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1980, petitioner and his associates formed Adult Living Centers,
Inc. (Adult Living Centers), to own and operate a proposed new
facility in Muskogee, Oklahoma, known as the Van Orden Memorial
Adult Living Center (the Van Orden project). Petitioner invested
approximately $25,000 in the stock of Adult Living Centers and
was a member of the board of directors and vice president of the
corporation. None of the individuals, however, had experience in
constructing or operating a nursing home facility. Charles Wetz
had a degree in hospital administration. Mr. Colclazier was to
manage the construction of the Van Orden project.
Petitioner and his associates did not intend the Van Orden
project to be a typical nursing home facility. Instead, they
envisioned a multifunctional comprehensive facility that would
provide traditional long-term care, integrate intermediate care
with day care for the elderly, integrate day-care service for
children with day care for older individuals, and provide
residences for seniors. Petitioner had the idea of integrating
adult day care with intermediate care because it would be more
beneficial to the patients and more economical. Petitioner also
thought that integrating child care with senior care would
provide a nurturing interaction for the children with grandparent
type figures during the day and would stimulate the elderly
(because of the interaction with the children).
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