In Home Health, Minnetonka, Minn. reported a 23 percent increase in third-quarter net income for the quarter ended June 30. Net income was $1.1 million, or 9 cents a share, compared with $936,000, or 5 cents a share, for the same period a year ago. Revenue was $20.2 million, down from $22.9 million a year ago. HomeHealth credited the increase to a $1.6 million reduction in expenses and improved profitability at some branches.

Integrated Health Services, Owings Mills, Md., posted a net loss of $4.6 million, or 10 cents a share, for its second quarter ended June 30.

That figure compares with net income of $43.7 million, or 80 cents a share, for the same period a year ago. Revenue was $625.4 million, down 16 percent from $740.9 in the second quarter of 1998. Officials said Medicare reimbursement structures for both nursing homes and home health agencies affected the results.

Option Care, Bannockburn, Ill. announced second-quarter financial results that slightly topped analysts' expectations and reversed the losses posted for the same period last year.

Income for the quarter ended June 30 increased to $1.1 million, or 9 cents per share, compared with a loss of $585,000, or 5 cents per share, for the same period in 1998. Income for the six-month period rose to $1.8 million, or 16 cents per share, from $280,000, or 3 cents per share, for the same period in the prior year.

The company reported same-store growth of 18 percent for the second quarter and 15 percent for the six-month period. This internal growth was offset by revenue loss from the discontinuation of an unprofitable capitation contract in the second half of 1998, the company said.

The net result was $29.4 million in revenue for the fiscal 1999 second quarter, a 4 percent increase from the $28.3 million in the prior-year period. For the six-month period, revenue increased to $58.4 million, up 6 percent from nearly $55 million reported for the same period in 1998.

The results surpassed the company's internal goals, according to Michael Rusnak, president and chief executive officer, who credited results to a strong core business and improvements in net income and earnings per share, as well as reduced debt.