Companies In The News
Continental sees increase in FY99 revenues
Continental Home HealthCare (Glendale, CA) reported FY99 ended Dec. 31 revenues of $19.4 million in Canadian dollars, compared to $13.8 million in FY98. The company posted a net income of $468,000, 4 cents per share, up from a FY98 net income of $272,500, 4 cents per share.
President/CEO Robert Thortnton said the 40% increase in annual revenues and the jump in net earnings was attributable to the strong internal, rental, and sales growth from existing operations, as well as revenues from newly acquired entities.
In other news, Continental’s U.S. operating company, Continental Hospital Supply, has signed a preferred provider contract with the Hotel Employees and Restaurant Employees International Union Welfare Fund (Las Vegas). Continental is one of two providers chosen by the fund over numerous regional and national home healthcare providers to supply healthcare equipment and services exclusively to the fund’s 130,000 members, the company said. The contract is valued at more than $1 million annually.
Continental’s previously attained preferred provider contracts have resulted in significant revenue growth for the company, and this recent agreement is expected to produce similar results by substantially expanding revenue and earnings within Continental's Las Vegas branch, the company said.
Gentiva completes first financial reporting period
Gentiva Health Services (Melville, NY) posted a 5% increase in revenues in 1Q00, its first quarter of financial reporting since the company’s split off from its former parent company, Olsten Corp. (Melville, NY). The company recorded 1Q00 revenues of $385 milion, compared to $368 million in 1Q99.
Gentiva posted a net loss, however, in 1Q00 of $1.9 million, 9 cents per share, an improvement over the loss it reported in 1Q99 of $12.8 million, 63 cents per share.
The company said the increased revenues were fueled by growth in its specialty pharmaceutical and staffing businesses, which in 1Q00 grew 8% and 20%, respectively, over 1Q99.
During 1Q00, the company entered into new contracts with managed care organizations, including a renewal of its national contract with Cigna Healthcare. The company also made final an agreement with Kaiser Permanente to provide home health nursing care to members in Kansas City on a case rate basis and infusion therapy services on a fee-for-service basis.
Help At Home sees 25% jump in 3Q00 revenues
Help At Home (Chicago) reported 3Q00 ended March 31 revenues of $8.6 million, an increase of 25% over 3Q99 revenues of $6.9 million. The company posted a net income of $362,000, 19 cents per share, compared to a 3Q99 net income of $131,000, 7 cents per share.
NYC awarded contract from city hospital system
New York Health Care (NYC; Brooklyn, NY) was awarded a two-year contract from the New York City Health and Hospitals Corp. (HHC) to provide a range of home care personnel and services to patients of the hospital system.
Remuneration under this contract or other companies that were awarded similar contracts cannot be predetermined, said NYC. The value to the company will be based on HHC’s requirements and the use of NYC to fill those requirements. But, the company said, in its request for proposals, HHC’s home health services division projected that it will schedule more than 300,000 home health visits in the boroughs of the Bronx, Manhattan, and Queens in FY01.
Star completes purchase of USHC operations
Star Multi Care Services (Huntington Station, NY) has completed the acquisition of the Pennsylvania operations of U.S. HomeCare (USHC; Hartsdale, NY). Star projects that the operations in Philadelphia, Pittsburgh, and Lancaster will contribute in excess of $5 million in annual sales.
The projected sales growth is greater than Star originally anticipated due to the award of additional state contracts. In addition, the profit margins for the operations will be greater than first projected due to recent increases in the Pennsylvania Medicaid billing rates, Star said.
USHC said in March that it was shutting down and would sell off its assets, for which its agent bank, Chase Manhattan, became responsible.