Gentiva Health Services (NASDAQ: GTIV) reported a 3% decrease in net earnings to $435.7 million in the quarter ended March 31, citing the impact of closed and sold branches during the quarter. The company reported income from continuing operations attributable to shareholders of $4.8 million, or $0.16 per diluted share, compared to $13.0 million, or $0.42 per diluted share in the first quarter of 2011.
The company, which is the largest provider of home health and hospice services in the United States, said net revenue would have shown an increase, had it not been from the sale or closure of several branches. Net revenues included home health episodic revenues of $210.6 million, a 4% decline year over year due to the 2012 Medicare reimbursement rate reduction, the company said.
Hospice revenues remained relatively flat, and accounted for 45% of revenue.
Gentiva reaffirmed its 2012 outlook with full year net revenue projections in the range of $1.70 billion to $1.76 billion and income from continuing operations attributable to shareholders in the range of $1.00 to $1.20 per diluted share.
Written by Elizabeth Ecker