Amedisys, Inc. (Nasdaq: AMED), a nationwide provider of home health and hospice services, says it is closing 29 branches and consolidating another 25 care centers across the country.
The 29 branches consist of 23 home health and six hospice branches, while the consolidating 25 care centers include 21 home health and four hospice properties.
As a result of these actions, Amedisys expects to incur “non-recurring charges” in the range of $7 million to $9 million in the first quarter of 2014.
These charges will include lease terminations of approximately $2 million to $3 million, severance payments of approximately $3-$4 million and a non-cash other intangible impairment charge of approximately $2 million, the company said in a release Friday.
“This decision is part of our unwavering commitment to delivering shareholder value while supporting the patients entrusted to our care,” a company spokeswoman told SHN via email. “Our local teams at the affected care centers are working closely with the referring doctors, patients and patients’ loved ones to help bride them to other Amedisys care centers or assist them in finding another provider. During this process our absolute focus on quality care will stay at the forefront.”
One of the largest home health providers in the nation, Amedisys delivers personalized home care and hospice services to more than 360,000 patients each year in 39 states.
Following the various branch closings and consolidations, Amedisys will still run approximately 400 care centers nationwide, the company spokeswoman told SHN.
The company saw its full year 2013 earnings fall more than 83%, from $0.99 per diluted share in 2012, to $0.16 per diluted share in 2013.
Written by Jason Oliva