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.
“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