Sunrise Senior Living Responds to CMS Announcement
In a press release today, Sunrise Senior Living, Inc. responded to the announcement made by the Center for Medicare & Medicaid Services (“CMS”) that it is reducing payments for skilled nursing facilities by $3.87 billion in fiscal year 2012. The Company acknowledged that the payment reduction will affect operating results. Based on a preliminary analysis of the limited information contained in the CMS announcement and assuming that the payment reduction had been in place for the first quarter of 2011, the Company estimates that reported first quarter 2011 consolidated net income and adjusted EBITDA would have each been reduced by approximately $1 million. Skilled nursing units comprise approximately 3 percent of the total unit capacity of the 317 senior living facilities operated by the Company.