Alliances

Option Care Sub Partners with BCBS Florida: Bannockburn, Ill.-based Option Care, through its Option-Med regional specialty pharmacy division, has reached an agreement with Blue Cross and Blue Shield of Florida's Health Options to provide their members with injectable drugs. As part of the agreement, patients can receive their drug therapy either in a physician's office or in their homes.

Praxair, Litton Life Support to Develop New Oxygen-Generation System: Danbury, Conn.-based Praxair, working jointly with Litton Life Support, is developing and planning to market a new oxygen-generation system that uses proprietary ceramic-membrane technology and electricity to separate oxygen from air, creating small volumes of oxygen. According to officials, the collaboration could lead to commercialization by 2003.

Financials

Continental Healthcare: Glendale, Calif.-based Continental Healthcare reported a jump in net income of 63 percent for the second quarter ended June 30. The company posted net income of $279,443, or 3 cents a share, compared with $171,105, or 2 cents a share, for the same quarter the previous year.

Option Care: Bannockburn, Ill.-based Option Care announced that for the quarter ended June 30, 2001, the company achieved revenue of nearly $50 million and earnings of $.18 cents per diluted share.

For the quarter ended June 30, revenue increased 51 percent to $49.9 million compared to the same quarter ended June 30, 2000. Net income grew 36 percent to $2.3 million, or $0.18 cents per diluted share.

Transworld Healthcare: New York-based Transworld Healthcare reported net income for the third quarter of 2001 ended June 30 of $40,000, or no gain per share, versus a net loss of $7.5 million, or 43 cents per share, for the same quarter last year.

AccuHealth: AccuHealth of Yonkers, N.Y., once one of the leading providers of home health care in New York, New Jersey and Connecticut, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.

Company officials said only that “the company made this decision in light of its desire to conduct an orderly liquidation of its assets and liabilities.” Last year, AccuHealth sold off its durable medical equipment and institutional pharmacy businesses. By the end of the year, the company's revenue fell 60 percent to $10.8 million and its net loss rose 40 percent to $4.4 million.

Gentiva: Melville, N.Y.-based Gentiva Health Services posted net income of $2.3 million, or 10 cents per share, for the second quarter ended June 30, compared to $2.1 million, or 10 cents a share, for the same quarter last year.

People & Places

Wasson to Succeed Halaska at WHI: Walgreen, Deerfield, Ill., has named Gregory Wasson executive vice president of Walgreens Health Initiatives, which includes Walgreens Advance Care, a home care medical services provider. Previously a vice president of store operations for Walgreens, Wasson will succeed Robert Halaska, current president of Walgreens Health Initiatives, when Halaska retires next year.

Fitzgerald Retires from VGM: Tom Fitzgerald, president of Waterloo, Iowa-based The VGM Group, retired Aug. 31. Fitzgerald was one of the first people hired by Van G. Miller when he founded the company 15 years ago.

The Med Group Adds New Members: Lubbock, Texas-based The Med Group has named Home Medical Supply of Provo, Utah, Adaptive Equipment Company of Englewood, Colo., and United Seating and Mobility of Florissant, Mo., as the newest members of its purchasing network.

Knight Leads Mid-South Region Sales for Progressive Medical:Westerville, Ohio-based Progressive Medical has named Catharine Knight its regional account manager for the mid-south region of the United States. Knight is responsible for accounts in Texas, Kansas, Arkansas, Oklahoma and Louisiana.

Mergers & Acquisitions

e-Medsoft.com Signs Intent to Acquire Private Home Care Company: Application service provider e-Medsoft.com, Jacksonville, Fla., signed a letter of intent to acquire Palatine, Ill.-based Addus Healthcare, a privately held home care company, for $57.5 million in cash and $5 million worth of common stock in e-Medsoft.com's parent company, Med Diversified.

Home Care Supply Buys Medi-Rents: Beaumont, Tex.-based Home Care Supply has acquired Medi-Rents of Boston, Mass., for an undisclosed price.

Medi-Rents is a 24-year-old home medical equipment company with annual sales of more than $20 million. In addition to Boston, it has locations in Worcester, Mass., Portland, Maine, and Warwick, R.I.

HCS is a diversified HME company. The acquisition boosts HCS revenue to $150 million annually and its locations to a total of 52 in 12 states.

Praxair Acquires Canadian Respiratory, DME Company: Danbury, Conn.-based Praxair's Praxair Canada subsidiary has acquired Ottawa, Ontario, Canada-based Respircare, a division of Messer Griesheim Industries Canada and a subsidiary of Messer Griesheim in Germany.

The acquisition of Respircare, which provides home respiratory services and durable medical equipment through 14 locations in Ontario, is in line with Praxair's goal of expanding its home care business in North America, officials said. Terms of the transaction were not disclosed.

Drkoop.com Enters Home Health With Acquisition: Santa Monica, Calif.-based Drkoop.com is getting into the home infusion business, acquiring Detroit-based Ivonyx, a home infusion service provider, for $2 million in cash and 5 million shares of drkoop.com common stock. Drkoop.com recently secured an additional $4.33 million in new financing as the company plans to enter the home health industry.

Air Products Acquires German Home Care Division: Lehigh Valley, Pa.-based Air Products is expanding its home care presence in Europe by acquiring the home care division of Germany-based Messer Griesheim. Terms of the deal were not disclosed. The acquisition is estimated to bring Air Products' annual home care revenues to $20 million.

Noteworthy

PSA Relisted on Nasdaq: Norcross, Ga.-based Pediatric Services of America has been approved for re-listing on the Nasdaq National Market. The company had been trading on the Over-the-Counter Bulletin Board. Its ticker symbol, PSAI, will remain the same.

Coram Opts for ACHC Accreditation: Financially embattled Coram Healthcare, Denver, has entered into a new accrediting relationship with the Accreditation Commission for Health Care. Coram cited ACHC's recent efforts to define standards for delivery of home infusion therapies as a driving force behind the home infusion company's decision to use ACHC.

People & Places

Gentiva Names New Corporate Officers: The board of directors for Melville, N.Y.-based Gentiva Health Services has named John Potapchuk, the company's vice president of finance and corporate controller, and Chris Anderson, the company's vice president of audit services and quality assurance, corporate officers of the company.

Drew Shoe Selects New VP of Sales: Lancaster, Ohio-based Drew Shoe has named Rick Elliot as vice president of sales for the company's expanding footwear business. Elliot will oversee the manufacturer's North American sales force and other specialized markets. He previously served as vice president of sales, national accounts, for Blairsville, Ga.-based Owenby Co.

New Respiratory Provider Opens in New England: Respiratory Solutions recently opened in multiple locations in Rhode Island and Massachusetts to service adult and pediatric patients with various pulmonary conditions.

The company received accreditation from the Joint Commission on Accreditation of Healthcare Organizations on June 15. Joseph Zangrilli RRT, heads the clinical team, serving as vice president of clinical operations.

Noteworthy

FBI Agents Investigate Polymedica Subsidiaries: Federal Bureau of Investigation agents served search warrants on two of Woburn, Mass.-based Polymedica's Port St. Lucie, Fla., subsidiaries — Liberty Medical Supply and Liberty Home Pharmacy — and served a grand jury subpoena on PolyMedica Corp.

According to PolyMedica, FBI agents in late August served the search warrants and “copied extensive records for the company.” The two subsidiaries remain open. However, trading of PolyMedica's stock was halted in lieu of the FBI search and subpoena. The company claims it has no knowledge as to the extent of the FBI's investigation, but said it is fully cooperating with the investigation.