Gentiva Health Services, Inc. (NASDAQ: GTIV) today reported total net revenues of $415.6 million, a decrease of 5% compared to $435.7 million for the quarter ended March 31, 2012.
The company also reported a net loss attributable to its shareholders of $207.2 million, or $6.73 per diluted share, for the quarter.
While total net revenues were negatively impacted by regulatory challenges such as Medicare rate reductions and the initial effects of sequestration, Gentiva’s retained a positive outlook.
“I am pleased with our overall results this quarter, which met our expectations despite a continued challenging reimbursement and regulatory environment,” said CEO Tony Strange.
Gentiva’s hospice revenues declined compared to year-ago levels, dropping 8% to $179.5 million and representing 43% of total net revenues in the first quarter of 2013.
Net revenues included home health episodic revenues of $207.4 million. While these revenues represent a decline of 2% compared to $210.6 million in the first quarter of 2012, the company anticipates future growth on the horizon in both of these business lines.
“Home health continues to perform very well, and I remain confident that we’re taking the right long-term steps to improve our hospice growth,” said Strange.
While there is still uncertainty in Washington related to the economy, the nation’s debt and overall healthcare spending, the company is certain that demographic shifts will increase demand for home care services.
“Home health and hospice offer service that are clinically sophisticated, cost effective and preferred by the patient,” said Strange. “And while there continues to be uncertainty, companies with size and scale are well positioned to create opportunities out of that uncertainty.”
Gentiva reaffirmed its full year 2013 outlook, expecting net revenue to be in the range of $1.69 billion to $1.73 billion. The company’s outlook also includes adjusted income attributable to shareholders in the expected range of $0.90 to $1.10 on a diluted per share basis.
Written by Jason Oliva