Companies in the News
Companies in the News
Apria executives compensated
A recent Orange County Register analysis found that Apria Healthcare Group (Costa Mesa, CA) paid ex-Chairman/CEO Jeremy Jones nearly $2 million three times his 1997 pay when he resigned in January 1998. In addition, the Register reported, ex-Chairman Les McCraw was paid $4.5 million when he resigned because of poor health. The company said its board felt they wanted to recognize McCraw’s contribution and leadership.
The analysis found the top-earning executives at California companies collected a median raise of 7.5% last year. The median paycheck was $1.2 million.
Graham-Field CFO resigns
Graham-Field Health Products (GF; Bayshore, NY) Senior Vice President/CFO J. Soren Reynertson has resigned his positions at GF, the company said last week. Reynertson had been a senior associate with Jay Alix & Associates (JA&A), which is known for its experts in company turnarounds and financial restructurings. Reynertson’s departure from GF is a direct result of his decision to leave JA&A to pursue an opportunity in investment banking. On an interim basis, GF President/CEO Jack McGregor will assume the title of CFO.
HealthCor sells TX offices to Auxi
HealthCor Holdings (Dallas) has sold its Texas community care service offices to Auxi Health (Nashville, TN). These offices provide care under two programs funded by the state of Texas: the Primary Home Care program and the Community Based Alternative Program. Auxi also provides care under these programs through its Jackson Healthcare Systems (Temple, TX) subsidiary. HealthCor’s decision to eliminate the nursing line of business will result in the sale or closure of principally all of its nursing activities. The company has no plans to develop business in nursing and will concentrate on its core services of respiratory therapy, medical equipment, and infusion therapy services. The proceeds of the sale, the company said, and the collection of outstanding accounts receivable of Texas CCS offices will total $2 million.
Auxi Health provides skilled nursing; home health aides; companion care; physical, occupational, and speech therapies; infusion services; respiratory therapy; home medial equipment; and case management.
IHHI, DSS form alliance
In Home Health (IHHI; Minnetonka, MN) has entered into a strategic alliance with Diversified Senior Services (DSS; Winston-Salem, NC) in which IHHI will provide medical and personal care services to DSS’ more than 1,000 frail, elderly citizens who reside in its independent living facilities.
DSS CEO William Benton said the alliance is a meaningful step in the growth of the company in that it will provide its residents with the medical and personal care they need in living their everyday lives, while making it possible for DSS to focus on developing and managing new facilities.
IHHI has offices in all locations where DSS has residents and where DSS plans to open new facilities this year and next year, Benton said.
DSS said that because of recent private financing and the alliance with IHHI it expects to build between 12 and 24, 30-door independent living facilities and six and eight, 60-door assisted living facilities in 1999 and 2000.
Lincare board authorizes repurchase
Lincare Holdings’ (Clearwater, FL) board has authorized the company to repurchase up to $200 million of its outstanding common stock. Purchases will be made through open market or negotiated transactions. "The share repurchase plan reflects our confidence in growth prospects," said Lincare CEO John Byrnes. "We believe that the market has been overreacting to the perceived threat of adverse regulatory and legislative activity."
Mallinckrodt to market warming blankets
Mallinckrodt (St. Louis) plans to launch a new sales and marketing program to expand its WarmTouch patient warming business in the United States now that the Federal Circuit Court of Appeals overturned a 1997 ruling in a patent infringement case filed against the company. "Now that the court has ruled that we did not infringe the patents of Augustine Medical (Minneapolis), we will pursue our warming blanket business even more vigorously than in the past," said John Hesemann, president of the company’s respiratory group. Augustine Medical Chairman Scott Augustine said the decision was only the start of a long fight. "Despite the outcome of this appeal, we will continue to defend our intellectual property against imitation." Mallinckrodt’s WarmTouch blankets, similar to Augustine’s Bair Hugger blankets, connect to blowers that fill the blankets with warm air, helping control patient body temperatures.
