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Note 17 - Commitments
12 Months Ended
Dec. 31, 2012
Purchase Commitment To Increase Property Plant And Equipment [Text Block]
Note 17 – Commitments

Asset Purchase Commitment

On December 26, 2012, we entered into a Purchase and Sale Agreement to purchase six skilled health care centers from NHI.  The six centers, which are located in Columbia (2), Knoxville and Springfield, Tennessee; Madisonville, Kentucky and Rossville, Georgia, have been leased by NHC since 1991 and have a total of 650 beds.  The purchase price is $21 million and the transaction is expected to close on December 31, 2013.  With the purchase of the six skilled health care centers, NHC’s master lease payment will decrease by $2.95 million in 2014.

Lease Commitments

On December 26, 2012, we extended our master lease agreement with NHI through 2026.  Operating expenses for the years ended December 31, 2012, 2011, and 2010 include expenses for leased premises and equipment under operating leases of $39,355,000, $39,736,000, and $38,086,000, respectively.  See Note 2 for the approximate future minimum rent commitments on non-cancelable operating leases with NHI.