THIS DOCUMENT IS A COPY OF THE 10-K FILED ON APRIL 16, 1996
PURSUANT TO A RULE 201 TEMPORARY HARDSHIP EXEMPTION.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
For annual and transition reports pursuant to sections 13 or 15 (d) of the
Securities Exchange Act of 1934.
(Mark One)
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-15694
CONSOLIDATED RESOURCES HEALTH CARE FUND VI
(Exact name of registrant as specified in its charter)
Georgia 58-1677247
(State or other jurisdiction
of incorporation or organization) (I.R.S. Employer
identification No.)
7000 Central Parkway, Suite 970, Atlanta, Georgia 30328
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, 770-698-9040
including area code
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: L i m i t e d
Partnership
Units
Indicate by check mark whether the registrant, (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days. Yes x No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulations S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definite proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [ X ]
Of the registrant's 29,308 Limited Partnership Units, 29,097 are held by non-
affiliates. The aggregate market value of units held by non-affiliates is not
determinable since there is no public trading market for Limited Partnership
Units and transfers of units are subject to certain restrictions.
Documents Incorporated by Reference: See Page 28.
THERE ARE NO EXHIBITS.
PAGE ONE OF 29 PAGES.
PART I
ITEM 1. BUSINESS
Consolidated Resources Health Care Fund VI (the "Partnership") was organized
on January 2, 1985, as a Limited Partnership under the provisions of the
Georgia Uniform Limited Partnership Act.
At December 31, 1995, the Partnership had three general partners (the "General
Partners"), Consolidated Associates VI, a Georgia general partnership,
Consolidated Resources VI, Inc. as the Corporate General Partner ("CR-VI" or
the "Corporate Partner"), and WelCare Service Corporation-VI, a Georgia
corporation as Managing General Partner ("WSC-VI" or the "Managing General
Partner"). WSC-VI is a wholly-owned subsidiary of WelCare Acquisition Corp.,
which is in turn a wholly-owned subsidiary of WelCare International, Inc.
("WelCare"). CR-VI, a Georgia corporation, is a wholly-owned subsidiary of
WelCare Consolidated Resources Corporation of America ("WCRCA"). WCRCA, a
Nevada corporation, is a wholly-owned subsidiary of WelCare Acquisition Corp.
WelCare, a privately owned Georgia corporation, is engaged in the operation,
acquisition, property management and oversight management of long-term care
facilities. Consolidated Associates VI is composed of WCRCA, as the managing
general partner, and individuals who were previously associated with
Consolidated Resources Corporation of America ("CRCA").
Pursuant to an agreement dated October 30, 1985, CRCA, a Georgia corporation
that initially controlled the corporate general partner of the Partnership,
was merged into a subsidiary of Southmark Corporation ("Southmark"). The name
of the surviving Southmark subsidiary was then changed to Southmark
Consolidated Resources Corporation of America ("SCRCA"). Southmark, a Georgia
corporation, emerged from Chapter 11 bankruptcy on August 10, 1990 and
liquidated most of its assets pursuant to its plan of reorganization. On
November 20, 1990, WelCare, through its subsidiary WelCare Acquisition Corp.
("WAC"), acquired from Southmark all the stock of SCRCA whose name was then
changed to WelCare Consolidated Resources Corporation of America. Southmark
has not been affiliated with the Partnership since November 1990. WSC-VI was
added as the Managing General Partner of the Partnership on January 7, 1992,
following the approval by a majority-in-interest of the Partnership's limited
partners. The acquisition of SCRCA and the addition of WSC-VI as Managing
General Partner of the Partnership did not result in a change in compensation
to the General Partners (See Item 8, Note 2).
On December 27, 1985, a Registration Statement on Form S-1 was declared
effective by the Securities and Exchange Commission whereby the Partnership
offered for sale $30,000,000 of Limited Partnership Units. The Limited
Partnership Units represent equity interests in the Partnership and entitle
the holders thereof (the "Limited Partners") to participate in certain
allocations and distributions of the Partnership. The sale of Limited
Partnership Units closed in December 1986 with 29,308 units sold at $1,000
each, for gross proceeds of $29,308,000 to the Partnership.
The Partnership's primary business and only industry segment is to own,
operate and ultimately dispose of a diversified portfolio of health care
related and geriatric real properties for the benefit of its Limited Partners.
On January 1, 1995, the Partnership owned four facilities (See Item 8, Note
6). Effective January 31, 1995, the Partnership sold two facilities located
in Nevada and Utah (See Item 8, Note 6). On December 31, 1995, the
Partnership owned two facilities.
Current Developments
A majority-in-interest of the Partnership's Limited Partners approved a
proposal, on October 18, 1994, which provides for the sale of all of the
Partnership's remaining assets and the eventual dissolution of the
Partnership, as outlined in a proxy statement dated September 28, 1994. Under
the approved proposal, the Limited Partners consented for the Managing General
Partner to attempt to sell or otherwise dispose of its remaining properties
prior to October 18, 1997. Upon the disposition of all of its assets, the
approved proposal requires that the Managing General Partner dissolve the
Partnership.
Operation of Nursing Home Facilities
On January 1, 1991, National Heritage, Inc., ("NHI") (currently known as
Evergreen Health Care, Inc.) managed all of the Partnership's nursing homes
and a NHI subsidiary managed the Partnership's two retirement centers. NHI, a
New York Stock Exchange listed company, was affiliated with the Partnership
prior to WAC's acquisition of control of the Corporate General Partner on
November 20, 1990. During the fourth quarter of 1991, the Partnership
notified NHI that their management contracts were terminated effective on
January 1, 1992, for Grandview Manor, and April 1, 1992, for the other nine
nursing homes then owned by the Partnership. Commencing on these dates, these
facilities were managed by an affiliate of the General Partners. Effective
March 1, 1991, the management of the two retirement centers changed to
American Lifestyles, Inc. ("ALI"), a division of Life Care Centers of America,
Inc. ALI is not an affiliate of the Partnership.
