Kindred: Quarterly net profit down

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Nursing home giant Kindred Healthcare Inc. is reporting net quarterly profit sharply lower from a year ago.

The Louisville, KY, operator of nursing homes, rehabilitation services and hospitals posted second-quarter net income of $29.7 million, or 69 cents per share. That compares with a profit of $66 million, or $1.43 per share, during the same period a year ago. Those numbers were boosted by a large gain related to settlement of a Medicare cost issue, officials explained.

Consolidated revenue for the most recent quarter was up 6% to $1.1 billion; nursing home revenue rose 14% for the quarter, the company reported in a statement released Monday.

Earlier this year, the company completed the acquisition of the assets of Health Care REIT and Commonwealth Communities Holdings LLC, which included 11 nursing homes, four assisted living facilities and six hospitals. More recently Kindred has been engaged in an extremely high stakes battle over proposed rent increases with its main landlord Ventas Inc.