National HealthCare Corporation (NHC) is engaged in the operation of long-term health care centers with associated assisted living and independent living centers. NHC’s business activities include providing intermediate nursing and rehabilitative care, senior living services, home health care services, management services, hospice services, accounting and financial services and insurance services. The Company operates in 11 states, and its owned and leased properties are located primarily in the southeastern United States. At December 31, 2010, the Company operates or manages 77 long-term health care centers with a total of 9,742 licensed beds. These numbers include 54 centers with 7,338 beds that the Company leases or owns and 23 centers with 2,404 beds that it manages for others. Of the 54 leased or owned centers, 34 are leased from National Health Investors, Inc. (NHI).