Beverly Enterprises, Fort Smith, Ark., recorded double-digit growth in profit and revenue for the first quarter, reflecting a year-old initiative to shed underperforming or nonstrategic facilities. The long-term-care giant earned $23.4 million, or 22 cents per share, on revenue of $527.4 million for the quarter ended March 31. By comparison, it earned $12.2 million, or 12 cents per share, on revenue of $476.2 million in the year-ago quarter. Beverly has sold or closed 89 facilities since 2003 and implemented a new labor management system to reduce its nursing homes' reliance on temporary workers. It now operates 368 skilled-nursing facilities, 20 assisted-living centers and 24 hospices. The company benefited from increased occupancy, a higher percentage of Medicare patients at its skilled-nursing facilities, and growth in its hospice services and contract rehabilitation services. Discontinued operations, primarily nursing homes, contributed $3.8 million to its first-quarter net income. In the 2003 quarter, discontinued operations -- largely the sale of its outpatient clinics -- accounted for $12 million in net income. -- by Julie Piotrowski
Beverly's makeover shows signs of paying off
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