Companies in the News
Companies in the News
Ambulatory withdraws plan to reorganize PHP
Ambulatory Healthcare Corp. of America (Manassas, VA) has formally withdrawn its sponsorship of a reorganization plan for PHP Healthcare Corp. (Reston, VA), which filed Chapter 11 bankruptcy in November. Ambulatory President/CEO William Danielczyk said the plan, while received favorably by some, did not reach approval with all of the constituencies. Ambulatory operates outpatient service delivery systems, including home health agencies.
AHOM tries to overcome a disappointing FY98
American HomePatient (AHOM; Brentwood, TN) is trying to cut expenses to offset cuts in revenue and bad debts, and it is waiting for results from a Justice Department investigation of the company’s billing since 1990, reported The Tennessean. After a disappointing FY98, the home health company has replaced almost all of its management team. The company’s earnings are expected to be reported later this month. In the meantime, it is trying to raise its stock price, which stands at about $2 a share, compared to its 52-week high of just under $22. The National Association of Securities Dealers’ Automated Quotations system warned the company in a letter that, under Nasdaq rules, its stock listing was in jeopardy due to a closing bid price of less than $5 for more than 30 days. Nasdaq granted the company a hearing, but postponed a decision on the matter. The company could choose a 1-for-4 reverse stock split, giving investors one share for every four they own. Shareholders have been asked to give the board permission to do this, but executives are talking with the Securities and Exchange Commission (Washington) about other options, reported The Tennessean.
Putnam affiliate suffers $130,000 loss
Bennington Area Home Health Care, an affiliate of Putnam Memorial Health Corp. (Bennington, VT), will close out FY98 with a $130,000 loss, said Putnam CEO Harvey Yorke. The company’s Southwestern Vermont Medical Center, which includes the home health affiliate, is facing a financial crisis because of Medicare and Medicaid reimbursements, company officials said. Home healthcare is taking the biggest hit, said Bennington Area Home Health interim President Julia Maroney. Vermont patients get $1,000 less in benefits than before the Medicare changes, and those benefits will decrease another 15%, reported the Associated Press.
Coram to provide better drug therapies
Coram Healthcare (Denver) has entered into an agreement with Empire Blue Cross and Blue Shield (New York) to better provide drug therapies to patients at home. The agreement will cover instances when it is necessary to provide patients access to prescription drug therapies delivered intravenously in their homes. Coram Prescription Services will supply the prescription drug therapies. The insurance coverage will extend to patients in New York and northern New Jersey.
Company to provide home health customer service
DynaMarketing (Long Island, NY), a company expected to open next month, will provide customer service for national mail-order catalogs that carry home healthcare products and other general merchandise. The company will also build a call center employing 400 people in Spotsylvania, VA.
HCR owner purchases stock
HCR Manor Care (Toledo, OH) owner Ronald Baron purchased 52,763 company common shares in February, according to a Form 4 released by the Securities and Exchange Commission (Washington). Baron owns 10% of the company. He acquired the stock between Feb. 22 and 26 at prices ranging from $22.05 to $24.50 a share, giving him 227,950 company shares.
Health Care Solutions acquires Foley Medical
Health Care Solutions (Ann Arbor, MI), a home respiratory therapy medical equipment and infusion company, acquired Foley Medical (Youngstown, MI), a company also known as Family Home Medical. Foley will become a division of Health Care. The terms of the acquisition were not disclosed, reported the Detroit Free Press.
HCAI intends to acquire Bios Corp.
Home Care America (HCAI; Boca Raton, FL) has signed a letter of intent to acquire Bios Corp. (Deerfield Beach, FL), an Internet company that publishes www.EthicsBureau.com. Financial terms were not disclosed. The acquisition should be complete by April 17, HCAI said. It will bring HCAI one step closer to its goal to divest its healthcare operations. The company has received an offer for its healthcare assets and expects to enter into a formal agreement soon. At that time, the HCAI name and Nasdaq symbol will change.
