Yesterday, Gentiva Health Services Inc. (GTIV) announced the completion of its acquisition of Rush Home Care Inc., which operates as Magna Home Health. While the financial terms of the transaction were undisclosed, the company announced that it funded the deal with its existing cash reserves.
The agreement to purchase Magna Home Health, a part of the Rush Health System, was signed by Gentiva in July this year. The addition of Magna’s locations in Meridian, Mississippi and Gilbertown, Alabama should enable Gentiva to expand its coverage in seven new certificate of need (CON) counties to participate in the delivery of home health services.
We believe this deal will consolidate Gentiva’s position as the largest provider of comprehensive home healthcare services in the U.S. and enable them to serve a wider patient population. The transaction is not expected to affect Gentiva’s 2009 operations materially.
Gentiva, which derives its revenues from commercial insurance, federal and state government programs and individual consumers, has successfully grown by acquisition. It recently purchased the assets of a homecare operation from the Nicholas County Commission on behalf of the Nicholas County Board of Health in West Virginia . It continues to be on the lookout for profitable acquisitions.
The Gentiva family includes more than a dozen companies, including Carolina, Donelson, Emerald Coast, Gentiva, Gilbert’s, Healthfield, Heritage, Horizon, Hospice of Charleston, Lazarus House, Medical, Mid South, Ogeechee, Physicians, Tar Heel, Total Care and Wiregrass.
The company competes mainly with Amedisys Inc. (AMED), American Homepatient Inc. and the privately held Apria Healthcare Group Inc. in the Home Health Care industry.
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