MELVILLE, N.Y., Aug. 4 Gentiva Health Services, Inc.(Nasdaq: GTIV), the nation's leading provider of comprehensive home healthservices, plans to expand its home health services to three Certificate ofNeed (CON) counties surrounding Charleston, SC with the announcement todaythat it has acquired Hospice of Charleston.
Hospice of Charleston is a not-for-profit homecare company that provideshospice services, as well as home health, in the Lowcountry of South Carolina.Gentiva will expand its home health operations to include Berkeley, Charlestonand Dorchester Counties, rounding out its home health coverage in the state.
Gentiva will also fold the existing hospice operations into its currenthospice structure. Under the terms of the agreement, Hospice of Charlestonhas created a foundation to retain ownership of the building that houses its20-bed inpatient hospice facility, which Gentiva will operate under a leaseagreement.
The transaction is being funded from Gentiva's existing cash reserves.The acquisition is not expected to have a material impact on Gentiva'sfinancial position or results of operations in 2008.
"This transaction strengthens Gentiva's presence in South Carolina andgives us the opportunity to bring our clinical excellence and innovation toresidents of these three counties," said Gentiva President and COO TonyStrange. "It also continues Gentiva's focus on acquisitions that add to ourgeographic reach -- especially in CON locations -- and give us additionalplatforms for the expansion of our services, including our pioneeringspecialty programs. We look forward to serving Charleston-area patients with alevel of care and compassion that continues to differentiate Gentiva from thecompetition." The Company already provides home health and related servicesto residents of eight other South Carolina regions.
About Gentiva Health Services, Inc.
Gentiva Health Services, Inc. is the nation's leading provider ofcomprehensive home health services. The Company serves patients across theUnited States, through its direct service delivery units or throughCareCentrix(R), which manages home health services for major managed careorganizations. Gentiva is a single source for skilled nursing; physical,occupational, speech and neurorehabilitation services; hospice services;social work; nutrition; disease management education; help with daily livingactivities; respiratory therapy and home medical equipment; infusion therapyservices; and other therapies and services. Gentiva's revenues are generatedfrom federal and state government programs, commercial insurance andindividual consumers. For more information, visit Gentiva's web site,http://www.gentiva.com, and its investor relations section athttp://investors.gentiva.com. GTIV-G
Certain statements contained in this news release, including, withoutlimitation, statements containing the words "believes," "anticipates,""intends," "expects," "assumes," "trends" and similar expressions, constitute"forward-looking statements" within the meaning of the Private SecuritiesLitigation Reform Act of 1995. Forward-looking statements are based upon theCompany's current plans, expectations and projections about future events.However, such statements involve known and unknown risks, uncertainties andother factors that may cause the actual results, performance or achievementsof the Company to be materially different from any future results, performanceor achievements expressed or implied by such forward-looking statements. Thesefactors include, among others, the following: economic and businessconditions; demographic changes; changes in, or failure to comply with,existing governmental regulations; legislative proposals for healthcarereform; changes in Medicare and Medicaid reimbursement levels, includingchanges to the Medicare home health Prospective Payment