Lincare executive purchases 10,000 shares
Lincare Holdings (Clearwater, FL) CFO Pal Gaobs purchased 10,000 shares of the company’s common stock earlier this month, according to a Form 4 released by the Securities and Exchange Commission (Washington). He acquired the stock on March 10 for $33 per share. Following the transaction, he held 10,000 shares of the company and had indirect ownership of 3,100 shares.
McKesson to move to larger facility
McKesson MedManagement (Albuquerque, NM), a home healthcare equipment and services provider, will move its facility to another part of the city. The move to 4900 Menaul into a former school and office supply building will triple the size of the facility to 25,000 square feet.
MiniMed announces 2-for-1 stock split
MiniMed (Sylmar, CA) announced a 2-for-1 stock split last week. It will issue one additional share of common stock for every share outstanding, increasing the total number of fully diluted shares outstanding to about 28 million. The split will be effective April 1 for shareholders of record at the close of business that day, and it will be distributed April 16. MiniMed Chairman/CEO Alfred Mann said he expects the move will increase the liquidity of stock and broaden the stockholder base.
NHC opens new home care program
National HealthCare Corp. (NHC; Murfreesboro, TN) has announced that it has opened a home care program in Merritt Island, FL. The program will be in addition to NHC’s healthcare center and assisted living complex in Merritt Island. NHC has also scheduled its annual shareholder meeting for April 26 at its offices.
National Home Healthcare reports 2Q99 results
National Home Healthcare Corp. (Scarsdale, NY) reported $10 million in revenues in 2Q99, compared to $8.8 million in revenues in 2Q98. Net income was $85,000, 2 cents per share, compared to the previous year’s net income of $170,000, 3 cents per share. The 2Q99 income includes the loss of $324,000, 6 cents per share, from a 30.5% interest in SunStar Healthcare. The 2Q98 income includes the loss of $372,000, 7 cents per share, from SunStar.
Internet retailer acquires Banyan
Netoy.com Corp. of Nevada, an Internet retailer, has acquired Banyan Healthcare Services (Philadelphia) for an undisclosed amount of money. Banyan said it will change its name to Netoy.com Corp., appoint a new board and move its office to Largo, FL, reported Dow Jones News Service. The company has also declared a 1-for-10 reverse stock split, effective March 15.
Pediatric Services downgraded; company faces lawsuit
Moody’s Investors Services (New York) downgraded the ratings assigned to Pediatric Services of America (Norcross, GA). The company’s $70 million senior secured credit facility was downgraded from B1 to B3, and its $75 million 10% senior subordinated notes were downgraded from B3 to Caa2, reported Dow Jones Newswire. The ratings outlook is negative, Moody’s said. The downgrade follows the company’s announcement that it would report a significant loss for its 3Q. In other news, a securities class action lawsuit has been filed in the Federal District Court for the Northern District of Georgia against Pediatric Services, President/Chairman/CEO John Sansone, and CFO/Treasurer/Secretary Stephen Mengert on behalf of common stock purchasers between Dec. 23, 1997, and July 29, 1998. The complaint charges that the defendants misrepresented information concerning the company’s accounts receivable.
Employees could lose jobs with Providence transition
As many as 108 employees of Providence Home Health and Hospice of Seattle could lose their jobs when Providence turns its hospice operations over to Visiting Nurses Service of the Northwest (Seattle) this spring. In return, Visiting Nurses is turning over its home health business to Providence. Providence Home Health administrator Bob Ogden said he’s not sure how many of the 108 hospice workers will be let go, reported The Seattle Times.
Respironics settles patent dispute
Respironics (Pittsburgh) has settled a patent dispute related to its bi-level technology. While terms of the settlement are confidential, the company disclosed in a press release that AirSep Corp. (Buffalo, NY) has agreed to a final court order prohibiting it from manufacturing, distributing, or selling bi-level sleep therapy products in the United States. Also, AirSep will pay Respironics an unspecified amount in damages and legal fees. AirSep had been manufacturing, distributing, and selling a bi-level positive airway pressure technology for the treatment of obstructive sleep apnea. Respironics had already patented such a device.
Respironics has also announced that its board has authorized the repurchase of an additional 1 million shares of the company’s common stock. The company has already repurchased about 1.9 million shares since the program began in August 1998.
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