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Gentiva(R) Health Services Announces First Quarter 2008 Results and Reaffirms Financial Outlook
Date:5/1/2008

rent business trends, our progress in adapting to the changed Medicare environment, and our commercial business opportunities. We expect 2008 to be another good year for Gentiva."

The Company noted the following first quarter performance highlights in its Home Health segment:

-- Home Health revenues were up 6% to $217.0 million versus the prior year

period, driven primarily by continuing growth from the Company's

expanding specialty programs, an increase in revenues from the

segment's commercial business as a result of the Company's ongoing

pricing strategy, and the inclusion of about $3 million in net revenues

from Home Health Care Affiliates, Inc., in Mississippi, which was

acquired by Gentiva on February 29, 2008.

-- Home Health operating contribution rose 4% to $31.2 million, with the

operating contribution margin at 14.4% in the first quarter of 2008

versus 14.6% in the prior year period. While the segment's operating

contribution has continued to benefit from the change in revenue mix to

higher-margin payers, results were affected by costs related primarily

to Gentiva's adoption of new PPS rules and recruitment initiatives to

grow capacity and productivity.

-- Revenues for Gentiva's Medicare PPS home health business increased more

than 7% versus the prior year period. Patient admissions remained

strong, although the current impact of new PPS rules contributed to a

revenue growth rate below those of recent quarters. Medicare Advantage

revenues in Home Health -- under which Gentiva is paid for patient

episodes similar to the rate structure and levels of Medicare PPS --

more than doubled during the first quarter versus the prior year

period. As a result, growth in episodic revenues (the combined

revenues from Medicare PPS and Medicare Advantage busin
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SOURCE Gentiva Health Services, Inc.
Copyright©2008 PR Newswire.
All rights reserved

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