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Anthem Insurance Co., Inc. in Indianapolis will take its stock public by the end of the year to raise money to buy Blue Cross health care plans in more states. "This industry is consolidating, and we want to be sure we have the financial resources to create a larger company," says Larry C. Glasscock, Anthem’s president and chief executive. In the last 10 years, Anthem, formerly Blue Cross/Blue Shield of Indiana, has acquired Blue Cross plans in Kentucky, Ohio, Connecticut, New Hampshire, Colorado, Nevada, and Maine, and now has over 7 million customers.
Lincare Holdings Inc. in Clearwater, FL, an in-home provider of oxygen and other respiratory services, has begun a formal relationship with the Community Health Accreditation Program (CHAP), a home care accrediting body based in New York City and one of two national bodies with deeming authority from the federal government. Lincare’s accreditation process at the corporate level has been completed, and site visits are currently taking place.
Legal Research Center Inc., a provider of outsourced legal research and writing services, and Integrity Interactive Corp., which delivers web-based compliance training solutions, will create and deliver an on-line compliance training program for Medtronic Inc. in Minneapolis, which offers products, therapies, and services for people with chronic diseases. The training program will benefit the medical technology company’s employees worldwide.
Florida has approved change of ownership licensing for 12 National Healthcare Corp. (NHC) skilled nursing facilities. The facilities became newly formed, nonrelated companies effective Oct. 1, 2000.
The Murfreesboro, TN-based company — which operates 77 long-term health care centers, 33 home care programs, six independent living centers, and 16 assisted living centers for itself and third parties — decided to leave Florida after it was unable to locate any insurance carrier to provide medical liability coverage.
In December 2000, the company settled a qui tam lawsuit alleging it had submitted cost reports that misallocated routine nursing services between Medicare and other payers. The total settlement was $27 million, less a credit of almost $9.4 million for money the company’s self-audit program disclosed was owed by the government to NHC and its managed centers. The company said the settlement amount has previously been reserved and will have no negative impact on the company’s reported earnings.
For the third quarter, Paracelsus Healthcare Corp. (PHC) in Houston, a public company that owns the stock of hospital corporations in seven states, reported net revenue of $93.2 million compared with $138.2 million. The parent corporation has filed for Chapter 11 bankruptcy protection in the Southern District of Texas; its hospital subsidiaries are not included in the plan, and PHC intends to continue normal business operations of the subsidiaries while restructuring its debt.
Other third-quarter results included earnings before interest, taxes, depreciation, and amortization (EBITDA) — excluding unusual items and reorganization costs — of $6.8 million for the third quarter compared with $13.6 million. Same hospital net revenue was $93.2 million compared with $91.2 million. Same hospital EBITDA was $10.1 million or 10.8% of net revenue compared with $13.7 million or 15% in 1999. The company reported a net loss of $11.5 million or 20 cents per diluted share for 2000 compared with a net loss of $4 million or 7 cents per share.
For the nine-month period, net revenue was $279.3 million compared with $432.4 million in 1999. EBITDA was $28.9 million, compared with $54.3 million previously. Same hospital net revenue was $277.7 million compared with $277.8 million in 1999. Same hospital EBITDA was $37.5 million or 13.5% of net revenue in 2000, compared with $47.1 million or 17% in 1999. Net loss was $29.2 million or 50 cents per diluted share for 2000, compared with a net loss of $13.2 million or 24 cents per share in 1999.
Pediatric Services of America Inc. (PSAI) in Norcross, GA, which provides pediatric home health care services in 22 states, announced financial results for the fourth quarter and fiscal year 2000. Net income for the fourth quarter was $1.2 million compared with a net loss of $17.8 million in the same quarter previously. There was an 8% expected decline in net revenue from $49.6 million in the 1999 quarter to $45.5 million in 2000, due to the elimination of noncore services. Diluted net income per share was 17 cents for the quarter compared with a net loss per share of $2.68.
Net revenue for the fiscal year was $186.4 million compared with $211.4 million previously. Net income was $28.6 million compared with a net loss of $55 million for fiscal 1999. Basic and diluted net income per share was $4.30 for the fiscal year compared with a net loss per share of $8.29 for the previous year.