STATE OF FLORIDA AGENCY FOR HEALTH CARE ADMINISTRATION HCPIL SOUTH FLORIDA, INC., d/b/a FOUNTAINHEAD NURSING CENTER Petitioner, vs. DOAH NO: 01-0985 AHCA NO: 11-01-0047 NH AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. / ae HCPIII SOUTH FLORIDA, INC., d/b/a NORTH MIAMI NURSING AND REHABILITATION CENTER Petitioner, vs. DOAH NO: 01-0986 AHCA NO: 11-01-0046 NH AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. / eS FINAL ORDER The Agency for Health Care Administration, having entered into Stipulations and Agreements with the parties to these proceedings, and being otherwise well advised in the premises, decides as follows: The attached Stipulations and Agreements are approved and adopted as a part of this Final Order and the parties are directed to comply with the terms of the Stipulations and Agreements. THEREFORE, it is ORDERED and ADJUDGED that the parties hereto are directed to comply with terms of the Stipulations and Agreements. DONE and ORDERED thié““_ day o ; 2001, in Tallahassee, Leon County, Florida. Laura Brankéx, Acting Secretary éalth Care Administration A PARTY WHO IS ADVERSELY AFFECTED BY THIS FINAL ORDER IS ENTITLED TO JUDICIAL REVIEW WHICH SHALL BE INSTITUTED BY FILING ONE COPY OF A NOTICE OF APPEAL WITH AGENCY CLERK AND A SECOND COPY, ALONG WITH FILING FEE AS PRESCRIBED BY LAW, IN THE DISTRICT COURT OF APPEAL WHERE THE AGENCY MAINTAINS ITS HEADQUARTERS OR WHERE A PARTY RESIDES. REVIEW PROCEEDINGS SHALL BE CONDUCTED IN ACCORDANCE WITH THE FLORIDA APPELLATE RULES. THE NOTICE OF APPEAL MUST BE FILED WITHIN THIRTY (30) DAYS OF RENDITION OF THE ORDER TO BE REVIEWED. Copies furnished to: Pury Lopez Santiago Assistant General Counsel Agency for Health Care Administration 8355 N. W. 53” Street Miami, F1 33166 (Inter-Office Mail) Diana Lopez Castillo Field Office Manager Agency for Health Care Administration 8355 N. W. 53 Street Miami, F1 33166 (Inter-Office Mail) Nursing Home Unit Program Agency for Health Care Administration 2727 Mahan Drive Tallahassee, Florida 32308 (Inter-Office Mail) Jay Adams, Esq. Broad and Cassel, P.A. 215 S. Monroe St., Suite 400 Tallahassee, Florida 32301 (U.S. Mail) Marshall Elkins, General Counsel Integrated Health Services, Inc. The Highlands 910 Ridgebrook Road Sparks, MD 21152 (U.S. Mail) Scott Bell, President Delta Health Group, Inc. . 125 West Romana Street, Suite 400 Pensacola, Florida 32501 (U.S. Mail) CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true copy of the foregoing was mailed to the above-named addressees this, 2Hday of J al Yy , 2001. » Agency for Health Care Administration 2727 Mahan Drive, Building #3 Tallahassee, Fl 32303 STIPULATION AND AGREEMENT e, . The State of Florida, Agency for Health Care Administration (““AHCA” “Agency”)," “sy . cae By HCP II South Florida, Inc. (“HCP IIT”) and Delta Health Group, Inc. (“DHG”) enter this Stipulation (the “Agreement”) this Zr aL day Go, for good and valuable consideration as set forth below and agree as follows: BACKGROUND WHEREAS, the Agency is the Florida state agency designated by the Legislature to regulate skilled nursing facilities; and, ‘WHEREAS, by virtue of such designation, the Agency is authorized to issue and deny licenses to operate long-term care facilities within the State of Florida pursuant to Chapter 400, Part II, F. S., (2000) (“F.S.”); and, WHEREAS, DHG is an applicant for a change of ownership (“CHOW”) pursuant to Section 400.179 F.S., concerning a 245 skilled nursing facility located at 1255 N.E. 135 Street, North Miami, Florida 33161 (the “Facility”), currently licensed to HCP III (License No. 1334096); and, WHEREAS, the parties desire at this time to promptly resolve the pending denial of the renewal of License No. 1334096 and approve the CHOW of North Miami. NOW THEREFORE, AHCA, HCP Ii and DHG stipulate and agree as follows: 1. DHG, the CHOW applicant, has purchased a Leasehold Bond effective May 1, 2001 (“DHG Bond”) in satisfaction of the requirements of Section 400.179, F.S., to comply with CHOW requirements, which is incorporated by reference herein and a copy of which is attached as Exhibit A. 2. North Miami Rehabilitation Center, Inc. (“NMC”), a’ previous applicant for a CHOW of the Facility, had previously purchased a Leasehold Bond in satisfaction of the requirements of Section 400.179, F.S., to comply with CHOW requirements, which is incorporated by reference herein and a copy of which is attached as Exhibit B, which the parties believe was in place until at least May 16, 2001. 3. AHCA agrees to accept the DHG Bond and rescind its Notice of Intent to Deny renewal of license 1334096, dated 1/31/01, incorporated by reference to this document and a copy of which is attached as Exhibit C. 4. HCP II accepts DHG’s purchase of the leasehold bond for the CHOW. DHG represents that it has timely filed all the required documentation for the Agency to review its CHOW application for North Miami . 5. In consideration of the foregoing mutual stipulations, promises, agreement and releases, AHCA agrees to approve the CHOW application for North Miami from HCP III to DHG, within 2 days of the execution of this agreement. 6. HCP Ii further agrees to dismiss, with prejudice, its Petition for Formal Administrative Hearing based on the Notice of Intent to Deny mentioned in paragraph 3 above; agrees that each party to that case shall pay its own costs and fees; and, agrees that no further . claim of any kind shall be brought against AHCA based upon the facts and circumstances of that initial denial. . . 7. Each party hereto represents and warrants that this Agreement constitutes a valid and enforceable obligation of each, in accordance with its terms by their signatures below, the undersigned representatives of each party personally represent and warrant that they have been authorized to execute this Agreement on behalf of the party, represented and to legally bind such party to the terms and commitments set forth herein. 8. This Agreement shall be construed and interpreted in accordance with the laws of the State of Florida. AGENCY FOR HEALTH CARE INTEGRATED HEALTH SERVICES, INC. ADMINISTRATION THE HIGHLANDS ( AHCA) 2727 MAHAN DRIVE 910 RIDGEBROOK ROAD TALLAHASSEE, FL 32308 SPARKS, MD 21152 (850) 922-5873 LCE lie Gallagher General Counsel General Counsel By: Date. 7A i Date: (2 1D 1 [oi PROPOSED LICENSEE DELTA HEALTH GROUP, INC. 125 West Romana Street Suite 400 Pensacola, FL 32501 By: Scott Bell President

Docket for Case No: 01-000986