Irvine-based Sun Healthcare Group Inc. said it was cutting its 2009 outlook and is cutting an unspecified number of jobs to reduce costs.
Sun, an operator of nursing homes and other healthcare facilities, said this week that it now expects to make $46.8 million to $48.1 million this year, down from a previous profit forecast of $50.3 million to $52 million.
Analysts had been expecting Sun to make $48.1 million in 2009.
The company said it now expects revenue of just less than $1.88 billion to $1.89 billion, compared to a previous forecast of $1.92 billion to $1.93 billion.
Sun said it was cutting its outlook because of an expected decrease in Medicare payments. Sun gets some 30% of its revenue from Medicare.
As for the job cuts, Sun said they would be “overhead” positions, rather than at nursing homes. Sun said it expects to save $10 million a year.
