Companies in the news
Companies in the news
AHOM gets delisted
American HomePatient (AHOM; Brentwood, TN) has been delisted from the Nasdaq National Market, effective at the close of business Aug. 31. The company will be taken off the market because it failed to meet the minimum bid price requirement of $5 per share. AHOM said it is currently pursuing the listing of its common stock on the American Stock Exchange (Amex).
Unless Amex has approved AHOM for trading by Sept. 1, trading of AHOM’s common stock will be conducted on the over-the-counter market at that date. The company’s trading symbol, AHOM, will remain the same, officials said.
Apria reports profit for 2Q99
Apria Healthcare (Costa Mesa, CA) reported a net income for 2Q99 ended June 30 of $17.8 million, 33 cents per share, compared to a net loss in 2Q98 of $9 million, 17 cents per share. The company’s revenues for 2Q99 totaled $232 million, down slightly from 2Q98 revenues of $240.6 million.
As of June 30, net accounts receivable were $142.9 million, with net days sales outstanding at 55 days, Apria said. In addition, the company used available cash to make a $50 million prepayment to reduce bank indebtedness during 2Q99.
Baxter launches at-home kidney dialysis system
Baxter International (Deerfield, IL) has launched HomeChoice PRO with PD Link, an advanced, at-home kidney dialysis system designed to improve patient care, while making home dialysis easier and more convenient. HomeChoice PRO is a home-based dialysis treatment option that leverages advanced computer technology to communicate critical therapy data to clinicians via a data card or modem. This new monitoring system is the latest innovation in home dialysis. It enables clinicians to monitor patient data on a daily basis, allowing them to adjust prescriptions and identify potential problems between clinic visits.
Dispute with Aetna leads to Coram layoffs
Coram (Denver) has laid off 114 employees in its Whippany, NJ, office because of its dispute with Aetna U.S. Healthcare (Blue Bell, PA). Coram blamed the lay offs on the termination of the master agreement between Aetna and Coram, Aetna’s failure to pay amounts due thereunder, and misrepresentations by Aetna. The employees managed Coram’s five-year agreement with Aetna to provide and manage home healthcare services for its members in eight states. In late June, Coram filed suit against and terminated its contract with Aetna, alleging the company understated the amount of home health services used by the more than 2 million enrollees in Aetna’s HMO-based healthcare plans in the eight covered states. During the term of the contract, Aetna refused to properly compensate Coram, officials said. Coram also notified Aetna on June 30 that it was terminating the master agreement between the two, but that it would work with Aetna to insure the continued and uninterrupted authorization of services for patient care. Coram said late last week that it has largely completed an orderly transition of its management responsibilities for the home healthcare network back to Aetna.
Coram also sued Aetna for more than $50 million, alleging fraud, misreprentation, and breach of contract. Aetna has called the claim frivolous, reported the Wall Street Journal. As a result of the suits, Coram has said it expects to report a loss for 2Q99.
Healthcare acquires Life Line
Healthcare Development Corp. (Tampa, FL) has acquired Life Line Home Services (Tampa, FL). It will add $1.1 million in projected revenues during the next year, increasing the company’s expected revenues to $9.3 million. Healthcare is a wholly owned subsidiary of Asgard Alliance Corp.
Interwest reports results for 3Q99
Interwest Home Medical (Salt Lake City) announced record earnings for 3Q99 ended June 30. Revenues were $7.9 million, a jump of 3% over revenues of $7.7 million for 3Q98. Net income was $393,000, 10 cents per share, compared to $361,000, 9 cents per share, in 3Q98. President/CEO James Robinson said the company’s results are satisfying considering the Medicare oxygen reimbursement reduction.
Kelly exceeds growth expectations
Kelly Services (Troy, MI) announced sales of $1.1 billion for 2Q99 ended July 4. It is a 6.5% increase over $1 billion reported for 2Q98. Net earnings were $20.7 million, 58 cents per share, compared to $20.6 million, 54 cents per share, in 2Q98. Chairman/President/CEO Terence Adderley said the company has exceeded its expectations of 4% to 6% growth.
Matria sees 86% increase in 2Q99 revenues
Matria Healthcare (Marietta, GA) reported that its revenues for 2Q99 ended June 30 were $62.3 million, an 86% increase over revenues of $33.5 million for 2Q98. Net earnings available to common shareholders for 2Q99 were $3.1 million, 9 cents per share, compared to a net loss in 2Q98 of $5.3 million, 14 cents per share.
National HealthCare reports decrease in revenues
National HealthCare Corp. (Murfreesboro, TN) announced earnings for 2Q99 ended June 30. Net income was $2.3 million, 20 cents per share, compared to $2.8 million, 25 cents per share, in 2Q98. Revenues were $107.7 million, compared to $111 million in 2Q98. The decline was due to reductions in Medicare reimbursement for home care, nursing home, and rehabilitation services.
PSA sells HME division to private investor
Pediatric Services of America (PSA; Norcross, GA) has sold its predominately adult home medical equipment branch in Fort Worth, TX, to a private investor. Healthcare merger and acquisition firm The Braff Group (Pittsburgh) represented PSA in the transaction. "The divestiture of this branch is part of PSA’s strategic initiatives to focus on its core competencies," said Tim Binkley, associate of The Braff Group.
Justice Department won’t join Simione lawsuit
The Justice Department has decided not to join claims against Simione Central Holdings (Atlanta) in a whistleblower lawsuit alleging Medicare fraud. Former Olsten Corp. (Melville, NY) Vice President Donald McLendon filed the lawsuit. The justice department recently said it has joined part of the suit involving Columbia/HCA Healthcare Corp. (Nashville, TN). About $41 million of Olsten’s $51 million civil settlement involved allegations in the McLendon lawsuit, reported the Wall Street Journal. Simione’s CEO Barrett C. O’Donnell said Simione did not know about the lawsuit and will cooperate with the government in its investigation. It is unclear, company officials said, whether McLendon will pursue the suit against Simione.
Sunrise contracts with wheelchair basketball star
Sunrise Medical (Carlsbad, CA) has signed wheelchair basketball star Jeff Glasbrenner to Team Quickie, an organization of top wheelchair athletes who compete in everything from basketball, tennis, quad rugby, and racing, using Sunrise’s products. Glasbrenner has competed in tournaments all over the world as part of the U.S. national basketball team since 1997. He received a gold medal at the Gold Cup Championships in Sydney, Australia.
Tenet posts losses of 44 cents per share in 4Q99
Tenet Healthcare Corp. (Santa Barbara, CA) has announced its results for 4Q99 and FY99 ended May 31. The company reported a net loss of $137 million, 44 cents per share, in the quarter, compared to a net loss of $141 million, 46 cents per share, in 4Q98. Revenues for 4Q99 were $2.94 billion, a 14.4% increase compared with 4Q98 revenues of $2.57 billion. For FY99, the company reported a net income of $249 million, 79 cents per share, on revenues of $10.88 billion, compared to a net income of $261 million, 84 cents per share, on revenues of $9.89 billion in FY98. Tenet’s chairman/CEO, Jeffrey Barbakow said that Medicare reimbursement cuts reduced the company’s earnings by 20 cents per share for the year. The company is experiencing rising bad debt expenses and is pursuing initiatives to solve the problem. During 4Q99, the company recorded impairment and restructuring charges of $363 million, which includes losses on the sale or closure of certain hospitals and home health agencies. The company estimates that more reductions in government-funded programs will cost the company about $100 million on a pre-tax basis in FY2000.
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