Prior to WAC's acquisition of control of the Corporate General Partner, no
distributions had been made to the Limited Partners since 1988. As a result
of efforts made by the Corporate General Partner, in 1991, the Partnership
made two quarterly distributions of $200,000 each and a special distribution
of $499,994. During 1992, the Partnership increased the quarterly
distributions and made distributions totalling $850,000. During 1993, the
Managing General Partner caused the Partnership to distribute a total of
$6,300,000, $1,800,000 from operations and $4,500,000 following the sale of
certain of the Partnership's facilities. During 1995, distributions of
$750,000 were made to the Limited Partners.
As of December 31, 1995, the Partnership employed approximately 194 persons,
including administrative, nursing, dietary, social services and maintenance
personnel.
The services provided at the Partnership's nursing facilities consist of long-
term nursing care. Nursing care consists of 24 hour professional nursing care
and related medical services prescribed by the resident's physician as well as
assistance or supervision with activities of daily living such as dressing,
grooming, bathing, medication and dietary needs. The two retirement centers
sold by the Partnership in 1995 provided apartment living for ambulatory
senior citizens who do not require assistance in their daily activities.
The Partnership's two remaining nursing facilities are certified to receive
benefits under joint Federal and State funded programs administered by the
respective states to provide medical assistance to the indigent, known
generally as the "Medicaid" program. Both nursing facilities are certified
for benefits under the Federal Health Insurance for the Aged Act ("Medicare")
which provides for reimbursement for skilled care only in those facilities
which are certified for this program. The two retirement centers received
revenue on a private pay basis from the resident renting the unit.
Medicaid reimbursement formulas vary by state and are established in
accordance with Federal guidelines. Typically, Medicaid provides for
reimbursement for nursing home care of an all-inclusive nature up to specified
limits based on historical costs, with adjustments for inflation. Federal law
requires that Medicaid reimbursement rates be reasonable and adequate to meet
the costs which are incurred by efficiently and economically operated
facilities to provide care and services in conformity with applicable laws,
regulations and quality and safety standards.
The Medicare and Medicaid programs are subject to statutory and regulatory
changes, administrative rulings, interpretations of policy and determinations
by intermediaries, and to governmental funding restrictions, all of which may
materially increase or decrease program payments to long-term care facilities
and could adversely affect the operations of the Partnership's nursing home
facilities.
In the operation and sale of properties, the Partnership competes with a
number of individuals and entities, including large, national nursing home
chains and small, locally owned geriatric care facilities. Some competing
operators have greater financial resources than the Partnership or may operate
on a nonprofit basis or as charitable organizations. The degree of success
with which the Partnership's facilities compete varies by location and depends
on a number of factors. The Partnership believes that the quality of care
provided, the reputation and physical appearance of facilities and, in the
case of private pay patients, charges for services, are significant
competitive factors. There is limited, if any, competition in price with
respect to Medicaid and Medicare patients since revenues for services to such
patients are strictly controlled and based on fixed rates and cost
reimbursement principles. In light of these factors, the Partnership seeks to
meet competition in each locality by improving the quality of services
provided at its facilities, establishing a reputation within the local medical
community for providing excellent care services, and by responding
appropriately to regional variations in demographics and tastes. In most
states, approval by state health care regulatory agencies must be obtained,
and a Certificate of Need ( CON ) or authorization issued, before new long-
term care beds can be constructed. This tends to stabilize competition,
however, some states have already or are considering repeal of CON programs.
The following table sets forth information regarding the average daily census
and sources of patient revenues at the Partnership's facilities at December
31, 1995:
Average Daily Census Revenues
for Year Ended for Year Ended
December 31, 1995 December 31 ,1995
Medicaid 164 78% 77%
Private Pay 29 14% 13%
VA, Medicare and Other 16 8% 10%
209 100% 100%
Overall Occupancy Rate 80%
Because of a changing census mix (i.e. private pay patients vs. government
reimbursed patients), the occupancy required for a facility to achieve an
operating break-even point cannot be determined precisely. Generally, a
greater ratio of Medicaid patients will require a higher occupancy to reach a
break-even point. On the other hand, a high Medicare census can reduce the
occupancy break-even point due to a higher reimbursement rate.
All licensed beds in the operating facilities are available except in a few
instances where a small number of rooms have been taken out of service to be
utilized as office space and ancillary support areas, including revenue-
generating rehabilitation services.
ITEM 2. DESCRIPTION OF PROPERTY
The following table sets forth the investment portfolio of the Partnership at
December 31, 1995. The buildings of the projects and the land on which they
are located are owned by the Partnership in fee simple.
Properties (dollars in 000 s)
Secured Acquisition Book Date
Property Debt Cost Value Acquired
Grandview Manor
Nursing Home
Camp Point, IL
118 Licensed
Nursing Home
Beds $ -(2) $2,741 $ 627(1) August 1986
Heritage Manor
of Westwood
Shreveport, LA
142 Licensed
Nursing Home
Beds - 3,747 1,921(1) September 1986
$ - $6,488 $2,548
These facilities have a total of 260 Beds
(1) A provision was made to write down the facility, for Partnership
financial statement purposes, to their net realizable values as
determined by the Corporate General Partner at the time of the write-
downs (See Item 8, Note 5). The amount reflects this write-down.
(2) Debt secured by the Grandview Manor Nursing Home was paid off in January
1995, with the proceeds from the sales of Paradise Cove and Highland
Cove.
Rental Rates and Occupancy
Years Ended December 31,
1995 1994 1993 1992 1991
Grandview Manor
Nursing Home
Occupancy
Rate 82% 81% 85% 92% 83%
Rental Rate
(PPD) $59 $62 $62 $57 $49
Heritage Manor
of Westwood
Occupancy
Rate 79% 81% 79% 82% 90%
Rental Rate
(PPD) $86 $67 $63 $58 $47
Rental rates for nursing homes are presented using Per-Patient-Day Amounts
( PPD ), the industry standard for comparison. The PPD amount is the average
rental revenue for a day of housing and services.
ITEM 3. LEGAL PROCEEDINGS
The Partnership is not a party to any material pending legal proceedings,
other than ordinary litigation routine to the Partnership s Business.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S UNITS OF LIMITED PARTNERSHIP
AND SECURITY HOLDER MATTERS
(A) No market for Limited Partnership Units exists nor is one expected to
develop.