Mallinckrodt has also announced that oximetry module sales for its original equipment manufacturers are strong, with a volume increase of 15% over the previous fiscal year.
Mariner CEO resigns
Keith Pitts, the chairman and chief executive officer of Mariner Post-Acute Network (Atlanta), has resigned his positions to join Vanguard Health Systems (Nashville, TN). Mariner has established an interim executive committee, which will report to the board of directors until a replacement is found. The committee includes CFO George Morgan, Executive Vice President Chris Winkle, President Bill Korslin, and CIO Bob Napier.
FDA approves MiniMed glucose monitor
MiniMed (Sylmar, CA) announced that the Food and Drug Administration (FDA; Washington) has approved its application for a system designed to provide continuous glucose monitoring for people with diabetes. The glucose sensor is designed to be inserted just under the skin in the abdominal area. With the FDA approval, the company can now begin commercial distribution of the product.
NHHC reports 3Q99 results
National Home Health Care Corp. (NHHC; Scarsdale, NY) reported its results for 3Q99 ended April 30 with revenues at $9.6 million, a 16.2% increase over 3Q98 revenues of $8.3 million. Net income was $420,000, 8 cents per share, compared to $263,000, 5 cents per share, in 3Q98. Company President/COO Steven Fialkow said, "Despite the recent upheavals to home healthcare reimbursement over the past year, the company remains confident that it will stay competitive, and with our current financial resources, adapt to the future changes."
NYC completes acquisition of NJ office
New York Health Care (NYC; Brooklyn, NY) has completed its acquisition of the assets of a former Staff Builders (Lake Success, NY) home healthcare office in Hackensack, NJ. The purchase price was not disclosed, but the acquired office generates annualized revenues of about $300,000. NYC management plans to integrate the administrative offices in Hackensack with the offices of the latest acquisition.
Olsten partners with Alere Medical
Olsten Health Services (Melville, NY) has signed a partnership agreement with Alere Medical (San Francisco) to deliver a disease management program. The program, which will enhance Olsten’s care for congestive heart failure (CHF) patients, will provide daily monitoring of patients at home and their interaction with nurses. It will be implemented in several markets at first, followed by a national expansion. "Under this agreement with Alere," Olsten President Robert Fusco said, "Olsten’s home care nurses will receive special alert reports, as well as regular status reports about their CHF patients, which will allow them to more closely monitor their conditions between home visits and attend to their immediate care needs." The monitor consists of an electronic scale and a communications device that asks the patient questions relating to heart failure symptoms. It will send weight and symptom data daily for review.
Staff Builders posts decreased revenues for FY99
Staff Builders (Lake Success, NY) announced its results for the year and quarter ending Feb. 28. The company posted revenues of $437.6 million for FY99, a 17% decrease compared to revenues of $526.7 million in FY98. It had a net loss in FY99 of $73.1 million, $3.16 per share, compared to a net loss of $21.6 million, 90 cents per share, in FY98. Revenues in 4Q99 were $106.8 million, compared to $131.5 million in 4Q98. Net loss for 4Q99 was $27.8 million, $1.18 per share, compared to a net loss in 4Q98 of $24.4 million, $1.02 per share.
Results include the results of Chelsea Computer Consultants, of which Staff Builders purchased a majority ownership in October 1997. Staff Builders Chairman/CEO Stephen Savitsky said he believes the entire home health industry is at a turning point. "Staff Builders’ home health division was not alone in the industry in reporting declining revenues and profits during the last fiscal year," Savitsky said. The interim payment system resulted in severe financial and cash flow problems for every home health provider. Fortunately, Staff Builders responded immediately to IPS with significant operational changes." The company plans to spin-off its home health division, Tender Loving Care.
Subscribe Now for Access
You have reached your article limit for the month. We hope you found our articles both enjoyable and insightful. For information on new subscriptions, product trials, alternative billing arrangements or group and site discounts please call 800-688-2421. We look forward to having you as a long-term member of the Relias Media community.