Almost Family Inc., a home nursing care provider, said Wednesday its net income fell 39 percent in the third quarter, hurt by reduced Medicare payments, although revenue rose due to an acquisition.
Adjusted results beat expectations, however, and shares rose 37 cents, or 2.3 percent, to $16.32 in afternoon trading. Shares are down 58 percent since the beginning of the year.
Net income fell to $4.8 million, or 52 cents per share, from $7.9 million, or 85 cents per share, last year. Excluding one-time items related to a regulatory investigation and an acquisition, income was 54 cents per share. Analysts expected income of 53 cents per share, according to FactSet.
Last year Almost Family said the Securities and Exchange Commission was investigating whether it deliberately increased their number of patient visits to trigger higher Medicare reimbursements. The company said it continues to cooperate with the inquiry. A Senate probe earlier this year found the company did not push therapists to increase their visits to patients.
Revenue rose 2 percent to $86.2 million, from $84.4 million last year. Analysts expected $86.4 million. The increase was due to the company's acquisition of Cambridge Home Health Care Holdings.
A cut in the 2011 Medicare reimbursement rate hurt revenue by $3.8 million.
Almost Family said a change in Medicare reimbursement rates will likely reduce its Medicare reimbursement for 2012 between 5 and 5.5 percent. Since the rates impact treatment ending on or after Jan. 1, fourth-quarter results will be partly affected by the change.