Louisville, Ky.-based Kindred Healthcare reported a $135.4 million loss in the fourth quarter of fiscal year 2017, which the health system's executives attributed to the lingering effects of hospital closures and a goodwill impairment charge.
Here are six things to know.
1. Kindred's net loss in the fourth quarter of 2017 swelled to $135.4 million from $1.9 million the same period last year.
2. Consolidated revenues in the fourth quarter of 2017 were just under $1.5 billion, which is a 2.3 percent decrease year-over-year, which was attributed to the closure of seven long-term acute care facilities and more than 100 rehabilitation sites.
3. The long-term care and home healthcare provider's operating expenses increased in the fourth quarter of 2017 to $1.6 billion, which is an 18 percent increase from the fourth quarter a year prior.
4. Kindred executives also attributed the net loss in the fourth quarter to a $236.3 million noncash goodwill impairment charge and a $41.4 million in payments for restructuring.
5. Full-year revenue decreased 4.1 percent to $6.03 billion in 2017, compared to $6.3 billion in fiscal year 2016.
6. Kindred saw a full-year net loss of $643 million in 2017, compared to a $611 million loss in fiscal year 2016.
In December, Kindred inked a deal to be acquired by health insurance giant Humana and two other private equity companies for $4.1 billion. Under the deal, Kindred will be split into two entities: a home health, hospice business and a long-term care business.
"[We] look forward to completing the merger to deliver immediate and certain value to Kindred stockholders at a substantial premium and eliminate the significant risks associated with continuing to operate as a standalone public company or pursuing other strategic alternatives," said Benjamin Breier, president and CEO of Kindred.