Companies in the News
Apria posts higher earnings in FY99
Apria Healthcare Group (Costa Mesa, CA) recorded FY99 ended Dec. 31 total revenues of $940 million, up from FY98 revenues of $933.8 million. The company posted a FY99 net income of $204.1 million, $3.81, compared to a FY98 net loss of $207.9 million, $4.02 per share.
Apria saw 4Q99 revenues of 242.3 million, an increase from the $223.3 million in revenues the company recorded in 4Q98. Apria posted a 4Q99 net income of $151.9 million, $2.83 per share, compared to a 4Q98 net income of $2.3 million, 4 cents per share.
Apria also announced that its board authorized the company to repurchase up to $50 million worth of shares of its outstanding common stock. Apria may repurchase stock from time to time on the open market, depending on market conditions and other considerations, the company said.
Infu-Tech develops platform with InfoSpace.com
Infu-Tech (Carlstadt, NJ) will work jointly, through its Smartmeds.com unit, with InfoSpace.com to develop a platform for wireless interactive healthcare communications to assist in disease state management and B2B health commerce. The platform, Infu-Tech said, will incorporate InfoSpace.com’s Internet and wireless communications technologies to integrate personalized medical content, commerce, and disease management services.
Initially, the platform will perform a variety of tasks central to notifying and monitoring patients’ drug compliance with the purpose of enhancing patients’ wellness through disease management services and measuring clinical outcomes, the company said.
Lexington’s 2Q00 revenues increase
Lexington Healthcare Group (Farmington, CT) reported 2Q00 ended Dec. 31 revenues of $19.5 million, a 1% increase from 2Q99 revenues of $19.3 million. The company posted a net income in 2Q00 of $87,000, 2 cents per share, compared to a 2Q99 net income of $79,000, 2 cents per share.
Revenues in the first six months of FY00, Lexington said, increased largely because of rate increases, principally Medicaid, and increased ancillary revenues, and as a result of a management agreement covering four nursing homes, effective Nov. 1, 1998. As of Sept. 1, 1999, there was a reduction in those management fees when management of two of those facilities was terminated, said Lexington.
Manor Care reports FY99 net loss
Manor Care (Toledo, OH) saw 4Q99 ended Dec. 31 revenues of $536.3 million, compared to revenues in 4Q98 of $555.2 million. The company posted a 4Q99 net loss of $164.7 million, $1.60 per share, down from a 4Q98 net income of $27.7 million, 25 cents per share.
For the year, the company posted revenues of $2.1 billion, compared to FY98 revenues of $2.2 billion. Manor Care saw a net loss in FY99 of $43.7 million, 41 cents per share, compared to a net loss in FY98 of $2.9 million, 3 cents per share.
At year end, a reserve was recorded against the four quarters of dividends accruing from the Genesis Health Ventures series G convertible preferred shares held by Manor Care subsidiaries, said Manor Care. Additionally, following an independent valuation analysis of Genesis and the series G shares, the company wrote down its investment of $293 million by $274 million.
Manor Care also exercised warrants for 90% of the common stock of Heartland Medical Information Services (HMIS), a start-up medical transcription company, effective at year end. Consistent with this action, the company has recorded strat-up losses of $12.4 million for FY99 for HMIS. Manor Care said that both the effects of the HMIS losses and the Genesis reserve and asset write-down caused the loss for the year.
Nursefinders acquires licensee DSR
Nursefinders (Arlington, TX) has acquired DSR Medical Management, one of the company’s largest licensees. DSR manages six offices in northern New Jersey and generates $20 million in revenues, said Nursefinders.
The company said the DSR acquisition will serve as a springboard for development of the metropolitan New York City market.
Option Care expects record revenues for FY99
Option Care (Bannockburn, IL) expects to record revenues for 4Q99 of $31 million and for FY99 of $119 million. The company said its earnings per share for 4Q99 is expected to be 12 cents per share, exceeding analysts’ estimates.
The 4Q99 reporting period also marks Option Care’s fourth consecutive quarter of expanding profitability, the company said, and President/CEO Michael Rusnak said the company will "supplement our organic growth with other initiatives already begun. We have recently launched our specialty pharmacy and E-commerce division, OptionMed, and have begun discussions to expand our credit facility to support acquisition activity."
Former Rehabilicare employee sues company
Rehabilicare (New Brighton, MN) has been served a whistleblower suit that was initiated by a former Rehabilicare employee and was intervened by the U.S. government acting as a coplaintiff under the False Claims Act. The suit, served by the U.S. District Court of the Middle District of Florida, has been sealed until recently, Rehabilicare said, when it was brought to the company’s attention by an article in the Tampa Tribune.
The suit alleges that Staodyn (Longmont, CO), which Rehabilicare acquired in 1998, and Henley Healthcare, from which Rehabilicare acquired the assets of its home health division in 1998, improperly filed 500,000 Medicare claims, that they were overpaid more than $120 million on such claims, and that the total statutory amount recoverable under the suit could be $15.6 billion. The suit is based primarily on an allegation that all three companies submitted claims to the government on the basis of certificates of medical necessity faxed from physicians, rather than on signed originals, Rehabilicare said. But it also alleges that the companies altered certificates of medical necessity and overbilled for accessories contained in a standard Medicare kit, Rehabilicare added.
The company reported 2Q00 ended Dec. 31 revenues of $14.8 million, a 36% increase from 2Q99 revenues of $10.9 million. Rehabilicare saw a 2Q00 net income of $1.3 million, 12 cents per share, compared to a 2Q99 net income of $774,000, 7 cents per share. Gross margins in 2Q00 improved to 72% from 70% in 2Q99, said Rehabilicare.
PSA’s 1Q00 revenues down
Pediatric Services of America (PSA; Norcross, GA) saw 1Q00 ended Dec. 31 total revenues of $48.1 million, compared to 1Q99 total revenues of $56.7 million. PSA posted a 1Q00 net income of $20 million, $3.00 per share, up from a 1Q99 net income of $108,000, 2 cents per share.
PSS’ Gulf South unit signs two-year contract
PSS World Medical’s (Jacksonville, FL) long term care division, Gulf South Medical Supply, signed a two-year contract with The Evangelical Lutheran Good Samaritan Society (Sioux Falls, SD). Under the terms of the contract, Gulf South will supply medical supplies to the residents of Good Samaritan’s 240 skilled nursing facilities and home care locations. The contract, which is subject to renewal, is expected to generate $25 million over the two-year life of the contract, said PSS.