Kelly Gill, CEO, commented, "For the first quarter, our skilled mix as a percent of total census increased to 16.6% from 16.4% last year.
Our Medicare rates decreased compared to the first quarter of 2011, primarily due to CMS rate cuts that were effective October 1, 2011.
However, on a sequential basis, our Medicare rates increased by $2.26 per patient day compared to the fourth quarter of 2011."
noted, "Although we continued to make progress against our long-term strategic plan in the first quarter, the combination of reductions in Medicare reimbursement effected by CMS, a $0.6 million year-over-year increase in professional liability expense, and the cost increases in facility staffing, marketing, and support areas resulting from our strategic initiatives resulted in a net loss from continuing operations.
We remain focused on the implementation of our growth strategy, which centers on enhancing our high acuity patient care services, modernizing our facilities, and prudently expanding our facility portfolio.
We are seeing benefits from these efforts in terms of improved skilled census, our capabilities to market to and care for higher acuity patients and, as a result of the implementation of electronic medical records, the ability to better document the high quality services we have always provided."
continued, "We also believe that our new platform is more scalable and will allow us to integrate new operations with greater efficiency.
I'm very pleased we were recently able to announce we have acquired the rights to operate a facility in Clinton, Kentucky.
This facility will initially be leased and we will have an option to purchase the facility.
We also recently opened our new facility in West Virginia, which, with the Kentucky facility, will increase our capacity by 178 beds."
, commenting further on the company's growth strategy, noted "We believe that we have the ability to increase the number of licensed beds with only modest incremental growth in general and administrative expense.
CONTACT: Kelly J. Gill
Chief Executive Officer