FOOTHILL RANCH, CA – Skilled Healthcare Group, Inc. announced that its wholly owned company, St. Mary Healthcare and Rehabilitation Center, LLC, has completed the acquisition of a 118-bed, skilled nursing facility located in Davenport, Iowa.

St. Mary HRC plans to begin building upgrades and improvements that are expected to increase skilled mix and to increase occupancy rates from current levels of approximately 50 percent. The improvements will incorporate enhanced amenities, an Express Recovery Unit and a brand new rehabilitation gym including state-of-the-art equipment.

The acquisition of the real estate and operations was effective on December 4, 2009. As a result, total facility ownership is an industry-leading 74 percent.

“We are excited to announce the acquisition of our 100th facility and our second acquisition in Iowa,” stated Boyd Hendrickson, Chairman and CEO of Skilled Healthcare Group. “Similar to our acquisition in Des Moines, St. Mary HRC is located in a highly populated, urban market and is within close proximity to several local acute care hospitals. We believe that this facility offers a great upside opportunity and a solid strategic fit with our high-acuity model that has proven successful for our companies. Most importantly, we expect that the local St. Mary HRC staff will advance their role in the Davenport community, offer high-quality care to their patients, and develop strong partnerships with patients’ families in the care for their loved ones.”

About Skilled Healthcare Group, Inc.
Skilled Healthcare Group, Inc., based in Foothill Ranch, California, is a holding company with subsidiary healthcare services companies, which in the aggregate have consolidated annual revenues of over $750 million and approximately 14,000 employees.

Skilled Healthcare’s wholly owned companies, collectively referred to as the “Companies”, operate long-term care facilities and provide a wide range of post-acute care services, with a strategic emphasis on sub-acute specialty health care. The Companies operate facilities in California, Iowa, Kansas, Missouri, Nevada, New Mexico and Texas, including 78 skilled nursing facilities which offer sub-acute care and rehabilitative and specialty health skilled nursing care, and 22 assisted living facilities which provide room and board and social services.

In addition, the Companies provide physical, occupational and speech therapy in Company-operated facilities and unaffiliated facilities. Furthermore, the Companies provide hospice care in the California and New Mexico markets. More information about Skilled Healthcare is available at its Web site -- www.skilledhealthcaregroup.com.