. NHC handled pre-construction, planning, marketing, etc. until opening in 1992/1993.

1992 – Opened the Health Center at. Richland Place using beds owned 1992 – Opened the Health Center at Richland Place using beds owned by NHC (University Health Care). 1993 – Opened the Independent Living with the “Front of the Line 40”.

$43 million project. $33.3 million tax exempt bonds through The Health & Education Facilities Board of Metropolitan Nashville, Davidson County. Remaining debt -- $11 million -- funded by NHC.

Assisted & Independent Living Accounting & Financial Services NHC - A Senior Care Company Assisted & Independent Living Management Services Insurance NHC Skilled Nursing Centers Pharmacy Accounting & Financial Services Hospice Rehabilitation HomeCare

NHC National Operations MA MO KY VA TN SC AL GA FL 76 Health Care Centers in 9 States 25 Assisted Living Facilities in 7 States 5 Independent Living Centers in 2 States 1 Geriatric Psychiatric Hospital in 1 State 36 Home Care Agencies in 4 States 28 Hospice Programs in 4 States 171 Total Operating Locations in 10 states UPDATED 20 Accounting and Financial Service Contracts Also: 9-30-2017

NHC - A Senior Care Company

Current Financing First TN bank established in 2014 $10,750,000 at 3.665%. 10 year maturity / 20 year amortization. Current Debt: $9.6 million

First TN Financial Covenant requires: Debt Service Ratio of 1.25 or better 60+ Days of Cash on Hand

Liability for Refunds Due $5.3M liability for refunds due at present $3M line of credit available

2018 Operating Budget Combined Budgeted Revenue $24,027,893 Operating Expenses $22,142,860 Salaries, Supplies, Utilities, Insurance, Taxes, etc.

2018 Capital Budget Budgeted Depreciation $1,535,762 Apt. renovations, building repairs, patient room improvements, HVAC, etc.

Capital Improvements Independent Living Health Center 2016 Total $950,000 $293,000 Interior Renovations $820,000 2015 Total $1,100,000 $282,000 $700,000 Independent Living 2018 Health Center Interior $597,000 Rehab Gym $1,500,000 Generator $125,000+ engineering and wiring $405,000 Total $1,051,300 $2,617,650

10 year Rate Increase History Year Health Center Independent Living 2008 5% 0% 2009 3% 2010 2.5% 2011 2012 5.5% 2% 2013 2014 2015 2016 1% 2017 4%

Occupancy Health Center 95.67% 2017 YTD Independent Living 98.38% 2017 YTD (Average SNF occupancy in TN 75%) 12 move-ins to IL Apts. in 2017 125+ on the Waitlist

Market Analysis $298 $330 $265 $290 $205 $260 $225 $250 Provider Room Rate: (Semi-Private Room) Room Rate: (Private Room) Richland Place $298 $330 Blakeford- Woodcrest $265 $290 NHC Sumner Life Care $205 $260 Bethany $225 $250

2018 – Budgeted net income HC - $382,314 IL – ($97,034) 2018 Board Approved Budget 2018 – Budgeted net income HC - $382,314 IL – ($97,034) Combined - $285,280 HC Increase – 0% Room and Board - $40 Surcharge for all skilled Private Rooms IL Monthly Service Fee Increase – 3%

Questions?