MELVILLE, N.Y., Aug. 4 /PRNewswire/ -- Gentiva Health Services, Inc. , the nation's leading provider of comprehensive home health services, plans to expand its home health services to three Certificate of Need (CON) counties surrounding Charleston, SC with the announcement today that it has acquired Hospice of Charleston.
Hospice of Charleston is a not-for-profit homecare company that provides hospice services, as well as home health, in the Lowcountry of South Carolina. Gentiva will expand its home health operations to include Berkeley, Charleston and Dorchester Counties, rounding out its home health coverage in the state.
Gentiva will also fold the existing hospice operations into its current hospice structure. Under the terms of the agreement, Hospice of Charleston has created a foundation to retain ownership of the building that houses its 20-bed inpatient hospice facility, which Gentiva will operate under a lease agreement.
The transaction is being funded from Gentiva's existing cash reserves. The acquisition is not expected to have a material impact on Gentiva's financial position or results of operations in 2008.
"This transaction strengthens Gentiva's presence in South Carolina and gives us the opportunity to bring our clinical excellence and innovation to residents of these three counties," said Gentiva President and COO Tony Strange. "It also continues Gentiva's focus on acquisitions that add to our geographic reach -- especially in CON locations -- and give us additional platforms for the expansion of our services, including our pioneering specialty programs. We look forward to serving Charleston-area patients with a level of care and compassion that continues to differentiate Gentiva from the competition." The Company already provides home health and related services to residents of eight other South Carolina regions.
About Gentiva Health Services, Inc.
Gentiva Health Services, Inc. is the nation's leading provider of comprehensive home health 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
Forward-Looking Statement
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; demographic changes; changes in, or failure to comply with, existing governmental regulations; legislative proposals for healthcare reform; changes in Medicare and Medicaid reimbursement levels, including changes to the Medicare home health Prospective Payment System effective January 1, 2008; 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
