Sun Healthcare Group, Inc. (NASDAQ: SUNH) announced its operating results for the third quarter ended Sept. 30, 2009 that showed an increase in revenues of 3% over the same period in 2008. The company cited that its focus on its acuity strategy contributed to the growth and was assisted with its ability to increase its rates. Sun Healthcare’s temporary medical staffing business line showed lower revenues compared to 2008 and cited the slow economy as the reason.
Richard K. Matros, Sun’s chairman and chief executive officer, stated, "It appears that we have weathered the worst of the economic downturn relative to overall occupancy and mix. On a sequential basis, our occupancy improved 20 basis points. Although occupancy was down 80 basis points compared to third quarter of 2008, it is an improvement over the decrease of 130 basis points that we experienced in the second quarter. Our skilled mix was down 20 basis points compared to third quarter of 2008, as compared to the second quarter’s year-over-year decline of 100 basis points. As a percent of revenue, skilled mix increased 90 basis points over the third quarter of 2008. September’s occupancy edged up to 88.2 percent and has held in October. The Company’s operating cash flows for the quarter were strong and our cost controls continue to be solid."
