Kennett Square, Pa.-based Genesis HealthCare reported net revenue of $1.4 billion in the fourth quarter of fiscal year 2016, down 3 percent from $1.44 billion in the same period a year ago.
However, the post-acute care provider ended the fourth quarter of FY 2016 with a net surplus of $22.5 million, compared to a net loss of $265.5 million in the fourth quarter of the year prior.
For the full 2016 fiscal year, Genesis HealthCare reported net revenue of $5.73 billion, up 2 percent from the year prior. The company's net loss narrowed from $426.2 million in FY 2015 to $64 million in FY 2016.
Genesis HealthCare attributed the fourth-quarter net revenue decrease to various factors, including less inpatient monies. The company said particularly in November and December, it experienced lower than expected admissions leading to a 40 basis point drop in occupancy in the fourth quarter as compared to the seasonally soft third quarter of 2016.
Genesis HealthCare said lower occupancy across the skilled nursing sector nationwide also negatively impacted the performance of the company's rehabilitation therapy segment. Additionally, Genesis HealthCare said it experienced a $2 per patient day reduction in its overall weighted average inpatient revenue in the fourth quarter of FY 2016, largely driven by reduced funding in Texas.
"Our fourth quarter results underscore the continued challenges for post-acute service providers, including higher patient costs and persistent skilled census pressures," George Hager Jr., CEO of Genesis HealthCare, said in a news release. "While we are disappointed with the fourth quarter, we closed the year having accomplished many of our strategic objectives. Over the past year, we completed the divestiture of non-strategic ancillary businesses and 31 facilities, entered into new leases to improve our overall capital structure and extended debt maturities while making great strides with our innovative value-based initiatives."
Looking forward to 2017, Mr. Hager said the company will stay focused on its transformation plan, which includes continuing to develop value-based initiatives, divesting non-strategic assets and "maintaining strong financial discipline."
More articles on healthcare finance:
65 financial benchmarks for hospital executives
Bankrupt California hospital closes
CHS to sell 25 hospitals as net loss swells to $1.7B in 2016