Kindred Healthcare reported third-quarter net income of $4.9 million, or 12 cents per share--down from $5.5 million, or 14 cents per share, during the same period last year, the company announced this week. Although profits dropped nearly 10 percent, Kindred beat the company forecast of 10 cents, reports Business First.
"The softness in hospital admissions, as well as reimbursement pressures in both our hospitals and nursing centers, negatively impacted otherwise strong operating results," CEO and President Paul Diaz said in a statement.
While third-quarter revenue remained relatively flat at $1.05 billion compared to Q3 2009, nursing and rehabilitation center admissions increased 9 percent. Peoplefirst Rehabilitation saw a 30 percent growth in operating income and signed 54 net additional unaffiliated contracts during the third quarter, according to the earnings report.
What's more, the healthcare services company raised its 2010 earnings guidance for continuing operations and expects consolidated revenues to total $4.3 billion. According to Kindred officials, this move reflects the anticipated impact of reimbursement changes related to revised Medicare patient classification categories and related policies for nursing centers and rehabilitation therapy services.
Kindred officials also noted that they are continuing to pursue acquisitions in home health to provide post-acute care to patients in rehabilitation, skilled-nursing, home-health and hospice facilities, reports Business First.
In addition, Executive VP and CEO Richard Lechleiter told investors during Tuesday's conference call that he will lead a venture to find cost savings with suppliers and vendors called Project Apollo", notes Business First.
"Our continued focus on the quality of our services, our clinical outcomes and our value proposition as a low cost provider will continue to drive our operating results and business success," added Diaz.