(B) Title of Class Number of Record Unit Holders
Limited Partnership Units 3,420 as of March 1996
(C) Due to improved operations and the sale of facilities following the
change of control of the Corporate General Partner, the Partnership
reinstituted distributions in 1991. The Partnership distributed
$899,994 to the Limited Partners during 1991, $850,000 in 1992,
$6,300,000 in 1993, $600,000 in 1994, and $750,000 in 1995. The
Corporate General Partner anticipates that distributions will continue
at a reduced level in 1996 due to the sales of the Partnerships' two
retirement centers in 1995.
Distributions had been suspended since 1988 and thus there were no
distributions to the Limited Partners in 1990. Cumulative distributions
paid to the Limited Partners as of December 31, 1995, were $12,196,595.
There have been no distributions to the General Partners. See Item 7 -
Management's Discussion and Analysis of Financial Condition and Results
of Operations and Item 8, Note 4 for discussion of distributions.
ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth a summary of certain financial data for the
Partnership. This summary should be read in conjunction with the notes to the
Partnership's financial statements appearing in Item 8.
Year Ended December 31,
(dollars in 000 s, except per share figures)
Statement of
Operations 1995(1) 1994 1993(2) 1992 1991(3)
Operating revenue $5,782 $8,846 $21,969 $25,378 $24,413
Income (loss) before
extraordinary gain 2,538 (659) 2,054 520 117
Net income (loss) 2,538 (659) 2,054 520 1,537
Income (loss) before
extra-ordinary gain
per weighted
average L.P. Unit 83.13 (21.57) 70.31 17.03 3.07
Net income (loss) per
weighted
average L.P. unit 83.13 (21.57) 70.31 17.03 51.04
Distribution paid per
weighted
average L.P. Unit 25.59 20.47 214.96 29.00 30.71
(1) During 1995, the Partnership sold two facilities.
(2) During 1993, the Partnership sold eight
facilities.
(3)During 1991, the Partnership sold two facilities.
December 31, (dollars in 000 s)
Balance Sheets 1995(1) 1994(2) 1993(3) 1992 1991
Property held for sale $2,548 $ 8,697 $ - $ - $ -
Property and
equipment, net - - 9,238 23,533 20,968
Total assets 4,128 10,492 11,841 28,360 31,751
Long-term debt
obligations, less
current maturities - - - 19,385 19,581
Partners equity 3,585 1,797 3,056 7,302 7,632
(1) During 1995, the Partnership sold two facilities and two facilities
remained in property held for sale.
(2) During 1994, four facilities were transferred to property held for sale.
(3) During 1993, the Partnership sold eight facilities.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Plan of Operations
A majority-in-interest of the Partnership's Limited Partners approved a
proposal, on October 18, 1994, which provides for the sale of all of the
Partnership's remaining assets and the eventual dissolution of the
Partnership, as outlined in a proxy statement dated September 28, 1994. Under
the approved proposal, the Limited Partners consented for the Managing General
Partner to attempt to sell or otherwise dispose of its remaining properties
prior to October 18, 1997. Upon the disposition of all of its assets, the
approved proposal requires that the Managing General Partner dissolve the
Partnership.
The Partnership will continue to operate the facilities as it proceeds with
the sale of its facilities.
At December 31, 1995, the Partnership has held available for sale all of its
nursing home facilities. Accordingly, the Partnership has classified the
facilities as property held for sale in the accompanying balance sheet. On
January 31, 1995, the Partnership sold Highland Cove Retirement Center and
Paradise Cove Retirement Center and retired the Partnership's mortgage debt
obligations with the proceeds from the sales.
Results of Operations
Revenue:
1995 compared to 1994:
Operating revenue decreased by 3,063,791 in 1995. This decrease is primarily
due to the sale of two facilities. The Partnership sold its two retirement
centers Paradise Cove Retirement Center ( Paradise Cove ) and Highland Cove
Retirement Center ( Highland Cove ) on January 31, 1995. Operating revenues
generated by the sold centers were $304,111 during 1995. During 1994 the two
sold facilities generated revenues of $3,739,281. Revenues for 1995 at the
Partnership s remaining facilities increased primarily due to increased
reimbursement rates and increased Medicare patient days at the Partnership s
two remaining nursing facilities.
1994 compared to 1993:
Operating revenues decreased by $13,122,938 in 1994 as compared to the prior
year. Effective October 1, 1993, eight of the Partnership's facilities were
sold and therefore nine months of revenues generated by these facilities are
included in 1993 operations. During 1993, the Partnership's facilities sold
during 1993 generated revenues of $13,632,441. Revenues for 1994 at the
Partnership's remaining facilities increased primarily due to inflationary
rate increases.
Expenses:
1995 compared to 1994
Operating expenses decreased by $1,398,208 in 1995. This decrease is
primarily due to the sale of the two facilities sold January 31, 1995.
Operating expenses incurred by the sold centers were $590,262 during 1995.
During 1994 the sold facilities produced operating expenses of approximately
$1,977,676. Operating expenses at the partnerships remaining facilities
increased primarily due to the salary expenses and inflationary increases.
Interest expense decreased $945,901 from the prior year, due to the retirement
of all the Partnership s debt obligations in January 1995, using the proceeds
from the sales of the two facilities.
1994 compared to 1993:
Operating expenses decreased by $10,831,796 in 1994 as compared to the prior
year. This decrease is primarily due to the sale of eight of the
Partnership's facilities effective October 1, 1993. During 1993 the sold
facilities produced operating expenses of approximately $11,634,000.
Operating expenses for 1994 at the Partnership's remaining facilities
increased due to staffing costs, expenses associated with additional services
and inflationary increases.
Liquidity and Capital Resources
At December 31, 1995, the Partnership held cash and cash equivalents of
$729,876, a decrease of $46,378 from the amount held at December 31, 1994.
During 1995, the Partnership made distributions to the Limited Partners
totalling $750,000. The Partnership made a distribution to the Limited
Partners totalling $150,000 in February 1996. Cash is being held in reserve
for working capital and operating contingencies.
