MELVILLE, N.Y., March 3 /PRNewswire-FirstCall/ -- Gentiva Health Services, Inc. (Nasdaq: GTIV), the nation's leading provider of comprehensive home health services, announced today that it has completed its acquisition of 100% of the ownership interest in Home Health Care Affiliates, Inc. and certain of its subsidiaries and affiliates (HHCA) for $55 million in cash, subject to post-closing adjustments.
The transaction, which extends Gentiva's home health operations to 37 states, has been funded from a combination of Gentiva's existing cash balances and borrowings from its revolving credit facility. HHCA operates home health and hospice agencies in Mississippi under the brand names of Gilbert's Home Health and Gilbert's Hospice Care. The transaction will be accretive to Gentiva's fiscal 2008 results.
"We extend a warm welcome to all Gilbert's employees and anticipate a smooth transition in delivering our services to home health and hospice patients in the state," said Gentiva Chairman and CEO Ron Malone. "We also look forward to the possibility of bringing our groundbreaking specialty home health programs and other Gentiva services to this region as yet another way to differentiate us from the competition and build strong relationships with physicians and payers."
Annualized 2007 unaudited net revenues for the Gilbert's operations were approximately $37 million, of which approximately $33 million related to home health services and $4 million to hospice services. Gilbert's Home Health and Gilbert's Hospice Care, with approximately 500 employees and a business mix that is approximately 81% Medicare, deliver their services through 14 locations covering 50 of 82 counties in Mississippi, a Certificate of Need state for home health. Gilbert's was founded in 1977 as one of the state's earliest home health operations and is currently one of its largest.
About Gentiva Health Services, Inc.
Gentiva Health Services, Inc. is the nation's leading provider of comprehensive home health and related 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. Such factors include, among others: the
Company's ability to successfully execute its growth strategy; the impact
of significant indebtedness on the Company's liquidity and its ability to
meet the requirements of its creditors; general 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; 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
implementation of new business systems, or due to natural disasters or
terrorist acts; 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 31, 2006.
Financial and Investor Contact: John R. Potapchuk
Media Contact: David Fluhrer
|SOURCE Gentiva Health Services, Inc.|
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