Move Increases Company's Focus on Skilled Geriatric Home Health Care
MELVILLE, N.Y., Feb. 17 /PRNewswire-FirstCall/ -- Gentiva Health Services, Inc. (Nasdaq: GTIV), a leading provider of comprehensive home health services, announced today that it has entered into an Asset Purchase Agreement with Andventure Inc., doing business as Loving Care Agency and Links2Care, for the sale of six Gentiva branch offices in four cities that specialize in pediatric home health care and also provide adult home health aide services. These offices comprise more than 80% of Gentiva's current pediatric care operations. Terms were not disclosed. The transaction fits strategically with Gentiva's stated objective of sharpening its focus on skilled home health services for geriatric patients.
Gentiva emphasized that, although it has determined that pediatric services will not be a core focus of the Company's offerings, the Company is committed to ensuring that ongoing pediatric patients and their families continue to receive the highest levels of care, consistent with Gentiva's reputation for quality service and clinical excellence.
"This agreement with Loving Care, a leader in pediatric homecare services, will build on the high quality of care that these branches have provided," said Tony Strange, CEO of Gentiva. "Our decision to migrate away from pediatric home health care is in keeping with the Company's strategy of focusing on geriatric specialties. We believe our emphasis on providing value-added services to this population will translate into higher margins and returns that we can leverage to continue to grow of our core home health business."
Under the terms of the transaction that Gentiva has announced, Loving Care Agency will acquire existing Gentiva branches in Phoenix, Arizona; Springfield, Massachusetts; Pittsburgh and State College, Pennsylvania. Loving Care is a leading provider of pediatric home care services with over 25 offices located in five states. The transaction is expected to close in the first quarter, subject to all customary approvals.
About Loving Care Agency
Loving Care Agency is a leading provider of home care services that enables children and adults to be cared for in their home environment that is warm, familiar, and nurturing. Loving Care Agency's highly qualified team clinicians (including nurses and home health aides) provide the highest quality care with compassion, commitment, and integrity. With over 25 offices located in five states, Loving Care Agency works with most major insurance plans, managed care organizations and state agencies. For more information about Loving Care Agency, please visit http://www.lovingcareagency.com.
About Gentiva Health Services, Inc.
Gentiva Health Services, Inc. is a leading provider of comprehensive home health services, delivering innovative, high quality care to patients across the United States. 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. 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, including the ability to access capital markets; 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 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 631-501-7035 firstname.lastname@example.org or Brandon Ballew 770-221-6700 email@example.com Media Contact: Jennifer Gery-Egan Brainerd Communicators 212-986-6667 firstname.lastname@example.org
|SOURCE Gentiva Health Services|
Copyright©2009 PR Newswire.
All rights reserved