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Amedisys (Baton Rouge, LA) has sold its Amedisys/Columbia Homecare operations in Oklahoma City, Lawton, and Hydro, OK, to Heartland Healthcare (Oklahoma City). The acquisition gives Heartland 19 offices statewide. The purchase price was not disclosed. "This agreement will further the company’s strategic plan of developing statewide home healthcare coverage," Heartland President Terry Johnson told the Daily Oklahoman.
Chemed’s (Cincinnati) Patient Care subsidiary saw earnings growth of 6.5% in 2Q99 ended June 30, said Chemed Chairman/CEO Edward Hutton. Patient Care also recorded increased revenues in 2Q99, jumping to $32.2 million, an increase of 7.3%. Patient Care continues its focus on personal care services using home health aides and on increasing private-pay revenue opportunities, assisted living relationships, and participation in properly funded insurance programs. In addition, Patient Care completed two acquisitions in 2Q99, including that of Medical Personnel Services and Caring Companions of North Shore.
Chemed officials said they see great opportunity in the home health field as demand for personal care services continues to accelerate along with the aging population. With its reputation for quality, its expanding services, and its increased geographic coverage through its accelerating acquisition program, Patient Care is well positioned for future growth, officials said.
Chemed recorded 2Q99 revenues of $109.4 million, an increase from 2Q98 revenues of $95 million. The company reported a net income in 2Q99 of $5.4 million, 49 cents per share, compared to a 2Q98 net income of $5.6 million. The net income results reflect after-tax gains of $5.6 million in 2Q99 and $2.4 million in 2Q98.
Continental Home Healthcare’s (Vancouver, British Columbia) U.S. subsidiary, Continental Hospital Supply Corp., has entered into an agreement with Good Samaritan Hospital of Los Angeles to provide home medical equipment, respiratory therapy services, and other related products and services to hospital patients discharged from Good Samaritan to the home care environment.
Help At Home (HAHI; Chicago) has entered into an agreement with Falcon Consulting Co. (New York) under which Falcon will provide financial public relations services for HAHI for a trial period of 90 days.
In Home Health (IHHI; Minnetonka, MN) reported a net income in 3Q99 ended June 30 of $1.1 million, 9 cents per share, an increase of 23% from 3Q98 net income of $936,000, 5 cents per share. IHHI’s 3Q99 net income available to common shareholders, which includes the deduction of a preferred stock dividend payable to HCR Manor Care (Toledo, OH), was $500,000, compared to $287,000 in the same period last year. The company recorded revenues in 3Q99 of $20.2 million, compared to revenues of $22.9 million in 3Q98.
As a result of increased profitability in some branches and a $1.6 million reduction in general, administrative, and selling expenses from last year, IHHI achieved an improvement of 41% in income from operations in 3Q99 over last year’s, officials said.
Integrated Health Services (IHS; Owings Mills, MD) reported 2Q99 ended June 30 revenues of $625.4 million, compared to 2Q98 revenues of $740.9 million. IHS recorded a net loss in 2Q99 of $4.6 million, 10 cents per share, a decrease from the 2Q98 net income of $41.5 million, 76 cents per share.
Invacare (Elyria, OH) has reported financial results for 2Q99 ended June 30. Net sales were $202.2 million, a slight decrease from 2Q98 sales of $202.8 million. But net income was $11.9 million, 39 cents per share, compared to $11 million, 36 cents per share, in 2Q98. Chairman/CEO A. Malachi Mixon said domestic sales were sluggish for 2Q99, but that "long term underlying demand and demographic trends continue to be favorable, and we are confident that this adjustment cycle will end in the near future." Part of the problem is that dealers, in response to cuts in Medicare reimbursements, are carrying less stock and refurbishing existing equipment.
