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November 7, 2006
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November 9, 2006(Posted Nov. 7, 2006)
Home nursing provider Amedisys Inc. said Thursday that it had expanded into Arizona with the purchase of a home health agency in Sun City.
A price was not disclosed for the agency, which had been owned by Sun Health, a nonprofit organization that provides health care services in the Phoenix area. Amedisys said it would use the agency to deliver home health services to Sun Health members.
Amedisys said the purchase would not materially affect its 2006 earnings. The agency is expected to add about $4.5 million in annual revenue, Amedisys said.
In trading on Nasdaq, Amedisys shares have traded in a 52-week range of $30.46 to $47.66.
Amedisys Inc., is headquartered in Baton Rouge, and has locations in Cutoff and Houma.
According to company officials, Amedisys entered into an agreement with Sun Health MediSun, an affiliate of Sun Health, to provide home health services to members of its Medicare Advantage plans. Amedisys will be reimbursed for these services at a rate equivalent to traditional Medicare rates, a news release reports.
“We are very happy to enter the Phoenix market through this acquisition, and to partner with Sun Health MediSun in providing home health services to its Medicare Advantage plan members,” said William F. Borne, chief executive officer of Amedisys, Inc. “With a solid record of service dating back 34 years, Sun Health’s home health agency has demonstrated a level of excellence that has earned it widespread respect, and we intend to continue to provide excellent service to Phoenix area residents in this same caring tradition.”
“This purchase is representative of our strategy to expand our current area of operation through selective acquisitions,” he added. “We continuously assess many similar opportunities in order to identify those that most appropriately fit our profile and acquisition criteria.”
The acquisition and the agreement with Sun Health MediSun are not expected to add materially to Amedisys’ earnings in 2006, according to company officials.
Amedisys, Inc., posted a record quarterly net income for the third quarter ending Sept. 30, according to company officials.
The company reported record quarterly net income of $10.6 million, or $0.64 per diluted share, a 33 percent increase in earnings per share over the same quarter last year, Borne announced recently. He said the earnings were achieved on record quarterly net service revenue of $137 million. Net service revenue increased by 22 percent when compared with the $112.2 million reported for the comparable period in the prior year, he noted.
Amedisys reported net income of $7.8 million, or $0.48 per diluted share, for the quarter ending Sept. 30, 2005. The diluted weighted average number of shares outstanding approximated 16.4 million for the quarter ended Sept. 30, 2006, and 16.1 million for the comparable period of 2005.
“We are pleased with our improved operating results for the third quarter of 2006 and the continuing momentum we are experiencing in many key areas of our business,” Borne said in a release. “We believe that our continuing strong internal growth, start ups and selective acquisitions combined with ongoing efficiencies will drive earnings and enhance shareholder returns.”
