National HealthCare Corporation Reports 25.7% Revenue Growth to $373.7 Million

National HealthCare Corporation (NHC) reported significant financial growth in its latest quarterly results, with net operating revenues reaching $373.7 million for the three months ended March 31, 2025, a 25.7% increase from $297.2 million in the same period last year. This growth was primarily driven by a 26.5% rise in net patient revenues, which totaled $361.6 million, up from $285.8 million in the prior year. The company attributed this increase to a combination of higher patient census levels and improved per diem rates across various payor sources, including Medicare and Medicaid.

In terms of profitability, NHC's net income attributable to the company rose to $32.2 million, or $2.09 per share, compared to $26.2 million, or $1.71 per share, in the previous year. The increase in net income was bolstered by operational efficiencies and a reduction in agency staffing expenses, which fell significantly from $5.3 million to $1.5 million year-over-year. The company also reported a substantial increase in adjusted net income, which rose by 61.4% to $24.8 million, reflecting the ongoing improvements in operational performance.

Operationally, NHC managed or operated 80 skilled nursing facilities with a total of 10,329 licensed beds, alongside 26 assisted living facilities and various homecare and hospice services. The average occupancy rate for skilled nursing facilities improved to 89.3%, up from 88.5% a year earlier. The company also expanded its footprint through the acquisition of White Oak Management, which added 15 skilled nursing facilities and other care units, contributing significantly to revenue growth.

The company’s total costs and expenses increased by 21.8% to $342.9 million, driven by higher salaries, wages, and benefits, which accounted for $228.1 million. Despite the increase in costs, the percentage of expenses relative to net operating revenues decreased, indicating improved operational efficiency. NHC's cash flow from operating activities surged to $39.3 million, compared to $9.6 million in the prior year, reflecting stronger operational performance and effective management of working capital.

Looking ahead, NHC remains focused on enhancing patient care quality and expanding its service offerings. The company is actively pursuing partnerships with hospital systems and payors to strengthen its position in the post-acute healthcare market. Additionally, NHC is preparing for upcoming regulatory changes, including new staffing requirements from the Centers for Medicare and Medicaid Services, which may impact operational strategies moving forward. The company anticipates continued revenue growth driven by favorable reimbursement rates and strategic expansions in its service lines.