A Medical Device Daily

Critical Homecare Solutions (CHS; Conshohocken, Pennsylvania) has filed with the Securities and Exchange Commission (SEC) for an initial public offering of up to $125 million.

The company is a provider of home infusion therapy services for those suffering from acute or chronic conditions. It delivers more than 400,000 infusion pharmaceuticals, biopharmaceuticals, nutrients and related services and equipment each year to patients in the home through 33 infusion locations in 14 states, primarily in the eastern U.S. It provides more than 350,000 nursing and therapy visits and 500,000 private duty nursing hours each year to patients in the home through 32 home nursing locations in three states.

In the year ended 2006 and the six months ended June 30, 2007, the company said it generated net revenue of $176.1 million and $92.8 million, respectively.

The company said it intends to use the proceeds from the offering to repay a portion of the outstanding indebtedness under its first lien facility and its second lien term loan and for working capital and general corporate purposes, which may include future acquisitions of additional home healthcare businesses.

The company said it intends to apply to have its common stock listed on the NASDAQ Global Market under the symbol CHCS.

HealthSouth (Birmingham, Alabama) reported that is has received a $440 million tax recovery from the Internal Revenue Service for over-statements of taxable income attributable to financial fraud perpetrated by members of prior management.

This recovery includes a $296 million tax refund for the years 1996 through 1999, and $144 million of associated interest income.

"We are very pleased to have completed this project, which is another major step in the reorganization of HealthSouth," said Jay Grinney, HealthSouth president/CEO. "We plan to use the proceeds to reduce our debt as part of our previously announced deleveraging plan. This debt reduction will improve our balance sheet and enhance our efforts to position HealthSouth as the nation's preeminent provider of inpatient rehabilitative services."

Earlier this year, HealthSouth paid down more than $1 billion in debt from proceeds related to the divestiture of its three, non-core ambulatory divisions and related assets. In addition, the company said it made its final payment to the SEC yesterday as a result of a $100 million settlement in 2005 and intends to make its last payment to the Civil Division of the U.S. Department of Justice (DoJ), the Office of Inspector General (OIG) of the Department of Health and Human Services and the Centers for Medicare & Medicaid Services in 4Q07 as a result of a $325 million global settlement in 2004.

The company said these payments will fulfill its last settlement obligations to the SEC, DoJ, OIG, and CMS related to the fraud perpetrated by members of its prior management.

HealthSouth is a provider of inpatient rehabilitation services. Operating in 27 states across the country and in Puerto Rico, the company serves more than 250,000 patients annually through its network of inpatient rehabilitation hospitals, long-term acute care hospitals, outpatient rehabilitation satellites, and home health agencies.