Law Offices of Howard G. Smith Announces Investigation of Gentiva Health Services, Inc.

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that it is investigating potential claims against Gentiva Health Services, Inc. ("Gentiva” or the “Company”) (NASDAQ:GTIV) concerning possible violations of federal securities laws or possible breaches of fiduciary duties by the Company or its fiduciaries. The investigation focuses on allegations that certain statements issued by the Company between July 31, 2008 and July 20, 2010 regarding Gentiva’s business and financial results were false and misleading. Gentiva provides home health services and hospice care in the United States, including skilled nursing and therapy services, paraprofessional nursing services and homemaker services, primarily to adult and elderly patients through licensed and Medicare-certified agencies.

Specifically, the investigation relates to allegations that the Company was improperly increasing the number of in-home therapy visits to patients for the purpose of triggering higher reimbursement rates under the Medicare system. On May 13, 2010, The Wall Street Journal reported that Gentiva was the target of an investigation by the United States Senate Finance Committee to determine whether companies that provide Medicare-reimbursed in-home therapy visits "deliberately boosted the number of home therapy visits to trigger higher Medicare reimbursements." The Senate Finance Committee requested information on Gentiva's home therapy visits from 2006 to 2009.

On July 13, 2010, Gentiva disclosed that the Securities and Exchange Commission (SEC) commenced an investigation related to Gentiva's participation in the Medicare Home Health Prospective Payment System ("HH PPS"). According to the Company, "The Commission requested that the company preserve all documents from January 1, 2000 to the present relating to its participation in the HH PPS and was further advised that a subpoena would be forthcoming in the next few days."

Then, on July 20, 2010, after the market closed, Gentiva issued a press release stating "in light of recent softness in home health episodic volumes and the anticipated seasonality in third quarter volumes as experienced by the Company historically, Gentiva has reduced its full-year revenue guidance to a range of $1.20 billion to $1.23 billion from its prior guidance of between $1.23 billion to $1.26 billion."

As a result of this news, the price of Gentiva stock dropped $1.64 per share, or 8 percent, to close at $19.96 per share on July 21, 2010.

If you purchased Gentiva stock prior to July 2008 through July 20, 2010, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at [phone], Toll Free at [phone], or by email to [e-mail], or visit our website at http://www.howardsmithlaw.com.