Healthcare reform precipitates split in Extendicare's U.S. and Canadian operations, CEO says
Extendicare Inc., which operates more than 240 senior care centers, will be splitting up its U.S. and Canadian businesses, the company announced Thursday.
The company operates 158 facilities in the United States and 85 in Canada. The long-running challenge of operating in the two different countries has been made harder by healthcare reform in the United States, explained Extendicare CEO and President Tim Lukenda.
“The company's U.S. and Canadian healthcare businesses, from the perspectives of future challenges and opportunities and the resultant strategies, capitalization, and operational approaches to respond to such differences, will continue to diverge,” according to a company statement. “This divergence has been emphasized by the significant change in the U.S. operating environment due to U.S. healthcare and regulatory reform with its related federal and state spending cuts.”
A strategic committee convened last year has been advising the Extendicare board on this matter and will recommend what form the separation should take. The board expects to complete the process later this year.
The announcement came as the company released first quarter 2013 results. Revenue declined about $21.3 million dollars year-over-year. Lukenda described the results as “disappointing.”