Moody's Investors Service will review its Baa3 rating of HealthSouth Corp.'s senior bank debt for a possible downgrade to noninvestment-grade status. The New York-based credit-rating agency said last week that it's concerned about working capital constraints at the Birmingham, Ala.-based rehabilitation and ambulatory surgery provider. The review wasn't triggered by a specific development, but HealthSouth hasn't met expected targets for reducing the number of days outstanding in its accounts receivable, Moody's analyst Diana Lee said.
Manor Care, Toledo, Ohio, said last week that it will buy the 39% of In Home Health that it doesn't already own for $7.2 million. Manor Care has been the Minnetonka, Minn.-based company's largest shareholder since 1995 and recently increased its ownership to 61% from 41%. In the six months ended March 31, In Home Health earned $522,000, or 9 cents per share, on revenue of $47.1 million. It has 39 locations in 15 states. Manor Care operates 425 long-term-care facilities.
National HealthCare Corp., Murfreesboro, Tenn., said last week that it's considering divesting its 22 Florida nursing homes because its insurer has canceled liability coverage of the homes. Nursing homes in Florida have been lobbying the state Legislature to change the state's tort laws. According to the Florida Health Care Association, the laws boost the per-bed cost of a lawsuit in Florida to an average of more than $6,000, compared with a national average of $809.
National Home Health Care Corp., Scarsdale, N.Y., earlier this month agreed to buy Health Force Owned, a home health provider based in Cincinnati. Terms were not disclosed. National Home, which earned $777,000, or 15 cents per share, on revenue of $15.3 million in the third quarter ended April 30, operates in Connecticut, New Jersey and New York. Health Force operates two locations in New Jersey and has announced the closure of its New York offices.