by Gwen Moritz
Posted 2/26/2007 12:00 am
Updated 11 months ago
• Click here to see page 1 of the state's most profitable nursing homes.
• Click here to see page 2 of the state's most profitable nursing homes.
• Click here to see page 3 of the state's most profitable nursing homes.
• Click here to download the list in spreadsheet format.
Profitability figures for nursing homes in Arkansas continue on the incline, fiscal 2006 cost reports filed with the Arkansas Department of Health & Human services indicate.
Of 184 nursing homes that filed full-year cost reports, 73 percent — 134 facilities — were in the black for the year that ended June 30. That compares with 66 percent in 2005 and 59 percent in 2004, and it is a world away from the industry’s dismal results in 2000, when only 39 percent were in the black.
However, the list of 2006 cost reports is less complete than usual thanks in part to the sale last year of the former Beverly Enterprises Inc. of Fort Smith. Facilities that change ownership during a fiscal year are typically omitted from DHHS’ cost reports, and that is the case with 16 facilities now operating under either the Beverly brand name or the company’s new brand, Golden Living Centers. (See related story.)
A total of 222 nursing homes are currently receiving Medicaid reimbursements, but only 184 filed full-year reports. Since 2001, when a bed tax was imposed on private-pay patients to use as matching funds for federal dollars, the average Medicaid reimbursement rate has increased from $69 a day to $134.22. That figure includes a weighting factor to make up for any underpayments made from July-December 2006 and is an increase of 5 percent over last year’s average.
The profitable nursing homes reported total net income of $42.3 million in fiscal 2006, up 12.5 percent from 2005. The unprofitable homes lost a total of $11.1 million.
The most profitable nursing home in the state last year was St. Elizabeth’s Place in Jonesboro, which reported adjusted net income of $1.2 million on revenue of just under $6.6 million. St. Elizabeth’s expanded from 70 beds to 110 during the 2006 fiscal year but still had an average occupancy rate of almost 89 percent.
St. Elizabeth’s was one of five nursing homes to report net income of more than $1 million in the 2006 fiscal year, a landmark reached by only two the previous year. The others with seven-figure profits were Broadway Healthcare Center in West Memphis, Quapaw Care and Rehab Center in Hot Springs, Bradford House at Bentonville and Lawrence Hall Nursing Center in Walnut Ridge. In terms of return on revenue, Bradford House was the most profitable with ROR of 20 percent. The 89-bed nursing home also had by far the highest net income per bed, $12,563.
The biggest money-loser last year was Fayetteville Health & Rehab Center, which lost almost $850,000 on revenue of $5.5 million. Total revenue for the 184 nursing homes was $767.5 million.