LOUISVILLE, Ky. (Sept. 20, 2017) — Kindred Healthcare today announced that the company expects a one-time pretax earnings impact from hurricanes Irma and Harvey of approximately $20 million in aggregate for the third quarter of 2017.
As discussed below, the company’s impacted operations have substantially returned to normal and the company does not expect any significant impact on its financial results in the fourth quarter of 2017 or beyond.
Benjamin A. Breier, president and CEO of Kindred Healthcare, said, “In the areas affected by the storms, Kindred has approximately 16,000 employees and operates 18 long-term acute care hospitals, approximately 100 Kindred at Home sites of service, two inpatient rehabilitation hospitals, one sub-acute unit and provides external rehabilitation therapy contract services for roughly 100 sites. In total, these businesses represent approximately 16% of our aggregated consolidated revenues.”
Mr. Breier continued, “All of our Houston hospitals remained operational during and after Harvey, and in Florida, as a safety precaution, two of Kindred’s 10 Florida hospitals temporarily evacuated patients during Irma, while the eight other hospitals remained operational. We did not sustain any significant physical damage to any of our facilities. The majority of our Kindred at Home sites in Houston and Florida closed temporarily due to both weather and power outages, and have re-opened. Our operations in these geographies have now largely returned to normal, and we do not expect any meaningful lingering effects going forward. In addition, we have begun the process of pursuing claims under our business interruption insurance coverage.”
Mr. Breier concluded, “Our employees demonstrated extraordinary commitment to ensuring the safety of our patients and minimizing disruptions to care, even as they dealt with the impact of the storm on their personal lives. I have never been so proud of our team at Kindred, both in the storm areas and others around the country that have supported the crisis and recovery efforts. They have done a remarkable job and I want to thank them for their commitment to our patients and their families.”
Kindred will provide more detail on these matters when it reports its third quarter earnings in early November.