GENTIVA HEALTH SERVICES INC. Melville, N.Y. Health Firm's Plan: Slim And Slimmer Another Unit Gets Sold It continues a strategy to shed fat and focus on the core business.(THE NEW AMERICA)

Byline: KIRK SHINKLE

Has Gentiva Health Services Inc. finally finished slimming down?

The home health services firm has been selling off businesses for years. Last month, it announced it would shed its specialty pharmaceuticals business.

Gentiva will sell the unit to Accredo Health Inc. for $415 million in cash and stock. Regulators and shareholders are expected to approve the deal in the spring.

The deal caught some observers off guard. Analysts figured Gentiva might spin the unit off into a separate public company to wring more value from it.

"We were a little surprised (at the sale)," said Raymond James analyst John Ransom. "That being said, their specialty pharmacy business had issues relative to competitors."

Gentiva's pharmacy business wasn't growing nearly as fast as its rivals. The unit's product mix was also lacking, with lower-than-average profit margins.