National HealthCare Corporation Reports 14.5% Revenue Growth and 52.6% Increase in Net Income for Fiscal Year 2024

National HealthCare Corporation (NHC) reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with net operating revenues and grant income reaching $1.31 billion, a 14.5% increase from $1.14 billion in 2023. The company's net patient revenues also rose by 15.1% to $1.25 billion, driven primarily by the acquisition of the White Oak portfolio, which contributed approximately $96 million in revenues since its acquisition on August 1, 2024. NHC's net income attributable to common stockholders was $101.9 million, up 52.6% from $66.8 million in the previous year.

The company experienced notable operational improvements, with an overall occupancy rate in skilled nursing facilities increasing to 88.6% in 2024 from 87.9% in 2023. The average skilled nursing facility per diem increased by 6.8%, with Medicare and Medicaid rates rising by 5.0% and 8.6%, respectively. NHC's strategic focus on enhancing patient care quality is reflected in its Five-Star Quality Rating System performance, where 57% of its skilled nursing facilities received four or five stars, compared to 35% in the industry.

In terms of strategic developments, NHC expanded its operations through the acquisition of the White Oak portfolio, which includes 15 skilled nursing facilities, two assisted living facilities, and four independent living facilities across South Carolina and North Carolina. This acquisition not only increased NHC's footprint but also enhanced its service offerings. The company also reported a decrease in agency nurse staffing expenses by approximately 66.2%, indicating improved workforce management amidst ongoing labor shortages in the healthcare sector.

Looking ahead, NHC anticipates continued growth driven by its recent acquisitions and operational efficiencies. The company has positioned itself to benefit from expected increases in Medicare and Medicaid reimbursement rates, as well as ongoing efforts to enhance patient care and operational performance. However, NHC acknowledges potential risks, including regulatory changes and labor market challenges, which could impact future performance. The company remains committed to monitoring these factors closely as it navigates the evolving healthcare landscape.