Healthcare Services Group, Inc. has witnessed a major reshaping of the methods of delivering long-term care and other associated needs of the elderly, developmentally disabled or infirmed during its thirty years of service to the health care industry. The elderly population is expected to increase to approxiamately 70 million or more than 20 percent of the total population by the year 2030. Integral to this growth of the elderly population is their need for long-term care. As more of the population live extended lives, their potential for the need of some form of post-acute care is more essential.

The increased demand for facilities providing post-acute/long-term care is demonstrated by the fact that the U.S. Census Bureau predicts that the elderly population is projected to double between the years 2000 and 2040. Additionally, nearly 50 percent of the over­-85 population segment, which is the fastest growing segment of the elderly population, currently require some type of long-term care while approximately 25 percent of this age segment currently reside in nursing homes. The industry in which we operate is affected by many other factors besides the growth in the elderly population. Most significant is the various economic and political pressures present in today’s health care environment. Many operators of health care facilities are strained, financially and in providing services, because of the new reformed health care environment that has developed.