Home Health Medicare Reductions Cut Gentiva’s Q4 Revenues by 5%
Gentiva Health Services, Inc. (NASDAQ: GTIV) saw its net income attributable to shareholders nearly double to $8.6 million, or $0.28 per diluted share, in the fourth quarter ended Dec. 31, 2012 compared to the year before.
Fourth quarter net revenues of $425 million were down 5% compared to the same period in 2011, which Gentiva said is largely due to the impact of “significant” home health Medicare rate reductions in 2012, as well as the sale or closure of branches during the third quarter of 2011.
“Given the softness in hospital and physician volumes that we have seen all year, I am very proud of these results,” said Gentiva CEO Tony Strange during the fourth quarter earnings call with analysts.
Home health revenues declined nearly 5% to $237.7 million during the fourth quarter compared to the same period in 2011. Despite the decrease, Strange remained optimistic during the earnings call.
“I am extremely pleased with the performance of our Home Health division overall,” he said. “They have grown their business in a difficult time, they have done a great job with expense management and most importantly, they have delivered consistent quality of care to the patients that we serve.”
Full-year income from continuing operations was $26.8 million, or $0.87 per diluted share.
Gentiva reported a total net revenue of $1.71 billion for the full year 2012, a 5% decrease from the previous year’s $1.8 billion.
The company has said that it will provide its 2013 guidance once final sequestration rules have been issued by the Centers for Medicare and Medicaid Services (CMS).
Written by Jason Oliva