Companies In The News
Companies In The News
Amedisys sees decline in 1Q00 total revenues
Amedisys (Baton Rouge, LA) posted a net loss for 1Q00 ended March 31 of $1.3 million, 40 cents per share, compared to a net loss of $2.5 million, 81 cents per share, in 1Q99. Amedisys said it saw total revenues in 1Q00 of $23.4 million, down from 1Q99 revenues of $25.1 million.
The reduction in revenues in 1Q00, Amedisys said, was due in part to the closure of offices, as well as a reduction in visits, in preparation for the implementation of the prospective payment system.
AHOM reports loss in 1Q00
American HomePatient (AHOM; Brentwood, TN) saw a 1Q00 ended March 31 net loss of $8.6 million, 55 cents per share, a decline from the net loss it saw in 1Q99 of $5.6 million, 37 cents per share.
AHOM reported total revenues in 1Q00 of $87.9 million, down from 1Q99 revenues of $91.2 million.
Gentiva launches new placement service
Gentiva Health Services’ (Melville, NY) staffing unit has launched a new Direct Hire service, which is designed to supplement its temporary healthcare staffing services with the recruitment of permanent and full-time healthcare professionals. Hospitals, pharmacies, utilization management companies, and other healthcare providers seeking to hire full-time healthcare professionals in the Louisville, and Chicago areas now can call on Gentiva Staffing to help fill these positions, the company said. The service started May 15 in Louisville and begins June 15 in Chicago.
Gentiva anticipates making the new service available in eight regional marketplaces by the end of the year. Under the new Direct Hire service, Gentiva Staffing will recruit candidates for permanent healthcare positions and will focus on all levels of skilled healthcare and clinical positions. For more information about Gentiva's Direct Hire service, call (800) 599-6616.
In addition, Gentiva also announced the rollout of a national advertising campaign designed to enhance its brand name recognition in the United States healthcare industry. Using the company's new tag line, Care You Can Count On, and its butterfly logo, the advertisements are scheduled to begin appearing in healthcare publications and other print media this month, the company said. The campaign represents the company's first major marketing communications effort since its March 15 split off from its former parent company, Olsten Corporation (Melville, NY).
Infu-Tech’s 3Q00 earnings rise
Infu-Tech (Carlstadt, NJ) posted a 3Q00 ended March 31 net income of $32,000, 1 cent per share, compared to a 3Q99 net loss of $43,000, 1 cent per share. The company reported total revenues in 3Q00 of $4.4 million, down from 3Q99 revenues of $6.5 million, a decrease due primarily to a move away from traditional business and referral contracts to focus on its Smartmeds.com business, Infu-Tech said.
Invacare launches T.V. campaign
Invacare (Elyria, OH) has launched a direct response television campaign as part of its multi-million dollar Marketing Advantage Partnership program, a program designed to increase awareness of the home medical equipment industry, while at the same time establishing the Invacare brand as the brand of choice by consumers.
The campaign, which focuses on the company’s scooters and power chairs, is designed to generate consumer leads to be passed on to Invacare’s dealer-provider customers. The campaign has been launched in Cleveland; Corpus Christi and Tyler, TX; Memphis, TN; Milwaukee; Mobile, AL; Philadelphia; Sacramento; Seattle; and West Palm Beach, FL, Invacare said.
MRS pleads guilty to fraud charges
MRS Homecare (Tifton, GA), its president, and two of its regional managers last week pleaded guilty to felony charges that included conspiracy to defraud the Food and Drug Administration (FDA; Washington) and failing to register with FDA establishments at which prescription drug oxygen tanks were transfilled. The guilty pleas were entered before the U.S. District Court for the Middle District of Georgia in response to charges filed by the U.S. Attorney for the Middle District of Georgia on behalf of the FDA, according to the agency’s Talk Paper.
The report noted that MRS pleaded guilty to failing to register seven plants throughout Georgia, with the intent to defraud or mislead the FDA, and hiding the transfilling operations from the FDA by submitting false documents and statements to the agency, according to Talk Paper.
NYC posts increased revenues in 1Q00
New York Health Care (NYC; Brooklyn, NY) posted a 1Q00 ended March 31 net income applicable to common shareholders of $3.7 million, 0 cents per share, compared to a 1Q99 net loss of $127.7 million, 3 cents per share. The company said it saw total revenues in 1Q00 of $7 million, a 38% increase over 1Q99 revenues of $5.1 million.
The improvement in total revenues, the company said, was primarily due to the full implementation of its multi-year agreement with the City of New York’s Human Resources Administration to provide home care services to the city’s Medicaid patients.
Option Care signs new agreement
Option Care (Bannockburn, IL) said last week that it signed a national Ancillary Services Agreement with One Health Plan, an affiliate of One Corporation.
Under the terms of the agreement, Option Care, through its national network of more than 140 high-tech pharmacies, will provide home infusion therapy services to more than 3 million One Health Plan members nationwide.
Mike Rusnak, Option Care president/CEO, said the agreement with One Health Plan "emphasizes our commitment to providing first-rate clinical care in the alternate site market at reasonable and cost-effective rates." He added that Option Care anticipates seeing an increase in patient census and revenues from the contract during 3Q00.
PSA sees net loss in 2Q99
Pediatric Services of America (PSA; Norcross, GA) posted net revenues for 2Q00 ended March 31 of $47.4 million, a 14% decrease from $54.9 million in 2Q99. The company saw a net loss in the quarter of $2.2 million, 34 cents per share, compared to a net loss in 2Q99 of $28.8 million, $4.33 per share.
PSA recently completed a series of transactions to repurchase a total of $29.6 million of the $75 million aggregate principal amount, 10% senior subordinated notes due 2008 for $18.4 million cash plus accrued interest.
Standard & Poor's (S&P’s; New York) last week affirmed its ratings on PSA and removed them from CreditWatch, where they had been placed with negative implications, on Nov. 3, 1998. Proceeds from the sale of assets have reduced the company's burdensome debt leverage, which had contributed to S&P's concern with the rating, the firm said. But S&P’s added that uncertain operating prospects are incorporated in the negative outlook.
"The company will be challenged to be marginally profitable in a competitive healthcare environment, as payer pressures continue. Labor costs and availability could affect the rating negatively in the intermediate term," S&P’s said.
Rehabilicare reports 28% increase in 3Q00 revs
Rehabilicare (New Brighton, MN) reported 3Q00 ended March 31 total revenues of $13.9 million, a 28% increase from 3Q99 revenues of $10.9 million.
The company recorded a net income in 3Q00 of $669,416, 6 cents per share, compared to a 3Q99 net income of $686,734, 7 cents per share. Rehabilicare said lower than expected revenues, along with one-time sales and marketing costs in Europe were primary reasons for the decline in earnings.
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