Ihs

Fast-growing Integrated Health Services Inc. is laying off between 50 and 100 people at its Owings Mills headquarters this week as part of what company officials term a restructuring.Senior Vice President Marc B. Levin said yesterday that the reduction does not reflect any trouble at the health services company, which specializes in low-cost alternatives to hospitals.Integrated Health Services has reported record earnings and revenues for 18 consecutive quarters."The impetus . . . is to realign the corporate office operations" to decentralize decision-making and reflect Integrated's emphasis on "regionalized health-care networks," Mr. Levin said.

Integrated Health Services Inc. of Hunt Valley said yesterday that it has added two out-of-state nursing homes to its rapidly growing business.In separate moves, IHS said, it bought Silvercrest, a 120-bed nursing home in Las Vegas and leased and will manage Driftwood on the Ashley, a 160-bed nursing home in Charleston, S.C.IHS, one of the fastest-growing companies in long-term nursing care, said it will convert the two homes from traditional acute nursing...

Integrated Health Services Inc. of Owings Mills said yesterday that it will take over the long-term rehabilitation services of NovaCare Inc. of King of Prussia, Pa., for an undisclosed amount.The sale comes in spite of industry concerns about the profitability of long-term physical and occupational rehabilitation, a sector of the health care business that has been squeezed by Medicare cutbacks."Although there's been a dramatic reduction in revenues and earnings in contract rehabilitation businesses throughout the country, we believe it is still a viable business," said Marc B. Levin, executive vice president of IHS.IHS is betting that by becoming a bigger player in contract rehabilitation, it will develop enough of a market presence to make money.

Integrated Health Services Inc. said yesterday that net income rose 6.25 percent in its second quarter, in line with analysts' expectations, as the Owings Mills company increased its flexibility to fund further acquisitions in the home health services industry.Profit before extraordinary items for the quarter ended June 30 rose to $15.3 million, or 56 cents per share, from $14.4 million, or 54 cents, in 1995.IHS recorded an extraordinary expense of $1.4 million for the early extinguishment of debt this quarter.

Trans Healthcare Inc., a growing nursing home operator, has signed a deal to buy Integrated Health Services Inc. of Sparks in a transaction that would close the book on a local company that grew in a few years into an industry giant, then plunged even more rapidly into bankruptcy. Trans Healthcare, which operates 94 nursing homes, would triple in size if a bankruptcy court approves the deal. It would take over operation of about 180 IHS homes in the deal, and would move its headquarters from Camp Hill, Pa., to the IHS campus in northern Baltimore County.

Dr. Robert N. Elkins moved boldly to build Integrated Health Services, the Sparks-based nursing home chain, in barely more than a decade. Now, within a few days, Elkins will be officially leaving the company he founded, in return for a severance package valued at nearly $55 million. He could not be reached for comment. From a start-up, IHS grew to a company with 1,500 nursing homes and other facilities in 47 states, and $3 billion a year in revenue. Along the way, Elkins became known not only for his business strategy, but also for his lavish bonuses - $3.25 million in 1997 - and perks such as his corporate jet. But the company's fortunes quickly went sour in 1998, as Medicare, on which it depended for a third of revenue, cut its payments.

Trying to boost its stock price, Integrated Health Services Inc. will sell or spin off its RoTech division, which analysts said might be worth more than the current market value of the entire company.IHS, with headquarters in Owings Mills, said it will explore strategic options to get cash out of RoTech, which provides home respiratory services and durable medical equipment.Robert M. Wasserman, vice president for research at Southeast Research Partners in Boca Raton, Fla., said the two most likely options are to sell RoTech in its entirety, most likely to a company specializing in leveraged buyouts, or to do an initial public offering of a minority interest in RoTech, allowing IHS to raise cash while retaining majority ownership.

The U.S. Bankruptcy Court in Wilmington, Del., has delayed a hearing on objections to the $50 million-plus golden parachute package proposed for Dr. Robert N. Elkins, outgoing chairman and chief executive officer of the now-bankrupt Integrated Health Services Inc. Three parties have filed objections to the package, and the court, which is handling IHS' Chapter 11 bankruptcy, was to hear from them in court today. But lawyers familiar with the case said the IHS creditors committee needs more time to review the objections.

Integrated Health Services Inc., the bankrupt health care provider, has received court permission to hire a broker and sell more than half of its corporate campus in Sparks. If the sale goes as planned, the land could bring top-tier office development to Baltimore County and an infusion of cash to the troubled company struggling to reorganize. IHS sought the U.S. Bankruptcy Court's permission to hire TriAlliance Commercial Real Estate Services LLC of Towson to market the property, which the health care provider bought in 1997 for $6.2 million.

Integrated Health Services Inc., the struggling Sparks-based health care provider, yesterday reported a third-quarter loss, and revealed it is not in compliance with certain financial covenants with its bank credit line.The company also disclosed it did not to make an interest payment of approximately $17 million that was due yesterday. Earlier this month, IHS said it elected not to make a $7.7 million interest payment on $150 million in bonds.Analysts said IHS is likely to file for bankruptcy soon.