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Amedisys (Baton Rouge, LA) reported 3Q99 ended Sept. 30 revenues of $24.2 million, a 959% jump from 3Q98 revenues of $2.3 million. The company recorded a net income in 3Q99 of $6.2 million, $1.98 per share, compared to a net loss in 3Q98 of $4 million, $1.32 per share. Home care visits in 3Q99 increased 339% from 72,411 in 3Q98 to 318,129 in 3Q99.
The decrease in general and administrative expenses in attributed to the cost reduction efforts implemented throughout the company, as well as improvements in operating efficiencies, Amedisys said.
The operating loss was the result of restructuring efforts during 1998 and 1999, coupled with economies of scale achieved with the acquisition of certain Columbia/HCA (Nashville, TN) home care agencies. Amedisys said it is proceeding with pans to secure buyers for its remaining ambulatory surgery centers and its alternate-site infusion therapy divisions. The sale of these remaining divisions will not only allow management to focus on its core business, but will provide the company with additional operating capital.
Amedisys also said that, effective Sept. 30, it renegotiated a $14 million note payable to Columbia for the purchase of home care agencies in November 1998. The agreement modifies the terms of repayment of this note, and as a result the company will make quarterly principal and interest payments beginning in April 2001, with the balance of the note being due in July 2004.
Beverly Enterprises (Fort Smith, AR) President/COO Boyd Hendrickson last week resigned from the company and from the board, becoming the second top Beverly executive to resign in a little more than a month. Earlier this month, Beverly reported a 63% drop in earnings for 3Q99, blaming lower Medicare reimbursements and rising labor costs, the Associated Press reported. And in August, the company announced it would pay $175 million to the federal government in a tentative settlement of a Medicare billing investigation.
But the company said Hendrickson’s resignation had "nothing to do with the government investigation of the Medicare situation," the AP reported. "None of the agreements we had with the government involved any individual culpability," a company official said.
David Banks, chairman/CEO, will assume Henrickson’s duties until a successor is named, Beverly said. Hendrickson’s resignation follows that of Robert Pommerville, who was chief legal officer and executive vice president.
Caretenders (Louisville, KY) sold its product operations, which include its infusion therapy and respiratory and medical equipment business, to Lincare Holdings (Clearwater, FL) for $14.5 million. The sale is part of a plan to focus solely on its adult day care business, Caretenders said. The company is also pursuing strategic alternatives to complete the separation of its visiting nurse operations. The realignment will enable Caretenders to be almost debt-free, have borrowing capacity available to fund growth, and deliver higher earnings per share to its shareholders, the company said.
Coram (Denver) received a warning letter, dated Oct. 20, from the New York Stock Exchange informing Coram that it was below criteria on the minimum share price listing standard. The exchange said Coram could be delisted if its stock price doesn’t rise above $1 over the next six months. The average share price of Coram’s stock had traded below $1 over a 30-day trading period, Coram said in its recent quarterly report. Coram has six months from Oct. 20 to raise the stock price both in terms of absolute value and the 30-trading-day average.
But Coram also was early warned regarding the listing requirement that it maintain at least $50 million each in stockholder’s equity and market capitalization, and Coram said it won’t comply with this requirement and expects to receive another notice from the exchange. Upon receipt of this notice, Coram said, the company must respond within 45 business days with a plan that demonstrates compliance with these continued listing standards within 18 months. Coram said it has considered certain aspects of a plan, including the possible sale of its Coram Prescription Services division.
In other news, Coram’s fraud, negligent misrepresentation, and mistake claims against Aetna U.S. Healthcare (Blue Bell, PA) have been dismissed in a U.S. District Court. The claims are related to Coram’s agreement to provide home healthcare services to Aetna U.S. Healthcare. All claims have been dismissed except its breach of contract claim.
