THE HOLIDAY SEASON is built on traditions. For some, it's fruitcake and eggnog, while for others it's simply gathering to celebrate with friends and family (and the chance to be released from the salt mines and out of the office for a few days).

And, of course, in keeping with tradition, the holiday season means HomeCare's annual rankings of the top companies in our industry.

As in years past, there is always a handful of companies that surprise you — companies that performed exceptionally well or have made a big move in a market segment during the course of the year. We again publish that handful in our December issue, but two companies in particular caught my attention.

One is Praxair, the industrial gases giant who has decided to enter the provider side of the home medical equipment and respiratory markets. It's encouraging that one of the largest industrial gas suppliers is deciding to sell its product “direct to consumer,” but even more interesting is the list of HME/respiratory companies Praxair has purchased to achieve a presence in this market.

In 2001, Praxair bought two private HME companies — Louisville, Ky.-based Healthcare Partners and Cuyahoga Falls, Ohio-based Falls Medical Service — ranked No. 9 and No. 17, respectively, in our private company listing last year. The company also bought Salt Lake City-based Interwest Home Medical, a public company ranked No. 7 on last year's public company list.

Although some in the industry scoffed at the idea (I'm not sure what's scoffable about a company with 2000 revenues of more than $5 billion) the move already is paying off for Praxair by giving boosting its bottom line in the third quarter of 2001 after relatively flat earnings for the year. Praxair definitely is a notable entrant to the respiratory market that other providers in Praxair's regions should keep an eye on.

The second company that caught my attention is Option Care. To say the company has made “a few” acquisitions this year is like saying there have been “a few” cuts to oxygen reimbursement during the past several years. Since January 2001, Option Care has acquired seven companies and entered six new regions. Not bad for a company primarily dedicated to home infusion, a market where many of the major players either have scaled back operations or filed for Chapter 11.

Option Care's philosophy of being a regional player mirrors that of Praxair's. And the result of Option Care's direction is reflected in its earnings. During the third quarter of 2001, the company's net income increased 24 percent over its 2000 year-end results.

However, Praxair and Option Care are only two of several companies on this year's list that have performed differently and better than most of their competition. And while I seriously doubt HomeCare's Top Companies listing will replace even the most ordinary of holiday traditions, we hope you enjoy it just the same.