Home Health & Hospice Week

Gentiva Health Services Inc. plans to acquire Harden Healthcare Inc.’s home health, hospice and community care businesses, the Atlanta-based chain says in a release. Gentiva will pay nearly $409 million for Austin, Texas-based Harden — $355 million in cash and $54 million in Gentiva common stock. Harden operates in 13 states with a large presence and Texas and other South central states, Gentiva says. Harden had about $476 million in revenue for those business lines in 2012, Gentiva says.

Gentiva will be minimizing its Medicare exposure as tough reimbursement times loom for the program (see related story, p. 266). The companies expect their combined revenue to total 49 percent home health, 41 percent hospice and 10 percent community care. "The percent of combined company Medicare revenues for the full-year 2012 would have been 72 percent, down from 86 percent for standalone Gentiva," the company notes.

Gentiva will become a preferred provider for Harden’s 49 skilled nursing and assisted living facilities in Texas, the company adds.

"I consider the Harden transaction a milestone in the continued Gentiva growth story," says Gentiva Executive Chairman Ron Windley.

"This acquisition expands Gentiva’s service offerings into the dual eligibles," says Gentiva CEO Tony Strange. The companies expect the transaction to close in the fourth quarter of this year.