Kindred Healthcare cited high liability costs and Medicare reimbursement reductions in reporting an 84% drop in fourth-quarter net income to $3.1 million, or 18 cents per share, from $19 million, or 98 cents per share, in the year-ago fourth quarter, when Kindred was operating under bankruptcy protection. Revenue grew 7.4% to $848.3 million. For the full year, the Louisville, Ky.-based company earned net income of $34.8 million, or $1.93 per share, on revenue of $3.4 billion. Because of the company's financial reorganization under Chapter 11, 2001 results are not comparable. Kindred said it would not issue earnings guidance for 2003 because of "uncertainties associated with professional liability costs and government reimbursement." In addition, Kindred said CEO Edward Kuntz will resign his position effective Jan. 1, 2004, to become executive chairman. The company also continues to pursue the divestiture of its 18 nursing homes in Florida. -- by Julie Piotrowski
Kindred blames liability, Medicare for lower profit
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