While most people are feeling the effects of the recession, many nursing home companies are continuing to profit and flourish. In looking over the recent financials of some of the country’s largest nursing home companies, it looks as though most of those companies are holding up fairly well while most Americans are barely getting by. As quarterly earnings are reported by many large nursing home chains—caring for the elderly apparently pays well—sometimes very well.
Five Star Quality Care
Five Star Quality Care, Inc.’s first quarter 2009 results revealed a revenue increase of 14% from $258.9 million to 295.2 million from a year earlier. New income for the company was $25.4 million for the quarter compared with $1.6 million in the first quarter of 2008.
Five Star Quality Care owns and operates 210 senior living communities in 30 states. The companies facilities include: independent living centers and skilled nursing facilities (nursing homes). Five Star also operates five pharmacies and two rehabilitation hospitals.
Kindred Health Care
Kindred Healthcare’s profits rose 55% in the first quarter to $22.8 million or 58 cents per share. Despite the fact that Kindred provided care to fewer patients, it was able to exceed Wall Street expectations by managing labor costs.
According to CFO, Richard Lechleiter, the recession may have actually helped the company’s bottom line. The shortage of jobs in other industries may have actually encouraged employees to remain at Kindred longer. Turnover among the company’s hospital employees fell to 21% from a 25% turnover a year earlier.
Kindred Healthcare, Inc. is a healthcare services company that operates: hospitals, nursing centers and a contract rehabilitation services business across the United States. The hospital division operates 82 long-term acute (LTAC) hospitals (6,482 licensed beds) in 24 states. The health services division operates 228 nursing centers (28,525 licensed beds) in 27 states. Kindred also operates a contract rehabilitation services business which provides rehabilitative services primarily in long-term care settings.
Berman & Riedel, LLP is a San Diego based law firm that represents victims of elder abuse and neglect throughout the state of California. The firm is often regarded by many in the state as one of California’s top advocates for victims of nursing home abuse and neglect and has successfully secured significant settlements and awards against some of the state’s worst perpetrators of elder abuse and neglect. This success is attributable to the firm’s nursing home attorneys who each have vast experience and knowledge in this complicated area of federal and state law.
If you are concerned about the care an elderly loved one is receiving in a nursing home or other type of elder care facility, call Berman & Riedel, LLP today at (858) 350-8855. Our staff will happily provide you and your family with an initial free consultation to discuss with you what rights you may have under California and federal law. To learn more about the firm’s elder abuse attorneys, past settlements and awards, and types of cases handled by the firm, visit Berman & Riedel, LLP’s main website at www.preventelderabuse.com.
