Companies in the News

Ostex gets clearance for bone resorption monitor

Ostex International in Seattle has received Rx Home-Use clearance and Clinical Laboratory Improvement Amendments (CLIA) waiver status from the Food and Drug Administration (FDA) for the Osteomark NTx point-of-care device. FDA clearance will allow the disposable device to be operated by lay users, under the direction of their physicians, to monitor bone resorption changes after starting osteoporosis therapy.

Waiver status under the CLIA means that the diagnostic technology is so simple to use that the likelihood of an error poses no reasonable risk of harm to the patient if the test is performed incorrectly.

Previously, the Osteomark NTx was available only for professional use by CLIA-certified physician offices. The device is now "available at the two key points for the management of osteoporosis, namely where the drug therapy is prescribed, in the physician’s office, and where the prescription is filled, at the pharmacy,’’ said Thomas Bologna, company chairman, president, and CEO.

Advocate expenses exceed revenues

Advocate Health Care of Oak Brook, IL, a nonprofit integrated health care delivery network, reported total revenues for the year were $2.24 billion, and total expenses were $2.25 billion.

Expenses exceeded revenues primarily due to a reduction in value of investments and the sale of a continuing care retirement community. Advocate purchased Illinois Masonic Medical Center and affiliates, increasing total assets by $365 million, long-term debt by $103 million, and net assets by $128 million.

Advocate made $111.2 million in capital reinvestments in 2000 to expand, renovate, and equip facilities. Debt as a percentage of total capitalization increased to 30.7%, compared with 29%, due to the excess of expenses over revenues and the increase of debt principle associated with the Masonic Medical Center purchase.

Advocate provides care at eight acute care hospitals, two full-service children’s hospitals, and runs a home health care company and more than 200 other sites of ambulatory care.

National Health Investors takes loss for 2nd quarter

National Health Investors in Murfreesboro, TN, a health care real estate investment trust (REIT), announced that a second-quarter fixed asset and mortgage loan writedown of $22.6 million resulted in negative funds from operations for the quarter of $9.3 million or 38 cents per diluted share, compared with $191 million or 68 cents per diluted share.

Revenues were $33.4 million compared with $38 million. Net loss was $12.3 million or 52 cents per diluted share, compared with net income of $13.9 million or 55 cents per diluted share.

For the six-month period, revenues were $67 million, compared with $76 million. Funds from operations were 14 cents per diluted share, compared with $1.37. Net loss was $2.4 million or 14 cents per diluted share, compared with net income of $27.9 million or $1.10 per share.

The company intends to comply with REIT dividend requirements and declare a dividend in the fourth quarter at least equal to 90% of projected 2001 taxable income and paid by Jan. 31, 2002, in a combination of cash and shares of the company.

The board has additionally authorized, subject to bank credit facility approval, the incremental repurchase of up to $10 million of the company’s stock in open market transactions.

2nd-quarter numbers up at New York Health Care

New York Health Care (NYCH, NYH) of Brooklyn, NY, a licensed home health care agency, announced a second quarter net patient service revenue increase of almost 14% to $8.3 million from $7.3 million.

It reported net income of $61,360 or 1 cent per diluted share, compared with a net loss of $1.1 million or 39 cents per diluted share.

For the six-month period, net patient revenue rose 13% to $16 million from $14.3 million, and net income was $110,254 or 2 cents per diluted share, compared with a net loss of $1.4 million or 39 cents per diluted share.

The revenue growth is primarily attributable to an increased caseload from a contract with New York City for services to Medicaid patients, according to Jerry Braun, company president and CEO.

The company is attempting to grow its hospital-based private pay and Medicaid home healthcare revenues not related to the city contract and has added three branch administrators in New Jersey.

Pediatric Services posts solid third quarter

Pediatric Services of America (PSAI) in Norcross, GA, announced that for the third quarter of fiscal year 2001, net revenue increased 2% to $46.3 million, compared with $45.4 million. Operating income was $1.4 million. Net income was $626,000, compared with $9.7 million.

In the fiscal 2000 third quarter, the company repurchased a total of $29.6 million of senior subordinated notes. The pretax gain of $10.3 million was reflected as an extraordinary item in that quarter. Diluted net income per share was 9 cents in third quarter 2001, compared with diluted net income per share of $1.46.

For the nine-month period, which ended June 30, 2001, revenue was $137.5 million, a 2% decrease, compared with $140.9 million.

Operating income was $3.5 million, compared with an operating loss of $1.6 million. Net income was $4.2 million, compared with $27.5 million. During the period, the company repurchased a total of $12.4 million of senior subordinated notes. The pretax gain of $3.3 million is reflected as an extraordinary item for the period. Diluted net income per share was 61 cents, compared with diluted net income per share of $4.13.

PSAI provides pediatric home health care services through a network of 100 branch offices in 22 states.