Industry Notes:
STOCKHOLDER PROPOSES TO BUY AMERICAN HOMEPATIENT
Published on Thu Feb 09, 2006
Board will consider alternate strategies to enhance value.
The worsening Medicare reimbursement environment has contributed to Highland Capital Management's offer to buy Brentwood, TN-based American HomePatient Inc.
Dallas, TX-based Highland, an American HomePatient stockholder, has become increasingly disappointed with the company's performance and sees challenges ahead for the company, reports the Nashville Business Journal.
American HomePatient has confirmed that its board of directors received a proposal to acquire all of the company's outstanding shares for $3.40 per share in cash from Highland, according to a release.
"While we remain focused on executing our operating strategy for the company, our board of directors has been and continues to be willing to consider alternative strategies to enhance stockholder value," Joseph Furlong, American HomePatient CEO, says in the release
American HomePatient has 265 centers in 34 states. Its product and service offerings include respiratory services, infusion therapy, parenteral and enteral nutrition, and home medical equipment. • Gentiva Health Services Inc. has missed analysts' earnings estimates for the quarter ended Jan. 1. Melville, NY-based Gentiva reported net income of $6.3 million on revenues of $222.0 million, compared to a $6.9 million profit on $225.5 million in revenues for the same period in the previous year.
The decline was due in part to reduced business for Gentiva's managed care division, CareCentrix, the company says in a release. Gentiva announced last year that its contract with insurer CIGNA Healthcare was scaled back.
The earnings figures also include $3.6 million in revenue that came from a $5.5 million favorable decision from the Provider Reimbursement Review Board, the national home nursing giant notes.
Gentiva also has closed its previously announ-ced blockbuster acquisition of The Healthfield Group Inc. for $454 million in cash and stock. The acquisition of Healthfield, which has 130 locations primarily in southeastern states, will bring Gentiva's annual revenues to more than $1.1 billion, the company notes.
"Gentiva has also become one of the nation's top 10 hospice providers" through the purchase, the company says. Healthfield also includes durable medical and respiratory equipment services and infusion therapy services. • The home care industry may see legislative conditions improve when House Ways and Means Committee Chair Bill Thomas (R-CA) retires after this session--or things could just get worse. Thomas, who has been a strong supporter of copays for home health agency services and competitive bidding for DME, has announced he won't seek reelection when his term expires this fall.
But Thomas' replacement--either Republican or Democrat--next session could push even harsher Medicare payment policies for home care providers, experts observe. One best-case scenario might be for House Ways and Means Health Subcommittee Chair Nancy Johnson (R-CT) to succeed Thomas. Johnson, who replaced Thomas as the subcommittee chair, has supported home care-friendly policies in the [...]
