INVESTOR INFORMATION CopperSands, Inc. 3602 E. Greenway Rd. Suite 104 Phoenix, Arizona 85032 [602] 368-8203 office [602] 368-8211 fax Or visit: www.coppersandsinc.com
About CopperSands, Inc. CopperSands, Inc. was formed in January of 1995 as a sole proprietor business by Mary G. Leach. The company was incorporated in January of 1997. CopperSands, Inc. is a national consulting and management firm, which provides services and management of independent living, assisted living, memory care, skilled care, campus of care, transitional care, behavioral, inpatient substance abuse, intensive outpatient, and sober living. The Board of Directors of CopperSands, Inc., has over 100 years of combined experience in healthcare of the elderly. Although not all inclusive, our staff has experience in/or as: 8 Vice President (VP) of forty-three Skilled Facilities 8 Administrator of Skilled Facilities 8 Assisted Living Manager 8 Director of Nursing 8 Renovations and Construction 8 Independent Manager 8 Management of Ancillary Departments 8 Management Specialty Units i.e. Alzheimer s, Behavioral 8 Regulatory Consulting and Education 8 Acquisitions 8 Vice President of Finance 8 Accounting, CPA 8 Grants/Tax Credits 8 HUD Financing 8 Marketing/Business Development 8 Information Technology Our Mission Statement We are dedicated to providing the highest standards of care and service to our residents and patients. In our efforts to raise the quality of life for those we serve, we emphasize recognition of our associates who serve them. We are committed to our belief in service with integrity for our patients/residents, their families, our associates, and business relationships. CopperSands, Inc., Investor Marketing Packet rev 11.14.15 2
The Team Mary Leach, RN, President responsible for conducting the overall orchestration of services and providing Financial/ Operational Management. Her experience includes management of skilled, subacute, assisted living, independent and campus of care. Prior to CopperSands, Inc., Mrs. Leach was Divisional Vice President for a major corporation and responsible for the management of 43 facilities located nationwide. In her capacity as Vice President, she developed aggressive Medicare programs, initiated contractual agreements with managed care companies, and pursued the development specialty services, such as transitional/subacute care. In addition, she has a successful history as a Director of Nursing, Administrator and Regional Director in long-term and subacute care. Ronald J. Leach, Sr. Vice President responsible for company development of facilities and diversified services for seniors. He provides experience and knowledge in construction costs and regulatory requirements on assisted living and skilled facilities. In addition, he has experience and knowledge in facility plant, renovations and environmental services. His successful career includes ownership of businesses, Assistant Administrator, Operations Manager and multi-facility consulting, training and, contract purchasing. He has been Regional Manager of Facility Renovations and Construction for a large health care company. Cindy Leach, RN, Vice President of Operations responsible for facility finance and operations. She has a special expertise in Medicare systems, Regulatory compliance, and MDS documentation and reimbursement. Prior to joining CopperSands, Inc. Management, she was successful as a multi-facility quality manager and responsible for training, pre-surveys, quality assurance, and assistance in developing subacute programs and Medicare monitoring in 20 facilities in several states. She has a highly successful track record as a Director of Clinical Services in skilled, assisted living and subacute care and is a recipient of the national Quality of Care in Long-Term Care award through the American College of Health Care Administrators. In addition, Cindy is a licensed administrator and certified assisted living manager with experience in all aspects of care. CopperSands, Inc., Investor Marketing Packet rev 11.14.15 3
Carol Baum, CPA, oversees all financial interests for CopperSands, Inc. and has extensive experience in long-term care. She has worked with individual facilities and with large national nursing home chains in various capacities including Assistant Administrator, Administrator, Regional Controller, Division Director of Finance, and Controller. Her hands on experience gives her the ability to review financial statements from both a financial and operational perspective. In addition she is a Certified Public Accountant and maintains her license as a nursing home Administrator. Michelle Hill, BS, Director of Information Systems has built a responsive IT organization that consistently delivers results by aligning technology initiatives with business goals, providing substantial improvement of service delivery, standardization, and business systems performance. She has over 10 years of diverse IT experience working for several large international corporations. Michelle holds a Bachelor of Science in Computer Information Systems from Regis University in Denver, Colorado and maintains active membership in the Healthcare Information and Management Systems Society (HIMSS). Patty Freeman, Director of Acquisitions responsible