Diversicare Healthcare Services announced it completed its exit from the state of Kentucky, leaving behind 13 facilities and 1,227 skilled nursing beds. The Tennessee-based skilled nursing chain announced the completion during a third-quarter earnings call Thursday.
Executives also noted the company’s net loss from continuing operations was $1.9 million, or $0.30 per share for the quarter. The company saw a net loss from continuing operations of $7.5 million ($1.17 per share) during 2018’s third quarter.
The company also reported an adjusted EBITDAR of $14.4 million for the quarter. Additionally, patient revenues were $118.9 million — a $400,000 decrease from a year earlier. Operating expenses were $95.6 million — a $200,000 decrease from 2018.
“Over the past year we have undertaken major steps to improve our clinical offerings and risk profile, renew our largest operating lease, improve our operating cost structure, and work through our open government matter,” Diversicare President and CEO Jay McKnight said.
LTC Properties looks ahead
LTC Properties CEO and President Wendy Simpson said the company is looking forward to seeing how its skilled nursing partners adjusts to the Patient Driven Payment Model.
The California-based real estate investment trust anticipates the new payment model will “provide some upside for our SNF partners,” Simpson said during a third-quarter earnings call Friday.
“It’s a little premature to be able to assess where that’s at, but overall operators feel very optimistic (about PDPM),” added Clint Malin, executive vice president and chief investment officer.
Executives also noted the REIT is looking to overcome financial challenges being faced by operators in its portfolio, which includes transitioning LTC-owned operated by Senior Care Centers as it works through bankruptcy.
The REIT also recorded a net income available to common stockholders of $27.1 million, or $0.68 per diluted share, for the third quarter. That number was $34.8 million, or $0.88 per diluted share, when compared to 2018. Executives noted the decrease in net income was mostly due to higher gain on sale in the prior year.
The REIT’s fund level from operations was $30.8 million for the quarter, compared to last year’s $29.9 million. It’s FFO per diluted common share was $0.77. Last year, it was $075.
The increase in revenues was credited to acquisitions, mortgage and mezzanine loan originations, funding of additional loan proceeds, capital improvements and completed developments.
The company also purchased a 90-bed skilled nursing center in Missouri for $19.5 million, and sold a 148-bed skilled nursing center in Georgia for $7.9 million.