Join, Follow & Connect
Join Modern Healthcare's LinkedIn group Follow Modern Healthcare on Twitter Join Modern Healthcare's Facebook group Follow Modern Healthcare's Pinterest board Modern Healthcare's Flickr page Modern Healthcare's YouTube Channel Get a Modern Healthcare news feed

 
Comment Buy Reprints Print Article Share on LinkedIn Share on Facebook Share on Twitter Email this page to a colleague
Healthcare Business News
 
Paul Diaz, Kindred
Diaz

Kindred's 'relentless focus' on cutting costs helps narrow loss


By Rachel Landen
Posted: February 21, 2014 - 1:30 pm ET
Tags:

Despite weak utilization in its hospital, nursing and home health divisions, Kindred Healthcare narrowed its fourth-quarter loss, thanks to a companywide focus on increasing operating efficiency and cost cutting.

Kindred continues to exit the skilled-nursing facilities market while growing its presence in the home healthcare and rehabilitation space.

Advertisement | View Media Kit

 

“We expect operating improvements in our home health and hospice operations in 2014 as we assimilate numerous acquisitions and execute on a more standardized operating model,” Kindred CEO Paul Diaz said in a release.

Quarterly revenue for the Louisville-based post-acute-care provider remained relatively flat compared to the year-ago period. But with $1.2 billion in revenue this quarter, Kindred Healthcare reported a net loss of $66.3 million versus a net loss of $81.6 million in the same period last year.

Diaz credited “a relentless focus on cost management across the enterprise” for the lower net loss.

Those initiatives have helped offset losses incurred as Kindred offloads skilled-nursing facilities as part of its repositioning.

During the year, Kindred divested or announced plans to exit 15 transitional-care hospitals, one inpatient rehabilitation hospital and 123 nursing centers. Meanwhile, it also has acquired home health and rehab-care companies, including Florida and Louisiana home health provider Senior Home Care, which it purchased in December for $95 million.

“After several quarters of repositioning the portfolio, most of the heavy lifting is now done,” Frank Morgan, analyst at RBC Capital Markets, wrote in a note to clients.

Kindred did add three more facilities—two nursing centers and a transitional-care hospital—to its discontinued operations during the fourth quarter, which are not expected to be gone until the third quarter of 2014.

Follow Rachel Landen on Twitter: @MHrlanden


What do you think?

Share your opinion. Send a letter to the Editor or Post a comment below.

Post a comment

Loading Comments Loading comments...

Search ModernHealthcare.com:


 

Switch to the new Modern Healthcare Daily News app

For the best experience of ModernHealthcare.com on your iPad, switch to the new Modern Healthcare app — it's optimized for your device but there is no need to download.