Trends in Long-Term Care - U.S. Senate Special Committee on Aging

2966
Bergman's review of his records, he is able to advise the subcommittee that the
"k<strong>in</strong>d of deal<strong>in</strong>gs" have consisted of the follow<strong>in</strong>g:
(a) Payment of public relations fees
(b) Loans of funds for bus<strong>in</strong>ess purposes
(c) Sales and purchases of stock <strong>in</strong> closely-held corporations.
Neither the public relations fees, the <strong>in</strong>terest on loans, nor the sales or purchases
of stock were charged to or reimbursed by medicaid.
4. Subcommittee counsel asked for the names of employees of the Towers Nurs<strong>in</strong>g
Home for purpose of <strong>in</strong>terviews relat<strong>in</strong>g to conditions <strong>in</strong> the home [see p.
2950]. The full list appears on the Towers payroll register which his been
supplied to the subcommittee.
PROSPECTUS
300,000 SaIARES-IIEDIC-HoME DEVELOPERS INC.
Comoison stock (par value $.10)
Prior to the date of this Prospectus, there has been no public market for the
Common Stock of Mledic-Home Developers Inc. ("Mledic-Home") and, accord<strong>in</strong>gly,
the offer<strong>in</strong>g price has been determ<strong>in</strong>ed arbitrarily by negotiation between Medic-
Home and the Representative of the Underwriters.
These securities have not been, approved or disapproved by the Securities and
Exchange Commission nor has the Commission passed upon the accuracy or adequacy
of this prospectus. Any representation to the contrary is a crim<strong>in</strong>al offense.
Underwrit<strong>in</strong>g
Price to
public
discoun'ts
and cornmissions
I
Proceeds to
Medic-
Home '
Per share -- $10 $. 85 $9. 15
Total--- - $3, 000, 000 $255, 000 $2, 745, 000
I Medic-Home has agreed to use its best efforts to cause 2 designees of Blair & Co., Inc. (the "representative"), to be
elected to Medic-Home's Board of Directors (see "Management"). On Jan. 9, 1EE8, Medic-Hcme sold to Blair & Co.,
I nc., and 2 of its officers common stock which, after a subsequent stcck split, aggregated 20,CIO shares at a price of $1.50
per share (see "I nterest of management and others <strong>in</strong> certa<strong>in</strong> transactions"). Medic-Hcme has granted to the First Connecticut
Small Bus<strong>in</strong>ess Investment Co. a 1-year option to buy 5,COO shares of Medic-Home's ccmmon stock at a price
equal to the <strong>in</strong>itial public offer<strong>in</strong>g price <strong>in</strong> consideration of its assistance <strong>in</strong> negotiat<strong>in</strong>g the underwrit<strong>in</strong>g arrangements
with the representative. None of such 20,000 shares or 5,000 shares will be reoffered for at least I year follow<strong>in</strong>g the
effective date of this registration statement and until a posteffective amendment shall have been filed and declared effective;
any profit realized on a resale of such 20,000 shares may be considered to be additional underwrit<strong>in</strong>g compensation.
B before deduct<strong>in</strong>g expenses payable by Medic-Home, estimated at $97,000.
Neither the Attorney General of the State of New York tnr the Attorney
General of the Statc of New Jersey nor the Bureau of Securities of the State of
New Jersey has passed on or endorsed the merits of this offer<strong>in</strong>g. Any representation
to the Contrary is unlawful.
The above shares of Common Stock are offered by the Underwriters when,
as and if received and accepted by them, subject to prior sale, subject to the
approval of certa<strong>in</strong> legal matters by counsel and subject to certa<strong>in</strong> further
conditions.
At the request of Mledic-Home, the Underwriters have agreed to make available
at the public offer<strong>in</strong>g price 30,000 shares of the Common Stock offered hereby
for sale to officers and employees of MNedic-Home and to other persons designated
by it. The number of shares available to the public will be reduced to the extent
that such persons purchase such reserved shares. Upon resale of such shares,
certa<strong>in</strong> of such persons may be deemed to be underwriters as that term is def<strong>in</strong>ed
<strong>in</strong> the Securities Act of 1933.
BLAIR & CO., INC.
The date of this Prospectus is June 20, 1968
CoINPErITIoN
Each of the Company's nurs<strong>in</strong>g homes competes on a local and regional basis
with all types of health care <strong>in</strong>stitutions, whether publicly or privately operated,