Integrated Health buys 5 health care companies

November 15, 1994|By John Fairhall | John Fairhall,Sun Staff Writer

Broadening its foundation for growth, Owings Mills-based Integrated Health Services Inc. announced yesterday that it has acquired five companies to expand services to patients.

Integrated Health specializes in providing post-hospital, "subacute" care to patients who no longer need to be in hospitals but generally require more care than nursing homes provide. The company operates 192 facilities, mostly converted nursing homes, with more than 25,000 beds in 30 states.

The five acquisitions, which include a home health care service, will increase Integrated Health's ability to provide services even after patients return home.

"After the patient is discharged from the hospital we want to be able to take care of that patient until full recovery," said Marc Levin, senior vice president of Integrated Health.

The acquisitions also increase the number of patients in Integrated Health's rapidly growing network and expand its revenues base.

"These businesses are currently treating other patients that will be brought into our network," Mr. Levin said. "In addition, they will [offer] additional services we can provide to the managed-care industry, HMOs and insurance companies and other payers."

Kurt Funderburg, an analyst with Ferris, Baker Watts Inc., said the acquisitions are a "step in the direction of allowing" Integrated Health to build a "continuum of care system" for patients. This is the strategy that Dr. Robert N. Elkins, chairman and chief executive of Integrated Health, has "been talking about the last year or so," Mr. Funderburg said.

The company's stock closed yesterday at $37.75, down 37.5 cents. Integrated Health recently announced record third-quarter operating earnings of $9.9 million, on revenues of $177 million.

The five companies, acquired over the last 60 days, have combined annual revenues of $61 million. Three provide pharmaceutical services to skilled nursing facilities: Amcare, Inc., Pharmaceutical Dose Service Inc. and Pikes Peak Pharmacy. The largest, Amcare, has revenues of $30 million and serves home-care patients as well as nursing facilities in Pennsylvania, New Jersey, Minnesota and Southern California. Pharmaceutical Dose operates in Louisiana; Pikes Pike serves Colorado.

CareTeam is a home health care company serving Texas, North Carolina, Kansas, Missouri, New Mexico and Arizona. Pace Therapy, the other company acquired, provides rehabilitation services, including physical, occupational and speech therapy, to 61 facilities in California and Nevada.

Integrated Health used stock and cash to buy the five businesses, said Mr. Levin, who would not provide further details.

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