ATLANTA, July 23 /PRNewswire-FirstCall/ -- Gentiva Health Services, Inc. (Nasdaq: GTIV), a leading provider of comprehensive home health services, announced today that it has signed a definitive agreement to purchase Magna Home Health, a part of the Rush Health System, located in central Mississippi and west central Alabama. Both states require a certificate of need (CON) by county to participate in the home health program.
With the addition of Magna's locations in Meridian, Mississippi, and Gilbertown, Alabama, Gentiva will expand its coverage with seven new CON counties. Gentiva already has a significant presence in these states under the Gilbert's brand in Mississippi and the Mid South brand in Alabama.
"This acquisition will solidify Gentiva's role as the pre-eminent home health provider in those two states," said Gentiva CEO and President Tony Strange. "We look forward to welcoming Magna's employees to the Gentiva family, as we have with our two other recent acquisitions. Not only do these mergers allow our company to provide a high standard of compassionate care to a larger patient population, but they demonstrate our appetite and ability to be competitive in a consolidation environment spurred by healthcare reform."
The purchase is expected to close in third quarter of this year and will be funded from Gentiva's existing cash reserves. The acquisition is not expected to have a material impact on Gentiva's financial position or results of operations in 2009.
About Gentiva Health Services, Inc.
Gentiva Health Services, Inc. is a leading provider of comprehensive home health services, delivering innovative, high quality care to patients across the United States. Gentiva is a single source for skilled nursing; physical, occupational, speech and neurorehabilitation services; hospice services; social work; nutrition; disease management education; help with daily living activities; respiratory therapy and home medical equipment; infusion therapy services; and other therapies and services. For more information, visit Gentiva's web site, http://www.gentiva.com, and its investor relations section at http://investors.gentiva.com. GTIV-G
Forward-Looking Statement
Certain statements contained in this news release, including, without limitation, statements containing the words "believes," "anticipates," "intends," "expects," "assumes," "trends" and similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon the Company's current plans, expectations and projections about future events.