Lincare Holdings (Clearwater, FL) reported revenues of $143 million for 2Q99 ended June 30, which is a 20% increase over revenues of $119.5 million for 2Q98. Net income was $24.8 million, 42 cents per share, compared to net income of $20.7 million, 35 cents per share, for 2Q98. During 2Q99, Lincare completed the acquisition of respiratory operations of HealthCor Holdings with expected annual revenues of about $9 million.
Olsten Corp. (Melville, NY) and its subsidiary, Kimberly Home Health Care, finalized its deal with the federal government to settle a Medicare fraud investigation. The company will pay $61 million in cash, and Kimberly will plead guilty to three felony charges, including conspiracy, mail fraud, and violation of the Medicare antikickback statute. Olsten President/CEO Edward Blechschmidt called the deal "a welcomed conclusion of a difficult period in our company’s history." Investigators said the company sold several Florida home health agencies to Columbia/HCA Healthcare Corp. for an amount far below their worth, then charged Columbia "inflated fees" to manage the agencies. The fees were then billed to Medicare. Medicare will pay for legitimate management fees, but not for acquisition costs. The U.S. Justice Department has also said that Olsten improperly billed Medicare for reimbursements to pay for season tickets to baseball and basketball games, country club fees, skating lessons, golf outings, and box seats to sporting events at Madison Square Garden. The justice department said Kimberly would be barred from participating in Medicare and other federal health benefit programs, reported Newsday. The department has also joined a lawsuit by a whistleblower against Columbia/HCA, alleging it conspired with Olsten to get Medicare to pay for the acquisition.
Olsten Health Services has received accreditation from the Joint Commission on Accreditation of Healthcare Organizations at 68 of its branch office locations around the country. The company’s Miami region received accreditation with commendation. In addition, Olsten’s Precise System has been awarded the status of accredited training product by the British National Training Organisation for Information Technology.
McKesson HBOC (San Francisco) has established the Pathways Homecare InfoCenter, a free Web-based service offering support of administrative, clinical, and financial needs. The service also updates information on product announcements and software, as well as provides the opportunity to join chat rooms and send email to other Pathways Homecare users. Subscription Web-based training courses will help to save resources on employee training, the company said.
Cruttenden Roth (San Diego) has initiated coverage of Rehabilicare (New Brighton, MN) with a "strong buy" recommendation. The stock closed at $3.75 following the announcement. Cruttenden Roth analyst Justin Vaicek said: "The significant upside in the story lies in the company’s ability to acquire companies, execute in cost cutting, add complementary product lines outside of the third party pay environment, and thereby further increase earnings dramatically in the near term." The company has a 12-month price target of $6 per share, Vaicek said. Rehabilicare announced on July 16 that is had acquired Compex SA, which markets home use electrotherapy products.
Staff Builders (Lake Success, NY) reported results for 1Q00 ended May 31. Revenues were $107.7 million, a decrease of $3.6 million or 3.2% from $111.3 million for 1Q99. Net loss was $2.1 million, 9 cents per share, compared to a net loss of $99,000, no cents per share, for 1Q99. The company is also moving forward with its spin-off of the home health division as Tender Loving Care Health Care Services. Tender Loving Care will acquire 100% of the outstanding capital stock of the Staff Builders subsidiaries engaged in the home healthcare business.
Total Renal Care Holdings (Torrance, CA) said last week it anticipates reporting lower-than-expected financial results in 2Q99. The results will reflect the impact of both higher operating expenses and lower net operating revenues per treatment for services billed out of the company’s Tacoma, WA, office. This office is responsible for billing 55% of the company’s domestic dialysis revenues. Earnings per share, before certain charges the company will incur, are estimated to be 20 cents to 22 cents per share.
In other news, the Total Renal Care’s board has accepted the resignation of CFO John King. Maris Andersons, a former senior advisor for corporate finance at Tenet Healthcare and a member of Total Renal Care’s board, has been appointed chairman of a newly formed finance committee of the board and will work with the company’s financial executives pending the hiring of a new CFO.