South Carolina Nursing Home Blog : South Carolina Nursing Home Lawyer & Attorney : Poliakoff & Associates Law Firm : Elderly Care, Senior Care

Business Week had an article about National Healthcare Corp. (NHC).   Nursing home and assisted-living center operator National Healthcare Corp. said Tuesday that its fourth-quarter profit rose 80 percent on a boost in patient revenue.

The company earned $5 million, or 37 cents per share, compared with profit of $2.8 million, or 21 cents per share, in the same quarter a year before. Revenue rose 4 percent to $168.5 million from $161.8 million. For the full year, the company earned $31.4 million, or $2.31 per share, up from $27.7 million, or $2.11 per share, in 2008. Revenue rose to $668.2 million from $633.2 million.

National Healthcare and its affiliates operate 76 long-term health care centers, along with 33 home care programs, 7 independent living centers and 15 assisted living communities. Other services include Alzheimer's units, long-term care pharmacies, hospice, a rehabilitation services company, and management and accounting services to third parties.

National Healthcare shares rose 19 cents to $37.64 in morning trading.  See NHC's press release here.

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McKnights had an interesting article about how nursing home corporations are very profitable despite the downturn in the economy.   Many nursing homes are private corporation and not publicly traded; those private companies seem to be doing extemely well.  For-profit nursing home companies' stock values are holding strong, despite an overall shaky economy, a new Dow Jones report notes. The key has been relatively stable Medicare and Medicaid payments, though there is complaints about a potential adjustment to payment levels for fiscal 2010, report authors note.

Kindred Healthcare, Skilled Healthcare Group, and Sun Healthcare Group have seen their share values fall from 52-week highs. But each also has been holding steady in 2009. The recently signed economic stimulus bill will provide about $87 billion in Medicaid funding, which is helping company values.

Nursing homes may have decreased revenue in the future although that is doubtful considering Democratic control of the Congress.   Many observers are very interested in what the Centers for Medicare & Medicaid Services might do to counterbalance providers being overpiad by $770 million more than anticipated in Medicare payments for nine higher-acuity reimbursement groups that were added in 2006.   Most insiders predict Medicare cuts, or at least a proposed freeze in annual automatic increases.
 

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