EXHIBIT 99.1
[LETTERHEAD OF VENTAS]
Contact: Debra A. Cafaro
President and CEO
(502) 357-9000
VENTAS REACHES GLOBAL, FINAL MEDICARE SETTLEMENT WITH
DEPARTMENT OF JUSTICE
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Bankruptcy Court Enters Vencor Confirmation Order
LOUISVILLE, KY, March 19, 2001 - Ventas, Inc. (NYSE:VTR) ("Ventas" or the
"Company") said today it has reached a definitive, final settlement of
Medicare-related issues with the Department of Justice (DOJ). The settlement
requires Ventas to pay the U.S. $103.6 million and was formally approved by the
Delaware Bankruptcy Court on March 16, 2001 with its entry of an order
confirming the Plan of Reorganization for Vencor, Inc. Vencor, Ventas' principal
tenant, is likely to emerge from bankruptcy in the next 15-45 days. The terms of
the settlement have been previously announced.
"This settlement with the Department of Justice represents an excellent
outcome for Ventas," Ventas President and CEO Debra A. Cafaro said. "It includes
a comprehensive release of the Company from all Medicare related matters. And,
it requires the dismissal of all "whistleblower" lawsuits filed against the
Company and joined in by the DOJ. This settlement was also a necessary predicate
for achieving our singular objective of a successful restructuring of Vencor."
Ventas did not admit any wrongdoing in reaching this agreement with the
DOJ. Its portion of the settlement -- $103.6 million - includes a $34 million
payment that will be made out of existing cash reserves on the Effective Date of
the Vencor Plan of Reorganization. The remaining amount will be paid in equal
quarterly installments over five years, at six percent interest. Ventas will
also pay $400,000 to the DOJ to cover legal fees. Vencor will pay $26 million to
the DOJ for settlement of Medicare claims. In 1999, Vencor reached a separate
agreement with the DOJ related to the settlement of a Medicare overpayment. At
that time Vencor agreed to repay the Health Care Financing
Administration $90 million, which is currently being paid by Vencor in
installments over 5 years.
Ventas is a real estate investment trust whose properties include 45
hospitals, 216 nursing centers and eight personal care facilities operating in
36 states.
This Press Release includes forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended (the "Securities Act")
and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). All statements regarding the Company's and its subsidiaries'
expected future financial position, results of operations, cash flows, funds
from operations, dividends and dividend plans, financing plans, business
strategy, budgets, projected costs, capital expenditures, competitive positions,
growth opportunities, expected lease income, continued qualification as a real
estate investment trust, plans and objectives of management for future
operations and statements that include words such as "anticipate," "believe,"
"plan," "estimate," "expect," "intend," "may," "could," and other similar
expressions are forward-looking statements. Such forward-looking statements are
inherently uncertain, and stockholders must recognize that actual results may
differ from the Company's expectations. The Company does not undertake any duty
to update such forward-looking statements.
Actual future results and trends for the Company may differ materially
depending on a variety of factors discussed in the Company's filings with the
Securities and Exchange Commission. Factors that may affect the plans or results
of the Company include, without limitation, (a) the treatment of the Company's
claims in the chapter 11 cases of its primary tenant, Vencor, Inc. and certain
of its affiliates (collectively referred to in this paragraph as "Vencor"), as
well as certain of its other tenants, (b) the ability and willingness of Vencor
to continue to meet and/or honor its obligations under the agreements the
Company and Vencor entered into in connection with the 1998 spin off by the
Company of Vencor (the "1998 Spin Off"), including, without limitation, the
obligation to indemnify and defend the Company for all litigation and other
claims relating to the health care operations and other assets and liabilities
transferred to Vencor in the 1998 Spin Off, (c) the ability of Vencor and the
Company's other operators to maintain the financial strength and liquidity
necessary to satisfy their respective obligations and duties under the leases
and other agreements with the Company, and their existing credit agreements, (d)
the Company's success in implementing its business strategy, (e) the nature and
extent of future competition, (f) the extent of future health care reform and
regulation, including cost containment measures and changes in reimbursement
policies and procedures, (g) increases in the cost of borrowing for the Company,
(h) the ability of the Company's operators to deliver high quality care and to
attract patients, (i) the results of litigation affecting the Company, (j) the
results of the settlement discussions Vencor and the Company have been engaged
in with the federal government seeking to resolve federal civil and
administrative claims against them arising from the participation of Vencor
facilities in various federal health benefit programs, (k) changes in general
economic conditions and/or economic conditions in the markets in which the
Company may, from time to time, compete, (l) the ability of the Company to pay
down, refinance, restructure, and/or extend its indebtedness as it becomes due,
(m) the ability and willingness of the Company to maintain its qualification as
a real estate investment trust due to economic, market, legal, tax or other
considerations, and (n) final determination of the Company's taxable net income
for 2000. Many of such factors are beyond the control of the Company and its
management.
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