MELVILLE, N.Y., Oct. 27 /PRNewswire-FirstCall/ -- Gentiva Health Services, Inc. , the nation’s largest provider of comprehensive home health services, announced today that its CareCentrix(R) Ancillary Care Benefit Management unit has signed a three-year national homecare contract with CIGNA HealthCare comprising coordination and delivery of homecare services to CIGNA members through January 31, 2009.
Gentiva will provide additional commentary and answer questions regarding the contract in a special conference call for investors and other interested parties Friday, October 28, 2005 at 9:00 a.m. ET. Details regarding call participation are included below.
The agreement amends and lengthens the national relationship between the two companies. Under the new contract, CareCentrix will continue to coordinate the provision of direct home nursing and related services through the CareCentrix network of credentialed, third-party providers or through Gentiva’s own home healthcare locations, as well as home infusion services and certain other specialty medical equipment solely through the CareCentrix network. Among the specialty equipment to be provided to CIGNA HealthCare members through CareCentrix are insulin pumps, wound suction devices and other products. As Gentiva announced on October 24, CareCentrix is ending its coordination of respiratory therapy and certain durable medical equipment services to CIGNA HealthCare members as of January 31, 2006.
Based on changes to the companies’ relationship announced this week, Gentiva now estimates that its fiscal 2006 revenues from CIGNA HealthCare could be up to $40 million lower than revenues anticipated from the CIGNA contract in fiscal 2005.
Instructions for participation in tomorrow’s special Gentiva conference call follow:
* Event: Gentiva Health Services’ Special Conference Call * Date and Time: Friday, October 28, 2005, 9:00 a.m. ET * Instructions: United States, Canada and international: Call (612) 332-0718 * Web cast URL: http://www.gentiva.com/investor/events.asp * Replay: A replay of the call will be available on October 28, beginning at 11:45 a.m. ET, and will remain available continuously through November 3. To listen to a replay of the call, dial (800) 475-6701 and enter the following code at the prompt: 801875. To listen to a replay of the call outside the United States, dial (320) 365-3844 and enter the same code following the prompt. To access the web cast archive, log onto http://www.gentiva.com/investor/events.asp. About Gentiva Health Services, Inc.
Gentiva Health Services, Inc. is the nation’s largest provider of comprehensive home health services. Gentiva serves patients through more than 350 direct service delivery units within more than 250 locations in 35 states, and through CareCentrix(R), which manages home healthcare services for many major managed care organizations throughout the United States and delivers them in all 50 states through a network of more than 2,500 third-party provider locations, as well as Gentiva locations. The Company is a single source for skilled nursing; physical, occupational, speech and neurorehabilitation services; social work; nutrition; disease management education; and help with daily living activities, as well as other therapies and services. Gentiva’s revenues are generated from commercial insurance, federal and state government programs and individual consumers. For more information, visit Gentiva’s web site, http://www.gentiva.com, and its investor relations section at http://www.gentiva.com/investor.
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 Gentiva Health Services, Inc.'s (“the Company”) current plans, expectations and projections about future events. However, such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, general economic and business conditions; demographic changes; changes in, or failure to comply with, existing governmental regulations; legislative proposals for health care reform; changes in Medicare and Medicaid reimbursement levels; effects of competition in the markets the Company operates in; liability and other claims asserted against the Company; ability to attract and retain qualified personnel; availability and terms of capital; loss of significant contracts or reduction in revenues associated with major payer sources; ability of customers to pay for services; business disruption due to natural disasters or terrorist acts; a material shift in utilization within capitated agreements; and changes in estimates and judgments associated with critical accounting policies. For a detailed discussion of these and other factors that could cause actual results to differ from those contained in this news release, please refer to the Company’s various filings with the Securities and Exchange Commission (SEC), including the “risk factors” section contained in the Company’s annual report on Form 10-K, as amended, for the year ended January 2, 2005.
Financial and Investor Contact: John R. Potapchuk 631-501-7035 john.potapchuk@gentiva.com Media Contact: David Fluhrer 631-501-7102 516-857-7231 david.fluhrer@gentiva.com
Gentiva Health Services, Inc.
CONTACT: Financial and Investor, John R. Potapchuk, +1-631-501-7035,john.potapchuk@gentiva.com, or Media, David Fluhrer, +1-631-501-7102, or+1-516-857-7231, david.fluhrer@gentiva.com
