Integrated Health adds 3 companies Acquirer is 'trying to build networks in our service areas'

September 12, 1996|By M. William Salganik | M. William Salganik,SUN STAFF

Moving to plug holes in its regional health networks, Integrated Health Services of Owings Mills yesterday announced three acquisitions: an infusion therapy provider in Miami, a home health care company in Memphis, Tenn., and a rehabilitation therapy provider in North Carolina.

The moves are part of Integrated's strategy of "trying to build networks in our service areas" that provide a full range of services for patients getting out of a hospital, said Marc B. Levin, executive vice president.

These networks include nursing homes and subacute-care beds -- where care is more intensive than in a nursing home but less than in a hospital -- as well as a range of home services.

"Given the macro trends in health care, I think Integrated's strategy makes a lot of sense," said D. Scott Mackesy, an analyst with Dean Witter Reynolds in New York. "With the growth of managed care, particularly in the Medicare population, to the extent you are a company with a wide array of services, you're in a position to win contracts to develop a good patient base."

Integrated is buying:

Edgewater Home Infusion Services, in Miami, with about $6 million in annual revenue. In addition to providing home drug infusion therapy, the company owns a pharmacy.

Extendicare of Tennessee, in Memphis, with about $4 million in annual revenue.

J. H. Rehab Associates, in Mooresville, N.C., with annual revenue of about $4 million. It operates a freestanding rehabilitation clinic and manages outpatient clinics for hospitals in North Carolina and South Carolina.

Terms of the acquisitions were not disclosed. Integrated received $125 million in cash (as well as $25 million in stock) from the sale in July of its pharmacy division to Capstone Pharmacy Services. Integrated said at the time that it would use the capital for acquisitions.

"We are working on additional home health acquisitions," Levin said. Currently, he said, Integrated gets about $130 million in annual revenue -- roughly 10 percent of the company's total -- from home health.

Home health care is important to Integrated, Levin continued, not just because of the revenue. "When you're trying to control costs through a patient's whole episode of care, home health is very important at the front end because it can delay or avoid a hospitalization," he said.

And, once a patient is admitted to a hospital, subacute unit or nursing home, Levin said, the availability of home care can make earlier discharges possible.

Integrated stock closed yesterday at $25.125 a share, up $1.125.

Pub Date: 9/12/96

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