JUSTICE DEPARTMENT APPROVES PROPOSAL THAT WILL ASSIST CONSUMERS IN SELECTION OF LONG-TERM HEALTH CARE PROVIDERS

WASHINGTON, D.C. — A subsidiary of Beverly Enterprises Inc., the nation's largest operator of nursing homes, will be allowed to provide a nationwide database on services offered by nursing homes and other long-term health care facilities under a proposal approved today by the Department of Justice's Antitrust Division.

Assistant Attorney General Anne K. Bingaman, in charge of the Department's Antitrust Division, said that the proposal appears to meet a consumer need, and should promote competition by facilitating informed consumer choice. The Department's position was stated in a business review letter to the subsidiary's counsel from Bingaman.

The subsidiary, AdviNet Inc., will develop a nationwide service database and contract with employers, insurers, associations and individuals to make such information available for specific geographic areas to employees, group members or individuals who call a toll-free telephone number.

Beverly operates more than 700 nursing facilities in 34 states.

AdviNet's database will include publicly available information on all licensed facilities, but more detailed information will be available from operators who become participating providers in the network. Participation will be open to any provider that meets objective health, safety and quality standards. No fee will be charged to a participating provider.

Participating providers will be encouraged, but not required to offer a discount to AdviNet customers. The amount of any discount will be for the provider to determine.

In addition to providing information on long-term care facilities in a geographic area, AdviNet will assist in scheduling site visits by customers. It will provide suggestions on what to ask and look for during those visits. The list provided to a customer will not be limited to participating providers, and AdviNet will not recommend any specific facility to the customer.

AdviNet will operate independently of Beverly, in a separate office building, with a separate computer system. AdviNet's employees' compensation will not depend in any way upon selection of Beverly facilities by AdviNet customers.

Specific pricing information received by AdviNet from any provider will not be made available to any other provider.

Under the Department's business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement whether the Division will challenge the action under the antitrust laws.

A file containing the business review request and the Department's response may be examined in the Legal Procedure Unit of the Antitrust Division, Room 3235, Department of Justice, Washington, D.C. 20530. After a 30-day waiting period, the documents supporting the business review will be added to the file.

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