IRVINE, Calif. (AP) — Shares of Sun Healthcare Group Inc. fell Friday after the company lowered its annual profit and revenue estimates because of cuts in Medicare and Medicaid payment rates.
The cuts will reduce payments to nursing home operators by 11.1 percent. The changes were announced earlier this year. They go into effect Saturday. Sun Healthcare said it now expects to earn between 83 cents and 94 cents per share in 2011 on $1.93 billion to $1.95 billion in revenue.
The company had previously forecast a profit of $1.30 to $1.45 per share on revenue of $1.95 billion to $2 billion. Analysts had expected the company to report a profit of $1.05 per share and $1.94 billion in revenue, according to FactSet.
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