Help At Home (HAHI; Chicago) reported FY99 ended June 30 revenues of $27.9 million, a 20% increase from FY98 revenues of $23.1 million. The company posted a net loss in FY99 of $2.1 million, $1.12 per share, compared to a net loss in FY98 of $3.6 million, $1.93 per share. The loss was attributable to an increase in the company’s reserve for bad debt direct write-off on uncollectable receivables, which increased to $3 million in FY99 from $800,000 in FY98. As a result of this increase, and in connection with the departure of previous management, the company has instituted changes in its finance department in order to refocus on billing and collection efforts.
Horizon Pharmacies (Denison, TX) has acquired Sundance Medical (Denison, TX), a home medical equipment company, for an undisclosed amount of cash, plus debt assumption. Horizon said Sundance, which has annual sales of $450,000, is expected to merge with the company’s operation in Denison, TX.
Interwest Home Medical (Salt Lake City) has entered into a three-year, fixed-term preferred provider agreement with United Healthcare of Utah. The agreement replaces previous provider agreements that have been in place for more than 10 years between the companies, Interwest said, and includes a renewal clause. In addition, the agreement has been accepted by both Nevada and Colorado United Healthcare plans, more than doubling the lives covered by the Utah plan.
Interwest has been United Healthcare of Utah’s primary provider of home medical equipment services for several years.
Invacare’s (Elyria, OH) board has declared a cash dividend of .0125 cents per share on its common shares and .011364 per share on its class B common shares payable Jan. 17 to shareholders of record on Jan. 3.
Lexington Healthcare (Farmington, CT) reported 1Q00 ended Sept. 30 revenues of $21.3 million, a 36% increase from revenues in 1Q99 of $15.7 million. The company recorded a net income in 1Q00 of 32,000, 1 cent per share, compared to a 1Q99 net income of $104,000, 3 cents per share.
1Q00 revenues increased largely as a result of a management agreement covering four nursing homes effective Nov. 1, and the subsequent acquisition of two of the managed nursing homes as of Sept. 1.
New York Health Care (NYC; Brooklyn, NY) reported 3Q99 ended Sept. 30 revenues of $6.3 million, a rise of 23.9% over 3Q98 revenues of $5.1 million. The increase is due primarily to the company’s agreement with the City of New York Human Resources Administration (HRA) to provide home care services to New York’s Medicaid patients. The company posted a net income in 3Q99 of $27,509, 1 cent per share, compared to a net income in 3Q98 of $119,909, 3 cents per share. The 3Q99 profit, NYC said, follows a loss for the first half of FY99 as the company incurred expenses associated with the build-up of its infrastructure to deliver services under the HRA program without generating significant revenues from it.
Thus far in the year, NYC has repurchased 29,300 shares of its common stock under the share repurchase program authorized by its board.
NuMed Home Health Care (Clearwater, FL) and Capital General Corp. have signed a letter of intent for Capital General to acquire 80.9% of NuMed by an issuance of 25 million shares of NuMed stock. In exchange, NuMed will own 45% of Capital General, will have for a two-year period all acquisitions targeted by Capital general in the healthcare field, and upon closing will have a $2.5 million loan for working capital. The proposed effective date for the transaction is Dec. 31. The transaction is subject to approval by the board of both NuMed and Capital General.
Olsten Health Services’ (Melville, NY) Robert Fusco will step down as president, the company said last week. Fusco plans to leave the post by the end of the year to pursue other interests. Olsten President/CEO Edward Blechschmidt will take on the additional duties of health services president when Fusco resigns, the company said.
U.S. HomeCare (Hartford, CT) reported a net loss in 3Q99 of $332,000, 1 cent per share, compared to a 3Q98 net loss of $2.1 million, 17 cents per share, reported the Hartford Courant. The home care company said last week that it posted net revenues in 3Q99 of $11.5 million, a slight increase from 3Q98 revenues of $11.2 million. U.S. HomeCare said the increase in revenues was partly attributable to 1999 Medicare rate increases and a $611,000 charge in last year’s quarter for a settlement with Medicare, the Courant reported.