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Bowman was talking about National Health Corporation, which is <br />the company that will manage the facility here, and they are <br />guaranteeing the bonds. He noted that the intent of using the <br />bonds is to get a more favorable interest which not only saves <br />them quite a bit of money each year in interest payments, but it <br />also saves the users of the services at the facility and the <br />Medicaid Program as well because the reimbursement from the state <br />is lower. <br />Vice Chairman Lyons asked if Mr. Evans was saying the <br />interest rates will be reflected in the rates they charge at the <br />center, and Mr. Evans stated that they have to be. In the first <br />place, they have to be competitive in the marketplace. <br />Commissioner Lyons believed the other nursing facilities <br />don't have these bonds; he doubted this will make a nickel <br />difference in the rates charged the public and did not know how <br />it will affect Medicaid. <br />Mr. Evans explained that Medicaid only reimburses for <br />allowable expenses; the interest charged by the financing <br />mechanism is one of those allowable costs, and it is measured by <br />the state. Mr. Evans also believed Mr. Thomas had told him one <br />other such facility in the county was financed through industrial <br />revenue bonds, and this was confirmed by Administrator Thomas. <br />Commissioner Wodtke felt their rates undoubtedly will be the <br />same as others and competitive with them, but as far as Medicaid <br />is concerned, he could state with assurance that they do come in <br />and look at allowable expenses. If they have a particular need <br />of 91 beds, then 37% of the beds must be held for Medicare <br />patients. He further reported that in regard to Florida <br />Convalescent Center's financial structure, the Economic <br />Development Commission met extensively with Mr. Evans yesterday <br />to discuss the project, and they also have met with the Finance <br />Advisory Board and were thoroughly scrutinized. Commissioner <br />Wodtke continued that it was his understanding that their <br />certificate of need expires the end of August so there is an <br />37 <br />JJUN 2 5 1986 BOOL( 64 FA,E814 <br />