for overseeing the daily operations of Human Resources, support staff functions, and directs the financing process for the acquisition and refinancing of new construction and existing communities. She has over 30 years of experience managing the lending and closing procedures of real estate transactions with specific knowledge and expertise in VA, conventional and HUD financed properties. Prior to CopperSands, Inc. Mrs. Freeman was Vice President of a large escrow and title company where she successfully managed the day to day operations, legal claims, loss mitigation, internal auditing, and worked closely with the Department of Financial Institutions and the Attorney General s Office. She has been recognized nationally for her expertise and dedication and is a past Board Member of the Arizona State Escrow Association. CopperSands, Inc., Investor Marketing Packet rev 11.14.15 4
Health Care Trends & Risks The health care industry has been through major changes over the last few years. The reduced Medicare and Medicaid reimbursement and have put major challenges on providers. One of the primary areas affecting the reimbursement for the health care is the lower than normal monies received from the Federal government for the State Medicaid programs. The States are also feeling the crunch since the September 11th event and funds are not readily available or are being cut in that area. Although this depicts a very poor picture for the future of health care, it is the opinion of CopperSands, Inc., that the pendulum will swing. Because of the financial issues, opportunities are available to obtain facilities at a lower cost and take advantage of the lower interest rates in the acquisition of property and development. It is for these reasons CopperSands, Inc., believes that this is the time to grow in the industry in preparation for the large number of seniors that will be requiring the services of this market within the next 10 years. Changes in reimbursement are causing hospitals and skilled providers to look at the proposed federal bundling payment system. Consequently, CopperSands is emphasizing relationships with other providers and developing transitional facilities. The objective is to provide short-term rehabilitation that will prevent re-hospitalization which is currently occurring from patients going home too soon with no assistance. With the staffing shortages, it is apparent that technology must improve in order to provide the special health care needs of our seniors. CopperSands, Inc. is emphasizing their development in these areas and is working towards fully electronic health care records. The numbers of assisted living communities have greatly increased over the last few years. However, the economic conditions have made this area of development more risky for the next few years. Consequently, in the interim, CopperSands is emphasizing special areas of need such as Alzheimer s and behavioral. CopperSands believes the need driven services are less likely to be affected by the changing economy or change in health reform. In Addition to specialty areas in assisted living, CopperSands is emphasizing specialty nursing facilities such as transitional rehabilitation, neurological and respiratory services. All of these are need driven and meet the objectives of reduced cost in health care spending. CopperSands, Inc., Investor Marketing Packet rev 11.14.15 5
Business History & Accomplishments COPPER HEIGHTS This 93 bed assisted living facility includes a 30 bed secured unit for the memory impaired. The facility is located in Mesa, Arizona. COPPER VILLAGE Copper Village located in Mesa, is a specialty assisted living facility providing care for memory impaired and hospice. 100 beds set in 10 cottages, provides a home like environment for the residents. CATALINA VILLAGE The facility is a 107 bed assisted living, tax exempt, low-income project, located on a campus of 7 apartment buildings in a park like setting. It is one of the few assisted living tax credit projects in the United States. In addition to providing assisted living care, the campus provides a speciality program for patients under a behavioral program. VILLA MARIA CARE CENTER CopperSands, Inc., acquired Villa Maria Care Center in June of 2000. It is a 76 bed skilled and 56 bed assisted living facility located in Tucson, Arizona. Villa Maria was acquired through a bid process while under receivership. The facility had never been profitable. CopperSands, Inc., stabilized the financial and operational issues at Villa and was successful in obtaining refinancing through a HUD loan and completing a $1,200,000 renovation with an addition of 5 assisted living units. CAMELOT CAMPUS OF CARE/ IMMANUEL CAMPUS OF CARE Managed from September 1997 through August of 2000. Camelot was a campus of care in bankruptcy. The campus included 244 skilled beds, 160 assisted living units and 200 independent units. CopperSands, Inc., managed the campus during bankruptcy to stabilize financially and operationally and to prepare for sale. After the sale, the facility name was changed to Immanuel Campus of Care. CopperSands then assisted in the completion of a $2,000,000 renovation. As of August. 2015, CopperSands Inc. was asked to re-command the management of the property. CopperSands, Inc., Investor Marketing Packet rev 11.14.15 6
