Odyssey HealthCare, Inc., one of the largest providers of hospice care in the United States, today announced it will exit the Tulsa hospice market and is reviewing its options with respect to the potential sale or closure of the program.
“Our Tulsa program has been unable to achieve a balanced patient mix due to certain competitive issues in the Tulsa market and therefore has been severely impacted by the Medicare cap,” said Robert A. Lefton, President and Chief Executive Officer of Odyssey. “There is clearly an unmet need for certain types of patients in the area, but due to the impact of the Medicare hospice cap, it is not financially feasible to continue to provide those services absent a change in the cap formula.”
The Tulsa program lost approximately $0.8 million in 2006. The Company estimates it will incur a charge of approximately $0.5 million in the first quarter of 2007 related to its decision to discontinue its Tulsa operations.
Based in Dallas, Odyssey has 81 Medicare-certified hospice programs in 30 states.