Nursing Homes Still Profitable during the Recession
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To many people our recent recession is old news. By now, everyone is used to the downturn in the economy, the rising unemployment rate, foreclosures, and the stock market falling. Despite the weekly news of corporations declaring bankruptcy, some businesses are actually still showing nice profits. For instance, large Nursing home ownership companies are still profitable.
The Ensign Group, Inc. which is in the business of skilled nursing, rehabilitation care services, hospice care and assisted living companies recently reported record results for the third quarter of the fiscal year 2009. The company recorded total revenue of $132.9 million, which is up 14.3% from the $116.3 million recorded last year at this time.
Kindred Healthcare, the Louisville long-term care company recorded revenue growth in each of its three divisions – hospitals, nursing homes, and rehabilitation. The company recorded revenue for the July-to-September period of $1.06 billion, which is a 6% raise. Shares went down to about 4% in after-hours trading.
Five Star Quality Care, Inc. announced its total revenues for the third quarter of 2009 to be $297.2 million, a 5.9% increase from the same period last year.
It is great that these large companies are still profitable. However, I believe that they need to take these profits and put them back into the long-term care facilities. The extra funds could help improve living and safety conditions for residents by better staffing the facilities and by doing a better job of training the employees.