Brentwood, TN-based Diversicare felt the impact of COVID-19 “in a very real way” in the second quarter, recording more than 2,500 positive cases in patients, residents and staff, affecting 56 of the firm’s 62 skilled nursing facilities.
Thanks to federal and state stimulus programs, however, the firm found a means to offset the lost revenue and excess labor and personal protective equipment expenses resulting from the pandemic, said Jay McKnight, Diversicare’s president and CEO, in announcing the company’s second quarter earnings Thursday.
Diversicare received $31.2 million in Medicare stimulus funds from the Coronavirus Aid, Relief, and Economic Security Act and the Public Health and Social Services Emergency Fund in the second quarter.
Diversicare also reported that its net income from continuing operations was $1.8 million for the second quarter of 2020, compared to a net loss of $22.6 million in the same quarter of 2019.
“Despite the impact of the COVID-19 crisis, our financial results for the quarter are largely where we thought they would be earlier in the year, but not by the means we expected,” McKnight said “Our cost-saving initiatives, participation in quality incentive payment programs and continued focus on strengthening our current portfolio have created tailwinds that I think benefited us greatly in the quarter and should benefit us in the future.”
Federal stimulus also boosted NHC’s second quarter earnings
Murfreesboro, TN-based National HealthCare Corp. reported net operating revenue and grant income totaling $261 million in the second quarter of 2020, compared with $247 million in the same time period last year.
Excluding the grant income, net operating revenues would have decreased 4.1% compared with the second quarter of 2019, the firm noted in its second quarter earnings release Thursday.
The firm also reported generally accepted accounting principles diluted earnings per share for the quarter of $1.84 per share, with an adjusted diluted earnings per share of 92 cents.
This article appeared in the McKnight’s Business Daily, a joint effort of McKnight’s Senior Living and McKnight’s Long-Term Care News.
See McKnight’s coverage of other earnings releases on Thursday: Capital Senior Living, Diversified Healthcare Trust, The Ensign Group, Five Star Senior Living, Omega Healthcare Investors, Sabra Health Care REIT and Welltower.