Mergers & Acquisitions:

Alpine Medical Acquisition Increases Praxair's Home Care Presence: To achieve a stronger presence in both hospitals and home care, Praxair Healthcare Services of Danbury, Conn. has acquired Bensalem, Pa.-based Alpine Medical, a home respiratory and home care services provider, according to a Praxair press release. “With Alpine Medical … our strategic objective of becoming a complete provider of respiratory services from the hospital to the home will be realized. Last year, we made several successful home care acquisitions, and we expect to see the same positive result from the purchase of Alpine Medical,” said Sally Savoia, president of Praxair Healthcare Services. In addition to it's headquarters in Pennsylvania, Alpine has locations in Delaware and New Jersey. For 2001, Alpine posted a revenue of $25 million.

Option Care Acquires R.I. Infusion Pharmacy: Expanding its core infusion business into New England, Option Care of Bannockburn, Ill., has acquired Nashville, Tenn.-based American HomePatient's Providence, R.I.-based infusion pharmacy, which serves both Rhode Island and Massachusetts. “This acquisition gives Option Care a footprint in the major New England markets of Boston and Providence,” according to Raj Rai, the company's chairman and chief executive officer.

DASCO Acquires CareLife Home Medical: Expanding its Ohio services, DASCO Home Medical of Columbus, Ohio has acquired CareLife Home Medical Services. CareLife has two locations: one in Lima, Ohio, and the other in Plain City, Ohio.

Financials:

NHHC Posts Record Second Quarter Revenue, Income: National Home Health Corp. of Scarsdale, N.Y. announced record revenue and earnings for the second quarter ended Jan. 31. Revenue for the quarter was $20.47 million, an 11 percent increase from the $18.48 million mark posted for the same period a year ago. Net income for the quarter was $1.42 million, or 26 cents per share, compared to a net income $959,000, or 18 cents per share, posted for the same quarter a year ago. “We are very pleased with these operating results,” said Steven Fialkow, president and chief executive officer of NHHC. “Our record revenue for the quarter is the company's ninth consecutive quarter of revenue growth.”

Fraud & Abuse:

Texas Judge Sentences Defunct Mobility Company: On Feb. 28, U.S. Attorney Richard Stephens of Houston announced the sentencing of a Dallas-area mobility company, the company's owner and one of the company's employees to fines and prison. Now defunct, Scooters-to-Go of Colleyville, Texas, along with its owner, William Brooks, and an employee, Grover Poarch, pled guilty to billing Medicare for unnecessary equipment and for equipment that was more expensive than what the defendants actually provided. The judge ordered Brooks to pay $300,000 in restitution and to spend 18 months in prison. Poarch must serve five years probation and pay $85,000 in restitution. The company must pay $10,000 in restitution.

Noteworthy:

Rotech Emerges from Bankruptcy: Rotech Healthcare of Orlando, Fla., emerged from bankruptcy as an “independent, stand-alone entity” — no longer affiliated with its former parent company, Integrated Health Services of Sparks, Md., according to a March 26 Rotech press release. After securing $275 million from a syndicate of financial institutions including Goldman Sachs Credit Partners and UBS Warburg, and issuing $300 million of Senior Subordinated Notes, Rotech was able to pay off its creditors and prepare for normal business operations, the company said.

Canadian HME Franchise Opens 50th Location: MEDIchair of Calgary, Alberta, in February dedicated its 50th location, ensuring the company's position as North America's largest home medical equipment franchise operation, according to a company press release. The company's retail stores now span Canada, the release said.

Sun Healthcare Emerges from Bankruptcy: The United States Bankruptcy Court for the District of Delaware approved Sun Healthcare's reorganization plan on Feb. 28, allowing the company — and the company's home health subsidiary, SunPlus — to emerge from bankruptcy.

As part of the reorganization plan, unsecured creditors with claims of $50,000 or less will receive cash payments equal to 7 percent of their allowed claims. Unsecured creditors with claims of more than $50,000 will share between 8 percent and 10 percent of Sun's new common stock. Senior lenders will receive between 88 percent and 90 percent of the new common stock and a cash payment of $6,651,557. The plan also extinguishes Sun's current common stock, and states that existing holders of Sun's common stock will receive no distribution under the plan.

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