The land, buildings and associated assets of Richland Place are owned by Richland Place, Inc., a not for profit corporation founded in 1988 for the sole purpose of developing, owning and operating Richland Place. As a not for profit corporation, Richland Place, Inc. does not have shareholders (owners) as would a conventional business corporation (the Richland Place facilities) can only be transferred to another qualified not for profit corporation.
Tax Exempt Status
Richland Place, Inc. operates under IRS Rule 501-c-3, which exempts qualifying not for profit corporations from Federal corporate income taxes.
Richland Place, Inc. has a Board of Directors that is responsible and accountable for Richland Place, Inc. (the corporation) and Richland Place (the independent living and health care facilities owned by the corporation). The Board contracts with National Healthcare Corporation ("NHC"), a healthcare management company, to manage the day to day operation of Richland Place.
The Board now consists of three residents of Richland Place and six outside directors, one of the six outside directors being a NHC official designated by NHC. Directors are divided into three panels of three directors each, each panel consisting of one Richland Place resident member and two outside members. A panel is nominated and elected each year for a term of three years.
The day to day business operations, services and healthcare delivery of Richland Place are managed by NHC. For employee benefit efficiencies and other valid business reasons, the Resident Manager of Richland Place and all other on-site staff at Richland Place are officially employees of NHC. Richland Place, Inc. reimburses NHC for all Richland Place employee costs each pay period. The Resident Manager and certain other officials of NHC report to the board at regular quarterly meetings of the Board and at any called meetings.
Origin Of The Richland Place / NHC Relationship
In 1989 Richland Place, Inc. and NHC entered into an agreement relating to the purchase by Richland Place, Inc. of the Richland Place site and pre-construction planning, marketing and related undertakings and responsibilities related to construction and development of the health care and independent living facilities to be known as Richland Place. NHC provided funding for purchase of the site and construction, which came to approximately $43 million.