Delbert L. and Margaret J. Baker - Page 9

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               During the years in issue, both AFVW residents and                     
          noncontract patients occupied rooms as patients in the SCU.  AFVW           
          residents who became patients in the SCU received a 60-percent              
          discount off the regular rate charged to noncontract patients who           
          occupied similar units as patients.                                         
                    4.   Skilled Nursing Care                                         
               The SNF at Village West provides the highest level of care             
          of all the health care facilities located at Village West.                  
          Admission to this facility is based strictly on doctor’s orders.            
          The accommodations provided in the SNF include a skilled nursing            
          facility bed, 24-hour nursing care, and three meals per day.  In            
          addition, occupants of the SNF receive services such as long-term           
          maintenance care, necessary diagnostic care, preventative care,             
          therapeutic care, and rehabilitative care required by the                   
          chronically ill.                                                            
               During the years in issue, both AFVW residents and                     
          noncontract patients occupied rooms as patients in the SNF.  AFVW           
          residents who became patients in the SNFs received an                       
          approximately 50-percent discount off the regular rate charged to           
          noncontract patients who occupied similar units as patients.                
               C.   The Residence Agreement                                           
               Petitioners chose a 1,427-square foot, two bedroom, two                
          bathroom, duplex unit for their ILU accommodations.  Under the              
          residence agreement executed on December 22, 1989, they were                






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