Gentiva’s Q3 Revenue Lags, Launches New Cohesive Operating Model
Gentiva (NASDAQ:GTIV) reported revenues of $410.5 million for the third quarter ended Sept. 30, 2013, a 3.3% decrease from the previous year that the company blamed on the home health Medicare rate reduction and sequestration.
Home health revenue stayed flat for the quarter at $206.9 million compared to $206.4 million in the same quarter of 2012. Meanwhile, hospice revenues declined 7.5% to $175.6 million.
However, net income attributable to Gentiva shareholders improved to $3.7 million, or $0.12 per share, compared to a $523,000 loss, or $(0.02) per share, the year before.
During the company’s earnings call, Tony Strange, CEO, president and director of Gentiva, announced a redefined operating model that aims for a unified, comprehensive and cost-effective solution to referral sources.
“The One Gentiva operating model allows us to better position our businesses by integrating our home health, hospice and community care businesses under a general management structure at a regional level,” Strange said. “While the genesis behind One Gentiva is to unify our business lines for our patients and referral sources, the outcome has also produced a more efficient operating model.”
The company expects the new operating model will reduce filed operating and sales leadership positions by approximately 100 full-time equivalents.
“I’m proud to say that we’ve done so with minimal disruptions to the business,” said Strange. “Through the elimination of all of the paper recordkeeping, as well as the reduction in wasteful time and expensive driving to and from the office to turn in paperwork, we’re optimistic that the system will drive efficiencies within home health, as well as provide the foundation for which to create a single-patient record throughout One Gentiva.”
Gentiva also announced it has closed the acquisition of Harden Healthcare Holdings, Inc. in October, with the company’s home health, hospice, and community care business results to be included in Gentiva’s financial results starting in the fourth quarter.
View Gentiva’s third quarter operating results.
Written by Alyssa Gerace