2. Objectives

3. Standards & Requirements

4. Start-up Operations

6. Elderly population would more than double by this century to 80 million

7. “Oldest old” (85 yrs and over) is the fastest growing segment

8. California’s 65-plus population will double by 2020

9. Number will top 6.6 million compared to 3.3 million in 1993.

11. RCFE Business Case Analysis BACKGROUNDER Oldest Old The fastest-growing portion of many older populations is the oldest old. Typically constituting only 1 to 2 percent of a population. In North America it is exceeding 5.5 percent. To grow significantly during coming decades. Consuming proportionally greater Amounts of health care.

13. The need to maintain quality of life for the elderly population is a basic priority among family members.

14. Work demands among family members prevent them from giving proper care to the senior family members.

16. RCFE beds increased by 97%

17. RCFE has 151,000 beds vs 133,000 for Nursing Homes*Source: Medical News Today, Aug. 6, 2005

19. Designed for people who need a bit of help with daily life activities

20. Does not offer skilled nursing care but are staffed by trained caregivers who offer companionship and support

23. An RCFE atmosphere with the capability of a Skilled Nursing Facility but without the attendant cost of a nursing home

24. On-call nurses to ensure prompt attention in case of any medical emergencies

26. Each care home has a 6-bed capacity with an 85-100% occupancy rate

27. Well-trained caregivers who have remained with the company since its early years

29. Improvements and renovations - $5K

30. Furniture and fixture - $4K

33. Three (3) caregivers per day, including nightshift

34. Daily wage per caregiver - $70.00

35. Rented facility at $2,000 per month

36. Operating expenses at full costing

38. RCFE Business Case Analysis START-UP TIMELINE 1 2 3 4 5

40. Voluntary 3rd party contributions

44. Voluntary 3rd party contributions…additional income on top of SSI benefits to fully cover for monthly facility fees.

46. Voluntary 3rd party contributions

47. Private Revenue…income derived in full from the residents personal funds.

49. Possibility of negligence among staff

50. Need for quick marketing efforts

52. Cost to Revenue is relatively smaller

53. Target market has financial capacity to pay

54. Cash Revenue, no AR, no inventory

55. Low capital. Easy exit strategy.

56. Low maintenance business

57. Affordable labor cost