episodic basis) was 11% year-over-year, despite the adverse impact of
Gentiva reported the following results in its CareCentrix and Other
Related Services segments:
-- Revenues for CareCentrix rose more than 18% to $77.8 million as this
segment continued to benefit from its servicing of increased
managed care membership enrollments and new business.
-- CareCentrix' operating contribution declined by 9% to $6.3 million due
primarily to expected short-term increases in utilization under
capitated agreements, selected pricing changes resulting from a recent
contract extension with CIGNA HealthCare, and investments in
CareCentrix' expanded sales force. The Company anticipates additional
business opportunities for CareCentrix during the remainder of 2008,
including the continuing shift of CIGNA's membership from capitated to
fee-for-service plans, and potential benefits from CIGNA's
first quarter acquisition of Great-West Healthcare.
-- Net revenues and operating contribution for the smaller Other Related
Services segment, which consists of hospice, respiratory and home
medical equipment, infusion therapy and consulting, were slightly below
the prior year period as the Company continued to make investments and
operational changes aimed at improving the segment's financial
During the first quarter of 2008, Gentiva used $43 million of cash and incurred an additional $12 million in debt to fund the Home Health Care Affiliates acquisition. Despite the resulting increase in long-term debt to $322 million at March 30, 2008, Gentiva's leverage ratio remains below 3.0 and this has allowed the Company to maintain lower interest margins on its revolving credit and term loan borrowings as compared to the prior year.
Gentiva also reaffirmed its
|SOURCE Gentiva Health Services, Inc.|
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