People & Places

Rai Moves Up at Option Care: Raj Rai has been promoted to chief executive officer of Bannockburn, Ill.-based Option Care. Rai, chief operating officer for the company for two years and president since last year, is also now a member of the board of directors. Former chief executive officer John Kapoor will remain chairman of the board.

Hytech Homecare Names New Executives: Mentor, Ohio-based Hytech Homecare, a division of Hytree Pharmacy, has promoted several employees. James Stegmaier, formerly director of clinical services, is the new vice president of clinical services. Ron McKay is the new vice president of sales and business development. Previously the director of home care sales, Georgette Frate-Mikus is the new director of clinical services.

Matria Renames Medical Devices Division: Marietta, Ga.-based Matria Healthcare's medical devices division has a new name and a new leader. Formerly Gainor Medical, Facet Technologies will be led by William Taylor as president.

Mergers & Acquisitions

Option Care Enters Chicago Market Through Acquisition: Option Care, Bannockburn, Ill., in its sixth acquisition of the year, has acquired the infusion business of Children Memorial Healthcare Resources in Chicago. This is in addition to its existing pharmacies in Columbia and St. Louis, Mo., and franchises in Kansas City and Cape Girardeau, Mo. Terms of the deal were not disclosed, but the acquisition could, according to Option Care chief executive officer Raj Rai, add $6 million in annual revenue.

Drkoop.com Acquires Infusion Company: Drkoop.com of Santa Monica, Calif. will acquire Ivonyx, a home infusion company based in Livonia, Mich., for $3 million in cash and another $4.1 million in common stock.

Officials hope the deal will pump $30 million annually into the company's coffers.

The deal also moves Ivonyx chief executive office Peter Molloy into the president's office at drkoop.com, while current president Ed Cespedes becomes vice chairman of the company's board of directors.

Praxair Acquires Interwest: Danbury, Conn.-based Praxair's acquisition of Interwest Home Medical received the green light from Interwest shareholders. Interwest's outstanding shares were purchased for $8.92 per share. Interwest Home Medical reported net income for the second quarter of fiscal 2001 ended March 31 of $775,000, or 18 cents a share, compared with $760,000, or 19 cents a share, for the same quarter the previous year.

Financials

Apria Healthcare: Net income for Apria Healthcare Group, Costa Mesa, Calif., for the first quarter of 2001 ended March 31 jumped 33 percent, officials said. Apria recorded net income of $17.1 million, or 31 cents a share, compared with $12.8 million, or 24 cents a share, a year ago. The results beat analysts' estimates of 29 cents a share.

Matria Healthcare: Marietta, Ga.-based Matria Healthcare recorded net earnings for the first quarter of 2001 ended March 31 of $1.6 million, or 18 cents a share, compared with $1.3 million, or 14 cents a share, for the same quarter the previous year.

Gentiva: Gentiva Health Services, Melville, N.Y., recorded net income of $6.1 million, or 26 cents a share, for the first quarter of 2001 ended March 31. That compares with a loss of $1.9 million, or 9 cents a share, for the same quarter in 2000.

Pediatric Services of America Inc.: Norcross, Ga.-based Pediatric Services of America Inc. posted net income of $3.4 million, or 49 cents a share, for the second quarter of fiscal 2001 ended March 31, compared with a net loss of $2.2 million, or 34 cents a share, for the same quarter of 2000.

Lincare Holdings: Lincare Holdings, Clearwater, Fla., reported net income for the first quarter ended March 31 of $31.5 million, or 60 cents a share, compared with $27.1 million, or 50 cents a share, for the same period the year before. During the quarter, the company acquired two companies, including one that participated in the competitive bidding demonstration project in San Antonio, Texas. The company also added 13 operating centers in the first quarter, bringing its total number of locations to 523.

Option Care: Option Care, Bannockburn, Ill., recorded a 32 percent jump in net income for the first quarter of 2001 ended March 31, posting $2.1 million, or 17 cents a share. That compares with net income of $1.6 million, or 13 cents a share, the same quarter the year before.

Transworld Healthcare: Transworld Healthcare of Hawthorne, N.Y. posted a net loss of $448,000, or 3 cents a share, for the second quarter of 2001 ended March 31, compared to a net loss of $485,000, or 3 cents a share, for the same quarter a year ago.

American HomePatient: Brentwood, Tenn.-based American HomePatient reported a loss of $6.6 million, or 40 cents a share, for the first quarter of 2001 ended March 31. This compares with a loss of $8.6 million, or 55 cents a share, the same quarter the year before. The company, which had been in default with its credit facility after breaching several covenants and failing to make its March 15 principal payment, has reached an agreement with its lender to amend the current facility, extend its term to Dec. 31, 2002, and amend the principal amortization, officials said.