Gentiva Buys Home Health Provider In Mississippi

Melville, NY (AHN)- Gentiva Health Services, Inc., a leading provider of home health services in the country, will acquire Home Health Care Affiliates, Inc. for $55 million in cash.

Funding for the purchase will be sourced from a combination of Gentiva's existing cash balances and borrowings from its revolving credit facility. Contract close is expected before the end of March.

HHCA operates home health and hospice agencies in Mississippi through its Gilbert's Home Health and Gilbert's Hospice Care brands.

The acquisition expands Gentiva's operations to 37 states. Gentiva CEO Rone Malone said, "This transaction is significant for Gentiva and consistent with our growth strategy. It moves us into new territory and boosts our competitive position in the southeast region."

HHCA has 500 employees and a business mix that is approximately 81 percent Medicare. It serves at 14 locations covering 50 of 82 counties in Mississippi. Gilbert's was founded in 1977, a pioneer in the state's home health operations and one of the largest.

Meanwhile, Gentiva operates its direct service delivery units through CareCentrix, which manages home health services for major managed care organizations.