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SECTION 2: Private Placement Memorandum

It also has greater availability of hospice care than is the case in some of the other counties and states that are in the national percentage. Denver has a highly concentrated population in a relatively small area. Some states in the national percentage, North Dakota, Alaska, and Mississippi, as examples have much lower populations and are more rural. See Exhibit A for supporting documentation. The Denver Hospice is the only provider with a dominant share of the market among the 24 providers of 2013. Providers ranged in size from The Denver Hospice at just over 28% of admissions to half of the providers having shares of 2% or less. Average daily census (AD) for providers range from 424 to 27 in the top 10 sized. Mother's Touch ADC projections place it in the top 10 by year 2 by capturing less than 2% of the market. The Denver Hospice and Gentiva/Harden have a large asset base. In spite of their large base, however, these two are not highly profitable and in fact The Denver Hospice showed a net loss in 2013 primarily because of “Fund raising compensation” and total compensation expense of over 65% of revenues.

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