Beverly Enterprises, Fort Smith, Ark., warned investors it expects to report a loss of about $14 million, or 13 cents per share, in the second quarter because of rising patient-care liability costs. Beverly also announced it would add $43.3 million to increase its reserves for patient-care liability costs related to prior years. That includes a special, noncash charge of $22.2 million for liability issues related to the company's former Florida nursing home operations. Earlier this year Beverly sold four assisted-living centers and 49 skilled-nursing facilities in the state to FC Properties for $165 million, which was about $70 million less than the properties' listed value, officials said. After company officials announced the projected second-quarter loss, Beverly's stock dropped by more than 50% to a 52-week low of $3.50 per share in morning trading on the New York Stock Exchange. -- by Julie Piotrowski
Beverly warns of loss related to liability costs
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