Subsequent Events

9 Months Ended

Sep. 30, 2013

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

On October 1, 2013, the Company finalized its previously announced transaction to assume operations of three centers in Ohio and one center in Indiana from Catholic Health Partners.  The centers were purchased by a REIT and the Company assumed responsibility for their operations upon the closing of the transaction.  The transaction included the following centers with 712 licensed beds, as branded by Diversicare:

• 173-bed skilled nursing center known as Diversicare of Bradford Place

• 167-bed skilled nursing center known as Diversicare of Siena Woods

• 200-bed skilled nursing center known as Diversicare of St. Theresa

• 172-bed skilled nursing center known as Diversicare of Providence

Upon the completion of this transaction, the Company’s continuing operations consist of 47 nursing centers with 5,594 licensed nursing beds. The Company owns 13 and leases 34 of its nursing centers.

Additionally, subsequent to September 30, 2013, the Company amended the prescribed calculation of various financial covenants with the Credit Agreement to allow for certain costs incurred from the disposition of the Arkansas operations. The amendment of the covenant calculations is reflected in the covenant compliance levels as of September 30, 2013, included herein.