“Together we would create a unique platform to 'Continue the Care' by delivering patient-centered care across the full spectrum—from hospital to outpatient facility to the patient's home," Kindred CEO Paul Diaz said in the news release. "The combined company's national footprint would allow it to deliver enhanced coordinated care, helping to transition patients home more quickly and provide more patient-centric, cost-effective treatment.”
Kindred informed Gentiva of its latest takeover intentions May 5, the company said. Initial contact between the companies occurred in April, with Gentiva telling Kindred April 28 it would not accept its first offer for a merger, according to a letter from senior Gentiva executives to Kindred which Kindred released Thursday.
“Having considered your revised proposal, our Board continues to believe that our long-term strategy as a stand-alone company will generate substantially more value to our shareholders. Accordingly, at this time, we are not interested in pursuing the transaction you are proposing,” read the latest Gentiva letter from its Executive Chairman Rodney Windley and lead director Victor Ganzi about the $14 a share offer.
Kindred earlier this month reported net income of $8 million in the first quarter compared with $3.1 million in the same period last year. Revenue increased 2% to $1.3 billion.
The company has launched a strategy to place more emphasis on home health and rehabilitation care while shifting away from skilled nursing.
Atlanta-based Gentiva provides home health and hospice services to more than 350,000 patients in more than 420 locations across the country, according to its website.
Gentiva shares closed at $8.54 Wednesday but were up to $13.51 in pre-market activity, likely because of the takeover announcement.
This month Gentiva reported net income of $314,000 on revenue of $487.5 million in revenue for the quarter that ended March 30, compared with a loss of $207 million on $415.6 million in revenue in the same period last year.
Follow John N. Frank on Twitter: @MHJFrank