Companies in the News
HAHI gets new credit facility terms
Help At Home (HAHI; Chicago) has renegotiated the terms of its financing with its current lender, Oxford Commercial Funding. The company previously said it had secured a new revolving credit facility with DynaCorp Financial Strategies. But Oxford subsequently agreed to renegotiate its credit facility with HAHI on more favorable terms than the DynaCorp facility, HAHI said. The new terms of the Oxford facility include an interest rate at 3.5% over prime and a one-year term.
HAHI also said it will not be able to file its annual report within the extensive period. As a result, the company’s Nasdaq symbol will become HAHIE. The "E" will be removed once the 10-K is filed, which HAHI said should be by the end of October.
Mallinckrodt introduces new respiratory products
Mallinckrodt (St. Louis) has introduced Breeze SleepGear, its newest sleep therapy product. Breeze SleepGear offers new levels of comfort for sleep apnea sufferers and sets new standards in delivering continuous positive airway pressure (CPAP) therapy. Breeze SleepGear combines with Mallinckrodt’s quiet and portable GoodKnight 418, GoodKnight 418G, and CloudNine auto-CPAP systems.
In addition, Mallinckrodt introduced its pneumatically-powered Puriten Bennett OxiClip PC20 oxygen conserver for home care patients needing a supplemental source of oxygen. The conserver is lightweight and can be worn on a patient’s belt or shirt pocket, the company said.
Olsten’s Pediatric Asthma program is awarded
Olsten Health Services (Melville, NY) was honored recently at the 1999 Wyeth-Ayerst HERA Award ceremonies, which are co-sponsored by the National Managed Health Care Congress. Olsten was presented with the 1999 Silver Wyeth-Ayerst Award for its outstanding achievement with its Pediatric Asthma Self-Management Program.
Option Care to treat blood clots at home
Option Care (Bannockburn, IL) has entered into an agreement with Rhone-Poulenc Rorer, to initiate a home care program for the treatment of serious blood clots, known as deep-vein thrombosis, using Lovenox Injection, which will be provided by Rhone-Poulenc. Under the terms of the agreement, Option Care will provide Lovenox and various support services, including patient education and nursing services where applicable.
OCS develops new market analysis tool
Outcome Concept Systems (OCS; Seattle) has introduced the home care industry’s first market share analysis tool, OCS-MarketView. The new product allows home care agencies and other organizations to view the total number of home care patients in a geographic market and the percentage of those patients who are served by each home care provider in that marketplace. The product also allows in-depth analysis of each competing agency in the marketplace with regard to their visit counts, costs, and resource use. The data is available both in hard-copy report format or via a Web-based tool. For more information on the tool, call (888) 325-3396 or visit the OCS Web site at www.ocsys.com.
Star Multi Care returns to profitability
Star Multi Care Services (Huntington Station, NY) reported a return to profitability in 1Q00, after a rough FY99. The company saw a 1Q00 net income of $91,203, 2 cents per share, compared to a net income in 1Q99 of $132,458, 3 cents per share. After a dividend in 1Q99 to preferred shareholders, the company’s net income available to common shareholders was $79,703, 2 cents per share.
Star Multi Care reported 1Q00 reveneus of $10.4 million, a 20% decrease from 1Q99 revenues of $13 million. The company said the drop in revenues is attributable to a reduction in authorization of service hours related to the New Jersey Medicaid program, the reduction of visit authorizations on Medicare subcontract services provided in New York and New Jersey, and the termination of underperforming contracts in the company’s Florida licensed operations.
Sunrise’s CEO resigns
Sunrise Medical’s (Carlsbad, NY) founder and CEO since 1983, Richard Chandler, has resigned from his positions as chairman/CEO/president, as well as from his seat on the board, to pursue other business ventures. Sunrise has appointed Murray Hutchison, a Sunrise director since 1983, as interim chairman/CEO/president.
Sunrise also said its bank group has agreed to an amendment to its bank credit agreement that remedies a financial covenant violation while providing for anticipated working capital needs. The company’s $120 million credit line was reduced to $110 million, effective Sept. 30, and it will be further decreased in a series of reductions to $65 million on July 7, 2000.
As part of the amendment, $40 million of the outstanding borrowings under the credit agreement have been converted from the revolving credit facility to a term loan secured by the company’s domestic accounts receivable. Sunrise has $91 million in total bank borrowings outstanding. Borrowings under the amended credit line and the term loan are due in full on Jan. 14, 2001. The blended annual interest rate under the amended agreement will increase to an average of 11% at today’s prevailing rates, versus 8% in FY99, Sunrise said. The company is considering a variety of alternatives to generate additional cash to fund credit line reductions, including the divestiture of certain assets.