Retroactive Medicaid rate increase boosts Extendicare's third-quarter
Extendicare Inc.'s Health Services unit will record a third-quarter revenue boost of $4.5 million because of a retroactive Medicaid rate increase.
The governor of Pennsylvania approved the rate increase retroactive to July 1, 2003, for the 12-month period that ended June 30. The company says rates for the July 1, 2004, to June 30, 2005, fiscal year are unconfirmed by the state. Payments will remain at the newly revised level until further notice.
Extendicare also is selling its only nursing home in British Columbia and closed the sale on its Arkansas operations, due to difficult market conditions and insignificant earnings performance.
The sale price of the 75-bed nursing facility in British Columbia was $5.5 million in Canadian dollars, $3.2 million of which will be used to pay off debt related to the facility. The gain on the sale is expected to be $500,000.
The company sold the Arkansas operations, a 96-bed nursing facility and three assisted living facilities, for $6.1 million in U.S. dollars.