National Healthcare Corp (NYSE: NHC)

National HealthCare Corporation operates skilled nursing facilities, assisted living facilities, independent living facilities, homecare and hospice agencies, and behavioral health hospitals. The company provides subacute and postacute skilled nursing care, intermediate nursing care, rehabilitative care, memory and Alzheimers care, senior living services, home health care services, hospice services, and behavioral health services. In addition, it offers management, accounting and financial services, as well as insurance services to third party operators of health care facilities, and owns real estate that it leases to other operators. Its operations span nine states, primarily in the Southeastern and Midwestern regions of the United States.

National HealthCare Corporation generates revenue mainly from net patient revenues derived from its health care services, which accounted for 96.8% of net operating revenues in fiscal year 2025. The remaining 3.2% comes from other sources such as management fees (typically 6% of managed facilities net operating revenues), accounting and financial services fees, insurance premiums from its wholly owned subsidiaries, and rental income from owned properties leased to third parties. Medicare, Medicaid, managed care, and private pay are the primary payment sources for patient services, with Medicare representing 31% of net patient revenues in 2025.

The company operates through the following segments:.

• Inpatient services: This segment encompasses the operation of skilled nursing facilities, assisted living facilities, independent living facilities, and behavioral health hospitals, delivering skilled nursing, rehabilitative, memory care, senior living, and psychiatric services to residents and patients.

• Homecare and hospice services: This segment provides home health care and hospice care through agencies that offer infusion therapy, wound care, physical, occupational and speech therapies, as well as palliative care for terminally ill patients across multiple states.

National HealthCare Corporation holds a solid position within the long term care and senior housing industry, competing with numerous local and regional operators in the markets it serves. While no single competitor dominates the broader Southeastern and Midwestern markets, the company differentiates itself through an integrated continuum of care that links skilled nursing, assisted living, independent living, home health, hospice, and behavioral health services. Its consistent Five Star quality ratings 62.5% of its skilled nursing facilities earned four or five stars in 2025, above the industry average of 38.6%, and its focus on rehabilitative and patient centered programs provide a competitive advantage in attracting referrals from hospitals and physicians.

The company’s customer base includes seniors requiring skilled nursing, assisted living, independent living, home health, hospice, and behavioral health services, as well as third party operators that purchase management, accounting, financial, and insurance services. No individual customer or related group accounts for a significant portion of revenues, reflecting a diversified payer mix across Medicare, Medicaid, managed care, and private pay sources.