Home Health Business Quarterly
Companies in the News
InSource enters insurance alliance
InSource Health Services of Chatsworth, CA, a group purchasing organization owned by MedAssets.com, has entered a strategic alliance with health care industry insurance broker InLight Risk Management Inc.
The alliance will give InSource’s 9,300 member organizations access to affordable insurance programs designed for their changing needs.
The initial offering is a professional liability program accessible through InLight’s Health Care Risk Purchasing Group to leverage the buying power of InSource’s customer base. The insurance broker will develop a suite of insurance products to help InSource customers manage their risk more effectively and efficiently.
Invacare and Mallinckrodt sign deal
Invacare Corp. in Elyria, OH, which makes and distributes home medical products, and Mallinckrodt Inc. in St. Louis, a manufacturer and marketer of specialty medical products to sustain breathing and relieve pain, have formed a strategic alliance with a double aim.
Invacare will distribute Mallinckrodt’s oxygen therapy products, and Mallinckrodt will stop producing its Puritan Bennett 590 series oxygen concentrators, which Invacare will still support in North America. Transitioning this business over to Invacare and making it a distribution partner was driven by Mallinckrodt’s decision to refocus on developing technologically innovative products.
Option Care buys infusion pharmacy
Option Care Inc. in Bannockburn, IL, a provider of ancillary infusion therapy and high-tech pharmacy services, has acquired the infusion business of Peluso Investments Inc. in Hemet, CA, an Option Care franchise. The acquisition is consistent with Option Care’s strategy to purchase independent and franchise pharmacies in strategic markets, and it will leverage the core infrastructure and enhance revenues and profits in southern California.
Children’s unit signs with Cigna
Building Blocks Pediatric Home Health Services in Newport Beach, CA, a regional provider of high-tech pediatric home care, and Cigna Healthcare of California, a health benefits organization, have signed a provider agreement for the HMO product for southern California and a statewide contract for the preferred provider organization product.
Building Blocks will provide Cigna’s members in California with home health services designed for children, including skilled nursing services; in-home physical, occupational, and speech therapy; medical social services; infusion therapy; and some medical equipment.
CARF accredits network administrators
The Addictions Resource Network of Indiana Inc. in Indianapolis, and Kent County Community Mental Health in Grand Rapids, MI, are the first two networks to receive Commission of Accreditation of Rehabilitation Facilities (CARF) accreditation in network administration. Both behavioral health organizations were awarded accreditation for three years.
The Addictions Resource Network acts as a funding and compliance link between the state and 10 organizations that provide chemical dependency and compulsive gambling treatment. Kent County Community Mental Health manages the provider network for mental health services in that county, as well as the provider network for substance abuse services for a four-county region in Western Michigan.
Any organization with a formal agreement to manage or deliver rehabilitation with one or more service providers may apply for CARF accreditation in network administration. The providers’ services first must be accredited by a nationally recognized accrediting body.
Omnicare Inc. (OCR) in Covington, KY, reported revenues for the quarter of $491.3 million, compared with $474 million in 1999. EBITDA totaled $56.5 million, compared with $53.4 million previously. The company earned 18 cents per diluted share — excluding the impact of restructuring and related charges of $2.7 million after taxes, or 3 cents per diluted share, from previously announced productivity and consolidation initiatives. In 1999’s third quarter, Omnicare reported earning 16 cents per share, excluding restructuring charges and expenses totaling $389,000 or 1 cent per share. Net income this quarter was $16.2 million, compared with $14.3 million in the same period a year ago.
Option Care Inc. (OPTN) in Bannockburn, IL, announced third-quarter revenues increased 17% to $35.3 million. EBITDA rose 33% to $4.3 million. Net income grew 69% to $2.3 million or 18 cents per diluted share.
Lincare Holdings Inc. (LNCR) in Clearwater, FL, a home care provider of oxygen and respiratory therapy services, announced revenues for the third quarter were $186 million, a 24% increase over revenues of $150 million in 1999. Diluted earnings per share were 55 cents, an increase of 24% over the 45 cents diluted earnings per share for the previous year. Net income was $29.7 million compared with $26 million.
For the nine-month period, revenues were $513 million, a 20% increase over revenues of $429 million for the same period in 1999. Diluted earnings per share were $1.57, a 24% increase over the $1.26 earnings per share in 1999. Net income was $85 million, compared with $74 million.
National Healthcare Corp. (NCH) in Murfreesboro, TN, a long-term health care corporation, announced third-quarter revenues of $130 million, compared with $105.6 million last year.
Earnings were $2.5 million or 22 cents per share, compared with $1.8 million or 16 cents per share for the same period in 1999.
For the nine-month period, revenues totaled $361.7 million, compared with $321 million, for the same period in 1999. Earnings per share were 64 cents, compared with 55 cents previously. Net income was $7.4 million compared with $6.3 million. After the quarter’s end, NHC completed a two-year extension of its $19 million credit facility to Nov. 10, 2002.
New York Health Care (NYHC; BSE; NYH) in Brooklyn, NY, a licensed home health care agency, announced net revenues for the third quarter rose 20% to $7.5 million from $6.3 million the previous year.
The company reported net income for the quarter of $67,800, or 2 cents per diluted share, more than double the $27,500 or 1 cent per share for the same period in 1999.
For the first nine months of 2000, revenues increased 29% to $21.8 million from $16.9 million the previous year. Because of a one-time, noncash charge to operations of $1.5 million taken in the second quarter, the company reported a net loss of $1.4 million or 37 cents per diluted share for the nine months, compared with last year’s net loss of $223.5 million or 6 cents per diluted share.
Vencor Inc. (VCRIQ.OB) in Louisville, KY, a long-term healthcare services provider, announced revenues for the third quarter totaled $717 million, compared with $682 million in 1999. The company reported a net loss of $27 million or 38 cents per share, compared with a net loss of $42 million or 61 cents per share previously. The net loss included certain unusual items — the company recorded a write-off of $9 million related to an impaired investment and incurred costs of about $5 million for restructuring activities.
For the nine-month period, total revenues were about $2.1 billion. Vencor reported a net loss of $48 million or 69 cents per share, compared with a net loss of $107 million or $1.53 per share previously. The net loss included unusual transactions — a $5 million gain on the sale of a closed hospital, the investment write-off, and restructuring costs of $10 million. On Sept. 13, 1999, Vencor filed a voluntary petition for reorganization under Chapter 11 in U.S. Bankruptcy Court for the District of Delaware. It filed a plan for reorganization on Sept. 29, 2000, and a first amended plan and disclosure statement on Nov. 6. The court approved an extension for its debtor-in-possession financing until Jan. 31, 2001.
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