News Release: Extendicare Announces Exit from B.C. Market in 2020
Extendicare Announces Exit from B.C. Market in 2020
| Source: Extendicare Inc
MARKHAM, Ontario, March 13, 2019 (GLOBE NEWSWIRE) — Extendicare Inc. (“Extendicare” or the “Company”) (TSX: EXE) announced today that it has received notice from Fraser Health and Vancouver Coastal Health, both regional health authorities in British Columbia (the “Health Authorities”), that the Health Authorities will be bringing their home support services in-house, and as a result will not be renewing contracts with private sector home support agencies, including ParaMed Inc. (ParaMed), the Company’s home health care provider. As such, ParaMed will be exiting the B.C. market when its contracts with the Health Authorities expire in March 2020.
ParaMed will work closely with the Health Authorities in an effort to make the transition as smooth as possible for everyone involved. The Health Authorities have indicated that they are committed to continuity of care for clients and continuity of employment for home support staff throughout the transition.
For the 2018 year, ParaMed’s B.C. operations provided 1.2 million hours of service, contributing approximately 11% of ParaMed’s home care volumes and revenue, and less than 1% of its net operating income. Labour adjustment provisions in our collective agreements will be utilized and the transition is expected to occur at the expiry of our current contract such that restructuring costs are currently anticipated to be minimal.
A leading provider of care and services for seniors across Canada, Extendicare is committed to delivering quality care throughout the health continuum to meet the needs of a growing seniors population, through its network of 120 senior care and retirement living centres (67 owned/53 managed) and home health care operations, under the Extendicare, Esprit Lifestyle and ParaMed brands. Our qualified and highly trained workforce of approximately 23,000 individuals is dedicated to helping people live better through a commitment to quality service and a passion for what we do.
Information provided by Extendicare from time to time, including this release, contains or may contain forward-looking statements concerning anticipated financial events, results, circumstances, economic performance or expectations with respect to Extendicare and its subsidiaries, including, without limitation, statements regarding its business operations, business strategy, and financial condition. Forward-looking statements can be identified because they generally contain the words “expect”, “intend”, “anticipate”, “believe”, “estimate”, “project”, “plan” or “objective” or other similar expressions or the negative thereof. Forward-looking statements reflect management’s beliefs and assumptions and are based on information currently available, and Extendicare assumes no obligation to update or revise any forward-looking statement, except as required by applicable securities laws. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Extendicare to differ materially from those expressed or implied in the statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on Extendicare’s forward-looking statements. Further information can be found in the disclosure documents filed by Extendicare with the securities regulatory authorities, available at www.sedar.com and on Extendicare’s website at www.extendicare.com.
For further information, contact:
Elaine E. Everson
Vice President and Chief Financial Officer
Phone: (905) 470-4000; Fax: (905) 470-4003
Visit Extendicare’s Website at www.extendicare.com