Industry giant buys home care company Firm's 140 employees will be retained, Gentiva says

Debbie Kelley

Jul. 18, 2008 (McClatchy-Tribune Regional News delivered by Newstex) -- The recent acquisition of Physicians Home Health Care by the largest publicly traded company in the industry likely will lead to expanded medical services for Colorado Springs patients who receive care in their homes, according to a spokesman for Gentiva Health Services Inc. (NASDAQ:GTIV)

Melville, N.Y.-based Gentiva bought all three Colorado offices of Physicians Home Health Care last month for $12 million in cash, said spokesman David Fluhrer. Physicians Home Health Care, founded by a group of Colorado Springs doctors in 1984, has locations in Colorado Springs, Denver and Pueblo that serve 12 counties and make about 55,000 visits annually, he said.

The buyout marks Gentiva's entry to the Colorado market.

"We look for places that have a senior population that can use our services, and we elevate the care," Fluhrer said.

Though no specific plans have been mapped out for the local office at 3650 Rebecca Lane, the new owner is considering adding three specialized programs -- addressing balance problems, heart and lung diseases and orthopedic therapy for joint replacement patients -- to its lineup of services. Current services include skilled nursing and medical care in patients' homes; physical, occupational and speech therapies; disease management; dietitian services; and wound care.

Two pilot programs also could make their way to Gentiva's Colorado offices, Fluhrer said: a rehabilitation service for stroke and Alzheimer's patients and a senior care program, which addresses multiple health concerns of aging seniors.

With the change in ownership, Sonya Neumann has been named area vice president of operations for Colorado. Neumann, a registered nurse, had been chief executive officer of Physicians Home Health. In May, she became president of the Home Care Association of Colorado.

All 140 Colorado employees have been asked to remain on staff and keep a local focus, Fluhrer said, although they are asked to follow Gentiva's standardized care protocols.

"Home health is very much a local business. It's important for us to understand the community's health care needs and work to address those," Fluhrer said.

Gentiva also is retaining the Physicians Home Health Care name throughout Colorado because it has strong brand recognition in the market, he said.

Local employees will have access to benefits that include online continuing education and one-on-one training.

"There's a national nursing shortage and it's diffcult to get physical therapists, so we create a professional environment for employees to encourage people to want to work for us instead of the agency down the block," Fluhrer said.

The Colorado acquisition extends Gentiva's operations to 350 offices in 38 states. The company serves 500,000 patients a year, Fluhrer said. Net revenues for 2007 were about $9.4 million, 83 percent of which came from Medicare reimbursements.

With a shift from inpatient to outpatient services, the home health care industry has ballooned from 1,100 providers in the nation in 1963 to 25,000 today, according to the Colorado Department of Public Health and Environment. Colorado has 140 Medicare- and Medicaid-certified home care businesses, up from 129 in 2004, but is one of only five states in the country that does not license home health agencies.

Performance data on home health companies is available at www.medicare.gov, under comparisons.

CONTACT THE WRITER: 636-0235 or debbie.kelley@gazette.com

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