June 16, 1997 CONFIDENTIAL Straus Associates c/o Daniel Straus 411 Hackensack Avenue Hackensack, NJ 07601 Re: Harrington Court, Colchester, Connecticut Gentlemen: The following confirms an agreement between Genesis Health Ventures, Inc., a...

                                                               Exhibit 11(c)(7)



                         GENESIS HEALTH VENTURES, INC.
                             000 Xxxx Xxxxx Xxxxxx
                      Xxxxxxx Xxxxxx, Xxxxxxxxxxxx  00000







                                                                   June 16, 1997



CONFIDENTIAL

Xxxxxx Associates
c/o Xxxxxx Xxxxxx
000 Xxxxxxxxxx Xxxxxx
Xxxxxxxxxx, XX  00000

                  Re:  Xxxxxxxxxx Xxxxx, Xxxxxxxxxx, Xxxxxxxxxxx

Gentlemen:

                  The following  confirms an agreement  between  Genesis  Health
Ventures,   Inc.,  a  Pennsylvania   corporation   located  in  Kennett  Square,
Pennsylvania,  or its designee  (hereinafter  referred to as "Buyer") and Xxxxxx
Associates,  a New York  partnership  with its  principal  place of  business in
Hackensack,  New Jersey ( the  "Partnership")  for Buyer to acquire the land and
buildings  owned by the  Partnership  located on Xxxxxxxxxx  Court,  Colchester,
County of New London,  Connecticut, as more particularly described on Schedule A
attached  hereto  and made a part  hereof  (collectively,  the  land,  building,
fixtures and personalty, being the "Facility").

         1.       Structure of Transaction.  Buyer will purchase the Facility
                  through an asset purchase.

         2.       Consideration.  In consideration for the Facility, on the
                  Closing Date, Buyer agrees to pay the Partnership Eight
                  Million Four Hundred Thousand Dollars ($8,400,000) (the
                  "Purchase Price") which shall be paid in cash on the Closing
                  Date.

         3.       Facility Lease. The Facility is subject to that certain Lease,
                  made as of November 14th, 1986, by and between the Partnership
                  and  Health  Resources  of  Colchester,  Inc.,  a  Connecticut
                  corporation,  as amended by those certain Amendments of Lease,
                  made  as  of  November   18,  1992  and   December   17,  1993
                  (collectively,  the "Lease"). Buyer agrees that the Lease will
                  be assumed by Buyer on the Closing  Date on the same  economic








Xxxxxx Associates
June 16, 1997
Page 2



                  terms existing on the Closing Date; provided, that the amount
                  of annual rent payable to Buyer pursuant to Section 2.1 of the
                  Lease will be fixed to equal the annual debt service  payments
                  under the indebtedness described in such section.

         4.       Access.  The Partnership will provide Buyer, its accountants,
                  counsel, and other representatives reasonable access to all
                  the properties, books, contracts and other records of the
                  Facility.

         5.       Conduct  of  Business.  From  the  date of this  letter  until
                  definitive   agreements  are  executed  and  the  transactions
                  described  herein  are   consummated,   the  Partnership  will
                  continue  to operate the  Facility  in the usual,  regular and
                  ordinary manner consistent with past practices,  and to comply
                  with all applicable laws, rules and regulations.

         6.       Limited Representations and Warranties. The Partnership hereby
                  represents  and  warrants  to Buyer (i)  attached as Exhibit A
                  hereto  is a  complete  and  correct  copy of the  Lease as in
                  effect on the date  hereof,  (ii) no  person  has an option to
                  acquire the Facility and (iii) attached as Exhibit B hereto is
                  a  summary  presentation  of  the  operating  results  of  the
                  Facility  for the fiscal years ended  December 31, 1995,  1996
                  and for the fiscal quarter ended March 31, 1997.

         7.       Conditions.  The parties agree that this agreement is subject
                  to the following conditions:

                  (a)      Execution by the parties of customary real estate
                           transfer documents at the closing.

                  (b)      The parties receiving all necessary governmental and
                           third party licenses, permits, regulatory approvals
                           and consents for the Transaction;

                  (c)      The Facility being  transferred free and clear of all
                           liens,  encumbrances  and  restrictions,  except  the
                           Lease and except for other imperfections which do not
                           materially adversely affect the value of the Facility
                           as a skilled nursing facility;

                  (d)      Compliance with all laws applicable to the proposed
                           transaction; and

                  (e)      Consummation of the Merger (as defined in the
                           Agreement and Plan of Merger (the "Merger Agreement")
                           by and among The Multicare Companies, Inc., Waltz
                           Acquisition Corp. and the other parties who are
                           signatories thereto).








Xxxxxx Associates
June 16, 1997
Page 3



         8.       Closing.  Buyer and the Partnership shall close the
                  transactions described herein contemporaneously with the
                  Effective Time (as defined in the Merger Agreement) (such
                  date, the "Closing Date").

         9.       Assignment.  Buyer may assign its rights under this agreement
                  to any designee; provided that Buyer shall remain obligated
                  hereunder regardless of any such assignment.

         10.      Termination.  This agreement shall terminate upon the earlier
                  of (a) the Closing Date and (b) the date the Merger Agreement
                  is terminated.

                  Please indicate your acceptance of the terms and conditions of
this  agreement by executing it in the space provided  below,  and returning one
executed  copy to Genesis.  Once  executed and returned to Genesis,  this letter
will  constitute  a binding  agreement  between  the  parties.  Upon our receipt
thereof,  Genesis will  undertake  the  preparation  of the proposed  definitive
agreements covering the transactions described herein.

            Very truly yours,

            GENESIS HEALTH VENTURES, INC.



            By: /S/ Xxxxxxx X. Xxxxxx
                --------------------------------


            The foregoing is agreed to by the undersigned.

            XXXXXX ASSOCIATES


            By: Xxxxxx X. Xxxxxx                        , its general partner
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