Executives with long-term care provider Diversicare have signed an agreement to sell three of their Kentucky properties for a combined $18.7 million.
The sales of the facilities in Clinton and Fulton in far Western Kentucky and Glasgow east of Bowling Green are expected to close in the fourth quarter and will trim Brentwood-based Diversicare’s footprint in the Bluegrass State to 10. In the third quarter — during which Diversicare posted a $7.4 million net loss from continuing operations on revenues of $141 million — Kentucky accounted for 19 percent of the company’s revenues.
In conjunction with their Q3 report, Diversicare President and CEO Jay McKnight and his team also said they have created a $6.4 million contingency expense related to a U.S. Department of Justice investigation (started four years ago) into alleged false claims, some of the company’s rehabilitation practices and policies as well as some pre-admission procedures required under TennCare and Medicare. Execs are in talks with the government about a settlement but say they can’t guarantee the $6.4 million set aside will suffice should a settlement be reached.
Shares of Diversicare (Ticker: DVCR) fell nearly 9 percent Thursday to close at $5.87. Over the past six months, they have slid nearly 20 percent.