Fourth quarter profits slip by 13% at Kindred
Profits at Kindred Healthcare Inc., one of the largest nursing home chains in the United States, fell by 13% for the fourth quarter of 2006 on higher revenues. Pretax charges related to revenue adjustments at its institutional pharmacy business, KPS; the proposed spin-off of KPS; and rent rest issue with Ventas Inc., contributed to a lower bottom line.Earnings slipped to $22 million. Revenues rose by 13% to $1.1 billion during the same quarter. For the year, earnings dropped nearly in half to $78 million. Sales for 2006 rose to $4.3 billion.
"While we were pleased with our consolidated fourth-quarter operating results, our KPS pharmacy results in the fourth quarter were disappointing," said Paul J. Diaz, president and chief executive officer of Kindred. "Our soft operating results were primarily related to poor performance in our acquired pharmacy locations and transitional issues associated with the conversion to Medicare Part D."