Apria Healthcare and Vitas Healthcare announce intention to merge.COSTA MESA, CA--(HealthWire)--June 6, 1996--Jeremy M. Jones, Chairman and Chief Executive Officer of Apria Healthcare Group Inc. (NYSE NYSE See: New York Stock Exchange :AHG AHG antihemophilic globulin (coagulation factor VIII). AHG abbr. antihemophilic globulin AHG antihemophilic globulin (clotting factor VIII). ) and the Rev. Hugh A. Westbrook, Chairman and Chief Executive Officer of Miami, FL-based Vitas Healthcare Corp., announced today that they have signed a letter of intent in which a subsidiary of Apria Healthcare will merge with Vitas Healthcare in a pooling of interest Noun 1. pooling of interest - an accounting method used in the merging of companies; the balance sheets are added together item by item; this method is tax-free transaction. The parties expect to enter into a definitive merger agreement within the next two weeks and close in mid-summer. As America's largest hospice provider with $230 million in fiscal 1995 revenues, Vitas will become a wholly-owned subsidiary of Apria Healthcare. Based on the closing price of Apria common stock on June 5, and including the assumption of debt, the transaction values Vitas at $212 million. The Company expects the transaction to be accretive to earnings in 1997. Regarding the merger, Jeremy M. Jones remarked, "This confirms Apria Healthcare's strategy to expand its service offering to include clinical services that may be integrated into the healthcare continuum for people who require individual and specific plans of clinical care. Appropriate intervention by experienced hospice professionals, on an outpatient or inpatient bases, helps people achieve quality of life benefits during the last six months of life while reducing overall healthcare costs." Vitas and Apria currently serve patients with very similar diagnoses, including cancer, congestive heart failure congestive heart failure, inability of the heart to expel sufficient blood to keep pace with the metabolic demands of the body. In the healthy individual the heart can tolerate large increases of workload for a considerable length of time. , chronic obstructive pulmonary disease chronic obstructive pulmonary disease n. Abbr. COPD A chronic lung disease, such as asthma or emphysema, in which breathing becomes slowed or forced. (COPD COPD chronic obstructive pulmonary disease. COPD abbr. chronic obstructive pulmonary disease Chronic obstructive pulmonary disease (COPD) ) and AIDS. Similar intervention for patients with other medical diagnoses, using Vitas' clinical patient management skills, will allow Apria to enhance the benefits provided to its patients, referring physicians, managed care organizations (MCOs) and other customers. Hugh Westbrook, a co-founder of Vitas, commented, "This merger is aimed at fulfilling our mission of making hospice available to greater numbers of patients and families. We believe that Apria's focus on and commitment to quality, process and systems is very compatible with the ongoing vision of Vitas. It gives the Company a partner with the clinical, managed care sales and marketing, and human resources expertise required to continue to lead and expand in this exciting industry." To date, Apria's services have included infusion therapy, respiratory therapy respiratory therapy Medical profession concerned with assisting the respiratory function of individuals who have severe lung disorders. Practices include suctioning to clear secretions from the airway, use of aerosol mists (sometimes medicated) or gases to ease breathing, , and related home medical equipment for people with acute and chronic illnesses, many of which lead to terminal illness. Vitas' palliative care palliative care (paˑ·lē·ā·tiv kerˑ), n an approach to health care that is concerned primarily with attending to physical and emotional comfort rather services include hospice nursing, physician and social work services, chaplaincy, bereavement Bereavement Definition Bereavement refers to the period of mourning and grief following the death of a beloved person or animal. The English word bereavement counseling, medications and supplies. "Increasingly, managed care organizations with Medicare risk programs and growing memberships are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. integrated alternate site systems to ensure `seamless' care that includes hospice as a vital component of the care plan," Jones added. "We anticipate that Vitas' systems expertise and patient management models will further enhance our ability to clinically manage patients in the most appropriate manner and care setting, which adds value for our MCO MCO Managed care organization, see there and traditional customers." "One in seven Americans who died last year received hospice services," concluded Jones. "With the number of hospice patients served growing at approximately 20% per year, we believe hospice services are a very good fit with Apria's strategic goals and represent an expansion of our core services and clinical competencies." Founded in 1978, Vitas provides care for adult and pediatric patients with a wide range of life-limiting medical problems, including cancer, cardiovascular disease, COPD, Alzheimers, AIDS and liver disease. Regional hospice operations are located in California, Florida, Texas, Illinois, Pennsylvania and Ohio. Costa Mesa, CA-based April Healthcare provides and/or manages comprehensive integrated homecare services which include home infusion, respiratory therapy, home medical equipment, women's healthcare, nursing and coordinated care through 350 locations serving patients in 49 states. CONTACT: Apria Healthcare, Irvine Lawrence H. Smallen, 714/427-4935 Susan J. Lewis, 714/427-2416 or Vitas Healthcare, Miami Mark Ohlendorf, 305/374-4143 |
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