Apria won’t renew Gentiva CareCentrix contract
January 26, 2004
LAKE FOREST, Calif. - Apria will not renew its contract to provide DME and respiratory therapy services for Gentiva CareCentrix, a provider network that offers a full-range of home care services to managed care organizations.
The companies have been operating under an interim arrangement since the former contract expired on December 31, 2003.
"Apria Healthcare appreciates the relationship we have had with Gentiva over the past few years,"said Lawrence M. Higby, President and Chief Executive Officer. "We are disappointed that we have not been able to reach a mutually acceptable agreement to continue our relationship, but feel that we must act in the best interest of our shareholders, employees and referral sources."Apria expects this decision to reduce its 2004 revenue growth rate to the 5-7% range, Higby said.
"Despite the lower rate of revenue growth, however, we expect no material effect on 2004 earnings per share, which should increase in the range of 7-9% compared to 2003, consistent with recent consensus estimates, adjusted to reflect recent Medicare reimbursement reductions."As part of the contract withdrawal, Apria will work closely with Gentiva to ensure continuity of care for existing patients, and will also accept new patients for an interim period to facilitate the transition.