Landmark was formed to fill a demand in niche markets with unmet needs for high acuity, high capability Long Term Acute Care Hospitals (“LTACHS”). Landmark owns and operates five LTACHs in three states. The first four facilities were built and developed by Landmark based on a unique, nearly identical, cost-efficient design that has been refined by Landmark executives based on their industry experience over the course of two decades. This proprietary design in both the buildings and the business and operations model arose from Landmark’s experience in the LTACH industry. Landmark Hospitals is majority-owned by Landmark Holdings of Missouri, LLC (“Landmark Holdings”).
Landmark is in a position to execute a well-formulated growth strategy. Despite the LTACH moratorium from 2007 to the end of 2012, Landmark was able to acquire a grandfathered LTACH development opportunity in Salt Lake City and build a new hospital that opened in May, 2013. Since the moratorium precluded other developments, the lack of new LTACH capacity has limited competition.
In anticipation of the moratorium expiring, Landmark successfully obtained a new Certificate of Need (“CON”) in Savannah, Georgia. Construction is expected to commence in September, 2013 on a site mid-way between the two major hospitals in town. This hospital is expected to open during the summer of 2014 and should achieve LTACH status early in 2015.
Dr. Kapp is the Founder and Chairman of Landmark Hospitals. Dr. Kapp started Landmark with a simple concept of bringing high quality LTACH services to areas of the country that were underserved or overlooked by other providers. Dr. Kapp previously served as founder and managing partner for Physicians Alliance Surgery Center in Cape Girardeau and was instrumental in its design, development and certification. He served as its Medical Director from 2000-2003 and Board Member from 2000-2011. Physicians Alliance is a multi-specialty outpatient surgical center with 4 operating suites and over 30 staff members. Dr. Kapp also served 15 years as managing partner for Orthopedic Associates of SE Missouri, the region’s largest orthopedic provider.
Landmark is comprised of the five hospitals, each of which was built within the last seven years. All the hospitals have experienced, proven management teams that are expected to remain in each facility. The five existing facilities combined have 638 employees. The finance, accounting, IT and HR departments are centralized in Cape Girardeau.
Each facility has a long-term support contract with Landmark Management Services, LLC for certain operational and financial support services. Landmark Management Services, LLC provides the necessary logistical support in the design and construction of specialty units, as well as competitive bidding for capital expenditures at the facilities.
All of Landmark Management Services, LLC’s senior management are MD’s or MBA’s with extensive experience and expertise in LTACH management and strategy, accounting, reimbursement, purchasing, property management, staffing and medicine. The other senior managers at Landmark have extensive experience in LTACH financial, operational and clinical management, several of whom are Licensed Administrators and CPAs.
Landmark’s five affiliated LTACHs are located in three states: three in Missouri, one in Georgia and one in Utah. At the LTACH level, the senior staff is comprised of a Chief Executive Officer, Chief Clinical Officer, Medical Director and Registered Nursing staff. In addition, each LTACH includes nursing assistants, housekeeping, business office and maintenance staff.