Home Care Affiliates' purchase by Atlanta-based Housecall Medical Resources has been completed. Terms weren't disclosed. Louisville, Ky.-based Res-Care, which operates 260 facilities for individuals with mental retardation and other developmental facilities, had been majority owner of Louisville-based Home Care Affiliates, holding a 68% equity stake. The remaining 32% was owned by Paul and Blair Gordon, Home Care Affiliates' chairman and president, respectively. The merged companies will operate more than 140 home healthcare agencies with annual revenues of about $200 million.
RehabCare Corp., a St. Louis-based provider of rehabilitation and subacute-care services, said net income for its fourth quarter ended Feb. 28 rose 45% to $1.4 million, or 32 cents per share, compared with $993,000, or 22 cents per share, in the year-ago period. Revenues climbed 22% to $23 million. For the year, RehabCare's net income rose 54% to $4.7 million, or $1.05 per share, compared with $3 million, or 88 cents per share, last year. Revenues increased 35% to $83 million. Last month the company officially changed its name to RehabCare Group to acknowledge its expanded subacute and outpatient services, executives said.
Moody's Investors Service has lowered its rating for Amherst (Ohio) Hospital to Caa from B. The rating affects $3.5 million in debt. Unable to attract managed-care contracts, the 71-bed community hospital has experienced large losses since 1990, the New York-based rating agency said. For fiscal 1993 and 1994, Amherst was not in compliance with several bond covenants. Through an affiliation with the parent corporation of EMH Regional Medical Center in Elyria, Ohio, the hospital has obtained a short-term cash infusion, but EMH is not obligated to pay debt service on Amherst's outstanding bonds. Moody's also lowered ratings on the following hospitals and health systems: Citizens General Hospital, New Kensington, Pa., to Baa1 from A on $27.9 million in debt; Genesee Hospital, Rochester, N.Y., to Baa from A on $35.6 million; Harris Methodist Health System, Fort Worth, Texas, to A1 from Aa on $97.7 million; Mercy Center for Health Care Services and Mercy Housing Corp., Aurora, Ill.; to Baa1 from A on $48.1 million.
Phamis reported a 371% increase in net income for the first quarter ended March 31 to $1.2 million, or 19 cents a share, from net income of $252,000, or 7 cents a share, in the year-ago quarter. Revenues rose 36% to $10.9 million. The Seattle-based healthcare information system vendor said the increases were driven by a 65% increase in systems and license sales, the company's most significant revenue category.
Mental Health Management reported a net loss of $149,000, or 4 cents per share, for the second quarter ended March 31, compared with net income of $176,000, or 5 cents per share, in the year-ago quarter. Revenues dropped 17% to $10.4 million. For the six-month period, the McLean, Va.-based psychiatric services company reported a net loss of $365,000, or 11 cents per share, compared with a net loss of $514,000, or 16 cents per share, in the year-ago period. Revenues dropped 17% to $20.3 million. Company officials said the results reflect a decline in inpatient revenues.
Ramsay Health Care, a New Orleans-based psychiatric hospital chain, has completed the spinoff of its managed behavioral healthcare division, Ramsay Managed Care. Shareholders in Ramsay Health Care received 0.26 of a share of Ramsay Managed Care for every share of Ramsay Health Care held. The HMO segment of Ramsay Managed Care will operate under the name Apex Healthcare. Apex has a license to operate an HMO in Louisiana. According to the company's prospectus, Ramsay Managed Care also intends to develop HMOs in Alabama and Florida.