National HealthCare Corporation (NHC) is engaged in the operation of health care centers with associated assisted living and independent living centers. The business activities of the Company include providing subacute skilled and intermediate nursing and rehabilitative care, senior living services, home health care services, management services, hospice services, accounting and financial services and insurance services. During the year ended December 31, 2008, the Company operated in 12 states and owned and leased properties in the south-eastern United States. On October 31, 2007, NHC completed its acquisition of National Health Realty, Inc. (NHR). In 2008, the Company operated or managed 76 long-term health care centers with a total of 9,772 licensed beds. The numbers include 50 centers with 6,858 beds that are leased or owned, and 26 centers with 2,914 beds that are managed for others. Of the 50 leased or owned centers, 34 are leased from National Health Investors, Inc. (NHI).