Beverly Enterprises, Fort Smith, Ark., said it would divest "a significant portion" of its nursing homes in the next two years, accounting for more than 50% of the company's anticipated patient care liability costs in 2002. The company has sold 73 nursing homes since the end of 2000 and now operates 461. Proceeds of the sale reduced overall debt by more than $110 million and financed capital investments at remaining facilities, Beverly Chairman and CEO William Floyd said in a written statement. "We plan to use the net proceeds from any divestitures of nursing homes or other nonstrategic assets to further reduce our debt level," Floyd said. Beverly said third-quarter net income rose 25% to $15.6 million, or 15 cents per share, as Medicare payment and occupancy increases outpaced rising patient care costs. Revenue fell about 9% to $630.5 million, reflecting a 14% reduction in bed capacity from the divestiture of nursing homes in Florida and other underperforming assets, the company said. In addition to nursing homes, Beverly operates 29 assisted-living centers, 55 home care and hospice centers, and 154 outpatient therapy clinics. -- by Julie Piotrowski
Beverly to sell 'significant' share of nursing homes
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