Manor Care profits hit by new taxes, lower census
Nursing home leader Manor Care announced that its income dropped 15% during the first half of 2005 due to a triple-whammy: higher provider taxes, lower occupancy and lower gains on divestitures.
Provider tax increases erased nearly all gains achieved from improved Medicaid rates, company officials said Friday. In addition, occupancy levels dropped a percentage point, to 88%, during the quarter ending June 30.
For the most recent six-month period, Manor Care earnings fell 14 cents per share from levels for the same time frame a year earlier. Total earnings were $69.2 million, compared to $81.2 million a year ago. At the same time, revenue rose from $1.6 billion to $1.7 billion.
The Toledo, OH-based long-term care giant owns or manages 278 nursing homes and 65 assisted-living facilities.