The third financial quarter for the nation’s oldest publicly traded senior health care company was marked by a modest decrease in net operating revenues — largely due to the lack of federal stimulus support and the offloading of seven SNFs.
National HealthCare Corporation (NYSE American: NHC) ended the third financial quarter with $270,843,000 in net operating revenues and government stimulus income.
This number was down slightly for the Murfreesboro, Tenn.-based senior health care company — a 2.1% decrease — compared to $276,737,000 during the same quarter in 2021, according to a news release detailing 3Q 2022 earnings.
The decrease was largely attributed to the lack of government stimulus income in 3Q, as well as the company’s decision to exit seven skilled nursing facilities in Massachusetts and New Hampshire, the company noted.
Putting the government stimulus income aside, same-facility net operating revenues increased 3.8% in 3Q compared to the same timeframe in 2021.
The senior health care company operates 68 skilled nursing facilities totaling 8,726 beds for themselves and third parties. NHC’s affiliates also operate 23 assisted living communities, five independent living communities, three behavioral health hospitals, 33 home care agencies and 29 hospice agencies.
Additionally, NHC offers Alzheimer’s and memory care units, pharmacy services, a rehabilitation services company and provides management and accounting services to third party post-acute operators.
NHC dove into palliative and hospice care last year, acquiring outstanding stakes in Caris Healthcare for $38.95 million. The company also opened two behavioral health hospitals in Missouri and one in Tennessee, the most recent being a 16-bed geriatric hospital in July.
The company’s reported GAAP net loss was $2,429,000 compared to a net loss of $3,348,000 for the same period in 2021, the company reported. Adjusted net income for the quarter, excluding the unrealized losses in the marketable equity securities portfolio and other non-GAAP adjustments, was $7,783,000 compared to $14,884,000 in Q3 2021.
National Health Investors Inc. (NYSE: NHI) CIO Kevin Pascoe pointed to NHC’s “business resilience” during the company’s 2Q earnings call. NHC and The Ensign Group account for the bulk of NHI’s net operating income tied to nursing home operators.
NHC’s skilled nursing patient days were down as a whole compared to the same timeframe in 2021, with the exception of private pay and other — the operator saw 169,068 in Q3 2022 and 158,011 in Q3 2021.
Of the remaining skilled nursing patient day categories, NHC reported 81,940 Medicare days, 52,956 managed care days and 302,500 Medicaid days.
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