Gentiva to divest six home healthcare branches to Loving Care Agency
Posted Feb 20 2009 5:01pm
By Datamonitor staff writer
Gentiva Health Services, a provider of comprehensive home health services, has entered into an asset purchase agreement with Andventure, doing business as Loving Care Agency and Links2Care, for the sale of six Gentiva branch offices in four cities that specialize in pediatric home healthcare and also provide adult home health aide services.
These offices comprise more than 80% of Gentiva's current pediatric care operations. Terms have not been disclosed. According to Gentiva, the transaction fits with its stated objective of increasing its focus on skilled home health services for geriatric patients. Under the terms of the transaction that Gentiva has announced, Loving Care Agency will acquire existing Gentiva branches in Phoenix, Arizona; Springfield, Massachusetts; Pittsburgh and State College, Pennsylvania. The transaction is expected to close in the first quarter, subject to all customary approvals.
Tony Strange, CEO of Gentiva, said: "This agreement with Loving Care, a leader in pediatric homecare services, will build on the high quality of care that these branches have provided. Our decision to migrate away from pediatric home healthcare is in keeping with the company's strategy of focusing on geriatric specialties.
"We believe our emphasis on providing value-added services to this population will translate into higher margins and returns that we can leverage to continue to grow our core home health business."