March 20 Home healthcare provider Gentiva Health
Services Inc forecast 2013 earnings well below
analysts' expectations, citing changes in Medicare reimbursement
rates and budget cuts.
Gentiva, which operates in the home health and hospice
segment, said it expects the changes to reduce its adjusted
earnings from continuing operations by 60 cents per share and
its net revenue by about $30 million.
The company now expects 2013 adjusted earnings from
continuing operations between 90 cents and $1.10 per share on
net revenue of $1.69 billion to $1.73 billion.
Analysts on average expected earnings of $1.26 per share on
revenue of $1.72 billion, according to Thomson Reuters I/B/E/S.
President Barack Obama's healthcare law imposes
reimbursement cuts on the home healthcare industry. Companies
such as Amedisys Inc, Almost Family Inc and
LHC Group Inc have struggled to offset the impact of
changes in Medicare reimbursement rates.
"Against another difficult reimbursement year, our focus in
2013 is squarely on continuing to drive strong mid-single digit
home health growth and on returning our hospice division to
consistent growth to offset the impact of these cuts," Chief
Executive Tony Strange said in a statement.
Medicare is the federal health insurance program for the
elderly and disabled.
Gentiva's shares were down 1 percent at $12.51 in premarket
trading on Wednesday morning.