Manor Care 1Q profits decrease 24% on higher revenues

Share this article:

Manor Care Inc., one of the three biggest U.S. nursing home chains, said its profits fell 24% in the first quarter as its revenues expanded by 10%. Results of operations included an "unusually high" $18 million of restricted stock compensation expense. First-quarter earnings totaled $31 million, compared with $41 million in the first quarter last year. Revenues rose to $879 million from $797 million in 2004.

First-quarter occupancy totaled more than 89% in the company's skilled nursing centers, remaining at a level near its five-year high. Skilled nursing Medicare revenues increased by nearly 9% in the quarter compared with the fourth quarter 2004. This increase drove the company's mix of Medicare, private pay and managed care/insurance revenues to a high of 71%.

Manor Care completed three nursing home expansions in the 2005 first quarter, and 15 nursing home expansions are ongoing. The fill-rate at two newly opened skilled nursing centers is occurring at "an accelerated rate," the company said. 

Share this article:

More in News

Long-term care continues to lead in deal volume and value: PwC report

Long-term care continues to lead in deal volume ...

Long-term care bucked healthcare industry trends with strong merger and acquisition activity in the second quarter of 2014, according to newly released data from professional services firm PricewaterhouseCoopers.

Empowering nurse practitioners could reduce hospitalizations from SNFs, study finds

Granting more authority to nurse practitioners is associated with reduced hospitalization of skilled nursing facility residents, according to recently published findings.

Pioneer ACO drops out of program, despite reductions in skilled nursing utilization

A California healthcare system has become the latest dropout from the Pioneer Accountable Care Organization program, despite reducing skilled nursing facility utilization and improving its readmission rates. Sharp HealthCare announced its decision in a quarterly financial statement released Tuesday.