During 1995, proceeds from the sale of two facilities and cash reserves from
1994 were adequate to cover all operating and debt service obligations of the
Partnership and provide for distributions to the Limited Partners. During
1995, the Partnership s facilities produced positive cash flow from operations
and management anticipates that the Partnership should generate positive cash
flow during 1996.
As of December 31, 1995, the Partnership was not obligated to perform any
major capital additions or renovations. No such major capital expenditures or
renovations are planned for 1996, other than necessary repairs, maintenance
and improvements which will be funded by operations.
The Partnership sold its two retirement centers on January 31, 1995. The
proceeds from the sales were used to satisfy all of the Partnership's mortgage
debt obligations which would have matured February 1, 1995. As a result, the
Partnership's remaining facilities are owned free and clear of all debt. The
sale also provided cash to the Partnership of approximately $800,000, of which
$750,000 was distributed to the Limited Partners on February 10, 1995.
Significant changes have and will continue to be made in government
reimbursement programs, and such changes could have a material impact on
future reimbursement formulas. Based on information currently available,
Management does not believe proposed legislation will have an adverse effect
on the Partnership's operations. However, as health care reform is ongoing,
the long-term effects of such changes cannot be accurately predicted at the
present time.
Based on the Partnership's present cash balance, and the expectation of
positive cash flow from operations, management believes the Partnership will
have sufficient cash resources to meet its operating and capital requirements
in 1996. The Partnership does not, however, have existing lines of credit to
draw on in the unlikely event that present resources or cash flow from
operations should be inadequate.
Accounting Pronouncement
The Financial Accounting Standards Board has issued Statement on Financial
Accounting Standards No. 121, Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to be Disposed Of (SFAS No. 121). The
Company will adopt this standard in Fiscal 1996. In management s opinion,
there will be no material effect on the Company s financial statements of
adopting SFAS No. 121.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Index Page Number
Report of Independent Certified Public Accountants 12
Financial Statements
Balance Sheets - December 31, 1995 and 1994 13
Statements of Operations
- Years ended December 31, 1995, 1994 and 1993 14
Statements of Partners' Equity (Deficit)
- Years ended December 31, 1995, 1994 and 1993 15
Statements of Cash Flows
- Years ended December 31, 1995, 1994 and 1993 16
Summary of Significant Accounting Policies 17-19
Notes to Financial Statements 20-23
The following financial statement schedule for the years ended December 31,
1995, 1994 and 1993 of the Registrant is submitted herewith in response to
Item 14 (a)(2):
Schedule II - Valuation and Qualifying Accounts 25
All other schedules of the Partnership for which provision is made in the
applicable regulations of the Securities and Exchange Commission are not
required under the related instructions, are inapplicable or have been
disclosed in the notes to the consolidated financial statements and,
therefore, have been omitted.
Report of Independent Certified Public Accountants
The Partners
Consolidated Resources Health Care Fund VI
We have audited the accompanying balance sheets of Consolidated Resources
Health Care Fund VI (a limited partnership) (the "Partnership"), as of
December 31, 1995 and 1994, and the related statements of operations,
partners' equity (deficit) and cash flows for each of the years in the three
year period ended December 31, 1995. We have also audited the schedule listed
in the accompanying index. These financial statements and schedule are the
responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements and schedule based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
schedule are free of material misstatement. An audit includes examining on a
test basis evidence supporting the amounts and disclosures in the financial
statements and schedule. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements and schedule.
We believe that our audits provide a reasonable basis for our opinion.
The Partnership is operating its properties under a plan approved by its
Limited Partners, as described in the Summary of Significant Accounting
Policies, to sell or otherwise dispose of its remaining properties by October
18, 1997.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Consolidated Resources Health
Care Fund VI (a limited partnership) at December 31, 1995 and 1994, and the
results of its operations and its cash flows for each of the years in the
three year period ended December 31, 1995 in conformity with generally
accepted accounting principles.
Also, in our opinion, the schedule presents fairly, in all material respects,
the information set forth therein.
BDO Seidman, LLP
Atlanta, Georgia
March 1, 1996
Consolidated Resources Health Care Fund VI
(limited partnerships)
Balance Sheets
December 31, 1995 1994
ASSETS
Current
Cash and cash equivalents (Note 9) $ 729,876 $ 776,254
Patient accounts receivable, net (Note 8) 846,399 910,853
Prepaid insurance 2,469 32,519
Other current assets 1,633 75,254
Property held for sale (Notes 3, 5 and 6) 2,548,084 8,697,111
Total current assets $4,128,461 $10,491,991
LIABILITIES AND PARTNERS' EQUITY
Current liabilities
Mortgage debt obligations (Notes 1 and 3) $ - $7,885,442
Trade accounts payable 133,002 331,463
Accrued compensation 150,396 170,914
Accrued interest (Note 3) - 27,636
Provider taxes payable 19,279 21,437
Other liabilities 240,684 257,882
Total liabilities 543,361 8,694,774
Commitments and contingencies
(Notes 9, 10)
Partners' equity (deficit) (Note 4)
Limited partners 3,961,300 2,186,922
General partners (376,200) (389,705)
Total partners' equity 3,585,100 1,797,217
$4,128,461 $10,491,991
See accompanying summary of significant accounting policies and notes to
financial statements.
Consolidated Resources Health Care Fund VI
(limited partnerships)
Statements of Operations
Years ended December 31, 1995 1994 1993
Revenues
Operating revenue $ 5,782,214 $ 8,846,005 $21,968,943
Interest income 41,873 64,847 98,955
Total revenues 5,824,087 8,910,852 22,067,898
Expenses
Operating expenses 5,183,830 6,610,071 17,441,867
Interest 69,603 1,015,504 2,034,273
Depreciation and amortization 318,606 773,842 1,654,701
Management fees (Note 2) 352,576 523,483 1,322,772
Real estate taxes 135,941 229,355 294,419
Partnership administration costs
(Note 2) 159,325 220,144 235,816
Loan extension fees (Note 3) - 288,392 -
Total expenses 6,219,881 9,660,791 22,983,848
Operating income (loss) (395,794) (749,939) (915,950)
Litigation settlement income (Note 7) - 91,301 -
Gain on disposition of properties
(Note 6) 2,933,677 - 2,969,662
Net income (loss) $2,537,883 $(658,638) $2,053,712
Net income (loss) per L.P. unit $86.13 $(21.57) $70.31
Distributions paid per L.P. unit $25.59 $20.47 $214.96
L.P. units outstanding 29,308 29,308 29,308
See accompanying summary of significant accounting policies and notes to
financial statements.
