Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - GENTIVA HEALTH SERVICES INC | d8k.htm |
 Investor Presentation
September 2011
Exhibit 99.1 |
 Forward-Looking Statements
2
This presentation should be considered forward-looking and is subject to various risk factors and
uncertainties. For more information on those risk factors, please refer to Gentiva's various
filings with the Securities and Exchange Commission (SEC), including the Company’s annual
report on Form 10-K. This presentation is also produced in compliance with the SEC's
Regulation FD, which provides guidelines on all disclosures by publicly traded companies.
The viewer or listener should not place undue reliance on forward-looking statements, which speak
only as of the date indicated in this presentation. The Company is not obligated to publicly
release any revisions to forward-looking statements to reflect unforeseen or other events
after such date. |
 Agenda
Company Overview
Legislative & Reimbursement Environment
Current Business Priorities
Financial Update
3 |
 Company Overview
Leading U.S. provider of home healthcare
and hospice services
Revenue Mix*
* Revenue mix calculated based on Q211 results.
Average patient age
Average daily census
Locations:
Home Health
Hospice
States
FT employees
79
85K
478
312
166
42
15K
43%
57%
4 |
 Growth in U.S. Population of 65+
10,000 U.S. citizens become eligible for Medicare each day.
This trend is expected to continue for the next 20 years.
5
Sources: 2010 - U.S. Census Bureau. 2030 estimate - Administration on Aging, Dept. of
Health & Human Services. |
 6
Benefits of Home Healthcare
Medicare Part A & Part B Average Payment Per Day
(2)
(1)
Source: U.S. Census Bureau projections.
(2)
Source: CMS HCIS data files for 2006. Hospital data includes inpatient PPS and
non-PPS. Home Health day calculated based on 60-day episode. Lower
cost per day vs. hospitals and SNFs $1,479
$135
$303
$50
Hospice
Home Health |
 7
•
Partnership for Quality Home
Health active in Washington
•
Meetings with CMS to discuss
changes to new Face-to-Face
requirements
•
Drafting new legislation targeting
industry fraud as substitute for
other approaches
Legislative Update |
 8
Proposed rule issued July 2011
•
3.35% decrease including
market basket/wage index
updates and case-mix
reduction
•
Removes two hypertension
codes and lowers payments
for high-
therapy episodes
Effective January 1, 2012
Home Health
2012 Medicare Reimbursement Update
Final rule issued July 2011
•
2.5% net increase
approved for 2012
Effective October 1, 2011
Potential 2012 Impact
Combined 2012 EBITDA impact estimated to be $40-45M,
excluding any revisions to current proposed rule
Hospice |
 Current Business Priorities
Actions to mitigate potential 2012 Medicare rate cut
Grow volumes
Reduce non-essential costs
Divest non-core assets
Seek legislative change
9 |
 Financial Update
10 |
 11
Asset Sale Update
•
Announced sale of CareCentrix Holdings Inc.
on August 26, 2011
•
Sold remaining equity stake
•
Continue to hold $25M note receivable with
10% interest
Net cash flow of $65-70M expected
Net cash flow of $65-70M expected |
 12
Cost Reduction Update
•
Business reviews underway focused on the following:
–
Limiting discretionary spending
–
Right-sizing business to reflect near-term growth trends
–
Achieving operating efficiencies at branch and support levels
•
Will provide a more detailed update in Q4 when
assessment is complete |
 13
Debt & Leverage Update
(in millions, except leverage ratio)
As of:
June 30, 2011
December 31, 2010
Debt
Total Debt
$1,028.1
$1,051.6
Cash & Equivalents
$98.1
$104.8
Net Debt
$930.0
$946.8
Leverage
Ratio
Reported
3.93x
Maximum Allowed
4.75x |
 14
•
In compliance today
–
Q211 leverage ratio of 3.93x
vs. 4.75x requirement
•
Expect to be in compliance through
year-end
–
Asset sales, cost reductions,
and strong cash position offset
potential Q411 impact of home
health rate cut
Q2
Q4
4.75x
4.5x
Debt Update
Covenant Waiver Considerations
•
Considerations
–
Final Medicare home health
rules
–
Mitigating actions taken by GTIV
–
Growth environment
•
Working closely with banks should
need arise for waiver
2012
2011
Q1
4.5x
Q4
3.75x |
 15
Investment Summary
Significant long-term growth opportunities
Strong financial track record
Diversified revenue mix
Positioned to play consolidator role
Experienced management team |
 |