Companies in the News
Companies in the News
Auxi Health receives $34 million in financing
Auxi Health (Franklin, TN) has received $34 million in financing, most recently $22 million from Fleet Capital (Chicago.) The company also received $12.1 million from the sale of subordinated debt to American Capital Strategies (Bethesda, MD). Auxi plans to use the money to complete acquisitions of its eight founding companies. It is also using part of the funds to expand its presence in Texas, reported the Nashville Business Journal.
Caretenders posts FY98 loss
Caretenders (Louisville, KY) reported FY98 ended March 31 revenues of $97.1 million, compared to FY97 revenues of $95.2 million. The company saw a net loss in FY98 of $6.2 million, $2 per share, compared to a net income in FY97 of $1.4 million, 45 cents per share.
In 4Q98, the company saw revenues of $24.1 million, down 11.8% from 4Q97 revenues of $27.4 million. The company recorded a net loss in 4Q98 of $1.4 million, 44 cents per share, compared to a net income in 4Q97 of $294,175, 9 cents per share.
Caretenders said the lower results were due to the impact of Medicare reimbursement changes, including the interim payment system.
In addition, Caretenders said last week in a not timely filing with the Securities and Exchange Commission (Washington) that it is in the process of renegotiating its primary credit agreement and completing its audited financial statements. This information is needed in order to make accurate disclosures throughout the company’s 10-K filing, Caretenders said.
Continental signs for revolving credit line
Continental Home Healthcare (Vancouver, British Columbia) has signed a letter of intent with DVI Business Credit for a revolving line of credit with a total commitment of $3 million. The revolving line of credit contemplated will be advanced to the company based on eligible accounts receivable as defined in the proposed lending agreement. Final approval of the agreement is subject to DVI’s due diligence and credit committee approval.
Coram sues Aetna
Coram Healthcare (Denver) said last week it has sued Aetna U.S. Healthcare (Blue Bell, PA) in the United District Court for the Eastern District of Pennsylvania. The complaint includes claims against Aetna for fraud, misrepresentation, breach of contract, and rescission relating to the master agreement between the two companies, effective May 1, 1998, for ancilliary network management services through Coram’s Resource Network division. Coram provided its notice of termination of the agreement effective late last week.
Coram stated in its complaint that Aetna wrongfully induced Coram to enter into the agreement by, among other things, misrepresenting and understating the utilization of home care services by its own enrollees. As further stated by Coram, utilization has been substantially higher than Aetna represented at the commencement of the agreement.
In the lawsuit, Coram seeks compensatory and punitive damages in excess of $50 million. Based on recent communications with Aetna, Coram said, the company expects that Aetna will deny Coram’s claims and might pursue its own alleged claims of $30 million or more.
Prior to filing the complaint, Coram had been negotiating with Aetna over the disputes, Coram said. During the discussions, Coram said, and without any disclosure to Coram, Aetna filed its own complaint against Coram in the Court of Common Pleas in Montgomery County, PA, setting forth claims that for specific performance, injunctive relief, and declaratory relief.
Under the agreement between the companies, which was anticipated to be five years, Coram managed and provided home healthcare services for more than 2 million Aetna enrollees in eight states for a fixed monthly fee per enrollee. Although Coram has provided notice of termination of the agreement, the company said it intends to continue to arrange for the provision of the home care services through the network of home care providers through July.
HealthCor sells TX operation
HealthCor Holdings (Dallas) sold its Medicare and home healthcare operation in Beaumont, TX, to Unique Dawning, a subsidiary of ComTech Consolidation Group, in exchange for cash. This nursing operation generated about $2 million in revenues in FY98.
IHS’ home care unit changes name
Integrated Health Services’ (IHS; Owings Mills, MD) IHS Home Care division now operates under the name Soleus Healthcare Services of North Florida. The change came after IHS sold its 69 home care offices in 22 states to Medshares/IHS Acquisition Inc., reported the St. Petersburg Times. Soleus is a subsidiary of Medshares. TBN of Tennessee is managing the Soleus home care offices, according to Robert Leech, senior vice president of TBN.
Invacare celebrates first day on NYSE
Invacare’s (Elyria, OH) Chairman/CEO A. Malachi Mixon told CNBC that the company, which began trading on the New York Stock Exchange in late June, derives 50% of its revenue from wheelchairs. The rest comes from nonacute care products like respiratory devices and home care beds, reported Dow Jones News Service. "Wheelchairs of course are our flagship product," Mixon said in the interview. "But many people don’t realize that we are the world leader in the manufacturing and distribution of medical products outside the hospital."
To celebrate the company’s first day of trading on the NYSE, the Dallas Wheelchair Mavericks of the National Wheelchair Basketball Association gave a wheelchair basketball demonstration sponsored by Invacare outside the NYSE.
In addition, Invacare has made a cash tender offer to acquire Scandinavian Mobility International A/S for $14.58 per share. The total value of the transaction at this price is $131.3 million. The offer was made to qualified shareholders of Scandinavian Mobility and is open until Aug. 11.
Kelly plans for dividend reimbursement
Kelly Services (Troy, MI) has initiated a new plan to benefit current and potential Kelly shareholders. The plan is a dividend reinvestment and direct stock purchase plan. The plan was announced recently at the company’s annual shareholders meeting and has been approved by the Securities and Exchange Commission (Washington).
Mallinckrodt receives accreditation
Mallinckrodt (St. Louis) has received accreditation from the American Nurses Credentialing Center’s (ANCC) Commission on Accreditation through February 2005. This accreditation enables the company to run continuing education programs for nurses and respiratory therapists. Mallinckrodt first received accreditation from ANCC in 1993.
Nursefinders sells 10 franchises
Nursefinders (Arlington, TX) has sold 10 new franchise locations in the past six months. New franchise sales, the company said, include Richmond, Norfolk, and Roanoke, VA; Milwaukee; Knoxville, TN; Waterloo, IA; western Iowa; and three locations in the greater Boston area. The recent sales will increase the Nursefinders system to 61 franchise units and 126 total units in the United States.
PSAI sells adult staffing agencies
Pediatric Services of America (PSAI; Norcross, GA) said last week it has sold its mainly adult staffing agencies in Philadelphia, Springfield, VA, Cherry Hill, NJ, and Baltimore to Medical Staffing Network (Coral Springs, FL). Joseph Sansone, PSAI chairman/president, said the sale of the services "are a part of our strategic initiative to focus on our core competencies in the pediatric home healthcare market."
Shands closes Homosassa, FL, office
Shands HealthCare (Gainesville, FL) closed its Homosassa, FL, office last month as part of its restructuring, following the transfer of 10 of its offices to Flagship Healthcare (Miami Lakes, FL). The company is still offering home health services in the Gainesville area.
Sunrise launches new Web site
Sunrise Medical (Carlsbad, CA) has launched a new e-business Web site for its U.S. home medical equipment dealers. The new site, www.sunlinkweb.com, is the first in the industry, Sunrise said, to offer detailed order tracking, inventory availability, serial number history, pricing, and invoicing information over the Web.
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