Louisville, Ky.-based Kindred Healthcare decreased its net loss in the third quarter of fiscal year 2017, as it sold or closed 21 long-term acute care hospitals since the same period a year prior.
The post-acute and long-term care provider reported a net loss of $95.8 million in the three months ended Sept. 30. This is compared to a net loss of $685.6 million in the same period a year prior. Kindred's stock rose as much as 40 percent after its earnings release Tuesday, Louisville Business First reports.
Benjamin Breier, president and CEO of Kindred, said the company's hospital division "continued to execute on its portfolio optimization initiative by closing five LTAC hospitals since the end of last quarter, including one that will be converted to an inpatient rehabilitation facility joint venture. We expect to further optimize our LTAC portfolio with additional closures, consolidations and IRF conversions over the coming quarters."
In July, Kindred signed a definitive agreement to sell its skilled nursing business to BM Eagle Holdings, a joint venture company led by BlueMountain Capital Management affiliates, for $700 million in cash. The sale included 68 of Kindred's 89 skilled nursing facilities and four of its seven assisted living facilities.
"We expect that nearly all of the remaining facilities and operations will be divested by the end of 2017," Mr. Breier said.
Kindred saw revenue decline 5.5 percent in the third quarter of this year to $1.5 billion, down from $1.6 billion in the same period a year prior. The company attributed the decrease, in part, to the long-term acute care hospital divestures and closures. Kindred also posted $16 million in expenses related to hurricanes Harvey and Irma.