Brookdale Comments on CMS 2012 SNF Rule Changes

NASHVILLE, Tenn., Aug. 1, 2011 /PRNewswire/ -- In light of the Centers for Medicare & Medicaid Services (CMS) Friday announcement of its final rule reducing Medicare skilled nursing facility (SNF) Prospective Payment System (PPS) payments for FY 2012, the Company preliminarily anticipates that the reduction in rates and change in group therapy methodology will reduce full year (October 1, 2011 through September 30, 2012) Cash From Facility Operations in the range of $20 million to $25 million. The Company's current annual run rate for skilled nursing revenue that is paid for by Medicare or by managed care entities that reimburse using the PPS system is in the range of $180 million to $185 million.  The Company's Medicare-reimbursed outpatient therapy and home health services are not impacted by this rule.

This estimate is based on preliminary information and is subject to further analysis, including potential offsetting cost savings.  The Company will update this information on its second quarter earnings call, which is scheduled for August 9, 2011 at 10:00 a.m. ET.  

About Brookdale Senior Living

Brookdale Senior Living Inc. (NYSE: BKD) is a leading owner and operator of senior living communities throughout the United States.  The Company is committed to providing an exceptional living experience through properties that are designed, purpose-built and operated to provide the highest-quality service, care and living accommodations for residents.  Currently the Company owns and operates independent living, assisted living, and dementia-care communities and continuing care retirement centers, with 557 communities in 33 states and the ability to serve over 51,000 residents.

Safe Harbor

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those forward-looking statements are subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding our intent, belief or expectations, including, but not limited to, all statements relating to our expectations regarding the effect of the recent CMS rule change on our results and cash flow. Words such as "expect(s)" and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are based on management's current expectations, are subject to the finalization of the Company's analysis of the recent CMS rule change and its impact on our results and are also subject to various other risks and uncertainties. Actual results and performance could differ materially from those set forth in the forward-looking statements. Additional factors and risks which could have a material adverse effect on our operations and future prospects or which could cause events or circumstances to differ from these forward-looking statements are detailed from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such forward-looking statements speak only as of the date of this press release. We expressly disclaim any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

SOURCE Brookdale Senior Living Inc.