National home care provider Amedisys, Inc. (Nasdaq: AMED) says it will close and consolidate a total of 54 locations across the country.
The locations consist of 23 home health and six hospice branches that will close, while consolidating 25 other home health and hospice care centers nationwide.
As a result of these actions, Amedisys expects to incur “non-recurring charges” in the range of $7 million to $9 million in the first quarter of 2014.
These charges will include lease terminations of approximately $2 million to $3 million, severance payments of approximately $3-$4 million and a non-cash other intangible impairment charge of approximately $2 million, the company said in a release Friday.
The company, which saw its full year 2013 earnings fall more than 83% from $0.99 per diluted share in 2012, to $0.16 per diluted share in 2013, did not give a specific reason for the branch closings and consolidations.
“This decision is part of our unwavering commitment to delivering shareholder value while supporting the patients entrusted to our care,” a company spokeswoman told HHCN via email. “Our local teams at the affected care centers are working closely with the referring doctors, patients and patients’ loved ones to help bride them to other Amedisys care centers or assist them in finding another provider. During this process our absolute focus on quality care will stay at the forefront.”
One of the largest home health providers in the nation, Amedisys delivers personalized home care and hospice services to more than 360,000 patients each year in 39 states.
Following the various branch closings and consolidations, Amedisys will still run approximately 400 care centers nationwide, the company spokeswoman told HHCN.
Written by Jason Oliva