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American HomePatient (AHOM; Brentwood, TN) reported 2Q99 ended June 30 net revenues of $90.4 million, down slightly from 2Q98 revenues of $91.2 million. The company recorded a net loss of $4.9 million, 32 cents per share, compared to a net income in 2Q98 of $3.9 million, 26 cents per share.
AHOM President/CEO Joseph Furlong said the company’s performance for the first six months of FY99 is moving along on schedule. "We set out at the beginning of the year with realistic expectations for restoring AHOM to its former level of historical success," Furlong said. "So far, we are pleased with the progress we have made in reducing and controlling expenses and in reducing our net patient accounts receivable and DSO." Furlong further said the company’s biggest challange for the rest of FY99 is in achieving more revenue growth.
Caretenders (Louisville) has completed a new $20 million revolving credit facility with Bank One Kentucky NA. This financing replaces credit agreements with Heller Financial Services and BankOne under which $14 million in borrowings were outstanding. Borrowings available under the new facility may be used for working capital, acquisitions, development of new markets, and other general corporate purposes.
Centennial HealthCare (Atlanta) announced its 2Q99 ended June 30 results with revenues of $99.9 million, up 14% from $87.9 million in 2Q98. The company posted a net loss of $7.6 million, 64 cents per share, in 2Q99, compared to a net income in 2Q98 of $3.8 million, 32 cents per share. During 2Q99 the company recorded a nonrecurring charge of $14.5 million, $8.9 million net of taxes, related to the revaluation of long-term assets from the implementation of the prospective payment system.
Chemed’s (Cincinnati) board of directors declared a quarterly cash dividend of 53 cents per share on its capital stock, payable on Sept. 10 to stockholders of record on Aug. 20. This represents the 113th consecutive quarterly dividend paid by Chemed in its 28 years as a public company.
Coram Healthcare (Denver) is looking for a company to buy, reported Dow Jones News Service, despite a significantly low stock price and litigation with a customer that provided 20% of its 1Q99 revenues. Coram CEO Richard Smith told Dow Jones that there is a number of candidates the company has done due diligence with. Smith said at Coram’s recent shareholders meeting that "it is entirely possible that in 1999 we will make a strategic acquisition in this area," referring to the company’s Coram Prescrip tion Services (CPS) unit. The acquisition candidates are reportedly in the specialty-drug area, the same segment in which CPS concentrates.
HealthCor Holdings’ (Dallas) petition for Chapter 11 bankruptcy protection, which the company filed two weeks ago, lists assets and liabilities of $71 million and $141 million, respectively, according to Federal Filings. Although HealthCor noted the existence of between 16 and 49 creditors, the company estimated that, after exempt property is excluded and administrative expenses paid, there will be no funds available for distribution to unsecured creditors. The petition also notes that there are 10.1 million shares of common stock outstanding.
Healtheon Corp. (Santa Clara, CA) entered into an agreement with Option Care to offer its provider portal, Healtheon Practice, to Option Care’s 145 offices nationwide. Healtheon officials said the initial phase of automating claims processing for the company’s corporate office is underway.
Healthsouth’s (Birmingham, AL) 2Q99 ended June 30 revenues rose 7% from 2Q98 revenues of $979 million to to $1 billion. The company recorded a net income in 2Q99 of $114 million, 27 cents per share, compared to a net income in 2Q98 of $122 million, 28 cents per share.
"Despite difficult conditions in the healthcare industry and the capital markets, Healthsouth continued to execute its strategic plan in 2Q99," said Chairman/CEO Richard Scrushy. He added that the company completed the acquisition of the American Rehability Services outpatient rehabilitation centers in an asset purchase from Mariner Post-Acute Network (Atlanta).
Help at Home (Chicago) announced recently its financial results for the eleven-month period ended May 31. Net income for the period totaled $459,000, 25 cents per share. The company saw total sales in the period of $25.7 million.
Invacare Corp. (Elyria, OH) has raised its cash tender offer to acquire Scandinavian Mobility International A/S from $15.09 per share to $16.52 per share. The offer was made to qualified shareholders of Scandinavian Mobility and is open until Aug. 31. The total value of the transaction at the amended price is about $146 million. The Danish newspaper, Politiken, reported that Lars Foghs gaard, the majority shareholder in Scandinavian, had accepted the offer by Invacare.
National HealthCare (Murfreesboro, TN) announced 2Q99 ended June 30 earnings of $2.3 million, 20 cents per share, compared to $2.8 million, 25 cents per share, for 2Q98. Revenues were $107.7 million, compared to $111 million for 2Q98. The decline in revenue was due to reductions in Medicare reimbursement.
Olsten’s (Melville, NY) Kimberly Home Health Care subsidiary, which recently pleaded guilty to Medicare fraud, had been warned that its intended arrangement with Columbia/HCA Healthcare (Nashville, TN) was illegal, but it pursued the deal anyway, reported the Tampa Tribune. A lawyer for the subsidiary told company officials that their plans to sell home health agencies to Columbia at a reduced price only to charge inflated management fees and billing them to Medicare was "too close to the line." During the negotiations, Kimberly’s lawyer advised that the deal would only be legal if the 24 home health agencies were sold at a fair market price, according to papers filed last week in Tampa’s federal court. Company executives ignored the advice, the court papers said, because they believed it was legal as long as the management fees were at a fair market value. An Olsten spokeswoman told the Tribune that the court papers do not reflect the context of the conversations. Kimberly and Olsten settled with the government for $61 million in criminal and civil penalties, including a guilty plea from Kimberly. They have also agreed to cooperate with the government in its investigation of Columbia.
In other news, Olsten announced that its executive vice president and general counsel, William Costantini, has been appointed an honorary commissioner of the New York State Division of Human Rights.
Sunrise Medical (Carlsbad, CA) has introduced Kid Kart Xpress, a stroller that provides head and postural support, as well as recline capabilities, for children with cerebral palsy and other disabling conditions. The stroller features push button tilt and recline capabilities and folds easily for transporting into a car.
VueCare In Home Health Services (Stevensville, MD), a private home health provider, has selected C-Phone Corp. to provide the video link in a national home health services program. Financial terms were not disclosed. VueCare said it plans to install the 300 C-Phone systems by year’s end.