Consolidated Resources Health Care Fund VI
(limited partnerships)
Statements of Partners Equity (Deficit)
Years Ended December 31, 1995, 1994 and 1993
Total
Partners
Limited General Equity
Balance, at January 1, 1993 $7,658,561 $(356,418) $7,302,143
Net income (loss) 2,060,653 (6,941) 2,053,712
Distributions (6,300,000) - (6,300,000)
Balance, at December 31, 1993 3,419,214 (363,359) 3,055,855
Net loss (632,292) (26,346) (658,638)
Distributions (600,000) - (600,000)
Balance, at December 31, 1994 2,186,922 (389,705) 1,797,217
Net income 2,524,378 13,505 2,537,883
Distributions (750,000) - (750,000)
Balance, at December 31, 1995 $3,961,300 $(376,200) $ 3,585,100
See accompanying summary of significant accounting policies and notes to
financial statements.
Consolidated Resources Health Care Fund VI
(limited partnerships)
Statements of Cash Flows
Years ended December 31, 1995 1994 1993
Operating activities
Net income (loss) $2,537,883 $(658,638) $2,053,712
Adjustments to reconcile net
income to cash provided by
operating activities:
Depreciation and amortization 318,606 773,842 1,654,701
Bad debts - - 289,764
Gain on disposition of properties (2,933,677) - (2,969,662)
Changes in assets and liabilities:
Patient accounts receivable 64,454 (102,550) 1,145,545
Prepaid expenses and other 30,050 78,121 233,057
Other assets 73,621 264,761 5,570
Trade accounts payable and
accrued liabilities (265,971) 30,450 (828,425)
Cash provided by (used in)
operating activities (175,034) 385,986 1,584,262
Investing activities
Payment for purchases of
property and equipment (34,476) (216,067) (399,000)
Proceeds from sale of properties 8,798,574 - 16,056,985
Cash provided by (used in) investing
activities 8,764,098 (216,067) 15,657,985
Financing activities
Principal payments on long-term
debt obligations (7,885,442) (121,249)(11,444,223)
Distributions to limited partners (750,000) (600,000) (6,300,000)
Cash used in financing activities (8,635,442) (721,249)(17,744,223)
Net decrease in cash and cash
equivalents, (46,378) (551,330) (501,976)
Cash and cash equivalents,
beginning of year 776,254 1,327,584 1,829,560
Cash and cash equivalents,
end of year $729,876 $776,254 $1,327,584
See accompanying summary of significant accounting policies and notes to
financial statements.
Consolidated Resources Health Care Fund VI
(limited partnerships)
Summary of Significant Accounting Policies
Organization
Consolidated Resources Health Care Fund VI (the "Partnership") was organized
on January 2, 1985 as a limited partnership under the provisions of the
Georgia Uniform Limited Partnership Act for the purpose of acquiring,
operating and holding for investment and future capital appreciation, income
producing, health care related real properties. The occupancy rate, in the
aggregate, for the Partnership's properties was 80% for the year ended
December 31, 1995.
The General Partners of the Partnership are WelCare Service Corporation-VI, a
Georgia corporation ("WSC-VI"), Consolidated Resources VI, Inc. serving as the
Corporate General Partner, a Georgia corporation and a wholly-owned subsidiary
of WelCare Consolidated Resources Corporation of America ("WCRCA"), and
Consolidated Associates VI, a Georgia general partnership (collectively the
"General Partners"). WSC-VI and WCRCA are wholly-owned subsidiaries of
WelCare Acquisition Corp., which is a wholly-owned subsidiary of WelCare
International, Inc., ("WelCare"). WelCare, a privately-owned Georgia
corporation, is engaged in the operation, acquisition, property management and
oversight management of long-term care facilities. Consolidated Associates VI
is composed of WCRCA, as the managing general partner, and individuals who
were previously associated with Consolidated Resources Corporation of America
("CRCA").
Pursuant to an agreement dated October 30, 1985, CRCA, a Georgia corporation
that initially was the Corporate General Partner of the Partnership, was
merged into a subsidiary of Southmark Corporation ("Southmark"). The name of
the surviving Southmark subsidiary was then changed to Southmark Consolidated
Resources Corporation of America ("SCRCA"). Southmark emerged from Chapter 11
bankruptcy on August 10, 1990 and has liquidated most of its assets pursuant
to a plan of reorganization. On November 20, 1990, WelCare Acquisition Corp.,
acquired from Southmark all the stock of SCRCA whose name was then changed to
WelCare Consolidated Resources Corporation of America. Effective January 7,
1992, WSC-VI was added as the managing general partner.
A majority-in-interest of the Partnership's limited partners approved a
proposal, on October 18, 1994, which provides for the sale of all of the
Partnership's remaining assets and the eventual dissolution of the
Partnership, as outlined in a proxy statement dated September 28, 1994. Under
the approved proposal, the Limited Partners consented for the Managing General
Partner to attempt to sell or otherwise dispose of its remaining properties
prior to October 18, 1997. Upon the disposition of all of its assets, the
approved proposal requires that the Managing General Partner dissolve the
Partnership.
The Partnership will continue to operate the facilities and plans to sell the
properties to prospective purchasers.
At December 31, 1995 and 1994, the Partnership has held available for sale all
of its nursing home facilities. Accordingly, the Partnership has classified
the facilities as property held for sale in the accompanying balance sheets.
The financial statements do not reflect assets the partners may have outside
their interests in the Partnership, nor any personal obligations, including
income taxes, of the individual partners.
