Companies in the News

AHOM’s 3Q99 revenues down

American HomePatient (AHOM; Brentwood, TN) saw 3Q99 ended Sept. 30 total revenues of $89.3 million, down from $90.4 million in FY98. The company posted a 3Q99 net loss of $5.2 million, 34 cents per share, compared to a 3Q98 net loss of $9.9 million, 66 cents per share.

Net patient accounts receivable decreased to $90 million at the end of 3Q99, AHOM said, compared to $91.6 million at the end of 2Q99. Net days sales outstanding was 96 days at the end of both 3Q99 and 2Q99, the company said.

Coram’s 3Q99 impacted by subsidiaries’ losses

Coram Healthcare (Denver) said that despite sequential improvements in the company’s infusion therapy business during 3Q99, the period’s financial results were impacted by losses in the subsidiaries that operate its Resource Network division, and by a charge and incremental expenses related primarily to the wind-down of this division.

Coram recorded a net loss in 3Q99 ended Sept. 30 of $15.2 million, 30 cents per share, compared to a 3Q98 net income of $2.8 million, 6 cents per share. Total revenues in 3Q99 were $143.2 million, up slightly from 3Q98 revenues of $143.6 million.

In other news, Coram said its Resource Network subsidiaries have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. The filings do not include, and should not affect, other Coram operations, the company said.

IHHI’s 3Q99 earnings down

In Home Health (Minnetonka, MN) reported a FY99 ended Sept. 30 net income of $4.2 million, 30 cents per share, compared to a FY98 net income of $3.5 million, 15 cents per share. The net income available to common shareholders in FY99 was $1.6 million, compared to FY98 net income available to common shareholders of $803,000.

The company recorded net revenues in FY99 of $80 million, down from revenues in FY98 of $97 million. IHHI said that the earnings improvements reflect its response to the regulatory changes in the healthcare industry. Cost-reimbursed revenue decreased in FY99 because of cost reduction initiatives required to operate within the new Medicare per-beneficiary cost limits. IHHI Chairman/CEO Wolfgang von Maack said the company successfully achieved its key objectives in FY99, despite the turmoil in the industry. He said the company has met the challenge of operating under the prospective payment system and has reduced its participation in the cost-based Medicare program to 48% of revenues in FY99 from 55% in FY98, reducing its reliance on Medicare as a major payer source.

McKesson Medical Group implements OneWorld

McKessonHBOC Medical Group (Richmond, VA) has begun to implement OneWorld, software developed by J.D. Edwards & Company (Denver). McKesson Medical Group said it needed an enterprise solution that had robust functionality and the agility to rapidly respond to business changes. With the changing face of the healthcare marketplace, McKesson Medical Group said, the company needed to have real-time access to information across the enterprise in order to continue to successfully service its diverse customer base. OneWorld’s Web-enabled applications allow McKesson Medical Group to access information anytime, anywhere, the company said. The Medical Group is live on OneWorld General Ledger, Budgeting and Fixed Assets. The company is also implementing other financial applications, as well as the logistics/distribution suite.

Option Care sees highest earnings in history in 3Q99

Option Care (Bannockburn, IL) reported 3Q99 ended Sept. 30 net income of $1.3 million, 11 cents per share – the highest in its history, Option Care said. The 11 cents per share earned exceeded the financial community expectation of 8 cents per share by 38%. The results compare to a 3Q98 net loss of $356,000, 3 cents per share. Option Care recorded 3Q99 revenues of $30.1 million, slightly lower than $30.3 million in 3Q98.

Option Care President/CEO Michael Rusnak said the 3Q99 financial results "are an affirmation of the new management team’s direction, begun approximately one year ago, which is to maintain Option Care’s philosophy of patient first, while refocusing on the basic fundamentals of revenue management, cash collection, and strong communication."

Star Multi Care drops to SmallCap Market

Star Multi Care Services’ (Huntington Station, NY) common shares last week moved to the Nasdaq SmallCap Market from the National Market, the company said. Star Multi Care no longer met the minimum market value of public float of at least $5 million.

In other news, Star Multi Care said it expects to report a profit for 2Q00 ending Nov. 30. In 2Q99, Star Multi Care posted a net loss of $101,000, 2 cents per share, on revenues of $12.8 million. The company saw a net income of $91,203, 2 cents per share, on revenues of $10.4 million, in 1Q00 – its first profitable quarter after a financially rough FY99.

Star Multi Care said it has purchased 89,800 common shares on the open market since it started a share repurchase program in August.

Types of Findings Current Review (Percentage) Prior Review (Percentage)
Services Not Reasonable and Necessary 5.51% 18.33%
Beneficiary Not Homebound 3.00% 10.67%
Services Without Valid Physicians' Orders 3.57% 10.38%
Services Not Documented 0.96% 00.19%
No Documentation at Terminated HHAs 5.80% N/A
Total 19% 40%