Business History & Accomplishments (continued) AMERIPARK Managed from September 2001 to 2004. AmeriPark is a 160 unit independent and assisted living project under the ownership of a Canadian Healthcare group. This facility was doing poorly financially and operationally. Consequently, CopperSands, Inc., was contracted to manage the facility in order to increase operating margin and secure the asset for sale as part of a group sale by ownership. ARCHIE HENDRICKS This 60 bed skilled facility was built in 2000 and is located on the Tohono Odem Indian Reservation. The facility was never opened due to a lack of understanding surrounding regulatory requirements. CopperSands, Inc., assisted in bringing the plant up to standard and completing all paperwork to receive licensure. BENEFICIAL LIVING CENTERS FACILITIES (A NON PROFIT ORGANIZATION) Asset managed 6 Colorado facilities (Prairie View, Grace Manor, Walsenburg, Castle Rock, Garden of the Gods and Mountain View Care Center) for 1 year and then was asked by Beneficial Living Systems (BLS) and investor to take over management. CopperSands assisted BLS to obtain HUD financing in December of 2006. CopperSands managed facilities from 2002 through 2009 and partnered in the acquisition of the following three facilities in 2009 and sold out to partner in 2010. MOUNTAIN VIEW CARE CENTER A 64 bed skilled nursing facility with state approved implemented behavioral program, that was managed by CopperSands. CASTLE ROCK CARE CENTER Maintained at 4-star level with financial profitability and above average surveys. GARDEN OF THE GODS Increased profitability and maintained above average survey results. CopperSands, Inc., Investor Marketing Packet rev 11.14.15 7
Business History & Accomplishments (continued) PRAIRIE VIEW A 44 bed skilled facility serving seniors in the eastern part of Colorado. WALSENBURG CARE CENTER Was a 38 bed skilled facility serving the seniors of southern Colorado. CRIPPLE CREEK This is a 60 bed rehab & wellness center owned by the Southwest Teller County Hospital District. CopperSands, Inc., managed the facility from October 2002 to January 2005. SANTE OF MESA Sante is a 70 bed transitional facility opened in the spring of 2011. CopperSands partnered with Sante in the development, management and opening of operations. SANTE OF CHANDLER Sante is a 70 bed transitional facility opened in the spring of 2011. CopperSands partnered with Sante in the development and management operations. SANTE OF SURPRISE Sante is a 70 bed transitional facility opened in the fall of 2011. CopperSands partnered with Sante in the development and management of operations. CopperSands, Inc., Investor Marketing Packet rev 11.14.15 8
Clinical Management 8 Quality Assurance Continuous Quality Improvement is the current buzzword in the health care industry today. Facilities have difficulty finding the time and expertise necessary to implement a reasonable, effective, ongoing programs. Our Team Members specialize in establishing simple, time efficient, result oriented programs. These effective programs will make a difference during the survey process. 8 Pre-Surveys With the continuous changes in the survey process and the remedies involved, owners and staff cannot afford to be out of regulatory compliance. A good quality assurance program combined with a pre-survey analysis can eliminate the apprehension felt by the staff in a facility. Consultants will assist in identifying areas of concern, but more importantly, can assist the facility staff with the necessary actions and systems to ensure regulatory compliance. CopperSands, Inc., Investor Marketing Packet rev 11.14.15 9
Assisted Living 8 Construction/Renovations Planning will make a difference in the cost and outcome of renovations. Regulatory expertise is available to plan construction and ensure the facility meets regulatory requirements. Ongoing consulting assists with the necessary permits, architectural drawings, and monitoring for regulatory compliance. A preliminary budget for construction and equipment costs is established to provide a good base for planning. 8 Management Assisted living service and regulations are quickly changing across the United States. Our up-to-date information and years of experience in dealing with the elderly, allows us to anticipate the changes and provide for the needs of the residents. 8 Financial Management Management systems are essential to drive revenues and establish tight cost controls. Our management systems enable Administrators to easily monitor the financial performance, and quickly make necessary changes to provide a return to ownership. CopperSands, Inc., Investor Marketing Packet rev 11.14.15 10
