Sun Healthcare Group Inc. (NASDAQ:SUNH) second quarter revenue was up 3.3%, coming in at $487.7 million as it saw a boost from nursing home operations.
Consolidated consolidated adjusted EBITDAR increased 7.0% to $67.4 million and adjusted EBITDAR margin grew 50 basis points to 13.8%, compared to normalized data for the same period in 2010.
“We have been particularly pleased with the performance of our hospice business line, including the integration of the recently acquired Countryside Hospice operations,” said Chairman and Chief Executive William A. Mathies.
The company is withdrawing its full 2011 guidance after the Centers for Medicare and Medicaid Services said funding for skilled nursing facilities would be cut by 11.1% in FY 2012.
“We are reviewing the impact of the recently published CMS final rule, and I note that our $88.5 million of cash provides us with flexibility to meet the challenges that the CMS action presents,” said Mathies.
Medicare payments made up 35.2% of Sun Healthcare’s top line in the most recent quarter, compared with 43% from Medicaid and 15% from private and other revenue streams, excluding insurance and veterans payments.
View the earnings announcement here.