Consolidated Resources Health Care Fund VI
(limited partnerships)
Summary of Significant Accounting Policies
Property Held for Sale
Property held for sale at December 31, 1995, consists of two nursing home
facilities owned by the Partnership and carried at the lower of cost or net
realizable value less estimated cost to dispose. In accordance with a plan
approved by the Limited Partners on October 18, 1994, the Managing General
Partner has been given permission to either sell or otherwise dispose of the
Partnership's assets by October 18, 1997. Accordingly, all facilities of the
Partnership have been classified as property held for sale as of December 31,
1995. As discussed in Note 6, two retirement centers were sold in January
1995.
The Financial Accounting Standards Board has issued Statement on Financial
Accounting Standards No. 121, Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to be Disposed Of (SFAS No. 121). The
Company will adopt this standard in Fiscal 1996. In management s opinion,
there will be no material effect on the Company s financial statements of
adopting SFAS No. 121.
Depreciation and Amortization
Property and equipment are depreciated using the straight-line method over
lives of 5 to 30 years. Renewals and betterments are capitalized and repairs
and maintenance are charged to operations as incurred.
Operating Revenue
Operating revenue is recorded when services are rendered and includes amounts
reimbursable by Medicaid and Medicare. Medicare revenue is recorded at the
applicable net reimbursement rates; therefore, no contractual adjustments are
reported.
Income Taxes
No provision has been made in the financial statements for Federal income
taxes because under current law, no Federal income taxes are paid directly by
the Partnership. The Partnership reports certain transactions differently for
tax and financial statement purposes.
Allocation of Net Income or Net Loss
The Partnership's net profits and net losses (other than net profits or net
losses from a sale or refinancing of Partnership property) are allocated 96%
to the Limited Partners and 4% to the General Partners. Distributions are
determined by the method described in Note 4.
Net losses resulting from a sale or refinancing shall be allocated 99% to the
Limited Partners and 1% to the General Partners. Net profits resulting from a
sale or refinancing shall be allocated in the following order:
(1) First, 1% to the General Partners and 99% to the Limited Partners until
the net profits allocated to the Limited Partners from such sale or
refinancing equals the excess of the greater of the following items
over their capital account immediately prior to such sale or
refinancing:
(a) zero; or
Consolidated Resources Health Care Fund VI
(limited partnerships)
Summary of Significant Accounting Policies
(b) the Limited Partners' invested capital immediately prior to such
sale or refinancing plus 9% per annum of the Limited Partners' average
invested capital for all fiscal years to the extent not received
through prior distributions of distributable cash from operations or
sale or refinancing proceeds; or
(c) the amount of sale or refinancing proceeds
distributable to the Limited Partners;
(2) Second, to the General Partners until the net profits allocated to the
General Partners from such sale or refinancing equals the excess of the
greater of the following items over their capital account immediately
prior to such sale or refinancing:
(a) zero; or
(b) the amount of sale or refinancing proceeds distributable to the
General Partners from such sale or refinancing;
(3) Third, any remaining net profits shall be allocated 15% to the General
Partners and 85% to the Limited Partners.
Upon dissolution of the Partnership, the General Partners are required to
contribute to the Partnership an amount equal to the lesser of (1) the deficit
balances in their capital accounts at the time of dissolution, or (2)
$296,010, which is 1.01% of capital contributions made by the Limited
Partners. Any funds so contributed will become assets of the Partnership to
be liquidated as provided by the Partnership agreement. This provision could
affect the amounts of income or loss allocated to the Limited Partners' and
General Partners' capital accounts.
Net Income (Loss) Per Limited Partnership Unit
Net income (loss) per Limited Partnership Unit is computed by dividing net
income (loss) allocated to the Limited Partners by the number of Limited
Partnership Units outstanding.
Reclassifications
Certain 1993 and 1994 amounts have been reclassified to conform with the 1995
presentation.
Statements of Cash Flows
For purposes of this statement, cash equivalents include bank repurchase
agreements, commercial paper, and certificates of deposits with original
maturities of three months or less.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Consolidated Resources Health Care Fund VI
(limited partnerships)
Notes to Financial Statements
1. Transactions With Former Affiliates
The Partnership had mortgages secured by owned facilities payable to
Southmark, totalling $7,885,442 at December 31, 1994. These obligations were
retired in 1995 in conjunction with the sale of two facilities (see Note 6).
Amounts claimed payable to former affiliates (primarily Southmark and the
Corporate General Partner), totalled $115,211, including accrued interest, at
December 31, 1995 and 1994, and are included in the other liabilities in the
accompanying balance sheets. In July 1991 Southmark filed suit demanding
payment of the alleged advances. In 1991, after WelCare's affiliate acquired
the Corporate General Partner, it challenged the validity of some of these
payables through claims filed against the Southmark bankruptcy estate. In
1994, the suits were settled whereby the Partnership was released of all
liabilities to Southmark (See Note 7).
2. Management Fees
During 1991, an affiliate of the Corporate General Partner assumed management
responsibility for all of its nursing homes and received a fee of 5% of gross
revenues. During 1992, the affiliate assumed the accounting function of the
homes and received an additional fee of 1% of gross revenues.
This affiliate of the Corporate General Partner earned management and
oversight fees from the Partnership of $352,576, $336,518 and $559,747 during
1995, 1994 and 1993, respectively. Included in Partnership administration
costs are reimbursable costs incurred in connection with the administration of
Partnership activities of $131,292, $170,501 and $199,565 during 1995, 1994
and 1993, respectively.
The two retirement centers, prior to their sale in January 1995, were managed
by a company that is unaffiliated with WelCare, for a fee of 5% of gross
revenues.
3. Mortgage Debt Obligations
At December 31, 1995, the partnership was not obligated under any long-term
debt.
At December 31, 1994, the partnership was obligated under mortgage notes
collateralized by property and equipment totalling $7,885,442. As discussed
in Note 6, these debt obligations were satisfied in connection with the sales
of two facilities on January 31, 1995. During 1994, the Partnership paid
$288,392 in loan extension fees to the lender relating to these debts.
The Partnership paid interest of $69,603, $1,070,661 and $2,024,945 in 1995,
1994 and 1993, respectively.
4. Distributions
Distributions to the Partners are paid from operations of the Partnership's
properties, or from sales or refinancing of properties. Cash from operations
is distributed 96% to the Limited Partners and 4% to the General Partners.