Medicare 8 Reimbursement The MDS that controls reimbursement through Medicare is constantly changing. Consequently, it is essential that the staff is trained to maximize the reimbursement in the PPS system. Failure to train can cost thousands of dollars in reimbursement. The CopperSands, Inc, team members emphasize training in MDS to better manage the care and reimbursement of patients. 8 Operational Systems - Management can establish systems to monitor outcome and assist staff in establishing time efficient systems that will provide quality care while controlling costs. Specialists are available to review systems to ensure all systems are maintained and resolve issues immediately. Managed Care 8 Analysis A financial review of a facility can determine the current status of managed care and the actions needed to make the service financially viable. 8 Contracting/Negotiations We will assist and train the facility staff in reviewing current and potential contracts to improve profitability. 8 Operational Systems We will train the staff on cost containment and systems to meet specific outcomes while reducing length of stay. The monitoring of costs per day by pay source enables management to better negotiate contracts. 8 Good Inventory System A must for Managed Care! We will analyze the current system to determine what steps need to be taken to establish the monitoring systems necessary to control costs. 8 Financial Management We will establish financial accounting to develop systems to be utilized in prescreening and determining cost prior to admission. CopperSands, Inc., Investor Marketing Packet rev 11.14.15 11
Management Services 8 Quality Assurance Continuous quality improvement is required in our industry today. CopperSands, Inc., provides a time efficient, result oriented program, which can make the difference in the satisfaction of residents in our facilities and communities. CopperSands, Inc., identifies area of concern or additional services and needs of residents and assists staff with the actions and systems necessary to meet those needs. 8 Financial CopperSands, Inc., has an established management financial accounting system that produces information tracking on payables, receivables, cash flow, and profit/loss. Ongoing analysis of financial data through management systems is an essential part of the services offered by CopperSands, Inc. 8 Plant and Environmental Operations Knowledge of state and federal regulations, including OSHA, state plant codes, and life safety is absolutely essential if considering any type of renovation or construction. The expertise is available to construct new facilities or to manage your renovations. In addition, operational systems developed through years of experience, are available to assist staff in effective management of these areas of your facility. 8 Marketing Effective marketing is a key factor in the development and success of independent and assisted living. Marketing is initiated when construction is in the initial stages. Management tracking systems, inquiry, admission, and discharge are maintained to maximize census growth and mix. 8 Preventive Maintenance A neglected program for maintenance of the plant can mean high dollar replacement. Training and implementation of an annual program designed specific to your facility can save big dollars over the coming year. In addition, capital expenses are planned in advance and eliminate the inconvenience and higher cost of emergency repairs and/or replacement. CopperSands, Inc., Investor Marketing Packet rev 11.14.15 12
References FACILITY/DESCRIPTION CONTACT TELEPHONE Beneficial Living Systems, Inc Asset Management Feb 2001 - Dec 2001 Management Jan 2002 - Dec 2009 Scott Bayliss Saybrook Capital (310) 656-4286 Leo Rostermundt VP Board of Directors (303) 322-7711 Catalina Village Oct 1999 - Present Jim Phillips Van Kampen Bond Holder (619) 645-5229 Villa Maria Care Center Jun 2000 - Present Ownership Terry McNellis Partner (651) 698-1812 Camelot Campus of Care Sep 1997 - Aug 1998 Campus with: 244 Skilled care beds, Lauren Roberson Financial Manager to Trustee (602) 956-7601 100 Assisted living units and 200 Independent living units Tom Arnold (602) 840-8322 Immanuel Campus of Care Aug 1998 - Aug 2000 Non-Profit Organization Terry McNellis Formerly of Piper Jaffery Bond Holder (651) 698-1812 Health Care Systems Larry Litman (602) 789 8104 President (602) 789 8104 Paragon Mortgage Corporation HUD Financing James H. Swanson President (602) 266-3865 CopperSands, Inc., Investor Marketing Packet rev 11.14.15 13
current facilities ARIZONA FACILITIES Catalina Village Villa Maria Care Center Copper Village Copper Heights Copper Cottage Immanuel Campus of Care Copper Health Oro Valley Unhooked Recovery FACILITY TYPE Assisted Living Behavioral Assisted Living Skilled Care Assisted Living Memory Care Behavioral Assisted Living Sober Living Behavioral Assisted Living Assisted Living Memory Care Independent Living Skilled Care Transitional Inpatient Substance Abuse BEDS 57 50 83 56 90 63 10 62 63 30 148 228 36 36 TOTAL CURRENT BEDS/ ARIZONA FACILITIES TOTAL CURRENT BEDS Skilled Care Assisted Living Memory Care Behavioral Assisted Living Transitional Independent Living Inpatient Substance Abuse Sober Living 311 176 120 175 36 148 36 10 1,012 future arizona communities FACILITY NAME Copper Square Copper Ridge Villa Fatima Copper Health Cortaro Farms FACILITY TYPE Respiratory Respiratory Memory Assisted Living Memory Care BEDS 120 40 51 40 20 CopperSands, Inc., Investor Marketing Packet rev 11.14.15 14
Contact Information CopperSands, Inc. is located at 3602 E. Greenway Rd. Suite 104 Phoenix, Arizona 85032 [602] 368-8203 office [602] 368-8211 fax Or visit our website www.coppersandsinc.com Thank You CopperSands, Inc., Investor Marketing Packet rev 11.14.15 15