Kindred third-quarter profits fall by 82%

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Kindred Healthcare Inc.'s third quarter earnings plummeted. The company attributed it to a slowdown in its hospital business.

Profits for the quarter fell about 82%, to about $3 million or $0.07 per diluted share. That compares to $16 million in earnings or $0.36 per share for the same period last year. Revenues, meanwhile, rose by 11%, to about $1 billion.

"As we had already indicated to investors, the third quarter was a difficult operating period for Kindred, primarily in our hospital business," said Paul J. Diaz, president and chief executive officer of Kindred. "The combined effect of seasonally weak census and the full impact of the Medicare rate cuts had a significant negative impact on our hospital operating income."