However, no distributions may be made to the General Partners in any year
until the Limited Partners have received distributions for such year equal to
9% of their invested capital.
Distributions of cash from sales and refinancing are made in the following
order:
(a) first to the Limited Partners in an amount equal to their invested
capital; then,
Consolidated Resources Health Care Fund VI
(limited partnerships)
Notes to Financial Statements
(b) to the Limited Partners in an amount necessary to provide the Limited
Partners with a 9% cumulative, non-compounded return on invested capital
to the extent not previously received through distributions of
distributable cash from operations; then,
(c) to the General Partners in an amount up to 3% of the sale price of all
properties on a cumulative basis; then,
(d) the balance 15% to the General Partners and 85% to the Limited Partners.
The Partnership distributed to the Limited Partners $750,000, $600,000 and
$6,300,000 during 1995, 1994 and 1993, respectively. There have been no
distributions to the General Partners.
5. Loss From Write-Down of Properties
Prior to 1992, the Partnership recorded write downs to reduce the carrying
value of certain properties to their estimated net realizable value as
determined by the Corporate General Partner. These write-downs were as
follows as of December 31, 1995.
1995 1994
Highland Cove Retirement Center $ - $4,005,190
Paradise Cove Retirement Center - 1,479,197
Grandview Manor Nursing Home 1,001,839 1,001,839
Heritage Manor of Westwood 312,463 312,463
$1,314,302 $6,798,689
Property held for sale at December 31, 1995, consisted of the Partnership s
two nursing home facilities. At December 31, 1994, Property held for sale
included the Partnership s two nursing home facilities and two retirement
centers. The two retirement centers were sold on January 31, 1995, as
discussed more fully in Note 6. The facilities comprising Property Held for
Sale at December 31, 1995 were as follows:
Net Book
Value
Grandview Manor Nursing Home $ 627,434
Heritage Manor of Westwood 1,920,650
$2,548,084
6. Property Dispositions
On January 31, 1995, following the pursuit of several offers, the Partnership
sold Paradise Cove Retirement Park ( Paradise Cove ), located in Nevada and
Highland Cove Retirement Center ( Highland Cove ), located in Utah, to Life
Care Centers of America, Inc., an unaffiliated company that has managed the
two retirement centers since March 1991. These centers were included in
Property held for sale at December 31, 1994. The purchase prices were
$6,000,000 and $2,798,574 for Highland Cove and Paradise Cove, respectively.
The Partnership used the sales proceeds to satisfy $7,960,287 in mortgage
debts secured by Highland Cove, Paradise Cove, and Grandview Manor. During
1995, the Partnership recognized a gain on the sales of $2,933,677.
Consolidated Resources Health Care Fund VI
(limited partnerships)
Notes to Financial Statements
On October 20, 1993, the Partnership sold five facilities located in
Mississippi and three located in Louisiana for $16,056,985 (net of certain
adjustments and prorations) pursuant to a purchase and sale agreement dated as
of October 1, 1993. The purchase price for the eight facilities was paid in
cash and each of the facilities was sold for amounts in excess of their
respective net book values which resulted in a recognized gain of
approximately $2,970,000.
The eight facilities sold were Heritage Manor of Ferriday, Heritage Manor of
Franklinton, Heritage Manor of Bossier, Glenburney Manor, Hilltop Manor,
McComb Extended Care Center, Starkville Manor and Winona Manor. During the
nine months ended September 30, 1993, these sold facilities earned
approximately $13,632,000 in revenue and incurred approximately $11,634,000 in
expenses.
After repayment of existing debt obligations on the eight facilities sold, the
Partnership received $5,042,903 in cash proceeds, $550,000 of which was used
to pay down the existing debt secured by Grandview Manor and Paradise Cove
Retirement Center.
7. Southmark Litigation
In November 1990, the Partnership filed claims against Southmark in the United
States Bankruptcy Court for the Northern District of Texas. In August 1991,
the Partnership was served notice that Southmark filed suit against the
Partnership, the Corporate General Partner, and partnerships and corporations
which are unaffiliated with the Partnership or the Corporate General Partner.
In this suit, Southmark was seeking $126,361 alleging a fraudulent,
preferential or post-petition transfer. On October 15, 1991, the Partnership
filed its response, including counterclaims against Southmark, for alleged
fraud and misrepresentation and asserting that in fact Southmark owed amounts
to the Partnership as represented by Proof of Claims filed against Southmark's
bankruptcy estate.
The Partnership and Southmark reached a settlement which was effectively filed
with the Bankruptcy Court in January 1994, regarding the claims filed by the
Partnership against Southmark and Southmark's suit against the Partnership.
Under this settlement, Southmark released all claims against the Partnership
and recognized the Partnership's claims. In settlement of the Partnership's
claims, Southmark paid the Partnership $91,301 during 1994.
8. Cost Reimbursements
Accounts receivable and operating revenue include amounts estimated by
management to be reimbursable by Medicaid and other third-party programs under
the provisions of cost reimbursement formulas in effect. Final determination
of amounts earned is subject to audit by the intermediaries. In the opinion
of management, adequate provision has been made for any adjustments that may
result from such audits. Differences between estimated provisions and final
settlement are reflected as charges or credits to operating revenue in the
year finalized. Medicaid programs accounted for approximately 78%, 79% and 70%
of operating revenue during 1995, 1994 and 1993, respectively.
Accounts receivable are recorded at net realizable value and relate
principally to amounts due from various state Medicaid programs. Receivables
from these programs were approximately as follows:
Consolidated Resources Health Care Fund VI
(limited partnerships)
Notes to Financial Statements
1995 1994
Illinois $287,553 $542,225
Louisisana 308,141 197,388
Significant changes have and will continue to be made in government
reimbursement programs, and such changes could have a material impact on
future reimbursement formulas.
Amounts due from Medicaid programs are generally paid on an interim and final
basis, depending on the state, primarily within 30 to 60 days from date of
billing.
9. Concentration of Credit Risk
At December 31, 1995, the Partnership had cash invested in commercial paper
totalling $650,000 and cash on deposit with a bank which exceeded Federal
Deposit Insurance Corporation limits by $208,000.
