Local Assisted Living Chain Making Move to Private-Pay
Posted by PKSD Law Firm on Mar 09, 2010 in Nursing Homes and Elder Rights
Assisted Living Concepts Inc. is reporting a 43% raise in earnings last quarter as the operator of assisted living residences moved closer to completing its transition to private-pay residents.
Based in Menomonee Falls, the chain operates 211 assisted living residences in 20 states. Their net income rose to $4.33 million, or 37 cents a share, from $3.03 million, or 25 cents a year ago. Assisted Living Concepts reported $57.7 million in earnings.
Assisted Living will increase their rates to offset the reduction in the number of units occupied by Medicaid residents.
We are now substantially out of Medicaid programs, achieving over 96% of our revenues from private pay sources, Laurie Bebo, president and chief executive, said in a statement. Four years ago that number was 70%. A higher percentage of revenues from private pay sources helps our margins because private pay rates in 2009 exceeded Medicaid reimbursement rates by approximately $38 per day.