Gentiva's second quarter investor call showed hospice revenue to be lower year over year.
Hospice revenues were $172.3 million in the second quarter, down approximately 4% compared to $179.2 million in the second quarter of 2013.This glaring drop came despite taking over 69 Harden hospices last fall. Nine months ago I wrote:
Gentiva CEO Tony Strange beat the "hospice marketing equals home health marketing" drum for nearly two years on investor calls. When hospice volumes didn't go up as predicted, Strange finally admitted they weren't the same. Yet, the OneGentiva reorganization includes:
"Each region will have a single-sales organization focused on the delivery of a unified comprehensive service offering to our referral sources. However, the product delivery systems for the 3 business lines will continue to function separately as they do today."
If Gentiva hadn't unlocked the key to hospice marketing as a stand alone group, how will it do so in a unified offering?
It didn't. OneGentiva's third aim was to improve hospice revenues. Wall Street is still waiting. Longtime hospice staff shake their heads.
Gentiva yet again went in the opposite direction on deleveraging.
Our consolidated leverage ratio for the quarter was approximately 5.9 under our credit agreement.However, Tony Strange was excited about cost reductions imposed:
I think David and the operating team -- division team here, Jeff and the 5 presidents in the field, I think they have done yeoman's work in getting out ahead of the costs on the cost side of One Gentiva. So I think from a cost perspective, I would tell you that we are where we expected to be or even further along from where we expected to be.Those cost reductions included critical office staff and clinicians, at least in our hospice. Our service pales in many ways from where we were.
Anonymous (from Gentiva)