Below are a few highlights from Gentiva's presentation at Barclays Global Healthcare Conference held March 13 in Miami. EVP/CFO Eric Slusser spoke. A few items he touched upon include:
Expand referral base - Have 102 to 103 overlapping hospice-home health markets.
Harden deal - First half of year will focus on integrating Harden. 2nd half of year before look at any acquisition activities.
OneGentiva strategy - One general management structure covering home health, hospice and community care. Ultimately have one sales force calling on a single provider for all product lines. Took out a significant amount of division, area and regional management structure as part of this (reorganization).
Becoming more of a cluster focused business throughout U.S. Harden deal gave us increased presence in Texas.
Community Care - lever to expand to other states. Believe its a significant cross referral business. Every CC patient is a future home health or hospice patient.
Cross referrals are the name of the game within Gentiva. While this may be an opportunity for the company, it's also an area of risk if underhanded methods are used to meet "hard" corporate targets.
Harden deal allows us to delever.
Fascinating. It's hard to delever when writing down assets like Gentiva did in 2013.
We've been hit very hard in the first quarter by weather.
This is a preview for future earnings calls.
We add in our equity compensation, which is about $9-10 million per year.
Gentiva's Senior executives receive the lion's share of equity compensation.
Washington says they prefer to have a lower number of providers in this space.Medicare wants many things from hospice providers and things are clearly getting tougher.
We've had some rocky years. In this industry there's been a negative environment that's been out there in both the home health and hospice. We all hope that will subside over time and we'll get back to focusing on the patient need, patient care and the industry will start to climb again.
Wow, that's quite an admission and one on tape!