Gentiva's 1Q profit rises on Medicare, commercial plans

MELVILLE, N.Y.—Home health care services company Gentiva Health Services Inc. said Thursday its first-quarter profit rose 13 percent on higher revenue from Medicare and commercial insurance.

The company earned $7.7 million, or 27 cents per share, compared with $6.8 million, or 24 cents per share, during the same period a year prior. Revenue rose 8 percent to $323.7 million from $299.5 million.

Analysts polled by Thomson Financial expected profit of 31 cents per share on revenue of $316.2 million.

Medicare revenue rose 6 percent to $159.7 million during the quarter, while commercial insurance revenue rose 16 percent to $128.7 million. Revenue from Medicaid fell to $35.4 million.

"While we were pleased with our revenue growth, some of the quarter's events had a short-term, moderating effect on profitability," Chairman and Chief Executive Ron Malone said in a statement.

He called the first quarter a transitional period as the company adapted to a new Medicare payment system and renewed a contract with CareCentrix.

Shares of Gentiva closed at $21.74 Wednesday.