Home Health Business Quarterly: Option Care to acquire division of Mt. Sinai
Subject to approval by its board of directors and lenders, Option Care Inc. plans to acquire the home infusion and specialty pharmacy of Mount Sinai Hospital in New York City. The pharmacy serves approximately 350 infusion and 400 organ transplant patients in New York. Details of the agreement will be disclosed after the transaction is finalized. The acquisition will be Option Care’s first venture in the area.
Apria Healthcare Group Inc. (AHG) of Costa Mesa, CA, announced its fourth-quarter net revenue was $293 million, compared with $258 million in the 2000 fourth quarter. Net income was $20 million or 36 cents per share, compared with $15.3 million, or 28 cents per share for the 2000 quarter.
EBITDA was $67 million, compared with $62.5 million previously. Net revenue for 2001 was $1.1 billion, compared with $1 billion in 2000, a 12% increase. Net income for 2001 (including an extraordinary charge of $1.5 million) was $71.9 million or $1.29 per share. EBITDA was $261.7 million for 2001, compared with $243.5 million for 2000.
Baxter International Inc. (BAX) of Deerfield, IL, which develops biopharmaceuticals, vaccines, biosurgery products, and transfusion therapies; medication delivery systems; and renal therapy, reported fourth-quarter sales of $2.14 billion, compared with $1.93 billion in the 2000 period. Earnings for the quarter, excluding special charges, were $324 million or 53 cents per diluted share, compared with $270 million or 45 cents in the 2000 quarter. For the year, Baxter reported sales of $7.6 billion, compared with $6.9 billion in 2000. Earnings were $1.06 billion or $1.75 per diluted share, compared with $915 million or $1.53 per diluted share in 2000.
HCA Inc. (HCA) of Nashville, TN, which owns, manages, and operates hospitals and centers for ambulatory surgery, diagnostics, radiation, and oncology therapy, outpatient rehabilitation, and physical therapy, announced fourth-quarter revenues of $4.5 billion compared with $4.2 billion for the 2000 quarter.
Net income was $206 million or 39 cents per diluted share, compared with $21 million or 4 cents per diluted share in the same quarter previously. In the quarter, the company recorded an extraordinary charge of $17 million or 3 cents per diluted share related to the early elimination of debt.
For the year, revenue was $18 billion, compared with $16.7 billion for 2000. Net income (including gains, impairments, restructuring, investigation, and settlement and extraordinary charges) was $1.05 billion or $1.95 per diluted share, compared with $219 million or 39 cents per diluted share last year.
Lincare Holdings Inc. (LNCR) of Clearwater, FL, a home health provider of oxygen and other respiratory therapy services, announced 2001 fourth-quarter revenues of $215.6 million, compared with $189.3 million for the 2000 quarter. Net income for the quarter was $33.3 million or 30 cents per diluted share. Net operating income for the quarter, before special items totaling $10.3 million (6 cents per diluted share after taxes), was $39.7 million or 36 cents per diluted share, compared with $31.8 million or 30 cents per diluted share for the fourth quarter of 2000.
For the year, revenue was $812.4 million, compared with $702.5 million for 2000. Net income was $134.9 million or $1.23 per diluted share. Net operating income, before special items of $16.7 million (9 cents per diluted share) was $145.3 or $1.32 per diluted share, compared with $116.9 million or $1.08 per diluted share for the prior year.
Matria Healthcare Inc. (MATR) of Marietta, GA, which provides comprehensive disease management programs to health plans and employers for women’s health, diabetes, and respiratory disorders, reported fourth-quarter revenues of $69.7 million, compared with $56.4 million for the quarter in 2000. Net earnings available to common shareholders from continuing operations were $400,000 or 4 cents per diluted common share, compared with $1.2 million or 13 cents per diluted common share in the 2000 quarter.
For the year, revenue was $264 million, compared with $225.8 million for the year 2000. Net earnings available to common shareholders from continuing operations were $6.8 million or 76 cents per diluted common share, compared with $10.1 million or $1.05 per diluted common share for the previous year.
The company announced net earnings for the fourth quarter and year were lower than the company’s most recent forecast because the final, annual income tax provision was higher than previously estimated. The increase resulted from finalizing differences between Matria’s accounting and statutory taxable income.
New York Health Care Inc. (NYHC) of Brooklyn, a licensed home health care agency, announced for the year ended Dec. 31, 2001, net patient service revenue increased 17% to $34.3 million, compared with $29.4 million in 2000. Net income for the year was $352,886 or 7 cents per diluted share, compared with a net loss of $1.2 million or 33 cents per diluted share in 2000 (including a $1.5 million noncash charge for the write-down of intangible assets to their estimated fair value).
