67 WALL STREET, New York - July 25, 2013 - The Wall Street Transcript has just published its Medical Real Estate Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: REIT Access to Capital - Affordable Care Act and Reimbursements - Hospitals, Senior Housing, Skilled Nursing and Acute Care - Medicare and Medicaid Reimbursements - Consolidation Activity - Health Care REITs
Companies include: Diversicare Healthcare Services Inc. (DVCR) and many more.
In the following excerpt from the Medical Real Estate Report, the President, CEO and Director of Diversicare Healthcare Services Inc. (DVCR) discusses company strategy and the outlook for this vital industry:
TWST: How much of your revenue is from private-pay versus reimbursement sources, and how do you position the company to manage what seems to be an inherently uncertain reimbursement environment from year to year?
Mr. Gill: If you look at the three months ended March 31 for 2012 and 2013, respectively, our private-pay percentage of revenue is just a little over 12%, and that more or less remains flat. Our Medicare percent of revenue has gone from 33.1% to 29.9%. And of course, if you look at our split of what we would consider Medicare volume between traditional Medicare and managed care, our managed care volume has grown significantly at a slightly lower rate per day than traditional Medicare, and so even though our skilled mix is pretty much holding its own year over year, you'll see a slight softening of rate due to that consideration.
TWST: From your most recent quarterly earnings, are there any particular key points that you would note?
Mr. Gill: Total skilled mix grew from 15.3% in Q4 of 2012 to 16.6% in Q1 of 2013. Revenue grew from $75.8 million to $79.3 million year over year, which is a 4.7% increase. Both operating expense and G&A expense improved as a percentage of revenue year over year. And as I've already mentioned, we renegotiated our credit facility, and completed the...
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