SUNRISE, FLA.--NationsHealth announced last week it has sold its respiratory division to Clearwater, Fla.-based Lincare Holdings for $16 million in cash, and said it will transfer its respiratory patients and related inventory to Lincare.

NationsHealth said it will use proceeds from the sale to support the launch of a national prescription drug plan under Medicare Part D that it is working on with Cigna. The company said the sale also will enable "immediate" redirection of resources, including 100 employees from the respiratory division, to the Part D launch.

NationsHealth, which offers discount prescription cards accepted at more than 50,000 pharmacies, currently has more than three million cardholders. The company also provides home delivery of diabetes and ostomy products to more than 114,000 patients, and provides diabetes supplies for Medicare beneficiaries at more than 1,000 Kmart pharmacies.

The sale agreement calls for NationsHealth not to get involved in sales and marketing of respiratory equipment and medication for five years, and for Lincare to refrain from marketing or advertising diabetes or ostomy services to certain customers for three years, the Tampa Bay Business Journal reported.