Home-healthcare provider Gentiva Health Services, Melville, N.Y., said it has signed a definitive agreement to acquire Home Health Care Affiliates and some of its subsidiaries and affiliates for $55 million in cash. With corporate offices in Austin, Texas, and Memphis, Tenn., Home Health Care Affiliates operates home-health and hospice agencies in Mississippi under the names Gilberts Home Health and Gilberts Hospice Care. Founded in 1977, Gilberts provides services in 14 locations throughout Mississippi, a state that requires a certificate of need for home health.
Gilberts annualized unaudited net revenue for 2007 was about $37 million, of which about $33 million was related to home-health services and $4 million came from hospice care, Gentiva said in a company news release. It also said Medicare makes up about 81% of the companys payer mix.
Expected to close in the first quarter, the deal would extend Gentivas presence to 37 states and is expected to be accretive to Gentivas 2008 results. It would also boost Gentivas competitive position in the Southeast, Ron Malone, Gentivas chairman and chief executive officer, said in the release.
Gentiva serves patients at 400 owned and operated direct-service delivery units or through CareCentrix, which manages home-health services for major managed-care organizations. -- by Jessica Zigmond
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