Respironics Inc. (RESP) of Pittsburgh, announced net sales for the fiscal year’s second quarter of $117.4 million, compared with $104.5 million for the same quarter last year. Domestic revenues were $94.1 million, a 12% increase over $84.1 million in the second quarter a year ago. International sales were $23.2 million, compared with $20.4 million in the prior year’s quarter.
Net income for the current quarter was $10 million or 32 cents per diluted share, compared with $8 million or 26 cents per share the same quarter previously. Earning per share for the quarter ending March 31, 2002, were predicted at 36 cents and between $1.31 and $1.32 for the fiscal year ending June 30, 2002. The company specializes in sleep disordered breathing, chronic obstructive pulmonary disease, asthma, infant care, and restrictive lung disorders for home care, hospital, and international markets.
Transworld Healthcare Inc. (TWH) of New York City, which provides nursing services, respiratory, and infusion therapies, and home medical equipment, announced consolidated revenue for the three months ended Dec. 31, 2001, was $61 million.
Operating income was $5.91 million, compared with a loss of $1,25 million in the same period previously, which included a $3.3 million in nonrecurring costs related to the wind down of the U.S. mail-order business and $745,000 related to the sale of Amcare Ltd. Net income for the quarter was $1,4 million or 8 cents per share, compared with a net loss of $2,8 million or 16 cents per share for the quarter last year.
CEO Philip Carter of Apria Healthcare Group Inc. in Lake Forest, CA, which provides home infusion and respiratory therapy, is leaving the company he turned around over the last four years. Apria posted fourth-quarter income of $20 million, compared with $15.3 million in the 2000 fourth quarter.
Carter will be replaced as CEO, and on the board of directors, by Lawrence Higby, president and COO since November 1997. Before joining the company, Higby was president and COO of Unocal Corp.’s 76 Products Co.
Robert C. Larson is a new director on the board of ARV Assisted Living Inc. of Costa Mesa, CA. Larson is chairman and managing principal of Lazard Freres Real Estate Investors LLC and managing director of Lazard Freres & Co., as well as nonexecutive chairman of United Dominion Realty Trust Inc.
Larson also is a director of Six Continents PLC and chairman of Larson Realty Group. He is replacing Jeffrey D. Koblentz, who resigned from the board.
CEO Patrick Kennedy and senior vice president of operations Chet Bradeen will take on the management responsibilities of Steven L. Vick, who in January resigned his positions as president and COO of Alterra Healthcare Corp. of Milwaukee. Both joined Alterra in 2001. Before then, Kennedy directed the international operations of Holiday Retirement Corp., an independent living retirement facilities operator. Bradeen was CEO/managing director of Sun Healthcare Asia Pacific.
Balanced Care Corp. of Mechanicsburg, PA, appointed Richard D. Richardson, John N. Beall, and R. Fredric Zullinger to its board of directors. Richardson, interim CEO of Balanced Care and president of CPL Management LLC, was chairman, CEO, and president of Renaissance Healthcare Corp. from 1989 to 1999.
Beall is CEO of Bell Hearing Aid Centers Inc., and was president of the Miracle-Ear division of Dahlberg Inc. Since 1985, Zullinger has been senior vice president and CFO of Consumers Financial Corp.
Emeritus Assisted Living of Seattle has named Thomas Stanley as general counsel to direct risk management, government relations, and public policy activities.
A graduate of the University of Idaho, Stanley’s experience includes representing senior housing providers in legal, regulatory, and legislative matters, including survey and inspection issues, administrative appeals, resident agreements, policy and procedure development, and real estate development.
Option Care Inc. of Bannockburn, IL, which provides pharmacy services to patients on behalf of managed care organizations and other third-party payers, has appointed Paul Mastrapa as senior vice president and CFO.
Mastrapa, the founder and CEO of AdvoLife, has worked at the senior level in financial management, business development, and operations of several health care service companies. He joined Option Care in 1991.
Stuart H. Altman, professor of national health policy at Brandeis University, in Waltham, MA, has been elected to the board of directors of Lincare Holdings Inc. of Clearwater, FL, which provide oxygen and other respiratory therapy services to patients in the home.
Altman, an economist who focuses on federal and state health care policy, is co-chair of the Governor/Legislative Health Care Task Force for Massachusetts, and was interim president of Brandeis from1990-1991 and deputy assistant secretary for planning and evaluation/health at the Department of Health Education & Welfare.
You have reached your article limit for the month. Subscribe now to access this article plus other member-only content.
- Award-winning Medical Content
- Latest Advances & Development in Medicine
- Unbiased Content