MELVILLE, N.Y., June 2 /PRNewswire-FirstCall/ -- Gentiva Health Services, Inc. (Nasdaq: GTIV), the nation's leading provider of comprehensive home health services, announced today that it has acquired Physicians Home Health Care (PHHC), one of Colorado's largest home health providers, for $12 million in cash. The transaction will be funded from Gentiva's existing credit facility.
PHHC, first established by a group of physicians in 1984, operates three locations serving 12 Colorado counties, including the Colorado Springs, Denver and Pueblo regions. The acquisition extends Gentiva's operations to 38 states.
Unaudited 2007 net revenues for PHHC were approximately $9.4 million, with nearly 83% derived from Medicare reimbursement. The acquisition is not expected to have a material impact on Gentiva's 2008 earnings.
"This acquisition moves Gentiva into another very active state for home healthcare and strengthens our growing Western division," said Chairman and CEO Ron Malone. "It will give us an additional platform to expand our services, including our groundbreaking specialty programs. We anticipate a smooth integration and extend a warm welcome to the Physicians Home Health Care employees as they join the Gentiva family."
About Gentiva Health Services, Inc.
Gentiva Health Services, Inc. is the nation's leading provider of comprehensive home health services. The Company serves patients across the United States, through its direct service delivery units or through CareCentrix(R), which manages home health services for major managed care organizations. Gentiva is a single source for skilled nursing; physical, occupational, speech and neurorehabilitation services; hospice services; social work; nutrition; disease management education; help with daily living activities; respiratory therapy and home medical equipment; infusion therapy services; and other therapies and services. Gentiva's revenues are generated from federal and state government programs, commercial insurance and individual consumers. For more information, visit Gentiva's web site, http://www.gentiva.com, and its investor relations section at http://investors.gentiva.com. GTIV-G
Certain statements contained in this news release, including, without
limitation, statements containing the words "believes," "anticipates,"
"intends," "expects," "assumes," "trends" and similar expressions,
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are
based upon the Company's current plans, expectations and projections about
future events. However, such statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the Company to be materially different from
any future results, performance or achievements expressed or implied by
such forward-looking statements. These factors include, among others, the
following: economic and business conditions; demographic changes; changes
in, or failure to comply with, existing governmental regulations;
legislative proposals for healthcare reform; changes in Medicare and
Medicaid reimbursement levels, including changes to the Medicare home
health Prospective Payment System effective January 1, 2008; effects of
competition in the markets in which the Company operates; liability and
other claims asserted against the Company; ability to attract and retain
qualified personnel; availability and terms of capital; loss of significant
contracts or reduction in revenues associated with major payer sources;
ability of customers to pay for services; business disruption due to
natural disasters or terrorist acts; ability to successfully integrate the
operations of acquisitions the Company may make and achieve expected
synergies and operational efficiencies within expected time-frames; effect
on liquidity of the Company's debt service requirements; a material shift
in utilization within capitated agreements; and changes in estimates and
judgments associated with critical accounting policies and estimates. For a
detailed discussion of certain of these and other factors that could cause
actual results to differ from those contained in this news release, please
refer to the Company's various filings with the Securities and Exchange
Commission (SEC), including the "Risk Factors" section contained in the
Company's annual report on Form 10-K for the year ended December 30, 2007.
Financial and Investor Contact: John R. Potapchuk
Media Contact: David Fluhrer
|SOURCE Gentiva Health Services, Inc.|
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