Kindred Healthcare's earnings drop
Kindred Healthcare reported a loss of $30.4 million in the fourth quarter ended Dec. 31, 2003, down from a $3 million profit in the year ago quarter. Kindred notched fourth quarter revenues of $831 million, up 5% from $792 million.
The Louisville, KY-based company attributed its loss to professional liability costs and a charge of $42.6 million from operating losses at 10 unprofitable nursing facilities it acquired from Ventas in December. Kindred said it plans to sell the facilities by June 30.
Kindred's income in 2003 dropped 42%, to $49.5 million from $85.5 million in 2002. The company's revenues, however, increased 5%, to $3.3 billion from the year earlier. The company said it was hit negatively by expiring Medicare reimbursements.
Kindred also announced it reorganized its rehabilitation services as of the first of the year, and is now calling it "Peoplefirst Rehabilitation." CEO Paul Diaz said he expects to expand the company's hospital and pharmacy businesses in 2004.