10. Supplemental Disclosures of Cash Flow Information
As discussed in Note 6, the Partnership sold two facilities on January 31,
1995. Gains on these sales, which equaled $2,933,677, are included in gain on
disposition of properties in the accompanying statement of cash flows.
Schedules
Consolidated Resources Health Care Fund VI
(limited partnerships)
Schedule II - Valuation and Qualifying Accounts
Years Ended December 31, 1995, 1994 and 1993
Additions
Balance at charged to
beginning of costs and
year expenses Deductions(1) end of year
1995
Allowance for
doubtful
accounts $ - $ 25,251 $ 25,251 $ -
1994
Allowance for
doubtful
accounts $222,373 $ 96,858 $319,231 $ -
1993
Allowance for
doubtful
accounts $222,938 $289,764 $290,329 $222,373
Represents direct write-offs of receivables.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
None.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The Partnership does not have officers or directors. At December 31, 1995,
the General Partners of the Partnership were WelCare Service Corporation-VI,
Consolidated Resources VI, Inc., and Consolidated Associates VI. The
executive officers and director of WelCare Service Corporation-VI and
Consolidated Resources VI, Inc., who control the affairs of the Partnership,
are as follows:
Name and Position Age Other Principal Occupations and Other
Directorships During the Past 5 Years
J. Stephen Eaton 45 Mr. Eaton has been President and Director of
President and 45 WelCare International, Inc. since its formation in
Director February 1989. WelCare International, Inc., an
affiliate of the General Partners, is engaged in
the operation, acquisition, property management
and oversight management of long-term care
facilities. Since 1988, Mr. Eaton has served as a
Director and is currently Chairman of St. Joseph's
Mercy Care Corporation, a non-profit corporation.
Kent C. Fosha, Sr. 54 Mr. Fosha has been Executive Vice President of
Executive Vice WelCare International, Inc. since 1990. WelCare
President International, Inc., an affiliate of the General
Operations Partners, is engaged in the operation,
acquisition, property management and oversight
management of long-term care facilities. Mr.
Fosha is a licensed nursing home administrator in
the state of Georgia.
Alan C. Dahl 35 Mr. Dahl has been Executive Vice President of
Executive Vice WelCare International, Inc. since February 1991.
President WelCare International, Inc., an affiliate of the
General Partners, is engaged in the operation,
acquisition, property management and oversight
management of long-term care facilities. Mr. Dahl
is a certified public accountant.
ITEM 11. EXECUTIVE COMPENSATION
No individual principal or principals as a group received any direct
renumeration from the Partnership.
The General Partners are not compensated directly for their services as
General Partners of the Partnership. See Item 13 and Note 2 to the financial
statements appearing in Item 8 for further discussion of compensation paid to
affiliates of the General Partners.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
(A) Security ownership of certain beneficial owners.
No individual or group as defined by Section 13(d)(3) of the Securities
Exchange Act of 1934, known to the Partnership is the beneficial owner of
more than 5% of the Partnership's securities.
(B) Security ownership of management.
The General Partners and their management own less than 1%.
The General Partners are entitled to distributions of cash from operations
and from "other sources" (primarily from the sale or refinancing of
Partnership properties, as set forth in Item 8, Note 4).
(C) Change in control.
None.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Affiliates and former affiliates of the General Partners in accordance with
the Partnership Agreement may receive compensation for services rendered. The
following is a summary of compensation paid to or accrued for the benefit of
the General Partners and affiliates in 1994.
Oversight and management fees $352,576
Administration of Partnership activities (1) 131,292
(1) For reimbursement of expenses incurred by the General Partners in
performing certain administrative functions including investor relations
and accounting. See Note 2 to the accompanying financial statements
appearing in Item 8.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) The following documents are filed as a part of this report:
(1) Financial Statements Included in Part II, Item 8:
Report of Independent Certified Public Accountants
Balance Sheets
as of December 31, 1995 and 1994
Statements of Operations
for the Years Ended December 31, 1995, 1994 and 1993
Statements of Partners' Equity (Deficit)
for the Years Ended December 31, 1995, 1994 and 1993
Statements of Cash Flows
for the Years Ended December 31, 1995, 1994 and 1993
Summary of Significant Accounting Policies
Notes to Financial Statements
(2) Schedules Included in Part II, Item 8:
Schedule II - Valuation and Qualifying Accounts
for the Years Ended December 31, 1995, 1994 and 1993
(3) Exhibits:
The following exhibits are incorporated by reference and are an integral part
of this Form 10-K.
Exhibit Number
(as per Exhibit Table) Document Description
2.1 Liquidation Proposal incorporated by reference to the
Proxy Statement filed on September 28, 1994 file
0-15694.
3.1 Amended and Restated Agreement of Limited Partnership
Consolidated Resources Health Care Fund VI incorporat
by reference to Exhibit A to the Registration Stateme
on Form S-1, File No. 33-425
3.2 Amendment to Amended and Restated Agreement of Limite
Partnership of Consolidated Resources Health Care Fun
VI, incorporated by reference to the Proxy Statement
filed on November 19, 1991, File No. 0-15694.
10.1 Management Agreement dated as of January 1, 1992 by
Consolidated Resources Health Care Fund VI and Welcar
International Management Corporation, incorporated by
reference to Form 10-Q for the quarter ended March 1,
1992.
(b) Reports on Form 8-K:
(1) None
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
CONSOLIDATED RESOURCES HEALTH CARE FUND VI
(Registrant)
By: WELCARE CONSOLIDATED RESOURCES
CORPORATION OF AMERICA
Corporate General Partner
By:/S/ J. Stephen Eaton
Date J. Stephen Eaton,
President
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons, on behalf of the
Registrant and in the capacities and on the dates indicated:
By:/S/ J. Stephen Eaton
Date J. Stephen Eaton,
Sole Director and Principal
Executive Officer of the
Corporate General Partner
By:/S/ Alan C. Dahl
Date Alan C. Dahl
Chief Financial Officer
of the Corporate
General Partner
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS UNAUDITED SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE DECEMBER 31, 1995 10-K AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH 10-K.
</LEGEND>
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