National HealthCare Corporation Reports Q1 2026 Financial Results with Increased Net Income and Revenues

National HealthCare Corporation (NHC) reported its financial results for the first quarter of 2026, revealing a net income of $35.9 million, or $2.31 per share, compared to $32.2 million, or $2.09 per share, in the same period last year. The company’s total net operating revenues increased by 2.2% to $381.8 million, driven primarily by a 2.3% rise in net patient revenues, which reached $369.8 million. This growth was partially offset by a decrease in other revenues, which fell to $12 million from $12.1 million in the prior year.

In terms of operational performance, NHC's total costs and expenses rose to $349.6 million, up from $342.9 million a year earlier, reflecting a 3.0% increase in salaries, wages, and benefits. The company reported a slight improvement in its operating margin, with income from operations increasing to $32.3 million from $30.8 million. The effective income tax rate for the quarter was 19.4%, down from 26.1% in the previous year, contributing to the overall increase in net income.

NHC continues to expand its footprint in the senior healthcare sector, currently operating or managing 80 skilled nursing facilities, 26 assisted living facilities, and various homecare and hospice agencies across nine states. The company has also entered into a Purchase and Sale Agreement to acquire the real estate of 32 skilled nursing facilities and three independent living facilities for $560 million, expected to close in the third quarter of 2026. This acquisition is anticipated to enhance NHC's asset portfolio in the southeastern United States.

The company reported an average occupancy rate of 90.0% in its skilled nursing facilities, an increase from 89.3% in the same quarter last year. NHC is actively addressing workforce challenges and has implemented initiatives to improve patient care quality, which is reflected in its Five-Star Quality Rating System performance, where 65% of its skilled nursing facilities received four or five stars compared to 39% in the industry.

Looking ahead, NHC remains focused on maintaining its operational efficiency and enhancing patient care while navigating the complexities of government reimbursement programs. The company anticipates continued growth in net patient revenues, supported by recent increases in Medicare and Medicaid per diem rates. However, it acknowledges potential challenges from regulatory changes and market conditions that could impact future performance.