Hospice Business Note

The New York Times reports today that home health provider Gentiva Health Services is buying hospice provider Odyssey HealthCare in a deal that is expected to close in the third quarter of 2010.

The companies said the deal would create a hospice care provider with an average daily patient census of about 14,000 and operations in 30 states. They anticipate the combination will create a company with more than $1.8 billion in annual revenue. Gentiva expects the acquisition to add to adjusted earnings per share within the first 12 months following closing.

“The two companies share similar geography between Gentiva’s home health operations and Odyssey’s hospice operations, with very little overlap between the two companies’ hospice programs,” the chief executive and president of Gentiva, H. Anthony Strange said in a statement.