Kindred Reports $20 Million Loss from Hurricanes
As home health agencies across the Gulf Coast continue their recovery efforts in the aftermath of Hurricanes Harvey and Irma, many are starting to feel the blow from the financial impact the disasters have left behind.
Louisville, Kentucky-based Kindred Healthcare (NYSE:KND) expects a one-time pre-tax earnings impact from Hurricanes Harvey and Irma of approximately $20 million in aggregate for the third quarter of 2017, the company announced Wednesday.
In the areas affected by the storms, Kindred has roughly 16,000 employees and operates approximately 100 Kindred at Home locations—the company’s brand of home health care services—as well as 18 long-term acute care hospitals, two inpatient rehabilitation hospitals, one sub-acute unit, and provides contract external rehabilitation therapy services for roughly 100 sites, according to Benjamin A. Breier, president and CEO.
“In total, these businesses represent approximately 16% of our aggregated consolidated revenues,” said Breier in a press release.
Harvey and Irma devastated the Houston area of Texas and parts of Florida, respectively, with high winds and flooding. The majority of the company’s Kindred at Home sites in Houston and Florida closed temporarily due to both weather and power outages, but have since reopened, explained Breier.
All of the company’s Houston hospitals remained operational during and after Harvey. In Florida, as a safety precaution, two of Kindred’s 10 hospitals in the state temporarily evacuated patients during Irma, while eight other hospitals remained operational.
“Our operations in these geographies have now largely returned to normal, and we do not expect any meaningful lingering effects going forward,” said Breier. “In addition, we have begun the process of pursuing claims under our business interruption insurance coverage.”
The company is expected to provide more detail on the hurricanes’ impact when it reports its third quarter earnings in early November.
By close of market Wednesday, Kindred’s stock took a 8.20% dip, hovering near $5.60 per share.
Written by Carlo Calma