Question
[redacted]
June 29, 2000
BY FACSIMILE TRANSMISSION
Mr. Michael Verne
Premerger Notification
Office Bureau of Competition
Federal Trade Commission Sixth & Pennsylvania Avenue, NW
Washington, D.C. 20580
Re: Application of 16 C.F.R. 802.2(d) to the Application of Assisted Living Facilities
Dear Mike:
This letter is to confirm our conversation of this afternoon regarding the applicability of the residential property exemption, 16 C.F.R. 802.2(d), to the acquisition of an assisted living facility described below.
I explained that the transaction in question was an asset acquisition meeting th Act's jurisdictional thresholds, 15 U.S.C. 18a(a). The asset in questions is an assisted living facility that operates under license from the state of its operation. There are not medical facilities or skilled nursing facilities on the premises. There are no doctors on the staff. As required by state law, there is a registered nurse on duty at all times whose responsibilities include supervision of assistance with daily living, the management and administration of medication, and responding to emergency situations.
Based on the facts described above, you concluded that the transaction did fall within the 802.2(d) exemption. You cautioned that if there were medical facilities or skilled nursing facilities on the premises, that those assets would have to be separately valued and subject to the Act's size-of-the-transaction test, 15 U.S.C. 18a(a)(2). You also noted that if there were businesses operated on the premises other than the assisted living facility, that those businesses would have to be separately valued as well, subject to 802.2(d)(3).
I would appreciate if you could confirm that I have accurately recounted out conversation. If I have in any way misstated our conversation, please let me know so that I can correct the record.
Thank you for your quick help on this matter.
Best regards,
[redacted]
cc: [redacted]