Variable Interest Entity

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

VARIABLE INTEREST ENTITY

VARIABLE INTEREST ENTITY

On December 28, 2011, the Company completed construction of Rose Terrace Health and Rehabilitation Center (“Rose Terrace”), its third health care center in West Virginia. The 90-bed skilled nursing center is located in Culloden, West Virginia, along the Huntington-Charleston corridor, and offers 24-hour skilled nursing care designed to meet the care needs of both short and long-term nursing patients. The Rose Terrace nursing center utilizes a Certificate of Need the Company obtained in June 2009, when the Company completed the acquisition of certain assets of a skilled nursing center in West Virginia.

The Company initially entered into a lease agreement with the real estate developer that constructed, furnished, and equipped Rose Terrace. The agreement included the right to purchase the center and all associated assets beginning at the end of the first year of the initial term of the lease and continuing through the fifth year for a purchase price ranging from 110% to 120% of the total project cost. On March 27, 2014, the Company exercised this purchase option and acquired the land, building, and all other assets of the Rose Terrace nursing center from the real estate developer for the contractually agreed upon price of $7,693,000.

Prior to the exercise of the purchase option, the Company had determined it was the primary beneficiary of the variable interest entity ("VIE") that developed the Rose Terrace nursing center based on the ownership of the Certificate of Need, the fixed price purchase option described above, the Company’s ability to direct the activities that most significantly impact the economic performance of the VIE, and the right to receive potentially significant benefits from the VIE. Accordingly, as the primary beneficiary, the Company consolidated the balance sheet and results of operations of the VIE for periods prior to the exercise of the purchase option. However, after the exercise of the purchase option, the previous owners paid the outstanding debt related to the entity in full. Subsequently, as further disclosed in Note 3, the Company sold the Rose Terrace facility and all assets associated with the facility. As a result of these events, the real estate development entity is no longer considered a VIE.

The following table summarizes the accounts and amounts included in the Company’s Consolidated Balance Sheet that are associated with the real estate developer’s interests in the VIE. As a result of the aforementioned transaction, no balances exist as of December 31, 2014.

	December 31, 2014		December 31, 2013
Land	$	—	$	787,000
Building and improvements, net	—		5,613,000
Furniture, fixtures and equipment, net	—		431,000
Other assets	—		80,000
	$	—	$	6,911,000
Current accruals	$	—	$	—
Notes payable, including current portion	—		5,476,000
Non-controlling interests	—		1,435,000
	$	—	$	6,911,000

	Year Ended December 31, 2014			Year Ended December 31, 2013
Beginning non-controlling interests	$	1,437,000		$	1,573,000
Comprehensive income attributable to non-controlling interests	(25,000		)	72,000
Deconsolidation of/distributions to non-controlling interest owners	(1,412,000		)	(208,000		)
Ending non-controlling interests	$	—		$	1,437,000