Kindred Healthcare, operator of two Las Vegas hospitals and a few associated operations, Wednesday reported a loss of $43 million, or $2.49 per share, for the second quarter.
Losses from discontinued operations and the sale of 15 nursing centers in Florida and one in Texas contributed to the results. A year ago, Kindred had net income of $23.6 million, or $1.21 per share.
The Louisville, Ky.-based company reported a loss from discontinued operations of $17.1 million, or 98 cents per share, greater than the loss from discontinued operations of $3.7 million, or 19 cents per share, a year ago.
Kindred reported a loss of $36 million, or $2.07 per share, on the sale of the 16 nursing homes in the troubled markets in the 2003 quarter.
The company reported a profit from continuing operations of $9.7 million, or 56 cents per share, which was a significant drop from $27.4 million, or $1.40 per share, reported during the second quarter of 2002.
Kindred operates Las Vegas hospitals at 2250 E. Flamingo Road and 5110 W. Sahara Ave. It also operates Las Vegas Healthcare & Rehabilitation Center, 2832 S. Maryland Parkway, Torrey Pines Care Center, 1701 S. Torrey Pines Drive and Kindred Pharmacy Las Vegas, 4755 Nevso Drive.
The hospitals specialize in long-term care and have an average patient stay of 28 days in Las Vegas.
Linn Billingsley, chief executive officer of the Las Vegas hosptials, said business is steady in Las Vegas.
"Locally, we're doing very well," she said. "We're running at a 95 percent occupancy rate.
"Financially, we're doing well," she said. "We're making our plan."
Long-term hospital care revenue rose 7 percent to $346 million and operating income increased 19 percent to $74 million. Pharmacy business revenue rose 12 percent to $67 million. Operating income for the pharmacies was more than $6 million.
Nursing care business improved slightly and adjustments to Medicare reimbursements will offset some of the losses, company officials said.
Revenue increased 4 percent in the second quarter to $839 million compared with $807 million in second quarter 2002.
Company officials say all segments of the company had an increase in revenue, but the decline in profit from continuing operations was due to the expiration of some Medicare reimbursements on Oct. 1, increased professional liability costs in the nursing center business and the nursing centers sale.
"We're encouraged by the second quarter results," Kindred CEO Edward Kuntz said. "Getting out of Florida and Texas was a big step in improving the operations. It also gives us a chance to focus on the pluses in the rest of the company."
Kindred's shares rose $1.94 to $29.59 on the Nasdaq Stock Market this morning.
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