Erlanger Continues Phase Out Of ContinuCare With Sale of Home Health, Equipment Divisions

Monday, October 16, 2017

Erlanger Health System is continuing the phase out of its money-losing ContinuCare division, bringing in a national firm to run the home health and private duty nursing operations and selling its home medical equipment supply.

Erlanger earlier sold the ContinuCare-operated hospital pharmacy to CVS.

Britt Tabor, chief financial officer, said the home health side lost $782,000 last year and $721,000 the year before.

He said ContinuCare lost $917,000 last year and $700,000 the prior year on the home medical equipment.

ContinuCare is still over the Erlanger child care and fitness center, but CEO Kevin Spiegel said they may be assumed by the hospital. He said they will stay in place.

Erlanger will have a joint venture on the home health operation with the LHC group. There will be a board of directors with two members from Erlanger and two from LHC.

Erlanger will have a 25 percent stake in the operation.

LHC is a Louisiana-based national home health company with operations in 26 states.

LHC earlier made an offer of $3.5 million for the ContinuCare operation.

Officials said the new group will evaluate current employees to determine those who will be hired.

LHC "is positioned to provide a patient-centered continuum of care to reduce avoidable readmissions and improve clinical outcomes based on best practices," it was stated.

AeroCare Holdings made an offer of $2 million for the home medical equipment division. Officials said it has a current book value of $1,496,000.

The firm expects to hire substantially all of the current home medical equipment employees, it was stated.

AeroCare will continue to serve charity patients, officials said

 


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